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Financial Guarantee Insurance Contracts (Tables)
 6 Months Ended
Jun. 30, 2019
Insurance [Line Items]  
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 June 30, 2019 and December 31, 2018:
 
 
Present Value of Expected
Net Cash Flows
 
Unearned
Premium
Revenue
 
Gross Loss and
Loss Expense
Reserves
Balance Sheet Line Item
 
Claims and
Loss Expenses
 
Recoveries
 
 
June 30, 2019:
 
 
 
 
 
 
 
 
Loss and loss expense reserves
 
$
1,828,116

 
$
(273,597
)
 
$
(60,413
)
 
$
1,494,106

Subrogation recoverable
 
157,307

 
(2,142,133
)
 
—

 
(1,984,826
)
Totals
 
$
1,985,423

 
$
(2,415,730
)
 
$
(60,413
)
 
$
(490,720
)
 
 
 
 
 
 
 
 
 
December 31, 2018:
 
 
 
 
 
 
 
 
Loss and loss expense reserves
 
$
2,246,335

 
$
(313,595
)
 
$
(106,662
)
 
$
1,826,078

Subrogation recoverable
 
175,694

 
(2,108,654
)
 
—

 
(1,932,960
)
Totals
 
$
2,422,029

 
$
(2,422,249
)
 
$
(106,662
)
 
$
(106,882
)
Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts)
Below is the gross premium receivable roll-forward for the affected periods:
 
 
Six Months Ended June 30,
 
 
2019
 
2018
Beginning premium receivable
 
$
495,391

 
$
586,312

Premium receipts
 
(25,693
)
 
(29,822
)
Adjustments for changes in expected and contractual cash flows (1)
 
(22,310
)
 
(5,066
)
Accretion of premium receivable discount
 
6,206

 
7,627

Changes to uncollectable premiums
 
(1,155
)
 
(11
)
Other adjustments (including foreign exchange)
 
(10,913
)
 
(5,082
)
Ending premium receivable (2)
 
$
441,526

 
$
553,958


(1)
Adjustments for changes in expected and contractual cash flows primarily due to reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns.
(2)
Premium receivable includes premiums to be received in foreign denominated currencies most notably in British Pounds and Euros. At June 30, 2019 and 2018, premium receivables include British Pounds of $137,137 (£107,974) and $151,316 (£114,729), respectively, and Euros of $28,367 (€24,941) and $33,114 (€28,380), respectively.
Effect of Reinsurance on Premiums Written and Earned
The effect of reinsurance on premiums written and earned for the respective periods was as follows:
 
Three Months Ended June 30,
 
2019
 
2018
 
Written
 
Earned
 
Written
 
Earned
Direct
$
(20,605
)
 
$
10,066

 
$
(611
)
 
$
27,339

Assumed
—

 
20

 
—

 
19

Ceded
(343
)
 
2,253

 
(224
)
 
1,522

Net premiums
$
(20,262
)
 
$
7,833

 
$
(387
)
 
$
25,836


 
Six Months Ended June 30,
 
2019
 
2018
 
Written
 
Earned
 
Written
 
Earned
Direct
$
(17,259
)
 
$
39,500

 
$
3,650

 
$
59,947

Assumed
—

 
39

 
—

 
39

Ceded
(844
)
 
3,948

 
(1,043
)
 
3,267

Net premiums
$
(16,415
)
 
$
35,591

 
$
4,693

 
$
56,719
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]
The following table summarizes net premiums earned by location of risk for the respective periods:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
United States
$
5,626

 
$
19,752

 
$
33,869

 
$
44,469

United Kingdom
4,224

 
4,958

 
8,415

 
9,815

Other international
(2,017
)
 
1,126

 
(6,693
)
 
2,435

Total
$
7,833

 
$
25,836

 
$
35,591

 
$
56,719
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 June 30, 2019:
 
Future Premiums
to be
Collected (1)
 
Future
Premiums to
be Earned Net of
Reinsurance (1)
Three months ended:
 
 
 
September 30, 2019
$
12,324

 
$
11,927

December 31, 2019
11,060

 
11,541

Twelve months ended:
 
 
 
December 31, 2020
43,319

 
45,409

December 31, 2021
37,827

 
41,186

December 31, 2022
35,997

 
38,351

December 31, 2023
34,530

 
35,714

Five years ended:
 
 
 
December 31, 2028
151,837

 
146,197

December 31, 2033
113,812

 
96,407

December 31, 2038
61,127

 
48,749

December 31, 2043
26,437

 
16,643

December 31, 2048
11,782

 
6,885

December 31, 2053
2,252

 
1,577

December 31, 2058
31

 
50

Total
$
542,335

 
$
500,636

(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 in the Notes to Consolidated Financial Statements included in Ambac's Annual Report on Form 10-K for the year ended December 31, 2018. 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.
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:
 
