Segment Information (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Financial Information by Reportable Segment

The following table is a summary of financial information by reportable segment for the affected periods:


Successor Ambac – Three Months Ended September 30, 2013	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	157,382		$	14,144		$	126		$	—		$	171,652
Inter-segment		512			(472	)		8,259			(8,299	)		—

Total revenues	$	157,894		$	13,672		$	8,385		$	(8,299	)	$	171,652

Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2) (3)}	$	219,006		$	12,812		$	(217	)	$	—		$	231,601
Inter-segment		(8,664	)		(623	)		9,287			—			—

Pre-tax income (loss) from continuing operations	$	210,342		$	12,189		$	9,070		$	—		$	231,601

Total assets as of September 30, 2013	$	28,117,113		$	477,111		$	39,414		$	—		$	28,633,638

Net investment income	$	51,637		$	474		$	15		$	—		$	52,126
Insurance intangible amortization	$	37,473		$	—		$	—		$	—		$	37,473
Interest expense	$	31,281		$	536		$	—		$	—		$	31,817
Reorganization items ⁽⁴⁾	$	—		$	—		$	4		$	—		$	4


Successor Ambac – Five Months Ended September 30, 2013	Financial Guarantee ⁽³⁾			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	317,287		$	96,634		$	146		$	—		$	414,067
Inter-segment		911			(846	)		13,684			(13,749	)		—

Total revenues	$	318,198		$	95,788		$	13,830		$	(13,749	)	$	414,067

Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2)}	$	343,896		$	94,504		$	(1,004	)	$	—		$	437,396
Inter-segment		(14,161	)		(1,146	)		15,307		$	—			—

Pre-tax income (loss) from continuing operations	$	329,735		$	93,358		$	14,303		$	—		$	437,396

Total assets as of September 30, 2013	$	28,117,113		$	477,111		$	39,414		$	—		$	28,633,638

Net investment income	$	77,652		$	632		$	38		$	—		$	78,322
Insurance intangible amortization	$	62,425		$	—		$	—		$	—		$	62,425
Interest expense	$	52,057		$	904		$	—		$	—		$	52,961
Reorganization items ⁽⁴⁾	$	—		$	—		$	428		$	—		$	428


Predecessor Ambac – Four Months Ended April 30, 2013	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	633,010		$	7,339		$	39		$	—		$	640,388
Inter-segment		940			(882	)	$	197,055			(197,113	)		—

Total revenues	$	633,950		$	6,457		$	197,094		$	(197,113	)	$	640,388

Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2)}	$	1,830,165		$	3,233		$	1,514,635		$	—		$	3,348,033
Inter-segment		(197,187	)		(1,101	)		198,288		$	—			—

Pre-tax income (loss) from continuing operations	$	1,632,978		$	2,132		$	1,712,923		$	—		$	3,348,033

Total assets as of April 30, 2013	$	28,287,321		$	536,711		$	29,403		$	—		$	28,853,435

Net investment income	$	115,129		$	1,572		$	39		$	—		$	116,740
Interest expense	$	29,718		$	1,307		$	—		$	—		$	31,025
Reorganization items ⁽⁴⁾	$	(1,231,550	)	$	1,505		$	(1,515,135	)	$	—		$	(2,745,180	)


Predecessor Ambac – Three months ended September 30, 2012	Financial Guarantee		Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	230,014	$	(33,021	)	$	169		$	—		$	197,162
Inter-segment		1,244		(1,197	)		—			(47	)		—

Total revenues	$	231,258	$	(34,218	)	$	169		$	(47	)	$	197,162

Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2)}	$	196,302	$	(35,434	)	$	(2,828	)	$	—		$	158,040
Inter-segment		2,530		(1,897	)		(633	)		—			—

Pre-tax income (loss) from continuing operations	$	198,832	$	(37,331	)	$	(3,461	)	$	—		$	158,040

Total assets as of September 30, 2012	$	26,206,822	$	703,945		$	37,125		$	—		$	26,947,892

