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Contracts Accounted for as Insurance (Tables)
 3 Months Ended
Mar. 31, 2022
Insurance [Abstract]  
Net Earned Premiums
Net Earned Premiums
 First Quarter
 20222021
 (in millions)
Financial guaranty insurance:
Scheduled net earned premiums$79 $81 
Accelerations from refundings and terminations (1)128 16 
Accretion of discount on net premiums receivable6 5 
Financial guaranty insurance net earned premiums213 102 
Specialty net earned premiums1 1 
  Net earned premiums$214 $103 
____________________
(1)    First Quarter 2022 accelerations include $104 million related to the March Puerto Rico Resolutions. See Note 3, Outstanding Exposure for additional information.
Gross Premium Receivable, Net of Commissions on Assumed Business Roll Forward
Gross Premium Receivable,
Net of Commissions Payable on Assumed Business
Roll Forward 
 First Quarter
 20222021
 (in millions)
Beginning of year$1,372 $1,372 
Less: Specialty insurance premium receivable1 1 
Financial guaranty insurance premiums receivable1,371 1,371 
Gross written premiums on new business, net of commissions61 84 
Gross premiums received, net of commissions (83)(103)
Adjustments:
Changes in the expected term8 2 
Accretion of discount, net of commissions on assumed business6 4 
Foreign exchange gain (loss) on remeasurement(29)— 
Financial guaranty insurance premium receivable1,334 1,358 
Specialty insurance premium receivable1 1 
March 31,$1,335 $1,359 
Financial Guaranty Insurance
Expected Future Premium Collections and Earnings
 As of March 31, 2022
Future Premiums
to be Collected (1)		Future Net Premiums
to be Earned (2)
 (in millions)
2022 (April 1 - June 30)$42 $76 
2022 (July 1 - September 30)39 75 
2022 (October 1 - December 31)33 73 
Subtotal 2022114 224 
2023108 279 
202499 257 
202588 233 
202684 217 
2027-2031352 892 
2032-2036246 617 
2037-2041162 366 
After 2041339 505 
Total$1,592 3,590 
Future accretion259 
Total future net earned premiums$3,849 
____________________
(1)    Net of assumed commissions payable.
(2)     Net of reinsurance.
Selected Information for Policies Paid in Installments
Selected Information for Financial Guaranty Insurance Policies
with Premiums Paid in Installments
As of
 March 31, 2022December 31, 2021
 (dollars in millions)
Premiums receivable, net of commissions payable$1,334$1,371
Deferred premium revenue1,6391,663
Weighted-average risk-free rate used to discount premiums1.6%1.6%
Weighted-average period of premiums receivable (in years)12.612.7
Loss and LAE Reserve and Salvage and Subrogation Recoverable Net of Reinsurance Insurance Contracts The following tables provide information on net reserve (salvage), which includes loss and LAE reserves and salvage and subrogation recoverable, both net of reinsurance.
Net Reserve (Salvage) by Sector
As of
SectorMarch 31, 2022December 31, 2021
 (in millions)
Public finance:
U.S. public finance$127 $60 
Non-U.S. public finance 1 1 
Public finance128 61 
Structured finance:
U.S. RMBS18 (24)
Other structured finance42 42 
Structured finance60 18 
Total$188 $79 
Components of Net Reserves (Salvage) Insurance Contracts
Components of Net Reserve (Salvage) 
As of
 March 31, 2022December 31, 2021
 (in millions)
Loss and LAE reserve$718 $869 
Reinsurance recoverable on unpaid losses (1)(3)(5)
Loss and LAE reserve, net715 864 
Salvage and subrogation recoverable(529)(801)
Salvage and subrogation reinsurance payable (2)2 16 
Salvage and subrogation recoverable, net (527)(785)
Net reserve (salvage)$188 $79 
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(1)    Reported in “other assets” on the condensed consolidated balance sheets.
(2)    Reported in “other liabilities” on the condensed consolidated balance sheets.
Reconciliation of Net Expected Loss to be Paid and Net Expected Loss to be Expensed Financial Guaranty Insurance Contracts The table below provides a reconciliation of net expected loss to be paid (recovered) for financial guaranty insurance contracts to net expected loss to be expensed. Expected loss to be paid (recovered) for financial guaranty insurance contracts differs from expected loss to be expensed due to: (i) the contra-paid, which represents the claim payments made and recoveries received that have not yet been recognized in the statements of operations, (ii) salvage and subrogation recoverable for transactions that are in a net recovery position where the Company has not yet received recoveries on claims previously paid
(and therefore recognized in income but not yet received), and (iii) loss reserves that have already been established (and therefore expensed but not yet paid).

