Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Feb. 22, 2022 | Jun. 30, 2021 | Apr. 30, 2013 | |
Entity Information [Line Items] | ||||
Entity File Number | 1-10777 | |||
Document Quarterly Report | true | |||
Document Transition Report | false | |||
City Area Code | (212) | |||
Entity Incorporation, State or Country Code | DE | |||
Document Type | 10-K | |||
Amendment Flag | false | |||
Entity Well-known Seasoned Issuer | Yes | |||
Entity Interactive Data Current | Yes | |||
Entity Voluntary Filers | No | |||
Document Fiscal Year Focus | 2021 | |||
Document Fiscal Period Focus | FY | |||
Entity Registrant Name | AMBAC FINANCIAL GROUP, INC. | |||
Entity Central Index Key | 0000874501 | |||
Current Fiscal Year End Date | --12-31 | |||
Entity Emerging Growth Company | false | |||
Entity Small Business | false | |||
Entity Filer Category | Large Accelerated Filer | |||
Entity Shell Company | false | |||
Entity Common Stock, Shares Outstanding | 46,337,006 | |||
Entity Public Float | $ 723,465,112 | |||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||
Entity Tax Identification Number | 13-3621676 | |||
Entity Address, Address Line One | One World Trade Center | |||
Entity Address, City or Town | New York | |||
Entity Address, State or Province | NY | |||
Entity Address, Postal Zip Code | 10007 | |||
Local Phone Number | 658-7470 | |||
ICFR Auditor Attestation Flag | true | |||
Document Period End Date | Dec. 31, 2021 | |||
Documents Incorporated by Reference | Portions of the Registrant’s Proxy Statement related to its annual meeting of stockholders are incorporated by reference in this Form 10-K in response to Part III Items 10, 11, 12, 13, and 14. | |||
Entity Current Reporting Status | Yes | |||
Common Stock [Member] | ||||
Entity Information [Line Items] | ||||
Title of 12(b) Security | Common Stock, par value $0.01 per share | |||
Trading Symbol | AMBC | |||
Security Exchange Name | NYSE | |||
Warrant [Member] | ||||
Entity Information [Line Items] | ||||
Title of 12(b) Security | Warrants | |||
Trading Symbol | AMBC WS | |||
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Document And Entity Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | New York, NY |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Estimated Fair Value | $ 2,265 | |
Short-term Investments | 414 | $ 492 |
Other Investments | 690 | 595 |
Investments, Total | 2,955 | 3,544 |
Cash and cash equivalents | 17 | 20 |
Restricted Cash | 5 | 13 |
Premiums Receivable, Net | 323 | 370 |
Reinsurance Recoverables, Including Reinsurance Premium Paid | 55 | 33 |
Deferred ceded premium | 90 | 70 |
Subrogation recoverable | 2,092 | 2,156 |
Derivative assets | 76 | 93 |
Intangible assets | 362 | 409 |
Goodwill | 46 | 46 |
Other assets | 68 | 68 |
Total assets | 12,303 | 13,220 |
Liabilities: | ||
Unearned premiums | 395 | 456 |
Liability for Claims and Claims Adjustment Expense | 1,570 | 1,759 |
Ceded premiums payable | 33 | 27 |
Long-term debt | 2,230 | 2,739 |
Accrued interest payable | 576 | 517 |
Derivative liabilities | 95 | 114 |
Other liabilities | 133 | 135 |
Total liabilities | $ 11,187 | $ 12,074 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Stockholders’ equity: | ||
Preferred Stock, Value, Issued | $ 0 | $ 0 |
Common Stock, Value, Issued | 0 | 0 |
Additional paid-in capital | 257 | 242 |
Accumulated other comprehensive income | 58 | 79 |
Retained earnings | 726 | 759 |
Treasury Stock, Value | (3) | (1) |
Total Ambac Financial Group, Inc. stockholders’ equity | 1,038 | 1,080 |
Nonredeemable noncontrolling interest | 60 | 60 |
Total stockholders’ equity | 1,098 | 1,140 |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ 12,303 | $ 13,220 |
Preferred stock, par value | $ 0.01 | |
Common stock, shares issued | 46,477,068 | 45,865,081 |
Common stock, shares authorized | 130,000,000 | 130,000,000 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 18 | $ 7 |
Xchange | ||
Stockholders’ equity: | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 7 | |
Variable Interest Entity [Member] | ||
Assets: | ||
Estimated Fair Value | 3,455 | 3,354 |
Restricted Cash | 2 | 2 |
Loans, at fair value | 2,718 | 2,998 |
Derivative assets | 38 | 41 |
Other assets | 2 | 2 |
Total assets | 6,216 | 6,398 |
Variable interest entity assets: | ||
Loans, at fair value | 2,718 | 2,998 |
Liabilities: | ||
Long-term debt | 4,216 | 4,493 |
Derivative liabilities | 1,940 | 1,835 |
Total liabilities | 6,156 | 6,328 |
Stockholders’ equity: | ||
Long-term Debt | 4,056 | 4,324 |
Fixed Income Securities [Member] | ||
Assets: | ||
Estimated Fair Value | 1,730 | 2,317 |
Collateral Pledged [Member] | ||
Assets: | ||
Estimated Fair Value | 120 | 140 |
Short-term Investments | 105 | 125 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Assets: | ||
Estimated Fair Value | $ 15 | $ 15 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fixed income securities, amortized cost | $ 2,140 | |
Short-term investments, amortized cost | 415 | $ 492 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Uncollectable premium receivables | 9 | 17 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 0 | $ 0 |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, shares authorized | 130,000,000 | 130,000,000 |
Common stock, shares issued | 46,477,068 | 45,865,081 |
Common Stock, Shares, Outstanding | 46,304,139 | |
Treasury stock, shares | 172,929 | 55,942 |
Fixed Income Securities [Member] | ||
Fixed income securities, amortized cost | $ 1,605 | $ 2,175 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Equity investments in pooled funds [Member] | ||
Other Investment Not Readily Marketable, Fair Value | 683 | 544 |
Collateral Pledged [Member] | ||
Short-term investments, amortized cost | 105 | 125 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Fixed income securities, amortized cost | 15 | 15 |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Short-term Investments [Member] | Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Long-term Debt | 4,056 | 4,324 |
Parent Company [Member] | ||
Fixed income securities, amortized cost | 130 | 76 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 3 | 2 |
Parent Company [Member] | Short-term Investments [Member] | ||
Fixed income securities, amortized cost | $ 124 | $ 229 |
Consolidated Statements of Tota
Consolidated Statements of Total Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Net premiums earned | $ 47 | $ 54 | $ 66 |
Net investment income: | |||
Securities available-for-sale and short-term | 74 | 103 | 196 |
Net investment income | 139 | 122 | 227 |
Realized Investment Gains (Losses) | 7 | 22 | 81 |
Derivative, Gain (Loss) on Derivative, Net | 22 | (50) | (50) |
Net realized gains (losses) on extinguishment of debt | 33 | 0 | 0 |
Other income | 27 | 3 | 134 |
Income (loss) on variable interest entities | 7 | 5 | 38 |
Total revenues | 282 | 156 | 496 |
Expenses: | |||
Losses and loss expenses (benefit) | (88) | 225 | 13 |
Intangible amortization | 55 | 57 | 295 |
Operating expenses | 126 | 92 | 103 |
Interest expense | 187 | 222 | 269 |
Total expenses | 281 | 596 | 680 |
Pre-tax income (loss) | 2 | (440) | (183) |
Provision (benefit) for income taxes | 18 | (3) | 32 |
Net income (loss) | (16) | (437) | (216) |
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (1) | ||
Net income (loss) attributable to common stockholders | (17) | (437) | (216) |
Other comprehensive income (loss), after tax: | |||
Net income (loss) | (16) | (437) | (216) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, after Tax | (1) | 1 | 0 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | (1) | (3) | (1) |
Total other comprehensive income (loss), net of income tax | (21) | 37 | 91 |
Total comprehensive income (loss) | (38) | (400) | (125) |
Less: comprehensive (loss) gain attributable to the noncontrolling interest: | |||
Total comprehensive income (loss) attributable to common stockholders | $ (38) | $ (400) | $ (125) |
Basic | $ (0.61) | $ (9.47) | $ (4.69) |
Diluted | $ (0.61) | $ (9.47) | $ (4.69) |
Weighted Average Number of Shares Outstanding, Basic | 46,535,001 | 46,147,062 | 45,954,908 |
Weighted Average Number of Shares Outstanding, Diluted | 46,535,001 | 46,147,062 | 45,954,908 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ (1) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Accounting Standards Update 2016-13 [Member] | Retained Earnings [Member] | Retained Earnings [Member]Accounting Standards Update 2016-13 [Member] | AOCI Attributable to Parent [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock Held in Treasury, at Cost [Member] | Noncontrolling Interest [Member] | Parent Company [Member] | Parent Company [Member]Retained Earnings [Member] | Parent Company [Member]AOCI Attributable to Parent [Member] | Parent Company [Member]Additional Paid-in Capital [Member] | Parent Company [Member]Common Stock Held in Treasury, at Cost [Member] |
Beginning balance at Dec. 31, 2018 | $ 1,633 | $ 1,421 | $ (49) | $ 0 | $ 0 | $ 219 | $ 0 | $ 41 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Total comprehensive income (loss) | (125) | (216) | 91 | 0 | 0 | 0 | 0 | 0 | $ (125) | $ (216) | $ 91 | ||||
Stock-based compensation | 12 | 0 | 0 | 0 | 0 | 12 | 0 | 0 | 12 | $ 12 | |||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (3) | (3) | 0 | 0 | 0 | 0 | 0 | 0 | (3) | (3) | $ 0 | ||||
AMPS Impact on Stockholders Equity | 19 | 19 | |||||||||||||
Ending balance at Dec. 31, 2019 | 1,536 | 1,203 | 42 | 0 | 0 | 232 | 0 | 60 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Total comprehensive income (loss) | (400) | (437) | 37 | 0 | 0 | 0 | 0 | 0 | (400) | (437) | 37 | ||||
Stock-based compensation | 11 | 0 | 0 | 0 | 0 | 11 | 0 | 0 | 11 | 11 | 0 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (3) | (2) | 0 | 0 | 0 | 0 | (1) | 0 | (3) | (2) | (1) | ||||
Ending balance at Dec. 31, 2020 | 1,140 | 759 | 79 | 0 | 0 | 242 | (1) | 60 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 7 | ||||||||||||||
Total comprehensive income (loss) | (38) | (17) | (21) | 0 | 0 | 0 | 0 | 0 | (38) | (17) | $ (21) | ||||
Effect of New Accounting Principle | $ (4) | $ (4) | |||||||||||||
Stock-based compensation | 14 | 0 | 0 | 0 | 0 | 14 | 0 | 0 | 14 | $ 14 | |||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (6) | (4) | 0 | 0 | 0 | 0 | (2) | 0 | $ (6) | $ (4) | $ (2) | ||||
Ending balance at Dec. 31, 2021 | 1,098 | 726 | $ 58 | $ 0 | $ 0 | $ 257 | $ (3) | $ 60 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Noncontrolling Interest, Change in Redemption Value | $ (12) | $ (12) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) attributable to common stockholders | $ (17) | $ (437) | $ (216) |
Net income (loss) | (16) | (437) | (216) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization | 2 | 1 | 0 |
Amortization of bond premium and discount | (13) | (15) | (63) |
Share-based compensation | 14 | 11 | 12 |
Deferred income taxes | 6 | (9) | 1 |
Current income taxes | (4) | 17 | 35 |
Unearned premiums, net | (82) | (48) | (132) |
Losses and loss expenses, net | (147) | 76 | (364) |
Ceded premiums payable | 6 | (3) | (4) |
Premium receivables | 48 | 44 | 77 |
Accrued interest payable | 103 | 93 | 87 |
Amortization of intangible assets | 55 | 57 | 295 |
Net realized investment gains | (7) | (22) | (81) |
Net realized gains (losses) on extinguishment of debt | (33) | 0 | 0 |
Other, net | (35) | 59 | 79 |
Net cash used in operating activities | (131) | (175) | (311) |
Cash flows from investing activities: | |||
Proceeds from sales of bonds | 236 | 1,109 | 1,212 |
Proceeds from matured bonds | 698 | 137 | 379 |
Purchases of bonds | (343) | (975) | (959) |
Proceeds from sales of other invested assets | 39 | 374 | 81 |
Purchases of other invested assets | (127) | (475) | (137) |
Change in short-term investments | 98 | 158 | (218) |
Change in cash collateral receivable | 9 | 0 | 100 |
Proceeds From Financial Guaranty Variable Interest Entity Assets | 171 | 178 | 543 |
Payments to Acquire Businesses, Net of Cash Acquired | (74) | ||
Other, net | (5) | 1 | (2) |
Net cash provided by investing activities | 776 | 432 | 1,000 |
Cash flows from financing activities: | |||
Proceeds from Sale of Senior Surplus Notes | 11 | 0 | 0 |
Paydown of Ambac Note | (1,641) | (121) | (178) |
Payments of Debt Issuance Costs | (12) | 0 | 0 |
Payment, Tax Withholding, Share-based Payment Arrangement | (6) | (3) | (3) |
Paydown of Financial Guaranty Variable Interest Entity Liabilities | (170) | (178) | (542) |
Net Cash Provided by (Used in) Financing Activities | (657) | (303) | (691) |
Effect of Exchange Rate on Cash and Cash Equivalents | 0 | 0 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | (12) | (46) | (2) |
Cash and cash equivalents end of period | 17 | 20 | 24 |
Supplemental disclosure of cash flow information | |||
Income Taxes Paid | 15 | 11 | 21 |
Cash payments related to reorganization items: | |||
Variable interest entity activities | (7) | (5) | (38) |
Increase (Decrease) in Derivative Assets and Liabilities | (23) | 6 | (1) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 23 | 35 | 81 |
Proceeds From Issuance of Ambac UK Debt | 0 | 0 | 12 |
Proceeds from Issuance of Secured Debt | 1,163 | ||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | (1) | ||
Proceeds from (Payments to) Noncontrolling Interests | (1) | ||
Ambac Financial Group, Inc Parent Company Only [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) attributable to common stockholders | (17) | (437) | (216) |
Net income (loss) | (17) | (437) | (216) |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Amortization of bond premium and discount | (9) | (6) | (6) |
Share-based compensation | 14 | 11 | 12 |
Current income taxes | 1 | 30 | 15 |
Net realized investment gains | 5 | 1 | 2 |
Other, net | (6) | (10) | (6) |
Net cash used in operating activities | (10) | 11 | 16 |
Cash flows from investing activities: | |||
Proceeds from matured bonds | 33 | 46 | 86 |
Purchases of bonds | (34) | (45) | (2) |
Proceeds from sales of other invested assets | (8) | 0 | 0 |
Change in short-term investments | 105 | 89 | (125) |
Payments to Acquire Businesses, Net of Cash Acquired | (74) | ||
Net cash provided by investing activities | 95 | 16 | (22) |
Cash flows from financing activities: | |||
Net Cash Provided by (Used in) Financing Activities | (92) | (29) | 0 |
Cash and cash equivalents end of period | 1 | 7 | 9 |
Supplemental disclosure of cash flow information | |||
Income Taxes Paid | $ 0 | $ 0 | $ 1 |
Background and Business Descrip
Background and Business Description | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Background and Business Description | 1. BACKGROUND AND BUSINESS DESCRIPTION Ambac Financial Group, Inc. (“AFG”), headquartered in New York City, is a financial services holding company incorporated in the state of Delaware on April 29, 1991. References to “Ambac,” the “Company,” “we,” “our,” and “us” are to AFG and its subsidiaries, as the context requires. Ambac's business operations include: • Financial Guarantee ("FG") Insurance — Ambac Assurance Corporation ("AAC") and its wholly owned subsidiary, Ambac Assurance UK Limited (“Ambac UK”) are legacy financial guarantee businesses, both of which have been in runoff since 2008 (the "Financial Guarantee Insurance Companies"). • Specialty Property & Casualty Program Insurance ("SPCP") — Currently includes five admitted carriers (Everspan Insurance Company, Providence Washington Insurance Company, 21st Century Indemnity Insurance Company, 21st Century Pacific Insurance Company and 21st Century Auto Insurance Company of New Jersey) and an excess and surplus lines (“E&S” or “nonadmitted”) insurer Everspan Indemnity Insurance Company (collectively, “Everspan”). The 21st Century companies were acquired in 2022. Everspan carriers that are currently part of the intercompany pooling agreement (Everspan Indemnity Insurance Company ("Everspan Indemnity") and Everspan Insurance Company) received an AM Best rating of 'A-' (Excellent) in February 2021. Everspan launched its first insurance program in May 2021. • Managing General Agency / Underwriting ("MGA/U) — Currently includes Xchange Benefits, LLC and Xchange Affinity Underwriting Agency, LLC (collectively, “Xchange”), a property and casualty Managing General Underwriter focussed on accident and health products of which AFG acquired 80% on December 31, 2020. Refer to Note 3. Business Combination for further information relating to this acquisition. While SPCP and MGA/U (together, the "Specialty P&C Program Insurance Platform") are distinct businesses, they are currently not material enough to Ambac's operations to warrant segment presentation. Management evaluates its reportable segments at least annually and as facts and circumstances change. Limitations on Voting and Transfer of Common Stock AFG’s Amended and Restated Certificate of Incorporation limits voting and transfer rights of stockholders in significant ways. Article IV contains voting restrictions applicable to any person owning at least 10% of AFG's common stock so that such person (including any group consisting of such person and any other person with whom such person or any affiliate or associate of such person has any agreement, contract, arrangement or understanding with respect to acquiring, voting, holding or disposing of AFG’s common stock) shall not be entitled to cast votes in excess of one vote less than 10% of the votes entitled to be cast by all common stock holders, except as otherwise approved by the OCI (as defined below). Article XII contains substantial restrictions on the ability to transfer AFG’s common stock. In order to preserve certain tax benefits, subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), either (i) any person or group of persons shall become a holder of 5% or more of the Company’s common stock or (ii) the percentage stock ownership interest in AFG of any holder of 5% or more of the Company’s common stock shall be increased (a “Prohibited Transfer”). These restrictions shall not apply to an attempted transfer if the transferor or the transferee obtains the written approval of AFG’s Board of Directors to such transfer. A purported transferee of a Prohibited Transfer shall not be recognized as a stockholder of AFG for any purpose whatsoever in respect of the securities which are the subject of the Prohibited Transfer (the “Excess Securities”). Until the Excess Securities are acquired by another person in a transfer that is not a Prohibited Transfer, the purported transferee of a Prohibited Transfer shall not be entitled with respect to such Excess Securities to any rights of stockholders of AFG, including, without limitation, the right to vote such Excess Securities and to receive dividends or distributions, whether liquidating or otherwise, in respect thereof, if any. Once the Excess Securities have been acquired in a transfer that is not a Prohibited Transfer, the securities shall cease to be Excess Securities. If the Board determines that a transfer of securities constitutes a Prohibited Transfer then, upon written demand by AFG, the purported transferee shall transfer or cause to be transferred any certificate or other evidence of ownership of the Excess Securities within the purported transferee’s possession or control, together with any distributions paid by AFG with respect to such Excess Securities, to an agent designated by AFG. Such agent shall thereafter sell such Excess Securities and the proceeds of such sale shall be distributed as set forth in the Amended and Restated Certificate of Incorporation. If the purported transferee of a Prohibited Transfer has resold the Excess Securities before receiving such demand, such person shall be deemed to have sold the Excess Securities for AFG’s agent and shall be required to transfer to such agent the proceeds of such sale, which shall be distributed as set forth in the Amended and Restated Certificate of Incorporation. Strategies to Enhance Shareholder Value The Company's primary goal is to maximize shareholder value through the execution of key strategies for both its (i) Specialty P&C Program Insurance Platform and (ii) Financial Guarantee Insurance companies. Specialty P&C Insurance Program Platform strategic priorities include: • Growing and diversifying Everspan's participatory fronting platform with existing and new program partners. • Building a leading federation of specialty MGA/U partners through additional acquisitions and de novo builds, supported by a centralized business services unit including core technology solutions. • Making opportunistic investments that are strategic to the overall Specialty P&C Program Insurance Platform. Financial Guarantee Insurance companies’ strategic priorities include: • Actively managing, de-risking and mitigating insured portfolio risk. • Pursuing loss recovery through active litigation and other means, particularly residential mortgage back security representation and warranty litigation. • Improving operating efficiency and optimizing our asset and liability profile. • Exploring, at the appropriate time, strategic options to further maximize value for AFG. The execution of Ambac’s strategy to increase the value of its investment in AAC is subject to the restrictions set forth in the Settlement Agreement, dated as of June 7, 2010 (the "Settlement Agreement"), by and among AAC, Ambac Credit Products LLC ("ACP"), AFG and certain counterparties to credit default swaps with ACP that were guaranteed by AAC; as well as the Stipulation and Order among the Office of the Commissioner of Insurance for the State of Wisconsin (“OCI”), AFG and AAC that became effective on February 12, 2018, as amended (the “Stipulation and Order”); and the indenture for the Tier 2 Notes (as defined below), each of which requires OCI and, under certain circumstances, holders of the debt instruments benefiting from such restrictions, to approve certain actions taken by or in respect of AAC. In exercising its approval rights, OCI will act for the benefit of policyholders, and will not take into account the interests of AFG. Opportunities for remediating losses on poorly performing insured transactions also depend on market conditions, including the perception of AAC’s creditworthiness, the structure of the underlying risk and associated policy as well as other counterparty specific factors. AAC's ability to commute policies or purchase certain investments may also be limited by available liquidity. The Segregated Account and the Rehabilitation Exit Transactions In March 2010, AAC established a Segregated Account pursuant to Wisc. Stat. §611.24 (2) (the “Segregated Account”) to segregate certain segments of AAC’s liabilities, and the Wisconsin Insurance Commissioner, acting as rehabilitator (the "Rehabilitator") commenced rehabilitation proceedings in the Dane County, Wisconsin Circuit Court (the “Rehabilitation Court”) with respect to the Segregated Account (the “Segregated Account Rehabilitation Proceedings”) in order to permit OCI to facilitate an orderly run-off and/or settlement of the liabilities allocated to the Segregated Account. On October 8, 2010, OCI filed a plan of rehabilitation for the Segregated Account (the “Segregated Account Rehabilitation Plan”) in the Rehabilitation Court, which was confirmed on January 24, 2011. On June 11, 2014, the Rehabilitation Court approved amendments to the Segregated Account Rehabilitation Plan and the Segregated Account Rehabilitation Plan, as amended, became effective on June 12, 2014. Policy obligations not allocated to the Segregated Account remained in the General Account of AAC, and such policies in the General Account were not subject to and, therefore, were not directly impacted by the Segregated Account Rehabilitation Plan. On February 12, 2018, the rehabilitation of the Segregated Account was concluded pursuant to an amendment to the Segregated Account Rehabilitation Plan (the "Second Amended Plan of Rehabilitation"). The conclusion of the rehabilitation followed the successful completion of Ambac's surplus note exchange offers and consent solicitation, which, together with the satisfaction of all conditions precedent to the effectiveness of the Second Amended Plan of Rehabilitation, including the discharge of all unpaid policy claims of the Segregated Account, including accretion amounts thereon ("Deferred Amounts"), completed the restructuring transactions (the "Rehabilitation Exit Transactions"). In connection with the discharge of all unpaid policy claims, AAC issued the secured notes and the Tier 2 notes. See Note 12. Long-term Debt for additional information regarding the secured notes and Tier 2 Notes. Bank Settlement Agreement As part of the Rehabilitation Exit Transactions, AFG and AAC received sufficient consents from holders of surplus notes for a waiver and amendment (the "BSA Waiver and Amendment") of the Settlement Agreement. After giving effect to the BSA Waiver and Amendment, the Settlement Agreement continues to limit certain activities of AAC and its subsidiaries, such as issuing indebtedness; engaging in mergers and similar transactions; disposing of assets; making restricted payments; creating or permitting liens; engaging in transactions with affiliates; modifying or creating tax sharing agreements; and taking certain actions with respect to surplus notes (among other restrictions and limitations). The Settlement Agreement includes certain allowances with respect to these activities and generally requires the approval of OCI and, in some cases, holders of surplus notes issued pursuant to the Settlement Agreement, for consents, waivers or amendments. Stipulation and Order Upon consummation of the Rehabilitation Exit Transactions, the Stipulation and Order became effective. The Stipulation and Order includes affirmative covenants, as well as restrictions on certain business activities and transactions, of AFG and AAC. The Stipulation and Order has no fixed term and may be terminated or modified only with the approval of OCI. OCI reserved the right to modify or terminate the Stipulation and Order in a manner consistent with the interests of policyholders, creditors and the public generally. 2021 Surplus Note Exchanges On January 19, 2021, AAC entered into a purchase agreement (the “Purchase Agreement”) with AFG and certain funds or accounts (the “Note Holders”), pursuant to which (i) the Note Holders agreed to sell to AAC all of the individual beneficial interests (the “Interests”) in the 5.1% senior notes due August 28, 2039 (the “Corolla Notes”), issued by the Corolla Trust, a Delaware statutory trust formed by AFG in 2014, (see Note 11. Variable Interest Entities for a discussion of the establishment of the Corolla Trust) (ii) AFG agreed to sell to AAC the owner trust certificate for the Corolla Trust (the “Corolla Certificate”), which constituted all of the equity interests in the Corolla Trust, and (iii) AAC agreed to exchange the Interests and the Corolla Certificate for AAC’s surplus notes (collectively, the “Corolla Note Exchange”). The Note Holders held 100% of the outstanding Corolla Notes. Pursuant to the Purchase Agreement, each $1.00 principal amount of the Corolla Notes (and the associated amount of accrued and unpaid interest thereon) was exchanged for $0.9125 principal amount of surplus notes (and the associated amount of accrued and unpaid interest thereon) on the date of the consummation of the Corolla Note Exchange (the “Closing”). In addition, every $1.00 principal amount of the Corolla Certificate (and the associated amount of accrued and unpaid interest thereon) was exchanged for $0.64 principal amount of surplus notes (and the associated amount of accrued and unpaid interest thereon) on the date of Closing. The Closing occurred on January 22, 2021. At the Closing AAC issued $267 aggregate principal amount of surplus notes to consummate the Corolla Note Exchange and acquire all of the interests in the Corolla Trust. Subsequent to the closing the Corolla Trust was dissolved and the junior surplus note that had been deposited in the Corolla Trust by AFG in 2014 was canceled. In February 2021, AAC entered into a purchase agreement pursuant to which the holder of $15 principal amount of 5.1% junior surplus notes issued by AAC agreed to sell such notes to AAC in exchange for surplus notes (the "JSN Exchange"). Pursuant to the purchase agreement, each $1.00 principal amount of the junior surplus notes (and the associated amount of accrued and unpaid interest thereon) was exchanged for $0.8581 principal amount of surplus notes (and the associated amount of accrued and unpaid interest thereon). The closing of the JSN Exchange occurred on February 11, 2021 when AAC issued approximately $13 aggregate principal amount of surplus notes. Subsequent to the closing of the JSN Exchange the junior surplus notes were canceled. As a result of the Corolla Note Exchange and the JSN Exchange, AAC no longer has any junior surplus notes outstanding. The surplus notes exchanged pursuant to the Corolla Note Exchange and the JSN Exchange are part of the same series as, and rank equally with, the surplus notes previously issued by AAC. The Company recorded a gain of $33 for the year ended December 31, 2021, arising from AAC's purchases of junior surplus notes below their carrying values which is reported within Net realized gains (losses) on extinguishment of debt in the Consolidated Statements of Total Comprehensive Income (Loss). In addition, the Company recorded a gain of $4 for the year ended December 31, 2021, from the exchange of the Corolla Certificate held by AFG above its carrying value, which is reported within Net realized investment gains (losses) in the Consolidated Statements of Total Comprehensive Income (Loss). Secured Note Refinancing On July 6, 2021, a newly formed variable interest entity and wholly-owned subsidiary of AFG, Sitka Holdings, LLC (“Sitka”), issued $1,175 par amount of LIBOR plus 4.5% senior secured notes due 2026 (the “Sitka Senior Secured Notes”). In connection with the issuance and sale of the Sitka Senior |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Ambac’s consolidated financial statements have been prepared on the basis of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosures. Such estimates that are particularly susceptible to change are used in connection with certain fair value measurements, valuation of financial guarantee loss reserves for non-derivative insurance policies and the valuation allowance on the deferred tax asset, any of which individually could be material. Consolidation The consolidated financial statements include the accounts of AFG and all other entities in which AFG (directly or through its subsidiaries) has a controlling financial interest, including variable interest entities (“VIEs”) for which AFG or an AFG subsidiary is deemed the primary beneficiary in accordance with the Consolidation Topic of the Accounting Standards Codification ("ASC"). All significant intercompany balances have been eliminated. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. A VIE is an entity: a) that lacks enough equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; or b) where the group of equity holders does not have: (1) the power, through voting rights or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb the entity’s expected losses; or (3) the right to receive the entity’s expected residual returns. The determination of whether a variable interest holder is the primary beneficiary involves performing a qualitative analysis of the VIE that includes, among other factors, its capital structure, contractual terms including the rights of each variable interest holder, the activities of the VIE, whether the variable interest holder has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, whether the variable interest holder has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, related party relationships and the design of the VIE. An entity that is deemed the primary beneficiary of a VIE is required to consolidate the VIE. Refer to Note 11. Variable Interest Entities , for a detailed discussion of Ambac’s involvement in VIEs, Ambac’s methodology for determining whether Ambac is required to consolidate a VIE and the effects of VIEs being consolidated. AFG Unconsolidated Financial Information Financial information of AFG is presented in Schedule II to this Form 10-K as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019. Investments in subsidiaries are accounted for using the equity method of accounting in Schedule II. Measurement of Credit Losses on Financial Instruments (CECL) On January 1, 2020 Ambac adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, subsequently amended by ASU 2018-19 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses; ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ; ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ; and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (collectively the Current Expected Credit Loss standard or "CECL"). The CECL standard affects how reporting entities measure credit losses for financial assets that are not accounted for at fair value through net income. For Ambac, these financial assets include available-for-sale debt securities and amortized cost assets, specifically premium receivables, reinsurance recoverables and loans. CECL does not apply to subrogation recoveries of previously paid and unpaid losses on insurance contracts accounted for under ASC 944 nor does it apply to equity method investments accounted for under ASC 323. • For available-for-sale debt securities, credit losses under CECL are measured similarly to other-than-temporary impairments under prior GAAP. The updated guidance was applied prospectively. • For financial instruments measured at amortized cost, CECL replaces the "incurred loss" model, which generally delayed recognition of the full amount of credit losses until the loss was probable of occurring, with an "expected loss" model, which reflects an entity's current estimate of all expected lifetime credit losses. The estimate of expected lifetime credit losses should consider historical information, current information, as well as reasonable and supportable forecasts. Expected lifetime credit losses for amortized cost assets will be recorded as an allowance for credit losses, with subsequent increases or decreases in the allowance reflected in net income each period. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings at January 1, 2020. This adjustment was not material to retained earnings or any individual balance sheet line item. Refer to the discussion below for each asset type. As a result of adopting CECL, management revised its policies and procedures around the credit impairment evaluation process. CECL also introduced new disclosures related to the credit impairment process, including certain accounting policy elections that Ambac made under the new standard. Investments The Investments - Debt Securities Topic of the ASC requires that all debt instruments be classified in Ambac’s Consolidated Balance Sheets according to their purpose and, depending on that classification, be carried at either cost or fair market value. Ambac’s non-VIE debt investment portfolio is accounted for on a trade-date basis and consists primarily of investments in fixed maturity securities that are considered available-for-sale as defined by the Investments - Debt Securities Topic of the ASC. Available-for-sale debt securities are reported in the financial statements at fair value with unrealized gains and losses, net of deferred taxes, reflected in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity and computed using amortized cost as the basis. For purposes of computing amortized cost, premiums and discounts are accounted for using the effective interest method over a term of the security. For structured debt securities with a large underlying pool of homogenous loans, such as mortgage-backed and asset-backed securities, premiums and discounts are adjusted for the effects of actual and anticipated prepayments. For other fixed maturity securities, such as corporate and municipal bonds, discounts are amortized or accreted over the remaining term of the securities and premiums are amortized to the earliest call date. Ambac’s non-VIE investment portfolio also includes equity interests in pooled investment funds which are accounted for in accordance with the Investments - Equity Securities Topic of the ASC and reported as Other investments on the Consolidated Balance Sheet with income reported through Net investment income on the Statement of Total Comprehensive Income (Loss). Equity interests in the form of common stock or in-substance common stock are classified as trading securities and reported at fair value while limited partner interests in such funds are reported using the equity method. Fair value is based primarily on quotes obtained from independent market sources. When quotes for fixed maturity securities are not available or cannot be reasonably corroborated, valuation models are used to estimate fair value. These models include estimates, made by management, which utilize current market information. When fair value is not readily determinable for pooled investment funds, the investments are valued using net asset value ("NAV") as a practical expedient as permitted under the Fair Value Measurement Topic of the ASC. Investment valuations could differ materially from amounts that would actually be realized in the market. Realized gains and losses on the sale of investments are determined on the basis of specific identification. Refer to Note 5. Fair Value Measurements for further description of the methodologies used to determine the fair value of investments, including model inputs and assumptions where applicable. VIE investments in fixed maturity securities are carried at fair value as they are either considered as available for sale securities or under the fair value option election. For additional information about VIE investments, including fair value by asset-type, see Note 11. Variable Interest Entities . Ambac has a formal credit impairment review process for fixed maturity available-for-sale securities in its investment portfolio. Ambac conducts a review each quarter to identify and evaluate investments that have indications of impairment in accordance with the Investments - Debt Securities Topic of the ASC. • Prior to the adoption of CECL, factors considered to identify and assess securities for other than temporary impairment included: (i) fair values that have declined by 20% or more below amortized cost; (ii) market values that have declined by 5% or more but less than 20% below amortized cost for a continuous period of at least six months; (iii) recent downgrades by rating agencies; (iv) the financial condition of the issuer and financial guarantor, as applicable, and an analysis of projected defaults on the underlying collateral; (v) whether scheduled interest payments are past due; (vi) whether Ambac has the intent to sell the security; and (vii) whether it is more likely than not that Ambac will be required to sell a security before the anticipated recovery of its amortized cost basis. If we believed a decline in the fair value of a particular investment is not credit-related, we recorded the decline as an unrealized loss net of tax in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity on our Consolidated Balance Sheets. If it was determined that a credit impairment existed, the credit impairment loss was recognized in earnings, and the other-than-temporary amount related to all other factors was recognized in other comprehensive income. For fixed maturity securities that had credit impairments in a period, the previous amortized cost of the security less the amount of the credit impairment recorded through earnings became the investment’s new amortized cost basis. Ambac accreted the new amortized cost basis to par or to the estimated future cash flows to be recovered over the expected remaining life of the security. • Under CECL, credit losses are evaluated and measured similarly, however the recognition of credit impairment losses for available-for-sale debt securities are recorded as an allowance for credit losses with an offsetting charge to net income, rather than as a direct write-down of the security as was required under prior GAAP. As a result, improvements to estimated credit losses for available-for-sale debt securities are recognized immediately in net income rather than as interest income over time. Furthermore, as required under CECL, Ambac no longer considers the length of time a security has continuously been in an unrealized loss in the credit impairment process. If we believe a decline in the fair value of a particular fixed maturity available-for-sale investment is not credit impaired, we record the decline as an unrealized loss net of tax in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity on our Consolidated Balance Sheets. If management either: (i) has the intent to sell its investment in a debt security or (ii) determines that the Company more likely than not will be required to sell the debt security before its anticipated recovery of the amortized cost basis less any current period credit impairment, then an impairment charge is recognized in earnings, with the amortized cost of the security being written-down to fair value. The evaluation of securities for credit impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether, and to what extent, declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s or guarantor’s financial condition and/or future prospects, the impact of regulatory actions on the investment portfolio, the performance of the underlying collateral, the effects of changes in interest rates or credit spreads and the expected recovery period. With respect to Ambac insured securities owned, future cash flows used to measure credit impairment represents the sum of (i) the bond’s intrinsic cash flows and (ii) the estimated AAC claim payments. Ambac’s assessment about whether a decline in value is considered a credit impairment reflects management’s current judgment regarding facts and circumstances specific to a security and the factors noted above. If that judgment changes, Ambac may ultimately record a charge for credit impairment in future periods. Ambac has made certain accounting policy elections related to accrued interest receivable ("AIR") for available-for-sale investments under CECL, which are consistent with past practices under prior GAAP. Elections include: i) not measuring AIR for credit impairment, instead AIR is written off when it becomes 90 days past due; ii) writing off AIR by reversing interest income; iii) presenting AIR separately in Other Assets on the balance sheet and iv) excluding AIR from amortized cost balances in required CECL disclosures found in Note 4. Investments. AIR at December 31, 2021 and 2020 was $10 and $10, respectively. Refer to Note 4. Investments for further credit impairment disclosures. Premiums Financial Guarantee: Gross premiums were received either upfront or in installments. For premiums received upfront, an unearned premium revenue (“UPR”) liability was established, which was initially recorded as the cash amount received. For installment premium transactions, a premium receivable asset and offsetting UPR liability was initially established in an amount equal to: (i) the present value of future contractual premiums due (the “contractual” method) or (ii) if the underlying insured obligation is a homogenous pool of assets which are contractually prepayable, the present value of premiums to be collected over the expected life of the transaction (the “expected” method). An appropriate risk-free rate corresponding to the weighted average life of each policy and currency is used to discount the future premiums contractually due or expected to be collected. For example, U.S. dollar exposures are discounted using U.S. Treasury rates while exposures denominated in a foreign currency are discounted using the appropriate risk-free rate for the respective currency. The weighted average risk-free rate at December 31, 2021 and 2020, was 2.2%. and 2.2%, respectively, and the weighted average period of future premiums used to estimate the premium receivable at December 31, 2021 and 2020, was 8.0 years and 8.3 years, respectively. Insured obligations consisting of homogeneous pools for which Ambac uses expected future premiums to estimate the premium receivable include residential mortgage-backed securities ("RMBS"). As prepayment assumptions change for homogenous pool transactions, or if there is an actual prepayment for a “contractual” method installment transaction, the related premium receivable and UPR are adjusted in equal and offsetting amounts with no immediate effect on earnings using new premium cash flows and the then current risk-free rate corresponding to the initial weighted average life of the related policy. For both upfront and installment premium policies, premium revenues are earned over the life of the financial guarantee contract in proportion to the insured principal amount outstanding at each reporting date (referred to as the level-yield method). For installment paying policies, the premium receivable discount, equating to the difference between the undiscounted future installment premiums and the present value of future installment premiums, is accreted as premiums earned in proportion to the premium receivable balance at each reporting date. When a bond issue insured by Ambac has been retired early, typically due to an issuer call, any remaining UPR is recognized at that time to the extent the financial guarantee contract is legally extinguished, causing accelerated premium revenue. For installment premium paying transactions, we offset the recognition of any remaining UPR by the reduction of the related premium receivable to zero (as it will not be collected as a result of the retirement), which may cause negative accelerated premium revenue. Certain obligations insured by Ambac have been legally defeased whereby government securities are purchased by the issuer with the proceeds of a new bond issuance, or less frequently with other funds of the issuer, and held in escrow. The principal and interest received from the escrowed securities are then used to retire the Ambac-insured obligations at a future date either to their maturity date (a refunding) or a specified call date (a pre-refunding). Ambac has evaluated the provisions in policies issued on these obligations and determined those insurance policies have not been legally extinguished. For policies with refunding securities, premium revenue recognition is not impacted as the escrowed maturity date is the same as the previous legal maturity date. For policies with pre-refunding securities, the maturity date of the pre-refunded security has been shortened from its previous legal maturity. Although premium revenue recognition has not been accelerated in the period of the pre-refunding, it results in an increase in the rate at which the policy's remaining UPR is to be recognized. For financial guarantee contracts, the issuer's ability and willingness to pay its insured debt obligation impacts the payment of policy losses by Ambac as well as the receipt of premiums from the issuer. As such, management leverages its existing loss reserve estimation process to evaluate credit impairment for premium receivables. Key factors in assessing credit impairment include historical premium collection data, internal risk classifications, credit ratings and loss severities. For structured finance transactions involving special purpose entities, we further evaluate the priority of premiums paid to Ambac within the contractual waterfall, as required by bond indentures. Ambac has a formal quarterly credit impairment review process for premium receivables. • Prior to the adoption of CECL, Ambac assessed collectability of premium receivables in accordance with ASC 944 and recorded an allowance for uncollectible premiums. • Under CECL, management utilizes either a discounted cash flow ("DCF") or probability of default/loss given default ("PD/LGD") approach to estimate credit impairment. The DCF approach utilizes expected cash flows developed by Ambac's Risk Management Group using the same (or similar) models used for estimating loss reserves where such models can identify shortfalls in premiums. Credit impairment using the DCF approach is equal to the difference between amortized cost and the present value of expected cash flows. Credit impairment under the PD/LGD approach is the product of (i) the premium receivable carrying value, (ii) internally developed default probability (considering internal ratings and average life), and (iii) internally developed loss severities. Refer to Note 7. Insurance Contracts for further credit impairment disclosures. AAC has reinsurance in place pursuant to surplus share treaty and facultative reinsurance agreements. Similar to gross premiums, premiums ceded to reinsurers were paid either upfront or in installments. For premiums paid upfront, a deferred ceded premium asset was established which is initially recorded as the cash amount paid. For installment premiums, a ceded premiums payable liability and offsetting deferred ceded premium asset were initially established in an amount equal to: i) the present value of future contractual premiums due or ii) if the underlying insured obligation is a homogenous pool of assets, the present value of expected premiums to be paid over the life of the transaction. An appropriate risk-free rate corresponding to the weighted average life of each policy and exposure currency is used to discount the future premiums contractually due or expected to be collected. Premiums ceded to reinsurers reduce the amount of premiums earned by Ambac from its financial guarantee insurance policies. For both upfront and installment premiums, ceded premiums written are primarily recognized in earnings in proportion to and at the same time as the related gross premium revenue is recognized. For premiums paid to reinsurers on an installment basis, Ambac records the present value of future ceding commissions as an offset to ceded premiums payable, using the same assumptions noted above for installment premiums. Specialty P&C: Gross written premiums on Everspan insurance policies are recorded at the inception of the policy and can be received on an upfront basis or an installment basis. Ceded premiums written are based on contractual terms applied against related gross written premiums. Premiums, net of reinsurance, are recognized as revenue on a daily pro-rata basis over the term of the insured risk. Unearned premiums represents the portion of gross premiums written that relate to unexpired risk. Deferred ceded premium represents the portion of ceded premiums written that relate to unexpired risk. Premium receivables represent balances currently due and amounts not yet due from policyholders, managing general agents or producers issuing insurance policies on Everspan's behalf. Premium receivables are reported net of an allowance for expected lifetime credit losses. The allowance is based upon Everspan's ongoing review of amounts outstanding, including delinquencies and write-offs, and other relevant factors. Credit risk is partially mitigated by the managing general agent's ability to cancel the policy on behalf of Everspan if the policyholder does not pay the premium, thereby reducing the related policy's premium written and Everspan's premium receivable. Loans Loans are reported at either their outstanding principal balance less unamortized discount or at fair value. • Loans not held by consolidated VIEs are reported at their outstanding principal balance less unamortized discount and are reported within Other assets on the Consolidated Balance Sheet. Interest income is earned using the effective interest method based upon interest accrued on the unpaid principal balance adjusted for accretion of discounts. A loan is considered impaired when, based on the financial condition of the borrower, it is probable that Ambac will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Under CECL, Ambac has a formal quarterly credit impairment review process for these loans. The key factors in assessing credit impairment are internal credit ratings and loss severities. Management utilizes a PD/LGD approach, similar to the one described above for financial guarantee premium receivables, which is applied to the loan carrying value. • Loans held by VIEs consolidated as required under the Consolidation Topic of the ASC are carried at fair value under the fair value option election with changes in fair value recorded in Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). Such loans are reported as Loans, at fair value within the Variable interest entity assets section of the Consolidated Balance Sheet. Derivative Contracts The Company has entered into derivative contracts primarily to hedge certain economic risks inherent in its asset and liability portfolios. None of Ambac’s derivative contracts are designated as hedges under the Derivatives and Hedging Topic of the ASC. Ambac's derivatives consist primarily of interest rate swaps and futures contracts. • Ambac maintains a portfolio consisting primarily of interest rate swaps and futures contracts to economically hedge interest rate risk in the financial guarantee and investment portfolios. While this portfolio also includes certain legacy interest rate swaps executed in connection with financial guarantee client financings, the interest rate derivatives portfolio is managed on the basis of its net sensitivity to changes in interest rates. Changes in the fair value of these interest rate derivatives are recorded, along with changes in fair value of Ambac's remaining credit derivatives, within Net gains (losses) on derivative contracts on the Consolidated Statements of Total Comprehensive Income (Loss). • VIEs consolidated under the Consolidation Topic of the ASC entered into derivative contracts to meet specified purposes within their securitization structure. Changes in fair value of consolidated VIE derivatives are included within Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). All derivatives are recorded on the Consolidated Balance Sheets at fair value on a gross basis; assets and liabilities are netted by counterparty only when a legal right of offset exists. Variation payments on centrally cleared swaps and futures contracts are considered settlements of the associated derivative balances and are reflected as a reduction to derivative liabilities or assets on the Consolidated Balance Sheets. For other derivatives, Ambac has determined that the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral may not be used to offset amounts due under the derivative instruments in the normal course of settlement. Therefore, such amounts are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement and are included in Other assets on the Consolidated Balance Sheets. Refer to Note 9. Derivative Instruments for further discussion of the Company’s use of derivative instruments and their impact of the consolidated financial statements. Refer to Note 5. Fair Value Measurements for further description of the methodologies used to determine the fair value of derivative contracts, including model inputs and assumptions where applicable. Goodwill Goodwill of $46 is attributable to the Xchange acquisition, further discussed in Note 3. Business Combination and represents the acquisition cost in excess of the fair value of net assets acquired, including identifiable intangible assets. Goodwill is assigned at acquisition to the applicable reporting unit of the acquired entity giving rise to the goodwill. Goodwill is not amortized but is subject to impairment testing. Goodwill impairment tests are performed annually or more frequently if circumstances indicate a possible impairment. Ambac tests goodwill for impairment as of October 1st of each year. If, after assessing qualitative factors, management believes it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment evaluation is performed. Management also has the option to bypass the qualitative evaluation and proceed directly to the quantitative evaluation. The quantitative test compares the estimated fair value of the reporting unit with its carrying value (including goodwill and identifiable intangible assets). An impairment is recognized for the excess of the carrying amount of the reporting unit over it estimated fair value. If the reporting unit’s estimated fair value exceeds its carrying value, goodwill is not impaired. There have been no accumulated impairment losses since goodwill was established. Intangible Assets Financial Guarantee Insurance intangible: Upon Ambac's emergence from bankruptcy in 2013, an insurance intangible asset was recorded which represented the difference between the fair value and aggregate carrying value of the financial guarantee insurance and reinsurance assets and liabilities. The carrying values of our financial guarantee insurance and reinsurance contracts continue to be reported and measured in accordance with their existing accounting policies. Pursuant to the Financial Services-Insurance Topic of the ASC, the insurance intangible is to be measured on a basis consistent with the related financial guarantee insurance and reinsurance contracts. The initial insurance intangible asset was assigned to groups of insurance and reinsurance contracts with similar characteristics and has been amortized using a level-yield method based on par exposure of the related groups. Finite-lived intangibles: Ambac acquired $36 of identifiable intangible assets attributable to the Xchange acquisition, further discussed in Note 3. Business Combination . The intangible assets are primarily related to distribution relationships, non-compete agreements and trade names, all of which have finite lives and are amortized over their estimated useful lives using the straight-line method. The Company tests finite-lived acquired intangible assets for impairment if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable. The carrying amount of the intangible asset is not recoverable if it exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group. If deemed unrecoverable, an impairment loss is recognized for the excess carrying amount over the fair value. There have been no accumulated impairment losses since these finite-lived intangible assets were established. Indefinite-lived intangibles Ambac acquired $9 of identifiable intangible assets attributable to its acquisition of Providence Washington Insurance Company, which was accounted for as an asset acquisition. The intangible assets relate to insurance licenses which have indefinite lives and therefore are not amortized. The useful lives are re-evaluated each period to determine whether facts and circumstances continue to support an indefinite life. The Company tests indefinite-lived acquired intangible assets for impairment annually or more frequently if circumstances indicate a possible impairment. Ambac tests indefinite-lived intangibles for impairment as of October 1st of each year. If, after assessing qualitative factors, management believes it is more likely than not that the intangible assets are impaired, a quantitative impairment evaluation is performed. Management also has the option to bypass the qualitative evaluation and proceed directly to the quantitative evaluation. The quantitative test compares the estimated fair value of the intangible asset with its carrying value. An impairment is recognized for the excess of the carrying amount of the intangible asset over it estimated fair value. If the asset’s estimated fair value exceeds its carrying value, the intangible asset is not impaired. There have been no accumulated impairment losses since these indefinite-lived intangible assets were established. Restricted Cash Cash that we do not have the right to use for general purposes is recorded as restricted cash in our consolidated balance sheets. Restricted cash includes (i) consolidated variable interest entity cash restricted to support the obligations of the consolidated VIEs, (ii) cash held by AAC received from its investment in LSNI Secured Notes and pledged for the benefit of holders of LSNI Secured Notes (other than AAC) and (iii) fiduciary cash held by Xchange described below. Fiduciary Assets and Liabilities: In Xchange's capacity as an MGU, it collects premiums from insureds and remits the premiums to the respective insurance carrie |
Business Combination Disclosure | 3. BUSINESS COMBINATION On December 31, 2020, Ambac completed the acquisition of 80% of the membership interests of Xchange for a purchase price of $81 in cash. The acquisition was accounted for as a business combination and advances Ambac's strategy of expanding into the MGU and MGA sector. All amounts recorded at the time of acquisition are final and no subsequent adjustments were made within the permitted measurement period as defined by ASC 805. The following table summarizes the consideration paid for Xchange and the estimated fair values of the aggregate assets and liabilities acquired, as well as the fair value of the noncontrolling interest, at the acquisition date: Fair Value Cash $ 2 Restricted cash 4 Intangible assets 36 Goodwill 46 Other assets 8 Total assets acquired $ 96 Other liabilities 8 Total liabilities assumed 8 Less: Redeemable noncontrolling interest 7 Total consideration $ 81 Goodwill was recorded to reflect the excess purchase consideration over net assets acquired and primarily consists of the future economic benefits that we expect to receive as a result of the acquisition, driven by the value of Xchange's potential future distribution and carrier relationships, and synergies with other Ambac business operations. Tax deductible goodwill totaled $65, of which $4 was deducted in 2021. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed were based on management’s estimates and assumptions at the time of acquisition. The fair value of the redeemable non-controlling interest of $7 on the acquisition date was estimated based on the non-controlling interest’s respective share of Xchange's enterprise value, adjusted for the value of Ambac's call option to purchase, and the minority owners' put option to sell to Ambac, respectively, the remaining 20% membership interests in Xchange. Please refer to the Noncontrolling Interests section of Note 2. Basis of Presentation and Significant Accounting Policies , for further information regarding the terms of the call and put option, as well as the redeemable noncontrolling interest balance sheet classification. The following table sets forth the estimated fair values of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition. Fair Weighted Distribution relationships $ 33 15.0 Non-compete agreements 1 5.0 Trade name 1 8.0 Total $ 36 The distribution relationships intangible represents existing relationships Xchange maintains with a variety of brokers and distributors across its product lines. It excludes the value of potential future distribution relationships that may be developed, which is included in goodwill. The non-compete agreements intangible relates to agreements entered into with certain key management personnel of Xchange. The trade name intangible represents the rights to the Xchange Group brand name which is well known in the marketplace Xchange competes in. The overall weighted average useful life of the identified amortizable intangible assets acquired is fourteen Because the acquisition occurred on last day of the reporting period, there were no revenues or earnings of Xchange included in Ambac's Consolidated Statements of Comprehensive Income for the period ended December 31, 2020. As of December 31, 2020, pro forma information related to the acquisition was not been presented as the impact was not material to the Company’s financial results. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | 3. BUSINESS COMBINATION On December 31, 2020, Ambac completed the acquisition of 80% of the membership interests of Xchange for a purchase price of $81 in cash. The acquisition was accounted for as a business combination and advances Ambac's strategy of expanding into the MGU and MGA sector. All amounts recorded at the time of acquisition are final and no subsequent adjustments were made within the permitted measurement period as defined by ASC 805. The following table summarizes the consideration paid for Xchange and the estimated fair values of the aggregate assets and liabilities acquired, as well as the fair value of the noncontrolling interest, at the acquisition date: Fair Value Cash $ 2 Restricted cash 4 Intangible assets 36 Goodwill 46 Other assets 8 Total assets acquired $ 96 Other liabilities 8 Total liabilities assumed 8 Less: Redeemable noncontrolling interest 7 Total consideration $ 81 Goodwill was recorded to reflect the excess purchase consideration over net assets acquired and primarily consists of the future economic benefits that we expect to receive as a result of the acquisition, driven by the value of Xchange's potential future distribution and carrier relationships, and synergies with other Ambac business operations. Tax deductible goodwill totaled $65, of which $4 was deducted in 2021. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed were based on management’s estimates and assumptions at the time of acquisition. The fair value of the redeemable non-controlling interest of $7 on the acquisition date was estimated based on the non-controlling interest’s respective share of Xchange's enterprise value, adjusted for the value of Ambac's call option to purchase, and the minority owners' put option to sell to Ambac, respectively, the remaining 20% membership interests in Xchange. Please refer to the Noncontrolling Interests section of Note 2. Basis of Presentation and Significant Accounting Policies , for further information regarding the terms of the call and put option, as well as the redeemable noncontrolling interest balance sheet classification. The following table sets forth the estimated fair values of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition. Fair Weighted Distribution relationships $ 33 15.0 Non-compete agreements 1 5.0 Trade name 1 8.0 Total $ 36 The distribution relationships intangible represents existing relationships Xchange maintains with a variety of brokers and distributors across its product lines. It excludes the value of potential future distribution relationships that may be developed, which is included in goodwill. The non-compete agreements intangible relates to agreements entered into with certain key management personnel of Xchange. The trade name intangible represents the rights to the Xchange Group brand name which is well known in the marketplace Xchange competes in. The overall weighted average useful life of the identified amortizable intangible assets acquired is fourteen Because the acquisition occurred on last day of the reporting period, there were no revenues or earnings of Xchange included in Ambac's Consolidated Statements of Comprehensive Income for the period ended December 31, 2020. As of December 31, 2020, pro forma information related to the acquisition was not been presented as the impact was not material to the Company’s financial results. