Outstanding Exposure (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Insured Financial Obligations [Line Items]

Debt Service Outstanding

Debt Service Outstanding

	Gross Debt Service Outstanding				Net Debt Service Outstanding
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
	(in millions)
Public finance	$	587,245	$	650,924	$	553,612	$	610,011
Structured finance	59,477		86,456		56,010		80,524
Total financial guaranty	$	646,722	$	737,380	$	609,622	$	690,535

Financial Guaranty Portfolio by Internal Rating

Financial Guaranty Portfolio by Internal Rating

As of December 31, 2014

	Public Finance U.S.				Public Finance Non-U.S.				Structured Finance U.S				Structured Finance Non-U.S				Total
Rating Category	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
	(dollars in millions)
AAA	$	4,082	1.3	%	$	615	2.0	%	$	20,037	48.7	%	$	5,409	59.6	%	$	30,143	7.5	%
AA	90,464		28.1		2,785		8.9		8,213		19.9		503		5.5		101,965		25.3
A	176,298		54.7		7,192		22.9		2,940		7.1		445		4.9		186,875		46.3
BBB	43,429		13.5		19,363		61.7		1,795		4.4		1,912		21.1		66,499		16.4
BIG	7,850		2.4		1,404		4.5		8,186		19.9		807		8.9		18,247		4.5
Total net par outstanding (1)	$	322,123	100.0	%	$	31,359	100.0	%	$	41,171	100.0	%	$	9,076	100.0	%	$	403,729	100.0	%

_____________________

(1) Excludes $1.3 billion of loss mitigation securities insured and held by the Company as of December 31, 2014, which are primarily in the BIG category.

Financial Guaranty Portfolio by Internal Rating

As of December 31, 2013

	Public Finance U.S.				Public Finance Non-U.S.				Structured Finance U.S				Structured Finance Non-U.S				Total
Rating Category	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
	(dollars in millions)
AAA	$	4,998	1.4	%	$	1,016	3.0	%	$	32,317	54.9	%	$	9,684	69.1	%	$	48,015	10.5	%
AA	107,503		30.5		422		1.2		9,431		16.0		577		4.1		117,933		25.7
A	192,841		54.8		9,453		27.9		2,580		4.4		742		5.3		205,616		44.8
BBB	37,745		10.7		21,499		63.2		3,815		6.4		1,946		13.9		65,005		14.1
BIG	9,094		2.6		1,608		4.7		10,764		18.3		1,072		7.6		22,538		4.9
Total net par outstanding (1)	$	352,181	100.0	%	$	33,998	100.0	%	$	58,907	100.0	%	$	14,021	100.0	%	$	459,107	100.0	%

_____________________

(1) Excludes $1.2 billion of loss mitigation securities insured and held by the Company as of December 31, 2013, which are primarily in the BIG category.

