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Outstanding Exposure (Tables)
 12 Months Ended
Dec. 31, 2022
Outstanding Exposure Disclosure  
Debt Service Outstanding
Financial Guaranty Portfolio
Debt Service and Par Outstanding
As of December 31, 2022 As of December 31, 2021
  GrossNet GrossNet
 (in millions)
Debt Service
Public finance$359,899 $359,703 $357,694 $357,314 
Structured finance10,273 10,248 10,076 10,046 
Total financial guaranty$370,172 $369,951 $367,770 $367,360 
Par Outstanding
Public finance$224,254 $224,099 $227,507 $227,164 
Structured finance9,184 9,159 9,258 9,228 
Total financial guaranty$233,438 $233,258 $236,765 $236,392 
Financial Guaranty Portfolio by Internal Rating
Financial Guaranty Portfolio by Internal Rating
As of December 31, 2022
 Public Finance
U.S.		Public Finance
Non-U.S.		Structured Finance
U.S.		Structured Finance
Non-U.S.		Total
Rating
Category		Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%
 (dollars in millions)
AAA$222 0.1 %$1,967 4.4 %$926 11.2 %$469 50.4 %$3,584 1.5 %
AA16,241 9.1 3,497 7.9 4,633 56.3 12 1.3 24,383 10.5 
A96,807 53.9 9,271 20.9 1,075 13.1 340 36.5 107,493 46.1 
BBB62,570 34.8 28,747 64.6 479 5.8 110 11.8 91,906 39.4 
BIG3,796 2.1 981 2.2 1,115 13.6 — — 5,892 2.5 
Total net par outstanding$179,636 100.0 %$44,463 100.0 %$8,228 100.0 %$931 100.0 %$233,258 100.0 %
Financial Guaranty Portfolio by Internal Rating
As of December 31, 2021
 Public Finance
U.S.		Public Finance
Non-U.S.		Structured Finance
U.S.		Structured Finance
Non-U.S.		Total
Rating
Category		Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%Net Par
Outstanding		%
 (dollars in millions)
AAA$272 0.2 %$2,217 4.5 %$806 9.6 %$493 57.7 %$3,788 1.6 %
AA16,372 9.2 4,205 8.4 4,760 56.8 22 2.6 25,359 10.7 
A94,459 53.3 10,659 21.3 813 9.7 160 18.7 106,091 44.9 
BBB60,744 34.3 32,264 64.6 611 7.3 179 21.0 93,798 39.7 
BIG5,372 3.0 600 1.2 1,384 16.6 — — 7,356 3.1 
Total net par outstanding$177,219 100.0 %$49,945 100.0 %$8,374 100.0 %$854 100.0 %$236,392 100.0 %
Financial Guaranty Portfolio by Asset Class
The following tables present net par outstanding by sector for the financial guaranty portfolio.

Financial Guaranty Portfolio
Net Par Outstanding by Sector
As of December 31,
Sector20222021
 (in millions)
Public finance:  
U.S. public finance:  
General obligation$71,868 $72,896 
Tax backed33,752 35,726 
Municipal utilities26,436 25,556 
Transportation19,688 17,241 
Healthcare11,304 9,588 
Higher education7,137 6,927 
Infrastructure finance6,955 6,329 
Housing revenue959 1,000 
Investor-owned utilities332 611 
Renewable energy180 193 
Other public finance1,025 1,152 
Total U.S. public finance179,636 177,219 
Non-U.S public finance:  
Regulated utilities 17,855 18,814 
Infrastructure finance13,915 16,475 
Sovereign and sub-sovereign9,526 10,886 
Renewable energy2,086 2,398 
Pooled infrastructure1,081 1,372 
Total non-U.S. public finance44,463 49,945 
Total public finance224,099 227,164 
Structured finance:  
U.S. structured finance:  
Life insurance transactions3,879 3,431 
RMBS1,956 2,391 
Pooled corporate obligations625 534 
Financial products453 770 
Consumer receivables437 583 
Other structured finance878 665 
Total U.S. structured finance8,228 8,374 
Non-U.S. structured finance:  
Pooled corporate obligations344 351 
RMBS263 325 
Other structured finance324 178 
Total non-U.S structured finance931 854 
Total structured finance9,159 9,228 
Total net par outstanding$233,258 $236,392 
Expected Amortization of Net Par Outstanding
