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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2022
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 March 31, 2022 and December 31, 2021, 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:
March 31, 2022:Level 1Level 2Level 3
Financial assets:
Fixed maturity securities:
Municipal obligations$188 $188 $— $188 $— 
Corporate obligations577 577 1 564 12 
Foreign obligations88 88 88 — — 
U.S. government obligations51 51 51 — — 
Residential mortgage-backed securities225 225 — 225 — 
Collateralized debt obligations120 120 — 120 — 
Other asset-backed securities252 252 — 178 74 
Fixed maturity securities, pledged as collateral:
U.S. government obligations15 15 15 — — 
Short-term99 99 99 — — 
Short term investments540 540 526 13 — 
Other investments (1)
660 652 92 — — 
Cash, cash equivalents and restricted cash67 67 67 — — 
Derivative assets:
Interest rate swaps—asset position56 56 — 3 52 
Other assets-Loans3 3 — — 3 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations, fair value option3,131 3,131 — — 3,131 
Fixed maturity securities: Municipal obligation, trading114 114 — 114 — 
Fixed maturity securities: Municipal obligations, available-for-sale119 119 — 119 — 
Restricted cash49 49 49 — — 
Loans2,469 2,469 — — 2,469 
Derivative assets: Currency swaps-asset position42 42 — 42 — 
Total financial assets$8,864 $8,856 $988 $1,567 $5,741 
Financial liabilities:
Long term debt, including accrued interest$2,834 $2,315 $— $2,296 $19 
Derivative liabilities:
Credit derivatives1 1 — — 1 
Interest rate swaps—liability position75 75 — 75 — 
Futures contracts1 1 1 — — 
Liabilities for net financial guarantees written (2)
(970)(197)— — (197)
Variable interest entity liabilities:
Long-term debt (includes $3,701 at fair value)
4,124 4,161 — 4,001 160 
Derivative liabilities: Interest rate swaps—liability position1,866 1,866 — 1,866 — 
Total financial liabilities$7,930 $8,221 $1 $8,238 $(17)
Carrying
Amount		Total Fair
Value		Fair Value Measurements Categorized as:
December 31, 2021:Level 1Level 2Level 3
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 - equity in sponsored VIE— — — — — 
Other assets-loans3 3 — — 3 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations, fair value option3,320 3,320 — — 3,320 
Fixed maturity securities: Municipal obligations, available-for-sale136 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:
Credit derivatives— — — — — 
Interest rate swaps—liability position94 94 — 94 — 
Futures contracts— — — — — 
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 
(1)Excluded from the fair value measurement categories in the table above are investment funds of $560 and $577 as of March 31, 2022 and December 31, 2021, 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 $8 as of March 31, 2022 and December 31, 2021, 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 financial guarantee amounts in 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 2022 and 2021. 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
Investments(1)
Other
Assets(2)
DerivativesInvestmentsLoansTotal
Three Months Ended March 31, 2022:
Balance, beginning of period$91 $— $70 $3,320 $2,718 $6,199 
Total gains/(losses) realized and unrealized:
Included in earnings— — (17)(93)(96)(204)
Included in other comprehensive income(4)— — (96)(76)(176)
Purchases— — — — — — 
Settlements(1)— (2)— (78)(80)
Balance, end of period$86 $— $52 $3,131 $2,469 $5,738 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $— $(17)$(93)$(96)$(204)
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$(4)$— $— $(96)$(76)$(176)
Three Months Ended March 31, 2021:
Balance, beginning of period$78 $1 $84 $3,215 $2,998 $6,376 
Total gains/(losses) realized and unrealized:
Included in earnings— — (17)(138)9 (145)
Included in other comprehensive income(2)— — 26 24 49 
Purchases— — — — — — 
Settlements— — (2)— (84)(86)
Balance, end of period$76 $1 $65 $3,103 $2,948 $6,194 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $— $(17)$(138)$9 $(145)
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$(2)$—$—$26$24$49
(1)     Investments classified as Level 3 consist of a single other asset-backed security.
(2)    Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE.
Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings
Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the affected periods are reported as follows:
Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income
(Loss) on
Variable
Interest
Entities		Other
Income
or (Expense)
Three Months Ended March 31, 2022:
Total gains (losses) included in earnings for the period$— $(17)$(188)$— 
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date— (17)(188)— 
Three Months Ended March 31, 2021:
Total gains (losses) included in earnings for the period$— $(17)$(129)$— 
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date— (17)(129)—