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Contracts Accounted for as Insurance (Tables)
 12 Months Ended
Dec. 31, 2022
Insurance [Abstract]  
Net Earned Premiums
Net Earned Premiums
 Year Ended December 31,
 202220212020
 (in millions)
Financial guaranty insurance:
Scheduled net earned premiums$287 $322 $334 
Accelerations from refundings and terminations (1)179 59 129 
Accretion of discount on net premiums receivable24 30 20 
Financial guaranty insurance net earned premiums490 411 483 
Specialty net earned premiums4 3 2 
  Net earned premiums$494 $414 $485 
____________________
(1)    2022 accelerations include $133 million related to the 2022 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
 Year Ended December 31,
 202220212020
 (in millions)
Beginning of year$1,372 $1,372 $1,286 
Less: Specialty insurance premium receivable 1 1 2 
Financial guaranty insurance premiums receivable1,371 1,371 1,284 
Gross written premiums on new business, net of commissions 356 369 462 
Gross premiums received, net of commissions(345)(383)(426)
Adjustments:
Changes in the expected term and debt service assumptions2 6 (10)
Accretion of discount, net of commissions on assumed business24 26 18 
Foreign exchange gain (loss) on remeasurement(111)(22)43 
Expected recovery of premiums previously written off— 4 — 
Financial guaranty insurance premium receivable1,297 1,371 1,371 
Specialty insurance premium receivable1 1 1 
December 31,$1,298 $1,372 $1,372 
Expected Future Premium Collections and Earnings
 As of December 31, 2022
Future Premiums
to be Collected (1)		Future Net Premiums
to be Earned (2)
 (in millions)
2023 (January 1 - March 31)$43 $69 
2023 (April 1 - June 30)32 69 
2023 (July 1 - September 30)25 69 
2023 (October 1 - December 31)29 68 
Subtotal 2023129 275 
202492 260 
202590 244 
202687 229 
202782 214 
2028-2032348 898 
2033-2037241 608 
2038-2042167 370 
After 2042352 521 
Total$1,588 3,619 
Future accretion293 
Total future net earned premiums$3,912 
____________________
(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 December 31,
 20222021
 (dollars in millions)
Premiums receivable, net of commissions payable$1,297$1,371
Deferred premium revenue$1,663$1,663
Weighted-average risk-free rate used to discount premiums1.8%1.6%
Weighted-average period of premiums receivable (in years)12.912.7
Rollforward of Deferred Acquisition Costs
Roll Forward of Deferred Acquisition Costs
Year Ended December 31,
202220212020
(in millions)
Beginning of year$131 $119 $111 
Costs deferred during the period30 26 24 
Costs amortized during the period(14)(14)(16)
December 31,$147 $131 $119 
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 December 31,
Sector20222021
 (in millions)
Public finance:
U.S. public finance$71 $60 
Non-U.S. public finance 1 1 
Public finance72 61 
Structured finance:
U.S. RMBS(77)(24)
Other structured finance42 42 
Structured finance(35)18 
Total$37 $79 
Components of Net Reserves (Salvage) Insurance Contracts
Components of Net Reserve (Salvage)
As of December 31,
 20222021
 (in millions)
Loss and LAE reserve$296 $869 
Reinsurance recoverable on unpaid losses (1)(3)(5)
Loss and LAE reserve, net293 864 
Salvage and subrogation recoverable(257)(801)
Salvage and subrogation reinsurance payable (2)1 16 
Salvage and subrogation recoverable, net(256)(785)
Net reserve (salvage)$37 $79 
____________________
(1)    Reported in “other assets” on the consolidated balance sheets.
(2)    Reported in “other liabilities” on the 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 December 31, 2022
 (in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance $201 
Contra-paid, net 23 
Salvage and subrogation recoverable, net256 
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance(289)
Net expected loss to be expensed (present value)$191 
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 December 31, 2022
 (in millions)
2023 (January 1 - March 31)$2 
2023 (April 1 - June 30)2 
2023 (July 1 - September 30)3 
2023 (October 1 - December 31)3 
Subtotal 202310 
202412 
202513 
202617 
202715 
2028-203261 
2033-203743 
2038-20428 
After 204212 
Net expected loss to be expensed191 
Future accretion82 
Total expected future loss and LAE$273 
Loss and LAE Reported on the Consolidated Statements of Operations
The following table presents the loss and LAE (benefit) reported in the consolidated statements of operations by sector for insurance contracts. Amounts presented are net of reinsurance.

Loss and LAE (Benefit) by Sector
 Year Ended December 31,
Sector202220212020
(in millions)
Public finance:
U.S. public finance$125 $(146)$225 
Non-U.S. public finance— (9)5 
Public finance125 (155)230 
Structured finance:
U.S. RMBS(112)(69)(34)
Other structured finance3 4 7 
Structured finance(109)(65)(27)
Loss and LAE (benefit)$16 $(220)$203 
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.
Effects of Reinsurance on Statement of Operations
The following table presents the components of premiums and losses reported in the consolidated statements of operations attributable to the Assumed and Ceded Businesses (both financial guaranty and specialty).

Effect of Reinsurance on Premiums Written, Premiums Earned and Loss and LAE (Benefit)
 Year Ended December 31,
 202220212020
 (in millions)
Premiums Written:
Direct$377 $355 $453 
Assumed (1)(17)22 1 
Ceded (2)— — 13 
Net$360 $377 $467 
Premiums Earned:
Direct$469 $385 $448 
Assumed28 32 41 
Ceded(3)(3)(4)
Net $494 $414 $485 
Loss and LAE (benefit):
Direct (3)$32 $(203)$182 
Assumed(17)5 24 
Ceded1 (22)(3)
Net $16 $(220)$203 
____________________
(1)    Negative assumed premiums written were due to terminations and changes in expected debt service schedules.
(2)     Positive ceded premiums written were due to commutations and changes in expected debt service schedules.
(3)     See Note 4, Expected Loss to be Paid (Recovered), for additional information on the economic loss development (benefit).