Financial Guaranty Portfolio
Expected Amortization of Net Par Outstanding
As of December 31, 2022
 Public FinanceStructured FinanceTotal
 (in millions)
0 to 5 years$47,218 $3,093 $50,311 
5 to 10 years47,902 2,796 50,698 
10 to 15 years41,695 1,737 43,432 
15 to 20 years31,597 991 32,588 
20 years and above55,687 542 56,229 
Total net par outstanding$224,099 $9,159 $233,258 
Components of BIG Net Par Outstanding (Insurance and Credit Derivative Form)
Financial Guaranty Portfolio
Components of BIG Net Par Outstanding
As of December 31, 2022
 BIG Net Par OutstandingNet Par
 BIG 1BIG 2BIG 3Total BIGOutstanding
   (in millions)  
Public finance:
U.S. public finance$2,364 $108 $1,324 $3,796 $179,636 
Non-U.S. public finance 981 — — 981 44,463 
Public finance3,345 108 1,324 4,777 224,099 
Structured finance:
U.S. RMBS18 39 953 1,010 1,956 
Other structured finance— 34 71 105 7,203 
Structured finance18 73 1,024 1,115 9,159 
Total$3,363 $181 $2,348 $5,892 $233,258 

Financial Guaranty Portfolio
Components of BIG Net Par Outstanding
As of December 31, 2021
 BIG Net Par OutstandingNet Par
 BIG 1BIG 2BIG 3Total BIGOutstanding
   (in millions)  
Public finance:
U.S. public finance$1,765 $116 $3,491 $5,372 $177,219 
Non-U.S. public finance 556 — 44 600 49,945 
Public finance2,321 116 3,535 5,972 227,164 
Structured finance:
U.S. RMBS121 24 1,120 1,265 2,391 
Other structured finance1 41 77 119 6,837 
Structured finance122 65 1,197 1,384 9,228 
Total$2,443 $181 $4,732 $7,356 $236,392 
Gross Par and Gross Debt Service Outstanding
All Puerto Rico exposures are internally rated BIG. The following tables show the Company’s insured exposure to general obligation bonds of Puerto Rico and various obligations of its related authorities and public corporations.

Puerto Rico
Gross Par and Gross Debt Service Outstanding
 Gross Par OutstandingGross Debt Service Outstanding
As of December 31,As of December 31,
2022202120222021
 (in millions)
Exposure to Puerto Rico$1,378 $3,629 $1,899 $5,322 
Schedule of Geographic Exposure of Net Par Outstanding
Financial Guaranty Portfolio
Geographic Distribution of Net Par Outstanding
As of December 31, 2022
Number of RisksNet Par OutstandingPercent of Total Net Par Outstanding
 (dollars in millions)
U.S.:
U.S. Public finance:
California1,256 $36,818 15.8 %
Texas1,026 18,973 8.1 
Pennsylvania543 16,142 6.9 
New York584 15,580 6.7 
Illinois498 12,824 5.5 
New Jersey265 9,610 4.1 
Florida211 7,790 3.4 
Louisiana129 4,979 2.1 
Michigan235 4,943 2.1 
Alabama240 3,763 1.6 
Other1,883 48,214 20.7 
Total U.S. public finance6,870 179,636 77.0 
U.S. Structured finance (multiple states)371 8,228 3.5 
Total U.S.7,241 187,864 80.5 
Non-U.S.:
United Kingdom280 34,903 15.0 
Canada5 1,728 0.7 
Spain7 1,575 0.7 
Australia6 1,506 0.6 
France7 1,437 0.7 
Other37 4,245 1.8 
Total non-U.S.342 45,394 19.5 
Total7,583 $233,258 100.0 %
Puerto Rico
Net Par Outstanding
As of December 31,
20222021
 (in millions)
Resolved Puerto Rico Exposures
PRHTA (Transportation revenue) (1)$298 $799 
PRHTA (Highway revenue) (1)182 457 
Commonwealth of Puerto Rico - GO (2)25 1,097 
PBA (2)4 122 
PRCCDA (3)— 152 
PRIFA (3)— 16 
Total Resolved509 2,643 
Other Puerto Rico Exposures
PREPA (4)720 748 
MFA (5)131 179 
PRASA and U of PR (5)1 2 
Total Other 852 929 
Total net exposure to Puerto Rico$1,361 $3,572 
____________________
(1)    Resolved on December 6, 2022, pursuant to the Modified Fifth Amended Title III Plan of Adjustment of the Puerto Rico Highways and Transportation Authority.
