Note 10 - Financial Guaranty Insurance Contracts (Tables)

9 Months Ended

Sep. 30, 2012

Financial Guaranty Insurance Contracts [Abstract]

Schedule of Insured Financial Obligations with Credit Deterioration [Table Text Block]

The following table includes information as of September 30, 2012, regarding our financial guaranty claim liabilities, segregated by the surveillance categories that we use in monitoring the risks related to these contracts:

	Surveillance Categories
($ in millions)	Performing		Special Mention		Intensified Surveillance			Case Reserve		Total
Number of policies	12		120		75			107		314
Remaining weighted-average contract period (in years)	16		18		20			27		20
Insured contractual payments outstanding:
Principal	$	38.8	$	924.5	$	695.0		$	334.2	$	1,992.5
Interest	10.6		537.1		379.7			163.8		1,091.2
Total	$	49.4	$	1,461.6	$	1,074.7		$	498.0	$	3,083.7
Gross claim liability	$	0.4	$	18.4	$	278.9		$	89.9	$	387.6
Less:
Gross potential recoveries	0.1		0.9		319.3			67.3		387.6
Discount, net	—		2.8		(91.2		)	2.4		(86.0		)
Net claim liability (prior to reduction for unearned premium)	$	0.3	$	14.7	$	50.8		$	20.2	$	86.0
Unearned premium revenue	$	0.2	$	23.0	$	13.0		$	—	$	36.2
Net claim liability reported in the balance sheet	$	0.2	$	6.8	$	43.4		$	20.2	$	70.6
Reinsurance recoverables	$	—	$	—	$	—		$	—	$	—

Adjustments to Premiums Earned Financial Guaranty Contracts [Table Text Block]

Premiums earned were affected by the following for the periods indicated:

	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2012			2011		2012			2011
Refundings	$	7.3		$	4.6	$	26.0		$	18.7
Recaptures/commutations	—			—		(16.3		)	2.8
Unearned premium acceleration upon establishment of case reserves	0.7			1.8		0.7			3.1
Reinsurance agreements	—			—		(6.0		)	—
Foreign exchange revaluation, gross of commissions	0.6			—		(0.2		)	2.0
Adjustments to installment premiums, gross of commissions	(2.4		)	—		(2.3		)	0.3
Total adjustment to premiums earned	$	6.2		$	6.4	$	1.9		$	26.9

Financial Guarantee Insurance Contracts Future Premium Revenue to be Recognized [Table Text Block]

The following table shows the expected contractual premium revenue from our existing financial guaranty portfolio, assuming no prepayments (“refundings”) of any financial guaranty obligations, as of September 30, 2012:

(In millions)	Ending Net Unearned Premiums		Unearned Premium Amortization		Accretion		Total Premium Revenue
Fourth Quarter 2012	$	254.0	$	6.9	$	0.2	$	7.1
2013	227.3		26.7		0.9		27.6
2014	203.5		23.9		0.8		24.7
2015	184.1		19.4		0.8		20.2
2016	167.0		17.1		0.7		17.8
2012 – 2016	167.0		94.0		3.4		97.4
2017 – 2021	96.6		70.4		2.8		73.2
2022 – 2026	49.0		47.5		1.8		49.3
2027 – 2031	21.3		27.7		1.1		28.8
After 2031	—		21.3		1.3		22.6
Total	$	—	$	260.9	$	10.4	$	271.3

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table shows the significant components of the change in our financial guaranty net claim liability for the periods indicated:

	Three Months Ended September 30,						Nine Months Ended September 30,
(In millions)	2012			2011			2012			2011
Net claim liability at beginning of period	$	92.6		$	70.8		$	60.5		$	67.4
Incurred losses and LAE:
Increase in gross claim liability	37.6			15.0			199.3			56.7
Increase in gross potential recoveries	(69.6		)	(50.7		)	(261.3		)	(83.9		)
Decrease in discount	36.4			8.4			102.5			2.6
(Increase)/decrease in unearned premiums	0.1			0.3			(1.8		)	4.3
Incurred losses and LAE	4.5			(27.0		)	38.7			(20.3		)
Paid losses and LAE:
Current years	0.3			—			—			—
Prior years	(26.8		)	(2.3		)	(28.6		)	(5.6		)
Paid losses and LAE:	(26.5		)	(2.3		)	(28.6		)	(5.6		)
Net claim liability at end of period	$	70.6		$	41.5		$	70.6		$	41.5
Components of incurred losses and LAE:
Net claim liability established in current period	$	8.7		$	1.0		$	8.8		$	1.0
Changes in existing claim liabilities	(4.2		)	(28.0		)	29.9			(21.3		)
Total incurred losses and LAE	$	4.5		$	(27.0	)	$	38.7		$	(20.3	)
Components of decrease in discount:
Decrease in discount related to net claim liabilities established in current period	$	36.1		$	1.2		$	101.8		$	1.1
Decrease in discount related to existing net claim liabilities	0.3			7.2			0.7			1.5
Total decrease in discount	$	36.4		$	8.4		$	102.5		$	2.6

Schedule or Description of Weighted Average Discount Rate [Table Text Block]

The weighted-average risk-free rates used to discount the gross claim liability and gross potential recoveries were as follows as of the dates indicated:

September 30, 2012	1.94	%
December 31, 2011	2.80	%
September 30, 2011	3.28	%
December 31, 2010	3.69	%