Six Months Ended June 30,
 
2019
 
2018
Beginning gross loss and loss expense reserves
$
(106,882
)
 
$
4,113,802

Reinsurance recoverable
22,623

 
40,658

Beginning balance of net loss and loss expense reserves
(129,505
)
 
4,073,144

Losses and loss expenses (benefit):
 
 
 
Current year
806

 
996

Prior years
(121,879
)
 
(215,812
)
Total (1) (2) (3)
(121,073
)
 
(214,816
)
Loss and loss expenses paid (recovered):
 
 
 
Current year
40

 
105

Prior years (3)
194,106

 
3,708,992

Total
194,146

 
3,709,097

Foreign exchange effect
(799
)
 
(6,378
)
Ending net loss and loss expense reserves
(445,523
)
 
142,853

Impact of VIE consolidation
(72,159
)
 
—

Reinsurance recoverable (4)
26,962

 
38,293

Ending gross loss and loss expense reserves
$
(490,720
)
 
$
181,146


(1)
Total losses and loss expenses (benefit) includes $(6,067) and $870 for the six months ended June 30, 2019 and 2018, respectively, related to ceded reinsurance.
(2)
Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties ("R&W"s) by transaction sponsors within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated R&Ws for the six months ended June 30, 2019 and 2018 was $8,188 and $17,602, respectively.
(3)
On February 12, 2018, Deferred Amounts and Interest Accrued on Deferred Amounts in the amount of $3,000,158 and $856,834, respectively were settled in connection with the Rehabilitation Exit Transactions. 2018 includes a $288,204 loss and loss expense benefit on these settled Deferred Amounts.
(4)
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 $253 and $778 as of June 30, 2019 and 2018, respectively, related to previously presented loss and loss expenses and subrogation.
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 June 30, 2019 and December 31, 2018. 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 June 30, 2019 and December 31, 2018 was 2.1% and 2.8%, respectively.
Surveillance Categories as of June 30, 2019
 
I
 
IA
 
II
 
III
 
IV
 
V
 
Total
Number of policies
36

 
23

 
14

 
16

 
141

 
3

 
233

Remaining weighted-average contract period (in years) (1)
8

 
18

 
8

 
18

 
14

 
3

 
14

Gross insured contractual payments outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
$
993,210

 
$
659,974

 
$
201,537

 
$
884,385

 
$
4,179,704

 
$
37,962

 
$
6,956,772

Interest
489,600

 
590,727

 
101,507

 
422,528

 
1,789,609

 
12,413

 
3,406,384

Total
$
1,482,810

 
$
1,250,701

 
$
303,044

 
$
1,306,913

 
$
5,969,313

 
$
50,375

 
$
10,363,156

Gross undiscounted claim liability
$
6,295

 
$
53,913

 
$
27,057

 
$
558,922

 
$
1,778,465

 
$
50,343

 
$
2,474,995

Discount, gross claim liability
(492
)
 
(5,850
)
 
(1,627
)
 
(169,017
)
 
(392,990
)
 
(2,524
)
 
(572,500
)
Gross claim liability before all subrogation and before reinsurance
5,803

 
48,063

 
25,430

 
389,905

 
1,385,475

 
47,819

 
1,902,495

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross RMBS subrogation (2)
—

 
—

 
—

 
—

 
(1,792,616
)
 
—

 
(1,792,616
)
Discount, RMBS subrogation
—

 
—

 
—

 
—

 
30,399

 
—

 
30,399

Discounted RMBS subrogation, before reinsurance
—

 
—

 
—

 
—

 
(1,762,217
)
 
—

 
(1,762,217
)
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross other subrogation (3)
—

 
—

 
—

 
(43,231
)
 
(649,071
)
 
(12,758
)
 
(705,060
)
Discount, other subrogation
—

 
—

 
—

 
4,586

 
43,997

 
2,964

 
51,547

Discounted other subrogation, before reinsurance
—

 
—

 
—

 
(38,645
)
 
(605,074
)
 
(9,794
)
 
(653,513
)
Gross claim liability, net of all subrogation and discounts, before reinsurance
5,803

 
48,063

 
25,430

 
351,260

 
(981,816
)
 
38,025

 
(513,235
)
Less: Unearned premium revenue
(3,695
)
 
(9,463
)
 
(1,870
)
 
(7,201
)
 
(38,005
)
 
(179
)
 
(60,413
)
Plus: Loss expense reserves
1,140

 
3,809

 
374

 
1,361

 
76,244

 
—

 
82,928

Gross loss and loss expense reserves
$
3,248

 
$
42,409

 
$
23,934

 
$
345,420

 
$
(943,577
)
 
$
37,846

 
$
(490,720
)
Reinsurance recoverable reported on Balance Sheet (4)
$
186

 
$
9,225

 
$
3,673

 
$
26,601

 
$
(12,470
)
 
$
—

 
$
27,215

 
(1)
Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)
RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches.
(3)
Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS.
(4)
Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $26,962 related to future loss and loss expenses and $253 related to presented loss and loss expenses and subrogation.
Surveillance Categories as of December 31, 2018
 
I
 
IA
 
II
 
III
 
IV
 
V
 
Total
Number of policies
21

 
28

 
18

 
16

 
145

 
3

 
231

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

 
19

 
9

 
22

 
14

 
3

 
16

Gross insured contractual payments outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
$
916,530

 
$
708,249

 
$
622,820

 
$
1,705,464

 
$
5,407,202

 
$
43,140

 
$
9,403,405

Interest
487,702

 
631,708

 
293,293

 
6,979,130

 
2,177,539

 
13,401

 
10,582,773

Total
$
1,404,232

 
$
1,339,957

 
$
916,113

 
$
8,684,594

 
$
7,584,741

 
$
56,541

 
$
19,986,178

Gross undiscounted claim liability
$
4,019

 
$
63,712

 
$
36,000

 
$
992,019

 
$
2,295,968

 
$
56,510

 
$
3,448,228

Discount, gross claim liability
(481
)
 
(13,008
)
 
(3,069
)
 
(433,709
)
 
(637,548
)
 
(4,143
)
 
(1,091,958
)
Gross claim liability before all subrogation and before reinsurance
3,538

 
50,704

 
32,931

 
558,310

 
1,658,420

 
52,367

 
2,356,270

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross RMBS subrogation (2)
—

 
—

 
—

 
—

 
(1,809,937
)
 
—

 
(1,809,937
)
Discount, RMBS subrogation
—

 
—

 
—

 
—

 
39,391

 
—

 
39,391

Discounted RMBS subrogation, before reinsurance
—

 
—

 
—

 
—

 
(1,770,546
)
 
—

 
(1,770,546
)
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross other subrogation (3)
—

 
(10,816
)
 
—

 
(136,541
)
 
(624,654
)
 
(12,880
)
 
(784,891
)
Discount, other subrogation
—

 
7,318

 
—

 
67,008

 
55,088

 
3,774

 
133,188

Discounted other subrogation, before reinsurance
—

 
(3,498
)
 
—

 
(69,533
)
 
(569,566
)
 
(9,106
)
 
(651,703
)
Gross claim liability, net of all subrogation and discounts, before reinsurance
3,538

 
47,206

 
32,931

 
488,777

 
(681,692
)
 
43,261

 
(65,979
)
Less: Unearned premium revenue
(943
)
 
(10,073
)
 
(5,085
)
 
(36,365
)
 
(53,987
)
 
(209
)
 
(106,662
)
Plus: Loss expense reserves
1,369

 
4,253

 
2,564

 
(5,926
)
 
63,499

 
—

 
65,759

Gross loss and loss expense reserves
$
3,964

 
$
41,386

 
$
30,410

 
$
446,486

 
$
(672,180
)
 
$
43,052

 
$
(106,882
)
Reinsurance recoverable reported on Balance Sheet (4)
$
367

 
$
7,285

 
$
4,223

 
$
26,096

 
$
(14,838
)
 
$
—

 
$
23,133

(1)
Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)
RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches.
(3)
Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS.
(4)
Reinsurance recoverable reported on Balance Sheet includes reinsurance recoverables of $22,623 related to future loss and loss expenses and $510 related to presented loss and loss expenses and subrogation.
Summary of Rollforward of RMBS Subrogation, by Estimation Approach
Below is the rollforward of R&W subrogation for the affected periods:
 
Six Months Ended June 30,
 
2019
 
2018
Discounted R&W subrogation (gross of reinsurance) at beginning of period
$
1,770,546

 
$
1,834,387

Changes recognized during the period:
 
 
 
Impact of sponsor actions (1)
—

 
—

All other changes (2)
(8,329
)
 
(18,002
)
Discounted R&W subrogation (gross of reinsurance) at end of period
$
1,762,217

 
$
1,816,385

(1)
Sponsor actions include loan repurchases, direct payments to Ambac and other contributions from sponsors.
(2)
All other changes which may impact RMBS 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.
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:
Amortization expense (1)
 
 
2019 (six months)
 
$
24,591

2020
 
45,139

2021
 
39,777

2022
 
36,194

2023
 
33,016

Thereafter
 
276,113

(1)  
Future amortization considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations. If those bonds types are retired early, amortization expense may differ in the period of call or refinancing.