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Financial Guarantee Insurance Contracts (Tables)
 12 Months Ended
Dec. 31, 2020
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,
202020192018
Beginning premium receivable$416 $495 $586 
Adjustment to initially apply ASU 2016-13(3)— — 
Premium receipts(46)(48)(56)
Adjustments for changes in expected and contractual cash flows (1)
(6)(38)(42)
Accretion of premium receivable discount9 11 15 
Deconsolidation of certain VIEs— 3 — 
Changes to allowance for credit losses(4)(2)2 
Other adjustments (including foreign exchange)5 (6)(10)
Ending premium receivable (2)
$370 $416 $495 
(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 December 31, 2020, 2019 and 2018 premium receivables include British Pounds of $117 (£86), $129 (£97) and $131 (£103), respectively, and Euros of $19 (€16), $26 (€23) and $31 (€27), respectively.
Effect of Reinsurance on Premiums Written and Earned
The effect of reinsurance on premiums written and earned was as follows:
Year Ended
December 31,
DirectAssumed
Ceded (1)
Net
Premiums
2020:
Written$(1)$— $(1)$— 
Earned65 1 12 54 
2019:
Written$(28)$— $31 $(60)
Earned75 — 10 66 
2018:
Written$(24)$— $17 $(41)
Earned119 — 8 111 
(1)Includes ceded premium activity related to the execution of new reinsurance transactions during 2020, 2019 and 2018.
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:
Year Ended
December 31,
202020192018
United States$32 $55 $88 
United Kingdom24 17 19 
Other international(2)(6)5 
Total$54 $66 $111 
Schedule Of Reinsurance Recoverable And Provision By Category Of Reinsurer
The following table represents the percentage ceded to reinsurers and unsecured reinsurance recoverable at December 31, 2020.
Reinsurers
Percentage
Ceded Par
Net Unsecured
Reinsurance
Recoverable (1)
Assured Guaranty Re Ltd46%$— 
Build America Mutual Assurance Company (2)
4330 
Assured Guaranty Corporation84 
Sompo Japan Nipponkoa Insurance, Inc.3— 
Total100%$34 
(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 AAC.
(2)    Build America Mutual Assurance Company has an S&P rating of AA.
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, 2020:
Future Premiums
to be
Collected (1)
Future
Premiums
to be
Earned Net of
Reinsurance (2)
Three months ended:
March 31, 2021$12 $9 
June 30, 20218 9 
September 30, 20219 9 
December 31, 20218 9 
Twelve months ended:
December 31, 202236 33 
December 31, 202334 31 
December 31, 202433 29 
December 31, 202531 27 
Five years ended:
December 31, 2030132 113 
December 31, 203591 72 
December 31, 204042 30 
December 31, 204519 12 
December 31, 20507 4 
December 31, 20551 — 
Total$462 $386 
(1)Future premiums to be collected are undiscounted and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet.
(2)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 Below are the components of the Loss and loss expense reserves liability and the Subrogation recoverable asset at December 31, 2020 and 2019:
Present Value of Expected
Net Cash Flows		Unearned
Premium
Revenue		Gross Loss and
Loss Expense
Reserves
Balance Sheet Line ItemClaims and
Loss Expenses		Recoveries
December 31, 2020:
Loss and loss expense reserves$2,060 $(229)$(72)$1,759 
Subrogation recoverable100 (2,256)— (2,156)
Totals$2,160 $(2,486)$(72)$(397)
December 31, 2019:
Loss and loss expense reserves$1,835 $(233)$(54)$1,548 
Subrogation recoverable131 (2,160)— (2,029)
Totals$1,966 $(2,394)$(54)$(482)
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,		202020192018
Beginning gross loss and loss expense reserves
$(482)$(107)$4,114 
Reinsurance recoverable
26 23 41 
Beginning balance of net loss and loss expense reserves
(508)(130)4,073 
Losses and loss expenses (benefit) incurred:
Current year
15 1 5 
Prior years (1)
210 12 (228)
Total (2)(3)
225 13 (224)
Loss and loss expenses (recovered) paid:
Current year
1 — — 
Prior years (1)
148 318 3,963 
Total
149 318 3,964 
Foreign exchange effect
2 (1)(15)
Ending net loss and loss expense reserves
(430)(436)(130)
Impact of VIE consolidation
— (72)— 
Reinsurance recoverable (4)
33 26 23 
Ending gross loss and loss expense reserves
(397)(482)(107)
(1)2018 loss and loss expenses (recovered) paid includes the settlement of Deferred Amounts and Interest Accrued on Deferred Amounts in the amount of $3,000 and $857, respectively in connection with the Rehabilitation Exit Transactions through a combination of cash, surplus notes and secured notes. 2018 loss and loss expenses incurred includes a $288 loss and loss expense benefit on these settled Deferred Amounts.
