XML 115 R33.htm IDEA: XBRL DOCUMENT

Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Effect of Consolidating FG VIEs



	Third Quarter						Nine Months
	2019			2018			2019			2018
	(in millions)
Net earned premiums	$	(2	)	$	(3	)	$	(16	)	$	(9	)
Net investment income	(1		)	(1		)	(3		)	(3		)
Fair value gains (losses) on FG VIEs (1)	4			5			42			11
Loss and LAE	(3		)	(3		)	(18		)	—
Effect on income before tax	(2		)	(2		)	5			(1		)
Less: Tax provision (benefit)	—			—			1			—
Effect on net income (loss)	$	(2	)	$	(2	)	$	4		$	(1	)

Effect on OCI	$	1		$	(2	)	$	(1	)	$	—

Effect on cash flows from operating activities	$	1		$	1		$	—		$	7

____________________


(1)	See condensed consolidated statements of comprehensive income and Note 14, Shareholders' Equity, for information on changes in fair value of the FG VIEs’ liabilities with recourse that are attributable to changes in the Company's own credit risk.

The consolidation of FG VIEs increased shareholders' equity by $4 million as of September 30, 2019 and $1 million as of December 31, 2018.



	As of September 30, 2019		As of December 31, 2018
	(in millions)
Excess of unpaid principal over fair value of:
FG VIEs’ assets	$	279	$	350
FG VIEs’ liabilities with recourse	21		48
FG VIEs’ liabilities without recourse	19		28
Unpaid principal balance for FG VIEs’ assets that were 90 days or more past due	61		71
Unpaid principal for FG VIEs’ liabilities with recourse (1)	409		565

____________________

(1)

FG VIEs’ liabilities with recourse will mature at various dates ranging from 2019 to 2038.



	As of September 30, 2019				As of December 31, 2018
	Assets		Liabilities		Assets		Liabilities
	(in millions)
With recourse:
U.S. RMBS first lien	$	289	$	314	$	299	$	326
U.S. RMBS second lien	75		74		115		137
Manufactured housing	—		—		53		54
Total with recourse	364		388		467		517
Without recourse	105		105		102		102
Total	$	469	$	493	$	569	$	619

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details