Financial Guarantees in Force (Notes)

12 Months Ended

Dec. 31, 2023

Guarantees [Abstract]

Financial Guarantees in Force

6.    FINANCIAL GUARANTEES IN FORCE

Legacy financial guarantees outstanding includes the exposures of policies that insure variable interest entities (“VIEs”) consolidated in accordance with ASC Topic 810, Consolidation. Financial guarantees outstanding include the exposure of policies that insure capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bonds. Financial guarantees outstanding exclude the exposures of policies that insure bonds which have been refunded, pre-refunded or synthetically commuted. The gross par amount of financial guarantees outstanding was $26,005 and $27,551 at December 31, 2023 and 2022, respectively. The par amount of financial guarantees outstanding, net of reinsurance, was $19,541 and $22,613 at December 31, 2023 and 2022, respectively. As of December 31, 2023, the aggregate amount of financial guarantee insured par ceded to reinsurers under

reinsurance agreements was $6,464 with the largest reinsurer accounting for $2,766 or 10.6% of gross par outstanding at December 31, 2023.

As of December 31, 2023 and 2022, the legacy financial guarantee portfolio consisted of the types of guaranteed bonds as shown in the following table:

Net Par Outstanding December 31, (1)	2023		2022
Public Finance:
Housing revenue (2)	$	3,443	$	5,491
Lease and tax-backed revenue	1,542		1,979
General obligation	1,051		1,301
Other	1,526		1,776
Total Public Finance	7,562		10,547
Structured Finance:
Mortgage-backed and home equity	1,712		1,930
Investor-owned utilities	1,077		1,103
Other	526		579
Total Structured Finance	3,315		3,612
International Finance:
Sovereign/sub-sovereign	4,221		4,077
Investor-owned and public utilities	2,855		2,583
Asset-backed and other	862		1,083
Transportation	726		711
Total International Finance	8,664		8,454
Total	$	19,541	$	22,613

(1)Net Par Outstanding includes capital appreciation bonds, which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond.

(2)Includes $3,371 and $5,400 of Military Housing net par at December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, the financial guaranteed portfolio by location of risk was as outlined in the table below:

Net Par Outstanding December 31,	2023		2022
United States	$	10,877	$	14,159
United Kingdom	7,502		7,223
Italy	576		644
Austria	307		310
Australia	266		259
France	12		14
Other international	1		4
Total	$	19,541	$	22,613

Gross financial guarantees in force (principal and interest) were $41,733 and $44,734 at December 31, 2023 and 2022, respectively. Net financial guarantees in force (after giving effect to reinsurance) were $29,121 and $34,975 as of December 31, 2023 and 2022, respectively.

In the United States, no state accounted for more than 6% of the total net par outstanding at December 31, 2023. The highest single insured risk represented 4.6% of the total net par amount guaranteed.