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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2024
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, 2024 and December 31, 2023, 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, 2024December 31, 2023
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$84 $84 $— $84 $— $99 $99 $— $99 $— 
Corporate obligations779 779 — 779 — 745 745 — 726 19 
Foreign obligations115 115 109 6 — 100 100 100 — — 
U.S. government obligations91 91 91 — — 82 82 82 — — 
Residential mortgage-backed securities281 281 — 281 — 250 250 — 250 — 
Commercial mortgage-backed securities24 24 — 24 — 19 19 — 19 — 
Collateralized debt obligations113 113 — 113 — 139 139 — 139 — 
Other asset-backed securities252 252 — 173 79 303 303 — 235 68 
Fixed maturity securities, pledged as collateral:
U.S. government obligations27 27 27 — — — — — — — 
Short-term— — — — — 27 27 27 — — 
Short term investments305 305 304 1 — 426 426 421 5 — 
Other investments (1)
561 535 174 — — 475 463 77 — — 
Cash, cash equivalents and restricted cash70 70 70 — — 28 28 27 2 — 
Other assets - Derivatives:
Interest rate swaps—asset position26 26 — — 26 25 25 — — 25 
Warrants1 1 — — 1 1 1 — — 1 
FX forward contracts6 6 — 6 — — — — — — 
Other assets-Loans1 1 — — 1 2 2 — — 2 
Variable interest entity assets:
Fixed maturity securities: Corporate obligations, fair value option2,146 2,146 — — 2,146 2,072 2,072 — — 2,072 
Fixed maturity securities: Municipal obligations, available-for-sale92 92 — 92 — 95 95 — 95 — 
Restricted cash47 47 47 — — 246 246 246 — 
Loans1,651 1,651 — — 1,651 1,663 1,663 — — 1,663 
Derivative assets: Interest rate swaps—asset position189 189 — 189 — 190 190 — 190 — 
Derivative assets: Currency swaps—asset position26 26 — 26 — 36 36 — 36 — 
Total financial assets$6,890 $6,864 $822 $1,776 $3,904 $7,022 $7,010 $979 $1,795 $3,850 
Financial liabilities:
Short-term debt, including accrued interest$151 $153 $— $— $153 $— $— $— $— $— 
Long term debt, including accrued interest1,031 743 — 724 20 983 697 — 679 18 
Other liabilities - Derivatives:
Interest rate swaps—liability position35 35 — 35 — 35 35 — 35 — 
Liabilities for net financial guarantees
written (2)
247 523 — — 523 292 788 — — 788 
Variable interest entity liabilities:
Long-term debt (includes $2,738 at fair value)2,996 3,002 — 2,786 216 2,967 2,980 — 2,760 220 
Derivative liabilities: Interest rate swaps—liability position1,223 1,223 — 1,223 — 1,197 1,197 — 1,197 — 
Total financial liabilities$5,683 $5,678 $— $4,768 $911 $5,474 $5,697 $— $4,671 $1,026 
(1)Excluded from the fair value measurement categories in the table above are investment funds of $361 and $386 as of September 30, 2024 and December 31, 2023, 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 $26 and $13 as of September 30, 2024 and December 31, 2023, 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 2024 and 2023. 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, 2024:
Balance, beginning of period$77 $18 $2,010 $1,567 $3,672 
Total gains/(losses) realized and unrealized:
Included in earnings— 9 19 59 88 
Included in other comprehensive income— — 116 90 207 
Purchases3 — — — 3 
Settlements(1)— — (66)(66)
Balance, end of period$79 $27 $2,146 $1,651 $3,903 
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $9 $19 $59 $88 
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date$— $— $116 $90 $207 
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)
Level 3 - Financial Assets and Liabilities Accounted for at Fair Value
VIE Assets
InvestmentsDerivativesInvestmentsLoansTotal
Nine Months Ended September 30, 2024:
Balance, beginning of period$87 $26 $2,072 $1,663 $3,848 
Total gains/(losses) realized and unrealized:
Included in earnings7 1 (13)109 104 
Included in other comprehensive income9 — 99 76 184 
Purchases3 — — — 3 
Settlements(27)— (12)(197)(236)
Balance, end of period$79 $27 $2,146 $1,651 $3,903 
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$7 $1 $(13)$109 $104 
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$9 $— $99 $76 $184 
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)
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)$28 13 
Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings
Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the affected periods are reported as follows:
Three Months Ended September 30, 2024Three Months Ended September 30, 2023
Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
on Variable
Interest
Entities 		Other
Income or
(Expense)		Net
Investment
Income		Net Gains
(Losses) on
Derivative
Contracts		Income (Loss)
on Variable
Interest
Entities		Other
Income or
(Expense)
Total gains (losses) included in earnings for the period$—$9$79$—$—$(11)$27$—
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date—979——(11)27—
Nine Months Ended September 30, 2024Nine Months Ended September 30, 2023
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$7$1$96$—$1$(11)$99$—
Changes in unrealized gains or losses included in earnings relating to the assets and liabilities still held at the reporting date9196——(11)96—