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 4. INVESTMENTS Ambac’s non-VIE invested assets are primarily comprised of fixed maturity securities classified as available-for-sale and interests in pooled investment funds which are reported within Other investments on the Consolidated Balance Sheets. Interests in pooled investment funds in the form of common stock or in-substance common stock are classified as trading securities, while limited partner interests in such funds are reported using the equity method. Other investments also included equity interests held by AFG, including the equity Certificates in Corolla Trust, an unconsolidated trust created in connection with its sale of Segregated Account junior surplus notes on August 28, 2014. As further described in Note 1. Background and Business Description, on January 22, 2021, AAC completed the Corolla Note Exchange transaction whereby it acquired 100% of the outstanding obligations and the Certificates of, and subsequently dissolved, the Corolla Trust. Disclosures in this Note for the period ended December 31, 2021, are in accordance with the new CECL standard adopted January 1, 2020, which is more fully described in Note 2. Basis of Presentation and Significant Accounting Policies . To the extent disclosures for periods prior to January 1, 2020, made in accordance with prior GAAP rules differ from disclosures under the new CECL standard, such differences are explained below. Fixed Maturity Securities The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at December 31, 2021 and 2020 were as follows: Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2021 Fixed maturity securities: Municipal obligations $ 315 $ — $ 28 $ 3 $ 340 Corporate obligations 612 — 10 9 613 Foreign obligations 89 — — 2 87 U.S. government obligations 45 — 1 1 45 Residential mortgage-backed securities 182 — 70 — 252 Collateralized debt obligations 128 — — — 128 Other asset-backed securities (2) 234 — 32 — 265 1,605 — 141 16 1,730 Short-term 415 — — — 414 2,020 — 141 16 2,145 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 105 — — — 105 120 — — — 120 Total available-for-sale investments $ 2,140 $ — $ 141 $ 16 $ 2,265 Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2020 Fixed maturity securities: Municipal obligations $ 321 — 37 — 358 Corporate obligations (1) 1,059 — 24 6 1,077 Foreign obligations 97 — 1 — 98 U.S. government obligations 105 — 2 1 106 Residential mortgage-backed securities 256 — 46 — 302 Collateralized debt obligations 74 — — — 74 Other asset-backed securities (2) 263 — 40 — 303 2,175 — 149 8 2,317 Short-term 492 — — — 492 2,667 — 149 8 2,809 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 125 — — — 125 140 — — — 140 Total available-for-sale investments 2,807 $ — $ 149 $ 8 $ 2,949 (1) Includes Ambac's holdings of the LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. (2) Consists primarily of Ambac's holdings of military housing and student loan securities. The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at December 31, 2021, by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 565 $ 565 Due after one year through five years 457 457 Due after five years through ten years 406 411 Due after ten years 168 188 1,596 1,620 Residential mortgage-backed securities 182 252 Collateralized debt obligations 128 128 Other asset-backed securities 234 265 Total $ 2,140 $ 2,265 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, excluding VIE investments, which at December 31, 2021, 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, 2021 and 2020: Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2021 Fixed maturity securities: Municipal obligations $ 117 $ 3 $ 2 $ — $ 118 $ 3 Corporate obligations 363 8 17 1 380 9 Foreign obligations 75 2 3 — 78 2 U.S. government obligations 25 — 2 — 27 1 Residential mortgage-backed securities — — 1 — 2 — Collateralized debt obligations 68 — 3 — 71 — Other asset-backed securities 6 — — — 6 — 654 14 28 1 682 16 Short-term 114 — 13 — 128 — 768 14 41 1 810 16 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 — — — 15 — Total collateralized investments 15 — — — 15 — Total temporarily impaired securities $ 783 $ 14 $ 41 $ 1 $ 825 $ 16 Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2020 Fixed maturity securities: Municipal obligations $ 25 $ — $ 6 $ — $ 31 $ — Corporate obligations 543 6 — — 543 6 Foreign obligations 3 — — — 3 — U.S. government obligations 17 1 — — 17 1 Residential mortgage-backed securities 14 — — — 14 — Collateralized debt obligations 27 — 15 — 42 — Other asset-backed securities — — 4 — 4 — 629 7 25 — 654 8 Short-term 187 — — — 187 — 816 7 25 — 841 8 Fixed maturity securities, pledged as collateral: U.S. government obligations — — — — — — Total collateralized investments — — — — — — Total securities $ 816 $ 7 $ 25 $ — $ 841 $ 8 Management has determined that the securities in the above table do not have credit impairment as of December 31, 2021 and 2020 based upon (i) no actual or expected principal and interest payment defaults on these securities; (ii) analysis of the creditworthiness of the issuer and financial guarantor, as applicable, and (iii) for debt securities that are non-highly rated beneficial interests in securitized financial assets, analysis of whether there was an adverse change in projected cash flows. Management's evaluation as of December 31, 2021, includes the expectation that all principal and interest payments on securities guaranteed by AAC or Ambac UK will be made timely and in full. 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. Net Investment 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, 2021 2020 2019 Gross realized gains on securities $ 14 $ 38 $ 64 Gross realized losses on securities (2) (12) (5) Foreign exchange (losses) gains (5) (4) 22 Credit impairments — — — Intent / requirement to sell impairments — — — Net realized gains (losses) $ 7 $ 22 $ 81 The following table presents a roll-forward of Ambac’s cumulative credit losses on debt securities for which a portion of an other-than-temporary impairment was recognized in other comprehensive income under prior GAAP for the year ended December 31, 2019: Year Ended December 31, 2019 Balance, beginning of period $ 12 Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (1) Balance, end of period $ 12 Ambac had zero allowance for credit losses at December 31, 2021 and 2020. Ambac did not purchase any financial assets with credit deterioration for the years ended December 31, 2021 and 2020. Counterparty Collateral, Deposits with Regulators and Other Restrictions Ambac routinely pledges and receives collateral related to certain transactions. Securities held directly in Ambac’s investment portfolio with a fair value of $120 and $140 at December 31, 2021 and 2020, respectively, were pledged to derivative counterparties. Ambac’s derivative counterparties have the right to re-pledge the investment securities and as such, these pledged securities are separately classified on the Consolidated Balance Sheets as “Fixed maturity securities pledged as collateral, at fair value” and "Short-term investments pledged as collateral, at fair value". Refer to Note 9. Derivative Instruments for further information on cash collateral. There was no cash or securities received from other counterparties that were re-pledged by Ambac. Securities carried at $17 and $8 at December 31, 2021 and 2020, 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 $1 as December 31, 2021 were deposited as security in connection with a letter of credit issued for an office lease. Securities with a fair value of $— and $178 at December 31, 2021 and 2020, respectively, were pledged as collateral and as sources of funding to repay the LSNI Ambac Note. AAC also pledged for the benefit of the holders of LSNI Secured Notes (other than AAC) the proceeds of interest payments and partial redemptions of the LSNI Secured Notes held by AAC. The amount of such proceeds held by AAC was $— and $9 at December 31, 2021 and 2020, respectively, and is included in Restricted cash on the Consolidated Balance Sheet. As further described in Note 1. Background and Business Description, on July 6, 2021, the LSNI Secured Notes were fully redeemed. Securities with a fair value of $669 at December 31, 2021 were held by Ambac UK, the capital stock of which was pledged as collateral on the Sitka AAC Note. Refer to Note 12. Long-term Debt for further information about the Sitka AAC Note. Guaranteed Securities Ambac’s fixed maturity portfolio includes securities covered by guarantees issued by AAC and other financial guarantors (“insured securities”). The published rating agency ratings on these securities reflect the higher of the financial strength rating of the financial guarantor or the rating of the underlying issuer. Rating agencies do not always publish separate underlying ratings (those ratings excluding the insurance by the financial guarantor). In the event these underlying ratings are not available from the rating agencies, Ambac will assign an internal rating. The following table represents the fair value and weighted-average underlying rating of insured securities in Ambac's investment portfolio at December 31, 2021 and 2020, respectively: Municipal Corporate (2) Mortgage Total Weighted (1) December 31, 2021: Ambac Assurance Corporation $ 316 $ — $ 439 $ 754 B National Public Finance Guarantee Corporation 2 — — 2 BBB- Assured Guaranty Municipal Corporation 1 — — 1 A- Total $ 318 $ — $ 439 $ 757 B December 31, 2020: Ambac Assurance Corporation $ 320 $ 465 $ 481 $ 1,266 CCC+ National Public Finance Guarantee Corporation 6 — — 6 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 327 $ 465 $ 481 $ 1,273 CCC+ (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Represents Ambac's holdings of LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. These secured notes were insured by AAC. As further described in Note 1. Background and Business Description, on July 6, 2021, the LSNI Secured Notes were fully redeemed. Other Investments Ambac's investment portfolio includes interests in various pooled investment funds. Fair value and additional information about investments in pooled funds, by investment type, is summarized in the table below. Except as noted in the table, fair value as reported is determined using net asset value ("NAV") as a practical expedient. Redemption of certain funds valued using NAV may be subject to withdrawal limitations and/or redemption fees which vary with the timing and notification of withdrawal provided by the investor. In addition to these investments, Ambac has unfunded commitments of $74 to private credit and private equity funds at December 31, 2021. Class of Funds December 31, 2021 2020 Redemption Frequency Redemption Notice Period Hedge funds (1) $ 216 $ 196 quarterly or semi-annually 90 days Investment grade floating rate income (2) 107 73 weekly 0 days Equity market investments (3) (10) 98 73 daily or quarterly 0 - 90 days Private credit (4) 88 65 quarterly if permitted 180 days if permitted High yield and leveraged loans (5) (10) 78 78 daily 0 - 30 days Private equity (6) 37 13 quarterly if permitted 90 days if permitted Real estate properties (7) 33 16 quarterly 10 business days Emerging markets debt (8) (10) 24 25 daily 0 days Insurance-linked investments (9) 2 3 see footnote (9) see footnote (9) Total equity investments in pooled funds $ 683 $ 543 (1) This class seeks to generate superior risk-adjusted returns through selective asset sourcing, active trading and hedging strategies across a range of asset types. (2) This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes. (3) This class of funds aim to achieve long-term growth through diversified exposure to global equity markets. (4) This class aims to obtain high long-term returns primarily through credit and preferred equity investments with low liquidity and defined term. (5) This class of funds includes investments in a range of instruments including high-yield bonds, leveraged loans, CLOs, ABS and floating rate notes to generate income and capital appreciation. (6) This class seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. (7) Investments consist of UK property to generate income and capital growth. (8) This class seeks long-term income and growth through investments in the bonds of issuers in emerging markets. (9) This class seeks to generate returns from insurance markets through investments in catastrophe bonds, life insurance and other insurance linked investments. This investment is restricted in connection with the unwind of certain insurance linked exposures. Ambac has redeemed its investment to the extent permitted by the fund. (10) These categories include fair value amounts totaling $106 and $89 at December 31, 2021 and 2020, respectively, that are readily determinable and are priced through pricing vendors, including for High yield and leveraged loans products of $— and $3; for Equity market investments of $82 and $60; for Emerging markets debt of $24 and $25. Ambac held preferred equity investments with a carrying value of $8 and $— as of December 31, 2021 and 2020, 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. There were no impairments recorded on these investments or adjustments to fair value to reflect observable price changes in identical or similar investments from the same issuer during the periods presented. Ambac held direct equity interests as of December 31, 2020, including in an unconsolidated trust created in connection with the 2014 sale of Segregated Account junior surplus notes, which was accounted for under the equity method. Investment Income (Loss) Net investment income (loss) was comprised of the following for the affected periods: Year Ended December 31, 2021 2020 2019 Fixed maturity securities $ 78 $ 103 $ 183 Short-term investments — 5 17 Loans — 1 1 Investment expense (6) (6) (6) Securities available-for-sale and short-term 74 103 196 Other investments 66 19 32 Total net investment income (loss) $ 139 $ 122 $ 227 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. The portion of net unrealized gains (losses) related to securities classified as trading and equity securities, excluding those reported using the equity method, still held at the end of each period is as follows: Year Ended December 31, 2021 2020 2019 Net gains (losses) recognized during the period on trading securities $ 23 $ — $ 24 Less: net gains (losses) recognized during the reporting period on trading securities sold during the period 1 (18) 7 Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 22 $ 18 $ 17 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. FAIR VALUE MEASUREMENTS The Fair Value Measurement Topic of the ASC establishes a framework for measuring fair value and disclosures about fair value measurements. Fair Value Hierarchy The Fair Value Measurement Topic of the ASC specifies a fair value hierarchy based on whether the inputs to valuation techniques used to measure fair value are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Company-based assumptions. The fair value hierarchy has three broad levels as follows: l Level 1 Quoted prices for identical instruments in active markets. Assets and liabilities classified as Level 1 include US Treasury and other foreign government obligations traded in highly liquid and transparent markets, certain highly liquid pooled fund investments, exchange traded futures contracts, variable rate demand obligations and money market funds. l Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Assets and liabilities classified as Level 2 generally include investments in fixed maturity securities representing municipal, asset-backed and corporate obligations, certain interest rate swap contracts and most long-term debt of variable interest entities consolidated under the Consolidation Topic of the ASC. l Level 3 Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Assets and liabilities classified as Level 3 include credit derivative contracts, certain uncollateralized interest rate swap contracts, certain equity investments and certain investments in fixed maturity securities. Additionally, Level 3 assets and liabilities generally include loan receivables, and certain long-term debt of variable interest entities consolidated under the Consolidation Topic of the ASC. The Fair Value Measurement Topic of the ASC permits, as a practical expedient, the estimation of fair value of certain investments in funds using the net asset value per share of the investment or its equivalent (“NAV”). Investments in funds valued using NAV are not categorized as Level 1, 2 or 3 under the fair value hierarchy. The Investments — Equity Securities Topic of the ASC permits the measurement of certain equity securities without a readily determinable fair value at cost, less impairment, and adjusted to fair value when observable price changes in identical or similar investments from the same issuer occur (the "measurement alternative"). The fair values of investments measured under this measurement alternative are not included in the below disclosures of fair value of financial instruments. The following table sets forth the carrying amount and fair value of Ambac’s financial assets and liabilities as of December 31, 2021 and 2020, 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. Carrying Total Fair Fair Value Measurements Categorized as: Level 1 Level 2 Level 3 December 31, 2021: Financial assets: Fixed maturity securities: Municipal obligations $ 340 $ 340 $ — $ 340 $ — Corporate obligations 613 613 1 600 12 Foreign obligations 87 87 87 — — U.S. government obligations 45 45 45 — — Residential mortgage-backed securities 252 252 — 252 — Collateralized debt obligations 128 128 — 128 — Other asset-backed securities 265 265 — 187 79 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 105 105 105 — — Short term investments 414 414 369 46 — Other investments (1) 690 683 106 — — Cash, cash equivalents and restricted cash 21 21 21 1 — Derivative assets: Interest rate swaps—asset position 76 76 — 5 71 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,320 3,320 — — 3,320 Fixed maturity securities: Municipal obligations 136 136 — 136 — Restricted cash 2 2 2 — — Loans 2,718 2,718 — — 2,718 Derivative assets: Currency swaps-asset position 38 38 — 38 — Total financial assets $ 9,268 $ 9,261 $ 750 $ 1,732 $ 6,202 Financial liabilities: Long term debt, including accrued interest $ 2,806 $ 2,598 $ — $ 2,575 $ 22 Derivative liabilities: Interest rate swaps—liability position 94 94 — 94 — Liabilities for net financial guarantees written (2) (866) (112) — — (112) Variable interest entity liabilities: Long-term debt (includes $4,056 at fair value) 4,216 4,255 — 4,086 169 Derivative liabilities: Interest rate swaps—liability position 1,940 1,940 — 1,940 — Total financial liabilities $ 8,190 $ 8,775 $ — $ 8,695 $ 79 Carrying Total Fair Fair Value Measurements Categorized as: Level 1 Level 2 Level 3 December 31, 2020: Financial assets: Fixed maturity securities: Municipal obligations $ 358 $ 358 $ — $ 358 $ — Corporate obligations 1,077 1,077 4 1,073 — Foreign obligations 98 98 98 — — U.S. government obligations 106 106 106 — — Residential mortgage-backed securities 302 302 — 302 — Collateralized debt obligations 74 74 — 74 — Other asset-backed securities 303 303 — 225 78 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 125 125 125 — — Short term investments 492 492 415 76 — Other investments (1) 595 597 91 — 53 Cash and cash equivalents and restricted cash 33 33 32 2 — Derivative assets: Interest rate swaps—asset position 93 93 — 9 85 Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,215 3,215 — — 3,215 Fixed maturity securities: Municipal obligations 139 139 — 139 — Restricted cash 2 2 2 — — Loans 2,998 2,998 — — 2,998 Derivative assets; Currency swaps-asset position 41 41 — 41 — Total financial assets $ 10,071 $ 10,073 $ 888 $ 2,299 $ 6,433 Financial liabilities: Long term debt, including accrued interest $ 3,255 $ 3,071 $ — $ 2,670 $ 401 Derivative liabilities: Interest rate swaps—liability position 114 114 — 114 — Liabilities for net financial guarantees written (2) (740) 539 — — 539 Variable interest entity liabilities: Long-term debt (includes $4,324 at fair value) 4,493 4,504 — 4,349 155 Derivative liabilities: Interest rate swaps—liability position 1,835 1,835 — 1,835 — Total financial liabilities $ 8,958 $ 10,063 — 8,968 1,095 (1) Excluded from the fair value measurement categories in the table above are investment funds of $577 and $453 as of December 31, 2021 and 2020, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value measurements in the table above are equity securities with a carrying value of $8 and $— as of December 31, 2021 and 2020, 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 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. Determination of Fair Value When available, Ambac uses quoted active market prices specific to the financial instrument to determine fair value and classifies such items within Level 1. The determination of fair value for financial instruments categorized in Level 2 or 3 involves judgment due to the complexity of factors contributing to the valuation. Third-party sources from which we obtain independent market quotes also use assumptions, judgments and estimates in determining financial instrument values and different third parties may use different methodologies or provide different values for financial instruments. In addition, the use of internal valuation models may require assumptions about hypothetical or inactive markets. As a result of these factors, the actual trade value of a financial instrument in the market, or exit value of a financial instrument position by Ambac, may be significantly different from its recorded fair value. Ambac’s financial instruments carried at fair value are mainly comprised of investments in fixed maturity securities, equity interests in pooled investment funds, derivative instruments, and certain variable interest entity assets and liabilities. Valuation of financial instruments is performed by Ambac’s finance group using methods approved by senior financial management with consultation from risk management and portfolio managers as appropriate. Preliminary valuation results are discussed with portfolio managers quarterly to assess consistency with market transactions and trends as applicable. Market transactions such as trades or negotiated settlements of similar positions, if any, are reviewed to validate fair value model results. However many of the financial instruments valued using significant unobservable inputs have very little or no observable market activity. Methods and significant inputs and assumptions used to determine fair values across portfolios are reviewed quarterly by senior financial management. Other valuation control procedures specific to particular portfolios are described further below. Fixed Maturity Securities The fair values of fixed maturity investment securities are based primarily on market prices received from broker quotes or alternative pricing sources. Because many fixed maturity securities do not trade on a daily basis, pricing sources apply available market information through processes such as matrix pricing to calculate fair value. Such prices generally consider a variety of factors, including recent trades of the same and similar securities. In those cases, the items are classified within Level 2. For those fixed maturity investments where quotes were not available or cannot be reasonably corroborated, fair values are based on internal valuation models. Key inputs to the internal valuation models generally include maturity date, coupon and yield curves for asset-type and credit rating characteristics that closely match those characteristics of the specific investment securities being valued. Items valued using valuation models are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be significant inputs that are readily observable. Longer (shorter) expected maturities or higher (lower) yields used in the valuation model will, in isolation, result in decreases (increases) in fair value. Generally, lower credit ratings or longer expected maturities will be accompanied by higher yields used to value a security. At December 31, 2021, approximately 6%, 90%, and 4% of the fixed maturity investment portfolio (excluding variable interest entity investments) was valued using broker quotes, alternative pricing sources and internal valuation models, respectively. At December 31, 2020, approximately 2%, 95%, and 3% of the fixed maturity investment portfolio (excluding variable interest entity investments) was valued using broker quotes, alternative pricing sources and internal valuation models, respectively. Ambac performs various review and validation procedures to quoted and modeled prices for fixed maturity securities, including price variance analyses, missing and static price reviews, overall valuation analysis by portfolio managers and finance managers and reviews associated with our ongoing impairment analysis. Unusual prices identified through these procedures will be evaluated further against alternative third-party quotes (if available), internally modeled prices and/or other relevant data, and the pricing source values will be challenged as necessary. Price challenges generally result in the use of the pricing source’s quote as originally provided or as revised by the source following their internal diligence process. A price challenge may result in a determination by either the pricing source or Ambac management that the pricing source cannot provide a reasonable value for a security or cannot adequately support a quote, in which case Ambac would resort to using either other quotes or internal models. Results of price challenges are reviewed by portfolio managers and finance managers. Information about the valuation inputs for fixed maturity securities classified as Level 3 is included below: Other asset-backed securities: This security is a subordinated tranche of a securitization collateralized by Ambac-insured military housing bonds. The fair value classified as Level 3 was $79 and $78 at December 31, 2021 and 2020, respectively. Fair value was calculated using a discounted cash flow approach with expected future cash flows discounted using a yield consistent with the security type and rating. Significant inputs for the valuation at December 31, 2021 and 2020 include the following: December 31, 2021: a. Coupon rate 5.97% b. Average Life 14.14 years c. Yield 10.20% December 31, 2020: a. Coupon rate 5.97% b. Average Life 14.83 years c. Yield 10.50% Corporate obligations: This includes certain investments in convertible debt securities. The fair value classified as Level 3 was $12 at December 31, 2021. Fair value is determined by discounting principal and interest cash flows to maturity of 2.75 years, at a weighted average yield of 11.6%, adjusted for the estimated fair value of the conversion feature. Other Investments Other investments primarily relate to investments in pooled investment funds. The fair value of pooled investment funds is determined using dealer quotes or alternative pricing sources when such investments have readily determinable fair values. When fair value is not readily determinable, pooled investment funds are valued using NAV as a practical expedient as permitted under the Fair Value Measurement Topic of the ASC. Refer to Note 4. Investments for additional information about such investments in pooled funds that are reported at fair value using NAV as a practical expedient. At December 31, 2020, other investments also included Ambac's equity interest in the Corolla Trust, a non-consolidated VIE created in connection with Ambac's monetization of AAC junior surplus notes. This equity interest was carried under the equity method and its fair value was internally calculated using a market approach and was classified as Level 3. As further described in Note 1. Background and Business Description, on January 22, 2021, AAC completed the Corolla Note Exchange transaction whereby it acquired 100% of the outstanding obligations and the owner trust certificate of, and subsequently dissolved, the Corolla Trust. Derivative Instruments Ambac’s derivative instruments primarily comprise interest rate swaps, credit default swaps and exchange traded futures contracts. Fair value is determined based upon market quotes from independent sources, when available. When independent quotes are not available, fair value is determined using valuation models. These valuation models require market-driven inputs, including contractual terms, credit spreads and ratings on underlying referenced obligations, yield curves and tax-exempt interest ratios. The valuation of certain derivative contracts also require the use of data inputs and assumptions that are determined by management and are not readily observable in the market. Under the Fair Value Measurement Topic of the ASC, Ambac is required to consider its own credit risk when measuring the fair value of derivatives and other liabilities. Factors considered in estimating the amount of any Ambac credit valuation adjustment ("CVA") on such contracts include collateral posting provisions, right of set-off with the counterparty, the period of time remaining on the derivative and the pricing of recent terminations. The aggregate Ambac CVA impact reduced the fair value of derivative liabilities by less than a million dollars at both December 31, 2021 and 2020, respectively. Interest rate swaps that are not centrally cleared are valued using vendor-developed models that incorporate interest rates and yield curves that are observable and regularly quoted. These models provide the net present value of the derivatives based on contractual terms and observable market data. Generally, the need for counterparty (or Ambac) CVAs on interest rate derivatives is mitigated by the existence of collateral posting agreements under which adequate collateral has been posted. Certain of these derivative contracts entered into with financial guarantee customers are not subject to collateral posting agreements. Counterparty credit risk related to such customer derivative assets is included in our determination of their fair value. Ambac's credit derivatives ("CDS") are valued using an internal model that uses traditional financial guarantee CDS pricing to calculate the fair value of the derivative contract based on the reference obligation's current pricing, remaining life and credit rating and Ambac's own credit risk. The model calculates the difference between the present value of the projected fees receivable under the CDS and our estimate of the fees a financial guarantor of comparable credit quality would charge to provide the same protection at the balance sheet date. Unobservable inputs used include Ambac's internal reference obligation credit ratings and remaining life, estimates of fees that would be charged to assume the credit derivative obligation and Ambac's CVA. Ambac is party to only one remaining credit derivative with an internal credit rating of AA at December 31, 2021. Ambac has not made any significant changes to its modeling techniques or related model inputs for the periods presented. Financial Guarantees Fair value of net financial guarantees written represents our estimate of the cost to Ambac to completely transfer its insurance obligation to another market participant of comparable credit worthiness. In theory, this amount should be the same amount that another market participant of comparable credit worthiness would hypothetically charge in the marketplace, on a present value basis, to provide the same protection as of the balance sheet date. This fair value estimate of financial guarantees is presented on a net basis and includes direct and assumed contracts written, net of ceded reinsurance contracts. Long-term Debt Long-term debt includes AAC surplus notes and junior surplus notes (cancelled in 2021 as part of the Surplus Note Exchanges described in Note 1. Background and Business Description), the Sitka AAC Note, the LSNI Ambac Note (fully redeemed on July 6, 2021 as described in Note 1. Background and Business Description ), Tier 2 Notes issued in connection with the Rehabilitation Exit Transactions and the Ambac UK debt issued in connection with the commutation of its exposure with respect to Ballantyne Re plc in 2019. The fair values of surplus notes, Sitka AAC Note, LSNI Ambac Note and Tier 2 Notes are classified as Level 2. The fair value of junior surplus notes and Ambac UK debt are classified as Level 3. Other Financial Assets and Liabilities Included in Other assets are loans and, at December 31, 2020, Ambac’s equity interest in an Ambac sponsored VIE established to provide certain financial guarantee clients with funding for their debt obligations. The fair values of these financial assets are estimated based upon internal valuation models and are classified as Level 3. Variable Interest Entity Assets and Liabilities The financial assets and liabilities of FG VIEs consolidated under the Consolidation Topic of the ASC consist primarily of fixed maturity securities and loans held by the VIEs, derivative instruments and notes issued by the VIEs which are reported as long-term debt. As described in Note 11. Variable Interest Entities, these FG VIEs are securitization entities which have liabilities and/or assets guaranteed by AAC or Ambac UK. The fair values of FG VIE long-term debt are based on price quotes received from independent market sources when available. Such quotes are considered Level 2 and generally consider a variety of factors, including recent trades of the same and similar securities. For those instruments where quotes were not available or cannot be reasonably corroborated, fair values are based on internal valuation models. Comparable to the sensitivities of investments in fixed maturity securities described above, longer (shorter) expected maturities or higher (lower) yields used in the valuation model will, in isolation, result in decreases (increases) in fair value liability measurement for FG VIE long-term debt. FG VIE derivative asset and liability fair values are determined using vendor-developed valuation models, which incorporated observable market data related to specific derivative contractual terms including interest rates, foreign exchange rates and yield curves. The fair value of FG VIE fixed maturity securities and loan assets are based on Level 2 market price quotes received from independent market sources when available. Typically, FG VIE asset fair values are not readily available from market quotes and are estimated internally. Internal valuation of FG VIE’s fixed maturity securities or loan assets are derived from the fair values of the notes issued by the respective VIE and the VIE’s derivatives, determined as described above, adjusted for the fair values of Ambac’s financial guarantees associated with the VIE. The fair value of financial guarantees consist of: (i) estimated future premium cash flows discounted at a rate consistent with that implicit in the fair value of the VIE’s liabilities and (ii) estimates of future claim payments discounted at a rate that includes Ambac’s own credit risk. Estimated future premium payments to be paid by the VIEs were discounted at a weighted average rate of 3.0% and 2.4% at December 31, 2021 and 2020, respectively. At December 31, 2021, the range of these discount rates was between 2.2% and 4.1%. Additional Fair Value Information for Financial Assets and Liabilities Accounted for at Fair Value The following tables present the changes in the Level 3 fair value category for the periods presented in 2021, 2020 and 2019. 