(2)Total losses and loss expenses (benefit) includes $(11), $(7) and $(2) for the years ended December 31, 2020, 2019 and 2018, respectively, related to ceded reinsurance.
(3)Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated representation and warranty recoveries for the year ended December 31, 2020, 2019 and 2018 was $(23), $42 and $62, respectively.
(4)Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $0 at December 31, 2020)" includes reinsurance recoverables (payables) of $1, $0 and $1 as of December 31, 2020, 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 December 31, 2020 and 2019. 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, 2020 and 2019 was 1.1% and 2.1%, respectively.
Surveillance Categories as of December 31, 2020
IIAIIIIIIVVTotal
Number of policies40 25 15 15 132 5 232 
Remaining weighted-average contract period (in years) (1)
101881614714
Gross insured contractual payments outstanding:
Principal$842 $1,375 $595 $1,469 $3,246 $47 $7,573 
Interest279 1,011 484 215 1,427 26 3,443 
Total$1,121 $2,386 $1,079 $1,685 $4,673 $72 $11,016 
Gross undiscounted claim liability$3 $49 $40 $541 $1,690 $72 $2,395 
Discount, gross claim liability— (2)(1)(85)(213)(3)(303)
Gross claim liability before all subrogation and before reinsurance
$3 $47 $40 $456 $1,477 $69 $2,092 
Less:
Gross RMBS subrogation (2)
$— $— $— $— $(1,753)$— $(1,753)
Discount, RMBS subrogation— — — — 3 — 3 
Discounted RMBS subrogation, before reinsurance
— — — — (1,751)— (1,751)
Less:
Gross other subrogation (3)
— — — (36)(706)(12)(755)
Discount, other subrogation— — — 1 18 1 20 
Discounted other subrogation, before reinsurance
— — — (35)(689)(11)(735)
Gross claim liability, net of all subrogation and discounts, before reinsurance
$3 $47 $39 $421 $(963)$58 $(394)
Less: Unearned premium revenue$(2)$(16)$(5)$(17)$(30)$(1)$(72)
Plus: Loss expense reserves1 2 1 5 59 — 68 
Gross loss and loss expense reserves$2 $32 $35 $409 $(933)$57 $(397)
Reinsurance recoverable reported on Balance Sheet (4)
$— $6 $9 $24 $(6)$— $33 
(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 representation and warranty ("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 $33 related to future loss and loss expenses and $1 related to presented loss and loss expenses and subrogation.
