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Investments
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investments
4.    INVESTMENTS
Ambac’s invested assets are primarily comprised of 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 March 31, 2025 and December 31, 2024, were as follows:
March 31, 2025:December 31, 2024:
Amortized
Cost		Allowance for Credit Losses Gross UnrealizedEstimated
Fair Value		Amortized
Cost		Allowance for Credit LossesGross UnrealizedEstimated
Fair Value
GainsLossesGainsLosses
Fixed maturity securities:
Municipal obligations$14,660 $— $53 $408 $14,305 $14,646 — $7 $570 $14,083 
Corporate obligations91,979 — 343 3,153 89,169 92,990 — 107 3,905 89,192 
U.S. government obligations44,821 — 429 390 44,860 41,706 — 98 809 40,995 
Residential mortgage-backed securities3,447 — 16 18 3,445 2,475 — — 29 2,446 
Commercial mortgage-backed securities2,067 — 4 22 2,049 2,127 — 8 34 2,101 
Collateralized debt obligations2,941 — 14 1 2,954 3,131 — 13 2 3,142 
Other asset-backed securities4,773 — 16 2 4,787 5,049 — 14 2 5,061 
164,688 — 875 3,994 161,569 162,124 — 247 5,351 157,020 
Short-term101,604 — 6 — 101,610 127,588 — 13 — 127,601 
Total available-for-sale investments$266,292 $— $881 $3,994 $263,179 $289,712 — $260 $5,351 $284,621 
The amortized cost and estimated fair value of available-for-sale investments, at March 31, 2025, by contractual maturity, were as follows:
Amortized
Cost		Estimated
Fair Value
Due in one year or less$135,653 $135,297 
Due after one year through five years58,649 57,690 
Due after five years through ten years57,785 55,980 
Due after ten years977 977 
253,064 249,944 
Residential mortgage-backed securities3,447 3,445 
Commercial mortgage-backed securities2,067 2,049 
Collateralized debt obligations2,941 2,954 
Other asset-backed securities4,773 4,787 
Total$266,292 $263,179 
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 March 31, 2025 and December 31, 2024, did not have an allowance for credit losses. This information is aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2025 and December 31, 2024:
March 31, 2025December 31, 2024
Less Than 12 Months12 Months or MoreTotalLess Than 12 Months12 Months or MoreTotal
Fair 
Value		Gross
Unrealized
Loss		Fair 
Value		Gross
Unrealized
Loss		Fair 
Value		Gross
Unrealized
Loss		Fair 
Value		Gross
Unrealized
Loss		Fair 
Value		Gross
Unrealized
Loss		Fair 
Value		Gross
Unrealized
Loss
Fixed maturity securities:
Municipal obligations$2,070 $35 $6,660 $373 $8,730 $408 $6,042 $112 $6,582 $458 $12,624 $570 
Corporate obligations9,782 135 42,021 3,018 51,803 3,153 23,784 269 46,612 3,636 70,396 3,905 
Foreign obligations— — — — — — — — — — — — 
U.S. government obligations6,704 46 12,148 344 18,852 390 15,919 344 14,818 465 30,737 809 
Residential mortgage-backed securities1,899 18 — — 1,899 18 2,446 29 — — 2,446 29 
Commercial mortgage-backed securities750 22 — — 750 22 738 34 — — 738 34 
Collateralized debt obligations654 1 — — 654 1 655 2 — — 655 2 
Other asset-backed securities848 2 — — 848 2 1,428 2 — — 1,428 2 
Total temporarily impaired securities$24,475 $259 $60,829 $3,735 $85,304 $3,994 $51,012 $792 $68,012 $4,559 $119,024 $5,351 

Management has determined that the securities in the above table do not have credit impairment as of March 31, 2025 and December 31, 2024, based upon (i) no actual or expected principal and interest payment defaults on these securities; (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 March 31, 2025, included in the above table resulted 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 March 31, 2025, resulted primarily from an increase in interest rates since the securities were purchased. Unrealized losses of $3,153 related to 136 investment grade securities with an average unrealized loss equal to 6% of amortized cost at March 31, 2025. Management believes that the full and timely receipt of all principal and interest payment on corporate obligations with unrealized losses as of March 31, 2025, is probable.
Investment Income (Loss)
Net investment income (loss) was comprised of the following for the affected periods:
Three Months Ended March 31,20252024
Fixed maturity securities$1,400 $1,170 
Short-term investments1,457 2,590 
Loans35 — 
Investment expense2 (90)
Securities available-for-sale and short-term2,894 3,670 
Other investments(79)(30)
Total net investment income (loss)$2,815 $3,640 
Net investment income (loss) from Other investments primarily represents income from investment limited partnerships and other equity interests accounted for under the equity method.
Net Investments Gains (Losses), including Impairments:
The following table details amounts included in net investment gains (losses) and impairments included in earnings for the affected periods:
Three Months Ended March 31,20252024
Gross realized gains on securities$— $4 
Gross realized losses on securities(3)(3)
Foreign exchange gains (losses) — — 
Credit impairments— — 
Intent / requirement to sell impairments— — 
Net investment gains (losses), including impairments$(3)$1 
Ambac had an allowance for credit losses of $0 and $0 at March 31, 2025 and 2024, respectively.
Ambac did not purchase any financial assets with credit deterioration for the three months ended March 31, 2025 and 2024.
Deposits with Regulators and Other Restrictions:
Securities carried at $23,628 and $22,861 at March 31, 2025 and December 31, 2024, respectively, were deposited by Ambac's insurance subsidiaries with governmental authorities or designated custodian banks as required by laws affecting insurance companies. Invested assets carried at $761 and $800 at March 31, 2025 and December 31, 2024, were deposited as security in connection with a letter of credit issued for an office lease. Fiduciary funds held by Ambac's insurance distribution
subsidiaries, carried at $2,210 and $2,845 at March 31, 2025 and December 31, 2024, 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 $7,420 and $7,499 as of March 31, 2025 and December 31, 2024, 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 March 31, 2025.
Other investments also include preferred equity investments with a carrying value of $20,618 and $20,618 as of March 31, 2025 and December 31, 2024, 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 $0 and $0 respectively, were recorded on these investments in the three months ended March 31, 2025 and 2024. There were no adjustments to fair value to reflect observable price changes in identical or similar investments from the same issuer during the three months ended March 31, 2025 and 2024.