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, Variable Interest Entities, for amounts related to consolidated FG VIEs.


	Third Quarter				Nine Months
	2025		2024		2025		2024
	(in millions)
Financial guaranty insurance:
Scheduled net earned premiums	$	77	$	73	$	228	$	216
Accelerations from refundings and terminations	5		14		14		56
Accretion of discount on net premiums receivable	10		8		28		23
Financial guaranty insurance net earned premiums	92		95		270		295
Specialty net earned premiums	2		2		4		5
Net earned premiums	$	94	$	97	$	274	$	300


	Nine Months
	2025		2024
	(in millions)
Beginning of year	$	1,551	$	1,468
Less: Specialty insurance premium receivable	1		1
Financial guaranty insurance premiums receivable	1,550		1,467
New business and supplemental premiums, net of commissions	214		278
Gross premiums received, net of commissions	(265)		(267)
Adjustments:
Changes in the expected term and debt service assumptions	(23)		(28)
Accretion of discount, net of commissions on assumed business	26		19
Foreign exchange gain (loss) on remeasurement	81		43
Change in allowance for credit losses	(1)		—
Financial guaranty insurance premium receivable	1,582		1,512
Specialty insurance premium receivable	1		1
September 30,	$	1,583	$	1,513

Approximately 68% and 69% of gross premiums receivable, net of commissions payable, as of September 30, 2025 and December 31, 2024, 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 indices, changes in expected lives and new business.


	As of September 30, 2025
			Future Net Premiums to be Earned (2)
	Future Premiums to be Collected (1)		Earnings of Deferred Premium Revenue		Accretion of Discount		Total
	(in millions)
2025 (October 1 - December 31)	$	60	$	78	$	10	$	88
2026	157		294		37		331
2027	131		272		35		307
2028	125		258		33		291
2029	113		240		31		271
2030-2034	439		954		130		1,084
2035-2039	346		627		96		723
2040-2044	266		414		63		477
2045-2049	201		275		36		311
2050-2054	123		142		16		158
After 2054	121		104		12		116
Total	$	2,082	$	3,658	$	499	$	4,157


	As of
	September 30, 2025		December 31, 2024
	(dollars in millions)
Premiums receivable, net of commissions payable	$	1,582	$	1,550
Deferred premium revenue	1,855		1,901
Weighted-average risk-free rate used to discount premiums	2.6%		2.5%
Weighted-average period of premiums receivable (in years)	12.0		12.3

Loss reserves and salvage and subrogation recoverable are discounted at risk-free rates for financial guaranty insurance obligations that ranged from 1.92% to 5.70% with a weighted average of 4.03% as of September 30, 2025 and 1.98% to 5.22% with a weighted average of 4.38% as of December 31, 2024.

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


	As of
Sector	September 30, 2025		December 31, 2024
	(in millions)
Public finance:
U.S. public finance	$	(67)	$	(14)
Non-U.S. public finance	21		5
Public finance	(46)		(9)
Structured finance:
U.S. RMBS	(156)		(151)
Other structured finance	60		33
Structured finance	(96)		(118)
Total	$	(142)	$	(127)

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 September 30, 2025
	(in millions)
Net expected loss to be paid (recovered) - financial guaranty insurance	$	91
Contra-paid, net	23
Salvage and subrogation recoverable, net	449
Loss and LAE reserve - financial guaranty insurance contracts, net of reinsurance	(306)
Net expected loss to be expensed (present value)	$	257

The following table provides a schedule of the expected timing of financial guaranty 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 September 30, 2025
	(in millions)
2025 (October 1 - December 31)	$	3
2026	14
2027	17
2028	20
2029	18
2030-2034	81
2035-2039	37
2040-2044	19
2045-2049	25
2050-2054	20
After 2054	3
Net expected loss to be expensed (present value)	257
Future expected accretion	27
Total expected future loss and LAE	$	284


	Third Quarter				Nine Months
Sector	2025		2024		2025		2024
	(in millions)
Public finance:
U.S. public finance	$	(5)	$	(11)	$	46	$	(12)
Non-U.S. public finance	(2)		—		18		—
Public finance	(7)		(11)		64		(12)
Structured finance:
U.S. RMBS	$	(25)	$	(39)	$	(25)	$	(42)
Other structured finance	2		(1)		(1)		—
Structured finance	(23)		(40)		(26)		(42)
Loss and LAE (benefit)	$	(30)	$	(51)	$	38	$	(54)


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	92		10		95		197		197
Remaining weighted-average period (in years)	12.8		26.5		5.6		17.2		17.2

Outstanding exposure:
Par	$	7,232	$	2,893	$	1,236	$	11,361	$	11,349
Interest	5,051		4,459		337		9,847		9,845
Total (2)	$	12,283	$	7,352	$	1,573	$	21,208	$	21,194

Expected cash outflows (inflows)	$	398	$	2,378	$	1,244	$	4,020	$	4,012
Potential recoveries (3)	(659)		(2,134)		(1,111)		(3,904)		(3,894)
Subtotal	(261)		244		133		116		118
Discount	92		(107)		(12)		(27)		(27)
Expected losses to be paid (recovered)	$	(169)	$	137	$	121	$	89	$	91

Deferred premium revenue	$	331	$	106	$	108	$	545	$	545
Reserves (salvage)	$	(249)	$	67	$	36	$	(146)	$	(143)


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in millions)
Number of risks (1)	98		12		97		207		207
Remaining weighted-average period (in years)	18.6		8.8		6.1		16.6		16.6

Outstanding exposure:
Par	$	8,080	$	702	$	1,382	$	10,164	$	10,150
Interest	7,546		371		421		8,338		8,335
Total (2)	$	15,626	$	1,073	$	1,803	$	18,502	$	18,485

Expected cash outflows (inflows)	$	4,016	$	342	$	1,307	$	5,665	$	5,656
Potential recoveries (3)	(4,201)		(293)		(1,132)		(5,626)		(5,616)
Subtotal	(185)		49		175		39		40
Discount	43		29		(23)		49		49
Expected losses to be paid (recovered)	$	(142)	$	78	$	152	$	88	$	89

Deferred premium revenue	$	333	$	49	$	116	$	498	$	498
Reserves (salvage)	$	(226)	$	35	$	62	$	(129)	$	(128)

(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.