Business Segments (Tables)

12 Months Ended

Dec. 31, 2020

Text Block [Abstract]

Summary of company's segment results

The following tables provide the Company’s segment results for the years ended December 31, 2020, 2019 and 2018:

	Year Ended December 31, 2020
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance Insurance		Eliminations			Consolidated
Revenues(1)	$	102	$	20	$	29	$	—		$	151
Net change in fair value of insured derivatives		—		—		6		—			6
Net gains (losses) on financial instruments at fair value and foreign exchange		39		(63)		(14)		—			(38)
Other net realized gains (losses)		(1)		—		1		—			—
Revenues of consolidated VIEs		—		—		163		—			163
Inter-segment revenues(2)		28		66		12		(106)			—
Total revenues		168		23		197		(106)			282
Losses and loss adjustment		163		—		367		—			530
Operating		14		69		14		—			97
Interest		—		65		113		—			178
Expenses of consolidated VIEs		—		—		55		—			55
Inter-segment expenses(2)		45		22		39		(106)			—
Total expenses		222		156		588		(106)			860
Income (loss) before income taxes	$	(54)	$	(133)	$	(391)	$	—		$	(578)
Identifiable assets	$	3,644	$	954	$	3,671	$	(2,518)	(3)	$	5,751

(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 principally of intercompany reinsurance balances.

	Year Ended December 31, 2019
In millions	U.S. Public Finance Insurance		Corporate		International and Structured Finance 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)

(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.

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

	Years Ended December 31,
In millions	2020		2019		2018
Total premiums earned:
United States	$	55	$	63	$	94
Other Americas		16		17		68
Other		2		5		—
Total	$	73	$	85	$	162