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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities
The following table sets forth the carrying amount and fair value of Ambac’s financial assets and liabilities as of December 31, 2021 and 2020, including the level within the fair value hierarchy at which fair value measurements are categorized. As required by the Fair Value Measurement Topic of the ASC financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
Carrying
Amount		Total Fair
Value		Fair Value Measurements Categorized as:
Level 1Level 2Level 3
December 31, 2021:
Financial assets:
Fixed maturity securities:
Municipal obligations$340 $340 $— $340 $— 
Corporate obligations613 613 1 600 12 
Foreign obligations87 87 87 — — 
U.S. government obligations45 45 45 — — 
Residential mortgage-backed securities252 252 — 252 — 
Collateralized debt obligations128 128 — 128 — 
Other asset-backed securities265 265 — 187 79 
Fixed maturity securities, pledged as collateral:
U.S. government obligations15 15 15 — — 
Short-term105 105 105 — — 
Short term investments414 414 369 46 — 
Other investments (1)
690 683 106 — — 
Cash, cash equivalents and restricted cash21 21 21 1 — 
Derivative assets:
Interest rate swaps—asset position76 76 — 5 71 
Other assets-loans3 3 — — 3 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations3,320 3,320 — — 3,320 
Fixed maturity securities: Municipal obligations136 136 — 136 — 
Restricted cash2 2 2 — — 
Loans2,718 2,718 — — 2,718 
Derivative assets:
Currency swaps-asset position38 38 — 38 — 
Total financial assets$9,268 $9,261 $750 $1,732 $6,202 
Financial liabilities:
Long term debt, including accrued interest$2,806 $2,598 $— $2,575 $22 
Derivative liabilities:
Interest rate swaps—liability position94 94 — 94 — 
Liabilities for net financial guarantees written (2)
(866)(112)— — (112)
Variable interest entity liabilities:
Long-term debt (includes $4,056 at fair value)
4,216 4,255 — 4,086 169 
Derivative liabilities:
Interest rate swaps—liability position1,940 1,940 — 1,940 — 
Total financial liabilities$8,190 $8,775 $— $8,695 $79 
Carrying
Amount		Total Fair
Value		Fair Value Measurements Categorized as:
Level 1Level 2Level 3
December 31, 2020:
Financial assets:
Fixed maturity securities:
Municipal obligations$358 $358 $— $358 $— 
Corporate obligations1,077 1,077 4 1,073 — 
Foreign obligations98 98 98 — — 
U.S. government obligations106 106 106 — — 
Residential mortgage-backed securities302 302 — 302 — 
Collateralized debt obligations74 74 — 74 — 
Other asset-backed securities303 303 — 225 78 
Fixed maturity securities, pledged as collateral:
U.S. government obligations15 15 15 — — 
Short-term125 125 125 — — 
Short term investments492 492 415 76 — 
Other investments (1)
595 597 91 — 53 
Cash and cash equivalents and restricted cash33 33 32 2 — 
Derivative assets:
Interest rate swaps—asset position93 93 — 9 85 
Other assets - equity in sponsored VIE1 1 — — 1 
Other assets-loans3 3 — — 3 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations3,215 3,215 — — 3,215 
Fixed maturity securities: Municipal obligations139 139 — 139 — 
Restricted cash2 2 2 — — 
Loans2,998 2,998 — — 2,998 
Derivative assets; Currency swaps-asset position41 41 — 41 — 
Total financial assets$10,071 $10,073 $888 $2,299 $6,433 
Financial liabilities:
Long term debt, including accrued interest$3,255 $3,071 $— $2,670 $401 
Derivative liabilities:
Interest rate swaps—liability position114 114 — 114 — 
Liabilities for net financial guarantees written (2)
(740)539 — — 539 
Variable interest entity liabilities:
Long-term debt (includes $4,324 at fair value)
4,493 4,504 — 4,349 155 
Derivative liabilities:
Interest rate swaps—liability position1,835 1,835 — 1,835 — 
Total financial liabilities$8,958 $10,063 — 8,968 1,095 
(1)Excluded from the fair value measurement categories in the table above are investment funds of $577 and $453 as of December 31, 2021 and 2020, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value measurements in the table above are equity securities with a carrying value of $8 and $— as of December 31, 2021 and 2020, respectively, that do not have readily determinable fair values and have carrying amounts determined using the measurement alternative.
