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Business Segments (Tables)

6 Months Ended

Jun. 30, 2011

		00000000		00000000		00000000		00000000		00000000		00000000			00000000
	Three Months Ended June 30, 2011
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues⁽¹⁾	$	143	$	81	$	7	$	-	$	24	$	-		$	255
Realized gains and other settlements on insured derivatives		1		(192)		-		-		-		-			(191)
Unrealized gains (losses) on insured derivatives		-		116		-		-		-		-			116
Net gains (losses) on financial instruments at fair value and foreign exchange		13		-		-		16		(132)		-			(103)
Net investment losses related to other-than-temporary impairments		-		(2)		-		-		(18)		-			(20)
Net gains (losses) on extinguishment of debt		-		-		-		-		-		-			-
Other net realized gains (losses)		-		-		-		-		-		-			-
Revenues of consolidated VIEs		-		37		-		-		4		-			41
Inter-segment revenues⁽²⁾		20		19		10		22		(4)		(67)			-

Total revenues		177		59		17		38		(126)		(67)			98
Loss and loss adjustment expense		(8)		58		-		-		-		-			50
Operating expenses		14		45		18		21		-		-			98
Interest expense		-		33		-		15		27		-			75
Expenses of consolidated VIEs		-		17		-		-		5		-			22
Inter-segment expenses⁽²⁾		27		31		2		3		9		(72)			-

Total expenses		33		184		20		39		41		(72)			245

Income (loss) before income taxes	$	144	$	(125)	$	(3)	$	(1)	$	(167)	$	5		$	(147)

Identifiable assets	$	8,083	$	23,592	$	52	$	671	$	5,640	$	(6,370)	⁽³⁾	$	31,668

(1)-	Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.

(2)-	Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.

(3)-	Consists of intercompany reinsurance balances, repurchase agreements and loans.

		00000000		00000000		00000000		00000000		00000000		00000000			00000000
	Three Months Ended June 30, 2010
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues⁽¹⁾	$	153	$	82	$	8	$	1	$	30	$	-		$	274
Realized gains and other settlements on insured derivatives		0		(64)		-		-		-		-			(64)
Unrealized gains (losses) on insured derivatives		0		1,538		-		-		-		-			1,538
Net gains (losses) on financial instruments at fair value and foreign exchange		1		(16)		0		8		5		-			(2)
Net investment losses related to other-than-temporary impairments		-		(1)		-		-		(12)		-			(13)
Net gains (losses) on extinguishment of debt		-		-		-		0		18		-			18
Other net realized gains (losses)		0		19		0		-		0		-			19
Revenues of consolidated VIEs		-		280		-		-		27		-			307
Inter-segment revenues⁽²⁾		25		26		9		23		(5)		(78)			-

Total revenues		179		1,864		17		32		63		(78)			2,077
Loss and loss adjustment expense		11		(84)		-		-		-		-			(73)
Operating expenses		11		33		16		21		2		-			83
Interest expense		-		34		-		16		31		-			81
Expenses of consolidated VIEs		-		15		-		-		3		-			18
Inter-segment expenses⁽²⁾		29		38		1		4		16		(88)			-

Total expenses		51		36		17		41		52		(88)			109

Income (loss) before income taxes	$	128	$	1,828	$	-	$	(9)	$	11	$	10		$	1,968

Identifiable assets	$	8,374	$	24,342	$	51	$	1,317	$	7,389	$	(8,009)	⁽³⁾	$	33,464

(1)-	Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.

(2)-	Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.

(3)-	Consists of intercompany reinsurance balances, repurchase agreements and loans.

The following tables provide the Company's segment results for the six months ended June 30, 2011 and 2010:


	Six Months Ended June 30, 2011
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues⁽¹⁾	$	274	$	183	$	13	$	1	$	49	$	-		$	520
Realized gains and other settlements on insured derivatives		1		(547)		-		-		-		-			(546)
Unrealized gains (losses) on insured derivatives		-		(1,307)		-		-		-		-			(1,307)
Net gains (losses) on financial instruments at fair value and foreign exchange		17		33		-		39		(216)		-			(127)
Net investment losses related to other-than-temporary impairments		-		(4)		-		-		(29)		-			(33)
Net gains (losses) on extinguishment of debt		-		-		-		-		24		2			26
Other net realized gains (losses)		-		1		-		-		4		-			5
Revenues of consolidated VIEs		-		(67)		-		-		19		-			(48)
Inter-segment revenues⁽²⁾		37		30		19		44		(8)		(122)			-

Total revenues		329		(1,678)		32		84		(157)		(120)			(1,510)
Loss and loss adjustment expense		(5)		19		-		-		-		-			14
Operating expenses		26		86		33		43		1		-			189
Interest expense		-		66		-		30		54		-			150
Expenses of consolidated VIEs		-		37		-		-		10		-			47
Inter-segment expenses⁽²⁾		53		60		3		7		18		(141)			-

Total expenses		74		268		36		80		83		(141)			400

Income (loss) before income taxes	$	255	$	(1,946)	$	(4)	$	4	$	(240)	$	21		$	(1,910)

Identifiable assets	$	8,083	$	23,592	$	52	$	671	$	5,640	$	(6,370)	⁽³⁾	$	31,668

(1)-	Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.

(2)-	Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.

(3)-	Consists of intercompany reinsurance balances, repurchase agreements and loans.


	Six Months Ended June 30, 2010
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues⁽¹⁾	$	317	$	280	$	14	$	2	$	62	$	-		$	675
Realized gains and other settlements on insured derivatives		0		(98)		-		-		-		-			(98)
Unrealized gains (losses) on insured derivatives		0		(674)		-		-		-		-			(674)
Net gains (losses) on financial instruments at fair value and foreign exchange		3		(14)		1		(18)		(20)		-			(48)
Net investment losses related to other-than-temporary impairments		-		(4)		-		-		(39)		-			(43)
Net gains (losses) on extinguishment of debt		-		-		-		0		18		-			18
Other net realized gains (losses)		0		19		0		-		0		-			19
Revenues of consolidated VIEs		-		330		-		-		42		-			372
Inter-segment revenues⁽²⁾		52		51		19		50		(10)		(162)			-

Total revenues		372		(110)		34		34		53		(162)			221
Loss and loss adjustment expense		36		106		-		-		-		-			142
Operating expenses		19		72		28		46		3		-			168
Interest expense		-		68		-		33		64		-			165
Expenses of consolidated VIEs		-		30		-		-		7		-			37
Inter-segment expenses⁽²⁾		57		74		3		6		34		(174)			-

Total expenses		112		350		31		85		108		(174)			512

Income (loss) before income taxes	$	260	$	(460)	$	3	$	(51)	$	(55)	$	12		$	(291)

Identifiable assets	$	8,374	$	24,342	$	51	$	1,317	$	7,389	$	(8,009)	⁽³⁾	$	33,464

(1)-	Represents the sum of third-party financial guarantee net premiums earned, net investment income, insurance-related fees and reimbursements, investment management fees and other fees.

(2)-	Represents intercompany premium income and expense, intercompany asset management fees and expenses, and intercompany interest income and expense pertaining to intercompany receivables and payables.

(3)-	Consists of intercompany reinsurance balances, repurchase agreements and loans.

Premiums Earned On Financial Guarantees And Insured Derivatives By Geographic Location Of Risk


	Three Months Ended June 30,				Six Months Ended June 30,
In millions	2011		2010		2011		2010
Total premiums earned:
United States	$	130	$	141	$	252	$	283
United Kingdom		10		8		17		21
Europe (excluding United Kingdom)		9		7		21		12
Internationally diversified		9		9		18		18
Central and South America		10		11		19		21
Asia		5		3		12		7
Other		3		3		6		6

Total	$	176	$	182	$	345	$	368

Segment Reporting, Wind-down Operations

		00000000		00000000		00000000		00000000
	Three Months Ended June 30, 2011
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues⁽¹⁾	$	23	$	1	$	-	$	24
Net gains (losses) on financial instruments at fair value and foreign exchange		(132)		-		-		(132)
Net investment losses related to other-than-temporary impairments		(18)		-		-		(18)
Revenues of consolidated VIEs		1		3		-		4
Inter-segment revenues⁽²⁾		(3)		(1)		-		(4)

Total revenues		(129)		3		-		(126)
Operating expenses		1		(1)		-		-
Interest expense		28		(1)		-		27
Expenses of consolidated VIEs		-		5		-		5
Inter-segment expenses⁽²⁾		8		1		-		9

Total expenses		37		4		-		41

Income (loss) before income taxes	$	(166)	$	(1)	$	-	$	(167)

Identifiable assets	$	4,481	$	1,564	$	(405)	$	5,640

(1) - Represents the sum of third-party interest income, investment management services fees and other fees.

