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Financial Guarantee Insurance Contracts (Tables)
 12 Months Ended
Dec. 31, 2017
Insurance [Line Items]  
Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts)
Below is the gross premium receivable roll-forward (direct and assumed contracts) for the affected periods:
Year Ended December 31,
2017
 
2016
 
2015
Beginning premium receivable
$
661,337

 
$
831,575

 
$
1,000,607

Premium receipts
(81,597
)
 
(77,038
)
 
(108,029
)
Adjustments for changes in expected and contractual cash flows
(30,334
)
 
(78,528
)
 
(64,740
)
Accretion of premium receivable discount
16,162

 
18,637

 
24,628

Changes to uncollectable premiums
(141
)
 
6,054

 
2,540

Other adjustments (including foreign exchange)
20,885

 
(39,363
)
 
(23,431
)
Ending premium receivable (1)
$
586,312

 
$
661,337

 
$
831,575
Schedule Of Reinsurance Recoverable And Provision By Category Of Reinsurer [Table Text Block]
The following table represents the percentage ceded to reinsurers and reinsurance recoverable at December 31, 2017 and its rating levels obtained from each reinsurers website as of February 27, 2018:
Reinsurers
Moody’s
Rating
 
Percentage
Ceded Par
 
Net Unsecured
Reinsurance
Recoverable(1)
Assured Guaranty Re Ltd
NR
 
82.9%
 
$
—

Assured Guaranty Corporation
A3
 
9.2
 
—

Sompo Japan Nipponkoa Insurance, Inc.
A1
 
7.9
 
—

Total
 
 
100%
 
$
—

(1)
Represents reinsurance recoverables on paid and unpaid losses and deferred ceded premiums, net of ceded premium payables due to reinsurers, letters of credit, and collateral posted for the benefit of Ambac Assurance.
Effect of Reinsurance on Premiums Written and Earned
The effect of reinsurance on premiums written and earned was as follows:
 
2017
 
2016
 
2015
Year Ended December 31,
Written
 
Earned
 
Written
 
Earned
 
Written
 
Earned
Direct
$
(14,313
)
 
$
190,496

 
$
(53,837
)
 
$
215,564

 
$
(37,572
)
 
$
336,025

Assumed
—

 
106

 
—

 
85

 
—

 
87

Ceded
(2,104
)
 
15,325

 
(8,772
)
 
18,362

 
(3,001
)
 
23,517

Net premiums
$
(12,209
)
 
$
175,277

 
$
(45,065
)
 
$
197,287

 
$
(34,571
)
 
$
312,595
Summarized Future Gross Undiscounted Premiums Expected to be Collected and Future Expected Premiums Earned, Net of Reinsurance
The table below summarizes the future gross undiscounted premiums to be collected and future premiums earned, net of reinsurance at December 31, 2017:
 
Future Premiums
to be
Collected (1)
 
Future
Premiums
to be
Earned Net of
Reinsurance (1)
Three months ended:
 
 
 
March 31, 2018
$
16,923

 
$
17,561

June 30, 2018
13,801

 
17,294

September 30, 2018
14,779

 
16,604

December 31, 2018
13,282

 
16,150

Twelve months ended:
 
 
 
December 31, 2019
55,203

 
61,368

December 31, 2020
52,282

 
57,263

December 31, 2021
45,848

 
52,149

December 31, 2022
43,678

 
48,447

Five years ended:
 
 
 
December 31, 2027
193,190

 
197,446

December 31, 2032
150,385

 
131,682

December 31, 2037
82,597

 
72,520

December 31, 2042
29,169

 
24,833

December 31, 2047
13,599

 
12,694

December 31, 2052
3,586

 
4,651

December 31, 2057
92

 
298

Total
$
728,414

 
$
730,960

(1)
Future premiums to be collected are undiscounted and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable as further described in Note 2. Basis of Presentation and Significant Accounting Policies. This results in a different premium receivable balance than if expected lives were considered. If installment paying policies are retired or prepay early, premiums reflected in the premium receivable asset and amounts reported in the above table for such policies may not be collected. Future premiums to be earned also considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral, which may result in different unearned premium than if expected lives were considered. If those bonds types are retired early, premium earnings may be negative in the period of call or refinancing.
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table [Table Text Block]
Below are the components of the Loss and loss expense reserves liability and the Subrogation recoverable asset at December 31, 2017 and 2016:
 
Unpaid Claims
 
Present Value of Expected
Net Cash Flows
 
 
 
 
Balance Sheet Line Item
Claims
 
Accrued
Interest
 
Claims and
Loss Expenses
 
Recoveries
 
Unearned
Premium
Revenue
 
Gross Loss and
Loss Expense
Reserves
December 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense reserves
$
2,411,632

 
$
667,988

 
$
2,855,010

 
$
(1,054,113
)
 
