6 GUARANTEES IN FORCE

The gross par amount of financial guarantees outstanding was $296,463,000 and $345,127,000 at December 31, 2011 and 2010, respectively. The par amount of financial guarantees outstanding, net of reinsurance, was $272,504,000 and $318,854,000 at December 31, 2011 and 2010, respectively. As of December 31, 2011 and 2010, the guarantee portfolio was diversified by type of guaranteed bond as shown in the following table:


	Net Par Amount Outstanding
	2011		2010
Public Finance:
Lease and tax-backed revenue	$	59,864,000	$	65,843,000
General obligation		42,959,000		48,241,000
Utility revenue		22,529,000		26,360,000
Transportation revenue		18,945,000		20,722,000
Higher education		13,618,000		15,279,000
Housing revenue		8,823,000		9,878,000
Health care revenue		7,824,000		9,603,000
Other		2,255,000		3,423,000

Total Public Finance		176,817,000		199,349,000


Structured Finance:
Mortgage-backed and home equity		23,164,000		27,488,000
Investor-owned utilities		9,049,000		10,685,000
Other CDOs		8,060,000		11,463,000
Student loan		7,824,000		11,408,000
Asset-backed		4,732,000		10,005,000
Other		2,316,000		2,750,000

Total Structured Finance		55,145,000		73,799,000


International Finance:
Investor-owned and public utilities		10,510,000		10,861,000
Asset-backed		9,560,000		10,738,000
Sovereign/sub-sovereign		7,282,000		7,119,000
Transportation		5,914,000		6,744,000
Other CDOs		4,375,000		6,775,000
Mortgage-backed and home equity		1,397,000		1,898,000
Other		1,504,000		1,571,000

Total International Finance		40,542,000		45,706,000

Total	$	272,504,000	$	318,854,000

Ambac's total outstanding "asset-backed" exposures within both Structured Finance and International Finance are comprised of the following bond types as of December 31, 2011 and December 31, 2010:


Business Mix by Net Par	December 31, 2011		December 31, 2010
Commercial ABS	$	13,472,000	$	17,813,000
Consumer ABS		820,000		2,930,000

Total	$	14,292,000	$	20,743,000

As of December 31, 2011 and 2010, the International Finance guaranteed portfolio is shown in the following table by location of risk:


	Net Par Amount Outstanding
	2011		2010
United Kingdom	$	22,317,000	$	22,215,000
Australia		5,176,000		6,292,000
Italy		3,346,000		3,674,000
Austria		956,000		999,000
Germany		619,000		692,000
Internationally diversified⁽¹⁾		5,318,000		7,793,000
Other international		2,810,000		4,041,000

Total International Finance	$	40,542,000	$	45,706,000

(1)	Internationally diversified obligations represent pools of geographically diversified exposures which includes significant components of domestic exposure.

Gross financial guarantees in force (principal and interest) was $474,305,000 and $554,700,000 at December 31, 2011 and 2010, respectively. Net financial guarantees in force (after giving effect to reinsurance) was $433,484,000 and $509,429,000 as of December 31, 2011 and 2010, respectively.

In the United States, California, New York and Florida were the states with the highest aggregate net par amounts in force, accounting for 13.3%, 6.7% and 5.1% of the total at December 31, 2011, respectively. No other state accounted for more than 5%. The highest single insured risk represented 1.1% of the aggregate net par amount guaranteed.