The portfolio of outstanding exposures discussed in Note 3, Outstanding Exposure, and Note 4, Expected Loss to be Paid (Recovered), includes contracts that are accounted for as insurance contracts, derivatives and consolidated FG VIEs. Amounts presented in this note relate only to contracts accounted for as insurance, unless otherwise specified. See Note 6, Contracts Accounted for as Credit Derivatives, for amounts related to CDS and Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles, for amounts related to consolidated FG VIEs.


	First Quarter
		2025		2024
		(in millions)
Financial guaranty insurance:
Scheduled net earned premiums		$	76	$	71
Accelerations from refundings and terminations		5		39
Accretion of discount on net premiums receivable		9		7
Financial guaranty insurance net earned premiums		90		117
Specialty net earned premiums		1		2
Net earned premiums		$	91	$	119


	First Quarter
	2025		2024
	(in millions)
Beginning of year	$	1,551	$	1,468
Less: Specialty insurance premium receivable	1		1
Financial guaranty insurance premiums receivable	1,550		1,467
New business and supplemental premiums, net of commissions	39		63
Gross premiums received, net of commissions	(58)		(75)
Adjustments:
Changes in the expected term and debt service assumptions	(5)		(3)
Accretion of discount, net of commissions on assumed business	8		7
Foreign exchange gain (loss) on remeasurement	33		(10)
Financial guaranty insurance premium receivable	1,567		1,449
Specialty insurance premium receivable	1		1
March 31,	$	1,568	$	1,450

Approximately 69% of gross premiums receivable, net of commissions payable, as of both March 31, 2025 and December 31, 2024, are denominated in currencies other than the U.S. dollar, primarily the pound sterling and euro.

The timing and cumulative amount of actual collections and net earned premiums may differ from those of expected collections and of expected net earned premiums in the table below due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the consumer price indices, changes in expected lives and new business.


	As of March 31, 2025
			Future Net Premiums to be Earned (2)
	Future Premiums to be Collected (1)		Earnings of Deferred Premium Revenue		Accretion of Discount		Total
	(in millions)
2025 (April 1 - June 30)	$	71	$	76	$	9	$	85
2025 (July 1 - September 30)	46		75		9		84
2025 (October 1 - December 31)	42		73		9		82
Subtotal 2025	159		224		27		251
2026	130		278		34		312
2027	123		261		32		293
2028	117		248		30		278
2029	106		231		28		259
2030-2034	417		922		118		1,040
2035-2039	319		601		86		687
2040-2044	244		393		56		449
2045-2049	185		261		32		293
2050-2054	115		137		15		152
After 2054	123		109		12		121
Total	$	2,038	$	3,665	$	470	$	4,135


	As of
	March 31, 2025		December 31, 2024
	(dollars in millions)
Premiums receivable, net of commissions payable	$	1,567	$	1,550
Deferred premium revenue	1,870		1,901
Weighted-average risk-free rate used to discount premiums	2.5%		2.5%
Weighted-average period of premiums receivable (in years)	12.2		12.3

Loss reserves and salvage and subrogation recoverable are discounted at risk-free rates for financial guaranty insurance obligations that ranged from 1.99% to 5.41% with a weighted average of 4.19% as of March 31, 2025 and 1.98% to 5.22% with a weighted average of 4.38% as of December 31, 2024.

The following table provides information on net reserve (salvage), which includes loss and LAE reserves and salvage and subrogation recoverable, both net of reinsurance.


	As of
Sector	March 31, 2025		December 31, 2024
	(in millions)
Public finance:
U.S. public finance	$	11	$	(14)
Non-U.S. public finance	11		5
Public finance	22		(9)
Structured finance:
U.S. RMBS	(146)		(151)
Other structured finance	30		33
Structured finance	(116)		(118)
Total	$	(94)	$	(127)

The table below provides a reconciliation of net expected loss to be paid (recovered) for financial guaranty insurance contracts to net expected loss to be expensed. Expected loss to be paid (recovered) for financial guaranty insurance contracts differs from expected loss to be expensed due to: (i) the contra-paid, which represents the claim payments made and recoveries received that have not yet been recognized in the statements of operations; (ii) salvage and subrogation recoverable for transactions that are in a net recovery position where the Company has not yet received recoveries on claims previously paid (and therefore recognized in income but not yet received); and (iii) loss reserves that have already been established (and therefore expensed but not yet paid).


