Outstanding Exposure (Tables)

6 Months Ended

Jun. 30, 2026

Outstanding Exposure Disclosure [Abstract]

Financial Guaranty Portfolio

Debt Service and Par Outstanding


	As of June 30, 2026				As of December 31, 2025
	Gross		Net		Gross		Net
	(in billions)
Debt Service
Public finance	$	433.0	$	432.9	$	428.5	$	428.4
Structured finance	14.2		13.7		12.9		12.4
Total financial guaranty	$	447.2	$	446.6	$	441.4	$	440.8

Par Outstanding
Public finance	$	268.6	$	268.5	$	265.6	$	265.6
Structured finance	13.4		12.9		12.0		11.5
Total financial guaranty	$	282.0	$	281.4	$	277.6	$	277.1

Schedule of Financial Guaranty Exposure by Internal Rating

Financial Guaranty Portfolio by Internal Rating

As of June 30, 2026


	Public Finance U.S.				Public Finance Non-U.S.				Structured Finance U.S.				Structured Finance Non-U.S.				Total
Rating Category	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
	(dollars in billions)
AAA	$	—	—	%	$	1.4	2.9	%	$	0.5	4.8	%	$	0.3	8.0	%	$	2.2	0.8	%
AA	18.6		8.5		1.4		2.8		5.7		66.6		1.2		27.3		26.9		9.5
A	128.4		58.5		11.5		23.5		1.2		14.7		2.8		64.5		143.9		51.2
BBB	69.0		31.5		30.5		62.1		0.4		4.5		—		0.2		99.9		35.5
BIG	3.4		1.5		4.3		8.7		0.8		9.4		—		—		8.5		3.0
Total net par outstanding	$	219.4	100.0	%	$	49.1	100.0	%	$	8.6	100.0	%	$	4.3	100.0	%	$	281.4	100.0	%

Financial Guaranty Portfolio by Internal Rating

As of December 31, 2025


	Public Finance U.S.				Public Finance Non-U.S.				Structured Finance U.S.				Structured Finance Non-U.S.				Total
Rating Category	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
	(dollars in billions)
AAA	$	—	—	%	$	1.8	3.5	%	$	0.5	5.8	%	$	0.5	12.6	%	$	2.8	1.0	%
AA	18.2		8.5		1.5		2.9		5.2		66.4		0.1		3.5		25.0		9.0
A	122.8		57.1		13.5		26.7		0.7		8.9		3.0		83.7		140.0		50.5
BBB	70.5		32.8		29.4		58.1		0.6		8.2		—		0.2		100.5		36.3
BIG	3.5		1.6		4.4		8.8		0.9		10.7		—		—		8.8		3.2
Total net par outstanding	$	215.0	100.0	%	$	50.6	100.0	%	$	7.9	100.0	%	$	3.6	100.0	%	$	277.1	100.0	%

Schedule of BIG Net Par Outstanding and Number of Risks

Financial Guaranty Portfolio

Components of BIG Net Par Outstanding

As of June 30, 2026


	BIG Net Par Outstanding
	BIG 1		BIG 2		BIG 3		Total BIG
	(in billions)
Public finance:
U.S. public finance	$	1.22	$	1.60	$	0.58	$	3.40
Non-U.S. public finance	1.00		3.29		—		4.29
Public finance	2.22		4.89		0.58		7.69
Structured finance:
U.S. RMBS	0.17		0.03		0.54		0.74
Other structured finance	—		0.02		0.05		0.07
Structured finance	0.17		0.05		0.59		0.81
Total	$	2.39	$	4.94	$	1.17	$	8.50

Financial Guaranty Portfolio

Components of BIG Net Par Outstanding

As of December 31, 2025


	BIG Net Par Outstanding
	BIG 1		BIG 2		BIG 3		Total BIG
	(in billions)
Public finance:
U.S. public finance	$	2.48	$	0.42	$	0.58	$	3.48
Non-U.S. public finance	1.09		3.35		—		4.44
Public finance	3.57		3.77		0.58		7.92
Structured finance:
U.S. RMBS	0.17		0.03		0.57		0.77
Other structured finance	—		0.01		0.06		0.07
Structured finance	0.17		0.04		0.63		0.84
Total	$	3.74	$	3.81	$	1.21	$	8.76