Net investment income	$	81,037	$	2,986		$	55		$	—		$	84,078
Interest expense	$	21,712	$	1,556		$	—		$	—		$	23,268
Reorganization items ⁽⁴⁾	$	—	$	—		$	1,252		$	—		$	1,252


Predecessor Ambac – Nine months ended September 30, 2012	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Revenues:
Unaffiliated customers ⁽¹⁾	$	587,506		$	(72,451	)	$	282		$	—		$	515,337
Inter-segment		4,140			(3,986	)		645			(799	)		—

Total revenues	$	591,646		$	(76,437	)	$	927		$	(799	)	$	515,337

Pre-tax income (loss) from continuing operations:
Unaffiliated customers ^{(1) (2)}	$	(314,598	)	$	(80,021	)	$	(7,280	)	$	—		$	(401,899	)
Inter-segment		2,845			(3,681	)		836			—			—

Pre-tax income (loss) from continuing operations	$	(311,753	)	$	(83,702	)	$	(6,444	)	$	—		$	(401,899	)

Total assets as of September 30, 2012	$	26,206,822		$	703,945		$	37,125		$	—		$	26,947,892

Net investment income	$	276,251		$	13,611		$	169		$	—		$	290,031
Interest expense	$	83,966		$	4,996		$	—		$	—		$	88,962
Reorganization items ⁽⁴⁾	$	—		$	—		$	4,480		$	—		$	4,480

(1)	Included in both revenues from unaffiliated customers and in pre-tax income (loss) from continuing operations from unaffiliated customers is net investment income.

(2)	Included in pre-tax income (loss) from continuing operations from unaffiliated customers is interest expense.

(3)

Included in pre-tax income from continuing operations from unaffiliated customers is amortization of intangible asset arising from financial guarantee contracts that were set to fair value upon adoption of Fresh Start. See “Note 7: Financial Guarantee Insurance Contracts,” for additional information.

(4)	Refer to Note 2: Fresh Start Financial Statement Reporting, for a further discussion of Reorganization items.

Schedule of Gross Premiums Written, Net Premiums Earned and Net Change in Fair Value of Credit Derivatives

The following table summarizes gross premiums written, net premiums earned and the net change in fair value of credit derivatives included in the Financial Guarantee segment by location of risk for the affected periods:


	Successor Ambac – Three Months Ended September 30, 2013							Predecessor Ambac – Three Months Ended September 30, 2012
	Gross Premiums Written			Net Premiums Earned		Net Change In Fair Value Of Credit Derivatives		Gross Premiums Written			Net Premiums Earned		Net Change In Fair Value Of Credit Derivatives
United States	$	(25,030	)	$	50,234	$	21,911	$	(40,748	)	$	92,132	$	15,845
United Kingdom		(2,789	)		15,273		948		(1,060	)		14,763		716
Other international		(6,561	)		5,442		8,335		(13,502	)		6,179		10,879

Total	$	(34,380	)	$	70,949	$	31,194	$	(55,310	)	$	113,074	$	27,440


	Successor Ambac – Five Months Ended September 30, 2013							Predecessor Ambac – Four Months Ended April 30, 2013								Predecessor Ambac – Nine Months Ended September 30, 2012
	Gross Premiums Written			Net Premiums Earned		Net Change In Fair Value Of Credit Derivatives		Gross Premiums Written			Net Premiums Earned		Net Change In Fair Value Of Credit Derivatives			Gross Premiums Written			Net Premiums Earned		Net Change in Fair Value of Credit Derivatives
United States	$	(49,523	)	$	96,574	$	36,860	$	(16,102	)	$	104,594	$	(31,134	)	$	(165,408	)	$	235,672	$	7,577
United Kingdom		(4,706	)		24,113		3,061		10,673			18,071		(5,861	)		11,325			55,355		(3,721	)
Other international		(14,232	)		8,301		42,493		(8,696	)		7,335		(23,389	)		(21,694	)		20,039		8,947

Total	$	(68,461	)	$	128,988	$	82,414	$	(14,125	)	$	130,000	$	(60,384	)	$	(175,777	)	$	311,066	$	12,803

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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