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Loss Reserves (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Sep. 30, 2012
Jun. 30, 2009
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Loss Reserve [Roll Forward]            
Reserve at beginning of period     $ 4,557,512,000 $ 5,884,171,000 $ 6,704,990,000  
Less reinsurance recoverable     154,607,000 275,290,000 332,227,000  
Net reserve at beginning of year     4,402,905,000 [1],[2] 5,608,881,000 [1],[2] 6,372,763,000 [1]  
Adjustment to reserves     0 [3] 0 [3] (92,000,000) [3]  
Adjusted beginning reserves     4,402,905,000 5,608,881,000 6,280,763,000  
Losses and LAE incurred in respect of default notices received in [Abstract]            
Current year     1,494,133,000 1,814,035,000 1,874,449,000  
Prior years     573,120,000 [4] (99,328,000) [4] (266,908,000) [4]  
Subtotal     2,067,253,000 [5] 1,714,707,000 [5] 1,607,541,000 [5]  
Losses and LAE paid in respect of default notices received in [Abstract]            
Current year     134,509,000 121,383,000 60,897,000  
Prior years     2,389,985,000 [6] 2,838,069,000 [6] 2,256,206,000 [6]  
Reinsurance terminations     (6,331,000) [7] (38,769,000) [7] (37,680,000) [7]  
Subtotal     2,518,163,000 [8] 2,920,683,000 [8] 2,279,423,000 [8]  
Net reserve at end of period     3,951,995,000 [2] 4,402,905,000 [1],[2] 5,608,881,000 [1],[2] 6,372,763,000 [1]
Plus reinsurance recoverables     104,848,000 154,607,000 275,290,000 332,227,000
Reserve at end of period     4,056,843,000 4,557,512,000 5,884,171,000 6,704,990,000
Loss reserve reduction from rescission       700,000,000 1,300,000,000 2,100,000,000
Paid losses mitigated by rescission amount     300,000,000 600,000,000 1,000,000,000  
Payment under the Freddie Mac settlement agreement     100,000,000      
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     573,000,000 (99,000,000) (267,000,000)  
Historical average period for uncured default to develop into paid claim     12 months      
Premium refund liability, expected claim payments     134,000,000 114,000,000    
Primary Default Inventory [Roll Forward]            
Default inventory at beginning of period     175,639 214,724 250,440  
New Notices     133,232 169,305 205,069  
Cures     (120,248) (149,643) (183,017)  
Paids (including those charged to a deductible or captive)     (45,741) (51,138) (43,826)  
Rescissions and denials     (3,037) (7,609) (13,942)  
Default inventory at end of period     139,845 175,639 214,724 250,440
Number of rescindable loans affected by Company's decision to suspend rescissions for Countrywide     2,150      
Total potential claim payments of rescindable loans affected by Company's decision to suspend rescissions for Countrywide     160,000,000      
Number of rescindable loans affected by Company's decision to suspend rescissions for a specific customer     250      
Total potential claim payments of rescindable loans affected by Company's decision to suspend rescissions for a specific customer     17,000,000      
Number of rescindable loans affected by Company's decision to suspend rescissions for all other customers     240      
Total potential claim payments of rescindable loans affected by Company's decision to suspend rescissions for all other customers     16,000,000      
Pool insurance notice inventory [Abstract]            
Pool insurance notice inventory (in number of loans)     8,594 32,971 43,329  
Number of notices removed from pool notice inventory 15,600          
Aging of the Primary Default Inventory [Abstract]            
3 months or less     23,282 31,456 37,640  
3 months or less (in hundredths)     17.00% 18.00% 18.00%  
4 - 11 months     34,688 46,352 58,701  
4 - 11 months (in hundredths)     25.00% 26.00% 27.00%  
12 months or more     81,875 97,831 118,383  
12 months or more (in hundredths)     58.00% 56.00% 55.00%  
Total primary default inventory     139,845 175,639 214,724 250,440
Total primary default inventory (in hundredths)     100.00% 100.00% 100.00%  
Primary claims received inventory included in ending default inventory     11,731 [9] 12,610 [9] 20,898 [9]  
Primary claims received inventory included in ending default inventory (in hundredths)     8.00% [9] 7.00% [9] 10.00% [9]  
Number of payments delinquent [Abstract]            
3 payments or less     34,245 42,804 51,003  
3 payments or less (in hundredths)     24.00% 24.00% 24.00%  
4 - 11 payments     34,458 47,864 65,797  
4 - 11 payments (in hundredths)     25.00% 27.00% 31.00%  
12 payments or more     71,142 84,971 97,924  
12 payments or more (in hundredths)     51.00% 49.00% 45.00%  
Total primary default inventory     139,845 175,639 214,724 250,440
Total primary default inventory (in hundredths)     100.00% 100.00% 100.00%  
Claims resolved by rescissions [Abstract]            
Mitigation of paid losses by rescission of policies     300,000,000 600,000,000 1,200,000,000 1,200,000,000
Percentage of claims received in a quarter resolved by rescission, lower range limit (in hundredths)     10.00%      
Percentage of claims received in a quarter resolved by rescission, upper range limit (in hundredths)   28.00%        
Estimated Rescission Reduction - Loss Reserve [Roll Forward]            
Estimated rescission reduction - beginning reserve     700,000,000 1,300,000,000 2,100,000,000  
Estimated rescission reduction - losses incurred     (200,000,000) [10] 0 [10] 200,000,000 [10]  
Rescission reduction - paid claims     300,000,000 600,000,000 1,200,000,000  
Amounts that may have been applied to a deductible     0 0 (200,000,000)  
Net rescission reduction - paid claims     300,000,000 600,000,000 1,000,000,000  
Estimated rescission reduction - ending reserve     200,000,000 700,000,000 1,300,000,000 2,100,000,000
Number of settlement are probable     2      
