Business Segments (Tables)

12 Months Ended

Dec. 31, 2019

Text Block [Abstract]

Summary of company's segment results

The following tables provide the Company’s segment results for the years ended December 31, 2019, 2018 and 2017:

	Year Ended December 31, 2019
	U.S.						International
	Public						and Structured
	Finance						Finance
In millions	Insurance			Corporate			Insurance			Eliminations			Consolidated
Revenues(1)	$	139		$	27		$	34		$	—		$	200
Net change in fair value of insured derivatives		—			—			15			—			15
Net gains (losses) on financial instruments at fair value and foreign exchange		139			(54	)		(33	)		—			52
Net investment losses related to other-than-temporary impairments		(67	)		—			—			—			(67	)
Net gains (losses) on extinguishment of debt		—			(1	)		—			—			(1	)
Other net realized gains (losses)		2			(2	)		4			—			4
Revenues of consolidated VIEs		21			1			55			—			77
Inter-segment revenues(2)		28			62			21			(111	)		—
Total revenues		262			33			96			(111	)		280
Losses and loss adjustment		53			—			189			—			242
Operating		13			69			21			—			103
Interest		—			73			128			—			201
Expenses of consolidated VIEs		—			—			91			—			91
Inter-segment expenses(2)		52			23			36			(111	)		—
Total expenses		118			165			465			(111	)		637
Income (loss) before income taxes	$	144		$	(132	)	$	(369	)	$	—		$	(357	)
Identifiable assets	$	4,019		$	1,041		$	4,504		$	(2,280	)(3)	$	7,284

(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.

	Year Ended December 31, 2018
In millions	U.S.  Public  Finance Insurance			Corporate			International  and Structured Finance Insurance			Eliminations			Consolidated
Revenues(1)	$	178		$	31		$	108		$	—		$	317
Net change in fair value of insured derivatives		—			—			(25	)		—			(25	)
Net gains (losses) on financial instruments at fair value and foreign exchange		(20	)		22			(19	)		—			(17	)
Net investment losses related to other-than-temporary impairments		(5	)		—			—			—			(5	)
Net gains (losses) on extinguishment of debt		—			3			—			—			3
Other net realized gains (losses)		—			(2	)		2			—			—
Revenues of consolidated VIEs		—			—			(111	)		—			(111	)
Inter-segment revenues(2)		29			45			24			(98	)		—
Total revenues		182			99			(21	)		(98	)		162
Losses and loss adjustment		91			—			(28	)		—			63
Operating		18			47			26			—			91
Interest		—			78			128			—			206
Expenses of consolidated VIEs		—			—			98			—			98
Inter-segment expenses(2)		44			20			33			(97	)		—
Total expenses		153			145			257			(97	)		458
Income (loss) before income taxes	$	29		$	(46	)	$	(278	)	$	(1	)	$	(296	)
Identifiable assets	$	4,203		$	1,192		$	4,773		$	(2,061	)(3)	$	8,107

(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.

	Year Ended December 31, 2017
	U.S.						International
	Public						and Structured
	Finance						Finance
In millions	Insurance			Corporate			Insurance			Eliminations			Consolidated
Revenues(1)	$	262		$	30		$	78		$	—		$	370
Net change in fair value of insured derivatives		—			—			(51	)		—			(51	)
Net gains (losses) on financial instruments at fair value and foreign exchange		25			(32	)		(17	)		—			(24	)
Net investment losses related to other-than-temporary impairments		(106	)		—			—			—			(106	)
Net gains (losses) on extinguishment of debt		—			28			—			—			28
Other net realized gains (losses)		(4	)		(4	)		39			—			31
Revenues of consolidated VIEs		—			—			185			—			185
Inter-segment revenues(2)		23			60			44			(127	)		—
Total revenues		200			82			278			(127	)		433
Losses and loss adjustment		499			—			184			—			683
Operating		36			59			34			—			129
Interest		—			81			116			—			197
Expenses of consolidated VIEs		—			—			85			—			85
Inter-segment expenses(2)		72			11			47			(130	)		—
Total expenses		607			151			466			(130	)		1,094
Income (loss) before income taxes	$	(407	)	$	(69	)	$	(188	)	$	3		$	(661	)

(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 of intercompany deferred income taxes, reinsurance balances and repurchase agreements.

Summary Of premiums earned on financial guarantees and insured derivatives by geographic location of risk

	Years Ended December 31,
In millions	2019		2018		2017
Total premiums earned:
United States	$	63	$	94	$	169
Other Americas		17		68		25
Other		5		—		8
Total	$	85	$	162	$	202