Surveillance Categories as of December 31, 2019
IIAIIIIIIVVTotal
Number of policies34 18 11 16 139 3 221 
Remaining weighted-average contract period (in years) (1)
82191714315
Gross insured contractual payments outstanding:
Principal$668 $510 $277 $857 $3,819 $37 $6,168 
Interest340 507 128 366 1,678 11 3,029 
Total$1,007 $1,016 $404 $1,223 $5,498 $48 $9,197 
Gross undiscounted claim liability$2 $44 $21 $541 $1,778 $48 $2,434 
Discount, gross claim liability— (5)(1)(152)(381)(2)(541)
Gross claim liability before all subrogation and before reinsurance$2 $39 $20 $389 $1,397 $46 $1,893 
Less:
Gross RMBS subrogation (2)
$— $— $— $— $(1,777)$— $(1,777)
Discount, RMBS subrogation— — — — 49 — 49 
Discounted RMBS subrogation, before reinsurance
— — — — (1,727)— (1,727)
Less:
Gross other subrogation (3)
— — — (41)(666)(13)(720)
Discount, other subrogation— — — 4 47 3 53 
Discounted other subrogation, before reinsurance
— — — (37)(620)(10)(666)
Gross claim liability, net of all subrogation and discounts, before reinsurance
$2 $39 $20 $353 $(950)$36 $(501)
Less: Unearned premium revenue$(1)$(9)$(1)$(7)$(35)$— $(54)
Plus: Loss expense reserves1 1 1 4 67 — 73 
Gross loss and loss expense reserves$1 $30 $20 $349 $(918)$36 $(482)
Reinsurance recoverable reported on Balance Sheet (4)
$— $6 $7 $24 $(10)$— $26 
(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 $26 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation.
Summary of Rollforward of RMBS Subrogation, by Estimation Approach
Below is the rollforward of RMBS R&W subrogation for the affected periods:
Year ended December 31,202020192018
Discounted RMBS subrogation recovery
(gross of reinsurance) at beginning of year
$1,727 $1,771 $1,834 
All other changes (1)
23 (43)(64)
Discounted RMBS subrogation recovery (gross of reinsurance) at end of year
$1,751 $1,727 $1,771 
(1)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 the projected timing of recoveries.
Premium Receivable, Allowance for Credit Loss
Below is a rollforward of the premium receivable allowance for credit losses as of December 31, 2020:
Year Ended December 31,2020
Beginning balance (1)
$9 
Current period provision (2)
9 
Write-offs of the allowance(2)
Recoveries of previously written-off amounts— 
Ending balance$17 

(1)At December 31, 2019, $9 of premiums receivable were deemed uncollectible as determined under prior GAAP rules.
(2)The year ended December 31, 2020, includes $3 from the adoption of CECL.
Schedule of Financial Guarantee Insurance In Force By Bond Type
As of December 31, 2020 and 2019, the guarantee portfolio was diversified by type of guaranteed bond as shown in the following table:
December 31,
Net Par Outstanding December 31,20202019
Public Finance:
Housing revenue$5,855 $5,991 
Lease and tax-backed revenue4,179 5,102 
General obligation2,345 3,011 
Transportation revenue771 855 
Higher education747 885 
Utility revenue675 768 
Other925 1,041 
Total Public Finance15,497 17,653 
Structured Finance:
Mortgage-backed and home equity3,635 4,423 
Investor-owned utilities1,617 1,675 
Student loan626 769 
Structured Insurance311 395 
Asset-backed and other148 246 
Total Structured Finance6,337 7,508 
International Finance:
Sovereign/sub-sovereign5,270 5,264 
Investor-owned and public utilities3,899 4,436 
Transportation1,511 1,532 
Asset-backed and other1,374 1,625 
Total International Finance12,054 12,857 
Total$33,888 $38,018 
(1)Includes $5,575 and $5,654 of Military Housing net par at December 31, 2020 and 2019, respectively.
Schedule of Intangible Assets and Goodwill
The insurance intangible amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss) as shown below.
Year Ended December 31,202020192018
Insurance amortization expense$57 $295 $107 

The insurance intangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below.
December 31,20202019
Gross carrying value of insurance intangible asset$1,281 $1,273 
Accumulated amortization of insurance intangible asset908 847 
Net insurance intangible asset$373 $427 
Insurance Intangible Asset [Member]  
Insurance [Line Items]  
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense
The estimated future amortization expense for the net insurance intangible asset is as follows:
Amortization expense (1) (2)
2021$39 
202235 
202332 
202429 
202526 
Thereafter$213 
(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. 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 from the amounts provided in the table above.
(2)    The weighted-average amortizations period is 7.5 years.