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Insurance Contracts (Tables)
 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Insurance [Line Items]    
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table [Table Text Block]
Ambac’s loss and loss expense reserves (“loss reserves”) are based on management’s on-going review of the insured portfolio. Below are the components of the loss and loss expense reserves and the subrogation recoverable asset at September 30, 2023 and December 31, 2022:
September 30, 2023December 31, 2022
Specialty Property and CasualtyLegacy Financial GuaranteeSpecialty Property and CasualtyLegacy Financial Guarantee
Present Value of Expected Net Cash FlowsPresent Value of Expected Net Cash Flows
Balance Sheet Line ItemGross Loss
and Loss
Expense
Reserves		Claims and
Loss Expenses		RecoveriesUnearned
Premium
Revenue		Gross Loss
and Loss
Expense
Reserves		Gross Loss
and Loss
Expense
Reserves		Claims and
Loss Expenses		RecoveriesUnearned
Premium
Revenue		Gross Loss
and Loss
Expense
Reserves
Loss and loss expense reserves$160 $769 $(50)$(29)$850 $90 $787 $(44)$(28)$805 
Subrogation recoverable— 4 (183)— (179)— 5 (276)— (271)
Totals$160 $773 $(234)$(29)$670 $90 $791 $(319)$(28)$534 
  
Premiums Receivable by Risk Classification Code [Table Text Block] Below is the amortized cost basis of financial guarantee premium receivables by risk classification code and asset class as of September 30, 2023 and December 31, 2022:
Surveillance Categories as of September 30, 2023Surveillance Categories as of December 31, 2022
Type of Guaranteed BondIIAIIIIIIVTotalIIAIIIIIIVTotal
Public Finance:
Housing revenue$134 $3 $5 $— $— $142 $140 $3 $5 $— $— $148 
Other1 — — — — 1 2 — — — — 2 
Total Public Finance136 3 5 — — 143 142 3 5 — — 150 
Structured Finance:
Mortgage-backed and home equity— — — — 10 11 — — — — 11 11 
Student loan— — — 7 — 8 1 1 — 7 — 8 
Other4 — — — — 4 4 — — — — 4 
Total Structured Finance4 — — 7 10 22 5 1 — 7 11 24 
International:
Sovereign/sub-sovereign50 14 — — — 64 49 7 — 9 — 64 
Investor-owned and public utilities17 — — — — 17 18 — — — — 18 
Other3 — — — — 3 2 — — — — 2 
Total International70 14 — — — 84 70 7 — 9 — 85 
Total (1) (2)
$209 $18 $5 $7 $10 $249 $217 $10 $5 $16 $11 $259 
(1)    Excludes specialty property and casualty premium receivables of $33 and $16 at September 30, 2023 and December 31, 2022, respectively.
(2)    The underwriting origination dates for all policies included are greater than five years prior to the current reporting date.
  
Premium Receivable, Allowance for Credit Loss [Table Text Block]  
Below is a rollforward of the premium receivable allowance for credit losses as of September 30, 2023 and 2022:

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Beginning balance$5 $6 $5 $9 
Current period provision (benefit)— (1)(1)(3)
Write-offs of the allowance— — — — 
Recoveries of previously written-off amounts— — — — 
Ending balance (1)
$4 $6 $4 $6 
(1)At September 30, 2023 and 2022, $2 and $0 of premiums were past due.
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance
Below is the loss and loss reserve expense roll-forward, net of subrogation recoverable and reinsurance, for the affected periods:
Nine Months Ended September 30,20232022
Beginning gross loss and loss expense reserves$534 $(522)
Reinsurance recoverable115 56 
Beginning balance of net loss and loss expense reserves419 (578)
Losses and loss expenses (benefit):
Current year20 6 
Prior years(71)(347)
Total (1) (2)
(51)(341)
Loss and loss expenses paid (recovered):
Current year2 (1)
Prior years(139)(195)
Total(137)(195)
Foreign exchange effect— (3)
Ending net loss and loss expense reserves 506 (727)
Impact of VIE consolidation— (292)
Reinsurance recoverable (3)
165 79 
Ending gross loss and loss expense reserves$670 $(940)
(1)Total losses and loss expenses (benefit) includes $(75) and $(30) for the nine months ended September 30, 2023 and 2022, respectively, related to ceded reinsurance.
(2)Ambac recorded the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties ("R&W's) by transaction sponsors within losses and loss expenses (benefit) for the Legacy Financial Guarantee segment. The losses and loss expense incurred associated with changes in estimated R&W's for the nine months ended September 30, 2023 and 2022, was $0 and $80, respectively.
(3)Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $7 and $1 as of September 30, 2023 and 2022, respectively, related to previously presented loss and loss expenses and subrogation.
  
Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable
The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at September 30, 2023 and December 31, 2022, excluding consolidated VIEs. Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at September 30, 2023 and December 31, 2022,was 4.6% and 3.9%, respectively.
Surveillance Categories as of September 30, 2023
IIAIIIIIIVVTotal
Number of policies27 12 10 13 95 5 162 
Remaining weighted-average contract period (in years) (1)
910131412712
Gross insured contractual payments outstanding:
Principal$492 $1,185 $455 $401 $1,516 $28 $4,076 
Interest115 354 275 143 607 18 1,512 
Total$606 $1,539 $730 $543 $2,123 $46 $5,588 
Gross undiscounted claim liability$2 $26 $42 $432 $778 $46 $1,325 
Discount, gross claim liability— (4)(8)(172)(363)(10)(557)
Gross claim liability before all subrogation and before reinsurance1 22 34 259 415 36 769 
Less:
Gross other subrogation (2)
(13)(2)— (28)(257)(12)(313)
Discount, other subrogation3 — — 5 67 4 79 
Discounted other subrogation, before reinsurance(10)(2)— (23)(190)(8)(234)
Gross claim liability, net of all subrogation and discounts, before reinsurance(9)20 34 236 225 29 535 
Less: Unearned premium revenue(1)(13)(4)— (10)(1)(29)
Plus: Loss expense reserves— 3 — 1 1 — 4 
Gross loss and loss expense reserves$(10)$9 $30 $236 $217 $28 $510 
Reinsurance recoverable reported on Balance Sheet (3)
$1 $— $8 $20 $3 $— $32 
(1)Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS.
(3)Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $32 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation.
Surveillance Categories as of December 31, 2022
IIAIIIIIIVVTotal
Number of policies37 6 9 12 93 5 162 
Remaining weighted-average contract period (in years) (1)
719141412714
Gross insured contractual payments outstanding:
Principal$709 $200 $459 $1,000 $1,646 $34 $4,047 
Interest526 198 286 156 565 19 1,750 
Total$1,235 $399 $745 $1,156 $2,210 $53 $5,797 
Gross undiscounted claim liability$4 $4 $43 $446 $729 $53 $1,279 
Discount, gross claim liability(1)(1)(7)(162)(316)(9)(496)
Gross claim liability before all subrogation and before reinsurance3 3 36 284 413 43 783 
Less:
Gross RMBS subrogation (2)
— — — — (140)— (140)
Discount, RMBS subrogation— — — — — — — 
Discounted RMBS subrogation, before reinsurance— — — — (140)— (140)
Less:
Gross other subrogation (3)
(14)(4)— (31)(172)(12)(233)
Discount, other subrogation2 — — 5 42 4 54 
Discounted other subrogation, before reinsurance(12)(3)— (26)(130)(8)(179)
Gross claim liability, net of all subrogation and discounts, before reinsurance(9)— 36 258 143 35 464 
Less: Unearned premium revenue(2)(2)(5)(8)(10)(1)(28)
Plus: Loss expense reserves1 1 — 2 4 — 8 
Gross loss and loss expense reserves$(10)$(2)$32 $252 $137 $34 $444 
Reinsurance recoverable reported on Balance Sheet (4)
$1 $— $8 $21 $3 $— $33 
(1)Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies.
(2)RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches.
(3)Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS.
(4)Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $33 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation.
  
