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Reinsurance and Other Monoline Exposures (Tables)
 9 Months Ended
Sep. 30, 2014
Reinsurance and Other Monoline Exposures [abstract]  
Direct, assumed, and ceded premium and loss and LAE amounts
Effect of Reinsurance on Statement of Operations

 
 
Third Quarter
 
Nine Months
 
 
2014
 
2013
 
2014

2013
 
 
(in millions)
Premiums Written:
 
 
 
 
 
 
 
 
Direct
 
$
52

 
$
28

 
$
100

 
$
48

Assumed(1)
 
(5
)
 
(2
)
 
(6
)
 
17

Ceded(2)
 
0

 
4

 
(22
)
 
3

Net
 
$
47

 
$
30

 
$
72

 
$
68

Premiums Earned:
 
 
 
 
 
 
 
 
Direct
 
$
151

 
$
173

 
$
438

 
$
627

Assumed
 
12

 
12

 
32

 
26

Ceded
 
(19
)
 
(26
)
 
(58
)
 
(83
)
Net
 
$
144

 
$
159

 
$
412

 
$
570

Loss and LAE:
 
 
 
 
 
 
 
 
Direct
 
$
(58
)
 
$
25

 
$
46

 
$
18

Assumed
 
11

 
35

 
26

 
70

Ceded
 
3

 
(5
)
 
(18
)
 
(19
)
Net
 
$
(44
)
 
$
55

 
$
54

 
$
69

____________________
(1)
Negative assumed premiums written were due to changes in expected Debt Service schedules.

(2)    Positive ceded premiums written were due to changes in expected Debt Service schedules.
Exposure by Reinsurer
Exposure by Reinsurer
  
 
 
Ratings at
 
Par Outstanding
 
 
November 5, 2014
 
As of September 30, 2014
Reinsurer
 
Moody’s
Reinsurer
Rating
 
S&P
Reinsurer
Rating
 
Ceded Par
Outstanding(1)
 
Second-to-
Pay Insured
Par
Outstanding
 
Assumed Par
Outstanding
 
 
(dollars in millions)
American Overseas Reinsurance Company Limited (f/k/a Ram Re)
 
WR (2)
 
WR
 
$
7,233

 
$
—

 
$
30

Tokio Marine & Nichido Fire Insurance Co., Ltd.
 
Aa3 (3)
 
AA- (3)
 
5,653

 
—

 
—

Radian Asset Assurance Inc.
 
Ba1
 
B+
 
4,307

 
21

 
756

Syncora Guarantee Inc.
 
WR
 
WR
 
3,940

 
1,702

 
161

Mitsui Sumitomo Insurance Co. Ltd.
 
A1
 
A+ (3)
 
2,062

 
—

 
—

ACA Financial Guaranty Corp.
 
NR (5)
 
WR
 
752

 
2

 
—

Federal Insurance Company
 
Aa2
 
AA
 
382

 
—

 
—

Swiss Reinsurance Co.
 
Aa3
 
AA-
 
332

 
—

 
—

Security Life of Denver Insurance Company
 
A3
 
A-
 
239

 
—

 
—

Ambac
 
WR
 
WR
 
82

 
5,437

 
15,424

Ambac Assurance Corp. Segregated Account
 
NR
 
NR
 
—

 
114

 
1,106

CIFG Assurance North America Inc.
 
WR
 
WR
 
—

 
107

 
4,495

MBIA
 
(4)
 
(4)
 
—

 
3,146

 
609

National Public Finance Guarantee Corporation
 
A3
 
AA-
 
—

 
6,375

 
6,067

FGIC
 
WR
 
WR
 
—

 
2,145

 
1,135

Other
 
Various
 
Various
 
206

 
902

 
46

Total
 
 
 
 
 
$
25,188

 
$
19,951

 
$
29,829

____________________
(1)
Includes $2,540 million in ceded par outstanding related to insured credit derivatives.
  
(2)    Represents “Withdrawn Rating.”
 
(3)    The Company has structural collateral agreements satisfying the triple-A credit requirement of S&P and/or Moody’s.

(4)
MBIA includes subsidiaries MBIA Insurance Corp. rated B by S&P and B2 by Moody's and MBIA U.K. Insurance Ltd. rated B by S&P and Ba2 by Moody’s.

(5)    Represents “Not Rated.”
Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
As of September 30, 2014
 
 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss and LAE
 
Ceded
Expected
Loss and LAE
 
(in millions)
American Overseas Reinsurance Company Limited
$
—

 
$
(8
)
 
$
—

 
$
9

Tokio Marine & Nichido Fire Insurance Co., Ltd.
—

 
(16
)
 
—

 
31

Radian Asset Assurance Inc.
—

 
(16
)
 
—

 
16

Syncora Guarantee Inc.
—

 
(35
)
 
—

 
2

Mitsui Sumitomo Insurance Co. Ltd.
—

 
(3
)
 
—

 
9

Federal Insurance Company
—

 
(16
)
 
—

 
—

Swiss Reinsurance Co.
—

 
(3
)
 
—

 
4

Security Life of Denver Insurance Company
—

 
(9
)
 
—

 
—

Ambac
45

 
—

 
(19
)
 
—

Ambac Assurance Corp. Segregated Account
15

 
—

 
(79
)
 
—

CIFG Assurance North America Inc.
—

 
—

 
(6
)
 
—

MBIA
5

 
—

 
(9
)
 
—

National Public Finance Guarantee Corporation
7

 
—

 
(3
)
 
—

FGIC
6

 
—

 
(109
)
 
—

Other
0

 
(24
)
 
—

 
—

Total
$
78

 
$
(130
)
 
$
(225
)
 
$
71