Segment Information (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Financial Information by Reportable Segment

The following table is a summary of financial information by reportable segment for the affected periods:



Successor Ambac - Year Ended December 31, 2014	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	506,558		$	(179,691	)	$	408		$	—		$	327,275
Equity in net income of investees accounted for by equity method	—			—			1,395			—			1,395
Inter-segment	1,243			(1,197		)	23,299			(23,345		)	—
Total revenues	507,801			(180,888		)	25,102			(23,345		)	328,670
Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^(1)(2)(3)	684,750			(182,941		)	(9,951		)	—			491,858
Equity in net income of investees accounted for by equity method	—			—			1,395			—			1,395
Inter-segment	(25,443		)	(1,545		)	26,988			—			—
Pre-tax income (loss) from continuing operations	659,307			(184,486		)	18,432			—			493,253
Total assets as of December 31, 2014	24,444,514			436,072			279,278			—			25,159,864
Net investment income	298,020			1,123			1,803			—			300,946
Insurance intangible amortization	151,830			—			—			—			151,830
Interest expense	125,892			1,584			—			—			127,476
Reorganization items ⁽⁴⁾	$	—		$	—		$	211		$	—		$	211



Successor Ambac – Period from May 1 through December 31, 2013	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	464,701		$	116,177		$	170		$	—		$	581,048
Inter-segment	1,837			(1,210		)	219,181			(219,808		)	—
Total revenues	466,538			114,967			219,351			(219,808		)	581,048
Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2) (3)}	405,004			113,347			(6,035		)	—			512,316
Inter-segment	(220,218		)	(1,644		)	221,862			—			—
Pre-tax income (loss) from continuing operations	184,786			111,703			215,827			—			512,316
Total assets as of December 31, 2013	26,582,635			472,886			36,956			—			27,092,477
Net investment income	145,269			1,115			62			—			146,446
Insurance intangible amortization	99,658			—			—			—			99,658
Interest expense	83,595			1,355			—			—			84,950
Reorganization items ⁽⁴⁾	$	—		$	—		$	493		$	—		$	493



Predecessor Ambac - Period from January 1 through April 30, 2013	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	633,010		$	7,339		$	39		$	—		$	640,388
Inter-segment	940			(882		)	—			(58		)	—
Total revenues	633,950			6,457			39			(58		)	640,388
Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2) (3)}	1,831,237			3,394			1,513,402			—			3,348,033
Inter-segment	(132		)	(1,101		)	1,233			—			—
Pre-tax income (loss) from continuing operations	1,831,105			2,293			1,514,635			—			3,348,033
Total assets as of April 30, 2013	28,287,321			536,711			29,403			—			28,853,435
Net investment income	115,129			1,572			39			—			116,740
Interest expense	29,718			1,307			—			—			31,025
Reorganization items ⁽⁴⁾	$	(1,231,550	)	$	1,505		$	(1,515,135	)	$	—		$	(2,745,180	)



Predecessor Ambac - Year Ended December 31, 2012	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	758,331		$	(72,977	)	$	335		$	—		$	685,689
Inter-segment	5,189			(4,992		)	645			(842		)	—
Total revenues	763,520			(77,969		)	980			(842		)	685,689
Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2) (3)}	(162,797		)	(82,429		)	(11,279		)	—			(256,505		)
Inter-segment	580			(5,775		)	5,195			—			—
Pre-tax income (loss) from continuing operations	(162,217		)	(88,204		)	(6,084		)	—			(256,505		)
Total assets as of December 31, 2012	26,519,480			533,528			32,257			—			27,085,265
Net investment income	365,912			16,769			221			—			382,902
Interest expense	105,973			6,347			—			—			112,320
Reorganization items ⁽⁴⁾	$	—		$	—		$	7,215		$	—		$	7,215


(1)	Included in both revenues from unaffiliated customers and in pre-tax income (loss) from continuing operations from unaffiliated customers is net investment income.


(2)	Included in pre-tax income (loss) from continuing operations from unaffiliated customers is interest expense.


(3)	Included in pre-tax income (loss) from continuing operations from unaffiliated customers is amortization of intangible asset arising from financial guarantee contracts that were set to fair value upon adoption of Fresh Start.


(4)	Refer to Note 1. Background and Business Description, Reorganization under Chapter 11, for a further discussion of Reorganization items.

Schedule of Gross Premiums Written, Net Premiums Earned and Net Change in Fair Value of Credit Derivatives

The following table summarizes gross premiums written, net premiums earned and the net change in fair value of credit derivatives included in the Financial Guarantee segment by location of risk for the affected periods:



	Successor Ambac
	Year Ended December 31, 2014							Period from May 1 through December 31, 2013
	Gross Premiums Written			Net Premiums Earned		Net Change in Fair Value of Credit Derivatives		Gross Premiums Written			Net Premiums Earned		Net Change in Fair Value of Credit Derivatives
United States	$	(46,279	)	$	197,154	$	8,669	$	(61,255	)	$	165,099	$	122,696
United Kingdom	(221,516		)	31,672		—		(7,368		)	35,387		22,548
Other international	(20,515		)	17,534		15,237		(11,686		)	13,032		47,625
Total	$	(288,310	)	$	246,360	$	23,906	$	(80,309	)	$	213,518	$	192,869



	Predecessor Ambac
	Period from January1 through April 30, 2013								Year Ended December 31, 2012
	Gross Premiums Written			Net Premiums Earned		Net Change in Fair Value of Credit Derivatives			Gross Premiums Written			Net Premiums Earned		Net Change in Fair Value of Credit Derivatives
United States	$	(16,102	)	$	104,594	$	(31,134	)	$	(260,517	)	$	315,367	$	(8,496	)
United Kingdom	10,673			18,071		(5,861		)	10,785			73,955		(5,709		)
Other international	(8,696		)	7,335		(23,389		)	(27,776		)	25,282		4,986
Total	$	(14,125	)	$	130,000	$	(60,384	)	$	(277,508	)	$	414,604	$	(9,219	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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