Consolidation of Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2013

Consolidation of Variable Interest Entities [abstract]

Number of FG VIE's Consolidated



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

Beginning of the period	33		33
Consolidated(1)	11		2
Deconsolidated(1)	(3	)	—
Matured	(1	)	(2	)
End of the period	40		33

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(1)	Net loss on consolidation and deconsolidation was $7 million in Nine 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 September 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	$	620	$	799	14	$	618	$	825
Second lien	14	456		671		16	633		915
Other	1	358		358		3	350		350
Total with recourse	40	1,434		1,828		33	1,601		2,090
Without recourse	—	1,081		1,047		—	1,087		1,051
Total	40	$	2,515	$	2,875	33	$	2,688	$	3,141

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

Effect of Consolidating FG VIEs on Net Income

and Shareholders’ Equity



	Third Quarter						Nine Months
	2013			2012			2013			2012
	(in millions)
Net earned premiums	$	(14	)	$	(17	)	$	(47	)	$	(50	)
Net investment income	(3		)	(3		)	(10		)	(9		)
Net realized investment gains (losses)	0			0			2			4
Fair value gains (losses) on FG VIEs	40			34			253			161
Loss and LAE	11			2			26			14
Total pretax effect on net income	34			16			224			120
Less: tax provision (benefit)	12			5			78			42
Total effect on net income (loss)	$	22		$	11		$	146		$	78



	As of September 30, 2013			As of December 31, 2012
	(in millions)
Total (decrease) increase on shareholders’ equity	$	(209	)	$	(348	)

Schedule of Gross Par Outstanding Financial Guaranty VIE Liabilities [Table Text Block]

Unpaid Principal for FG VIEs’ Liabilities

with Recourse



	As of September 30, 2013		As of December 31, 2012
	(in millions)
Unpaid principal for FG VIEs’ liabilities with recourse (1)	$	2,385	$	2,808

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(1)	FG VIE liabilities with recourse will mature at various dates ranging from 2025 to 2047.