	As of March 31, 2025
	(in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance	$	132
Contra-paid, net	23
Salvage and subrogation recoverable, net	387
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance	(292)
Net expected loss to be expensed (present value)	$	250

The following table provides a schedule of the expected timing of financial guaranty net expected losses to be expensed. The amount and timing of actual loss and LAE may differ from the estimates shown below due to factors such as accelerations, commutations, changes in expected lives and updates to loss estimates. This table excludes amounts related to FG VIEs, which are eliminated in consolidation.


	As of March 31, 2025
	(in millions)
2025 (April 1 - June 30)	$	4
2025 (July 1 - September 30)	3
2025 (October 1 - December 31)	3
Subtotal 2025	10
2026	13
2027	17
2028	18
2029	18
2030-2034	79
2035-2039	39
2040-2044	18
2045-2049	21
2050-2054	15
After 2054	2
Net expected loss to be expensed (present value)	250
Future expected accretion	6
Total expected future loss and LAE	$	256


	First Quarter
Sector		2025		2024
		(in millions)
Public finance:
U.S. public finance		$	36	$	(2)
Non-U.S. public finance		6		—
Public finance		42		(2)
Structured finance:
U.S. RMBS		—		2
Other structured finance		(2)		(1)
Structured finance		(2)		1
Loss and LAE (benefit)		$	40	$	(1)


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	91		13		96		200		200
Remaining weighted-average period (in years)	18.6		12.0		5.9		16.5		16.6

Outstanding exposure:
Par	$	7,058	$	1,095	$	1,372	$	9,525	$	9,511
Interest	6,443		769		400		7,612		7,610
Total (2)	$	13,501	$	1,864	$	1,772	$	17,137	$	17,121

Expected cash outflows (inflows)	$	4,140	$	425	$	1,312	$	5,877	$	5,868
Potential recoveries (3)	(4,306)		(304)		(1,129)		(5,739)		(5,730)
Subtotal	(166)		121		183		138		138
Discount	11		—		(17)		(6)		(6)
Expected losses to be paid (recovered)	$	(155)	$	121	$	166	$	132	$	132

Deferred premium revenue	$	266	$	57	$	113	$	436	$	436
Reserves (salvage)	$	(241)	$	68	$	77	$	(96)	$	(95)


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	98		12		97		207		207
Remaining weighted-average period (in years)	18.6		8.8		6.1		16.6		16.6

Outstanding exposure:
Par	$	8,080	$	702	$	1,382	$	10,164	$	10,150
Interest	7,546		371		421		8,338		8,335
Total (2)	$	15,626	$	1,073	$	1,803	$	18,502	$	18,485

Expected cash outflows (inflows)	$	4,016	$	342	$	1,307	$	5,665	$	5,656
Potential recoveries (3)	(4,201)		(293)		(1,132)		(5,626)		(5,616)
Subtotal	(185)		49		175		39		40
Discount	43		29		(23)		49		49
Expected losses to be paid (recovered)	$	(142)	$	78	$	152	$	88	$	89

Deferred premium revenue	$	333	$	49	$	116	$	498	$	498
Reserves (salvage)	$	(226)	$	35	$	62	$	(129)	$	(128)

(3)Represents expected inflows from future payments by obligors pursuant to restructuring agreements, settlements, excess spread on any underlying collateral and other estimated recoveries. Potential recoveries also include recoveries on certain investment grade credits, related mainly to exposures that were previously BIG and for which claims have been paid in the past.