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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2023
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 September 30, 2023 and December 31, 2022, 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.
September 30, 2023December 31, 2022
Carrying
Amount		Total Fair
Value		Fair Value Measurements Categorized as:Carrying
Amount		Total Fair
Value		Fair Value Measurements Categorized as:
Level 1Level 2Level 3Level 1Level 2Level 3
Financial assets:
Fixed maturity securities:
Municipal obligations$95 $95 $— $95 $— $102 $102 $— $102 $— 
Corporate obligations671 671 — 652 19 598 598 — 585 12 
Foreign obligations92 92 92 — — 76 76 76 — — 
U.S. government obligations73 73 73 — — 65 65 65 — — 
Residential mortgage-backed securities227 227 — 227 — 238 238 — 238 — 
Commercial mortgage-backed securities18 18 — 18 — 15 15 — 15 — 
Collateralized debt obligations142 142 — 142 — 137 137 — 137 — 
Other asset-backed securities265 265 — 197 68 224 224 — 157 67 
Fixed maturity securities, pledged as collateral:
Short-term27 27 27 — — 64 64 64 — — 
Short term investments421 421 415 5 — 507 507 506 1 — 
Other investments (1)
461 449 87 — — 568 556 61 — — 
Cash, cash equivalents and restricted cash46 46 46 — — 44 44 43 1 — 
Derivative assets:
Interest rate swaps—asset position14 14 — — 14 27 27 — 1 26 
Warrants1 1 — — 1 1 1 — — 1 
Other assets-Loans2 2 — — 2 10 10 — — 10 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations, fair value option1,857 1,857 — — 1,857 1,828 1,828 — — 1,828 
Fixed maturity securities: Municipal obligation, trading— — — — — 43 43 — 43 — 
Fixed maturity securities: Municipal obligations, available-for-sale91 91 — 91 — 96 96 — 96 — 
Restricted cash256 256 256 — 17 17 17 — — 
Loans1,551 1,551 — — 1,551 1,829 1,829 — — 1,829 
Derivative assets: Interest rate swaps—asset position177 177 — 177 — 190 190 — 190 — 
Derivative assets: Currency swaps—asset position42 42 — 42 — 49 49 — 49 — 
Total financial assets$6,530 $6,518 $997 $1,647 $3,512 $6,726 $6,715 $833 $1,615 $3,772 
Financial liabilities:
Long term debt, including accrued interest$967 $769 $— $754 $15 $1,065 $878 $— $864 $14 
Derivative liabilities:
Interest rate swaps—liability position22 22 — 22 — 38 38 — 38 — 
Liabilities for net financial guarantees
written (2)
238 646 — — 646 159 476 — — 476 
Variable interest entity liabilities:
Long-term debt2,699 2,662 — 2,558 104 3,107 3,145 — 2,992 154 
Derivative liabilities: Interest rate swaps—liability position1,038 1,038 — 1,038 — 1,048 1,048 — 1,048 — 
Total financial liabilities$4,964 $5,137 $— $4,372 $765 $5,418 $5,586 $— $4,942 $644 
(1)Excluded from the fair value measurement categories in the table above are investment funds of $362 and $494 as of September 30, 2023 and December 31, 2022, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value amounts in the table above are equity securities with a carrying value of $12 and $12 as of September 30, 2023 and December 31, 2022, 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 2023 and 2022. 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
InvestmentsDerivativesInvestmentsLoansTotal
Three Months Ended September 30, 2023:
Balance, beginning of period$81 $25 $1,952 $1,772 $3,831 
Total gains/(losses) realized and unrealized:
Included in earnings— (11)(21)48 17 
Included in other comprehensive income— — (74)(62)(137)
Purchases6 — — — 6 
Settlements— — — (73)(73)
Deconsolidation of VIEs— — — (133)(133)
Balance, end of period$87 $15 $1,857 $1,551 $3,510 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $(11)$(21)$48 $17 
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $— $(74)$(62)$(137)
Three Months Ended September 30, 2022:
Balance, beginning of period$81 $38 $2,533 $2,144 $4,795 
Total gains/(losses) realized and unrealized:
Included in earnings— (11)(312)(231)(553)
Included in other comprehensive income(4)— (194)(162)(360)
Settlements— (1)— (69)(71)
Balance, end of period$78 $26 $2,026 $1,682 $3,812 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $(11)$(312)$(231)$(553)
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$(4)$—$(194)$(162)$(360)
Level 3 - Financial Assets and Liabilities Accounted for at Fair Value
VIE Assets
InvestmentsDerivativesInvestmentsLoansTotal
Nine Months Ended September 30, 2023:
Balance, beginning of period$79 $26 $1,828 $1,829 $3,762 
Total gains/(losses) realized and unrealized:
Included in earnings1 (11)59 40 89 
Included in other comprehensive income3 — (18)30 15 
Purchases6 — — — 6 
Settlements(1)— (12)(214)(228)
Deconsolidation of VIEs— — — (133)(133)
Balance, end of period$87 $15 $1,857 $1,551 $3,510 
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 $(11)$59 $37 $86 
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$3 $— $(18)$28 $13 
Nine Months Ended September 30, 2022:
Balance, beginning of period$91 $70 $3,320 $2,718 $6,199 
Total gains/(losses) realized and unrealized:
Included in earnings1 (39)(770)(409)(1,217)
Included in other comprehensive income(13)— (505)(413)(932)
Purchases1 — — — 1 
Settlements(1)(5)(18)(214)(239)
Balance, end of period$78 $26 $2,026 $1,682 $3,812 
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 $(40)$(770)$(409)$(1,218)
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$(13)$— $(505)$(413)(932)
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:
Three Months Ended September 30, 2023Three Months Ended September 30, 2022
Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
 on Variable
Interest
Entities 		Other
Income or
 (Expense)		Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
 on Variable
Interest
Entities		Other
Income or
 (Expense)
Total gains (losses) included in earnings for the period$—$(11)$27$—$—$(11)$(543)$—
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date—(11)27——(11)(543)—
Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
 on Variable
Interest
Entities		Other
Income or
 (Expense)		Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
 on Variable
Interest
Entities		Other
Income or
 (Expense)
Total gains or losses included in earnings for the period$1$(11)$99$—$1$(39)$(1,179)$—
Changes in unrealized gains or losses included in earnings relating to the assets and liabilities still held at the reporting date—(11)96——(40)(1,179)—