$
(135,502
)
 
$
4,745,015

Subrogation recoverable
615,391

 
171,755

 
102,171

 
(1,520,530
)
 
—

 
(631,213
)
Totals
$
3,027,023

 
$
839,743

 
$
2,957,181

 
$
(2,574,643
)
 
$
(135,502
)
 
$
4,113,802

 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
Loss and loss expense reserves
$
2,411,105

 
$
529,703

 
$
2,681,198

 
$
(1,098,096
)
 
$
(143,141
)
 
$
4,380,769

Subrogation recoverable
583,042

 
132,139

 
68,419

 
(1,468,331
)
 
—

 
(684,731
)
Totals
$
2,994,147

 
$
661,842

 
$
2,749,617

 
$
(2,566,427
)
 
$
(143,141
)
 
$
3,696,038
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance
Below is the loss and loss expense reserve roll-forward, net of subrogation recoverable and reinsurance, for the affected periods.
Year Ended December 31,
2017
 
2016
 
2015
Beginning gross loss and loss expense reserves
$
3,696,038

 
$
2,858,813

 
$
3,798,733

Reinsurance recoverable
30,767

 
44,059

 
100,355

Beginning balance of net loss and loss expense reserves
$
3,665,271

 
$
2,814,754

 
$
3,698,378

Losses and loss expenses (benefit) incurred:
 
 
 
 
 
Current year
5,691

 
6,675

 
1,183

Prior years
507,495

 
(18,164
)
 
(769,890
)
Total (1)(2)
513,186

 
(11,489
)
 
(768,707
)
Loss and loss expenses (recovered) paid:
 
 
 
 
 
Current year
825

 
5,371

 
—

Prior years
133,427

 
(944,955
)
 
90,086

Total
134,252

 
(939,584
)
 
90,086

Foreign exchange effect
28,939

 
(77,578
)
 
(24,831
)
Ending net loss and loss expense reserves
$
4,073,144

 
$
3,665,271

 
$
2,814,754

Reinsurance recoverable (3)
40,658

 
30,767

 
44,059

Ending gross loss and loss expense reserves (4)
$
4,113,802

 
$
3,696,038

 
$
2,858,813


(1)
Total losses and loss expenses (benefit) includes $(20,348), $5,421 and $47,085 for the years ended December 31, 2017, 2016 and 2015, respectively, related to ceded reinsurance.
(2)
Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain R&Ws within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated representation and warranties for the year ended December 31, 2017, 2016 and 2015 was $72,003, $(71,369) and $(303,633), respectively.
(3)
Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $339, $(349) and $(60) as of December 31, 2017, 2016 and 2015, respectively, related to previously presented loss and loss expenses and subrogation.
(4)
Includes Euro denominated gross loss and loss expense reserves of $21,116 (€17,582), $21,375 (€20,297) and $19,019 (€17,515) at December 31, 2017, 2016 and 2015, respectively.
Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable
The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at December 31, 2017 and 2016. Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at December 31, 2017 and 2016 was 2.5% and 2.7%, respectively.
 
 
Surveillance Categories as of December 31, 2017
 
 
I
 
IA
 
II
 
III
 
IV
 
V
 
Total
Number of policies
 
26

 
20

 
26

 
22

 
179

 
4

 
277

Remaining weighted-average contract period (in years) (1)
 
10

 
23

 
10

 
24

 
13

 
4

 
17

Gross insured contractual payments outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
$
1,046,267

 
$
531,190

 
$
1,199,909

 
$
1,998,861

 
$
6,862,281

 
$
48,562

 
$
11,687,070

Interest
 
531,657

 
584,098

 
413,045

 
7,182,715

 
2,469,765

 
16,332

 
11,197,612

Total
 
$
1,577,924

 
$
1,115,288

 
$
1,612,954

 
$
9,181,576

 
$
9,332,046

 
$
64,894

 
$
22,884,682

Gross undiscounted claim liability (2)
 
$
4,434

 
$
56,659

 
$
77,289

 
$
1,412,976

 
$
6,409,340

 
$
64,863

 
$
8,025,561

Discount, gross claim liability
 
(465
)
 
(13,095
)
 
(12,250
)
 
(643,897
)
 
(616,559
)
 
(4,739
)
 
(1,291,005
)
Gross claim liability before all subrogation and before reinsurance
 
$
3,969

 
$
43,564

 
$
65,039

 
$
769,079

 
$
5,792,781

 
$
60,124

 
$
6,734,556

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross RMBS subrogation (3)
 
—

 
—

 
—

 
—

 
(1,857,502
)
 
—

 
(1,857,502
)
Discount, RMBS subrogation
 
—

 
—

 
—

 
—

 
23,115

 
—

 
23,115

Discounted RMBS subrogation, before reinsurance
 
—

 
—

 
—

 
—

 
(1,834,387
)
 
