financial guaranty insurance may be issued at the inception of an insured obligation or may be issued for the benefit of a holder of an obligation in the secondary market . we have provided financial guaranty credit protection through the issuance of a financial guaranty insurance policy , by insuring the obligations under a cds or through the reinsurance of such obligations . both a financial guaranty insurance policy and a cds provide the purchaser of such credit protection with a guaranty of the timely payment of interest and scheduled principal when due on a covered financial obligation , and in the case of most of our financial guaranty cdss , credit protection for amounts in excess of specified levels of losses . these forms of credit enhancement each require similar underwriting and surveillance . 91 in 2008 , in light of difficult market conditions and the downgrade of the financial strength ratings of our financial guaranty insurance subsidiaries , we discontinued writing any new financial guaranty business , other than as necessary to commute , restructure , hedge or otherwise mitigate losses or reduce exposure in our existing portfolio . since 2008 , we have significantly reduced our financial guaranty operations and have reduced our financial guaranty exposures through commutations in order to mitigate uncertainty , maximize the ultimate capital available for our mortgage insurance business and accelerate our access to that capital . in january 2012 , radian asset assurance entered into a three-part transaction ( the `` assured transaction `` ) with subsidiaries of assured guaranty ltd. ( collectively `` assured `` ) that included the following : the commutation of $ 13.8 billion of financial guaranty net par outstanding that was reinsured by radian asset assurance ( the `` assured commutation `` ) ; the ceding of $ 1.8 billion of direct public finance business to assured ( the `` assured cession `` ) ; and an agreement to sell to assured municipal and infrastructure assurance corporation ( the `` fg insurance shell `` ) , a new york domiciled financial guaranty insurance company with licenses to conduct business in 37 states and the district of columbia . radian asset assurance acquired the fg insurance shell in june 2011 in order to pursue potential strategic alternatives in the public finance market . we expect to complete the sale of the fg insurance shell in the first quarter of 2012 , subject to regulatory approval . this three-part transaction with assured reduced our financial guaranty net par outstanding by approximately 22.5 % and is expected to provide a statutory capital benefit to radian asset assurance of approximately $ 100 million in the first quarter of 2012. because radian asset assurance is a wholly-owned subsidiary of radian guaranty , this transaction will also provide a statutory capital benefit of $ 100 million to radian guaranty . this transaction is consistent with our strategic objectives of accelerating the reduction of our financial guaranty net par outstanding and strengthening the statutory capital positions of radian asset assurance and radian guaranty . following the assured transaction , on february 22 , 2012 , radian asset assurance agreed to terminate its arrangement with the national league of cities ( `` nlc `` ) to explore the formation of a new public finance mutual bond insurance company . the following table provides the expected impact on our consolidated financial statements in the first quarter of 2012 for the assured transaction . while we expect a statutory capital benefit as a result of this transaction as discussed above , under gaap this transaction will result in a reduction in net income , and therefore , a reduction in retained earnings . statement of operations ( in millions ) decrease in premiums written $ ( 119.8 ) decrease in net premiums earned $ ( 22.2 ) increase in change in fair value of derivative instruments—gain 0.1 increase in policy acquisition costs ( 15.7 ) gain on sale of affiliate 9.0 decrease in pre-tax income $ ( 28.8 ) balance sheet ( in millions ) decrease in : story_separator_special_tag number of claims that we are denying and the number of insurance certificates that we are rescinding due to fraud , underwriter negligence or other factors , including the impact of our recent experience regarding reinstatements of previously rescinded policies and denied claims . our current level of rescissions and denials remains elevated compared to historical levels , which we believe reflects the larger concentration of poorly underwritten loans ( primarily originated during 2005 through 2008 ) that are in our default inventory , as well as our extensive efforts to examine all claims for potential rescissions or denials . we expect the level of rescissions and denials to continue to remain elevated compared to historical levels as long as our 2005 through 2008 insurance policies comprise the majority of our default inventory . claims paid . total mortgage insurance claims paid in 2011 were $ 1.5 billion and include $ 90.5 million related to the termination of certain structured mortgage insurance transactions . as discussed above , foreclosure backlogs , servicer delays and loan modification programs have reduced the number of defaults going to claim . claims paid in 2011 were also affected by our internal claims payment process . beginning in 2011 , we increased the number of claims that were subject to review for potential violations of our insurance policies . we currently expect total claims paid for 2012 to be approximately $ 1.3 billion . 