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Special Purpose Entities, Including Variable Interest Entities (Tables)
 6 Months Ended
Jun. 30, 2021
Variable Interest Entity [Line Items]  
Components of VIE Gain (Loss) [Table Text Block]
The following schedule details the components of Income (loss) on variable interest entities for the affected periods:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Net change in fair value of VIE assets and liabilities reported under the fair value option$2 $(2)$1 $(2)
Less: Credit risk changes of fair value option long-term debt reported through other comprehensive income (loss)— 1 1 (3)
Net change in fair value of VIE assets and liabilities reported in earnings2 (1)1 (5)
Investment income on available-for-sale securities2 2 3 3 
Net realized investment gains (losses) on available-for-sale securities— — 1 8 
Interest expense on long-term debt carried at par less unamortized cost(1)(1)(3)(3)
Income (loss) on variable interest entities$2 $— $2 $3 
Summary of Carrying Amount of Assets, Liabilities and Maximum Exposure to Loss of Ambac's Variable Interests in Non-Consolidated Variable Interest Entities
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 June 30, 2021 and December 31, 2020:
Carrying Value of Assets and Liabilities
Maximum
Exposure
To Loss (1)
Insurance
Assets (2)
Insurance
Liabilities (3)
Net Derivative
Assets (Liabilities) (4)
June 30, 2021:
Global structured finance:
Mortgage-backed—residential$3,747 $1,967 $527 $— 
Other consumer asset-backed894 19 234 — 
Other commercial asset-backed1 3 1 — 
Other880 — 10 7 
Total global structured finance5,523 1,989 772 7 
Global public finance20,802 264 278 — 
Total$26,325 $2,254 $1,051 $6 
December 31, 2020:
Global structured finance:
Mortgage-backed—residential$4,308 $2,024 $580 $— 
Other consumer asset-backed1,050 24 239 — 
Other commercial asset-backed24 3 1 — 
Other970 — 13 8 
Total global structured finance6,352 2,051 834 8 
Global public finance21,646 263 287 — 
Total$27,998 $2,314 $1,122 $8 
(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.
Schedule of Variable Interest Entities Assets and Liabilities [Table Text Block]
The following table summarizes the carrying values of assets and liabilities, along with other supplemental information related to VIEs that are consolidated as a result of financial guarantees of Ambac UK and AAC:
June 30, 2021December 31, 2020
Ambac UKAmbac AssuranceTotal VIEsAmbac UKAmbac AssuranceTotal VIEs
ASSETS:
Fixed maturity securities, at fair value:
Corporate obligations, fair value option$3,175 $— $3,175 $3,215 $— $3,215 
Municipal obligations, available-for-sale (1)
— 140 140 — 139 139 
Total FG VIE fixed maturity securities, at fair value3,175 140 3,315 3,215 139 3,354 
Restricted cash1 1 2 1 1 2 
Loans, at fair value (2)
2,943 — 2,943 2,998 — 2,998 
Derivative assets 37 — 37 41 — 41 
Other assets— 2 2 — 2 2 
Total FG VIE assets$6,156 $143 $6,299 $6,255 $143 $6,398 
LIABILITIES:
Long-term debt:
Long-term debt, at fair value (3)
$4,270 $— $4,270 $4,324 $— $4,324 
Long-term debt, at par less unamortized discount— 164 164 — 169 169 
Total long-term debt4,270 164 4,434 4,324 169 4,493 
Derivative liabilities1,800 — 1,800 1,835 — 1,835 
Total FG VIE liabilities$6,070 $164 $6,234 $6,159 $169 $6,328 
Number of FG VIEs consolidated 5 1 6 5 1 6 
(1)Available-for-sale FG VIE fixed maturity securities consist of municipal obligations with an amortized cost basis of $110 and $113, and aggregate gross unrealized gains of $30 and $27 at June 30, 2021 and December 31, 2020, respectively. All such securities had contractual maturities due after ten years as of June 30, 2021.
(2)The unpaid principal balances of loan assets carried at fair value were $2,486 as of June 30, 2021 and $2,546 as of December 31, 2020.
(3)The unpaid principal balances of long-term debt carried at fair value were $3,727 as of June 30, 2021 and $3,769 as of December 31, 2020.