Variable Interest Entities (Tables)

12 Months Ended

Dec. 31, 2023

Variable Interest Entity Not Primary Beneficiary Table [Line Items]

Schedule of Variable Interest Entities Assets and Liabilities [Table Text Block]

The following schedule details the components of Income (loss) on variable interest entities for the affected periods:

Year ended December 31,	2023		2022		2021
Net change in fair value of VIE assets and liabilities reported under the fair value option	$	4	$	—	$	4
Less: Credit risk changes of fair value option long-term debt reported through other comprehensive income (loss)	—		(1)		1
Net change in fair value of VIE assets and liabilities reported in earnings under the fair value option	5		(1)		5
Investment income (loss)	7		(4)		6
Net realized investment gains (losses) on available-for-sale securities	1		2		2
Interest expense on long-term debt carried at par less unamortized cost	(12)		(12)		(6)
Other expenses	(1)		(1)		(1)
Gain (loss) from consolidating VIEs	4		37		—
Income (loss) on variable interest entities	$	3	$	21	$	7

Variable Interest Entity Not Primary Beneficiary Table [Table Text Block]

The following table displays the carrying amount of the assets, liabilities and maximum exposure to loss of Ambac’s variable interests in non-consolidated VIEs resulting from financial guarantee and derivative contracts by major underlying asset classes, as of December 31, 2023 and 2022:

	December 31, 2023:								December 31, 2022:
	Carrying Value of Assets and Liabilities								Carrying Value of Assets and Liabilities
	Maximum Exposure To Loss (1)		Insurance Assets (2)		Insurance Liabilities (3)		Net Derivative Assets (Liabilities) (4)		Maximum Exposure To Loss (1)		Insurance Assets (2)		Insurance Liabilities (3)		Net Derivative Assets (Liabilities) (4)
Global structured finance:
Mortgage-backed—residential	$	2,391	$	135	$	432	$	—	$	2,559	$	266	$	400	$	—
Other consumer asset-backed	540		5		200		—		652		6		225		—
Other	433		2		2		—		430		2		2		1
Total global structured finance	3,364		141		634		—		3,642		274		628		1
Global public finance	17,498		209		202		—		17,997		216		212		—
Total	$	20,861	$	351	$	836	$	—	$	21,639	$	490	$	840	$	1

(1)Maximum exposure to loss represents the maximum future payments of principal and interest on insured obligations and derivative contracts. Ambac’s maximum exposure to loss does not include the benefit of any financial instruments (such as reinsurance or hedge contracts) that Ambac may utilize to mitigate the risks associated with these variable interests.

(2)Insurance assets represent the amount included in “Premium receivables” and “Subrogation recoverable” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets.

(3)Insurance liabilities represent the amount included in “Loss and loss adjustment expense reserves” and “Unearned premiums” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets.

(4)Net derivative assets (liabilities) represent the fair value recognized on interest rate swaps on Ambac’s Consolidated Balance Sheets.