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Financial Guaranty Insurance Premiums (Tables)
 3 Months Ended
Mar. 31, 2014
Financial Guaranty Insurance Premiums [Abstract]  
Financial Guaranty Insurance Contracts, Net Earned Premiums
Net Earned Premiums
 
 
First Quarter
 
2014
 
2013
 
(in millions)
Scheduled net earned premiums
$
107

 
$
128

Acceleration of net earned premiums
19

 
113

Accretion of discount on net premiums receivable
6

 
7

 Net earned premiums(1)
$
132

 
$
248

 ___________________
(1)
Excludes $17 million and $18 million for First Quarter 2014 and 2013, respectively, related to consolidated FG VIEs.
Financial Guaranty Insurance Contracts, Net Unearned Premium Reserve
Components of Unearned Premium Reserve
 
 
As of March 31, 2014
 
As of December 31, 2013
 
Gross
 
Ceded
 
Net(1)
 
Gross
 
Ceded
 
Net(1)
 
(in millions)
Deferred premium revenue:
 
 
 
 
 
 
 
 
 
 
 
   Financial guaranty insurance
$
4,567

 
$
472

 
$
4,095

 
$
4,647

 
$
470

 
$
4,177

   Other
5

 
—

 
5

 
5

 
—

 
5

Deferred premium revenue
$
4,572

 
$
472

 
$
4,100

 
$
4,652

 
$
470

 
$
4,182

Contra-paid
(68
)
 
(18
)
 
(50
)
 
(57
)
 
(18
)
 
(39
)
Unearned premium reserve
$
4,504

 
$
454

 
$
4,050

 
$
4,595

 
$
452

 
$
4,143

 ____________________
(1)
Excludes $137 million and $187 million of deferred premium revenue, and $49 million and $55 million of contra-paid related to FG VIEs as of March 31, 2014 and December 31, 2013, respectively.
Financial Guaranty Insurance Contracts, Premium Receivable Activity
Gross Premium Receivable,
Net of Commissions on Assumed Business
Roll Forward
 
 
First Quarter
 
2014
 
2013
 
(in millions)
Beginning of period, December 31
$
876

 
$
1,005

Gross premium written, net of commissions on assumed business
33

 
17

Gross premiums received, net of commissions on assumed business
(53
)
 
(53
)
Adjustments:
 
 
 
Changes in the expected term
(3
)
 
1

Accretion of discount, net of commissions on assumed business
7

 
9

Foreign exchange translation
2

 
(23
)
Other adjustments
1

 
0

End of period, March 31 (1)
$
863

 
$
956

____________________
(1)
Excludes $18 million and $28 million as of March 31, 2014 and March 31, 2013, respectively, related to consolidated FG VIEs.
Financial Guaranty Insurance Contracts, Premium Receivable Premium Expected to be Collected
Expected Collections of
Gross Premiums Receivable,
Net of Commissions on Assumed Business
(Undiscounted)
 
As of
March 31, 2014
 
(in millions)
2014 (April 1 - June 30)
$
46

2014 (July 1 - September 30)
24

2014 (October 1 – December 31)
26

2015
95

2016
86

2017
79

2018
71

2019-2023
282

2024-2028
176

2029-2033
123

After 2033
130

Total(1)
$
1,138

 ____________________
(1)
Excludes expected cash collections on FG VIEs of $23 million.
Schedule of Net Earned Premiums Financial Guaranty Contracts
Scheduled Net Earned Premiums

 
As of March 31, 2014
 
(in millions)
2014 (April 1 - June 30)
$
105

2014 (July 1 - September 30)
103

2014 (October 1–December 31)
99

2015
359

2016
335

2017
297

2018
271

2019 - 2023
1,058

2024 - 2028
676

2029 - 2033
412

After 2033
380

Total present value basis(1)
4,095

Discount
239

Total future value
$
4,334

 ____________________
(1)
Excludes scheduled net earned premiums on consolidated FG VIEs of $137 million.
Financial Guaranty Insurance Contracts, Policies Paid in Installments
Selected Information for Policies Paid in Installments

 
As of
March 31, 2014
 
As of
December 31, 2013
 
(dollars in millions)
Premiums receivable, net of commission payable
$
863

 
$
876

Gross deferred premium revenue
1,560

 
1,576

Weighted-average risk-free rate used to discount premiums
3.5
%
 
3.4
%
Weighted-average period of premiums receivable (in years)
9.4

 
9.4