XML 135 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 9 - Financial Guaranty Insurance Contracts (Tables)
 6 Months Ended
Jun. 30, 2013
Financial Guaranty Insurance Contracts [Abstract]  
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
$
—

 
$
—

 
$
—

 
$
—

 
$
—
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
)
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
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:


 
 
 
 
 
 
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
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
%