Summary of Rollforward of RMBS Subrogation, by Estimation Approach On December 29, 2022, AAC entered into a Settlement Agreement and Release with Nomura Credit & Capital, Inc. ("Nomura") whereby the parties settled all RMBS litigation brought by AAC against Nomura and AAC received $140 on January 3, 2023, bringing to a close all of AAC's legacy litigation against RMBS sponsors.  
Effects of Reinsurance
The effect of reinsurance on premiums written and earned was as follows:
Three Months Ended September 30,
20232022
WrittenEarnedWrittenEarned
Direct$65 $59 $16 $30 
Assumed14 3 — — 
Ceded52 45 17 19 
Net premiums
$27 $18 $— $11 
Nine Months Ended September 30,
20232022
WrittenEarnedWrittenEarned
Direct$181 $157 $83 $83 
Assumed14 3 — — 
Ceded195 113 63 43 
Net premiums$— $47 $21 $39 
The following table summarizes net premiums earned by location of risk:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
United States$15 $7 $38 $27 
United Kingdom3 3 8 10 
Other international— 1 2 2 
Total$18 $11 $47 $39 
  
Premiums Receivable for Financial Guarantees
Below is the gross premium receivable roll-forward, net of the allowance for credit losses, for the affected periods:
Nine Months Ended September 30,20232022
Beginning premium receivable$254 $320 
Premium receipts(22)(30)
Adjustments for changes in expected and contractual cash flows for contracts (1)
6 (21)
Accretion of premium receivable discount for contracts6 6 
Changes to allowance for credit losses1 3 
Other adjustments (including foreign exchange) (2)
1 (20)
Ending premium receivable (3)
$245 $259 
(1)Adjustments for changes in expected and contractual cash flows are primarily due to indexation offset by reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns.
(2)Includes foreign exchange gains (losses) of $1 and $(19) for 2023 and 2022, respectively.
(3)Premium receivable includes premiums to be received in foreign denominated currencies most notably in British Pounds and Euros. At September 30, 2023 and 2022, premium receivables include British Pounds of $71 (£58) and $73 (£66), respectively, and Euros of $13 (€13) and $14 (€14), respectively.
  
Financial Guarantee Insurance Contracts, Premium Received over Contract Period
The following table summarizes the future gross undiscounted premiums to be collected and future premiums earned, net of reinsurance at September 30, 2023:
Future Premiums
to be
Collected (1)
Future
Premiums to
be Earned Net of
Reinsurance (2)
Three months ended:
December 31, 202364
Twelve months ended:
December 31, 20242615
December 31, 20252515
December 31, 20262415
December 31, 20272414
Five years ended:
December 31, 20329957
December 31, 20376232
December 31, 20422911
December 31, 2047144
December 31, 205241
December 31, 2057——
Total$313$169
(1)Future premiums to be collected are undiscounted, gross of allowance for credit losses, and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet.
(2)Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable, as further described in Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to Consolidated Financial Statements included in Ambac's Annual Report on Form 10-K for the year ended December 31, 2022. This results in a different premium receivable balance than if expected lives were considered. If installment paying policies are retired or prepay early, premiums reflected in the premium receivable asset and amounts reported in the above table for such policies may not be collected. Future premiums to be earned also considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral, which may result in different unearned premium than if expected lives were considered. If those bonds types are retired early, premium earnings may be negative in the period of call or refinancing.
  
Reinsurance Recoverable, Credit Quality Indicator The following table sets forth our three most significant reinsurers by amount of reinsurance recoverable as of September 30, 2023.
Reinsurers
Type of Insurance
Rating
 (1)
Reinsurance
Recoverable
(2)
Unsecured
Recoverable
(3)
General Reinsurance CompanySpecialty P&CA++$67 $57 
QBE Insurance CorporationSpecialty P&CA39 39 
Assured Guaranty Re Ltd.Financial
Guarantee		AA27 — 
All other
reinsurers
39 14 
Total recoverables
$172 $110 
(1)Represents financial strength ratings from S&P for financial guarantee reinsurers and AM Best for specialty P&C reinsurers.
(2)Represents reinsurance recoverables on paid and unpaid losses. Unsecured amounts from QBE Insurance Corporation is also supported by an unlimited, uncapped indemnity from Enstar Holdings (US).
(3)Reinsurance recoverables reduced by ceded premiums payables due to reinsurers, letters of credit, and collateral posted for the benefit of Ambac.