—

 
(1,834,387
)
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross other subrogation (4)
 
—

 
(7,990
)
 
(9,371
)
 
(53,070
)
 
(743,456
)
 
(13,191
)
 
(827,078
)
Discount, other subrogation
 
—

 
5,169

 
2,550

 
8,349

 
67,045

 
3,709

 
86,822

Discounted other subrogation, before reinsurance
 
—

 
(2,821
)
 
(6,821
)
 
(44,721
)
 
(676,411
)
 
(9,482
)
 
(740,256
)
Gross claim liability, net of all subrogation and discounts, before reinsurance
 
$
3,969

 
$
40,743

 
$
58,218

 
$
724,358

 
$
3,281,983

 
$
50,642

 
$
4,159,913

Less: Unearned premium revenue
 
(2,126
)
 
(9,990
)
 
(12,238
)
 
(46,086
)
 
(64,786
)
 
(276
)
 
(135,502
)
Plus: Loss expense reserves
 
16,116

 
3,242

 
665

 
13,331

 
56,037

 
—

 
89,391

Gross loss and loss expense reserves
 
$
17,959

 
$
33,995

 
$
46,645

 
$
691,603

 
$
3,273,234

 
$
50,366

 
$
4,113,802

Reinsurance recoverable reported on Balance Sheet (5)
 
$
202

 
$
4,894

 
$
9,424

 
$
38,465

 
$
(11,988
)
 
$
—

 
$
40,997

(1)
Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)
Gross undiscounted claim liability includes unpaid claims, including accrued interest on Deferred Amounts, on policies allocated to the Segregated Account and Ambac's estimate of expected future claims.
(3)
RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for representation and warranty ("R&W") breaches.
(4)
Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions including RMBS.
(5)
Reinsurance recoverable reported on Balance Sheet includes reinsurance recoverables of $40,658 related to future loss and loss expenses and $339 related to presented loss and loss expenses and subrogation.
 
 
Surveillance Categories as of December 31, 2016
 
 
I
 
IA
 
II
 
III
 
IV
 
V
 
Total
Number of policies
 
19

 
22

 
26

 
43

 
169

 
3

 
282

Remaining weighted-average contract period (in years) (1)
 
9

 
8

 
30

 
17

 
14

 
5

 
16

Gross insured contractual payments outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
$
918,456

 
$
733,036

 
$
1,992,543

 
$
1,779,889

 
$
7,926,991

 
$
49,247

 
$
13,400,162

Interest
 
345,802

 
199,631

 
7,080,969

 
1,110,051

 
2,275,421

 
14,185

 
11,026,059

Total
 
$
1,264,258

 
$
932,667

 
$
9,073,512

 
$
2,889,940

 
$
10,202,412

 
$
63,432

 
$
24,426,221

Gross undiscounted claim liability (2)
 
$
3,439

 
$
21,175

 
$
547,550

 
$
861,455

 
$
6,139,060

 
$
63,431

 
$
7,636,110

Discount, gross claim liability
 
(314
)
 
(1,243
)
 
(331,234
)
 
(256,108
)
 
(710,608
)
 
(5,859
)
 
(1,305,366
)
Gross claim liability before all subrogation and before reinsurance
 
$
3,125

 
$
19,932

 
$
216,316

 
$
605,347

 
$
5,428,452

 
$
57,572

 
$
6,330,744

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross RMBS subrogation (3)
 
—

 
—

 
—

 
—

 
(1,926,165
)
 
—

 
(1,926,165
)
Discount, RMBS subrogation
 
—

 
—

 
—

 
—

 
19,130

 
—

 
19,130

Discounted RMBS subrogation, before reinsurance
 
—

 
—

 
—

 
—

 
(1,907,035
)
 
—

 
(1,907,035
)
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross other subrogation (4)
 
—

 
—

 
(14,529
)
 
(118,272
)
 
(593,919
)
 
(12,751
)
 
(739,471
)
Discount, other subrogation
 
—

 
—

 
6,526

 
13,426

 
56,273

 
3,854

 
80,079

Discounted other subrogation, before reinsurance
 
—

 
—

 
(8,003
)
 
(104,846
)
 
(537,646
)
 
(8,897
)
 
(659,392
)
Gross claim liability, net of all subrogation and discounts, before reinsurance
 
$
3,125

 
$
19,932

 
$
208,313

 
$
500,501

 
$
2,983,771

 
$
48,675

 
$
3,764,317

Less: Unearned premium revenue
 
(2,394
)
 
(1,807
)
 
(49,578
)
 
(31,785
)
 
(57,194
)
 
(383
)
 