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 and Liabilities Year ended December 31, 2021 Investments (1) Other (2) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ — $ 6,376 Total gains/(losses) realized and unrealized: Included in earnings 1 — (6) 176 59 — 230 Included in other comprehensive income 1 — — (32) (26) — (58) Purchases 13 — — — — — 13 Issuances — — — — — — — Sales — — — — — — — Settlements (2) (1) (8) (38) (313) — (362) Balance, end of period $ 91 $ — $ 70 $ 3,320 $ 2,718 $ — $ 6,199 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) $ — $ (6) $ 176 $ 59 $ — $ 227 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 $ (1) $ — $ — $ (32) $ (26) $ — $ (59) (1) Investments classified as Level 3 consist of a one other asset-backed security and two convertible notes purchased in 2021. (2) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. Level-3 Financial Assets and Liabilities Accounted for at Fair Value VIE Assets and Liabilities Year Ended December 31, 2020 Investments Other Assets (1) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ — $ 6,207 Total gains/(losses) realized and unrealized: Included in earnings 1 (2) 25 183 98 — 306 Included in other comprehensive income 6 — — 109 83 — 198 Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (1) — (7) (35) (290) — (334) Deconsolidations of VIEs — — — — — — — Balance, end of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ — $ 6,376 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 $ (2) $ 25 $ 183 $ 98 $ — $ 305 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 $ 6 $ — $ — $ 109 $ 83 $ — $ 198 (1) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. Level-3 Financial Assets and Liabilities Accounted for at Fair Value VIE Assets and Liabilities Year Ended December 31, 2019 Investments Other Assets (1) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 72 $ 5 $ 46 $ 2,737 $ 4,288 $ (217) $ 6,930 Total gains/(losses) realized and unrealized: Included in earnings 2 (2) 25 138 287 (15) 436 Included in other comprehensive income — — — 116 74 8 199 Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (2) — (5) (35) (690) — (731) Deconsolidation of VIEs — — — — (851) 223 (627) Balance, end of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ — $ 6,207 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 $ — $ (2) $ 25 $ 138 $ 215 $ — $ 376 (1) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. Invested assets and VIE long-term debt are transferred into Level 3 when internal valuation models that include significant unobservable inputs are used to estimate fair value. All such securities that have internally modeled fair values have been classified as Level 3. Derivative instruments are transferred into Level 3 when the use of unobservable inputs becomes significant to the overall valuation. There were no transfers of financial instruments into or out of Level 3 in the periods disclosed. Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the affected periods are reported as follows: Net Investment Income Net Gains Income (Loss) on Variable Interest Entities Other Year Ended December 31, 2021 Total gains (losses) included in earnings for the period $ 1 $ (6) $ 235 $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date 1 (6) 235 — Year Ended December 31, 2020 Total gains (losses) included in earnings for the period $ 1 $ 25 $ 281 $ (2) Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 25 281 (2) Year Ended December 31, 2019 Total gains (losses) included in earnings for the period $ 2 $ 25 $ 410 $ (2) Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 25 353 (2) |
Financial Guarantees in Force (
Financial Guarantees in Force (Notes) | 12 Months Ended |
Dec. 31, 2020 | |
Guarantees [Abstract] | |
Financial Guarantees in Force | 6. FINANCIAL GUARANTEES IN FORCE Financial guarantees outstanding includes the exposures of policies that insure variable interest entities (“VIEs”) consolidated in accordance with ASC Topic 810, Consolidation. Financial guarantees outstanding include the exposure of policies that insure capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bonds. Financial guarantees outstanding exclude the exposures of policies that insure bonds which have been called, pre-refunded or refunded and excludes exposure of the policies insuring the Sitka Senior Secured Notes and LSNI Secured Notes as defined in Note 1. Background and Business Description. The gross par amount of financial guarantees outstanding was $34,122 and $39,070 at December 31, 2021 and 2020, respectively. The par amount of financial guarantees outstanding, net of reinsurance, was $28,020 and $33,888 at December 31, 2021 and 2020, respectively. As of December 31, 2021, the aggregate amount of financial guarantee insured par ceded to reinsurers under reinsurance agreements was $6,102 with the largest reinsurer accounting for $2,695 or 7.9% of gross par outstanding at December 31, 2021. As of December 31, 2021 and 2020, the financial guarantee portfolio consisted of the types of guaranteed bonds as shown in the following table: Net Par Outstanding December 31, (1) 2021 2020 Public Finance: Housing revenue (2) $ 5,610 $ 5,855 Lease and tax-backed revenue 3,196 4,179 General obligation 1,612 2,345 Other 1,942 3,118 Total Public Finance 12,360 15,497 Structured Finance: Mortgage-backed and home equity 2,724 3,635 Investor-owned utilities 1,556 1,617 Other 624 1,085 Total Structured Finance 4,904 6,337 International Finance: Sovereign/sub-sovereign 5,141 5,270 Investor-owned and public utilities 3,283 3,899 Asset-backed and other 1,276 1,374 Transportation 1,056 1,511 Total International Finance 10,756 12,054 Total $ 28,020 $ 33,888 (1) Net Par Outstanding includes capital appreciation bonds, which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. (2) Includes $5,490 and $5,575 of Military Housing net par at December 31, 2021 and 2020, respectively. As of December 31, 2021 and 2020, the financial guaranteed portfolio by location of risk was as outlined in the table below: Net Par Outstanding December 31, 2021 2020 United States $ 17,264 $ 21,834 United Kingdom 9,255 9,711 Italy 718 803 Austria 343 707 France 219 277 Australia 203 420 Other international 18 136 Total $ 28,020 $ 33,888 Gross financial guarantees in force (principal and interest) were $54,272 and $61,895 at December 31, 2021 and 2020, respectively. Net financial guarantees in force (after giving effect to reinsurance) were $42,653 and $51,603 as of December 31, 2021 and 2020, respectively. In the United States, Colorado and California were the states with the highest aggregate net par amounts in force, accounting for 8.3% and 5.1% of the total at December 31, 2021, respectively. No other state accounted for more than 4%. The highest single insured risk represented 3.3% of the aggregate net par amount guaranteed. |
Financial Guarantee Insurance C
Financial Guarantee Insurance Contracts | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Abstract] | |
Summary of Rollforward of RMBS Subrogation, by Estimation Approach | |
Insurance Disclosure | 7. INSURANCE CONTRACTS Amounts presented in this Note relate only to Ambac’s non-derivative insurance business for insurance policies issued to beneficiaries, excluding consolidated VIEs. Premiums The effect of reinsurance on premiums written and earned was as follows: Year Ended Direct Assumed Ceded Net 2021: Written $ 2 $ — $ 35 $ (33) Earned 62 — 15 47 2020: Written $ (1) $ — $ (1) $ — Earned 65 1 12 54 2019: Written $ (28) $ — $ 31 $ (60) Earned 75 — 10 66 Ambac’s accelerated financial guarantee premium revenue for retired obligations for the years ended December 31, 2021, 2020 and 2019, was $1, $12 and $10, respectively. The following table summarizes net premiums earned by location of risk: Year Ended December 31, 2021 2020 2019 United States 27 $ 32 $ 55 United Kingdom 14 24 17 Other international 6 (2) (6) Total 47 $ 54 $ 66 Premium Receivables, including credit impairments Premium receivables at December 31, 2021 and 2020 were $323 and $370, respectively. Management evaluates premium receivables for expected credit losses ("credit impairment") in accordance with the CECL standard adopted January 1, 2020, which is further described in Note 2. Basis of Presentation and Significant Accounting Policies . Management's evaluation of credit impairment under prior GAAP rules was not materially different. Most credit impairment disclosures below were only made prospectively from the CECL adoption date as they were not required previously under GAAP. As further discussed in Note 2. Basis of Presentation and Significant Accounting Policies , the key indicator management uses to assess the credit quality of financial guarantee premium receivables is Ambac's internal risk classifications for the insured obligation determined by the Risk Management Group. Below is the amortized cost basis of financial guarantee premium receivables by risk classification code and asset class as of December 31, 2021 and 2020: Surveillance Categories as of December 31, 2021 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 149 $ 3 $ 5 $ — $ — $ 157 Other 2 — — — — 2 Total Public Finance 151 3 5 — — 159 Structured Finance: Mortgage-backed and home equity 1 — 1 2 12 16 Student loan 1 1 — 9 — 12 Structured insurance 10 — — — — 10 Other 7 — — — — 7 Total Structured Finance 19 1 1 12 12 45 International: Sovereign/sub-sovereign 74 8 — 11 — 93 Investor-owned and public utilities 28 — — — — 28 Other 5 — — — — 5 Total International 107 8 — 11 — 125 Total (1) (2) $ 277 $ 12 $ 6 $ 22 $ 12 $ 329 Surveillance Categories as of December 31, 2020 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 155 $ 13 $ — $ — $ — $ 168 Other 2 15 — — — 17 Total Public Finance 157 27 — — — 185 Structured Finance: Mortgage-backed and home equity 3 — 1 3 15 22 Student loan 3 — 2 11 — 16 Structured insurance 14 — — — — 14 Other 7 — — — — 7 Total Structured Finance 27 — 3 14 15 59 International: Sovereign/sub-sovereign 82 13 — 13 — 108 Investor-owned and public utilities 31 — — — — 31 Other 5 — — — — 5 Total International 118 13 — 13 — 144 Total (2) $ 302 $ 40 $ 3 $ 27 $ 15 $ 387 (1) Excludes specialty property and casualty premium receivables of $2. (2) The underwriting origination dates for all policies included are greater than five years prior to the current reporting date. Below is a rollforward of the premium receivable allowance for credit losses as of December 31, 2021 and 2020: Year Ended December 31, 2021 2020 Beginning balance (1) $ 17 $ 9 Current period provision (2) (6) 9 Write-offs of the allowance (2) (2) Ending balance $ 9 $ 17 (1) At January 1, 2020, $9 of premiums receivable were deemed uncollectible as determined under prior GAAP rules. (2) The year ended December 31, 2020, includes $3 from the adoption of CECL. At December 31, 2021 and 2020, a deminimis amount of premiums were past due. Financial Guarantee Premium Receivables Below is the gross premium receivable roll-forward (direct and assumed contracts) for the affected periods: Year Ended December 31, 2021 2020 2019 Beginning premium receivable $ 370 $ 416 $ 495 Adjustment to initially apply ASU 2016-13 — (3) — Premium receipts (35) (46) (48) Adjustments for changes in expected and contractual cash flows (1) (27) (6) (38) Accretion of premium receivable discount 8 9 11 Deconsolidation of certain VIEs — — 3 Changes to allowance for credit losses 8 (4) (2) Other adjustments (including foreign exchange) (4) 5 (6) Ending premium receivable (2) $ 320 $ 370 $ 416 (1) Adjustments for changes in expected and contractual cash flows are primarily due to reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns. (2) Premium receivable includes premiums to be received in foreign denominated currencies most notably in British Pounds and Euros. At December 31, 2021, 2020 and 2019 premium receivables include British Pounds of $108 (£80), $117 (£86) and $129 (£97), respectively, and Euros of $16 (€14), $19 (€16) and $26 (€23), respectively. The table below summarizes the future gross undiscounted financial guarantee premiums to be collected and future premiums earned, net of reinsurance at December 31, 2021: Future Premiums Collected (1) Future to be Earned Net of (2) Three months ended: March 31, 2022 $ 10 $ 7 June 30, 2022 7 7 September 30, 2022 9 7 December 31, 2022 7 7 Twelve months ended: December 31, 2023 32 25 December 31, 2024 30 24 December 31, 2025 29 23 December 31, 2026 28 22 Five years ended: December 31, 2031 113 91 December 31, 2036 75 57 December 31, 2041 32 22 December 31, 2046 15 9 December 31, 2051 5 3 December 31, 2056 — — Total $ 393 $ 303 (1) Future premiums to be collected are undiscounted, gross of allowance for credit losses, and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. (2) Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable as further described in Note 2. Basis of Presentation and Significant Accounting Policies . This results in a different premium receivable balance than if expected lives were considered. If installment paying policies are retired or prepay early, premiums reflected in the premium receivable asset and amounts reported in the above table for such policies may not be collected. Future premiums to be earned also considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral, which may result in different unearned premium than if expected lives were considered. If those bonds types are retired early, premium earnings may be negative in the period of call or refinancing. Loss and Loss Expense Reserves Ambac's loss and loss expense reserves ("loss reserves") are based on management's on-going review of the insured portfolio. Below are the components of the loss and loss expense reserves and the subrogation recoverable asset at December 31, 2021 and 2020: December 31, 2021: December 31, 2020: Balance Sheet Line Item Claims and Recoveries Unearned Loss and Loss Expense Reserves (1) Claims and Recoveries Unearned Loss and Loss Expense Reserves (1) Loss and loss expense reserves $ 1,781 $ (155) $ (56) $ 1,570 $ 2,060 $ (229) $ (72) $ 1,759 Subrogation recoverable 88 (2,180) — (2,092) 100 (2,256) — (2,156) Totals $ 1,869 $ (2,335) $ (56) $ (522) $ 2,160 $ (2,486) $ (72) $ (397) (1) Loss and loss expense reserves at December 31, 2021 includes financial guarantee and specialty P&C of $1,538 and $32, respectively. Subrogation recoverable includes financial guarantee and specialty P&C of $(2,092) and $—, respectively. All balances at December 31, 2020 relate to the financial guarantee business. Below is the loss and loss reserve expense roll-forward, net of subrogation recoverable and reinsurance, for the affected periods. Year Ended December 31, 2021 2020 2019 Beginning gross loss and loss expense reserves $ (397) $ (482) $ (107) Reinsurance recoverable 33 26 23 Beginning balance of net loss and loss expense reserves (430) (508) (130) Losses and loss expenses (benefit) incurred: Current year — 15 1 Prior years (89) 210 12 Total (1)(2) (88) 225 13 Loss and loss expenses (recovered) paid: Current year — 1 — Prior years 59 148 318 Total 59 149 318 Foreign exchange effect — 2 (1) Ending net loss and loss expense reserves (577) (430) (436) Impact of VIE consolidation — — (72) Reinsurance recoverable (3) 55 33 26 Ending gross loss and loss expense reserves (522) (397) (482) (1) Total losses and loss expenses (benefit) includes $5, $(11) and $(7) for the years ended December 31, 2021, 2020 and 2019, respectively, related to ceded reinsurance. (2) Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain R&W's by transaction sponsors within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated R&W's recoveries for the year ended December 31, 2021, 2020 and 2019 was $20, $(23) and $42, respectively. (3) Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $0, $1 and $0 as of December 31, 2021, 2020 and 2019, respectively, related to previously presented loss and loss expenses and subrogation. For 2021, the positive development in prior years was primarily due to favorable development in Public Finance credits (largely Puerto Rico) and the RMBS portfolio. For 2020, the adverse development in prior years was primarily a result of deterioration in Public Finance credits, largely Puerto Rico, partially offset by favorable development in the RMBS portfolio. Financial Guarantee Loss Reserves: The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at December 31, 2021 and 2020. Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at December 31, 2021 and 2020 was 1.2% and 1.1%, respectively. Surveillance Categories as of December 31, 2021 I IA II III IV V Total Number of policies 34 15 7 14 130 5 205 Remaining weighted-average contract period (in years) (1) 9 12 14 15 13 7 14 Gross insured contractual payments outstanding: Principal $ 904 $ 840 $ 459 $ 1,300 $ 2,759 $ 40 $ 6,302 Interest 589 612 308 169 1,284 22 2,984 Total $ 1,493 $ 1,452 $ 767 $ 1,469 $ 4,043 $ 62 $ 9,286 Gross undiscounted claim liability $ 5 $ 16 $ 45 $ 544 $ 1,423 $ 62 $ 2,095 Discount, gross claim liability — (1) (3) (109) (185) (4) (303) Gross claim liability before all subrogation and before reinsurance $ 5 $ 15 $ 42 $ 435 $ 1,238 $ 57 $ 1,792 Less: Gross RMBS subrogation (2) $ — $ — $ — $ — $ (1,737) $ — $ (1,737) Discount, RMBS subrogation — — — — 7 — 7 Discounted RMBS subrogation, before reinsurance — — — — (1,730) — (1,730) Less: Gross other subrogation (3) — (5) — (33) (583) (12) (633) Discount, other subrogation — — — 2 24 2 28 Discounted other subrogation, before reinsurance — (5) — (31) (559) (10) (605) Gross claim liability, net of all subrogation and discounts, before reinsurance $ 5 $ 10 $ 42 $ 404 $ (1,051) $ 47 $ (543) Less: Unearned premium revenue $ (3) $ (10) $ (5) $ (14) $ (24) $ (1) $ (56) Plus: Loss expense reserves 1 — — 4 40 — 45 Gross loss and loss expense reserves $ 3 $ 1 $ 38 $ 394 $ (1,036) $ 46 $ (554) Reinsurance recoverable reported on Balance Sheet (4) $ 1 $ 1 $ 10 $ 22 $ (11) $ — $ 23 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $24 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation. Surveillance Categories as of December 31, 2020 I IA II III IV V Total Number of policies 40 25 15 15 132 5 232 Remaining weighted-average contract period (in years) (1) 10 18 8 16 14 7 14 Gross insured contractual payments outstanding: Principal $ 842 $ 1,375 $ 595 $ 1,469 $ 3,246 $ 47 $ 7,573 Interest 279 1,011 484 215 1,427 26 3,443 Total $ 1,121 $ 2,386 $ 1,079 $ 1,685 $ 4,673 $ 72 $ 11,016 Gross undiscounted claim liability $ 3 $ 49 $ 40 $ 541 $ 1,690 $ 72 $ 2,395 Discount, gross claim liability — (2) (1) (85) (213) (3) (303) Gross claim liability before all subrogation and before reinsurance $ 3 $ 47 $ 40 $ 456 $ 1,477 $ 69 $ 2,092 Less: Gross RMBS subrogation (2) $ — $ — $ — $ — $ (1,753) $ — $ (1,753) Discount, RMBS subrogation — — — — 3 — 3 Discounted RMBS subrogation, before reinsurance — — — — (1,751) — (1,751) Less: Gross other subrogation (3) — — — (36) (706) (12) (755) Discount, other subrogation — — — 1 18 1 20 Discounted other subrogation, before reinsurance — — — (35) (689) (11) (735) Gross claim liability, net of all subrogation and discounts, before reinsurance $ 3 $ 47 $ 39 $ 421 $ (963) $ 58 $ (394) Less: Unearned premium revenue $ (2) $ (16) $ (5) $ (17) $ (30) $ (1) $ (72) Plus: Loss expense reserves 1 2 1 5 59 — 68 Gross loss and loss expense reserves $ 2 $ 32 $ 35 $ 409 $ (933) $ 57 $ (397) Reinsurance recoverable reported on Balance Sheet (4) $ — $ 6 $ 9 $ 24 $ (6) $ — $ 33 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac's estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $33 related to future loss and loss expenses and $1 related to presented loss and loss expenses and subrogation. COVID-19: The COVID-19 pandemic had, and to a lesser degree, continues to have, an impact on general economic conditions; including, but not limited to, higher unemployment; volatility in the capital markets; closure or severe curtailment of the operations and, hence, revenues, of many businesses and public and private enterprises to which we are directly or indirectly exposed. COVID-19 and the public health responses by the US federal and state governments at the onset of the pandemic resulted in a shut down for several months of significant portions of the US economy, including areas that AAC's insured obligors rely upon to generate the revenues and cash flows necessary to service debts we insure. In the U.S. and Europe, where most of Ambac's financial guaranty exposure is located, significant fiscal stimulus measures, monetary policy actions and other relief measures helped to moderate the negative economic impacts of COVID-19 and supported the economic recovery which began in the second half of 2020 and continues into 2022. As of December 31, 2021, there have been no defaults of Ambac-insured obligations as a result of the COVID-19 pandemic. Despite the significant overall benefit of the above relief measures, which were designed to help mitigate the economic impact of the COVID-19 pandemic generally, certain of these measures may still adversely affect Ambac's FG insured portfolio. In particular, this includes the U.S. government's temporary relief measures that required mortgage loan servicers to offer relief to borrowers who suffer hardship as a result of COVID-19. These relief measures included moratoriums on foreclosures and evictions as well as the expansion of forbearance and subsequent repayment options. While these relief measures have largely since expired, the resulting delays in starting mortgage foreclosure processes and the impact of potential post-forbearance related mortgage loan modifications may have an adverse impact on our insured RMBS transactions. Consequently, we have anticipated that we will experience a modest increase in claim payments for certain of our insured RMBS obligations following the resumption of foreclosure activity and the implementation of post-forbearance mortgage loan modifications. However, since the onset of the COVID-19 pandemic, much of the potential increase in claim experience has been offset by the benefit to excess spread within the securitization structures as a result of the reduction in interest rates, which is expected to result in higher excess spread recoveries to Ambac. We are continuously evaluating and updating our view of the macro economic environment as well as our specific credit view of each of our insured exposures considering the significant uncertainties brought upon us by the COVID-19 pandemic. Accordingly, despite the current economic recovery, our loss reserves may be under-estimated as a result of the ultimate scope, duration and magnitude of the effects of COVID-19 pandemic. Puerto Rico Ambac has exposure to the Commonwealth of Puerto Rico (the "Commonwealth") and its instrumentalities across several different issuing entities with total net par exposure of $1,054. Components of Puerto Rico net par outstanding include capital appreciation bonds which are reported at the par amount at the time of issuance of the related insurance policy as opposed to the current accreted value of the bonds. Each issuing entity has its own credit risk profile attributable to discrete revenue sources, direct general obligation pledges, and/or general obligation guarantees. The Commonwealth of Puerto Rico and certain of its instrumentalities are or were subject to Title III or Title VI proceedings under the Puerto Rico Oversight, Management and Stability Act ("PROMESA") and have suspended debt service payments, including payments owed on bonds insured by AAC. AAC has made and will continue to be required to make significant amounts of policy payments over the next several years leading to material permanent losses. The recoverability of a portion of these policy payments is still subject to some uncertainty as well as variability in terms of the value of certain components of the plan consideration to be made available under the various PROMESA plans of adjustment and qualifying modifications for the obligations AAC insures, which may lead to a material increase in permanent losses and cause a material adverse impact on our results of operations and financial condition. Our exposure to Puerto Rico will be impacted by the pending consummation of the Eighth Amended Title III Joint Plan of Adjustment of the Commonwealth of Puerto Rico ("Eighth Amended POA"), the PRIFA Qualifying Modification ("PRIFA QM") and the CCDA Qualifying Modification ("CCDA QM") as well as the potential confirmation and implementation of the PRHTA plan of adjustment ("PRHTA POA"). On November 3, 2021, the Financial Oversight & Management Board for Puerto Rico ("Oversight Board"), as representative of the Commonwealth of Puerto Rico, the Puerto Rico Public Buildings Authority, and the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, filed the Eighth Amended POA. The Eighth Amended POA proposed to restructure approximately $33,000 of debt across various Commonwealth instrumentalities, including obligations insured by AAC, and approximately $50,000 in pension obligations. The Eighth Amended POA, among other things, also incorporated settlements reflected in various plan support agreements negotiated by and between creditors and the Oversight Board, as further described below. A hearing to confirm the Commonwealth’s plan of adjustment was held over several days between November 8, 2021, and November 23, 2021. The Eighth Amended POA was modified several times. On January 10, 2022, Judge Laura Taylor Swain, District of Puerto Rico, entered an order requesting certain changes to the Eighth Amended POA and related materials. None of the requested changes would substantively impact the contemplated recovery to Ambac and holders of AAC-insured bonds under the Eighth Amended POA. The Oversight Board filed a revised version of the plan and corresponding materials shortly thereafter. On January 18, 2022, Judge Swain confirmed the Eighth Amended POA. On January 20, 2022, Judge Swain also approved the PRIFA QM and the CCDA QM. Unless the Teachers' Unions', APJ's and the Credit Unions' requests for stay pending appeal are granted, the plan of adjustment together with the PRIFA QM and CCDA QM are expected to have an effective date on or before March 15, 2022. The successful consummation of the Eighth Amended POA and Qualifying Modifications on the effective date will represent a significant step towards resolution of AAC's remaining Puerto Rico exposure. The plan support agreements of the various instrumentalities of the Commonwealth of Puerto Rico provide the basis for the plan consideration to be made available to creditors, including Ambac, under the Eighth Amended POA, the PRIFA QM, the CCDA QM and the PRHTA POA. The PRIFA Related Plan Support Agreement (“PRIFA PSA”), signed on July 27, 2021, provides consideration for PRIFA bondholders in the form of a combination of cash and a Contingent Value Instrument (the "Rum Tax CVI") that will be deposited into a master trust (the "CVI Master Trust") and into a sub trust (the "PRIFA CVI Sub Trust") within the CVI Master Trust and held for the benefit of PRIFA bondholders (the “PRIFA Trust”). The Rum Tax CVI comprises potential cash payments related to outperformance of general fund rum tax collections relative to the certified 2021 Commonwealth Fiscal Plan's projections. The PRIFA CVI Sub Trust will also be funded with approximately a 27% share of the Clawback CVI (described below), which is tied to potential cash payments related to the outperformance of the Commonwealth's sales and use tax ("SUT") against the certified 2020 Commonwealth Fiscal Plan's projections. The rum tax and SUT outperformance measures are subject to a joint lifetime nominal cap of 75% of the allowed PRIFA claim under the Eighth Amended POA. Ambac executed its joinder to the PRHTA/CCDA PSA on July 15, 2021. The PRHTA/CCDA Related Plan Support Agreement ("PRHTA/CCDA PSA"), dated May 5, 2021, provides consideration for holders of PRHTA and CCDA bonds on account of their claims against the Commonwealth. This consideration consists of interests of approximately 69% and 4%, respectively, in a contingent value instrument tied to the outperformance of the SUT against the certified 2020 Commonwealth Fiscal Plan's projections (the "Clawback CVI"). The Clawback CVI outperformance measures are subject to a lifetime nominal cap of 75% of the allowed PRHTA and CCDA claims under the Eighth Amended POA. Additionally, the PRHTA bondholders will receive consideration in the form of new PRHTA bonds and cash, and CCDA bondholders, will receive cash. Ambac executed its joinder to the Amended and Restated Plan Support Agreement ("Amended and Restated GO/PBA PSA") on July 21, 2021. Under the Amended and Restated GO/PBA PSA, dated as of July 12, 2021, consideration for holders of GO and PBA bonds comprised of a combination of cash, new GO bonds and a contingent value instrument intended to provide creditors with additional returns tied to the outperformance of the SUT against the certified 2020 Commonwealth Fiscal Plan's projections. Substantial uncertainty still exists with respect to the ultimate outcome for AAC and other creditors in Puerto Rico due to, among other matters, (i) whether the effective date will be stayed pending the appeal of the order confirming Eighth Amended POA; (ii) the result of the pending First Circuit appeal of the order confirming the Eighth Amended POA; (iii) the value or perceived value of the consideration provided by or on behalf of the debtors under the Eighth Amended POA, PRIFA QM, and CCDA QM; (iv) the extent to which exposure management strategies, such as commutation and acceleration, will be executed; (v) the tax treatment of the consideration provided by or on behalf of the debtors under the Eighth Amended POA, PRIFA QM, and CCDA QM; (vi) whether and when the PRHTA POA will be confirmed; and (vii) other factors, including market conditions such as interest rate movements, credit spread changes on the new GO and CVI instruments, and liquidity for the new GO and CVI instruments. There is no assurance that should one or more of these uncertainties negatively develop that it would not have a material adverse impact on Ambac's financial condition and results of operations. While our reserving