Financial Guaranty Portfolio by Asset Class

Financial Guaranty Portfolio

by Sector

	Gross Par Outstanding				Ceded Par Outstanding				Net Par Outstanding
Sector	As of December 31, 2014		As of December 31, 2013		As of December 31, 2014		As of December 31, 2013		As of December 31, 2014		As of December 31, 2013
	(dollars in millions)
Public finance:
U.S.:
General obligation	$	144,714	$	160,751	$	4,438	$	5,474	$	140,276	$	155,277
Tax backed	65,600		70,552		3,075		3,728		62,525		66,824
Municipal utilities	53,471		57,893		1,381		1,569		52,090		56,324
Transportation	28,914		32,514		1,091		1,684		27,823		30,830
Healthcare	16,225		17,663		1,377		1,531		14,848		16,132
Higher education	13,485		14,470		386		399		13,099		14,071
Infrastructure finance	5,098		5,014		917		900		4,181		4,114
Housing	2,880		3,518		101		132		2,779		3,386
Investor-owned utilities	944		992		0		1		944		991
Other public finance—U.S.	3,575		4,249		17		17		3,558		4,232
Total public finance—U.S.	334,906		367,616		12,783		15,435		322,123		352,181
Non-U.S.:
Infrastructure finance	15,091		17,373		2,283		2,670		12,808		14,703
Regulated utilities	14,582		15,502		3,668		4,297		10,914		11,205
Pooled infrastructure	2,565		2,754		145		234		2,420		2,520
Other public finance—non-U.S.	6,216		6,645		999		1,075		5,217		5,570
Total public finance—non-U.S.	38,454		42,274		7,095		8,276		31,359		33,998
Total public finance	373,360		409,890		19,878		23,711		353,482		386,179
Structured finance:
U.S.:
Pooled corporate obligations	21,791		32,955		1,145		1,630		20,646		31,325
RMBS	10,109		14,542		692		821		9,417		13,721
Insurance securitizations	3,480		3,082		47		47		3,433		3,035
Financial product	2,276		2,709		—		—		2,276		2,709
Consumer receivables	2,157		2,257		58		59		2,099		2,198
Commercial mortgage-backed securities ("CMBS") and other commercial real estate related exposures	1,979		3,990		22		38		1,957		3,952
Commercial receivables	567		918		7		7		560		911
Structured credit	71		71		2		2		69		69
Other structured finance—U.S.	858		2,067		144		1,080		714		987
Total structured finance—U.S.	43,288		62,591		2,117		3,684		41,171		58,907
Non-U.S.:
Pooled corporate obligations	7,439		12,232		835		1,174		6,604		11,058
Commercial receivables	965		1,286		21		23		944		1,263
RMBS	893		1,296		99		150		794		1,146
Structured credit	9		197		—		21		9		176
Other structured finance—non-U.S.	750		403		25		25		725		378
Total structured finance—non-U.S.	10,056		15,414		980		1,393		9,076		14,021
Total structured finance	53,344		78,005		3,097		5,077		50,247		72,928
Total net par outstanding	$	426,704	$	487,895	$	22,975	$	28,788	$	403,729	$	459,107

Expected Amortization of Net Par Outstanding

Expected Amortization of

Net Par Outstanding

As of December 31, 2014

	Public Finance		Structured Finance		Total
	(in millions)
0 to 5 years	$	98,431	$	36,482	$	134,913
5 to 10 years	75,279		5,454		80,733
10 to 15 years	67,354		2,874		70,228
15 to 20 years	51,139		2,412		53,551
20 years and above	61,279		3,025		64,304
Total net par outstanding	$	353,482	$	50,247	$	403,729

Components of BIG Net Par Outstanding (Insurance and Credit Derivative Form)

Components of BIG Net Par Outstanding

(Insurance and Credit Derivative Form)

As of December 31, 2014

	BIG Net Par Outstanding								Net Par
	BIG 1		BIG 2		BIG 3		Total BIG		Outstanding
					(in millions)
First lien U.S. RMBS:
Prime first lien	$	68	$	33	$	252	$	353	$	471
Alt-A first lien	585		531		725		1,841		2,532
Option ARM	47		18		118		183		407
Subprime	156		654		765		1,575		4,051
Second lien U.S. RMBS:
Closed-end second lien	—		19		115		134		218
Home equity lines of credit (“HELOCs”)	1,012		36		509		1,557		1,738
Total U.S. RMBS	1,868		1,291		2,484		5,643		9,417
Trust preferred securities (“TruPS”)	997		—		336		1,333		4,326
Other structured finance	1,021		240		756		2,017		36,504
U.S. public finance	6,577		1,156		117		7,850		322,123
Non-U.S. public finance	1,402		2		—		1,404		31,359
Total	$	11,865	$	2,689	$	3,693	$	18,247	$	403,729

Components of BIG Net Par Outstanding

(Insurance and Credit Derivative Form)