(2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt.


	Three Months Ended June 30, 2010
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues⁽¹⁾	$	29	$	1	$	-	$	30
Net gains (losses) on financial instruments at fair value and foreign exchange		5		-		-		5
Net investment losses related to other-than-temporary impairments		(12)		-		-		(12)
Net gains (losses) on extinguishment of debt		18		-		-		18
Other net realized gains (losses)		0		-		-		0
Revenues of consolidated VIEs		9		18		-		27
Inter-segment revenues⁽²⁾		(4)		(1)		0		(5)

Total revenues		45		18		0		63
Operating expenses		2		-		-		2
Interest expense		31		-		-		31
Expenses of consolidated VIEs		-		3		-		3
Inter-segment expenses⁽²⁾		14		2		0		16

Total expenses		47		5		0		52

Income (loss) before income taxes	$	(2)	$	13	$	-	$	11

Identifiable assets	$	5,740	$	1,880	$	(231)	$	7,389

(1) - Represents the sum of third-party interest income, investment management services fees and other fees.

(2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt.

The following tables summarize the segments within the wind-down operations for the six months ended June 30, 2011 and 2010:


	Six Months Ended June 30, 2011
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues⁽¹⁾	$	47	$	2	$	-	$	49
Net gains (losses) on financial instruments at fair value and foreign exchange		(216)		-		-		(216)
Net investment losses related to other-than-temporary impairments		(29)		-		-		(29)
Net gains (losses) on extinguishment of debt		24		-		-		24
Other net realized gains (losses)		4		-		-		4
Revenues of consolidated VIEs		11		8		-		19
Inter-segment revenues⁽²⁾		(6)		(2)		-		(8)

Total revenues		(165)		8		-		(157)
Operating expenses		2		(1)		-		1
Interest expense		55		(1)		-		54
Expenses of consolidated VIEs		-		10		-		10
Inter-segment expenses⁽²⁾		16		2		-		18

Total expenses		73		10		-		83

Income (loss) before income taxes	$	(238)	$	(2)	$	-	$	(240)

Identifiable assets	$	4,481	$	1,564	$	(405)	$	5,640

(1) - Represents the sum of third-party interest income, investment management services fees and other fees.

(2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt.


	Six Months Ended June 30, 2010
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues⁽¹⁾	$	60	$	2	$	-	$	62
Net gains (losses) on financial instruments at fair value and foreign exchange		(20)		-		-		(20)
Net investment losses related to other-than-temporary impairments		(39)		-		-		(39)
Net gains (losses) on extinguishment of debt		18		-		-		18
Other net realized gains (losses)		0		-		-		0
Revenues of consolidated VIEs		21		21		-		42
Inter-segment revenues⁽²⁾		(7)		(2)		(1)		(10)

Total revenues		33		21		(1)		53
Operating expenses		3		0		-		3
Interest expense		64		-		-		64
Expenses of consolidated VIEs		-		7		-		7
Inter-segment expenses⁽²⁾		32		3		(1)		34

Total expenses		99		10		(1)		108

Income (loss) before income taxes	$	(66)	$	11	$	-	$	(55)

Identifiable assets	$	5,740	$	1,880	$	(231)	$	7,389

(1) - Represents the sum of third-party interest income, investment management services fees and other fees.

(2) - Represents intercompany asset management fees and expenses plus intercompany interest income and expense pertaining to intercompany debt.

- Definition

Tabular disclosure of all significant reconciling items in the reconciliation of total profit or loss from reportable segments, to the entity's consolidated income before income taxes, extraordinary items, and discontinued operations.

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