94 new insurance written . we wrote $ 15.5 billion of new mortgage insurance in 2011 , compared to $ 11.6 billion of insurance written in 2010 . the increase in 2011 compared to 2010 is mainly attributable to an increase in the penetration rate of private mortgage insurance in the overall insured mortgage market , as well as an increase in our share of the private mortgage market . story_separator_special_tag we established a valuation allowance against our deferred tax assets ( `` dta `` ) in the fourth quarter of 2010 , and as a result , our income tax expense was much less in 2011 compared to 2010. net premiums written and earned . net premiums written in 2011 increased slightly from 2010 , due to an increase in premiums written in the mortgage insurance segment . for 2011 , net premiums earned decreased in both our mortgage insurance and financial guaranty segments compared to 2010 . see “ results of operations—mortgage insurance—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net premiums written and earned ” and “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net premiums earned ” below for further information . net investment income . the decrease in net investment income during 2011 , compared to 2010 , was primarily due to a decline in our total investment balance due to negative cash flows , as well as a shift from higher yielding securities in our investment portfolio to lower yielding investments . our allocation to short-term and short duration investments remains high in anticipation of near-term claim payments in our mortgage insurance segment , and this allocation , combined with certain sales and subsequent reinvestment of longer duration securities in a low interest rate environment , resulted in a lower yield profile for the portfolio . net gains on investments . the components of the net gains on investments for the periods indicated are as follows : replace_table_token_41_th during the second quarter of 2011 , we sold all of our interests in certain bonds held in our available for sale portfolio that were issued as part of securitizations collateralized by the master settlement agreement ( `` msa `` ) among certain domestic tobacco manufacturers and 46 states and certain territories ( the `` tobacco bonds `` ) , realizing a loss on the sale of $ 53.7 million . these losses were more than offset by gains on sales of other securities in our trading portfolio for 2011 , as we took advantage of favorable market conditions allowing us to monetize the gains embedded in the investment portfolio through open market sales of securities . the proceeds from the asset sales were used for liquidity planning purposes or re-invested in similar assets . realized gains from these sales were also additive to the respective statutory capital positions of our subsidiaries that held the investments . in 2010 , a majority of our realized gains on investments occurred as a result of sales from our trading portfolio , in connection with the strategic repositioning of our investment portfolio from tax-advantaged securities to securities that provide taxable investment income . change in fair value of derivative instruments . the components of the gains ( losses ) included in change in fair value of derivative instruments for the years ended december 31 , 2011 , 2010 and 2009 are as follows : replace_table_token_42_th 99 see “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —change in fair value of derivative instruments ” below for further information . as a result of the consolidation in 2010 of certain vies in which we are the primary beneficiary , amounts that had previously been reported in change in fair value of derivative instruments are currently reported as change in fair value of vie debt , which is included in net gains ( losses ) on other financial instruments . the unrealized gains experienced during 2011 are primarily due to the significant widening of our cds spread , which widened by 2,267 basis points during the year , compared to spread tightening of 1,065 basis points in 2010. the unrealized losses experienced during 2010 were primarily due to the significant tightening of our cds spread . the five-year cds spread is presented below as an illustration of the market 's view of our non-performance risk ; the cds spread used in the valuation of specific fair value liabilities is typically based on the remaining term of the instrument . replace_table_token_43_th the following tables quantify the