Note 9 - Financial Guaranty Insurance Contracts (Tables)

3 Months Ended

Mar. 31, 2014

Financial Guaranty Insurance Contracts [Abstract]

Schedule of Insured Financial Obligations with Credit Deterioration [Table Text Block]

The following table includes information as of March 31, 2014 regarding our financial guaranty claim liabilities on non-derivative transactions, segregated by the surveillance categories that we use in monitoring the risks related to these contracts:



	Surveillance Categories
($ in thousands)	Performing		Special Mention		Intensified Surveillance			Case Reserve			Total
Number of policies	7		221		56			82			366
Remaining weighted-average contract period (in years)	22		16		19			18			17
Insured contractual payments outstanding:
Principal	$	1,513	$	1,162,520	$	581,107		$	79,952		$	1,825,092
Interest	172		671,500		306,299			21,614			999,585
Total	$	1,685	$	1,834,020	$	887,406		$	101,566		$	2,824,677

Gross claim liability	$	1	$	22,047	$	229,993		$	25,557		$	277,598
Less:
Gross potential recoveries	—		2,364		334,298			44,075			380,737
Discount, net	—		3,343		(147,419		)	(2,328		)	(146,404		)
Net claim liability/(asset) (prior to reduction for unearned premium)	$	1	$	16,340	$	43,114		$	(16,190	)	$	43,265
Unearned premium revenue	$	6	$	20,513	$	9,205		$	—		$	29,724
Net claim liability/(asset) reported in the balance sheet	$	—	$	6,453	$	37,552		$	(16,190	)	$	27,815
Reinsurance recoverables	$	—	$	—	$	—		$	—		$	—

Adjustments to Premiums Earned Financial Guaranty Contracts [Table Text Block]

Premiums earned were affected by the following for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2014		2013
Refundings	$	2,117	$	4,753
Recaptures/Commutations	—		(2,447		)
Adjustments to installment premiums, gross of commissions	139		2,692
Unearned premium acceleration upon establishment of case reserves	—		65
Foreign exchange revaluation, gross of commissions	314		(768		)
Total adjustment to premiums earned	$	2,570	$	4,295

Financial Guarantee Insurance Contracts Future Premium Revenue to be Recognized [Table Text Block]

The following table shows the expected contractual premium revenue from our existing financial guaranty portfolio, assuming no refundings of any financial guaranty obligations, as of March 31, 2014:



(In thousands)	Ending Net Unearned Premiums		Unearned Premium Amortization		Accretion		Total Premium Revenue
2^nd quarter 2014	$	175,331	$	6,088	$	199	$	6,287
3^rd quarter 2014	167,264		8,066		193		8,259
4^th quarter 2014	162,654		4,610		191		4,801
2014	162,654		18,764		583		19,347
2015	146,423		16,232		719		16,951
2016	133,021		13,402		657		14,059
2017	120,746		12,274		616		12,890
2018	109,213		11,533		562		12,095
2014 - 2018	109,213		72,205		3,137		75,342
2019 - 2023	61,574		47,639		2,147		49,786
2024 - 2028	30,234		31,341		1,369		32,710
2029 - 2033	12,735		17,499		873		18,372
After 2033	—		12,735		1,009		13,744
Total	$	—	$	181,419	$	8,535	$	189,954

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table shows the significant components of changes in our financial guaranty claim liability for the three months ended March 31, 2014 and 2013, excluding reserves related to our trade credit reinsurance and surety business of $1.9 million and $2.1 million, respectively, which are excluded from the accounting standard regarding accounting for financial guaranty insurance contracts by insurance enterprises.



	Three Months Ended March 31,
(In thousands)	2014			2013
Claim liability at January 1	$	19,458		$	64,291
Incurred losses and LAE:
Increase in gross claim liability	8,140			8,390
Decrease (increase) in gross potential recoveries	32,958			(3,946		)
Increase in discount	(31,757		)	(3,555		)
Increase in unearned premiums	(4,110		)	(797		)
Incurred losses and LAE	5,231			92
Paid losses and LAE:
Current year	—			1
Prior years	3,126			(41,915		)
Paid losses and LAE	3,126			(41,914		)
Claim liability at March 31	$	27,815		$	22,469

Components of incurred losses and LAE:
Claim liability established in current period	$	1,040		$	104
Changes in existing claim liabilities	4,191			(12		)
Total incurred losses and LAE	$	5,231		$	92

Components of increase in discount:
Increase in discount related to claim liabilities established in current period	$	(491	)	$	(128	)
Increase in discount related to existing claim liabilities	(31,266		)	(3,427		)
Total increase in discount	$	(31,757	)	$	(3,555	)

Schedule or Description of Weighted Average Discount Rate [Table Text Block]

The weighted-average risk-free rates used to discount the gross claim liability and gross potential recoveries on our financial guaranty contracts were as follows, as of the dates indicated:



March 31, 2014	2.86	%
December 31, 2013	2.95	%
March 31, 2013	2.09	%
December 31, 2012	2.00	%

- Definition

Tabular disclosure of insured financial obligations with credit deterioration related to the claim liability on financial guarantee insurance contracts as of the end of each annual and interim reporting period detailing, at a minimum, the following for each surveillance category or grouping used to track and monitor the entity's insured financial obligations: (1) number of issued and outstanding financial guarantee insurance contracts; (2) remaining weighted average contract period; (3) insured contractual payments outstanding, segregating principal and interest; (4) gross claim liability; (5) gross potential recoveries; (6) net discount of both the claim liability and potential recoveries; (7) net claim liability; (8) reinsurance recoverable; and (9) unearned premium revenue.

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