Consolidation of Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2013

Consolidation of Variable Interest Entities [abstract]

Number of FG VIE's Consolidated



	As of June 30, 2013		As of December 31, 2012

Beginning of the period	33		33
Consolidated(1)	11		2
Deconsolidated(1)	(2	)	—
Matured	(1	)	(2	)
End of the period	41		33

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(1)	Net loss on consolidation and deconsolidation was $7 million in Six Months 2013 and $6 million in 2012, respectively, and recorded in “fair value gains (losses) on FG VIEs” in the consolidated statement of operations.

Consolidated FG VIEs By Type of Collateral

The table below shows the carrying value of the consolidated FG VIEs’ assets and liabilities in the consolidated financial statements, segregated by the types of assets that collateralize their respective debt obligations.

Consolidated FG VIEs

By Type of Collateral



	As of June 30, 2013					As of December 31, 2012
	Number of FG VIEs	Assets		Liabilities		Number of FG VIEs	Assets		Liabilities
	(dollars in millions)
With recourse:
First lien	25	$	653	$	849	14	$	618	$	825
Second lien	14	492		731		16	633		915
Other	2	360		360		3	350		350
Total with recourse	41	1,505		1,940		33	1,601		2,090
Without recourse	—	1,169		1,134		—	1,087		1,051
Total	41	$	2,674	$	3,074	33	$	2,688	$	3,141

Gross Par Outstanding for FG VIEs Liabilities With Recourse

Unpaid Principal for FG VIEs’ Liabilities

with Recourse



	As of June 30, 2013		As of December 31, 2012
	(in millions)
Unpaid principal for FG VIEs’ liabilities with recourse (1)	$	2,481	$	2,808

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(1)	FG VIE liabilities with recourse will mature at various dates ranging from 2025 to 2047, except for $12 million maturing in 2014.

Effect of Consolidating FG VIEs on Net Income and Shareholder's Equity

Effect of Consolidating FG VIEs on Net Income

and Shareholders’ Equity



	Second Quarter						Six Months
	2013			2012			2013			2012
	(in millions)
Net earned premiums	$	(15	)	$	(16	)	$	(33	)	$	(33	)
Net investment income	(4		)	(3		)	(7		)	(6		)
Net realized investment gains (losses)	1			3			2			4
Fair value gains (losses) on FG VIEs	143			168			213			127
Loss and LAE	22			4			15			12
Total pretax effect on net income	147			156			190			104
Less: tax provision (benefit)	51			55			66			37
Total effect on net income (loss)	$	96		$	101		$	124		$	67



	As of June 30, 2013			As of December 31, 2012
	(in millions)
Total (decrease) increase on shareholders’ equity	$	(226	)	$	(348	)