As of December 31, 2013

	BIG Net Par Outstanding								Net Par
	BIG 1		BIG 2		BIG 3		Total BIG		Outstanding
					(in millions)
First lien U.S. RMBS:
Prime first lien	$	52	$	321	$	30	$	403	$	541
Alt-A first lien	656		1,137		935		2,728		3,590
Option ARM	71		60		467		598		937
Subprime	297		908		740		1,945		6,130
Second lien U.S. RMBS:
Closed-end second lien	8		20		118		146		244
HELOCs	1,499		20		378		1,897		2,279
Total U.S. RMBS	2,583		2,466		2,668		7,717		13,721
TruPS	1,587		135		—		1,722		4,970
Other structured finance	1,367		309		721		2,397		54,237
U.S. public finance	8,205		440		449		9,094		352,181
Non-U.S. public finance	1,009		599		—		1,608		33,998
Total	$	14,751	$	3,949	$	3,838	$	22,538	$	459,107

BIG Net Par Outstanding and Number of Risks

BIG Net Par Outstanding

and Number of Risks

As of December 31, 2014

	Net Par Outstanding						Number of Risks(2)
Description	Financial Guaranty Insurance(1)		Credit Derivative		Total		Financial Guaranty Insurance(1)	Credit Derivative	Total
	(dollars in millions)
BIG:
Category 1	$	10,195	$	1,670	$	11,865	164	18	182
Category 2	2,135		554		2,689		75	14	89
Category 3	2,892		801		3,693		119	24	143
Total BIG	$	15,222	$	3,025	$	18,247	358	56	414

BIG Net Par Outstanding

and Number of Risks

As of December 31, 2013

	Net Par Outstanding						Number of Risks(2)
Description	Financial Guaranty Insurance(1)		Credit Derivative		Total		Financial Guaranty Insurance(1)	Credit Derivative	Total
	(dollars in millions)
BIG:
Category 1	$	12,391	$	2,360	$	14,751	185	25	210
Category 2	2,323		1,626		3,949		80	21	101
Category 3	3,031		807		3,838		119	27	146
Total BIG	$	17,745	$	4,793	$	22,538	384	73	457

_____________________

(1)Includes net par outstanding for FG VIEs.

(2) A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making Debt Service payments.

Financial Guaranty Insurance

BIG Transaction Loss Summary

As of December 31, 2014

	BIG Categories
	BIG 1						BIG 2						BIG 3						Total BIG, Net			Effect of Consolidating FG VIEs			Total
	Gross			Ceded			Gross			Ceded			Gross			Ceded
	(dollars in millions)
Number of risks(1)	164			(59		)	75			(15		)	119			(38		)	358			—			358
Remaining weighted-average contract period (in years)	9.9			7.4			10.1			8.9			9.6			6.9			10.3			—			10.3
Outstanding exposure:
Principal	$	12,358		$	(2,163	)	$	2,421		$	(286	)	$	3,067		$	(175	)	$	15,222		$	—		$	15,222
Interest	6,350			(838		)	1,274			(121		)	1,034			(48		)	7,651			—			7,651
Total(2)	$	18,708		$	(3,001	)	$	3,695		$	(407	)	$	4,101		$	(223	)	$	22,873		$	—		$	22,873
Expected cash outflows (inflows)	$	1,762		$	(626	)	$	763		$	(77	)	$	1,716		$	(75	)	$	3,463		$	(345	)	$	3,118
Potential recoveries
Undiscounted R&W	(39		)	0			(48		)	2			(171		)	9			(247		)	8			(239		)
Other(3)	(1,687		)	608			(206		)	5			(404		)	30			(1,654		)	177			(1,477		)
Total potential recoveries	(1,726		)	608			(254		)	7			(575		)	39			(1,901		)	185			(1,716		)
Subtotal	36			(18		)	509			(70		)	1,141			(36		)	1,562			(160		)	1,402
Discount	3			0			(117		)	11			(353		)	9			(447		)	34			(413		)
Present value of expected cash flows	$	39		$	(18	)	$	392		$	(59	)	$	788		$	(27	)	$	1,115		$	(126	)	$	989
Deferred premium revenue	$	378		$	(70	)	$	119		$	(6	)	$	312		$	(33	)	$	700		$	(116	)	$	584
Reserves (salvage)(4)	$	(42	)	$	(5	)	$	278		$	(53	)	$	482		$	(10	)	$	650		$	(79	)	$	571

