Business Segments (Tables)

9 Months Ended

Sep. 30, 2011

Business Segments [Abstract]

Summary Of Company's Operations

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

	Three Months Ended September 30, 2011
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues(1)	$	181	$	72	$	9	$	1	$	21	$	-		$	284
Realized gains and other settlements on insured derivatives		-		(53)		-		-		-		-			(53)
Unrealized gains (losses) on insured derivatives		-		776		-		-		-		-			776
Net gains (losses) on financial instruments at fair value and foreign exchange		6		(12)		-		8		11		-			13
Net investment losses related to other-than-temporary impairments		-		-		-		(10)		(1)		-			(11)
Other net realized gains (losses)		-		1		-		-		-		-			1
Revenues of consolidated VIEs		-		105		-		-		5		-			110
Inter-segment revenues(2)		21		25		5		22		(4)		(69)			-
Total revenues		208		914		14		21		32		(69)			1,120
Loss and loss adjustment expense		10		180		-		-		-		-			190
Operating expenses		10		38		14		24		2		-			88
Interest expense		-		33		-		14		28		-			75
Expenses of consolidated VIEs		-		17		-		-		5		-			22
Inter-segment expenses(2)		31		33		1		4		6		(75)			-
Total expenses		51		301		15		42		41		(75)			375
Income (loss) before income taxes	$	157	$	613	$	(1)	$	(21)	$	(9)	$	6		$	745
Identifiable assets	$	8,015	$	21,251	$	53	$	652	$	5,556	$	(6,157)	(3)	$	29,370

(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.

	Three Months Ended September 30, 2010
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues(1)	$	143	$	89	$	7	$	1	$	25	$	-		$	265
Realized gains and other settlements on insured derivatives		0		552		-		-		-		-			552
Unrealized gains (losses) on insured derivatives		0		(1,044)		-		-		-		-			(1,044)
Net gains (losses) on financial instruments at fair value and foreign exchange		45		145		1		(62)		(117)		-			12
Net investment losses related to other-than-temporary impairments		-		0		-		-		0		-			0
Net gains (losses) on extinguishment of debt		-		-		-		0		10		-			10
Other net realized gains (losses)		-		(1)		-		-		-		-			(1)
Revenues of consolidated VIEs		-		(19)		-		-		34		-			15
Inter-segment revenues(2)		18		19		10		24		(5)		(66)			-
Total revenues		206		(259)		18		(37)		(53)		(66)			(191)
Loss and loss adjustment expense		6		(26)		-		-		-		-			(20)
Operating expenses		11		31		17		23		2		-			84
Interest expense		-		34		-		16		31		-			81
Expenses of consolidated VIEs		-		15		-		-		5		-			20
Inter-segment expenses(2)		22		28		2		4		13		(69)			-
Total expenses		39		82		19		43		51		(69)			165
Income (loss) before income taxes	$	167	$	(341)	$	(1)	$	(80)	$	(104)	$	3		$	(356)
Identifiable assets	$	8,616	$	24,321	$	51	$	1,308	$	7,008	$	(8,032)	(3)	$	33,272

(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 nine months ended September 30, 2011 and 2010:

	Nine Months Ended September 30, 2011
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues(1)	$	455	$	253	$	22	$	2	$	70	$	-		$	802
Realized gains and other settlements on insured derivatives		2		(601)		-		-		-		-			(599)
Unrealized gains (losses) on insured derivatives		-		(531)		-		-		-		-			(531)
Net gains (losses) on financial instruments at fair value and foreign exchange		24		21		-		47		(206)		-			(114)
Net investment losses related to other-than-temporary impairments		-		(4)		-		(10)		(30)		-			(44)
Net gains (losses) on extinguishment of debt		-		-		-		-		24		2			26
Other net realized gains (losses)		-		2		-		-		4		-			6
Revenues of consolidated VIEs		-		39		-		-		25		-			64
Inter-segment revenues(2)		56		55		24		66		(12)		(189)			-
Total revenues		537		(766)		46		105		(125)		(187)			(390)
Loss and loss adjustment expense		4		200		-		-		-		-			204
Operating expenses		36		124		48		67		2		-			277
Interest expense		-		99		-		44		82		-			225
Expenses of consolidated VIEs		-		54		-		-		15		-			69
Inter-segment expenses(2)		84		91		4		11		24		(214)			-
Total expenses		124		568		52		122		123		(214)			775
Income (loss) before income taxes	$	413	$	(1,334)	$	(6)	$	(17)	$	(248)	$	27		$	(1,165)
Identifiable assets	$	8,015	$	21,251	$	53	$	652	$	5,556	$	(6,157)	(3)	$	29,370

(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.

