Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) The following tables provide a summary of our maximum exposure to losses and the financial impact on our consolidated  balance sheets, our consolidated statements of operations and our consolidated statements of cash flows as of and for the  periods indicated, as it relates to our consolidated and unconsolidated financial guaranty insurance contracts and credit  derivative VIEs: _______________ (1)  The difference between the carrying amounts of the net asset/liability position and maximum exposure related to  VIEs  is primarily due to the difference between the face amount of the obligation and the recorded fair values, which  include an adjustment for our non-performance risk, as applicable. For those  VIEs that have recourse to our general  credit, the maximum exposure is based on the net par amount of our insured obligation. For any  VIEs that do not have  recourse to our general credit, the maximum exposure is generally based on the recorded net assets of the  VIE, as of  the reporting date. Consolidated Unconsolidated Year Ended December 31, Year Ended December 31, (In thousands) 2012 2011 2010 2012 2011 2010 Statement of Operations: Premiums earned . . . . . . . . . . . . . . . $ — $ — $ — $ 2,087 $ 2,648 $ 2,836 Net investment income . . . . . . . . . . 3,362 8,696 10,927 — — — Net (loss) gain on investments . . . . (1,205) 14,746 — — — — Change in fair value of derivative instruments—gain (loss) . . . . . . . . . 1,189 (10,696) (14,523) (168,255) 511,202 (478,285) Net (loss) gain on other financial instruments . . . . . . . . . . . . . . . . . . . (90,071) 155,507 (143,555) — — — Provision for losses—increase  (decrease) . . . . . . . . . . . . . . . . . . . . — — — 5,930 (6,015) 6,536 Other operating expenses . . . . . . . . 2,332 3,090 3,487 — — — Net Cash (Outflow) Inflow . . . . . . . . . . (134,509) 823 830 (68,990) 7,620 (32,077) Consolidated Unconsolidated December 31, December 31, (In thousands) 2012 2011 2012 2011 Balance Sheet: Trading securities . . . . . . . . . . . . . . . . . . . $ 78,006 $ 94,521 $ — $ — Derivative assets . . . . . . . . . . . . . . . . . . . . — — 3,201 4,090 Premiums receivable . . . . . . . . . . . . . . . . . — — 2,859 3,584 Other assets . . . . . . . . . . . . . . . . . . . . . . . . 99,337 105,885 — — Unearned premiums . . . . . . . . . . . . . . . . . — — 2,513 3,793 Reserve for losses and LAE . . . . . . . . . . . — — 14,376 7,909 Derivative liabilities . . . . . . . . . . . . . . . . . 70,467 19,501 175,781 79,473 VIE debt—at fair value . . . . . . . . . . . . . . . 98,983 218,790 — — Accounts payable and accrued expenses . . 365 530 — — Maximum exposure (1) . . . . . . . . . . . . . . . . . . 120,939 579,988 5,096,718 6,126,337 211