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SEC Schedule, Article 12-04, Condensed Financial Information of Registrant
 12 Months Ended
Dec. 31, 2021
Condensed Financial Information Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure
AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
SCHEDULE II— CONDENSED FINANCIAL INFORMATION
OF REGISTRANT (PARENT COMPANY ONLY)
Condensed Balance Sheets
($ in millions, except share data) December 31,20212020
Assets:
Fixed maturity securities, at fair value (amortized cost: 2021—$130 and 2020—$76)
$119 $66 
Short-term investments, at cost (approximates fair value)124 229 
Other investments11 54 
Total investments (net of allowance for credit losses of: 2021— $3 and 2020 — $2)
254 349 
Cash1 7 
Investment in subsidiaries769 714 
Investment income due and accrued1 — 
Other assets17 13 
Total assets$1,041 $1,082 
Liabilities and Stockholders' Equity:
Liabilities:
Current taxes$1 $— 
Accounts payable and other liabilities
2 2 
Total liabilities3 3 
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none
— — 
Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 46,477,068 and 45,865,081
— — 
Additional paid-in capital257 242 
Accumulated other comprehensive income (loss)58 79 
Retained earnings726 759 
Treasury stock, shares at cost: 172,929 and 55,942
(3)(1)
Total Ambac Financial Group, Inc. stockholders’ equity1,038 1,080 
Total liabilities and stockholders’ equity$1,041 $1,082 
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.
AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
SCHEDULE II— CONDENSED FINANCIAL INFORMATION
OF REGISTRANT (PARENT COMPANY ONLY)
Condensed Statement of Comprehensive Income
($ in millions) Year Ended December 31,202120202019
Revenues:
Investment income$10 $13 $19 
Other income— (1)(2)
Net investment gains (losses), including impairments(5)(1)(2)
Total revenues5 12 18 
Expenses:
Operating expenses19 19 16 
Total expenses19 19 16 
Income (loss) before income taxes and equity in undistributed net loss of subsidiaries
(14)(7)2 
Federal income tax provision (benefit)2 — (5)
Income (loss) before net income (loss) of subsidiaries(16)(7)7 
Net loss of subsidiaries(1)(430)(223)
Net income (loss)$(17)$(437)$(216)
Other comprehensive income (loss), after tax:
Net income (loss)$(17)$(437)$(216)
Unrealized gains (losses) on securities, net of income tax provision (benefit) of $(2), $1 and $(8)
(12)15 65 
Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $0, $0 and $0
(8)23 26 
Credit risk changes of fair value option liabilities, net of income tax provision (benefit) of $0, $0 and $0
(1)1 — 
Changes to postretirement benefit, net of income tax provision (benefit) of $0, $0 and $0
(1)(3)(1)
Total other comprehensive income (loss)(21)37 91 
Total comprehensive income (loss) attributable to Ambac Financial Group, Inc.
$(38)$(400)$(125)
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.
AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
SCHEDULE II— CONDENSED FINANCIAL INFORMATION
OF REGISTRANT (PARENT COMPANY ONLY)
Condensed Statement of Stockholders' Equity
($ in millions)Total
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Preferred
Stock
Common
Stock
Additional Paid-in
Capital
Common
Stock Held
in Treasury,
at Cost
Balance at January 1, 2019$1,592 $1,421 $(49)$— $— $219 $— 
Total comprehensive income (loss)(125)(216)91 — — — — 
Stock-based compensation12 — — — — 12 — 
Cost of shares (acquired) issued under equity plan(3)(3)— — — — — 
Balance at December 31, 2019$1,477 $1,203 $42 $— $— $232 $— 
Total comprehensive income (loss)(400)(437)37 — — — — 
Adjustment to initially apply ASU 2016-13(4)(4)— — — — — 
Stock-based compensation11 — — — — 11 — 
Cost of shares (acquired) issued under equity plan(3)(2)— — — — (1)
Balance at December 31, 2020$1,080 $759 $79 $— $— $242 $(1)
Total comprehensive income (loss)(38)(17)(21)— — — — 
Stock-based compensation14 — — — — 14 — 
Cost of shares (acquired) issued under equity plan(6)(4)— — — — (2)
Change in redeemable noncontrolling interest(12)(12)— — — — — 
Balance at December 31, 2021$1,038 $726 $58 $— $— $257 $(3)
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.
AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
SCHEDULE II— CONDENSED FINANCIAL INFORMATION
OF REGISTRANT (PARENT COMPANY ONLY)
Condensed Statements of Cash Flow
($ in millions) Year Ended December 31,202120202019
Cash flows from operating activities:
Net income (loss)$(17)$(437)$(216)
Adjustments to reconcile net income loss to net cash used in operating activities:
Equity in undistributed net (income) loss of subsidiaries1 423 223 
Amortization of bond premium and discount(9)(6)(6)
Net realized gains5 1 2 
Increase (decrease) in current income taxes payable1 30 15 
Share-based compensation14 11 12 
(Increase) decrease in other assets and liabilities(5)(1)(8)
Distributions received from majority owned subsidiary6 — — 
Other, net(6)(10)(6)
Net cash provided by (used in) operating activities(10)11 16 
Cash flows from investing activities:
Proceeds from sales and matured bonds33 46 86 
Purchases of bonds(34)(45)(2)
Change in short-term investments105 89 (125)
Change in other investments(8)— — 
Sale of auction market preferred shares of Ambac Assurance— — 19 
Acquisition of Xchange, net of cash acquired— (74)— 
Net cash provided by (used in) investing activities95 16 (22)
Cash flows from financing activities:
Capital contribution to subsidiaries(92)(29)— 
Net cash (used in) financing activities(92)(29)— 
Net cash flow(6)(2)(6)
Cash at beginning of period7 9 15 
Cash at end of period$1 $7 $9 
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Income taxes$— $— $1 
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.