impact of our non-performance risk on our derivative assets , derivative liabilities , as well as net vie liabilities ( in aggregate by type , excluding assumed financial guaranty derivatives ) presented in our consolidated balance sheets . replace_table_token_44_th replace_table_token_45_th net gains ( losses ) on other financial instruments . the components of the net gains ( losses ) on other financial instruments for the periods indicated are as follows : replace_table_token_46_th 100 the results for 2011 and 2010 were mainly impacted by gains and losses on financial guaranty vie debt . the widening of radian group 's five-year cds spread was the dominant driver of the gains in 2011 , as discussed above . radian 's spread tightened during 2010 , resulting in losses reported during that time period . also impacting the results for 2011 were foreign currency translation gains resulting from the liquidation of a foreign subsidiary , which occurred during the second quarter of 2011. see “ results of operations—mortgage insurance—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net gains ( losses ) on other financial instruments ” and “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net gains ( losses ) on other financial instruments ” below for further information . gain on sale of affiliate . the gain on sale of affiliate for 2010 resulted from the sale of our remaining equity interest in sherman on may 3 , 2010. provision for losses . the provision for losses decreased during 2011 compared to 2010 , primarily due to decreases in both our mortgage insurance and financial guaranty provision for losses . see “ results of operations—mortgage insurance—year ended december 31

cash $ 92.3 deferred policy acquisition costs 26.2 accounts and notes receivable 1.1 derivative assets 0.6 unearned premiums 71.6 derivative liabilities 0.9 increase in other assets 19.0 92 financial guaranty exposure subject to recapture or termination . approximately $ 52.9 billion of our total net par outstanding as of december 31 , 2011 , ( representing 76.4 % of our financial guaranty segment 's total net par outstanding ) was subject to recapture or termination at the option of our primary reinsurance customers and financial guaranty credit derivative counterparties . in february 2012 , three of our cds counterparties exercised their termination rights with respect to 14 corporate collateralized debt obligations ( `` cdos '' ) that we insured ( the “ february 2012 cdo terminations ” ) . the february 2012 cdo terminations reduced our net par outstanding by $ 5.8 billion . after giving effect to the assured transaction and the february 2012 cdo terminations , approximately $ 33.3 billion of our total net par outstanding remains subject to recapture or termination at the option of our primary reinsurance customers and financial guaranty credit derivative counterparties . financial services prior to january 1 , 2011 , we also had a third segment—financial services . our financial services segment consisted mainly of our ownership interest in credit-based asset servicing and securitization llc ( `` c-bass '' ) , which was a credit-based consumer asset business . we wrote off our entire investment in c-bass in 2007. c-bass filed for chapter 11 bankruptcy protection on november 12 , 2010 , and was subsequently liquidated .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash $ 92.3 deferred policy acquisition costs 26.2 accounts and notes receivable 1.1 derivative assets 0.6 unearned premiums 71.6 derivative liabilities 0.9 increase in other assets 19.0 92 financial guaranty exposure subject to recapture or termination . approximately $ 52.9 billion of our total net par outstanding as of december 31 , 2011 , ( representing 76.4 % of our financial guaranty segment 's total net par outstanding ) was subject to recapture or termination at the option of our primary reinsurance customers and financial guaranty credit derivative counterparties . in february 2012 , three of our cds counterparties exercised their termination rights with respect to 14 corporate collateralized debt obligations ( `` cdos '' ) that we insured ( the “ february 2012 cdo terminations ” ) . the february 2012 cdo terminations reduced our net par outstanding by $ 5.8 billion . after giving effect to the assured transaction and the february 2012 cdo terminations , approximately $ 33.3 billion of our total net par outstanding remains subject to recapture or termination at the option of our primary reinsurance customers and financial guaranty credit derivative counterparties . financial services prior to january 1 , 2011 , we also had a third segment—financial services . our financial services segment consisted mainly of our ownership interest in credit-based asset servicing and securitization llc ( `` c-bass '' ) , which was a credit-based consumer asset business . we wrote off our entire investment in c-bass in 2007. c-bass filed for chapter 11 bankruptcy protection on november 12 , 2010 , and was subsequently liquidated .
