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Reinsurance and Other Monoline Exposures (Tables)
 9 Months Ended
Sep. 30, 2017
Insurance [Abstract]  
Effects of Reinsurance on Statement of Operations
Effect of Reinsurance on Statement of Operations

 
Third Quarter
 
Nine Months
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Premiums Written:
 
 
 
 
 
 
 
Direct
$
46

 
$
17

 
$
227

 
$
80

Assumed (1)
(1
)
 
(1
)
 
8

 
(9
)
Ceded (2)
27

 
0

 
37

 
(17
)
Net
$
72

 
$
16

 
$
272

 
$
54

Premiums Earned:
 
 
 
 
 
 
 
Direct
$
186

 
$
237

 
$
516

 
$
647

Assumed
6

 
6

 
20

 
19

Ceded
(6
)
 
(12
)
 
(24
)
 
(38
)
Net
$
186

 
$
231

 
$
512

 
$
628

Loss and LAE:
 
 
 
 
 
 
 
Direct
$
231

 
$
7

 
$
377

 
$
217

Assumed
(1
)
 
(1
)
 
(1
)
 
(4
)
Ceded
(7
)
 
(15
)
 
(22
)
 
(30
)
Net
$
223

 
$
(9
)
 
$
354

 
$
183

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

(2)    Positive ceded premiums written were due to commutations and changes in expected debt service schedules.
Amounts Due (To) From Reinsurers
Amounts Due (To) From All Reinsurers
As of September 30, 2017 

 
Assumed
Premium, net
of Commissions
 
Ceded
Premium, net
of Commissions
 
Assumed
Expected
Loss to be Paid
 
Ceded
Expected
Loss to be Paid
 
(in millions)
Reinsurers rated investment grade
$
5

 
$
—

 
$
1

 
$
—

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
 
American Overseas Reinsurance Company Limited
—

 
(4
)
 
—

 
36

Syncora
13

 
(18
)
 
—

 
(11
)
Ambac
31

 
—

 
1

 
—

MBIA
0

 
—

 
(3
)
 
—

Financial Guaranty Insurance Company and FGIC UK Limited
3

 
—

 
(16
)
 
—

Ambac Assurance Corp. Segregated Account
6

 
—

 
(46
)
 
—

Subtotal
53

 
(22
)
 
(64
)
 
25

Other
0

 
(3
)
 
—

 
—

Total
$
58

 
$
(25
)
 
$
(63
)
 
$
25
Schedule of Commutations and Cancellations of Reinsurance Contracts
Commutations of Ceded Reinsurance Contracts 

 
Third Quarter
 
Nine Months
 
2017
 
2016
 
2017
 
2016
 
(in millions)
Increase (decrease) in net unearned premium reserve
$
62

 
$
—

 
$
80

 
$
—

Increase (decrease) in net par outstanding
3,455

 
28

 
4,628

 
28

Commutation gains (losses)
255

 
8

 
328

 
8
Exposure by Reinsurer

 
 
Par Outstanding
 
 
As of September 30, 2017
Reinsurer
 
Ceded Par
Outstanding (1)
 
Assumed Par
Outstanding
 
Second-to-
Pay Insured Par
Outstanding (2)
 
 
(in millions)
Reinsurers rated investment grade:
 
 
 
 
 
 
National
 
$
—

 
$
3,245

 
$
2,730

Subtotal
 
—

 
3,245

 
2,730

Reinsurers rated BIG or not rated:
 
 
 
 
 
 
American Overseas Reinsurance Company Limited (3)
 
2,445

 
—

 
—

Syncora (3)
 
1,994

 
674

 
1,156

ACA Financial Guaranty Corp.
 
208

 
—

 
10

Ambac and Ambac Assurance UK Limited
 
112

 
4,902

 
1,927

MBIA
 
—

 
137

 
565

Financial Guaranty Insurance Company and FGIC UK Limited
 
—

 
275

 
821

Ambac Assurance Corp. Segregated Account
 
—

 
567

 
51

Subtotal
 
4,759

 
6,555

 
4,530

Other (3)
 
52

 
111

 
410

Total
 
$
4,811

 
$
9,911

 
$
7,670

____________________
(1)
Of the total ceded par to reinsurers rated BIG or not rated, $305 million is rated BIG.  

(2)
The par on second-to-pay exposure where the primary insurer and underlying transaction rating are both BIG, and/or not rated, is $774 million.

(3)
The total collateral posted by all non-affiliated reinsurers required to post, or that had agreed to post, collateral as of September 30, 2017 was approximately $123 million.