Financial Guaranty Insurance

BIG Transaction Loss Summary

As of December 31, 2013

	BIG Categories
	BIG 1						BIG 2						BIG 3						Total BIG, Net			Effect of Consolidating FG VIEs			Total
	Gross			Ceded			Gross			Ceded			Gross			Ceded
	(dollars in millions)
Number of risks(1)	185			(72		)	80			(24		)	119			(34		)	384			—			384
Remaining weighted-average contract period (in years)	10.5			8.1			8.3			5.9			9.8			7.2			10.5			—			10.5
Outstanding exposure:
Principal	$	15,132		$	(2,741	)	$	2,483		$	(160	)	$	3,189		$	(158	)	$	17,745		$	—		$	17,745
Interest	8,114			(1,144		)	1,181			(53		)	1,244			(52		)	9,290			—			9,290
Total(2)	$	23,246		$	(3,885	)	$	3,664		$	(213	)	$	4,433		$	(210	)	$	27,035		$	—		$	27,035
Expected cash outflows (inflows)	$	1,853		$	(528	)	$	1,038		$	(40	)	$	1,681		$	(62	)	$	3,942		$	(690	)	$	3,252
Potential recoveries
Undiscounted R&W	(105		)	1			(201		)	8			(356		)	13			(640		)	72			(568		)
Other(3)	(1,774		)	513			(470		)	19			(351		)	19			(2,044		)	507			(1,537		)
Total potential recoveries	(1,879		)	514			(671		)	27			(707		)	32			(2,684		)	579			(2,105		)
Subtotal	(26		)	(14		)	367			(13		)	974			(30		)	1,258			(111		)	1,147
Discount	13			—			(126		)	3			(352		)	5			(457		)	51			(406		)
Present value of expected cash flows	$	(13	)	$	(14	)	$	241		$	(10	)	$	622		$	(25	)	$	801		$	(60	)	$	741
Deferred premium revenue	$	517		$	(90	)	$	163		$	(7	)	$	303		$	(27	)	$	859		$	(178	)	$	681
Reserves (salvage)(4)	$	(114	)	$	1		$	117		$	(4	)	$	420		$	(13	)	$	407		$	(18	)	$	389

____________________

(1) A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making Debt Service payments. The ceded number of risks represents the number of risks for which the Company ceded a portion of its exposure.

(2) Includes BIG amounts related to FG VIEs.

(3) Includes excess spread and draws on HELOCs.

(4) See table “Components of net reserves (salvage).”

Net Direct Economic Exposure to Selected European Countries

Net Direct Economic Exposure to Selected European Countries(1)

As of December 31, 2014

	Hungary		Italy		Portugal		Spain		Total
	(in millions)
Sovereign and sub-sovereign exposure:
Non-infrastructure public finance(2)	$	—	$	878	$	91	$	239	$	1,208
Infrastructure finance	313		13		11		135		472
Total sovereign and sub-sovereign exposure	313		891		102		374		1,680
Non-sovereign exposure:
Regulated utilities	—		220		—		—		220
RMBS	186		267		—		—		453
Total non-sovereign exposure	186		487		—		—		673
Total	$	499	$	1,378	$	102	$	374	$	2,353
Total BIG (See Note 6)	$	424	$	—	$	102	$	374	$	900

 ____________________

Schedule of Geographic Exposure of Net Par Outstanding

Geographic Distribution of

Net Par Outstanding

As of December 31, 2014

	Number of Risks	Net Par Outstanding		Percent of Total Net Par Outstanding
	(dollars in millions)
U.S.:
U.S. Public finance:
California	1,465	$	50,668	12.6	%
Pennsylvania	1,009	26,173		6.5
New York	995	26,044		6.5
Texas	1,239	25,449		6.3
Illinois	830	22,825		5.7
Florida	384	19,470		4.8
New Jersey	602	13,558		3.4
Michigan	668	12,739		3.2
Georgia	192	8,217		2.0
Ohio	507	7,818		1.9
Other states and U.S. territories	4,174	109,162		27.0
Total U.S. public finance	12,065	322,123		79.9
U.S. Structured finance (multiple states)	839	41,171		10.2
Total U.S.	12,904	363,294		90.1
Non-U.S.:
United Kingdom	114	19,856		4.9
Australia	26	4,121		1.0
Canada	10	3,526		0.9
France	20	2,820		0.7
Italy	9	1,501		0.4
Other	78	8,611		2.0
Total non-U.S.	257	40,435		9.9
Total	13,161	$	403,729	100.0	%

