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Consolidated Variable Interest Entities (Tables)
9 Months Ended
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Consolidated FG VIE's
Effect of Consolidating FG VIEs on Net Income,
Cash Flows From Operating Activities and Shareholders’ Equity
 
 
Third Quarter
 
Nine Months
 
2015
 
2014
 
2015

2014
 
(in millions)
Net earned premiums
$
(6
)
 
$
(5
)
 
$
(16
)
 
$
(27
)
Net investment income
(3
)
 
(2
)
 
(9
)
 
(8
)
Net realized investment gains (losses)
6


0


9


(5
)
Fair value gains (losses) on FG VIEs
2

 
50

 
0

 
232

Bargain purchase gain

 

 
2

 

Other income (loss)
0

 
0

 
0

 
(2
)
Loss and LAE
11

 
14

 
18

 
21

Effect on income before tax
10

 
57

 
4

 
211

Less: tax provision (benefit)
4

 
20

 
1

 
74

Effect on net income (loss)
$
6

 
$
37

 
$
3

 
$
137

 
 
 
 
 
 
 
 
Effect on cash flows from operating activities
$
11

 
$
18

 
$
44


$
57

 
 
As of
September 30, 2015
 
As of
December 31, 2014
 
(in millions)
Effect on shareholders’ equity (decrease) increase
$
(38
)
 
$
(44
)
Number of FG VIEs Consolidated

 
Nine Months
 
2015
 
2014
 
 
Beginning of the period, December 31
32

 
40

Radian Asset Acquisition
4

 

Consolidated (1)
1

 
1

Deconsolidated (1)

 
(8
)
Matured

 
(2
)
End of the period, September 30
37

 
31


____________________
(1)
Net loss on consolidation was $26 million in Nine Months 2015, and net gain on deconsolidation was $120 million in Nine Months 2014, and recorded in “fair value gains (losses) on FG VIEs” in the consolidated statement of operations.
Consolidated FG VIEs
By Type of Collateral

 
As of September 30, 2015 (1)
 
As of December 31, 2014
 
Assets
 
Liabilities
 
Assets
 
Liabilities
 
(in millions)
With recourse:
 

 
 

 
 

 
 

U.S. RMBS first lien
$
713

 
$
572

 
$
632

 
$
581

U.S. RMBS second lien
208

 
295

 
238

 
327

Other
448

 
448

 
369

 
369

Total with recourse
1,369

 
1,315

 
1,239

 
1,277

Without recourse
178

 
167

 
163

 
142

Total
$
1,547

 
$
1,482

 
$
1,402

 
$
1,419


____________________
(1)
The September 30, 2015 amounts include $115 million of FG VIE assets and $111 million of FG VIE liabilities acquired from Radian Asset.