The portfolio of outstanding exposures discussed in Note 3, Outstanding Exposure, and Note 4, Expected Loss to be Paid (Recovered), includes contracts that are accounted for as insurance contracts, derivatives, and consolidated FG VIEs. Amounts presented in this note relate only to contracts accounted for as insurance, unless otherwise specified. See Note 6, Contracts Accounted for as Credit Derivatives, for amounts related to CDS and Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles, for amounts that are accounted for as consolidated FG VIEs.


	First Quarter
	2023		2022
	(in millions)
Financial guaranty insurance:
Scheduled net earned premiums	$	69	$	79
Accelerations from refundings and terminations (1)	4		128
Accretion of discount on net premiums receivable	7		6
Financial guaranty insurance net earned premiums	80		213
Specialty net earned premiums	1		1
Net earned premiums	$	81	$	214

(1) First quarter 2022 accelerations included $104 million related to PRCCDA, PRIFA and GO/PBA exposures. See Note 3, Outstanding Exposure, for additional information.


	First Quarter
	2023		2022
	(in millions)
Beginning of year	$	1,298	$	1,372
Less: Specialty insurance premium receivable	1		1
Financial guaranty insurance premiums receivable	1,297		1,371
Gross written premiums on new business, net of commissions	79		61
Gross premiums received, net of commissions	(64)		(83)
Adjustments:
Changes in the expected term and debt service assumptions	6		8
Accretion of discount, net of commissions on assumed business	7		6
Foreign exchange gain (loss) on remeasurement	20		(29)
Financial guaranty insurance premium receivable (1)	1,345		1,334
Specialty insurance premium receivable	1		1
March 31,	$	1,346	$	1,335

Approximately 73% and 74% of gross premiums receivable, net of commissions payable at March 31, 2023 and December 31, 2022, respectively, are denominated in currencies other than the U.S. dollar, primarily the pound sterling and euro.

The timing and cumulative amount of actual collections and net earned premiums may differ from those of expected collections and of expected net earned premiums in the table below due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the consumer price index, changes in expected lives and new business.


	As of March 31, 2023
	Future Gross Premiums to be Collected (1)		Future Net Premiums to be Earned (2)
	(in millions)
2023 (April 1 - June 30)	$	32	$	70
2023 (July 1 - September 30)	38		70
2023 (October 1 - December 31)	19		69
Subtotal 2023	89		209
2024	111		267
2025	96		251
2026	94		235
2027	91		221
2028-2032	379		925
2033-2037	252		618
2038-2042	175		377
After 2042	364		528
Total	$	1,651	3,631
Future accretion			307
Total future net earned premiums			$	3,938


	As of
	March 31, 2023		December 31, 2022
	(dollars in millions)
Premiums receivable, net of commissions payable	$	1,345	$	1,297
Deferred premium revenue	1,699		1,663
Weighted-average risk-free rate used to discount premiums	1.8%		1.8%
Weighted-average period of premiums receivable (in years)	12.6		12.9

Loss reserves and salvage are discounted at risk-free rates for U.S. dollar denominated financial guaranty insurance obligations that ranged from 3.44% to 4.87% with a weighted average of 3.84% as of March 31, 2023 and 3.82% to 4.69% with a weighted average of 4.15% as of December 31, 2022.

The following tables provide information on net reserve (salvage), which includes loss and LAE reserves and salvage and subrogation recoverable, both net of reinsurance.


	As of
Sector	March 31, 2023		December 31, 2022
	(in millions)
Public finance:
U.S. public finance	$	52	$	71
Non-U.S. public finance	1		1
Public finance	53		72
Structured finance:
U.S. RMBS	(62)		(77)
Other structured finance	41		42
Structured finance	(21)		(35)
Total	$	32	$	37

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).


	As of March 31, 2023
	(in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance	$	202
Contra-paid, net	22
Salvage and subrogation recoverable, net	257
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance	(286)
Net expected loss to be expensed (present value)	$	195

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.


	As of March 31, 2023
	(in millions)
2023 (April 1 - June 30)	$	3
2023 (July 1 - September 30)	3
2023 (October 1 - December 31)	3
Subtotal 2023	9
2024	12
2025	12
2026	17
2027	15
2028-2032	61
2033-2037	49
2038-2042	8
After 2042	12
Net expected loss to be expensed	195
Future accretion	66
Total expected future loss and LAE	$	261

The following table presents the loss and LAE (benefit) reported in the condensed consolidated statements of operations by sector for insurance contracts. Amounts presented are net of reinsurance.


	First Quarter
Sector	2023		2022
	(in millions)
Public finance:
U.S. public finance	$	(4)	$	55
Non-U.S. public finance	—		—
Public finance	(4)		55
Structured finance:
U.S. RMBS	$	6	$	3
Other structured finance	2		(1)
Structured finance	8		2
Loss and LAE (benefit)	$	4	$	57


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	117		15		109		241		241
Remaining weighted-average period (in years)	11.2		8.5		7.4		9.7		9.7

Outstanding exposure:
Par	$	3,376	$	170	$	2,296	$	5,842	$	5,826
Interest	2,172		77		872		3,121		3,117
Total (2)	$	5,548	$	247	$	3,168	$	8,963	$	8,943

Expected cash outflows (inflows)	$	263	$	122	$	1,704	$	2,089	$	2,077
Potential recoveries (3)	(412)		(79)		(1,330)		(1,821)		(1,809)
Subtotal	(149)		43		374		268		268
Discount	40		(12)		(94)		(66)		(66)
Expected losses to be paid (recovered)	$	(109)	$	31	$	280	$	202	$	202

Deferred premium revenue	$	165	$	15	$	155	$	335	$	335
Reserves (salvage)	$	(158)	$	23	$	164	$	29	$	29


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	122		14		111		247		247
Remaining weighted-average period (in years)	11.3		8.7		7.6		9.8		9.8

Outstanding exposure:
Par	$	3,363	$	171	$	2,318	$	5,852	$	5,835
Interest	2,177		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
Discount	35		(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

(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.