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Financial Guaranty Insurance Premiums (Tables)
 9 Months Ended
Sep. 30, 2014
Financial Guaranty Insurance Premiums [Abstract]  
Financial Guaranty Insurance Contracts, Net Earned Premiums
Net Earned Premiums
 
 
Third Quarter
 
Nine Months
 
2014
 
2013
 
2014
 
2013
 
(in millions)
Scheduled net earned premiums
$
105

 
$
117

 
$
318

 
$
358

Acceleration of net earned premiums
36

 
40

 
79

 
199

Accretion of discount on net premiums receivable
3

 
2

 
14

 
12

Financial guaranty insurance net earned premiums
144

 
159

 
411

 
569

Other
0

 
0

 
1

 
1

 Net earned premiums(1)
$
144

 
$
159

 
$
412

 
$
570

 ___________________
(1)
Excludes $5 million and $14 million for Third Quarter 2014 and 2013, respectively, and $27 million and $47 million for Nine Months 2014 and 2013, respectively, related to consolidated FG VIEs.
Financial Guaranty Insurance Contracts, Net Unearned Premium Reserve
Components of Unearned Premium Reserve
 
 
As of September 30, 2014
 
As of December 31, 2013
 
Gross
 
Ceded
 
Net(1)
 
Gross
 
Ceded
 
Net(1)
 
(in millions)
Deferred premium revenue:
 
 
 
 
 
 
 
 
 
 
 
   Financial guaranty insurance
$
4,322

 
$
433

 
$
3,889

 
$
4,647

 
$
470

 
$
4,177

   Other
4

 
—

 
4

 
5

 
—

 
5

Deferred premium revenue
$
4,326

 
$
433

 
$
3,893

 
$
4,652

 
$
470

 
$
4,182

Contra-paid (2)
(63
)
 
(13
)
 
(50
)
 
(57
)
 
(18
)
 
(39
)
Unearned premium reserve
$
4,263

 
$
420

 
$
3,843

 
$
4,595

 
$
452

 
$
4,143

 ____________________
(1)
Excludes $128 million and $187 million of deferred premium revenue, and $49 million and $55 million of contra-paid related to FG VIEs as of September 30, 2014 and December 31, 2013, respectively.

(2)
See Note 6, "Financial Guaranty Insurance Losses– Insurance Contracts' Loss Information" for an explanation of "contra-paid".
Financial Guaranty Insurance Contracts, Premium Receivable Activity
Gross Premium Receivable,
Net of Commissions on Assumed Business
Roll Forward
 
 
Nine Months
 
2014

2013
 
(in millions)
Beginning of period, December 31
$
876

 
$
1,005

Gross premium written, net of commissions on assumed business
116

 
72

Gross premiums received, net of commissions on assumed business
(172
)
 
(167
)
Adjustments:
 
 
 
Changes in the expected term
(21
)
 
(14
)
Accretion of discount, net of commissions on assumed business
17

 
15

Foreign exchange translation
(16
)
 
(7
)
Other adjustments
1

 
2

End of period, September 30 (1)
$
801

 
$
906

____________________
(1)
Excludes $18 million and $19 million as of September 30, 2014 and September 30, 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 September 30, 2014
 
(in millions)
2014 (October 1 – December 31)
$
37

2015
99

2016
84

2017
77

2018
69

2019-2023
275

2024-2028
169

2029-2033
117

After 2033
125

Total(1)
$
1,052

 ____________________
(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 September 30, 2014
 
(in millions)
2014 (October 1–December 31)
$
99

2015
360

2016
334

2017
297

2018
271

2019 - 2023
1,056

2024 - 2028
678

2029 - 2033
414

After 2033
380

Total present value basis(1)
3,889

Discount
218

Total future value
$
4,107

 ____________________
(1)
Excludes scheduled net earned premiums on consolidated FG VIEs of $128 million.
Financial Guaranty Insurance Contracts, Policies Paid in Installments
Selected Information for Policies Paid in Installments

 
As of
September 30, 2014
 
As of
December 31, 2013
 
(dollars in millions)
Premiums receivable, net of commission payable
$
801

 
$
876

Gross deferred premium revenue
1,442

 
1,576

Weighted-average risk-free rate used to discount premiums
3.4
%
 
3.4
%
Weighted-average period of premiums receivable (in years)
9.3

 
9.4