Consolidation of Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2013

Consolidation of Variable Interest Entities [abstract]

Number of Consolidated FG VIE's

Number of FG VIE's Consolidated

	Year Ended December 31,
	2013		2012		2011
Beginning of the year	33		33		29
Consolidated(1)	11		2		8
Deconsolidated(1)	(3	)	—		—
Matured	(1	)	(2	)	(4	)
End of the year	40		33		33

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(1) Net loss on consolidation and deconsolidation was $7 million in 2013, $6 million in 2012 and $95 million in 2011, respectively, and recorded in “fair value gains (losses) on FG VIEs” in the consolidated statement of operations.

Consolidated FG VIEs By Type of Collateral

Consolidated FG VIEs

By Type of Collateral

	As of December 31, 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	$	630	$	791	14	$	618	$	825
Second lien	14	460		640		16	633		915
Other	1	359		359		3	350		350
Total with recourse	40	1,449		1,790		33	1,601		2,090
Without recourse	—	1,116		1,081		—	1,087		1,051
Total	40	$	2,565	$	2,871	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,

Cash Flows From Operating Activities and Shareholders’ Equity

	Year Ended December 31,
	2013			2012			2011
	(in millions)
Net earned premiums	$	(60	)	$	(153	)	$	(75	)
Net investment income	(13		)	(13		)	(8		)
Net realized investment gains (losses)	2			4			12
Fair value gains (losses) on FG VIEs	346			191			(146		)
Loss and LAE	21			65			107
Total pretax effect on net income	296			94			(110		)
Less: tax provision (benefit)	103			32			(38		)
Total effect on net income (loss)	$	193		$	62		$	(72	)
Effect of consolidating VIEs on cash flows from operating activities	$	(136	)	$	166		$	319

	As of December 31, 2013			As of December 31, 2012
	(in millions)
Effect on shareholders’ equity (decrease) increase	$	(172	)	$	(348	)