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Contracts Accounted for as Insurance (Tables)
 6 Months Ended
Jun. 30, 2024
Insurance [Abstract]  
Net Earned Premiums
Net Earned Premiums
 Second QuarterSix Months
 2024202320242023
 (in millions)
Financial guaranty insurance:
Scheduled net earned premiums$72 $70 $143 $139 
Accelerations from refundings and terminations3 8 42 12 
Accretion of discount on net premiums receivable8 6 15 13 
Financial guaranty insurance net earned premiums83 84 200 164 
Specialty net earned premiums1 1 3 2 
  Net earned premiums$84 $85 $203 $166 
Gross Premium Receivable, Net of Commissions on Assumed Business Roll Forward
Gross Premium Receivable,
Net of Commissions Payable on Assumed Business
Roll Forward 
 Six Months
 20242023
 (in millions)
Beginning of year$1,468 $1,298 
Less: Specialty insurance premium receivable1 1 
Financial guaranty insurance premiums receivable1,467 1,297 
Gross written premiums on new business, net of commissions220 171 
Gross premiums received, net of commissions (188)(120)
Adjustments:
Changes in the expected term and debt service assumptions(29)9 
Accretion of discount, net of commissions on assumed business11 13 
Foreign exchange gain (loss) on remeasurement(10)46 
Financial guaranty insurance premium receivable1,471 1,416 
Specialty insurance premium receivable1 1 
June 30,$1,472 $1,417 
Financial Guaranty Insurance
Expected Future Premium Collections and Earnings
 As of June 30, 2024
Future Premiums
to be Collected (1)		Future Net Premiums
to be Earned (2)
 (in millions)
2024 (July 1 - September 30)$59 $74 
2024 (October 1 - December 31)39 73 
Subtotal 202498 147 
2025128 276 
2026111 258 
2027106 243 
202899 229 
2029-2033401 939 
2034-2038296 621 
2039-2043224 396 
After 2043417 540 
Total$1,880 3,649 
Future accretion407 
Total future net earned premiums$4,056 
____________________
(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
 June 30, 2024December 31, 2023
 (dollars in millions)
Premiums receivable, net of commissions payable$1,471$1,467
Deferred premium revenue1,8151,768
Weighted-average risk-free rate used to discount premiums2.3%2.1%
Weighted-average period of premiums receivable (in years)12.512.5
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
SectorJune 30, 2024December 31, 2023
 (in millions)
Public finance:
U.S. public finance$85 $119 
Non-U.S. public finance 1 1 
Public finance86 120 
Structured finance:
U.S. RMBS(123)(87)
Other structured finance36 42 
Structured finance(87)(45)
Total$(1)$75 
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 June 30, 2024
 (in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance $200 
Contra-paid, net 21 
Salvage and subrogation recoverable, net292 
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance(288)
Net expected loss to be expensed (present value)$225 
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 June 30, 2024
 (in millions)
2024 (July 1 - September 30)$3 
2024 (October 1 - December 31)3 
Subtotal 20246 
202512 
202618 
202718 
202818 
2029-203378 
2034-203849 
2039-204313 
After 204313 
Net expected loss to be expensed (present value)225 
Future accretion(71)
Total expected future loss and LAE$154 
Loss and LAE Reported on the Consolidated Statements of Operations
The following table presents the loss and LAE (benefit) reported in the condensed consolidated statements of operations by sector for insurance contracts.

Loss and LAE (Benefit) by Sector
  
 Second QuarterSix Months
Sector2024202320242023
(in millions)
Public finance:
U.S. public finance$1 $56 $(1)$52 
Non-U.S. public finance— — — — 
Public finance1 56 (1)52 
Structured finance:
U.S. RMBS$(5)$(2)$(3)$4 
Other structured finance2 1 1 3 
Structured finance(3)(1)(2)7 
Loss and LAE (benefit)$(2)$55 $(3)$59 
BIG Net Par Outstanding and Number of Risks
Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of June 30, 2024
 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG 1$2,159 $11 $2,170 90 1 91 
BIG 21,526 3 1,529 14 1 15 
BIG 31,783 20 1,803 108 5 113 
Total BIG$5,468 $34 $5,502 212 7 219 
 Financial Guaranty Portfolio
BIG Net Par Outstanding and Number of Risks
As of December 31, 2023
 Net Par Outstanding
Number of Risks (2)
DescriptionFinancial
Guaranty
Insurance (1)		Credit
Derivatives		TotalFinancial
Guaranty
Insurance (1)		Credit
Derivatives		Total
 (dollars in millions)
BIG 1$2,394 $16 $2,410 95 2 97 
BIG 2979 10 989 13 2 15 
BIG 32,010 28 2,038 109 7 116 
Total BIG$5,383 $54 $5,437 217 11 228 
_____________________
(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 obligations of the Puerto Rico authorities and public corporations that the Company insures. 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 June 30, 2024
Scheduled Net Par AmortizationScheduled Net Debt Service Amortization
(in millions)
2024 (July 1 - September 30)$110 $131 
2024 (October 1 - December 31)— 3 
Subtotal 2024110 134 
202584 124 
2026140 177 
2027120 151 
202881 106 
2029-2033197 282 
2034-2038132 170 
2039-204197 106 
Total$961 $1,250 
The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance
BIG Transaction Loss Summary
As of June 30, 2024  
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)90 14 108 212 212 
Remaining weighted-average period (in years)11.113.06.710.210.3
Outstanding exposure:    
Par$2,165 $1,526 $1,792 $5,483 $5,468 
Interest1,146 1,201 639 2,986 2,983 
Total (2)$3,311 $2,727 $2,431 $8,469 $8,451 
Expected cash outflows (inflows) $101 $410 $1,470 $1,981 $1,971 
Potential recoveries (3)(275)(336)(1,241)(1,852)(1,842)
Subtotal(174)74 229 129 129 
Discount38 42 (9)71 71 
Expected losses to be paid (recovered)$(136)$116 $220 $200 $200 
Deferred premium revenue$65 $98 $130 $293 $293 
Reserves (salvage)$(172)$48 $120 $(4)$(4)
 
Financial Guaranty Insurance
BIG Transaction Loss Summary
As of December 31, 2023 
 GrossNet Total BIG
 BIG 1BIG 2BIG 3Total BIG
(dollars in millions)
Number of risks (1)95 13 109 217 217 
Remaining weighted-average period (in years)9.615.97.59.910.0
Outstanding exposure: 
Par$2,400 $979 $2,019 $5,398 $5,383 
Interest1,126 896 818 2,840 2,836 
Total (2)$3,526 $1,875 $2,837 $8,238 $8,219 
Expected cash outflows (inflows) $176 $187 $1,585 $1,948 $1,938 
Potential recoveries (3)(376)(78)(1,214)(1,668)(1,659)
Subtotal(200)109 371 280 279 
Discount56 (22)(53)(19)(19)
Expected losses to be paid (recovered)$(144)$87 $318 $261 $260 
Deferred premium revenue$100 $63 $142 $305 $305 
Reserves (salvage)$(181)$45 $209 $73 $72 
____________________
(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.