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Reinsurance and Other Monoline Exposures (Tables)
 6 Months Ended
Jun. 30, 2016
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
Second Quarter
 
Six Months
 
2016
 
2015
 
2016

2015
 
(in millions)
Premiums Written:
 
 
 
 
 
 
 
Direct
$
42

 
$
23

 
$
63

 
$
52

Assumed (1)
(6
)
 
(1
)
 
(8
)
 
2

Ceded
0

 
2

 
(17
)
 
2

Net
$
36

 
$
24

 
$
38

 
$
56

Premiums Earned:
 

 
 

 
 
 
 
Direct
$
220

 
$
224

 
$
410

 
$
372

Assumed
5

 
12

 
13

 
22

Ceded
(11
)
 
(17
)
 
(26
)
 
(33
)
Net
$
214

 
$
219

 
$
397

 
$
361

Loss and LAE:
 

 
 

 
 
 
 
Direct
$
101

 
$
186

 
$
210

 
$
212

Assumed
11

 
19

 
(3
)
 
12

Ceded
(10
)
 
(17
)
 
(15
)
 
(18
)
Net
$
102

 
$
188

 
$
192

 
$
206


 ____________________
(1)
Negative assumed premiums written were due to changes in expected debt service schedules.
Exposure by Reinsurer
 
 
Ratings at
 
Par Outstanding (1)
 
 
August 1, 2016
 
As of June 30, 2016
Reinsurer
 
Moody’s
Reinsurer
Rating
 
S&P
Reinsurer
Rating
 
Ceded Par
Outstanding
 
Second-to-
Pay Insured
Par
Outstanding
 
Assumed Par
Outstanding
 
 
(dollars in millions)
American Overseas Reinsurance Company Limited (2)
 
WR (3)

WR

$
4,511


$
—


$
30

Tokio Marine & Nichido Fire Insurance Co., Ltd. (2)
 
Aa3 (4)

A+ (4)

3,887


—


—

Syncora (2)
 
WR

WR

2,269


1,184


662

Mitsui Sumitomo Insurance Co. Ltd. (2)
 
A1

A+ (4)

1,513


—


—

ACA Financial Guaranty Corp.
 
NR (5)

WR

657


33


—

Ambac
 
WR

WR

115


3,541


8,862

National (6)
 
A3

AA-

—


4,967


4,960

MBIA
 
(7)

(7)

—


1,357


414

FGIC
 
(8)

(8)

—


1,341


593

Ambac Assurance Corp. Segregated Account
 
NR

NR

—


81


645

CIFG (9)
 
WR

WR

—


43


2,488

Other (2)
 
Various

Various

72


715


126

Total
 
 
 
 
 
$
13,024

 
$
13,262

 
$
18,780

____________________
(1)
Includes par related to insured credit derivatives.   
(2)
The total collateral posted by all non-affiliated reinsurers required or agreeing to post collateral as of June 30, 2016 was approximately $438 million.
(3)    Represents “Withdrawn Rating.”  
(4)    The Company benefits from trust arrangements that satisfy the triple-A credit requirement of S&P and/or Moody’s.
(5)    Represents “Not Rated.”
(6)
Rated AA+ by KBRA.
(7)
MBIA includes subsidiaries MBIA Insurance Corp. rated CCC by S&P and Caa1 by Moody's and MBIA U.K. Insurance Ltd. rated BB by S&P and Ba2 by Moody’s.
(8)
FGIC includes subsidiaries Financial Guaranty Insurance Company and FGIC UK Limited both of which had their ratings withdrawn by rating agencies.
(9)
On July 1, 2016, AGC acquired all of the issued and outstanding capital stock of CIFG Holding Inc., the parent of financial guaranty insurer CIFG. On July 5, 2016, CIFG merged with and into AGC, with AGC as the surviving company.
Amounts Due (To) From Reinsurers
Amounts Due (To) From Reinsurers
As of June 30, 2016 

 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss to be Paid
 
Ceded
Expected
Loss to be Paid
 
(in millions)
American Overseas Reinsurance Company Limited
$
—

 
$
(5
)
 
$
—

 
$
29

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

 
(11
)
 
—

 
46

Syncora
13

 
(20
)
 
—

 
8

Mitsui Sumitomo Insurance Co. Ltd.
—

 
(2
)
 
—

 
19

Ambac
36

 
—

 
(3
)
 
—

National
6

 
—

 
(6
)
 
—

MBIA
4

 
—

 
(9
)
 
—

FGIC
4

 
—

 
(17
)
 
—

Ambac Assurance Corp. Segregated Account
7

 
—

 
(45
)
 
—

CIFG (1)
—

 
—

 
(71
)
 
—

Other
—

 
(12
)
 
—

 
0

Total
$
70

 
$
(50
)
 
$
(151
)
 
$
102


____________________
(1)
On July 1, 2016, AGC acquired all of the issued and outstanding capital stock of CIFG Holding Inc., the parent of financial guaranty insurer CIFG. On July 5, 2016, CIFG merged with and into AGC, with AGC as the surviving company. See Note 2, Acquisitions, for additional information