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 Suspicious Activity Report : financial guaranty insurance may be issued at the inception of an insured obligation or may be issued for the benefit of a holder of an obligation in the secondary market . we have provided financial guaranty credit protection through the issuance of a financial guaranty insurance policy , by insuring the obligations under a cds or through the reinsurance of such obligations . both a financial guaranty insurance policy and a cds provide the purchaser of such credit protection with a guaranty of the timely payment of interest and scheduled principal when due on a covered financial obligation , and in the case of most of our financial guaranty cdss , credit protection for amounts in excess of specified levels of losses . these forms of credit enhancement each require similar underwriting and surveillance . 91 in 2008 , in light of difficult market conditions and the downgrade of the financial strength ratings of our financial guaranty insurance subsidiaries , we discontinued writing any new financial guaranty business , other than as necessary to commute , restructure , hedge or otherwise mitigate losses or reduce exposure in our existing portfolio . since 2008 , we have significantly reduced our financial guaranty operations and have reduced our financial guaranty exposures through commutations in order to mitigate uncertainty , maximize the ultimate capital available for our mortgage insurance business and accelerate our access to that capital . in january 2012 , radian asset assurance entered into a three-part transaction ( the `` assured transaction `` ) with subsidiaries of assured guaranty ltd. ( collectively `` assured `` ) that included the following : the commutation of $ 13.8 billion of financial guaranty net par outstanding that was reinsured by radian asset assurance ( the `` assured commutation `` ) ; the ceding of $ 1.8 billion of direct public finance business to assured ( the `` assured cession `` ) ; and an agreement to sell to assured municipal and infrastructure assurance corporation ( the `` fg insurance shell `` ) , a new york domiciled financial guaranty insurance company with licenses to conduct business in 37 states and the district of columbia . radian asset assurance acquired the fg insurance shell in june 2011 in order to pursue potential strategic alternatives in the public finance market . we expect to complete the sale of the fg insurance shell in the first quarter of 2012 , subject to regulatory approval . this three-part transaction with assured reduced our financial guaranty net par outstanding by approximately 22.5 % and is expected to provide a statutory capital benefit to radian asset assurance of approximately $ 100 million in the first quarter of 2012. because radian asset assurance is a wholly-owned subsidiary of radian guaranty , this transaction will also provide a statutory capital benefit of $ 100 million to radian guaranty . this transaction is consistent with our strategic objectives of accelerating the reduction of our financial guaranty net par outstanding and strengthening the statutory capital positions of radian asset assurance and radian guaranty . following the assured transaction , on february 22 , 2012 , radian asset assurance agreed to terminate its arrangement with the national league of cities ( `` nlc `` ) to explore the formation of a new public finance mutual bond insurance company . the following table provides the expected impact on our consolidated financial statements in the first quarter of 2012 for the assured transaction . while we expect a statutory capital benefit as a result of this transaction as discussed above , under gaap this transaction will result in a reduction in net income , and therefore , a reduction in retained earnings . statement of operations ( in millions ) decrease in premiums written $ ( 119.8 ) decrease in net premiums earned $ ( 22.2 ) increase in change in fair value of derivative instruments—gain 0.1 increase in policy acquisition costs ( 15.7 ) gain on sale of affiliate 9.0 decrease in pre-tax income $ ( 28.8 ) balance sheet ( in millions ) decrease in : story_separator_special_tag number of claims that we are denying and the number of insurance certificates that we are rescinding due to fraud , underwriter negligence or other factors , including the impact of our recent experience regarding reinstatements of previously rescinded policies and denied claims . our current level of rescissions and denials remains elevated compared to historical levels , which we believe reflects the larger concentration of poorly underwritten loans ( primarily originated during 2005 through 2008 ) that are in our default inventory , as well as our extensive efforts to examine all claims for potential rescissions or denials . we expect the level of rescissions and denials to continue to remain elevated compared to historical levels as long as our 2005 through 2008 insurance policies comprise the majority of our default inventory . claims paid . total mortgage insurance claims paid in 2011 were $ 1.5 billion and include $ 90.5 million related to the termination of certain structured mortgage insurance transactions . as discussed above , foreclosure backlogs , servicer delays and loan modification programs have reduced the number of defaults going to claim . claims paid in 2011 were also affected by our internal claims payment process . beginning in 2011 , we increased the number of claims that were subject to review for potential violations of our insurance policies . we currently expect total claims paid for 2012 to be approximately $ 1.3 billion . 