(2)The carrying value of net financial guarantees written includes the following balance sheet items: Premium receivables; Reinsurance recoverable on paid and unpaid losses; Deferred ceded premium; Subrogation recoverable; Insurance intangible asset; Unearned premiums; Loss and loss expense reserves; Ceded premiums payable, premiums taxes payable and other deferred fees recorded in Other liabilities.
Summary of Changes in Level 3 Fair Value Category
The following tables present the changes in the Level 3 fair value category for the periods presented in 2021, 2020 and 2019. Ambac classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Thus, the gains and losses presented below include changes in the fair value related to both observable and unobservable inputs.
Level-3 Financial Assets and Liabilities Accounted for at Fair Value
VIE Assets and Liabilities
Year ended December 31, 2021
Investments (1)
Other
Assets (2)
DerivativesInvestmentsLoansLong-term
Debt		Total
Balance, beginning of period$78 $1 $84 $3,215 $2,998 $— $6,376 
Total gains/(losses) realized and unrealized:
Included in earnings1 — (6)176 59 — 230 
Included in other comprehensive income1 — — (32)(26)— (58)
Purchases13 — — — — — 13 
Issuances— — — — — — — 
Sales— — — — — — — 
Settlements(2)(1)(8)(38)(313)— (362)
Balance, end of period$91 $— $70 $3,320 $2,718 $— $6,199 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$(1)$— $(6)$176 $59 $— $227 
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$(1)$— $— $(32)$(26)$— $(59)
(1)     Investments classified as Level 3 consist of a one other asset-backed security and two convertible notes purchased in 2021.
(2)    Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE.
Level-3 Financial Assets and Liabilities Accounted for at Fair Value
VIE Assets and Liabilities
Year Ended December 31, 2020Investments
Other
Assets (1)
DerivativesInvestmentsLoansLong-term
Debt		Total
Balance, beginning of period$72 $3 $66 $2,957 $3,108 $— $6,207 
Total gains/(losses) realized and unrealized:
Included in earnings1 (2)25 183 98 — 306 
Included in other comprehensive income6 — — 109 83 — 198 
Purchases— — — — — — — 
Issuances— — — — — — — 
Sales— — — — — — — 
Settlements(1)— (7)(35)(290)— (334)
Deconsolidations of VIEs— — — — — — — 
Balance, end of period$78 $1 $84 $3,215 $2,998 $— $6,376 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$1 $(2)$25 $183 $98 $— $305 
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$6 $— $— $109 $83 $— $198 
(1)     Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE.
Level-3 Financial Assets and Liabilities Accounted for at Fair Value
VIE Assets and Liabilities
Year Ended December 31, 2019Investments
Other
Assets (1)
DerivativesInvestmentsLoansLong-term
Debt		Total
Balance, beginning of period$72 $5 $46 $2,737 $4,288 $(217)$6,930 
Total gains/(losses) realized and unrealized:
Included in earnings2 (2)25 138 287 (15)436 
Included in other comprehensive income— — — 116 74 8 199 
Purchases— — — — — — — 
Issuances— — — — — — — 
Sales— — — — — — — 
Settlements(2)— (5)(35)(690)— (731)
Deconsolidation of VIEs— — — — (851)223 (627)
Balance, end of period$72 $3 $66 $2,957 $3,108 $— $6,207 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $(2)$25 $138 $215 $— $376 
(1)     Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE.
Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings
Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the affected periods are reported as follows:
Net
Investment
Income
Net Gains
(Losses) on
Derivative Contracts
Income (Loss)
on Variable
Interest
Entities
Other
Income
(Expense)
Year Ended December 31, 2021
Total gains (losses) included in earnings for the period$1 $(6)$235 $— 
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date1 (6)235 — 
Year Ended December 31, 2020
Total gains (losses) included in earnings for the period$1 $25 $281 $(2)
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date— 25 281 (2)
Year Ended December 31, 2019
Total gains (losses) included in earnings for the period$2 $25 $410 $(2)
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date— 25 353 (2)