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Investments
 12 Months Ended
Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments
6.    INVESTMENTS
Ambac’s invested assets are primarily comprised of (i) fixed maturity securities classified as either available-for-sale, (ii) interests in pooled investment funds which are reported within Other investments on the Consolidated Balance Sheets and (iii) preferred equity investments which are reported within Other investments on the Consolidated Balance Sheets. Interests in pooled investment funds are limited partner interests and are reported using the equity method.
Fixed Maturity Securities
The amortized cost and estimated fair value of available-for-sale investments, at December 31, 2024 and 2023 were as follows:
December 31, 2024December 31, 2023
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value		Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
Fixed maturity securities:
Municipal obligations$14,646 $— $7 $570 $14,083 $9,394 — 13 696 8,711 
Corporate obligations
92,990 — 107 3,905 89,192 92,694 — 262 4,965 87,991 
U.S. government obligations41,706 — 98 809 40,995 39,091 — 364 933 38,522 
Residential mortgage-backed securities2,475 — — 29 2,446 — — — — — 
Commercial mortgage-backed securities2,127 — 8 34 2,101 — — — — — 
Collateralized debt obligations3,131 — 13 2 3,142 — — — — — 
Other asset-backed securities5,049 — 14 2 5,061 — — — — — 
162,124 — 247 5,351 157,020 141,179 — 639 6,594 135,224 
Short-term127,588 — 13 — 127,601 200,506 — 4 — 200,510 
Total available-for-sale investments$289,712 $— $260 $5,351 $284,621 341,685 $— $643 $6,594 $335,734 
The amortized cost and estimated fair value of available-for-sale investments, at December 31, 2024, by contractual maturity, were as follows:
Amortized
Cost		Estimated
Fair Value
Due in one year or less$158,357 $158,056 
Due after one year through five years62,715 61,169 
Due after five years through ten years54,882 51,688 
Due after ten years976 958 
276,930 271,871 
Residential mortgage-backed securities2,475 2,446 
Commercial mortgage-backed securities2,127 2,101 
Collateralized debt obligations3,131 3,142 
Other asset-backed securities5,049 5,061 
Total$289,712 $284,621 
Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties.
Unrealized Losses on Fixed Maturity Securities
The following table shows gross unrealized losses and fair values of Ambac’s available-for-sale investments, which at December 31, 2024, did not have an allowance for credit losses under the CECL standard. This information is aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2024 and 2023:
December 31, 2024December 31, 2023
Less Than 12 Months12 Months or MoreTotalLess Than 12 Months12 Months or MoreTotal
Fair
Value		Gross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair
Value		Gross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss
Fixed maturity securities:
Municipal obligations$6,042 $112 $6,582 $458 $12,624 $570 $732 $17 $7,015 $679 $7,747 $696 
Corporate obligations23,784 269 46,612 3,636 70,396 3,905 12,134 49 59,010 4,916 71,144 4,965 
U.S. government obligations15,919 344 14,818 465 30,737 809 6,847 37 20,981 896 27,828 933 
Residential mortgage-backed securities2,446 29 — — 2,446 29 — — — — — — 
Commercial mortgage-backed securities738 34 — — 738 34 — — — — — — 
Collateralized debt obligations655 2 — — 655 2 — — — — — — 
Other asset-backed securities1,428 2 — — 1,428 2 — — — — — — 
51,012 792 68,012 4,559 119,024 5,351 19,713 103 87,006 6,491 106,719 6,594 
Short-term— — — — — — 619 — — — 619 — 
Total temporarily impaired securities$51,012 $792 $68,012 $4,559 $119,024 $5,351 $20,332 $103 $87,006 $6,491 $107,338 $6,594 

Management has determined that the securities in the above table do not have credit impairment as of December 31, 2024 and 2023 based upon (i) no actual or expected principal and interest payment defaults on these securities and (ii) analysis of the creditworthiness of the issuer.
