Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2020

Variable Interest Entity Not Primary Beneficiary Table [Line Items]

Schedule of Variable Interest Entities Assets and Liabilities [Table Text Block]

The following schedule details the components of Income (loss) on variable interest entities for the affected periods:

Year ended December 31,	2020		2019		2018
Net change in fair value of VIE assets and liabilities reported under the fair value option	$	(1)	$	13	$	3
Less: Credit risk changes of fair value option long-term debt reported through other comprehensive income (loss)	(1)		—		(1)
Net change in fair value of VIE assets and liabilities reported in earnings	(3)		14		2
Investment income on available-for-sale securities	7		10		—
Net realized investment gains (losses) on available-for-sale securities	8		13		—
Interest expense on long-term debt carried at par less unamortized cost	(6)		(11)		—
Other expenses	—		(1)		—
Gain (loss) from consolidating FG VIEs	—		15		—
Gain (loss) from de-consolidating FG VIEs	—		(2)		2
Income (loss) on variable interest entities	$	5	$	38	$	3

Variable Interest Entity Not Primary Beneficiary Table [Table Text Block]

The following table displays the carrying amount of the assets, liabilities and maximum exposure to loss of Ambac’s variable interests in non-consolidated VIEs resulting from financial guarantee and derivative contracts by major underlying asset classes, as of December 31, 2020 and 2019:

	Carrying Value of Assets and Liabilities
	Maximum Exposure To Loss (1)		Insurance Assets (2)		Insurance Liabilities (3)		Net Derivative Assets (Liabilities) (4)
December 31, 2020:
Global structured finance:
Mortgage-backed—residential	$	4,308	$	2,024	$	580	$	—
Other consumer asset-backed	1,050		24		239		—
Other commercial asset-backed	24		3		1		—
Other	970		—		13		8
Total global structured finance	6,352		2,051		834		8
Global public finance	21,646		263		287		—
Total	$	27,998	$	2,314	$	1,122	$	8
December 31, 2019:
Global structured finance:
Mortgage-backed—residential	$	5,373	$	1,913	$	523	$	—
Other consumer asset-backed	1,373		31		216		—
Other commercial asset-backed	314		9		6		—
Other	1,107		7		18		8
Total global structured finance	8,165		1,961		762		8
Global public finance	23,341		287		321		—
Total	$	31,506	$	2,247	$	1,083	$	7

(1)Maximum exposure to loss represents the maximum future payments of principal and interest on insured obligations and derivative contracts. Ambac’s maximum exposure to loss does not include the benefit of any financial instruments (such as reinsurance or hedge contracts) that Ambac may utilize to mitigate the risks associated with these variable interests.

(2)Insurance assets represent the amount included in “Premium receivables” and “Subrogation recoverable” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets.

(3)Insurance liabilities represent the amount included in “Loss and loss expense reserves” and “Unearned premiums” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets.

(4)Net derivative assets (liabilities) represent the fair value recognized on credit derivative contracts and interest rate swaps on Ambac’s Consolidated Balance Sheets.