Puerto Rico [Member]

Schedule of Insured Financial Obligations [Line Items]

BIG Net Par Outstanding and Number of Risks

Amortization Schedule of Puerto Rico BIG Net Par Outstanding

and BIG Net Debt Service Outstanding

As of December 31, 2014

	Scheduled BIG Net Par Amortization						Scheduled BIG Net Debt Service Amortization
	Subject to the Now Voided Recovery Act		Not Subject to the Now Voided Recovery Act		Total		Subject to the Now Voided Recovery Act		Not Subject to the Now Voided Recovery Act		Total
	(in millions)
2015	$	126	$	205	$	331	$	249	$	319	$	568
2016	84		183		267		199		287		486
2017	41		166		207		153		262		415
2018	48		109		157		158		195		353
2019	61		126		187		168		207		375
2020	73		182		255		176		258		434
2021	51		58		109		151		124		275
2022	42		67		109		140		129		269
2023	102		40		142		198		99		297
2024	82		78		160		174		136		310
2025 - 2029	576		340		916		951		566		1,517
2030 - 2034	440		387		827		696		541		1,237
2035 - 2039	397		270		667		526		304		830
2040 - 2044	78		12		90		147		13		160
2045 - 2047	246		—		246		271		—		271
Total	$	2,447	$	2,223	$	4,670	$	4,357	$	3,440	$	7,797

Gross Par and Gross Debt Service Outstanding

Puerto Rico

Gross Par and Gross Debt Service Outstanding

	Gross Par Outstanding				Gross Debt Service Outstanding
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013
	(in millions)
Subject to the Now Voided Recovery Act (1)	$	3,058	$	3,279	$	5,326	$	5,748
Not subject to the Now Voided Recovery Act	2,977		3,517		4,748		5,599
Total	$	6,035	$	6,796	$	10,074	$	11,347

 ____________________

(1) On February 6, 2015, the U.S. District Court for the District of Puerto Rico ruled that the Recovery Act is preempted by the Federal Bankruptcy Code and is therefore void. On February 19, 2015, the Commonwealth appealed the ruling

Schedule of Geographic Exposure of Net Par Outstanding

The following table shows the Company’s exposure to general obligation bonds of Puerto Rico and various obligations of its related authorities and public corporations.

Puerto Rico

Net Par Outstanding

	As of December 31, 2014			As of December 31, 2013
	Total		Internal Rating	Total		Internal Rating
	(in millions)
Exposures subject to the Now Voided Recovery Act:
PRHTA (Transportation revenue)	$	844	BB-	$	872	BB-
PREPA	772		B-	860		BB-
Puerto Rico Aqueduct and Sewer Authority	384		BB-	384		BB-
PRHTA (Highway revenue)	273		BB	302		BB
Puerto Rico Convention Center District Authority	174		BB-	185		BB-
Puerto Rico Public Finance Corporation	—		—	44		B
Total	2,447			2,647
Exposures not subject to the Now Voided Recovery Act:
Commonwealth of Puerto Rico - General Obligation Bonds	1,672		BB	1,885		BB
Puerto Rico Municipal Finance Agency	399		BB-	450		BB-
Puerto Rico Sales Tax Financing Corporation	269		BBB	268		A-
Puerto Rico Public Buildings Authority	100		BB	139		BB
GDB	33		BB	33		BB
Puerto Rico Infrastructure Finance Authority	18		BB-	18		BB-
University of Puerto Rico	1		BB-	1		BB-
Total	2,492			2,794
Total net exposure to Puerto Rico	$	4,939		$	5,441