	Nine Months Ended September 30, 2010
In millions	U.S. Public Finance Insurance		Structured Finance and International Insurance		Advisory Services		Corporate		Wind-down Operations		Eliminations			Consolidated
Revenues(1)	$	459	$	370	$	21	$	3	$	87	$	-		$	940
Realized gains and other settlements on insured derivatives		0		454		-		-		-		-			454
Unrealized gains (losses) on insured derivatives		0		(1,717)		-		-		-		-			(1,717)
Net gains (losses) on financial instruments at fair value and foreign exchange		49		131		2		(80)		(138)		-			(36)
Net investment losses related to other-than-temporary impairments		-		(4)		-		-		(39)		-			(43)
Net gains (losses) on extinguishment of debt		-		-		-		0		28		-			28
Other net realized gains (losses)		0		18		0		0		0		-			18
Revenues of consolidated VIEs		-		310		-		-		76		-			386
Inter-segment revenues(2)		66		69		29		74		(15)		(223)			-
Total revenues		574		(369)		52		(3)		(1)		(223)			30
Loss and loss adjustment expense		42		80		-		-		-		-			122
Operating expenses		31		102		45		69		4		-			251
Interest expense		-		102		-		49		95		-			246
Expenses of consolidated VIEs		-		46		-		-		12		-			58
Inter-segment expenses(2)		74		103		5		10		47		(239)			-
Total expenses		147		433		50		128		158		(239)			677
Income (loss) before income taxes	$	427	$	(802)	$	2	$	(131)	$	(159)	$	16		$	(647)
Identifiable assets	$	8,616	$	24,321	$	51	$	1,308	$	7,008	$	(8,032)	(3)	$	33,272

(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.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
In millions	2011		2010		2011		2010
Total premiums earned:
United States	$	161	$	133	$	413	$	416
United Kingdom		10		5		27		26
Europe (excluding United Kingdom)		4		4		25		17
Internationally diversified		9		11		27		29
Central and South America		9		10		28		30
Asia		2		4		14		11
Other		4		2		10		8
Total	$	199	$	169	$	544	$	537

Summary Of Segments Within Wind-Down Operations

The following tables provide the results of the segments within the wind-down operations for the three months ended September 30, 2011 and 2010:

	Three Months Ended September 30, 2011
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues(1)	$	23	$	(2)	$	-	$	21
Net gains (losses) on financial instruments at fair value and foreign exchange		11		-		-		11
Net investment losses related to other-than-temporary impairments		(1)		-		-		(1)
Revenues of consolidated VIEs		(2)		7		-		5
Inter-segment revenues(2)		(3)		(1)		-		(4)
Total revenues		28		4		-		32
Operating expenses		-		2		-		2
Interest expense		27		1		-		28
Expenses of consolidated VIEs		-		5		-		5
Inter-segment expenses(2)		9		(3)		-		6
Total expenses		36		5		-		41
Income (loss) before income taxes	$	(8)	$	(1)	$	-	$	(9)
Identifiable assets	$	3,982	$	1,574	$	-	$	5,556

(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.

	Three Months Ended September 30, 2010
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues(1)	$	24	$	1	$	-	$	25
Net gains (losses) on financial instruments at fair value and foreign exchange		(117)		-		-		(117)
Net investment losses related to other-than-temporary impairments		0		-		-		0
Net gains (losses) on extinguishment of debt		10		-		-		10
Revenues of consolidated VIEs		15		19		-		34
Inter-segment revenues(2)		(4)		(1)		0		(5)
Total revenues		(72)		19		0		(53)
Operating expenses		1		1		-		2
Interest expense		31		-		-		31
Expenses of consolidated VIEs		-		5		-		5
Inter-segment expenses(2)		14		(1)		0		13
Total expenses		46		5		0		51
Income (loss) before income taxes	$	(118)	$	14	$	-	$	(104)
Identifiable assets	$	5,539	$	1,683	$	(214)	$	7,008

(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.

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

	Nine Months Ended September 30, 2011
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues(1)	$	70	$	-	$	-	$	70
Net gains (losses) on financial instruments at fair value and foreign exchange		(206)		-		-		(206)
Net investment losses related to other-than-temporary impairments		(30)		-		-		(30)
Net gains (losses) on extinguishment of debt		24		-		-		24
Other net realized gains (losses)		4		-		-		4
Revenues of consolidated VIEs		10		15		-		25
Inter-segment revenues(2)		(9)		(3)		-		(12)
Total revenues		(137)		12		-		(125)
Operating expenses		2		-		-		2
Interest expense		82		-		-		82
Expenses of consolidated VIEs		-		15		-		15
Inter-segment expenses(2)		25		(1)		-		24
Total expenses		109		14		-		123
Income (loss) before income taxes	$	(246)	$	(2)	$	-	$	(248)
Identifiable assets	$	3,982	$	1,574	$	-	$	5,556

(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.

	Nine Months Ended September 30, 2010
In millions	Asset / Liability Products		Conduits		Eliminations		Total Wind- down Operations
Revenues(1)	$	84	$	3	$	-	$	87
Net gains (losses) on financial instruments at fair value and foreign exchange		(138)		-		-		(138)
Net investment losses related to other-than-temporary impairments		(39)		-		-		(39)
Net gains (losses) on extinguishment of debt		28		-		-		28
Other net realized gains (losses)		0		-		-		0
Revenues of consolidated VIEs		36		40		-		76
Inter-segment revenues(2)		(11)		(3)		(1)		(15)
Total revenues		(40)		40		(1)		(1)
Operating expenses		3		1		-		4
Interest expense		95		-		-		95
Expenses of consolidated VIEs		-		12		-		12
Inter-segment expenses(2)		46		2		(1)		47
Total expenses		144		15		(1)		158
Income (loss) before income taxes	$	(184)	$	25	$	-	$	(159)
Identifiable assets	$	5,539	$	1,683	$	(214)	$	7,008

(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.