Mitigation of incurred losses by rescission of policies     0 0 200,000,000 2,500,000,000
Premium refund liability, expected future rescissions     18,000,000 58,000,000    
Statute of limitations to bring legal proceedings disputing right to rescind coverage     3 years      
Estimated benefit due to adjustment to loss reserves     100,000,000      
Pool Policy Settlement [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     267,000,000 [11] 0 [11] 0 [11]  
Estimated Probable Rescission Settlements [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     100,000,000 [11] 0 [11] 0 [11]  
Increase (Decrease) in Estimated Claim Rate On primary Defaults [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     260,000,000 200,000,000 (432,000,000)  
Percentage of prior year default inventory resolved (in hundredths)     55.00% 57.00% 55.00%  
Decrease in Estimated Severity, Primary Defaults [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     (70,000,000) (165,000,000) 0  
Change In Estimates Related to Pool Reserves, LAE Reserves and Reinsurance [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves     16,000,000 [12] (134,000,000) [12] 165,000,000 [12]  
Increase (Decrease) Related To LAE and Pool Reserves [Member]
           
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]            
Change in loss reserves       $ (114,000,000) $ 185,000,000  
[1] At December 31, 2011, 2010 and 2009 the estimated reduction in loss reserves related to rescissions approximated $0.7 billion, $1.3 billion and $2.1 billion, respectively.
[2] At December 31, 2012, 2011 and 2010 the estimated reduction in loss reserves related to rescissions approximated $0.2 billion, $0.7 billion and $1.3 billion, respectively.
[3] In periods prior to 2010 an estimate of premium to be refunded in conjunction with claim payments was included in Loss Reserves. In 2010, we separately stated portions of this liability in Other liabilities and Premium deficiency reserve on the consolidated balance sheet.
[4] A negative number for prior year losses incurred indicates a redundancy of prior year loss reserves, and a positive number for prior year losses incurred indicates a deficiency of prior year loss reserves. See table below regarding prior year loss development.
[5] Our estimated rescissions were reduced by approximately $0.2 billion in 2012 due to our probable settlement agreements (See Note 20 – "Litigation and Contingencies"), other rescissions had no significant impact on our losses incurred in 2012. Rescissions mitigated our incurred losses by an estimated $0.2 billion in 2010. Rescissions did not have a significant impact on incurred losses in 2011.
[6] In 2012, includes $0.1 billion payment under the Freddie Mac settlement agreement (See Note 20 – "Litigation and Contingencies").
[7] In a termination, the reinsurance agreement is cancelled, with no future premium ceded and funds for any incurred but unpaid losses transferred to us. The transferred funds result in an increase in our investment portfolio (including cash and cash equivalents) and a decrease in net losses paid (reduction to losses incurred). In addition, there is an offsetting decrease in the reinsurance recoverable (increase in losses incurred), and thus there is no net impact to losses incurred. (See Note 11 – "Reinsurance")
[8] Rescissions mitigated our paid losses by an estimated $0.3 billion, $0.6 billion and $1.0 billion in 2012, 2011 and 2010, respectively, which excludes amounts that may have been applied to a deductible.
[9] Our claims received inventory includes suspended rescissions as discussed in Note 20 – “Litigation and Contingencies”. In connection with the Countrywide proceedings, we have voluntarily suspended rescissions of coverage related to loans that we believe could be included in a potential resolution. As of December 31, 2012, coverage on approximately 2,150 loans, representing total potential claim payments of approximately $160 million, that we had determined was rescindable were affected by our decision to suspend such rescissions. Substantially all of these potential rescissions relate to claims received beginning in the first quarter of 2011 or later. As of December 31, 2012, coverage on approximately 250 loans, representing total potential claim payments of approximately $17 million, were affected by our decision to suspend rescissions for another customer for which we also consider settlement probable. In addition, as of December 31, 2012, approximately 240 rescissions, representing total potential claim payments of approximately $16 million, were affected by our decision to suspend rescissions for customers other than those for which we consider settlement probable, as defined in ASC 450-20.
[10] As discussed in Note 20 – “Litigation and Contingencies” we have made substantial progress in reaching an agreement with Countrywide to settle the dispute we have concerning rescissions. We have determined that a settlement with Countrywide is probable and under this probable settlement agreement, we estimate that our rescission benefit in loss reserves was reduced by approximately $0.2 billion. This adjustment to loss reserves was partially offset by an estimated benefit of approximately $0.1 billion under the terms of the settlement agreements we consider probable, as defined in ASC 450-20. As a result, in the fourth quarter of 2012, we increased our loss reserve estimates by approximately $0.1 billion to reflect potential settlements we consider probable.
[11] See Note 20 - "Litigation and Contingencies" for a discussion of our settlement with Freddie Mac and our probable settlements regarding rescissions.
[12] Includes approximately ($114) million related to LAE reserves in 2011 and approximately $185 million related to pool reserves in 2010.