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Note 9 - Financial Guaranty Insurance Contracts (Tables)
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6 Months Ended |
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Jun. 30, 2013
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| Financial Guaranty Insurance Contracts [Abstract] |
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| Schedule of Insured Financial Obligations with Credit Deterioration [Table Text Block] |
The following table includes information as of June 30, 2013 regarding our financial guaranty claim liabilities on non-derivative transactions, segregated by the surveillance categories that we use in monitoring the risks related to these contracts: | | | | | | | | | | | | | | | | | | | | | | Surveillance Categories | ($ in thousands) | Performing | | Special Mention | | Intensified Surveillance | | Case Reserve | | Total | Number of policies | 7 |
| | 109 |
| | 74 |
| | 84 |
| | 274 |
| Remaining weighted-average contract period (in years) | 22 |
| | 18 |
| | 20 |
| | 18 |
| | 19 |
| Insured contractual payments outstanding: | | | | | | | | | | Principal | $ | 1,832 |
| | $ | 765,880 |
| | $ | 655,340 |
| | $ | 120,564 |
| | $ | 1,543,616 |
| Interest | 174 |
| | 406,064 |
| | 348,958 |
| | 32,702 |
| | 787,898 |
| Total | $ | 2,006 |
| | $ | 1,171,944 |
| | $ | 1,004,298 |
| | $ | 153,266 |
| | $ | 2,331,514 |
| Gross claim liability | $ | 1 |
| | $ | 21,782 |
| | $ | 232,253 |
| | $ | 40,484 |
| | $ | 294,520 |
| Less: | | | | | | | | | | Gross potential recoveries | — |
| | 7,145 |
| | 261,755 |
| | 62,031 |
| | 330,931 |
| Discount, net | — |
| | 517 |
| | (77,874 | ) | | 3,069 |
| | (74,288 | ) | Net claim liability/(asset) (prior to reduction for unearned premium) | $ | 1 |
| | $ | 14,120 |
| | $ | 48,372 |
| | $ | (24,616 | ) | | $ | 37,877 |
| Unearned premium revenue | $ | 6 |
| | $ | 16,011 |
| | $ | 11,537 |
| | $ | — |
| | $ | 27,554 |
| Net claim liability/(asset) reported in the balance sheet | $ | — |
| | $ | 6,917 |
| | $ | 41,310 |
| | $ | (24,616 | ) | | $ | 23,611 |
| Reinsurance recoverables | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
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| Adjustments to Premiums Earned Financial Guaranty Contracts [Table Text Block] |
Premiums earned were affected by the following for the periods indicated: | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | (In thousands) | 2013 | | 2012 | | 2013 | | 2012 | Refundings | $ | 10,288 |
| | $ | 10,483 |
| | $ | 15,041 |
| | $ | 18,707 |
| Recaptures/commutations | — |
| | — |
| | (2,447 | ) | | (16,269 | ) | Unearned premium acceleration upon establishment of case reserves | 4 |
| | — |
| | 69 |
| | — |
| Reinsurance agreements | — |
| | — |
| | — |
| | (5,995 | ) | Foreign exchange revaluation, gross of commissions | (319 | ) | | (981 | ) | | (1,087 | ) | | (769 | ) | Adjustments to installment premiums, gross of commissions | (10 | ) | | 23 |
| | 2,682 |
| | 117 |
| Total adjustment to premiums earned | $ | 9,963 |
| | $ | 9,525 |
| | $ | 14,258 |
| | $ | (4,209 | ) |
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| 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 June 30, 2013: | | | | | | | | | | | | | | | | | (In thousands) | Ending Net Unearned Premiums | | Unearned Premium Amortization | | Accretion | | Total Premium Revenue | Third Quarter 2013 | $ | 205,911 |
| | $ | 6,516 |
| | $ | 215 |
| | $ | 6,731 |