(143,141
)
Plus: Loss expense reserves
 
6,621

 
339

 
777

 
11,036

 
56,089

 
—

 
74,862

Gross loss and loss expense reserves
 
$
7,352

 
$
18,464

 
$
159,512

 
$
479,752

 
$
2,982,666

 
$
48,292

 
$
3,696,038

Reinsurance recoverable reported on Balance Sheet (5)
 
$
120

 
$
6,063

 
$
2,737

 
$
39,352

 
$
(17,854
)
 
$
—

 
$
30,418

(1)
Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)
Gross undiscounted claim liability includes unpaid claims, including accrued interest on Deferred Amounts, on policies allocated to the Segregated Account and Ambac's estimate of expected future claims.
(3)
RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches.
(4)
Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS.
(5)
Reinsurance recoverable reported on Balance Sheet includes reinsurance recoverables of $30,767 related to future loss and loss expenses and $(349) related to presented loss and loss expenses and subrogation.
Summary of Balance of Subrogation Recoveries and Related Claim Liabilities, by Estimation Approach
The balance of R&W subrogation recoveries and the related loss reserves at December 31, 2017 and 2016, are as follows:
 
Gross loss
reserves before
subrogation
recoveries (1)
 
Subrogation
recoveries (2)(3)
 
Gross loss
reserves after
subrogation
recoveries
At December 31, 2017
$
1,366,483

 
$
(1,834,387
)
 
$
(467,904
)
 
 
 
 
 
 
At December 31, 2016
$
1,351,640

 
$
(1,907,035
)
 
$
(555,395
)
(1)
Amount represents gross loss reserves for policies that have established a representation and warranty subrogation recovery. Includes unpaid RMBS claims, including accrued interest on Deferred Amounts, on policies allocated to the Segregated Account.
(2)
The amount of recorded subrogation recoveries related to each securitization is limited to ever-to-date paid and unpaid losses plus the present value of expected future cash flows for each policy. To the extent losses have been paid but not yet fully recovered, the recorded amount of R&W subrogation recoveries may exceed the sum of the unpaid claims and the present value of expected cash flows for a given policy. The net cash inflow for these policies is recorded as a “Subrogation recoverable” asset. For those transactions where the subrogation recovery is less than the sum of unpaid claims and the present value of expected cash flows, the net cash outflow for these policies is recorded as a “Loss and loss expense reserves” liability.
(3)
The sponsor’s repurchase obligation may differ depending on the terms of the particular transaction and the status of the specific loan, such as whether it is performing or has been liquidated or charged off.
Summary of Rollforward of RMBS Subrogation, by Estimation Approach
Below is the rollforward of R&W subrogation for the affected periods:
Year ended December 31,
2017
 
2016
 
2015
Discounted RMBS subrogation (gross of reinsurance) at beginning of year
$
1,907,035

 
$
2,829,575

 
$
2,523,540

Impact of sponsor actions (1)
—

 
(995,000
)
 
—

All other changes (2)
(72,648
)
 
72,460

 
306,035

Discounted RMBS subrogation (gross of reinsurance) at end of year
$
1,834,387

 
$
1,907,035

 
$
2,829,575

(1)
Sponsor actions include loan repurchases, direct payments to Ambac and other contributions from sponsors. In January 2016, Ambac Assurance settled its RMBS-related disputes and litigation against JP Morgan Chase & Co. and certain of its affiliates (collectively "JP Morgan"). Pursuant to the settlement, JP Morgan paid Ambac Assurance $995,000 in cash in return for releases of all of Ambac Assurance's claims against JP Morgan arising from certain RMBS transactions insured by Ambac Assurance. Ambac Assurance also agreed to withdraw its objections to JP Morgan's global RMBS settlement with RMBS trustees.
(2)
All other changes which may impact R&W subrogation recoveries include changes in actual or projected collateral performance, changes in the creditworthiness of a sponsor and/or the projected timing of recoveries. All other changes may also include estimates of potential sponsor settlements that may not have been subject to a sampling approach or have been executed but the settlement amounts have not yet been received. Those that have not been subject to a sampling approach are not material to Ambac’s financial results and therefore are included in this table.
Insurance Intangible Asset [Member]  
Insurance [Line Items]  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]
The estimated future amortization expense for the net insurance intangible asset is as follows:
Future Insurance Intangible Amortization (1)
2018
 
2019
 
2020
 
2021
 
2022
 
Thereafter
$
76,638

 
$
69,082

 
$
63,892

 
$
58,207

 
$
53,908

 
$
525,246


(1)
The insurance intangible asset will be amortized using a level yield method based on par exposure of the related financial guarantee insurance or reinsurance contracts as described in Note 2. Basis of Presentation and Significant Accounting Policies. As exposures are called or prepay, amortization of the insurance intangible asset will be recognized earlier and the timing will differ from the amounts provided in the table above.