(2)    Resolved on March 15, 2022, pursuant to the Modified Eighth Amended Title III Plan of Adjustment of the Commonwealth of Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Public Buildings Authority.
(3)    Modified on March 15, 2022, pursuant to an order of the Federal District Court of Puerto Rico acting under Title VI of PROMESA.
(4)    This exposure is in payment default.
(5)    All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.
BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 2022
 Net Par OutstandingNumber of Risks (2)
DescriptionFinancial Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG:      
Category 1$3,357 $6 $3,363 122 1 123 
Category 2171 10 181 14 2 16 
Category 32,307 41 2,348 111 10 121 
Total BIG$5,835 $57 $5,892 247 13 260 

Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 2021
 Net Par OutstandingNumber 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 $7,356 262 11 273 
_____________________
(1)    Includes FG VIEs.
(2)    A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.
The following table shows the scheduled amortization of the insured general obligation bonds of Puerto Rico and various obligations of its related authorities and public corporations. The Company guarantees payment of interest and principal when those amounts are scheduled to be paid and cannot be required to pay on an accelerated basis, although in certain circumstances it may elect to do so. In the event that obligors default on their obligations, the Company would only be required to pay the shortfall between the debt service due in any given period and the amount paid by the obligors.
Amortization Schedule of Puerto Rico
Net Par Outstanding and Net Debt Service Outstanding
As of December 31, 2022
Scheduled Net Par AmortizationScheduled Net Debt Service Amortization
(in millions)
2023 (January 1 - March 31)$— $30 
2023 (April 1 - June 30)— 3 
2023 (July 1 - September 30)125 156 
2023 (October 1 - December 31)— 3 
Subtotal 2023125 192 
2024112 173 
202596 150 
2026152 202 
2027124 169 
2028-2032378 529 
2033-2037241 312 
2038-2042133 151 
Total$1,361 $1,878 
The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2022 
 Gross Net Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)122 14 111 247 247 
Remaining weighted-average period (in years)11.38.77.69.89.8
Outstanding exposure:   
Par$3,363 $171 $2,318 $5,852 $5,835 
Interest2,177 77 894 3,148 3,144 
Total (2)$5,540 $248 $3,212 $9,000 $8,979 
Expected cash outflows (inflows) $128 $121 $1,771 $2,020 $2,008 
Potential recoveries (3)(294)(79)(1,364)(1,737)(1,725)
Subtotal(166)42 407 283 283 
Discount35 (13)(104)(82)(82)
Expected losses to be paid (recovered)$(131)$29 $303 $201 $201 
Deferred premium revenue$170 $15 $160 $345 $345 
Reserves (salvage)$(174)$21 $186 $33 $33 
Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2021 
 Gross Net 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 
__________________
(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 from 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.
Schedule of Non-Financial Guaranty Exposure
Specialty Insurance, Reinsurance and Guaranties
As of December 31, 2022 As of December 31, 2021
Gross ExposureNet ExposureGross ExposureNet Exposure
(in millions)
Life insurance transactions (1)
$1,314 $986 $1,250 $871 
Aircraft residual value insurance policies
355 200 355 200 
Other guaranties228 228 — — 
____________________
(1)    The life insurance transactions net exposure is projected to reach $1.1 billion by June 30, 2024.