BIG Net Par Outstanding and Number of Risks

Financial Guaranty Portfolio

BIG Net Par Outstanding and Number of Risks

As of June 30, 2026


	Net Par Outstanding						Number of Risks (2)
Description	Financial Guaranty Insurance (1)		Credit Derivatives		Total		Financial Guaranty Insurance (1)	Credit Derivatives	Total
	(dollars in billions)
BIG 1	$	2.36	$	0.03	$	2.39	83	3	86
BIG 2	4.94		—		4.94		15	1	16
BIG 3	1.17		—		1.17		93	3	96
Total BIG	$	8.47	$	0.03	$	8.50	191	7	198

Financial Guaranty Portfolio

BIG Net Par Outstanding and Number of Risks

As of December 31, 2025


	Net Par Outstanding						Number of Risks (2)
Description	Financial Guaranty Insurance (1)		Credit Derivatives		Total		Financial Guaranty Insurance (1)	Credit Derivatives	Total
	(dollars in billions)
BIG 1	$	3.71	$	0.03	$	3.74	87	3	90
BIG 2	3.81		—		3.81		13	1	14
BIG 3	1.21		—		1.21		95	3	98
Total BIG	$	8.73	$	0.03	$	8.76	195	7	202

_____________________

(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 tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance

BIG Transaction Loss Summary

As of June 30, 2026


	Gross								Net Total BIG
	BIG 1		BIG 2 (4)		BIG 3		Total BIG
	(dollars in billions)
Number of risks (1)	83		15		93		191		191
Remaining weighted-average period (in years)	10.7		23.3		5.0		18.5		18.6

Outstanding exposure:
Par	$	2.37	$	4.93	$	1.18	$	8.48	$	8.47
Interest	1.11		6.10		0.28		7.49		7.49
Total (2)	$	3.48	$	11.03	$	1.46	$	15.97	$	15.96

	Gross								Net Total BIG
	BIG 1		BIG 2 (4)		BIG 3		Total BIG
	(in millions)
Expected cash outflows (inflows)	$	114	$	2,261	$	1,216	$	3,591	$	3,583
Potential recoveries (3)	(381)		(1,988)		(1,084)		(3,453)		(3,443)
Subtotal	(267)		273		132		138		140
Discount	48		(1)		(8)		39		39
Expected losses to be paid (recovered)	$	(219)	$	272	$	124	$	177	$	179

Deferred premium revenue	$	59	$	251	$	96	$	406	$	406
Reserves (salvage)	$	(242)	$	73	$	47	$	(122)	$	(120)

Financial Guaranty Insurance

BIG Transaction Loss Summary

As of December 31, 2025


	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(dollars in billions)
Number of risks (1)	87		13		95		195		195
Remaining weighted-average period (in years)	14.0		24.1		5.4		18.7		18.7

Outstanding exposure:
Par	$	3.73	$	3.81	$	1.21	$	8.75	$	8.73
Interest	2.52		4.84		0.32		7.68		7.68
Total (2)	$	6.25	$	8.65	$	1.53	$	16.43	$	16.41

	Gross								Net Total BIG
	BIG 1		BIG 2		BIG 3		Total BIG
	(in millions)
Expected cash outflows (inflows)	$	172	$	1,141	$	1,242	$	2,555	$	2,547
Potential recoveries (3)	(445)		(877)		(1,110)		(2,432)		(2,422)
Subtotal	(273)		264		132		123		125
Discount	47		(77)		(8)		(38)		(38)
Expected losses to be paid (recovered)	$	(226)	$	187	$	124	$	85	$	87

Deferred premium revenue	$	164	$	162	$	103	$	429	$	429
Reserves (salvage)	$	(255)	$	71	$	43	$	(141)	$	(140)

____________________

(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 primarily to exposures that were previously BIG and for which claims have been paid in the past.

(4)The increases in BIG 2 exposure, expected losses to be paid and deferred premium revenue in 2026 relate primarily to Brightline.

Schedule of Non-Financial Guaranty Exposure

The Company also guarantees specialty business with risk characteristics similar to those of the Company’s structured finance exposures written in financial guaranty form.

Specialty Business


	As of June 30, 2026				As of December 31, 2025
	Gross Exposure		Net Exposure		Gross Exposure		Net Exposure
	(in billions)
Diversified real estate (1)	$	1.9	$	1.9	$	2.0	$	2.0
Insurance reserve financings and securitizations	1.6		1.3		1.5		1.2
Pooled corporate obligations	1.0		1.0		0.9		0.9
Aircraft residual value insurance (RVI)	0.2		0.1		0.2		0.1

____________________

(1) An excess-of-loss guaranty of a minimum amount of billed rent on a diversified portfolio of real estate properties with an internal rating of AAA that matures in 2044. This guaranty is accounted for in accordance with ASC 460, Guarantees.