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## 20. Quarterly Financial Data (Unaudited) 

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(1) The 2012 and 2011 periods reflect realized gains and losses on investments in connection with the continued reallocation of our investment portfolio and unrealized gains and losses on our trading securities. 

(2) The change in fair value of derivative instruments for 2012 and 2011 reflects the volatility in the cumulative unrealized (loss) gain attributable to the market’ s perception of our non-performance risk as a result of the changes in our CDS spread during both years. There was minimal spread tightening in the fourth quarter of 2012. 

(3) The 2012 and 2011 periods primarily reflect fair value gains and losses on our VIE debt. 

(4) The results for the fourth quarter of 2012 include the ef fects of an increase in our IBNR reserve estimate. The provision for losses in the fourth quarter of 201 1 was primarily driven by reserves established on new default notices, which increased consistent with seasonal trends. 

(5) Net income in the third quarter of 2012 reflects increased gains on investments and a decline in the provision for losses in our mortgage insurance segment. The net loss for the fourth quarter of 201 1 was primarily due to an increase in both the mortgage insurance and financial guaranty provision for losses. 

(6) Diluted net (loss) income per share and average shares outstanding per the accounting standard regarding earnings per share. 

(7) Net (loss) income per share is computed independently for each period presented. Consequently , the sum of the quarters may not equal the total net (loss) income per share for the year . 