Reconciliation of Net Expected Loss to be Paid (Recovered)
to Net Expected Loss to be Expensed
Financial Guaranty Insurance Contracts
As of March 31, 2022
 (in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance $383 
Contra-paid, net 21 
Salvage and subrogation recoverable527 
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance(710)
Net expected loss to be expensed (present value)$221 
Net Expected Loss to be Expensed Insurance Contracts The following table provides a schedule of the expected timing of net expected losses to be expensed. The amount and timing of actual loss and LAE may differ from the estimates shown below due to factors such as accelerations, commutations, changes in expected lives and updates to loss estimates. This table excludes amounts related to FG VIEs, which are eliminated in consolidation.
 
Net Expected Loss to be Expensed
Financial Guaranty Insurance Contracts 
 As of March 31, 2022
 (in millions)
2022 (April 1 - June 30)$5 
2022 (July 1 - September 30)5 
2022 (October 1 - December 31)5 
Subtotal 202215 
202319 
202418 
202517 
202620 
2027-203173 
2032-203647 
2037-20419 
After 20413 
Net expected loss to be expensed221 
Future accretion167 
Total expected future loss and LAE$388 
Loss and LAE Reported on the Consolidated Statements of Operations The following table presents the loss and LAE reported in the condensed consolidated statements of operations by sector for insurance contracts. Amounts presented are net of reinsurance.
Loss and LAE by Sector
  
 First Quarter
Sector20222021
(in millions)
Public finance:
U.S. public finance$55 $26 
Non-U.S. public finance— (8)
Public finance55 18 
Structured finance:
U.S. RMBS$3 $12 
Other structured finance(1)— 
Structured finance2 12 
Loss and LAE$57 $30 
BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of March 31, 2022

 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG:      
Category 1$2,027 $6 $2,033 108 1 109 
Category 2225 11 236 20 2 22 
Category 33,327 43 3,370 127 8 135 
Total BIG$5,579 $60 $5,639 255 11 266 

 Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 2021

 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG:      
Category 1$2,429 $14 $2,443 117 2 119 
Category 2177 4 181 16 1 17 
Category 34,687 45 4,732 129 8 137 
Total BIG$7,293 $63 $7,356 262 11 273 
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(1)    Includes FG VIEs.
(2)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance
BIG Transaction Loss Summary
As of March 31, 2022  
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)108 20 127 255 255 
Remaining weighted-average period (in years)7.67.98.38.18.1
Outstanding exposure:    
Par$2,035 $225 $3,347 $5,607 $5,579 
Interest867 41 1,173 2,081 2,077 
Total (2)$2,902 $266 $4,520 $7,688 $7,656 
Expected cash outflows (inflows) $72 $68 $3,326 $3,466 $3,453 
Potential recoveries (3)(394)(48)(2,473)(2,915)(2,903)
Subtotal(322)20 853 551 550 
Discount24 (3)(189)(168)(167)
Expected losses to be paid (recovered)$(298)$17 $664 $383 $383 
Deferred premium revenue$71 $9 $235 $315 $313 
Reserves (salvage)$(317)$15 $484 $182 $183 
 
Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2021 
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)117 16 129 262 262 
Remaining weighted-average period (in years)7.68.98.98.58.5
Outstanding exposure: 
Par$2,437 $177 $4,745 $7,359 $7,293 
Interest1,000 36 1,942 2,978 2,962 
Total (2)$3,437 $213 $6,687 $10,337 $10,255 
Expected cash outflows (inflows) $111 $40 $4,820 $4,971 $4,918 
Potential recoveries (3)(656)(10)(3,829)(4,495)(4,430)
Subtotal(545)30 991 476 488 
Discount19 (3)(145)(129)(129)
Expected losses to be paid (recovered)$(526)$27 $846 $347 $359 
Deferred premium revenue$85 $2 $350 $437 $435 
Reserves (salvage)$(549)$25 $584 $60 $74 
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(1)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
(2)Includes amounts related to FG VIEs.
(3)Represents expected inflows for future payments by obligors pursuant to restructuring agreements, settlements, excess spread on any underlying collateral and other estimated recoveries. Potential recoveries also include recoveries on certain investment grade credits, related mainly to exposures that were previously BIG and for which claims have been paid in the past.