Note 19 - Quarterly Financial Data

12 Months Ended

Dec. 31, 2011

Quarterly Financial Data (Unaudited) [Abstract]

Quarterly Financial Information [Text Block]

Quarterly Financial Data (Unaudited)

(In thousands, except per share information)

	2011 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	203,023		$	188,934		$	179,655		$	184,413		$	756,025
Net investment income	42,240			43,823			38,763			38,694			163,520
Net gains on investments (1)	37,435			44,236			81,640			38,866			202,177
Net impairment losses recognized in earnings	—			(11		)	(20		)	(1,171		)	(1,202		)
Net change in fair value of derivative instruments (2)	243,892			188,726			126,008			69,769			628,395
Net gains on other financial instruments (3)	75,251			5,047			80,602			32,429			193,329
Provision for losses (9)	427,373			263,566			249,598			355,984			1,296,521
Change in reserve for premium deficiency (6)	(1,383		)	(3,102		)	(1,942		)	(665		)	(7,092		)
Policy acquisition and other operating expenses	60,350			60,341			56,689			51,193			228,573
Equity in net income of affiliates	65			—			—			—			65
Net income (loss) (5)	103,006			137,115			183,568			(121,539		)	302,150
Diluted net income (loss) per share (7)(8)	$	0.77		$	1.03		$	1.37		$	(0.92	)	$	2.26
Weighted average shares outstanding (7)	133,703			133,614			133,513			133,463			133,863
	2010 Quarters
	First			Second			Third			Fourth			Year
Net premiums earned—insurance	$	198,268		$	203,446		$	203,937		$	220,082		$	825,733
Net investment income	45,358			48,619			46,554			38,229			178,760
Net gains (losses) on investments (1)	57,948			57,262			94,258			(69,524		)	139,944
Net impairment losses recognized in earnings	(18		)	(38		)	(34		)	—			(90		)
Net change in fair value of derivative instruments (2)	(77,954		)	(524,606		)	229,783			(185,935		)	(558,712		)
Net (losses) gains on other financial instruments (3)	(101,564		)	(63,200		)	4,882			(51,799		)	(211,681		)
Gain on sale of affiliate (4)	—			34,815			—			—			34,815
Provision for losses	543,880			435,166			344,389			415,809			1,739,244
Change in reserve for premium deficiency (6)	(1,231		)	(7,354		)	8,628			(14,664		)	(14,621		)
Policy acquisition and other operating expenses	79,924			51,962			54,106			59,419			245,411
Equity in net income of affiliates (4)	8,098			6,570			—			—			14,668
Net (loss) income (5)	(310,355		)	(475,080		)	112,185			(1,132,617		)	(1,805,867		)
Diluted net (loss) income per share (7)(8)	$	(3.77	)	$	(4.31	)	$	0.84		$	(8.55	)	$	(15.74	)
Weighted average shares outstanding (7)	82,341			110,282			133,520			132,434			114,697

 ______________

(1) The 2011 and 2010 periods reflect realized gains and losses on investments in connection with the continued reallocation of our investment portfolio and unrealized gains and losses on our trading securities.

(2) The change in fair value of derivative instruments for 2011 and 2010 reflects the volatility in the cumulative unrealized gain attributable to the market’s perception of our non-performance risk as a result of the changes in our CDS spread during both years.

(3) The 2011 and 2010 periods reflect losses on financial guaranty VIE debt and NIMS VIE debt, offset by realized gains on investments in connection with the continued reallocation of our investment portfolio.

(4) On May 3, 2010, we sold our remaining equity interest in Sherman, which resulted in a gain on sale of affiliate. We no longer record equity in net income of affiliates as a result of the sale.

(5) The net loss for the fourth quarter of 2011 was primarily due to an increase in both the mortgage insurance and financial guaranty provision for losses. The net loss for the fourth quarter of 2010 was due primarily to the establishment of an $841.5 million valuation allowance against our DTA during the fourth quarter.

(6) The 2011 and 2010 periods reflect changes in the provision for second-lien premium deficiency, due to the transfer of premium deficiency reserves to loss reserves, terminations of second-lien transactions, as well as changes in estimates.

(7) Diluted net income (loss) per share and average shares outstanding per the accounting standard regarding earnings per share.

(8) Net income (loss) per share is computed independently for each period presented. Consequently, the sum of the quarters may not equal the total net income (loss) per share for the year.

(9) The provision for losses in the fourth quarter of 2011 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. In addition, the results include the effects of an increase in our IBNR reserve estimate.