Business Segments (Tables)

9 Months Ended

Sep. 30, 2019

Text Block [Abstract]

Summary of company's segment results

	Three Months Ended September 30, 2019
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues(1)	$	30	$	6	$	11	$	-		$	47
Net gains (losses) on financial instruments at fair value and foreign exchange		78		(20)		(14)		-			44
Net gains (losses) on extinguishment of debt		-		(1)		-		-			(1)
Other net realized gains (losses)		-		(1)		1		-			-
Revenues of consolidated VIEs		32		-		50		-			82
Inter-segment revenues(2)		7		15		6		(28)			-
Total revenues		147		(1)		54		(28)			172
Losses and loss adjustment		(90)		-		77		-			(13)
Operating		4		15		7		-			26
Interest		-		17		33		-			50
Expenses of consolidated VIEs		-		-		20		-			20
Inter-segment expenses(2)		14		6		8		(28)			-
Total expenses		(72)		38		145		(28)			83
Income (loss) before income taxes	$	219	$	(39)	$	(91)	$	-		$	89
Identifiable assets	$	4,271	$	939	$	4,678	$	(2,282)	(3)	$	7,606

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

(2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables.

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

	Three Months Ended September 30, 2018
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues(1)	$	45	$	7	$	58	$	-		$	110
Net change in fair value of insured derivatives		-		-		(1)		-			(1)
Net gains (losses) on financial instruments at fair value and foreign exchange		1		17		(13)		-			5
Net investment losses related to other-than-temporary impairments		(1)		-		-		-			(1)
Net gains (losses) on extinguishment of debt		-		3		-		-			3
Other net realized gains (losses)		-		-		1		-			1
Revenues of consolidated VIEs		-		-		(12)		-			(12)
Inter-segment revenues(2)		7		11		6		(24)			-
Total revenues		52		38		39		(24)			105
Losses and loss adjustment		48		-		(2)		-			46
Operating		5		13		9		-			27
Interest		-		20		32		-			52
Expenses of consolidated VIEs		-		-		25		-			25
Inter-segment expenses(2)		10		5		9		(24)			-
Total expenses		63		38		73		(24)			150
Income (loss) before income taxes	$	(11)	$	-	$	(34)	$	-		$	(45)
Identifiable assets	$	4,453	$	1,062	$	5,058	$	(2,180)	(3)	$	8,393

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

(2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables.

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

The following tables provide the Company’s segment results for the nine months ended September 30, 2019 and 2018:

	Nine Months Ended September 30, 2019
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues(1)	$	106	$	21	$	28	$	-		$	155
Net change in fair value of insured derivatives		-		-		13		-			13
Net gains (losses) on financial instruments at fair value and foreign exchange		135		(71)		(24)		-			40
Net investment losses related to other-than-temporary impairments		(37)		-		-		-			(37)
Net gains (losses) on extinguishment of debt		-		(1)		-		-			(1)
Other net realized gains (losses)		1		(2)		3		-			2
Revenues of consolidated VIEs		38		-		41		1			80
Inter-segment revenues(2)		22		48		15		(85)			-
Total revenues		265		(5)		76		(84)			252
Losses and loss adjustment		(34)		-		123		-			89
Operating		8		53		16		-			77
Interest		-		56		98		-			154
Expenses of consolidated VIEs		-		-		69		-			69
Inter-segment expenses(2)		41		17		26		(84)			-
Total expenses		15		126		332		(84)			389
Income (loss) before income taxes	$	250	$	(131)	$	(256)	$	-		$	(137)
Identifiable assets	$	4,271	$	939	$	4,678	$	(2,282)	(3)	$	7,606

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

(2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables.

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

	Nine Months Ended September 30, 2018
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues(1)	$	139	$	20	$	98	$	-		$	257
Net change in fair value of insured derivatives		-		-		(13)		-			(13)
Net gains (losses) on financial instruments at fair value and foreign exchange		(13)		48		(17)		-			18
Net investment losses related to other-than-temporary impairments		(3)		-		-		-			(3)
Net gains (losses) on extinguishment of debt		-		3		-		-			3
Other net realized gains (losses)		-		(2)		2		-			-
Revenues of consolidated VIEs		-		-		(72)		-			(72)
Inter-segment revenues(2)		20		36		18		(74)			-
Total revenues		143		105		16		(74)			190
Losses and loss adjustment		184		-		(7)		-			177
Operating		14		39		21		-			74
Interest		-		60		95		-			155
Expenses of consolidated VIEs		-		-		71		-			71
Inter-segment expenses(2)		34		14		27		(75)			-
Total expenses		232		113		207		(75)			477
Income (loss) before income taxes	$	(89)	$	(8)	$	(191)	$	1		$	(287)
Identifiable assets	$	4,453	$	1,062	$	5,058	$	(2,180)	(3)	$	8,393

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

(2) - Represents intercompany premium income and expense and intercompany interest income and expense pertaining to intercompany receivables and payables.

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