Ambac’s assessment about whether a security is credit impaired reflects management’s current judgment regarding facts and circumstances specific to the security and other factors. If that judgment changes, Ambac may record a charge for credit impairment in future periods.
The declines in fair value and resultant unrealized losses across asset classes as of December 31, 2024, included in the above table resulted primarily from the impact of increasing interest rates since the securities were purchased. Management has determined that the securities with unrealized losses are not credit impaired. Further discussion of management's assessment with respect to security categories with larger unrealized loss balances is below.
Corporate obligations
The gross unrealized losses on corporate obligations as of December 31, 2024, resulted primarily from an increase in interest rates since the securities were purchased. Unrealized losses of $3,905 related to 145 investment grade securities with an average unrealized loss equal to 5% of amortized cost at December 31, 2024. Securities that have below investment grade credit ratings or are unrated comprise $0 of the gross unrealized loss at December 31, 2024. Management believes that the full and timely receipt of all principal and interest payment on corporate obligations with unrealized losses as of December 31, 2024, is probable.
Investment Income (Loss)
Net investment income (loss) was comprised of the following for the affected periods:
Year Ended December 31,202420232022
Fixed maturity securities$4,895 $3,696 $2,163 
Short-term investments10,033 9,287 2,345 
Investment expense(365)(296)(139)
Securities available-for-sale and short-term14,563 12,687 4,369 
Fixed maturity securities - trading— — — 
Other investments(115)472 134 
Total net investment income (loss)$14,448 $13,159 $4,503 
Net investment income (loss) from Other investments primarily represents changes in fair value on equity securities including certain pooled investment funds, and income from investment limited partnerships and other equity interests accounted for under the equity method.
Net Investments Gains (Losses), including Impairments
The following table details amounts included in net investment gains (losses) and impairments included in earnings for the affected periods:
Year Ended December 31,202420232022
Gross realized gains on securities$6,020 $57 $43 
Gross realized losses on securities(1)(38)(105)
Foreign exchange (losses) gains— — — 
Credit impairments(6,516)— — 
Intent to sell impairments— — — 
Net investment gains (losses), including impairments$(497)$19 $(62)
Ambac had an allowance for credit losses $0 and $0 at December 31, 2024 and 2023, respectively.
Ambac did not purchase any financial assets with credit deterioration for the years ended December 31, 2024 and 2023.
Deposits with Regulators and Other Restrictions
Securities carried at $22,861 and $20,748 at December 31, 2024 and 2023, respectively, were deposited by Ambac's insurance subsidiaries with governmental authorities or designated custodian banks as required by laws affecting insurance companies. Invested assets of AAC carried at $800 and reported within assets held-for-sale on Ambac's consolidated balance sheet as of December 31, 2024, were deposited as security in connection with a letter of credit issued for a corporate office lease. The lease will be transferred to Ambac in connection with the AAC sale. Fiduciary funds held by Ambac's insurance distribution subsidiaries, carried at $2,845 and $1,769 at December 31, 2024 and 2023, respectively, are included in invested assets.
Other Investments
Ambac's investment portfolio includes a limited partnership interest in a private equity fund which seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. The fair value of Ambac's investment in the fund was $7,499 and $5,817 as of December
31, 2024 and 2023, determined using net asset value ("NAV") as a practical expedient. Redemptions may be made quarterly with 90 days notice subject to withdrawal limitations and/or redemption fees which vary with the timing and notification of withdrawal provided by the investor. Ambac's unfunded commitments total $1,724 on this private equity fund at December 31, 2024.
Other investments also include preferred equity investments with a carrying value of $20,618 and $12,500 as of December 31, 2024 and 2023, respectively, that do not have readily determinable fair values and are carried at cost, less any impairments as permitted under the Investments — Equity Securities Topic of the ASC. Impairments of $6,516, $0, and $0 were recorded on these investments in the years ended December 31, 2024, 2023 and 2022, respectively. There were no adjustments to fair value to reflect observable price changes in identical or similar investments from the same issuer during the years ended December 31, 2024, 2023 and 2022.
Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities