Commitments and Contingencies (a) Financial Guarantee Exposures A summary of the Company's outstanding financial guarantee exposures at June 30, 2014 and December 31, 2013 is as follows: Financial Guarantee Exposure Summary (U.S. dollars in thousands except number of contracts and term to maturity) June 30, 2014 December 31, 2013 Opening number of financial guarantee contracts 3 4 Number of financial guarantee contracts matured, prepaid or commuted during the period   (1 ) Closing number of financial guarantee contracts 3 3 Principal outstanding $ 108,255 $ 108,255 Interest outstanding $   $   Aggregate exposure outstanding $ 108,255 $ 108,255 Total gross claim liability recorded $   $   Total unearned premiums and fees recorded $ 61 $ 134 Weighted average contractual term to maturity in years 25.6 26.0 The Company's outstanding financial guarantee contracts at June 30, 2014 provide credit support for a variety of collateral types with the exposures comprised of an aggregate $108.3 million notional financial guarantee on three notes backed by zero coupon long dated bonds and bank perpetual securities, including some issued by European financials. Surveillance procedures to track and monitor credit deteriorations in the insured financial obligations are performed by the primary obligors for each transaction on the Company's behalf. Information regarding the performance status and updated exposure values is provided to the Company on a quarterly basis and evaluated by management in recording claims reserves. At June 30, 2014 , there were no reported events of default on these obligations. (b) Litigation The Company and its subsidiaries are subject to litigation and arbitration in the normal course of business. These lawsuits and arbitrations principally involve claims on policies of insurance and contracts of reinsurance and are typical for the Company and for the property and casualty insurance and reinsurance industry in general. Such claims proceedings are considered in connection with the Company's loss and los