| Fourth Quarter 2013 | 197,350 |
| | 8,561 |
| | 212 |
| | 8,773 |
| 2013 | 197,350 |
| | 15,077 |
| | 427 |
| | 15,504 |
| 2014 | 173,422 |
| | 23,928 |
| | 802 |
| | 24,730 |
| 2015 | 156,491 |
| | 16,931 |
| | 734 |
| | 17,665 |
| 2016 | 142,027 |
| | 14,464 |
| | 690 |
| | 15,154 |
| 2017 | 128,607 |
| | 13,420 |
| | 630 |
| | 14,050 |
| 2013-2017 | 128,607 |
| | 83,820 |
| | 3,283 |
| | 87,103 |
| 2018-2022 | 73,227 |
| | 55,379 |
| | 2,397 |
| | 57,776 |
| 2023-2027 | 36,298 |
| | 36,929 |
| | 1,485 |
| | 38,414 |
| 2028-2032 | 15,236 |
| | 21,062 |
| | 914 |
| | 21,976 |
| After 2032 | — |
| | 15,236 |
| | 1,057 |
| | 16,293 |
| Total | $ | — |
| | $ | 212,426 |
| | $ | 9,136 |
| | $ | 221,562 |
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| Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] |
The following table shows the significant components of changes in our financial guaranty claim liability for the three and six months ended June 30, 2013 and 2012, excluding reserves related to our trade credit reinsurance and surety business of $2.0 million and $2.3 million at June 30, 2013 and June 30, 2012, respectively, which are excluded from the accounting standard regarding accounting for financial guaranty insurance contracts by insurance enterprises. | | | | | | | | | | | | | | | | | | Three Months Ended
June 30, | | Six Months Ended
June 30, | (In thousands) | 2013 | | 2012 | | 2013 | | 2012 | Claim liability at beginning of period | $ | 22,469 |
| | $ | 83,049 |
| | $ | 64,291 |
| | $ | 60,550 |
| Incurred losses and LAE: | | | | | | | | (Decrease) increase in gross claim liability | (36,381 | ) | | (25,413 | ) | | (27,991 | ) | | 161,698 |
| Decrease (increase) in gross potential recoveries | 30,389 |
| | 109,883 |
| | 26,443 |
| | (191,715 | ) | Decrease (increase) in discount | 9,688 |
| | (80,434 | ) | | 6,133 |
| | 66,145 |
| Decrease (increase) in unearned premiums | 84 |
| | (1,204 | ) | | (713 | ) | | (1,908 | ) | Incurred losses and LAE | 3,780 |
| | 2,832 |
| | 3,872 |
| | 34,220 |
| Deduct paid losses and LAE: | | | | | | | | Current years | 34 |
| | 334 |
| | 33 |
| | 334 |
| Prior years | 2,604 |
| | (7,098 | ) | | 44,519 |
| | 1,791 |
| Paid losses and LAE: | 2,638 |
| | (6,764 | ) | | 44,552 |
| | 2,125 |
| Claim liability at end of period | $ | 23,611 |
| | $ | 92,645 |
| | $ | 23,611 |
| | $ | 92,645 |
| Components of incurred losses and LAE: |
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| | | | | | | Claim liability established in current period | $ | 279 |
| | $ | 51 |
| | $ | 383 |
| | $ | 51 |
| Changes in existing claim liabilities | 3,501 |
| | 2,781 |
| | 3,489 |
| | 34,169 |
| Total incurred losses and LAE | $ | 3,780 |
| | $ | 2,832 |
| | $ | 3,872 |
| | $ | 34,220 |
| Components of (increase) decrease in discount: | | | | | | | | (Increase) decrease in discount related to net claim liabilities established in current period | $ | (37 | ) | | $ | (84,929 | ) | | $ | (165 | ) | | $ | 65,682 |
| Decrease in discount related to existing net claim liabilities | 9,725 |
| | 4,495 |
| | 6,298 |
| | 463 |
| Total decrease (increase) in discount | $ | 9,688 |
| | $ | (80,434 | ) | | $ | 6,133 |
| | $ | 66,145 |
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| 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: | | | | June 30, 2013 | 2.29 | % | December 31, 2012 | 2.00 | % | June 30, 2012 | 1.95 | % | December 31, 2011 | 2.80 | % |
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