94 new insurance written . we wrote $ 15.5 billion of new mortgage insurance in 2011 , compared to $ 11.6 billion of insurance written in 2010 . the increase in 2011 compared to 2010 is mainly attributable to an increase in the penetration rate of private mortgage insurance in the overall insured mortgage market , as well as an increase in our share of the private mortgage market . story_separator_special_tag we established a valuation allowance against our deferred tax assets ( `` dta `` ) in the fourth quarter of 2010 , and as a result , our income tax expense was much less in 2011 compared to 2010. net premiums written and earned . net premiums written in 2011 increased slightly from 2010 , due to an increase in premiums written in the mortgage insurance segment . for 2011 , net premiums earned decreased in both our mortgage insurance and financial guaranty segments compared to 2010 . see “ results of operations—mortgage insurance—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net premiums written and earned ” and “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net premiums earned ” below for further information . net investment income . the decrease in net investment income during 2011 , compared to 2010 , was primarily due to a decline in our total investment balance due to negative cash flows , as well as a shift from higher yielding securities in our investment portfolio to lower yielding investments . our allocation to short-term and short duration investments remains high in anticipation of near-term claim payments in our mortgage insurance segment , and this allocation , combined with certain sales and subsequent reinvestment of longer duration securities in a low interest rate environment , resulted in a lower yield profile for the portfolio . net gains on investments . the components of the net gains on investments for the periods indicated are as follows : replace_table_token_41_th during the second quarter of 2011 , we sold all of our interests in certain bonds held in our available for sale portfolio that were issued as part of securitizations collateralized by the master settlement agreement ( `` msa `` ) among certain domestic tobacco manufacturers and 46 states and certain territories ( the `` tobacco bonds `` ) , realizing a loss on the sale of $ 53.7 million . these losses were more than offset by gains on sales of other securities in our trading portfolio for 2011 , as we took advantage of favorable market conditions allowing us to monetize the gains embedded in the investment portfolio through open market sales of securities . the proceeds from the asset sales were used for liquidity planning purposes or re-invested in similar assets . realized gains from these sales were also additive to the respective statutory capital positions of our subsidiaries that held the investments . in 2010 , a majority of our realized gains on investments occurred as a result of sales from our trading portfolio , in connection with the strategic repositioning of our investment portfolio from tax-advantaged securities to securities that provide taxable investment income . change in fair value of derivative instruments . the components of the gains ( losses ) included in change in fair value of derivative instruments for the years ended december 31 , 2011 , 2010 and 2009 are as follows : replace_table_token_42_th 99 see “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —change in fair value of derivative instruments ” below for further information . as a result of the consolidation in 2010 of certain vies in which we are the primary beneficiary , amounts that had previously been reported in change in fair value of derivative instruments are currently reported as change in fair value of vie debt , which is included in net gains ( losses ) on other financial instruments . the unrealized gains experienced during 2011 are primarily due to the significant widening of our cds spread , which widened by 2,267 basis points during the year , compared to spread tightening of 1,065 basis points in 2010. the unrealized losses experienced during 2010 were primarily due to the significant tightening of our cds spread . the five-year cds spread is presented below as an illustration of the market 's view of our non-performance risk ; the cds spread used in the valuation of specific fair value liabilities is typically based on the remaining term of the instrument . replace_table_token_43_th the following tables quantify the impact of our non-performance risk on our derivative assets , derivative liabilities , as well as net vie liabilities ( in aggregate by type , excluding assumed financial guaranty derivatives ) presented in our consolidated balance sheets . replace_table_token_44_th replace_table_token_45_th net gains ( losses ) on other financial instruments . the components of the net gains ( losses ) on other financial instruments for the periods indicated are as follows : replace_table_token_46_th 100 the results for 2011 and 2010 were mainly impacted by gains and losses on financial guaranty vie debt . the widening of radian group 's five-year cds spread was the dominant driver of the gains in 2011 , as discussed above . radian 's spread tightened during 2010 , resulting in losses reported during that time period . also impacting the results for 2011 were foreign currency translation gains resulting from the liquidation of a foreign subsidiary , which occurred during the second quarter of 2011. see “ results of operations—mortgage insurance—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net gains ( losses ) on other financial instruments ” and “ results of operations—financial guaranty—year ended december 31 , 2011 compared to year ended december 31 , 2010 —net gains ( losses ) on other financial instruments ” below for further information . gain on sale of affiliate . the gain on sale of affiliate for 2010 resulted from the sale of our remaining equity interest in sherman on may 3 , 2010. provision for losses . the provision for losses decreased during 2011 compared to 2010 , primarily due to decreases in both our mortgage insurance and financial guaranty provision for losses . see “ results of operations—mortgage insurance—year ended december 31