scenarios account for a wide range of possible outcomes, reflecting the significant uncertainty regarding future developments and outcomes, given our material exposure to Puerto Rico and the economic, fiscal, legal, and political uncertainties associated therewith, our loss reserves may ultimately prove to be insufficient to cover our losses, potentially having a material adverse effect on our results of operations and financial position, and may be subject to material volatility. Conversely, Ambac’s loss reserves may prove to be overstated, due to favorable developments or results with respect to the factors described in the preceding paragraphs. Ambac has considered these developments and other factors in evaluating its Puerto Rico loss reserves. While management believes its reserves are adequate to cover losses in its Public Finance insured portfolio, there can be no assurance that Ambac may not incur additional losses in the future, given the circumstances described herein. Such additional losses may have a material adverse effect on Ambac’s results of operations and financial condition and may result in adverse consequences such as impairing the ability of AAC to honor its financial obligations; the initiation of rehabilitation proceedings against AAC; eliminating or decreasing the likelihood of AAC delivering value to Ambac, through dividends or otherwise; and a significant drop in the value of securities issued or insured by Ambac or AAC. For public finance credits, including Puerto Rico, as well as other issuers, for which Ambac has an estimate of expected loss as of December 31, 2021, the possible increase in loss reserves under stress or other adverse conditions and circumstances was estimated to be approximately $355. This possible increase in loss reserves under stress or other adverse conditions is very significant and if we were to experience such incremental losses, our stockholders’ equity as of December 31, 2021, would decrease from $1,098 to $743. However, there can be no assurance that losses may not exceed such amount. Representation and Warranty Recoveries Ambac records estimated RMBS R&W subrogation recoveries for breaches of R&W by sponsors of certain RMBS transactions. For a discussion of the approach utilized to estimate RMBS R&W subrogation recoveries, see Note 2. Basis of Presentation and Significant Accounting Policies. Ambac has recorded RMBS R&W subrogation recoveries of $1,730, ($1,704 net of reinsurance) and $1,751, ($1,725 net of reinsurance) at December 31, 2021 and 2020, respectively. Our ability to realize R&W subrogation recoveries is subject to significant uncertainty, including risks inherent in litigation, including adverse rulings or decisions in our cases or in litigations to which AAC is not a party that set precedents or resolve questions of law that impact our own claims; collectability of such amounts from counterparties (and/or their respective parents and affiliates); timing of receipt of any such recoveries; intervention by OCI, which could impede our ability to take actions required to realize such recoveries; and uncertainty inherent in the assumptions used in estimating such recoveries. Failure to realize R&W subrogation recoveries for any reason or the realization of R&W subrogation recoveries materially below the amount recorded on Ambac's consolidated balance sheet would have a material adverse effect on our results of operations and financial condition. If we were unable to realize R&W subrogation recoveries recorded on Ambac's consolidated balance sheet, our stockholders’ equity as of December 31, 2021, would decrease from $1,098 to $(607). Additionally, failure to realize R&W subrogation recoveries, or the realization of recoveries significantly below those recorded on the balance sheet, may result in adverse consequences such as impairing the ability of AAC to honor its financial obligations, particularly its outstanding debt and preferred stock obligations; the initiation of rehabilitation proceedings against AAC; AAC not being able to deliver value to Ambac, through dividends or otherwise; and a significant drop in the value of securities issued or insured by Ambac or AAC. Reinsurance Recoverables, Including Credit Impairment: Amounts recoverable from reinsurers are estimated in a manner consistent with the associated loss and loss expense reserves. The Company reports its reinsurance recoverables net of an allowance for amounts that are estimated to be uncollectible. Ambac’s reinsurance assets, including deferred ceded premiums and reinsurance recoverables on losses amounted to $145 at December 31, 2021. Credit exposure existed at December 31, 2021, with respect to reinsurance recoverables to the extent that any reinsurer may not be able to reimburse Ambac under the terms of these reinsurance arrangements. At December 31, 2021, there were ceded reinsurance balances payable of $33 offsetting this credit exposure. Contractually ceded reinsurance payables can only be offset against amounts owed from the same reinsurer in the event that such reinsurer is unable to meet its obligations to reimburse Ambac. To minimize its credit exposure to losses from reinsurer insolvencies, Ambac (i) is entitled to receive collateral from its reinsurance counterparties in certain reinsurance contracts and (ii) has certain cancellation rights that can be exercised by Ambac in the event of rating agency downgrades of a reinsurer (among other events and circumstances). Ambac held letters of credit and collateral amounting to $111 from its reinsurers at December 31, 2021. For those reinsurance counterparties that do not currently post collateral, Ambac's reinsurers are well capitalized, highly rated, authorized capacity providers. Additionally, while legacy liabilities from the PWIC acquisition were fully ceded to certain reinsurers, Everspan also benefits from an unlimited, uncapped indemnity from the Enstar Holdings (US) to mitigate any residual risk to these reinsurers. The allowance for credit losses is based upon Ambac's ongoing review of amounts outstanding and the key indicators management uses to assess the credit quality of reinsurance recoverables are collateral posted by the reinsurers and independent rating agency credit ratings. The evaluation begins with a comparison of the fair value of collateral posted by the reinsurer to the recoverable, net of ceded premiums payable. Any shortfall of collateral posted is evaluated against the credit rating of the reinsurer to determine whether an allowance is considered necessary. For 2021, our top three reinsurers represented 98% of our total ceded reinsurance recoverables, and reinsurance recoverables were primarily from reinsurers with applicable ratings of A or better. The following table sets forth our three most significant reinsurers by amount of reinsurance recoverable as of December 31, 2021. Reinsurers Type of Insurance Rating (1) Reinsurance Recoverable (2) Unsecured Recoverable (3) QBE Insurance Corporation Specialty P&C A $ 27 $ 27 Assured Guaranty Re Ltd. Financial AA 18 — Sompo Japan Nipponkoa Insurance, Inc. Financial A+ 9 — All other reinsurers 1 5 Total recoverables $ 55 $ 31 (1) Represents financial strength ratings from S&P for financial guarantee reinsurers and AM Best for specialty P&C reinsurers. (2) Represents reinsurance recoverables on paid and unpaid losse |
Insurance Regulatory Restrictio
Insurance Regulatory Restrictions (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Insurance Regulatory Restrictions | 8. INSURANCE REGULATORY RESTRICTIONS United States AAC is domiciled in the State of Wisconsin and, as such, it is subject to the insurance laws and regulations of the State of Wisconsin (the “Wisconsin Insurance Laws”) and is regulated by the OCI as a domestic insurer. Everspan Indemnity and its wholly owned subsidiary, Everspan Insurance Company ("Everspan Insurance"), are domiciled in Arizona and are subject to the insurance laws and regulations of Arizona (the “Arizona Insurance Laws”) and are regulated by the Arizona Department of Insurance and Financial Institutions as domestic insurers. The other subsidiaries of Everspan Insurance are domiciled in various States and are therefore subject to the insurance laws and regulations of their respective States of domicile (together with the Wisconsin Insurance Laws and the Arizona Insurance Laws, the “State Insurance Laws”) and regulated by the insurance departments of those States as domestic insurers. In addition, AAC, Everspan Insurance and its subsidiaries are subject to the insurance laws and regulations of the other jurisdictions in which they are licensed and operate as foreign insurers. Insurance laws and regulations applicable to insurers vary by jurisdiction, but the insurance laws and regulations applicable to our insurance carriers generally require them to maintain minimum standards of business conduct and solvency; to meet certain financial tests; and to file policy forms, premium rate schedules and certain reports with regulatory authorities, including information concerning capital structure, ownership, financial condition (such as risk-based capital), corporate governance and enterprise risk. AAC, because it is a financial guarantee insurer is not subject to risk-based capital requirements. Regulated insurance companies are also required to file quarterly and annual statutory financial statements in each jurisdiction in which they are licensed. The State Insurance Laws also require prior approval (or non-disapproval) of certain transactions between an insurance carrier and its affiliates. The level of supervisory authority that may be exercised by non-domiciliary insurance regulators varies by jurisdiction. Generally, however, non-domiciliary regulators are authorized to suspend or revoke the insurance license they issued and to impose restrictions on that license in the event that laws or regulations are breached by a regulated insurance company or in the event that continued or unrestricted licensing of the regulated insurance company constitutes a “hazardous condition” (or meets a similar standard) in the opinion of the non-domiciliary regulator. The domiciliary regulators have primary regulatory authority, including with respect to the initiation and administration of rehabilitation or liquidation proceedings. Additionally, the accounts and operations of AAC and Everspan are subject to individual periodic comprehensive financial examinations by their domestic regulators, and may be examined collectively by the lead regulator of the affiliated insurance company group, which is currently OCI. In December 2020, Everspan Insurance completed its re-domestication from Wisconsin to Arizona and obtained broad authority to write property and casualty insurance (while contemporaneously surrendering its authority to write financial guaranty insurance) in Arizona. Everspan Insurance has sought similar amendments to its certificates of authority in all other states. Everspan Insurance and its subsidiaries (Providence Washington Insurance Company, 21st Century Indemnity Insurance Company, 21st Century Pacific Insurance Company and 21st Century Auto Insurance Company of New Jersey) are subject to risk-based capital requirements. Everspan Insurance issued surety policies in 2021. Everspan Indemnity was formed in 2020 as a domestic surplus lines insurer in Arizona and, accordingly, is eligible to write property and casualty insurance as an excess and surplus lines insurance in all states by virtue of the U.S. Nonadmitted and Reinsurance Reform Act of 2010. Everspan Indemnity owns 100% of Everspan Insurance. Everspan Indemnity issued its first policies in May 2021. All of Ambac's insurance subsidiaries are in compliance with the minimum capital and surplus levels required under the State Insurance Laws required to transact all business written to date. Xchange, like some other managing general agents and program administrators, may be subject to licensing requirements and regulation by insurance regulators in various states in which they conduct business. In addition to the legal restrictions applicable to AAC as described herein, pursuant to the terms of the Settlement Agreement, the Stipulation and Order and the indenture for the Tier 2 Notes, AAC must seek prior approval by OCI of certain corporate actions. The Settlement Agreement, Stipulation and Order and indenture for the Tier 2 Notes include covenants which restrict the operations of AAC. The Settlement Agreement will remain in force until the surplus notes that were issued pursuant to the Settlement Agreement have been redeemed, repurchased or repaid in full. The Stipulation and Order will remain in force for so long as OCI determines it to be necessary. The indenture for the Tier 2 Notes will remain in force until the Tier 2 Notes have been redeemed, repurchased or repaid in full. Certain of the restrictions in the Settlement Agreement and the indenture for the Tier 2 Notes may be waived with the approval of the OCI and/or the requisite percentage of holders of the related debt securities. Although not domiciled in New York, AAC is nevertheless subject to the New York insurance law governing financial guarantee insurers. New York’s comprehensive financial guarantee insurance law defines the scope of permitted financial guarantee insurance and governs the conduct of business of all financial guarantors licensed to do business in New York, including AAC. The New York financial guarantee insurance law also establishes single and aggregate risk limits with respect to insured obligations insured by financial guarantee insurers. Such single risk limits are specific to the type of insured obligation (for example, municipal or asset-backed). Under the aggregate limits, policyholders’ surplus and contingency reserves must at least equal a percentage of aggregate net liability that is equal to the sum of various percentages of aggregate net liability for various categories of specified obligations. At December 31, 2021, AAC is in compliance with applicable aggregate risk limits but not in compliance with applicable single risk limits. Through run-off of the portfolio, AAC will continue to seek the reduction in its exposure for compliance with applicable single and aggregate risk limits, but may not be able to do so. The financial statements of AAC and Everspan are prepared on the basis of accounting practices prescribed or permitted by the State Insurance Laws and the actions of regulatory authorities thereunder. AAC and Everspan use such statutory accounting practices prescribed or permitted by the applicable regulatory authorities for determining and reporting their financial condition and results of operations, including for determining solvency under the State Insurance Laws. The States in which AAC and Everspan are domiciled have adopted the National Association of Insurance Commissioners (“NAIC”) accounting practices and procedures manual (“NAIC SAP”) as a component of prescribed practices as codified in each State’s applicable law or regulation. Statutory policyholder surplus differs from stockholder's equity determined under GAAP principally due to statutory accounting rules that treat financial guarantee premiums and loss reserves, investments, consolidation of subsidiaries or variable interest entities and surplus notes differently. The following are details of statutory surplus for AAC and Everspan Indemnity: • AAC’s statutory policyholder surplus was $757 at December 31, 2021, as compared to $865 as of December 31, 2020. • Everspan Indemnity has statutory policyholder surplus of $106 as of December 31, 2021 as compared to $26 as of December 31, 2020. The OCI has prescribed additional practices and has permitted accounting practices for AAC. As a result of the prescribed and permitted practices discussed below, AAC’s statutory surplus at December 31, 2021 and 2020 was lower by $5 and higher by $40, respectively, than if AAC had reported such amounts in accordance with NAIC SAP. The Arizona Department of Insurance and Financial Institutions has permitted accounting practices for Everspan Indemnity and Everspan Insurance. As a result of the permitted practice discussed below, Everspan Indemnity's statutory surplus at December 31, 2021 was higher by $18 than if Everspan had reported such amounts with NAIC SAP. Everspan had no additional prescribed practices as at December 31, 2021 and no permitted or additional prescribed practices at December 31, 2020. Additional Prescribed Accounting Practices AAC: OCI has prescribed the following accounting practices that differ from NAIC SAP for AAC: • Paragraph 8 of Statement of Statutory Accounting Principles No. 60 “Financial Guaranty Insurance” allows for a deduction from loss reserves for the time value of money by application of a discount rate equal to the average rate of return on the admitted assets of the financial guaranty insurer as of the date of the computation of the reserve. The discount rate shall be adjusted at the end of each calendar year. Additionally, in accordance with paragraph 13.e of Statutory Accounting Principles No. 97 "Investments in Subsidiary, Controlled and Affiliated Entities" and paragraph 8 of Statutory Accounting Principles No. 5R “Liabilities, Contingencies and Impairments of Assets - Revised”, AAC records probable losses on its subsidiaries for which it guarantees their obligations. AAC also discounts probable losses on guarantees of subsidiary obligations using a discount rate equal to the average rate of return on its admitted assets. AAC’s average rates of return on its admitted assets at December 31, 2021 and 2020 were 5.28% and 4.56%, respectively. OCI has directed AAC to utilize a prescribed discount rate of 5.10% for the purpose of discounting both its loss reserves and its probable losses on subsidiary guarantees. • Paragraph 4 of Statement of Statutory Accounting Principles No. 41 “Surplus Notes” (“SSAP 41”) states that proceeds received by the issuer of surplus notes must be in the form of cash or other admitted assets having readily determinable values and liquidity satisfactory to the commissioner of the state of domicile. Under statutory accounting principles, surplus notes issued in conjunction with commutations or the settlement of obligations would be valued at zero upon issuance pursuant to paragraph 4, SSAP 41. OCI has directed the Company to record surplus notes issued in connection with commutations or the settlement of obligations at full par value upon issuance. The surplus notes issued have a claim against surplus senior to the preferred and common shareholders. • Paragraph 35 of Statement of Statutory Accounting Principles No. 43R ”Loan-backed and Structured Securities” states that when an other-than-temporary impairment ("OTTI") has occurred, the amount of the OTTI recognized as a realized loss shall equal the difference between the investment’s amortized cost basis and the present value of cash flows expected to be collected, discounted at the loan-backed or structured security’s effective interest rate. Beginning June 11, 2014, as a result of the amended Segregated Account Rehabilitation Plan, OCI has directed the Company to not evaluate investments in AAC insured securities with policies that were allocated to the Segregated Account for OTTI and require all such investments be reported at amortized cost regardless of its NAIC risk designation. This accounting determination was intended to recognize that AAC continues to maintains statutory loss reserves without adjustment for the economic effects of its ownership of the insured investment securities, improve transparency to the users of the statutory financial statements and to minimize operational risks. Effective February 12, 2018, with the Segregated Account's exit from rehabilitation, this prescribed practice was no longer applicable for OTTI evaluations going forward. Permitted Accounting Practices AAC: OCI has allowed the following permitted practice for AAC: • Wisconsin accounting practices for changes to contingency reserves differ from NAIC SAP. Under NAIC SAP, contributions to and releases from the contingency reserve are recorded via a direct charge or credit to surplus. Under the Wisconsin Administrative Code, contributions to and releases from the contingency reserve are to be recorded through underwriting income. AAC received permission from OCI to record contributions to and releases from the contingency reserve, in accordance with NAIC SAP. Everspan: The Arizona Department of Insurance and Financial Institutions has allowed the following permitted practice for Everspan: • Paragraph 8 of Statement of Statutory Accounting Principles No. 97 “Investment in Subsidiary, Controlled and Affiliated Entities” (“SSAP 97”) states Investments in US insurance Subsidiary, Controlled and Affiliated entities shall be recorded based on the underlying audited statutory equity of the respective entity's financial statements adjusted for any unamortized goodwill. Everspan has received permission from the Arizona Department of Insurance and Financial Institutions to admit its investment at December 31, 2021 of its wholly owned subsidiary, Providence Washington Insurance Company. Providence Washington Insurance Company received a waiver from its regulator to file a statutory audit report issued for the year ended December 31, 2021. United Kingdom The Prudential Regulatory Authority (“PRA”) and Financial Conduct Authority (“FCA”) (and their predecessor regulator the Financial Services Authority (“FSA”)) are the dual statutory regulator responsible for regulating the financial services industry in the United Kingdom, with the purpose of maintaining confidence in the U.K. financial system, providing public understanding of the system, securing the proper degree of protection for consumers and helping to reduce financial crime. These regulators have exercised significant oversight of Ambac UK since 2008, after Ambac, AAC and Ambac UK began experiencing financial stress. In 2009, Ambac UK’s license to write new business was curtailed by the FSA and the insurance license was limited to undertaking only run-off related activity. As such, Ambac UK is authorized to run-off its credit, suretyship and financial guarantee insurance portfolio in the United Kingdom. The PRA requires that non-life insurance companies such as Ambac UK maintain a margin of solvency at all times in respect of the liabilities of the insurance company, the calculation of which depends on the type and amount of insurance business a company writes. These solvency requirements were amended on January 1, 2016, in order to implement the European Union's "Solvency II" directive on risk-based capital. Ambac UK had previously been in a capital shortfall position as compared to these solvency capital requirements, but met the requirements as at December 31, 2021. Ambac UK's regulators are fully aware of the deficiency which previously existed, and dialogue between Ambac UK and its regulators remains ongoing with respect to options for strengthening the capital position further. Dividend Restrictions, Including Contractual Restrictions State Insurance Regulators prescribe rules that determine if AAC and Everspan may declare dividends. In addition, AAC and Everspan are subject to certain restrictions in their respective articles of incorporation with regards to the payment of dividends. Board action authorizing a distribution by an insurance company must generally be reported to the applicable domiciliary regulator prior to payment. In addition, State Insurance Laws generally require regulatory approval for the payment of extraordinary dividends, which are distributions in amounts that would exceed certain thresholds, such as a percentage of surplus or net income for the prior year or number of years. Everspan does not have sufficient earned surplus at this time to pay ordinary dividends under the State Insurance Laws. Furthermore, certain subsidiaries of Everspan Insurance are restricted from paying dividends to Everspan Insurance until 2025 or later pursuant to the regulatory orders approving the acquisition of those subsidiaries, unless specifically approved by the applicable domiciliary regulator. Due to losses experienced by AAC, it has been unable to pay ordinary dividends to AFG since 2008 and will be unable to pay common dividends in 2022 without the prior consent of the OCI, which is extremely unlikely. AAC’s ability to pay dividends is further restricted by the Settlement Agreement (as described below), by the indenture for the Tier 2 Notes (as described below), by the terms of its AMPS (as described below) and by the Stipulation and Order. See Note 1. Background and Business Description for further information. AAC is not expected to make dividend payments to AFG for the foreseeable future.Pursuant to the Settlement Agreement, AAC may not make any “Restricted Payment” (which includes dividends from AAC to Ambac) in excess of $5 in the aggregate per annum, other than Restricted Payments from AAC to Ambac in an amount up to $8 per annum solely to pay operating expenses of Ambac. Concurrent with making any such Restricted Payment, a pro rata amount of AAC's surplus notes would also need to be redeemed at par. The indenture for the Tier 2 Notes contains a similar restrictive covenant and further requires a proportional payment of the Tier 2 Notes (or interest thereon) when payments are made on the surplus notes. • Under the terms of AAC’s AMPS, dividends may not be paid on the common stock of AAC unless all accrued and unpaid dividends on the AMPS for the then current dividend period have been paid, provided, that dividends on the common stock may be made at all times for the purpose of, and only in such amounts as are necessary for, enabling Ambac (i) to service its indebtedness for borrowed money as such payments become due or (ii) to pay its operating expenses. If dividends are paid on the common stock as provided in the prior sentence, dividends on the AMPS become cumulative until the date that all accumulated and unpaid dividends have been paid on the AMPS. • The Stipulation and Order requires OCI approval for the payment of any dividend or distribution on the common stock of AAC. UK law prohibits Ambac UK from declaring a dividend to its shareholders unless it has “profits available for distribution.” The determination of whether a company has profits available for distribution is based on its accumulated realized profits less its accumulated realized losses. While the UK insurance regulatory laws impose no statutory restrictions on a general insurer’s ability to declare a dividend, the PRA’s and FCA’s capital requirements in practice act as a restriction on the payment of dividends. Further, the FSA amended Ambac UK’s license in 2010 such that the PRA must specifically approve (“non-objection”) any transfer of value and/or assets from Ambac UK to AAC or any other Ambac group company, other than in respect of certain disclosed contracts between the two parties (such as in respect of a management services agreement between AAC and Ambac UK). Ambac UK is not expected to pay any dividends to AAC for the foreseeable future. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 9. DERIVATIVE INSTRUMENTS The following tables summarize the gross fair values of individual derivative instruments and the impact of legal rights of offset as reported in the Consolidated Balance Sheets as of December 31, 2021 and 2020. Gross Gross Net Amounts Gross Amount Net Amount December 31, 2021: Derivative Assets: Interest rate swaps $ 76 $ — $ 76 $ — $ 76 Total non-VIE derivative assets $ 76 $ — $ 76 $ — $ 76 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 94 — 94 93 1 Total non-VIE derivative liabilities $ 95 $ — $ 95 $ 93 $ 2 Variable Interest Entities Derivative Assets: Currency swaps $ 38 $ — $ 38 $ — $ 38 Total VIE derivative assets $ 38 $ — $ 38 $ — $ 38 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,940 $ — $ 1,940 $ — $ 1,940 Total VIE derivative liabilities $ 1,940 $ — $ 1,940 $ — $ 1,940 December 31, 2020: Derivative Assets: Interest rate swaps $ 93 $ — $ 93 $ — $ 93 Total non-VIE derivative assets $ 93 $ — $ 93 $ — $ 93 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 114 — 114 113 1 Total non-VIE derivative liabilities $ 114 $ — $ 114 $ 113 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 41 $ — $ 41 $ — $ 41 Total VIE derivative assets $ 41 $ — $ 41 $ — $ 41 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,835 $ — $ 1,835 $ — $ 1,835 Total VIE derivative liabilities $ 1,835 $ — $ 1,835 $ — $ 1,835 Amounts representing the right to reclaim cash collateral or the obligation to return cash collateral are not offset against fair value amounts recognized for derivative instruments on the Consolidated Balance Sheets. The amounts representing the right to reclaim cash collateral and posted margin, recorded in “Other assets” were $13 and $1 as of December 31, 2021 and 2020, respectively. There were no amounts held representing an obligation to return cash collateral as of December 31, 2021 and 2020. The following tables summarize the location and amount of gains and losses of derivative contracts in the Consolidated Statements of Total Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019: Location of Gain (Loss) Recognized Amount of Gain (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) – 2021 2020 2019 Non-VIE derivatives: Credit derivatives Net gains (losses) on derivative contracts $ — $ — $ 2 Interest rate swaps Net gains (losses) on derivative contracts 13 (9) (6) Futures contracts Net gains (losses) on derivative contracts 9 (41) (45) Total non-VIE derivatives 22 (50) (50) Variable Interest Entities: Currency swaps Income (loss) on variable interest entities 2 (6) (12) Interest rate swaps Income (loss) on variable interest entities (152) (138) (20) Total Variable Interest Entities (150) (144) (32) Total derivative contracts $ (128) $ (193) $ (82) Credit Derivatives Credit derivatives, which are privately negotiated contracts, provide the counterparty with credit protection against the occurrence of a specific event such as a payment default or bankruptcy relating to an underlying obligation. Credit derivatives issued by ACP are insured by AAC. The outstanding credit derivative transaction at December 31, 2021, does not include ratings based collateral-posting triggers or otherwise require Ambac to post collateral regardless of Ambac’s ratings or the size of the mark to market exposure to Ambac. Our credit derivatives were written on a “pay-as-you-go” basis. Similar to an insurance policy, pay-as-you-go provides that Ambac pays interest shortfalls on the referenced transaction as they are incurred on each scheduled payment date, but only pays principal shortfalls upon the earlier of (i) the date on which the assets designated to fund the referenced obligation have been disposed of and (ii) the legal final maturity date of the referenced obligation. Ambac maintains internal credit ratings on its guaranteed obligations, including credit derivative contracts, solely to indicate management’s view of the underlying credit quality of the guaranteed obligations. The principal notional outstanding for credit derivative contracts was $201 and $257 as of December 31, 2021 and 2020, respectively, all of which had internal Ambac ratings of AA. Interest Rate Derivatives Ambac, through its subsidiary Ambac Financial Services (“AFS”), uses interest rate swaps, US Treasury futures contracts and other derivatives, to provide a partial economic hedge against the effects of rising interest rates elsewhere in the Company, including on Ambac’s financial guarantee exposures. Additionally, AFS provided interest rate swaps to states, municipalities and their authorities, asset-backed issuers and other entities in connection with their financings. As of December 31, 2021 and 2020, the notional amounts of AFS's derivatives are as follows: Notional - December 31, Type of Derivative 2021 2020 Interest rate swaps—pay-fixed/receive-variable $ 1,275 $ 726 US Treasury futures contracts—short 470 240 Interest rate swaps—receive-fixed/pay-variable 185 195 Derivatives of Consolidated Variable Interest Entities Certain VIEs consolidated under the Consolidation Topic of the ASC entered into derivative contracts to meet specified purposes within the securitization structure. The notional for VIE derivatives outstanding as of December 31, 2021 and 2020, were as follows: Notional - December 31, Type of VIE Derivative 2021 2020 Interest rate swaps—receive-fixed/pay-variable $ 1,221 $ 1,233 Interest rate swaps—pay-fixed/receive-variable 1,069 1,151 Currency swaps 272 308 Contingent Features in Derivatives Related to Ambac Credit Risk Ambac’s over-the-counter interest rate swaps are centrally cleared when eligible. Certain interest rate swaps remain with professional swap-dealer counterparties and direct customer counterparties. These non-cleared swaps are generally executed under standardized derivative documents including collateral support and master netting agreements. Under these agreements, Ambac is required to post collateral in the event net unrealized losses exceed predetermined threshold levels. Additionally, given that AAC is no longer rated by an independent rating agency, counterparties have the right to terminate the swap positions. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | |
Intangible Assets Disclosure | 10. INTANGIBLE ASSETS Intangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below. December 31, 2021 2020 Finite-lived Intangible Assets: Insurance intangible: Gross carrying value $ 1,278 $ 1,281 Accumulated amortization 958 908 Net insurance intangible asset 320 373 Other intangibles: Gross Carrying value 36 36 Accumulated amortization 3 — Net other intangible assets 33 36 Total finite-lived intangible assets $ 353 $ 409 Indefinite-lived Intangible Assets: Insurance licenses $ 9 $ — Total intangible assets $ 362 $ 409 Amortization Expense: Amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss), as shown below. Year ended December 31, 2021 2020 2019 Insurance intangible $ 52 57 $ 295 Other intangible 3 — — Total $ 55 $ 57 $ 295 The estimated future amortization expense for intangible assets is as follows: Insurance Intangible Asset (1) Other Intangible Assets (1) Total 2022 $ 34 $ 3 $ 36 2023 30 3 33 2024 28 3 31 2025 25 3 28 2026 23 2 25 Thereafter 180 20 200 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Variable Interest Entity Disclosure | 11. VARIABLE INTEREST ENTITIES Ambac, with its subsidiaries, has engaged in transactions with variable interest entities ("VIEs") in various capacities. • Ambac provides financial guarantees for various debt obligations issued by special purpose entities, including VIEs ("FG VIEs"); • Ambac sponsors special purpose entities that issued notes to investors for various purposes; and • Ambac is an investor in collateralized debt obligations, mortgage-backed and other asset-backed securities issued by VIEs and its ownership interest is generally insignificant to the VIE and/or Ambac does not have rights that direct the activities that are most significant to such VIE. FG VIEs Ambac’s subsidiaries provide financial guarantees in respect of assets held or debt obligations of VIEs. Ambac’s primary variable interest exists through this financial guarantee insurance or credit derivative contract. The transaction structures provide certain financial protection to Ambac. Generally, upon deterioration in the performance of a transaction or upon an event of default as specified in the transaction legal documents, Ambac will obtain certain control rights that enable Ambac to remediate losses. These rights may enable Ambac to direct the activities of the entity that most significantly impact the entity’s economic performance. Under the 2018 Stipulation and Order, AAC is required to obtain OCI approval with respect to the exercise of certain significant control rights in connection with policies that had previously been allocated to the Segregated Account. Accordingly, AAC does not have the right to direct the most significant activities of those FG VIEs. • We determined that AAC and Ambac UK generally have the obligation to absorb a FG VIE's expected losses given that they have issued financial guarantees supporting certain liabilities (and in some cases certain assets). As further described below, Ambac consolidates certain FG VIEs in cases where we also have the power to direct the activities that most significantly impact the VIE’s economic performance due to one or more of the following: (i) the transaction is experiencing deterioration and breaching performance triggers, giving Ambac the ability to exercise certain control rights, (ii) Ambac being involved in the design of the VIE and receiving control rights from its inception, such as may occur from loss remediation activities, or (iii) the transaction is not experiencing deterioration, however due to the passive nature of the VIE, Ambac's contingent control rights upon a future breach of performance triggers is considered to be the power over the most significant activity. • A VIE is deconsolidated in the period that Ambac no longer has such control rights, which could occur in connection with the execution of remediation activities on the transaction or amortization of insured exposure, either of which may reduce the degree of Ambac’s control over a VIE. • Assets and liabilities of FG VIEs that are consolidated are reported within Variable interest entity assets or Variable interest entity liabilities on the Consolidated Balance Sheets. • The election to use the fair value option is made on an instrument by instrument basis. Ambac has elected the fair value option for consolidated FG VIE financial assets and financial liabilities, except in cases where Ambac was involved in the design of the VIE and was granted control rights at its inception. ◦ When the fair value option is elected, changes in the fair value of the FG VIE's financial assets and liabilities are reported within Income (loss) on variable interest entities in the Consolidated Statements of Total Comprehensive Income (Loss), except for the portion of the total change in fair value of financial liabilities caused by changes in the instrument-specific credit risk which is presented separately in Other comprehensive income (loss). ◦ In cases where the fair value option has not been elected, the FG VIE's invested assets are fixed maturity securities and are considered available-for-sale as defined by the Investments - Debt Securities Topic of the ASC. These assets are reported in the financial statements at fair value with unrealized gains and losses reflected in Accumulated Other Comprehensive Income (loss) in Stockholders' Equity. The financial liabilities of these FG VIEs consist of long term debt obligations and are carried at par less unamortized discount. Income from the FG VIE's available-for-sale securities (including investment income, realized gains and losses and credit impairments as applicable) and interest expense on long term debt are reported within Income (loss) on variable interest entities in the Consolidated Statements of Total Comprehensive Income (Loss). • Upon initial consolidation of a FG VIE, Ambac recognizes a gain or loss in earnings for the difference between: (i) the fair value of the consideration paid, the fair value of any non-controlling interests and the reported amount of any previously held interests and (ii) the net amount, as measured on a fair value basis, of the assets and liabilities consolidated. Upon deconsolidation of a FG VIE, Ambac recognizes a gain or loss for the difference between: (i) the fair value of any consideration received, the fair value of any retained non-controlling investment in the VIE and the carrying amount of any non-controlling interest in the VIE and (ii) the carrying amount of the VIE’s assets and liabilities. Gains or losses from consolidation and deconsolidation that are reported in earnings are reported within Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). • The impact of consolidating such FG VIEs on Ambac’s balance sheet is the elimination of transactions between the consolidated FG VIEs and Ambac’s operating subsidiaries and the inclusion of the FG VIE’s third party assets and liabilities. For a financial guarantee insurance policy issued to a consolidated VIE, Ambac does not reflect the financial guarantee insurance policy in accordance with the related insurance accounting rules under the Financial Services — Insurance Topic of the ASC. Consequently, upon consolidation, Ambac eliminates the insurance assets and liabilities associated with the policy from the Consolidated Balance Sheets. Such insurance assets and liabilities may include premium receivables, reinsurance recoverable, deferred ceded premium, subrogation recoverable, unearned premiums, loss and loss expense reserves, ceded premiums payable and insurance intangible assets. For investment securities owned by Ambac that are debt instruments issued by the VIE, the associated debt and investment balances are eliminated upon consolidation. FG VIEs which are consolidated may include recourse and non-recourse liabilities. FG VIEs' liabilities that are insured by AAC or Ambac UK are with recourse, because the Company guarantees the payment of principal and interest in the event the issuer defaults. FG VIEs' liabilities that are not insured by the AAC or Ambac UK are without recourse, because AAC or Ambac UK have not issued a financial guarantee and is under no obligation for the payment of principal and interest of these instruments. AAC or Ambac UK’s economic exposure to consolidated FG VIEs is limited to the financial guarantees issued for recourse liabilities and any additional variable interests held by them. Additionally, AAC or Ambac UK’s general creditors, other than those specific policy holders which own the VIE debt obligations, do not have rights with regard to the assets of the VIEs. Ambac evaluates the net income effects and earnings per share effects to determine attributions between Ambac and non-controlling interests as a result of consolidating a VIE. Ambac has determined that the net income and earnings per share effect of consolidated FG VIEs are attributable to Ambac’s interests through financial guarantee premium and loss payments with the VIE. The following table summarizes the carrying values of assets and liabilities, along with other supplemental information related to VIEs that are consolidated as a result of financial guarantees of Ambac UK and AAC: December 31, 2021 2020 Ambac UK Ambac Assurance Total VIEs Ambac UK Ambac Assurance Total VIEs ASSETS: Fixed maturity securities, at fair value: Corporate obligations, fair value option $ 3,320 $ — $ 3,320 $ 3,215 $ — $ 3,215 Municipal obligations, available-for-sale (1) — 136 136 — 139 139 Total FG VIE fixed maturity securities, at fair value 3,320 136 3,455 3,215 139 3,354 Restricted cash 1 1 2 1 1 2 Loans, at fair value (2) 2,718 — 2,718 2,998 — 2,998 Derivative assets 38 — 38 41 — 41 Other assets — 2 2 — 2 2 Total FG VIE assets $ 6,077 $ 139 $ 6,216 $ 6,255 $ 143 $ 6,398 LIABILITIES: Long-term debt: Long-term debt, at fair value (3) $ 4,056 $ — $ 4,056 $ 4,324 $ — $ 4,324 Long-term debt, at par less unamortized discount — 160 160 — 169 169 Total long-term debt 4,056 160 4,216 4,324 169 4,493 Derivative liabilities 1,940 — 1,940 1,835 — 1,835 Total FG VIE liabilities $ 5,996 $ 160 $ 6,156 $ 6,159 $ 169 $ 6,328 Number of FG VIEs consolidated 5 1 6 5 1 6 (1) Available-for-sale FG VIE fixed-maturity securities consist of municipal obligations with an amortized cost basis of $106 and $113, and aggregate gross unrealized gains of $29 and $27 at December 31, 2021 and 2020, respectively. All such securities had contractual maturities due after ten years as of December 31, 2021. (2) The unpaid principal balances of loan assets carried at fair value were $2,363 and $2,546 as of December 31, 2021 and 2020, respectively. (3) The unpaid principal balances of long-term debt carried at fair value were $3,579 and $3,769 as of December 31, 2021 and 2020, respectively. The following schedule details the components of Income (loss) on variable interest entities for the affected periods: Year ended December 31, 2021 2020 2019 Net change in fair value of VIE assets and liabilities reported under the fair value option $ 4 $ (1) $ 13 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 5 (3) 14 Investment income on available-for-sale securities 6 7 10 Net realized investment gains (losses) on available-for-sale securities 2 8 13 Interest expense on long-term debt carried at par less unamortized cost (6) (6) (11) Other expenses (1) — (1) Gain (loss) from consolidating FG VIEs — — 15 Gain (loss) from de-consolidating FG VIEs — — (2) Income (loss) on variable interest entities $ 7 $ 5 $ 38 As further discussed in Note 7. Insurance Contracts , on February 12, 2019, in connection with the COFINA POA, the COFINA Class 2 Trust was established. Ambac was required to consolidate the COFINA Class 2 Trust, which resulted in a gain of $15. Ambac deconsolidated zero, one and one VIEs for the years ended December 31, 2021, 2020 and 2019, respectively. These VIEs were deconsolidated as a result of guaranteed bond retirements or loss mitigation activities that eliminated or reduced Ambac's control rights that previously required Ambac to consolidate these entities, and resulted in the gain (loss) on deconsolidation noted in the above table. There was no impact to consolidated assets and liabilities for the 2020 deconsolidation. 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, 2021 and 2020: Carrying Value of Assets and Liabilities Maximum (1) Insurance (2) Insurance (3) Net Derivative (Liabilities) (4) December 31, 2021: Global structured finance: Mortgage-backed—residential $ 3,265 $ 1,929 $ 521 $ — Other consumer asset-backed 788 17 234 — Other 826 3 10 5 Total global structured finance 4,879 1,949 765 5 Global public finance 20,233 246 257 — Total $ 25,112 $ 2,195 $ 1,023 $ 5 December 31, 2020: Global structured finance: Mortgage-backed—residential $ 4,308 $ 2,024 $ 580 $ — Other consumer asset-backed 1,050 24 239 — Other 994 3 15 8 Total global structured finance 6,352 2,051 834 8 Global public finance 21,646 263 287 — Total $ 27,998 $ 2,314 $ 1,122 $ 8 (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 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 credit derivative contracts and interest rate swaps on Ambac’s Consolidated Balance Sheets. Ambac Sponsored Non-consolidated VIEs On August 28, 2014, Ambac monetized its ownership of the junior surplus note issued to it by AAC by depositing the junior surplus note into the Corolla Trust, a VIE, in exchange for cash and the Corolla Certificate, which represented Ambac's right to residual cash flows from the junior surplus note. Ambac did not consolidate the VIE since it did not have a variable interest in the trust. Ambac reported the Corolla Certificate as an equity investment within Other investments on the Consolidated Balance Sheets with associated results from operations included within Net investment income (loss): Other investments on the Consolidated Statements of Total Comprehensive Income (Loss). The equity investment had a carrying value of $51 at December 31, 2020. As further described in Note 1. Background and Business Description, on January 22, 2021, AAC completed the Corolla Note Exchange transaction whereby it acquired 100% of the outstanding Notes of the Corolla Trust and the Corolla Certificates for AAC surplus notes and subsequently dissolved the Corolla Trust. On February 12, 2018, Ambac formed a VIE, Ambac LSNI, LLC ("Ambac LSNI"). Ambac LSNI issued LSNI Secured Notes in connection with the Rehabilitation Exit Transactions. Ambac does not consolidate Ambac LSNI since it does not have a variable interest in the VIE. Ambac reported its holdings of LSNI Secured Notes within Fixed Maturity Securities in the Consolidated Balance Sheets. The carrying value of LSNI Secured Notes held by Ambac was $465 at December 31, 2020. Ambac's debt obligation to the VIE had a carrying value of $1,641 at December 31, 2020, and was reported within Long-term debt on the Consolidated Balance Sheets. As further described in Note 1. Background and Business Description, on July 6, 2021, Sitka, Ambac's newly formed VIE, issued the Sitka Senior Secured Notes that were used to fund a portion of the full redemption of the LSNI Secured Notes issued by LSNI, with the remaining balance redeemed utilizing other available sources of liquidity. Ambac does not consolidate Sitka since it does not have a variable interest in the VIE. Ambac's debt obligation to Sitka had a carrying value of $1,154 at December 31, 2021, and is reported within Long-term debt on the Consolidated Balance Sheets. |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 12. LONG-TERM DEBT Long-term debt outstanding, excluding VIE long-term debt, was as follows: December 31, 2021 2020 Par Value Unamortized Discount Carrying Value Par Value Unamortized Discount Carrying Value Ambac Assurance: 5.1% Surplus Notes $ 785 $ (56) $ 729 $ 531 $ — $ 531 5.1% Junior Surplus Notes — — — 365 (118) 247 LSNI Ambac Note — — — 1,641 — 1,641 Sitka AAC Note 1,175 (21) $ 1,154 — — — Tier 2 Notes 333 — 333 306 — 306 Ambac UK Debt 41 (26) 15 41 (27) 14 Long-term debt $ 2,334 $ (104) $ 2,230 $ 2,884 $ (145) $ 2,739 Aggregated annual maturities of non-VIE long-term debt obligations (based on scheduled maturity dates as further discussed below) are as follows: 2022 $ 785 (1) 2023 — 2024 — 2025 — 2026 1,175 Thereafter 373 Total $ 2,334 (1) Surplus Notes issued had a scheduled maturity date of June 7, 2020. OCI declined the request of Ambac Assurance to pay the principal amount of the surplus notes, plus all accrued and unpaid interest thereon, on June 7, 2020, and June 7, 2021. As a result, the payment date for principal of the surplus notes was extended until OCI grants approval to make the payment. Interest will accrue, compounded on each anniversary of the original scheduled payment date or scheduled maturity date, on any unpaid principal or interest through the actual date of payment at 5.1% per annum. Included in the table above is the potential principal payment at the next scheduled payment date of June 7, 2022. Surplus Notes Ambac Assurance's Surplus Notes, with a par amount of $785 and $531 at December 31, 2021 and 2020, respectively, had a scheduled maturity of June 7, 2020, which has been extended until OCI grants approval to make the payment. During the year ended December 31, 2021, in connection with the 2021 Surplus Note Exchanges and other transactions, Surplus Notes with aggregate par amount of $255 were re-issued, and all Junior Surplus Notes were acquired and extinguished. The discount on Surplus Notes issued prior to 2021 was accreted into income using the effective interest method based on projected cash flows at the date of issuance through June 7, 2020, using a weighted average imputed interest rate of 10.1%. The discount on Surplus Notes issued during the year ended December 31, 2021, is being accreted into income using the effective interest method at a weighted average imputed interest rate of 8.9%. Refer to Note 1. Background and Business Description for further discussion of the 2021 Surplus Note Exchanges. Ambac can provide no assurance as to when surplus note principal and interest payments will be made, if ever. If OCI does not approve regular payments on surplus notes within the next several years, the total amount due for surplus notes may exceed AAC's financial resources and holders of surplus notes may not ever be paid in full. Surplus notes are subordinated in right of payment to other claims, which could impair the right of holders of such notes to receive interest and principal in the event of AAC's insolvency or a similar occurrence. Sitka AAC Note The Sitka AAC Note, issued in connection with the Secured Note Refinancing on July 6, 2021, as more fully described in Note 1. Background and Business Description, has a par value of $1,175 at December 31, 2021, and a legal maturity of July 6, 2026. Interest on the Sitka AAC Note is payable quarterly (on the last day of each quarter beginning with September 30, 2021) at an annual rate of 3-month U.S. Dollar LIBOR + 4.50%, subject to a 0.75% LIBOR floor. The discount on Sitka AAC Note is being accreted into income using the effective interest method based on an imputed interest rate of 5.7% The Sitka AAC Note is redeemable prior to July 6, 2022, at a price of 100% of the principal amount plus a make-whole premium and accrued and unpaid interest. The make-whole premium represents the excess of the present value of 103% of the principal amount plus all required scheduled interest payments through July 6, 2022 (excluding accrued and unpaid interest to the redemption date ) , over the principal amount to be redeemed. On and after July 6, 2022, and prior to July 6, 2023, the notes are redeemable at a price equal to 103% of the principal amount plus accrued and unpaid interest. On and after July 6, 2023, the notes are redeemable at 100% of the principal amount plus accrued and unpaid interest. The Sitka AAC Note is secured by a pledge of AAC’s right, title and interest in (i) up to $1,400 of proceeds from certain litigations involving AAC related to residential mortgage-backed securities (the "RMBS Litigations") and (ii) the capital stock of Ambac UK. Such collateral may prove to be insufficient to pay any or all the amounts due on the Sitka AAC Note due to (a) inherent uncertainty with respect to the amount and timing of recoveries on the RMBS Litigations, and (b) uncertainty with respect to the value of Ambac UK and the amount that could be obtained in a sale or other disposition of such collateral due to factors such as market and economic conditions, the availability of buyers, constraints associated with any extant rehabilitation, liquidation or similar proceeding, and regulatory requirements with respect to a change in ownership of Ambac UK. In addition, AAC issued a financial guaranty insurance policy (the “Sitka Senior Secured Notes Policy”) to the trustee for the Sitka Senior Secured Notes for the benefit of the holders of the Sitka Senior Secured Notes irrevocably guaranteeing all regularly scheduled principal and interest payments in respect of the Sitka Senior Secured Notes as and when such payments become due and owing. Upon receipt of any proceeds from the RMBS Litigations or proceeds from the sale or disposition of Ambac UK, AAC shall apply an amount equal to the lesser of (a) the amount of such proceeds from the RMBS Litigations up to $1,400 or proceeds of the sale or disposition of Ambac UK, as the case may be, and (b) all outstanding principal, premium, if any, and accrued and unpaid interest on the Sitka AAC Note to redeem the Sitka AAC Note, in whole or in part, as applicable; provided, that any non-cash recoveries from the RMBS Litigations shall be deemed to be received upon the receipt of the applicable appraisal. LSNI Ambac Note The LSNI Ambac Note, issued in connection with the Rehabilitation Exit Transactions on February 12, 2018, had a par value of $— and $1,641 at December 31, 2021 and 2020, respectively, and had a legal maturity of February 12, 2023. Interest on the LSNI Ambac Note was payable quarterly (on the last day of each quarter beginning with June 30, 2018) at an annual rate of 3-month U.S. Dollar LIBOR + 5.00%, subject to a 1.00% LIBOR floor. During the years ended December 31, 2021, 2020 and 2019, $1,641, $121 and $178 par value of the LSNI Ambac Note was redeemed, respectively. The maturity date for the LSNI Ambac Note was the earlier of (x) February 12, 2023, and (y) if the LSNI Secured Notes were then outstanding, the date that is five business days prior to the date for which OCI approved the repayment of the outstanding principal amount of the surplus notes issued by AAC. Promptly, and in any event within four business days after the receipt (whether directly or indirectly) of any representation and warranty subrogation recoveries, AAC was to apply an amount (the “Mandatory Redemption Amount”) equal to the lesser of (a) the amount of representation and warranty subrogation recoveries up to $1,400 and (b) all outstanding principal and accrued and unpaid interest on the LSNI Ambac Note to redeem the LSNI Ambac Note, in whole or in part, as applicable; provided, that any non-cash representation and warranty subrogation recoveries shall be deemed to be received upon the receipt of the applicable appraisal. As further described in Note 1. Background and Business Description, on July 6, 2021, Sitka, Ambac's newly formed non-consolidated VIE, issued the Sitka Senior Secured Notes that were used to fund a portion of the full redemption of the LSNI Secured Notes issued by LSNI, with the remaining balance redeemed utilizing other available sources of liquidity. Tier 2 Notes The Tier 2 Notes, issued in connection with the Rehabilitation Exit Transactions on February 12, 2018, with a par value of $333 and $306 (including paid-in-kind interest of $93 and $66) at December 31, 2021 and 2020, respectively, have a legal maturity of February 12, 2055. Interest on the Tier 2 Notes is at an annual rate of 8.50%. Other than upon payment of principal at redemption or maturity, interest payments will not be made in cash on interest payment dates and shall be paid-in-kind and compounded on the last day of each calendar quarter. The Tier 2 Notes were recorded at a discount to par as any consideration paid that was directly related to the issuance of the Tier 2 Notes was capitalized and is part of the effective yield calculation. Ambac accreted the discount on the Tier 2 Notes into earnings using the effective interest method, at an imputed interest rate of 9.9% based on projected redemption at the date of issuance. The discount had been fully accreted as of December 31, 2020. The Tier 2 Notes are secured by recoveries from the RMBS Litigations in excess of $1,600 and are subject to mandatory redemption upon: (i) receipt of recoveries from the RMBS Litigations in excess of $1,600 ("Tier 2 Net Proceeds") and (ii) payment of principal or interest on AAC surplus notes. Promptly, and in any event within five business days after the receipt (whether directly or indirectly) of Tier 2 Net Proceeds, AAC shall deposit an amount equal to the Tier 2 Net Proceeds to a collateral account, provided, that any non-cash recoveries from the RMBS Litigations shall be deemed to be received upon the receipt of the applicable appraisal of the consideration received by AAC. Similarly, within five business days after a surplus note payment (other than in connection with the Rehabilitation Exit Transactions), AAC shall deposit an amount based on the percentage of Surplus Notes paid applied to the outstanding balance of the Tier 2 Notes to a collateral account. In both cases, the amount deposited shall not be in excess of the amount required to redeem all outstanding Tier 2 Notes. Also, such amounts shall be used to initiate a redemption on the Initial Call Date (as defined below) for the Tier 2 Notes or, if the Initial Call Date has occurred, promptly following the receipt of the Tier 2 Net Proceeds or surplus note payment. The Tier 2 Notes may also be redeemed, in whole or in part, at the option of AAC. Both mandatory and optional redemptions may be made at a price equal to 100% of the aggregate principal amount redeemed, plus accrued and unpaid interest, if any, plus a make-whole premium. Make-whole premiums are calculated based on future interest payments through the contractual call date ("Initial Call Date"). The Initial Call Date at issuance of December 17, 2020 extends ratably beginning the first anniversary of issuance to (i) September 17, 2021 by the second anniversary, and (ii) March 17, 2022 by the third anniversary of issuance. There are no extensions of the Initial Call Date beyond March 17, 2022. The Initial Call Date for redemptions is determined based on the date the applicable amounts are deposited to the collateral account. Ambac UK Debt The Ambac UK debt, issued in connection with the commutation of its exposure with respect to Ballantyne Re plc on June 18, 2019, has a par value of $41 and $41 at December 31, 2021 and 2020, and a legal maturity of May 2, 2036. Interest on the Ambac UK debt is at an annual rate of 0.00%. The Ambac UK debt was recorded at its fair value at the date of issuance. The discount on the debt is currently being accreted into income using the effective interest method at an imputed interest rate of 7.4%. Variable Interest Entities, Long-term Debt |
Revenue from Contract with Cust
Revenue from Contract with Customer | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 13. REVENUES FROM CONTRACTS WITH CUSTOMERS The following table presents the MGA/U business operations revenues recognized in accordance with the Revenue from Contracts with Customers Topic of the ASC disaggregated by policy type for the twelve months ended December 31, 2021: Employer Stop Loss Affinity Other Total Gross commissions $ 8 $ 18 $ — $ 26 During the twelve months ended December 31, 2021, the amount of revenue recognized related to performance obligations satisfied in a previous period, inclusive of changes due to estimates was approximately $12. Contract Assets and Liabilities The balances of contract assets and contract liabilities with customers were as follows: December 31, 2021 2020 Commissions receivable $ 2 $ 2 Contract assets 4 5 Contract liabilities 1 1 Contract assets represent estimated future consideration related to base commissions and profit-sharing commissions that were recognized as revenue upon the placement of the policy. The Company does not have the right to bill or collect payment on i) base commissions until the insurer has collected the related premiums from policyholders nor ii) profit-sharing commissions until after the contract year is completed. The change in contract assets during the year ended December 31, 2021, is primarily due to reclassification to receivables (unconditional right) and collections. |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Comprehensive Income | 14. COMPREHENSIVE INCOME The following tables detail the changes in the balances of each component of accumulated other comprehensive income for the affected periods: Unrealized Gains (1) Amortization of (1) Gain (Loss) on (1) Credit Risk Changes of Fair Value Option Liabilities (1) (2) Total Year ended December 31, 2021: Beginning Balance $ 166 $ 5 $ (92) $ — $ 79 Other comprehensive income (loss) before reclassifications (5) — (8) — (13) Amounts reclassified from accumulated other comprehensive income (loss) (7) (1) — (1) (9) Net current period other comprehensive income (loss) (12) (1) (8) (1) (21) Balance at December 31, 2021 $ 154 $ 4 $ (100) $ (1) $ 58 Year ended December 31, 2020: Beginning Balance $ 151 $ 8 $ (116) $ (2) $ 42 Other comprehensive income before reclassifications 36 (2) 23 — 58 Amounts reclassified from accumulated other comprehensive income (21) (1) — 1 (21) Net current period other comprehensive income (loss) 15 (3) 23 1 37 Balance at December 31, 2020 $ 166 $ 5 $ (92) $ — $ 79 (1) All amounts are net of tax and noncontrolling interest. Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income. (2) Represents the changes in fair value attributable to instrument-specific credit risk of liabilities for which the fair value option is elected. The following table details the significant amounts reclassified from each component of accumulated other comprehensive income, shown in the above rollforward tables, for the affected periods: Details about Accumulated Other Amount Reclassified from Accumulated Affected Line Item in the Year Ended December 31, 2021 2020 Unrealized Gains (Losses) on Available-for-Sale Securities (1) $ (7) $ (22) Net realized investment gains (losses) (1) 1 Provision for income taxes $ (7) $ (21) Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ (1) $ (1) Other income Actuarial gains (losses) — — Other income (1) (1) Total before tax — — Provision for income taxes $ (1) $ (1) Net of tax and noncontrolling interest Credit Risk Changes of Fair Value Option Liabilities $ (1) $ 2 Credit risk changes of fair value option liabilities — — Provision for income taxes (1) 1 Net of tax and noncontrolling interest Total reclassifications for the period $ (9) $ (21) Net of tax and noncontrolling interest (1) Net unrealized investment gains (losses) on available for sale securities are included in Ambac's Consolidated Statements of Comprehensive Income as a component of Accumulated Other Comprehensive Income. Changes in these amounts include reclassification adjustments to exclude from "Other comprehensive income (loss)" those items that are included as part of "Net income" for a period that has been part of "Other comprehensive income (loss)" in earlier periods. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 15. NET INCOME PER SHARE As of December 31, 2021, 46,304,139 shares of AFG's common stock (par value $0.01) and warrants entitling holders to acquire up to 4,877,617 shares of new common stock at an exercise price of $16.67 per share were issued and outstanding. Common shares outstanding increased by 495,000, during the year ended December 31, 2021, primarily due to settlements of employee restricted and performance stock units. For the three years ended December 31, 2021, 2020 and 2019, 132, 34 and — warrants were exercised, respectively, resulting in an issuance of 4, 8 and 0 shares of common stock, respectively. On June 30, 2015, the Board of Directors of AFG authorized the establishment of a warrant repurchase program that permits the repurchase of up to $10 of warrants. On November 3, 2016, the Board of Directors of AFG authorized a $10 increase to the warrant repurchase program. The remaining aggregate authorization at December 31, 2021 was $12. For the years ended December 31, 2021 and 2020, AFG did not repurchase any warrants. The following table provides a reconciliation of net income attributable to common stockholders to the numerator in the basic and diluted earnings per share calculation, together with the resulting earnings per share amounts: Year ended December 31, 2021 2020 2019 Net income (loss) attributable to common stockholders (17) (437) (216) Adjustment to redemption value (ASC 480) (12) — — Numerator of basic and diluted EPS (28) (437) (216) Per Share: Basic $ (0.61) $ (9.47) $ (4.69) Diluted $ (0.61) $ (9.47) $ (4.69) The denominator of the basic earnings per share computation represents the weighted average common shares outstanding plus vested restricted stock units (together, "Basic Weighted Average Shares Outstanding"). The denominator of diluted earnings per share adjusts the basic weighted average shares outstanding for all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants, unvested restricted stock units and performance stock units granted under existing compensation plans. The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share: Year Ended 2021 2020 2019 Basic weighted average shares outstanding 46,535,001 46,147,062 45,954,908 Effect of potential dilutive shares (1) : Warrants — — — Stock options — — — Restricted stock units — — — Performance stock units (2) — — — Diluted weighted average shares outstanding 46,535,001 46,147,062 45,954,908 Anti-dilutive shares excluded from the above reconciliation Warrants 4,877,653 4,877,754 4,877,783 Stock options — 16,121 16,667 Restricted stock units 475,333 302,145 249,263 Performance stock units (2) 700,915 1,002,501 872,258 (1) For the years ended years ended December 31, 2021, 2020 and 2019 , Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. (2) Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 16. INCOME TAXES The following are the major jurisdictions in which Ambac and its subsidiaries operate and the earliest tax years subject to examination: Jurisdiction Tax Year United States 2010 New York State 2013 New York City 2017 United Kingdom 2018 Italy 2017 Consolidated Pretax Income (Loss) U.S. and foreign components of pre-tax income (loss) were as follows: Year Ended December 31, 2021 2020 2019 U.S. $ (32) $ (441) $ (174) Foreign 34 1 (9) Total $ 2 $ (440) $ (183) Provision (Benefit) for Income Taxes The components of the provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 Current taxes U.S. state and local $ 2 $ — $ (3) Foreign 10 8 37 Total current taxes 12 8 34 Deferred taxes Foreign 6 (10) (1) Total deferred taxes $ 6 $ (10) $ (1) Provision for income taxes $ 18 $ (3) $ 32 The total effect of income taxes on net income and stockholders’ equity for the years ended December 31, 2021, 2020 and 2019 is as follows: Year Ended December 31, 2021 2020 2019 Total income taxes charged to net income $ 18 $ (3) $ 32 Income taxes charged (credited) to stockholders’ equity: Unrealized gains (losses) on investment securities (3) 3 14 Unrealized gains (losses) on foreign currency translations — — — Valuation allowance to equity 1 (3) (23) Total charged to stockholders’ equity: (2) 1 (8) Total effect of income taxes $ 16 $ (1) $ 24 Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate The tax provisions in the accompanying Consolidated Statements of Total Comprehensive Loss reflect effective tax rates differing from prevailing Federal corporate income tax rates. The following is a reconciliation of these differences: Year Ended December 31, 2021 2020 2019 Tax on income (loss) at statutory rate $ — 21 % $ (92) 21 % $ (38) 21 % Changes in expected tax resulting from: Tax-exempt interest (2) (114) % (2) — % (3) 2 % Foreign taxes 8 448 % 6 (1) % 40 (22) % State Income Taxes 14 794 % — — % (2) 1 % Substantiation adjustment — — % (29) 7 % 28 (15) % Valuation allowance (4) (230) % 113 (26) % 8 (4) % Other, net 1 72 % 2 — % — — % Tax expense on income (loss) $ 18 991 % $ (3) 1 % $ 32 (18) % Unrecognized Tax Positions The Company had no material unrecognized tax benefits at December 31, 2021 and 2020. Deferred Income Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at December 31, 2021 and 2020, are presented below: December 31, 2021 2020 Deferred tax liabilities: Insurance intangible $ 67 $ 78 Unearned premiums and credit fees 32 32 Investments 14 22 Variable interest entities 15 13 Other 6 7 Total deferred tax liabilities 134 152 Deferred tax assets: Net operating loss carryforward 786 764 Loss reserves 180 218 State capital loss carryforward 7 — Debentures 7 22 Compensation 8 9 Other 4 5 Subtotal deferred tax assets 993 1,019 Valuation allowance 886 891 Total deferred tax assets 106 128 Net deferred tax liability $ 28 $ 24 In accordance with the Income Tax Topic of the ASC, a valuation allowance is recognized if, based on the weight of available evidence, it is more-likely-than-not that some, or all, of the deferred tax asset will not be realized. As a result of the risks and uncertainties associated with future operating results, management believes it is more likely than not that the Company will not generate sufficient U.S. federal, state and/or local taxable income to recover the deferred tax operating assets and therefore maintains a full valuation allowance. The remaining net deferred tax liability of $28 is attributable to Ambac U.K. and is classified in other liabilities on the Consolidated Balance Sheet. NOL Usage Pursuant to a 2013 Closing Agreement between Ambac and the United States Internal Revenue Service ("IRS"), AAC could have to pay amount to as much as $8 to the IRS should AAC utilize NOLs available to it as of December 31, 2019. As of December 31, 2021, the Company has $3,744 of NOLs, which if not utilized will begin expiring in 2029, and will fully expire in 2041. |
Employment Benefit Plans (Notes
Employment Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | 17. EMPLOYMENT BENEFIT PLANS Postretirement Health Care and Postemployment Benefits Ambac provides postretirement and postemployment / severance benefits, including health and life benefits for certain employees who meet predefined age and service requirements. None of the plans are currently funded. Postretirement and postemployment benefits expense, including severance benefits paid, were $1, $1 and $3 for the years ended December 31, 2021, 2020 and 2019, respectively. Effective August 1, 2005, new employees were not eligible for postretirement benefits. The current postretirement benefit requires retirees to purchase their own medical insurance policy with a portion of their premium being reimbursed by Ambac. The unfunded accumulated postretirement benefit obligation was $11 as of December 31, 2021. The assumed health care cost trend rates range from 5.1% in 2022, decreasing ratably to 4.5% in 2032. The following table sets forth projected benefit payments from Ambac’s postretirement plan over the next ten years for current retirees: 2022 $ — 2023 — 2024 — 2025 1 2026 1 2025-2029 3 Total $ 5 The discount rate used in determining the projected benefit obligations for the postretirement plan is selected by reference to a pension liability index with similar duration to that of the benefit plan. The rates used for the projected plan benefit obligations at the measurement date for December 31, 2021 and 2020, were 2.75% and 2.25%, respectively. Savings Incentive Plans As a result of the acquisition of Xchange on December 31, 2020, Ambac has two Savings Incentive Plans. Substantially all US employees are covered by one of these plans. The plan sponsored by AAC includes employer matching contributions equal to 100% of the employees’ contributions, up to 3% of such participants’ compensation, as defined in the plan, plus 50% of contributions up to an additional 2% of compensation, subject to limits set by the Internal Revenue Code. The plan sponsored by Xchange includes employer matching contributions equal to 4% of such participants' compensation, as defined in the plan. The total cost of the savings incentive plans were $1, $1 and $1 for the years December 31, 2021, 2020 and 2019, respectively. Incentive Compensation - Stock Units and Cash Employees, directors and consultants of Ambac are eligible to participate in Ambac’s 2020 Incentive Plan, which is the successor plan to the 2013 Incentive Plan, subject to the discretion of the compensation committee of Ambac’s Board of Directors. There are 1,475,000 and 4,000,000 shares of Ambac's common stock authorized for awards under the 2020 Plan and 2013 Plan, respectively. Awards may also be made under the 2020 Plan with respect to the shares that remained available for grant under the 2013 Plan. In addition, shares subject to outstanding awards granted under the 2013 Plan that subsequently terminate by expiration or forfeiture, cancellation, or otherwise without the issuance of such shares become available for awards under the 2020 Plan. Of the total shares authorized for issuance pursuant to the 2020 Plan and 2013 Plan, 1,255,643 shares are available for future grant as of December 31, 2021. Shares available for future grant are reduced by the maximum number of shares that could be issued pursuant to outstanding performance awards. The number of shares available for future grant considering the target number of shares instead of the maximum number of shares related to performance awards is 2,691,618. On June 24, 2021, the compensation committee of Ambac's Board of Directors adopted the Ambac Financial Group, Inc. Executive Stock Deferral Plan (the “Stock Deferral Plan”). Under the Stock Deferral Plan, certain executives of AFG and its subsidiaries who are designated by the compensation committee as eligible to participate in the Stock Deferral Plan may elect to defer the settlement of all or a portion of the RSU (as defined below) awards and PSU (as defined below) awards that are granted to the executives to a future date(s) selected by the executive. Deferred awards under the Stock Deferral Plan (and any related dividend equivalents) will continue to be paid in shares of common stock of AFG, which will be issued under the 2020 Plan, provided that any dividend equivalents credited on a participant’s deferred awards in respect of cash dividends paid by AFG will be paid to the participant in cash. The Stock Deferral Plan is not funded, and deferred awards under the Stock Deferral Plan are not segregated from the Company’s general assets. The amount of stock-based compensation expense and corresponding after-tax expense are as follows: Year Ended December 31, 2021 2020 2019 Restricted stock units 5 3 4 Performance awards 10 8 8 Total stock-based compensation $ 14 $ 11 $ 12 Total stock-based compensation (after-tax) $ 14 $ 11 $ 12 Restricted Stock Units (“RSUs”) RSUs have been awarded to certain employees for a portion of their STIP compensation, LTIP compensation, sign-on and special awards for exceptional performance. RSUs have also been awarded to consultants for meeting certain contractual performance goals. The previously issued STIP awards vested upon grant, but settlement was deferred (other than for employment tax withholdings) into two equal installments generally on the first and second anniversary date of the grant. The LTIP, sign-on, consultant and special awards generally vest in equal installments over a two to three year period. Such vesting is expressly conditioned upon continued service with Ambac through the applicable vesting date, although vesting may be accelerated in certain circumstances under the awards, including for terminations due to death, disability, eligible retirement, or involuntary termination by Ambac other than for cause. As part of our director compensation program, prior to 2021 RSUs were awarded annually on or about April 30 of each year to directors and would vest on the last day of April of the following year. During 2021, the director compensation program was revised to provide for quarterly grants of RSUs that would vest one year from the grant date. These RSUs will not settle until the respective director’s termination from the board of directors or, if earlier, upon a change in control. All RSUs provide for accelerated vesting upon a change in control, death or disability or involuntary removal other than for cause (not including removal pursuant to a shareholder vote at a regularly scheduled annual meeting of shareholders). Upon termination (other than for cause), the unvested RSUs shall partially vest as of the date of such termination in an amount equal to the number of then outstanding unvested RSUs multiplied by a fraction, the numerator of which shall be the number of calendar days which have lapsed since the grant date and the denominator of which shall be the number of calendar days from the grant date until the next regularly scheduled quarterly grant date pursuant to Ambac’s director compensation program. As of December 31, 2021, 837,070 RSUs remained outstanding, of which (i) 504,764 units required future service as a condition to the delivery of the underlying shares of common stock and (ii) 332,306 units do not require future service and are deferred for future settlement. As of December 31, 2020, 773,657 RSUs remained outstanding, of which (i) 345,302 units required future service as a condition to the delivery of the underlying shares of common stock, and (ii) 428,355 units did not require future service and were deferred for future settlement. A summary of RSU activity for 2021 is as follows: Shares Weighted Average Grant Date Fair Value Outstanding at beginning of period 773,657 $ 18.04 Granted 345,829 $ 17.39 Delivered or returned to plan (1) (280,672) $ 17.89 Forfeited (1,744) $ 18.34 Outstanding at end of period 837,070 $ 17.82 (1) When restricted stock unit awards issued by Ambac become taxable compensation to employees, shares may be withheld to cover the employee’s withholding taxes. For the year ended December 31, 2021, Ambac purchased 88,723 of shares from employees that settled restricted stock units to meet the required tax withholdings. Ambac’s closing share price on the grant date was used to estimate the fair value of the service condition based RSU on the grant date. The weighted average grant date fair value of RSUs granted during 2021, 2020 and 2019 was $17.39, $17.36 and $19.75, respectively. As of December 31, 2021, there was $5 of total unrecognized compensation costs related to unvested RSUs granted. These costs are expected to be recognized over a weighted average period of 1.7 years. The fair value for RSUs vested and delivered during the year ended December 31, 2021, 2020 and 2019 was $4, $4 and $4, respectively. Performance Stock Awards ("PSUs") Performance awards granted vest in 3 years and awards have components relative to performance at AFG, Xchange and AAC. Actual awards can payout 0% to 220% of the number of units granted. Under currently outstanding award agreements, performance will be evaluated as follows: • AFG performance, as it relates to the 2019 PSU awards, will be evaluated relative to cumulative earnings before interest, taxes, depreciation and amortization over the vesting period (exclusive of AAC and its subsidiaries' earnings), which is intended to reward participants for generating pre-tax income. • Xchange, as it relates to the 2021 PSU awards, will be evaluated relative to cumulative earnings before interest, taxes, depreciation and amortization over the vesting period. • AAC performance will be evaluated according to: (i) changes in AAC's assets relative to its insurance and financial obligations, which is intended to reward participants for increases in the relative value of AAC (2019 and 2020 PSU awards only) and (ii) reductions in watch list and adversely classified credits, which is intended to reward participants for de-risking the financial guarantee insured portfolio. • In 2019, a relative Total Shareholder Return modifier was added as an additional metric with respect to the LTIP award payouts. The modifier will cause the payout at the end of the performance period to be increased or decreased by 10% if AFG's stock performance compared to a peer group is at or above the 75th percentile or at or below the 25th percentile, respectively . Pursuant to the LTIP award agreements if (i) a termination occurs by reason of disability, an involuntary termination by the Company other than for “cause,” or "retirement," the recipient would be entitled to receive the PSU award which would only be payable at the end of the relevant performance period and based on the satisfaction of the performance conditions related to such award at the time of termination; and (ii) a termination occurred prior to the last day of the performance period by reason of death, the beneficiaries of the recipient would be entitled to receive the number of PSUs that the recipient would have been entitled to receive at a 100% overall payout multiple regardless of the outcome of any of the performance conditions. The current performance awards shall be settled within 75 days after the end of the performance period, including those with partial or accelerated vesting, subject to any deferrals made pursuant to the Stock Deferral Plan. A summary of PSU activity for 2021 is as follows: Shares Weighted Average Grant Date Fair Value Outstanding at beginning of period 844,514 $ 18.09 Granted (1) 396,202 18.12 Delivered (2) (804,217) 16.23 Forfeited (4,355) 19.10 Performance adjustment (3) 289,912 15.09 Outstanding at end of period 722,056 $ 18.97 (1) Represents performance share units at 100% of units granted for LTIP Awards. (2) Reflects the number of performance shares attributable to the performance goals attained over the completed performance period and for which service conditions have been met. When performance stock unit awards issued by Ambac become taxable compensation to employees, shares may be withheld to cover the employee’s withholding taxes. For the year ended December 31, 2021, Ambac purchased 276,777 of shares from employees that settled performance based restricted stock units to meet the required tax withholdings. (3) Represents the number of additional shares issued for awards granted in 2018 as a result of actual performance during the performance period. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases of Lessee Disclosure [Text Block] | 18. LEASES Ambac is the lessee and lessor for certain lease agreements further described below. Lessee information Ambac is the lessee in operating leases for corporate offices, a data center and equipment. Leases in effect at December 31, 2021, have remaining lease terms ranging from slightly over 2 years to 8 years. Certain of these leases include automatic renewal or early termination provisions. Ambac does not include these provisions in the determination of its lease liabilities and right-of-use assets unless exercise is considered reasonably certain. Lease costs are included in operating expenses on the Consolidated Statement of Total Comprehensive Income (Loss). The components of lease costs, net of sub-lessor income, is as follows: Year Ended December 31, 2021 2020 Operating lease cost $ 5 $ 4 Variable lease cost — — Sublease income (1) (1) Total lease cost $ 4 $ 4 Ambac is required to make variable lease payments under certain leases which primarily relates to variable costs of the lessor, such as taxes, insurance, maintenance and electricity. Supplemental information related to leases is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 5 $ 4 Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) — — Supplemental balance sheet information related to leases is as follows: December 31, 2021 2020 Operating leases: Operating lease right of use assets $ 23 $ 25 Operating lease liabilities 28 30 Weighted average remaining lease term: Operating leases 7.7 years 8.7 years Weighted average discount rate: Operating leases 7.7 % 7.7 % Operating lease right of use assets and operating lease liabilities are included in Other assets and Other liabilities, respectively, on the consolidated balance sheet. Future undiscounted lease payments, gross of sublease receipts, to be made are as follows: As of December 31, 2021 Operating Leases 2022 $ 5 2023 5 2024 5 2025 5 2026 4 Thereafter 14 Total lease payments 37 Less: imputed interest (9) Total $ 28 Lessor information Ambac is the lessor in one operating sublease of corporate office space which has a remaining term of 8.0 years. There are no extension or termination provisions. Future undiscounted lease payments to be received are as follows: As of December 31, 2021 Operating Leases 2022 $ 1 2023 1 2024 1 2025 1 2026 1 Thereafter 4 Total lease receipts $ 10 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. COMMITMENTS AND CONTINGENCIES Litigation Against Ambac Monterey Bay Military Housing, LLC, et al. v. Ambac Assurance Corporation, et al. (United States District Court, Southern District of New York, Case No. 1:19-cv-09193-PGG, transferred on October 4, 2019 from the United States District Court, Northern District of California, San Jose Division, Case No. 17-cv-04992-BLF, filed August 28, 2017). Plaintiffs, the corporate developers of various military housing projects, filed an amended complaint on October 27, 2017 against AAC, a former employee of AAC, and certain unaffiliated persons and entities, asserting claims for (i) violation of 18 U.S.C §§ 1962(c) and 1962(d) (civil Racketeer Influenced and Corrupt Organizations Act (“RICO”) and conspiracy to commit civil RICO), (ii) breach of fiduciary duty, (iii) aiding and abetting breach of fiduciary duty, (iv) fraudulent misrepresentation, (v) fraudulent concealment and (vi) conspiracy to commit fraud. The claims relate to bonds and debt certificates (insured by AAC) that were issued to finance the renovation and construction of housing at certain military bases. Plaintiffs allege that defendants secretly conspired to overcharge plaintiffs for the financing of the projects and directed the excess profits to themselves. Plaintiffs allege defendants generated these excess profits by supposedly charging inflated interest rates, manipulating “shadow ratings,” charging unnecessary fees, and hiding evidence of their alleged wrongdoing. Plaintiffs seek, among other things, compensatory damages, disgorgement of profits and fees, punitive damages, trebled damages and attorneys’ fees. AAC and the other defendants filed motions to dismiss the amended complaint on November 13, 2017. On July 17, 2018, the court granted AAC’s and the other defendants’ motion to dismiss the first amended complaint without prejudice. On December 17, 2018, Plaintiffs filed a second amended complaint. On February 15, 2019, AAC and the other defendants filed a motion to dismiss the second amended complaint. On September 26, 2019, the court issued a decision denying defendants’ motion to dismiss and sua sponte reconsidering its previous denial of defendants’ motion to transfer venue to the Southern District of New York (“SDNY”). On October 10, 2019, after the case was transferred to the SDNY, the defendants filed motions to vacate or reconsider the decision by the Northern District of California on the defendants’ motion to dismiss. On March 31, 2021, the court granted defendants’ motions for reconsideration and, upon reconsideration, dismissed the claims against AAC and its former employee for breach of fiduciary duty and for aiding and abetting breach of AAC’s or its former employee’s fiduciary duty; dismissed two plaintiffs’ RICO claims against AAC and its former employee; and in all other respects denied defendants’ motions. Defendants served answers to the second amended complaint on April 21, 2021, asserting several affirmative defenses, including a defense for unclean hands focused on the plaintiffs’ failure to maintain the project properties and falsification of maintenance records. On May 24, 2021, plaintiffs moved to strike defendants’ unclean hands defenses. On September 14, 2021, Magistrate Judge Sarah L. Cave, to whom plaintiffs’ motion to strike was referred for a Report and Recommendation, issued an opinion and order denying plaintiffs’ motion. Financial Oversight and Management Board for Puerto Rico, et al. v. Autonomy Master Fund Limited, et al. (United States District Court, District of Puerto Rico, No. 19-ap-00291, filed May 2, 2019). On May 2, 2019, the Financial Oversight and Management Board for Puerto Rico (the "Oversight Board"), together with the Official Committee of Unsecured Creditors for the Commonwealth (the "Committee") filed an adversary proceeding against certain parties that filed proofs of claim on account of general obligation bonds issued by the Commonwealth of Puerto Rico, including AAC. The complaint seeks declarations that the general obligation bonds are unsecured obligations and, in the alternative, seeks to avoid any security interests that holders of such bonds may have. On June 12, 2019, a group of general obligation bondholders moved to dismiss the complaint. On June 13, 2019, at the request of the Plaintiffs, the District Court stayed the case until September 1, 2019 as to all defendants; on July 24, 2019, the District Court referred this matter to mediation and ordered it stayed during the pendency of such mediation. AAC filed a statement of position and reservation of rights on February 5, 2020; certain other defendants filed motions to dismiss on this same date. On February 9, 2020, the Oversight Board announced that it intended to file, and to seek to confirm, an amended plan of adjustment (the “Commonwealth Plan”). On March 10, 2020, the District Court ordered that this case remain stayed while the Oversight Board attempted to confirm the Commonwealth Plan. Financial Oversight and Management Board for Puerto Rico, et al. v. Ambac Assurance Corporation, et al. (United States District Court, District of Puerto Rico, No. 19-ap-00363, filed May 20, 2019). On May 20, 2019, the Oversight Board, together with the Committee, as Plaintiffs, filed an adversary proceeding against certain parties that filed proofs of claim on account of bonds issued by the Puerto Rico Highways and Transportation Authority ("PRHTA"), including AAC. The complaint seeks declarations that the PRHTA bonds are only secured by revenues on deposit with the PRHTA Fiscal Agent and that PRHTA bondholders have no security interest in any other property of PRHTA or the Commonwealth, and in the alternative, to the extent such other security interests exist, the complaint seeks to avoid other security interests that holders of PRHTA bonds may have. On June 14, 2019, at the request of the Plaintiffs, the District Court stayed the case until September 1, 2019 as to all defendants; on July 24, 2019, the District Court referred this matter to mediation and ordered it stayed during the pendency of such mediation. On December 19, 2019, the District Court ordered that this matter remain stayed pending further order of the District Court pursuant to the Oversight Board’s initiation of a separate adversary proceeding concerning PRHTA bonds (No. 20-ap-00005, discussed below). Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00003, filed Jan. 16, 2020). On January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by the Puerto Rico Infrastructure Financing Authority (“PRIFA”) and the PRIFA bond trustee, all of which defendants filed proofs of claim against the Commonwealth relating to PRIFA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. On February 27, 2020, defendants filed motions to dismiss. On March 10, 2020, the District Court stayed the motions to dismiss and authorized the Oversight Board to move for summary judgment, which motion defendants opposed. On May 5, 2021, monoline defendants Assured Guaranty Corporation, Assured Guaranty Municipal Corporation (“Assured”), and National Public Finance Guarantee Corporation (“National”) announced an agreement with the Oversight Board with respect to the treatment of bonds issued by PRHTA and the Puerto Rico Convention Center District Authority (“PRCCDA”) (the “PRHTA/PRCCDA Settlement”). On July 14, 2021, AAC and Financial Guaranty Insurance Company (“FGIC”) reached an agreement in principle with the Oversight Board with respect to the treatment of bonds issued by the Puerto Rico Infrastructure Financing Authority ("PRIFA") (the “PRIFA Settlement”), and as a result of that settlement, also joined the PRHTA/PRCCDA Settlement. On August 2, 2021, the Oversight Board, AAC, FGIC, and the PRIFA bond trustee jointly moved to stay this case as a result of the PRIFA Settlement and AAC’s joinder to the PRHTA/PRCCDA Settlement and the settlement related to general obligation and PBA bonds (“GO/PBA Settlement”). On August 3, 2021, the District Court ordered that this case be stayed. Following the filing of several revised versions of the Commonwealth Plan, the Court held a confirmation hearing in November 2021. On January 18, 2022, the Court entered an order confirming the Commonwealth Plan, as amended, and entered its findings of fact and conclusions of law related thereto. The Commonwealth Plan resolves the issues raised in this adversary proceeding. Following confirmation of the Commonwealth Plan, several parties filed notices of appeal of the District Court’s confirmation order to the First Circuit Court of Appeals. On February 1, 2022, Federación de Maestros de Puerto Rico, Inc., Grupo Magisterial Educadores(as) por la Democracia, Unidad, Cambio, Militancia y Organización Sindical, Inc., and Unión Nacional de Educadores y Trabajadores de la Educación, Inc. (collectively, the “Teachers’ Unions”) moved for a stay of the confirmation order while the appeal is pending, and on February 4, 2022, Asociación Puertorriqueña de la Judicatura, Inc. (“APJ”) and a number of credit unions (the “Credit Unions”) also filed motions for a stay pending appeal. On February 9 and February 11, 2022, a number of parties—including AAC—filed oppositions to the stay motions, requesting, in the alternative, that the appealing parties seeking a stay be required to post supersedeas bonds pending appeal. On February 11, 2022, the District Court entered an order granting APJ’s motion for voluntary dismissal of its appeal. The District Court has taken the remaining stay motions on submission. On February 17, 2022, the Oversight Board filed a notice of appeal of the District Court’s confirmation order, seeking review of the District Court’s finding regarding the nondischargeability of certain claims arising under the Takings Clause of the U.S. Constitution. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00004, filed Jan. 16, 2020). On January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by the PRCCDA and the PRCCDA bond trustee, all of which defendants filed proofs of claim against the Commonwealth relating to PRCCDA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. On February 27, 2020, defendants filed motions to dismiss. On March 10, 2020, the District Court stayed the motions to dismiss and authorized the Oversight Board to move for summary judgment, which motion defendants opposed. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. On July 14, 2021, AAC and FGIC reached an agreement in principle with the Oversight Board with respect to the PRIFA Settlement. On August 2, 2021, the Oversight Board, AAC, FGIC, and the PRCCDA bond trustee jointly moved to stay this case as a result of the PRIFA Settlement and AAC’s joinder to the PRHTA/PRCCDA Settlement and the GO/PBA Settlement. On August 3, 2021, the District Court ordered that this case be stayed. Following the filing of several revised versions of the Commonwealth Plan, the Court held a confirmation hearing in November 2021. On January 18, 2022, the Court entered an order confirming the Commonwealth Plan, as amended, and entered its findings of fact and conclusions of law related thereto. The Commonwealth Plan resolves the issues raised in this adversary proceeding. Following confirmation of the Commonwealth Plan, several parties filed notices of appeal of the District Court’s confirmation order to the First Circuit Court of Appeals. On February 1 and 4, 2022, the Teachers’ Unions, APJ, and the Credit Unions moved for a stay of the confirmation order while this appeal is pending. On February 9 and February 11, 2022, a number of parties—including AAC—filed oppositions to the stay motions, requesting, in the alternative, that the appealing parties seeking a stay be required to post supersedeas bonds pending appeal. On February 11, 2022, the District Court entered an order granting APJ’s motion for voluntary dismissal of its appeal. The District Court has taken the remaining stay motions on submission. On February 17, 2022, the Oversight Board filed a notice of appeal of the District Court’s confirmation order, seeking review of the District Court’s finding regarding the nondischargeability of certain claims arising under the Takings Clause of the U.S. Constitution. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00005, filed Jan. 16, 2020). On January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by PRHTA, certain PRHTA bondholders, and the PRHTA fiscal agent for bondholders, all of which defendants filed proofs of claim against the Commonwealth relating to PRHTA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. On February 27, 2020, defendants filed motions to dismiss. On March 10, 2020, the District Court stayed the motions to dismiss and authorized the Oversight Board to move for summary judgment, which motion defendants opposed. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. On July 14, 2021, AAC and FGIC reached an agreement in principle with the Oversight Board with respect to the PRIFA Settlement. On August 2, 2021, the Oversight Board, AAC, FGIC, and the PRHTA fiscal agent jointly moved to stay this case as a result of the PRIFA Settlement and AAC’s joinder to the PRHTA/PRCCDA Settlement and the GO/PBA Settlement. On August 3, 2021, the District Court ordered that this case be stayed. Following the filing of several revised versions of the Commonwealth Plan, the Court held a confirmation hearing in November 2021. On January 18, 2022, the Court entered an order confirming the Commonwealth Plan, as amended, and entered its findings of fact and conclusions of law related thereto. The Commonwealth Plan resolves the issues raised in this adversary proceeding. Following confirmation of the Commonwealth Plan, several parties filed notices of appeal of the District Court’s confirmation order to the First Circuit Court of Appeals. On February 1 and 4, 2022, the Teachers’ Unions, APJ, and the Credit Unions moved for a stay of the confirmation order while this appeal is pending. On February 9 and February 11, 2022, a number of parties—including AAC—filed oppositions to the stay motions, requesting, in the alternative, that the appealing parties seeking a stay be required to post supersedeas bonds pending appeal. On February 11, 2022, the District Court entered an order granting APJ’s motion for voluntary dismissal of its appeal. The District Court has taken the remaining stay motions on submission. On February 17, 2022, the Oversight Board filed a notice of appeal of the District Court’s confirmation order, seeking review of the District Court’s finding regarding the nondischargeability of certain claims arising under the Takings Clause of the U.S. Constitution. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00007, filed Jan. 16, 2020). On January 16, 2020, the Oversight Board and the Committee filed an adversary proceeding against monoline insurers insuring bonds issued by PRHTA, certain PRHTA bondholders, and the PRHTA fiscal agent for bondholders, all of which defendants filed proofs of claim against PRHTA relating to PRHTA bonds. The complaint seeks to disallow portions of defendants’ proofs of claim against the PRHTA, including for lack of secured status. On March 10, 2020, the District Court stayed this case. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. On July 14, 2021, AAC and FGIC reached an agreement in principle with the Oversight Board with respect to the PRIFA Settlement. On August 2, 2021, the Oversight Board, AAC, FGIC, and the PRHTA fiscal agent jointly moved to stay this case as a result of the PRIFA Settlement. On August 3, 2021, the District Court ordered that this case be stayed. Following the filing of several revised versions of the Commonwealth Plan, the Court held a confirmation hearing in November 2021. On January 18, 2022, the Court entered an order confirming the Commonwealth Plan, as amended, and entered its findings of fact and conclusions of law related thereto. The Commonwealth Plan resolves the issues raised in this adversary proceeding. Following confirmation of the Commonwealth Plan, several parties filed notices of appeal of the District Court’s confirmation order to the First Circuit Court of Appeals. On February 1 and 4, 2022, the Teachers’ Unions, APJ, and the Credit Unions moved for a stay of the confirmation order while this appeal is pending. On February 9 and February 11, 2022, a number of parties—including AAC—filed oppositions to the stay motions, requesting, in the alternative, that the appealing parties seeking a stay be required to post supersedeas bonds pending appeal. On February 11, 2022, the District Court entered an order granting APJ’s motion for voluntary dismissal of its appeal. The District Court has taken the remaining stay motions on submission. On February 17, 2022, the Oversight Board filed a notice of appeal of the District Court’s confirmation order, seeking review of the District Court’s finding regarding the nondischargeability of certain claims arising under the Takings Clause of the U.S. Constitution. AmeriNational Community Services, LLC, et al. v. Ambac Assurance Corporation, et al. (United States District Court, District of Puerto Rico, No. 21-ap-00068, filed June 26, 2021). On June 26, 2021, AmeriNational Community Services, LLC, and Cantor-Katz Collateral Monitor LLC, as servicer and collateral monitor (respectively) for the GDB Debt Recovery Authority (the “DRA”), filed an adversary proceeding against AAC and other monoline insurers of PRHTA bonds, holders of, PRHTA bonds, and the PRHTA bond trustee. The complaint sought declaratory judgments regarding the DRA’s rights with respect to certain revenues pledged as collateral for PRHTA bonds, and asserted that the DRA is the only party with a right to collect from and a security interest in certain such revenues. On August 26, 2021, the monoline insurers filed their motion to dismiss the DRA parties’ complaint, as well as their answer and counterclaims. On October 19, 2021, the DRA parties filed a motion to dismiss the monolines’ counterclaims. On October 29, 2021, the District Court entered an order granting the monolines’ motion to dismiss all counts in the DRA parties’ complaint. On November 2, 2021, the monolines voluntarily withdrew their counterclaims without prejudice. On November 4, 2021, the District Court entered an amended judgment closing the adversary proceeding. On November 5, 2021, the Oversight Board filed a motion notifying the court of its settlement with the DRA parties. The stipulation attached to the motion provided, among other things, that the DRA parties would not take any appeals of the court’s order dismissing their complaint, and would support the Commonwealth Plan, the PRCCDA Title VI Qualifying Modification, and the forthcoming HTA Plan of Adjustment (the "PRHTA Plan"). NC Residuals Owners Trust, et al. v. Wilmington Trust Co., et al. (Delaware Court of Chancery, C.A. No. 2019-0880, filed Nov. 1, 2019). On November 1, 2019, AAC became aware of a new declaratory judgment action filed by certain residual equity interest holders (“NC Owners” or “Plaintiffs”) in fourteen National Collegiate Student Loan Trusts (the “Trusts”) against Wilmington Trust Company, the Owner Trustee for the Trusts; U.S. Bank National Association, the Indenture Trustee; GSS Data Services, Inc., the Administrator; and AAC. Through this action, Plaintiffs seek a number of judicial determinations. On January 21, 2020, the presiding Vice Chancellor entered an order consolidating the action with previously filed litigation relating to the Trusts. On February 13, 2020, AAC, the Owner Trustee, the Indenture Trustee, and other parties filed declaratory judgment counterclaims. Several parties, including Plaintiffs and AAC, filed motions for judgment on the pleadings in support of their requested judicial determinations. On August 27, 2020, the Vice Chancellor issued an opinion addressing all of the pending motions for judgment on the pleadings, which granted certain of the parties’ requested judicial determinations and denied others. He deferred judgment on still other declarations pending further factual development. On January 31, 2022, the Vice Chancellor entered a thirty-day stay to facilitate good-faith settlement discussions. AAC’s estimates of projected losses for RMBS transactions consider, among other things, the RMBS transactions’ payment waterfall structure, including the application of interest and principal payments and recoveries, and depend in part on our interpretations of contracts and other bases of our legal rights. From time to time, bond trustees and other transaction participants have employed different contractual interpretations and have commenced, or threatened to commence, litigation to resolve these differences. It is not possible to predict whether additional disputes will arise, nor the outcomes of any potential litigation. It is possible that there could be unfavorable outcomes in this or other disputes or proceedings and that our interpretations may prove to be incorrect, which could lead to changes to our estimate of loss reserves. AAC has periodically received various regulatory inquiries and requests for information with respect to investigations and inquiries that such regulators are conducting. AAC has complied with all such inquiries and requests for information. The Company is involved from time to time in various routine legal proceedings, including proceedings related to litigation with present or former employees. Although the Company’s litigation with present or former employees is routine and incidental to the conduct of its business, such litigation can result in large monetary awards when a civil jury is allowed to determine compensatory and/or punitive damages for, among other things, termination of employment that is wrongful or in violation of implied contracts. From time to time, Ambac is subject to allegations concerning its corporate governance that may lead to litigation, including derivative litigation, and while the monetary impacts may not be material, the matters may distract management and the Board of Directors from their principal focus on Ambac's business, strategy and objectives. It is not reasonably possible to predict whether additional suits will be filed or whether additional inquiries or requests for information will be made, and it is also not possible to predict the outcome of litigation, inquiries or requests for information. It is possible that there could be unfavorable outcomes in these or other proceedings. Legal accruals for litigation against the Company which are probable and reasonably estimable, and management's estimated range of loss for such matters, are either not applicable or are not material to the operating results or financial position of the Company. For the litigation matters the Company is defending that do not meet the “probable and reasonably estimable” accrual threshold and where no loss estimates have been provided above, management is unable to make a meaningful estimate of the amount or range of loss that could result from unfavorable outcomes. Under some circumstances, adverse results in any such proceedings could be material to our business, operations, financial position, profitability or cash flows. The Company believes that it has substantial defenses to the claims above and, to the extent that these actions proceed, the Company intends to defend itself vigorously; however, the Company is not able to predict the outcomes of these actions. Litigation Filed or Joined by Ambac In the ordinary course of their businesses, certain of Ambac’s subsidiaries assert claims in legal proceedings against third parties to recover losses already paid and/or mitigate future losses. The amounts recovered and/or losses avoided which may result from these proceedings is uncertain, although recoveries and/or losses avoided in any one or more of these proceedings during any quarter or fiscal year could be material to Ambac’s results of operations in that quarter or fiscal year. Student Loans Exposure CFPB v. Nat’l Collegiate Master Student Loan Trust (United States District Court, District of Delaware, Case No. 1:17-cv-01323, filed September 18, 2017). The Consumer Financial Protection Bureau (“CFPB”) filed a complaint against fifteen National Collegiate Student Loan Trusts, regarding alleged improprieties and deficiencies in servicing practices. Simultaneous with the filing of its complaint, CFPB also filed a motion to approve a proposed consent judgment that would have granted monetary damages and injunctive relief against the Trusts. AAC guaranteed certain securities issued by three of the Trusts and indirectly insures six other Trusts. On September 20, 2017, AAC filed a motion to intervene in the action, which motion was granted on October 19, 2018. Following discovery and briefing, on May 31, 2020, the District Court denied the CFPB’s motion to approve the proposed consent judgment. On March 19, 2020, Intervenor Transworld Systems Inc. filed a motion to dismiss the action for lack of subject matter jurisdiction. On July 10, 2020, AAC and several other intervenors filed a motion to dismiss the action for lack of subject matter jurisdiction and for failure to state a claim. On July 2, 2020, the CFPB submitted an application for entry of default against the Trusts. AAC and the Owner Trustee opposed the CFPB’s application. On March 26, 2021, the court granted intervenors’ motion to dismiss for failure to state a claim and denied the motion to dismiss for lack of subject matter jurisdiction. The court also denied as moot the CFPB’s application for entry of default against the Trusts. The CFPB filed an amended complaint on April 30, 2021. On May 21, 2021, the Trusts and several intervenors, including AAC, moved to dismiss the CFPB’s amended complaint for failure to state a claim. On December 13, 2021, the court denied the Trusts' and intervenors' motions to dismiss the amended complaint. On December 23, 2021, the Trusts and several intervenors, including AAC, filed a motion seeking (i) an order certifying for interlocutory appeal the court’s December 13, 2021 order denying the motion to dismiss the amended complaint, and (ii) a stay of the action pending resolution of any appeal. The motion is fully briefed and remains pending. On January 26, 2022, the Trusts and several intervenors, including AAC, answered the CFPB’s amended complaint, asserting several affirmative defenses and denying that the CFPB is entitled to relief from the Trusts. On February 11, 2022, the court certified its ruling on the motion to dismiss for interlocutory appeal to the U.S. Court of Appeals for the Third Circuit, and stayed the case pending appeal. The Trusts and several intervenors, including AAC, filed a petition for permission to appeal with the Third Circuit on February 21, 2022. Nat’l Collegiate Master Student Loan Trust v. Pa. Higher Education Assistance Agency (PHEAA) (Delaware Court of Chancery, C.A. No. 12111-VCS, filed March 21, 2016). Plaintiffs purporting to act on behalf of fifteen National Collegiate Student Loan Trusts filed a lawsuit against PHEAA, a servicer of loans in the Trusts, alleging improprieties and deficiencies in servicing practices and seeking an order compelling PHEAA to submit to an emergency audit. AAC guaranteed certain securities issued by three of the Trusts and indirectly insures certain securities in six other Trusts. The Owner Trustee of the Trusts, Wilmington Trust Company, WTC, citing irreconcilable differences with Plaintiffs, resigned from its role as Owner Trustee and moved on August 21, 2017 for appointment of a successor Owner Trustee. AAC filed a motion to intervene in the action on October 23, 2017, for the limited purpose of being heard regarding the appointment of a successor Owner Trustee and regarding WTC’s contractual commitment and obligation to remain in that role until such appointment is made. The court granted AAC’s motion to intervene on April 10, 2018 and AAC filed its complaint in intervention on April 16, 2018. On January 21, 2020, Vice Chancellor Slights entered an order consolidating the action with later-filed litigation pending in Delaware Chancery Court relating to the Trusts, including a declaratory judgment action in which AAC was named as a defendant, NC Residuals Owners Trust, et al. v. Wilmington Trust Co., et al. (Del. Ct. Ch., C.A. No. 2019-0880, filed Nov. 1, 2019). Puerto Rico Assured Guaranty Corp., Assured Guaranty Municipal Corp., and Ambac Assurance Corporation v. Alejandro Garcia Padilla, et al. (United States District Court, District of Puerto Rico No. 3:16-cv-01037, filed January 7, 2016). AAC, along with co-plaintiffs Assured Guaranty Corp. and Assured Guaranty Municipal Corp., filed a complaint for declaratory and injunctive relief to protect its rights against the illegal clawback of certain revenue by the Commonwealth of Puerto Rico. Defendants moved to dismiss on January 29, 2016. On October 4, 2016, the court denied the Defendants’ motions to dismiss. On October 14, 2016, Defendants filed a Notice of Automatic Stay, asserting that Plaintiffs’ claims have been rendered moot and further asserting that the case was automatically stayed under section 405 of the Puerto Rico Oversight, Management and Economic Stability Act ("PROMESA"). On October 28, 2016, Plaintiffs informed the court that neither party was currently challenging the stay, and expressly reserved their right to seek to lift the stay at any time. Plaintiffs also objected to Defendants’ assertion that the case should be dismissed as moot. PROMESA’s litigation stay expired on May 2, 2017. On May 3, 2017, the Oversight Board filed a petition to adjust the Commonwealth’s debts under Title III of PROMESA, resulting in an automatic stay of litigation against the Commonwealth. On May 17, 2017, the court issued an order staying this case until further order of the court. Ambac Assurance Corporation v. Puerto Rico Highways and Transportation Authority (United States District Court, District of Puerto Rico, No. 16-cv-1893, filed May 10, 2016). AAC filed a complaint against the Puerto Rico Highways and Transportation Authority ("PRHTA") on May 10, 2016, alleging breach of fiduciary duty and breach of contract in connection with PRHTA’s extension of an existing toll road concession agreement. The complaint alleges that it was inappropriate for PRHTA to enter into the extension agreement in its current state of financial distress because PRHTA has no control over, and is unlikely to receive, the proceeds of the transaction. AAC also filed related motions seeking the appointment of a provisional receiver for PRHTA and expedited discovery. On May 21, 2017, the Oversight Board filed a petition to adjust PRHTA’s debts under Title III of PROMESA, resulting in an automatic stay of litigation against PRHTA. On May 24, 2017, the court issued an order staying this case until further order of the court. Ambac Assurance Corporation v. Puerto Rico, et al. (United States District Court, District of Puerto Rico, No. 17-1567, filed May 2, 2017). On May 2, 2017, AAC filed a complaint seeking a declaration that the Commonwealth’s Fiscal and Economic Growth Plan (the "FEGP") and a statute called the “Fiscal Plan Compliance Law” are unconstitutional and unlawful because they violate the Contracts, Takings, and Due Process Clauses of the U.S. Constitution, are preempted by PROMESA, and are unlawful transfers of property from COFINA to the Commo |
SEC Schedule, Article 12-04, Co
SEC Schedule, Article 12-04, Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II— CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) Condensed Balance Sheets ($ in millions, except share data) December 31, 2021 2020 Assets: Fixed maturity securities, at fair value (amortized cost: 2021—$130 and 2020—$76) $ 119 $ 66 Short-term investments, at cost (approximates fair value) 124 229 Other investments 11 54 Total investments (net of allowance for credit losses of: 2021— $3 and 2020 — $2) 254 349 Cash 1 7 Investment in subsidiaries 769 714 Investment income due and accrued 1 — Other assets 17 13 Total assets $ 1,041 $ 1,082 Liabilities and Stockholders' Equity: Liabilities: Current taxes $ 1 $ — Accounts payable and other liabilities 2 2 Total liabilities 3 3 Stockholders’ equity: Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none — — Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 46,477,068 and 45,865,081 — — Additional paid-in capital 257 242 Accumulated other comprehensive income (loss) 58 79 Retained earnings 726 759 Treasury stock, shares at cost: 172,929 and 55,942 (3) (1) Total Ambac Financial Group, Inc. stockholders’ equity 1,038 1,080 Total liabilities and stockholders’ equity $ 1,041 $ 1,082 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II— CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) Condensed Statement of Comprehensive Income ($ in millions) Year Ended December 31, 2021 2020 2019 Revenues: Investment income $ 10 $ 13 $ 19 Other income — (1) (2) Net investment gains (losses), including impairments (5) (1) (2) Total revenues 5 12 18 Expenses: Operating expenses 19 19 16 Total expenses 19 19 16 Income (loss) before income taxes and equity in undistributed net loss of subsidiaries (14) (7) 2 Federal income tax provision (benefit) 2 — (5) Income (loss) before net income (loss) of subsidiaries (16) (7) 7 Net loss of subsidiaries (1) (430) (223) Net income (loss) $ (17) $ (437) $ (216) Other comprehensive income (loss), after tax: Net income (loss) $ (17) $ (437) $ (216) Unrealized gains (losses) on securities, net of income tax provision (benefit) of $(2), $1 and $(8) (12) 15 65 Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $0, $0 and $0 (8) 23 26 Credit risk changes of fair value option liabilities, net of income tax provision (benefit) of $0, $0 and $0 (1) 1 — Changes to postretirement benefit, net of income tax provision (benefit) of $0, $0 and $0 (1) (3) (1) Total other comprehensive income (loss) (21) 37 91 Total comprehensive income (loss) attributable to Ambac Financial Group, Inc. $ (38) $ (400) $ (125) The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II— CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) Condensed Statement of Stockholders' Equity ($ in millions) Total Retained Earnings Accumulated Other Comprehensive Income Preferred Stock Common Stock Additional Paid-in Capital Common Stock Held in Treasury, at Cost Balance at January 1, 2019 $ 1,592 $ 1,421 $ (49) $ — $ — $ 219 $ — Total comprehensive income (loss) (125) (216) 91 — — — — Stock-based compensation 12 — — — — 12 — Cost of shares (acquired) issued under equity plan (3) (3) — — — — — Balance at December 31, 2019 $ 1,477 $ 1,203 $ 42 $ — $ — $ 232 $ — Total comprehensive income (loss) (400) (437) 37 — — — — Adjustment to initially apply ASU 2016-13 (4) (4) — — — — — Stock-based compensation 11 — — — — 11 — Cost of shares (acquired) issued under equity plan (3) (2) — — — — (1) Balance at December 31, 2020 $ 1,080 $ 759 $ 79 $ — $ — $ 242 $ (1) Total comprehensive income (loss) (38) (17) (21) — — — — Stock-based compensation 14 — — — — 14 — Cost of shares (acquired) issued under equity plan (6) (4) — — — — (2) Change in redeemable noncontrolling interest (12) (12) — — — — — Balance at December 31, 2021 $ 1,038 $ 726 $ 58 $ — $ — $ 257 $ (3) The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES SCHEDULE II— CONDENSED FINANCIAL INFORMATION OF REGISTRANT (PARENT COMPANY ONLY) Condensed Statements of Cash Flow ($ in millions) Year Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income (loss) $ (17) $ (437) $ (216) Adjustments to reconcile net income loss to net cash used in operating activities: Equity in undistributed net (income) loss of subsidiaries 1 423 223 Amortization of bond premium and discount (9) (6) (6) Net realized gains 5 1 2 Increase (decrease) in current income taxes payable 1 30 15 Share-based compensation 14 11 12 (Increase) decrease in other assets and liabilities (5) (1) (8) Distributions received from majority owned subsidiary 6 — — Other, net (6) (10) (6) Net cash provided by (used in) operating activities (10) 11 16 Cash flows from investing activities: Proceeds from sales and matured bonds 33 46 86 Purchases of bonds (34) (45) (2) Change in short-term investments 105 89 (125) Change in other investments (8) — — Sale of auction market preferred shares of Ambac Assurance — — 19 Acquisition of Xchange, net of cash acquired — (74) — Net cash provided by (used in) investing activities 95 16 (22) Cash flows from financing activities: Capital contribution to subsidiaries (92) (29) — Net cash (used in) financing activities (92) (29) — Net cash flow (6) (2) (6) Cash at beginning of period 7 9 15 Cash at end of period $ 1 $ 7 $ 9 Supplemental disclosure of cash flow information: Cash paid during the period for: Income taxes $ — $ — $ 1 The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Operating Leased Assets [Line Items] | |
Consolidation | Consolidation The consolidated financial statements include the accounts of AFG and all other entities in which AFG (directly or through its subsidiaries) has a controlling financial interest, including variable interest entities (“VIEs”) for which AFG or an AFG subsidiary is deemed the primary beneficiary in accordance with the Consolidation Topic of the Accounting Standards Codification ("ASC"). All significant intercompany balances have been eliminated. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. A VIE is an entity: a) that lacks enough equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; or b) where the group of equity holders does not have: (1) the power, through voting rights or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb the entity’s expected losses; or (3) the right to receive the entity’s expected residual returns. The determination of whether a variable interest holder is the primary beneficiary involves performing a qualitative analysis of the VIE that includes, among other factors, its capital structure, contractual terms including the rights of each variable interest holder, the activities of the VIE, whether the variable interest holder has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, whether the variable interest holder has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, related party relationships and the design of the VIE. An entity that is deemed the primary beneficiary of a VIE is required to consolidate the VIE. Refer to Note 11. Variable Interest Entities |
Unconsolidated Financial Information | AFG Unconsolidated Financial InformationFinancial information of AFG is presented in Schedule II to this Form 10-K as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020 and 2019. Investments in subsidiaries are accounted for using the equity method of accounting in Schedule II. |
Financing Receivable, Allowance for Credit Losses, Policy for Uncollectible Amounts | Measurement of Credit Losses on Financial Instruments (CECL) On January 1, 2020 Ambac adopted ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments, subsequently amended by ASU 2018-19 , Codification Improvements to Topic 326, Financial Instruments - Credit Losses; ASU 2019-04 , Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ; ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief ; and ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses (collectively the Current Expected Credit Loss standard or "CECL"). The CECL standard affects how reporting entities measure credit losses for financial assets that are not accounted for at fair value through net income. For Ambac, these financial assets include available-for-sale debt securities and amortized cost assets, specifically premium receivables, reinsurance recoverables and loans. CECL does not apply to subrogation recoveries of previously paid and unpaid losses on insurance contracts accounted for under ASC 944 nor does it apply to equity method investments accounted for under ASC 323. • For available-for-sale debt securities, credit losses under CECL are measured similarly to other-than-temporary impairments under prior GAAP. The updated guidance was applied prospectively. • For financial instruments measured at amortized cost, CECL replaces the "incurred loss" model, which generally delayed recognition of the full amount of credit losses until the loss was probable of occurring, with an "expected loss" model, which reflects an entity's current estimate of all expected lifetime credit losses. The estimate of expected lifetime credit losses should consider historical information, current information, as well as reasonable and supportable forecasts. Expected lifetime credit losses for amortized cost assets will be recorded as an allowance for credit losses, with subsequent increases or decreases in the allowance reflected in net income each period. The updated guidance was applied by a cumulative effect adjustment to the opening balance of retained earnings at January 1, 2020. This adjustment was not material to retained earnings |
Investments | Investments The Investments - Debt Securities Topic of the ASC requires that all debt instruments be classified in Ambac’s Consolidated Balance Sheets according to their purpose and, depending on that classification, be carried at either cost or fair market value. Ambac’s non-VIE debt investment portfolio is accounted for on a trade-date basis and consists primarily of investments in fixed maturity securities that are considered available-for-sale as defined by the Investments - Debt Securities Topic of the ASC. Available-for-sale debt securities are reported in the financial statements at fair value with unrealized gains and losses, net of deferred taxes, reflected in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity and computed using amortized cost as the basis. For purposes of computing amortized cost, premiums and discounts are accounted for using the effective interest method over a term of the security. For structured debt securities with a large underlying pool of homogenous loans, such as mortgage-backed and asset-backed securities, premiums and discounts are adjusted for the effects of actual and anticipated prepayments. For other fixed maturity securities, such as corporate and municipal bonds, discounts are amortized or accreted over the remaining term of the securities and premiums are amortized to the earliest call date. Ambac’s non-VIE investment portfolio also includes equity interests in pooled investment funds which are accounted for in accordance with the Investments - Equity Securities Topic of the ASC and reported as Other investments on the Consolidated Balance Sheet with income reported through Net investment income on the Statement of Total Comprehensive Income (Loss). Equity interests in the form of common stock or in-substance common stock are classified as trading securities and reported at fair value while limited partner interests in such funds are reported using the equity method. Fair value is based primarily on quotes obtained from independent market sources. When quotes for fixed maturity securities are not available or cannot be reasonably corroborated, valuation models are used to estimate fair value. These models include estimates, made by management, which utilize current market information. When fair value is not readily determinable for pooled investment funds, the investments are valued using net asset value ("NAV") as a practical expedient as permitted under the Fair Value Measurement Topic of the ASC. Investment valuations could differ materially from amounts that would actually be realized in the market. Realized gains and losses on the sale of investments are determined on the basis of specific identification. Refer to Note 5. Fair Value Measurements for further description of the methodologies used to determine the fair value of investments, including model inputs and assumptions where applicable. VIE investments in fixed maturity securities are carried at fair value as they are either considered as available for sale securities or under the fair value option election. For additional information about VIE investments, including fair value by asset-type, see Note 11. Variable Interest Entities . Ambac has a formal credit impairment review process for fixed maturity available-for-sale securities in its investment portfolio. Ambac conducts a review each quarter to identify and evaluate investments that have indications of impairment in accordance with the Investments - Debt Securities Topic of the ASC. • Prior to the adoption of CECL, factors considered to identify and assess securities for other than temporary impairment included: (i) fair values that have declined by 20% or more below amortized cost; (ii) market values that have declined by 5% or more but less than 20% below amortized cost for a continuous period of at least six months; (iii) recent downgrades by rating agencies; (iv) the financial condition of the issuer and financial guarantor, as applicable, and an analysis of projected defaults on the underlying collateral; (v) whether scheduled interest payments are past due; (vi) whether Ambac has the intent to sell the security; and (vii) whether it is more likely than not that Ambac will be required to sell a security before the anticipated recovery of its amortized cost basis. If we believed a decline in the fair value of a particular investment is not credit-related, we recorded the decline as an unrealized loss net of tax in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity on our Consolidated Balance Sheets. If it was determined that a credit impairment existed, the credit impairment loss was recognized in earnings, and the other-than-temporary amount related to all other factors was recognized in other comprehensive income. For fixed maturity securities that had credit impairments in a period, the previous amortized cost of the security less the amount of the credit impairment recorded through earnings became the investment’s new amortized cost basis. Ambac accreted the new amortized cost basis to par or to the estimated future cash flows to be recovered over the expected remaining life of the security. • Under CECL, credit losses are evaluated and measured similarly, however the recognition of credit impairment losses for available-for-sale debt securities are recorded as an allowance for credit losses with an offsetting charge to net income, rather than as a direct write-down of the security as was required under prior GAAP. As a result, improvements to estimated credit losses for available-for-sale debt securities are recognized immediately in net income rather than as interest income over time. Furthermore, as required under CECL, Ambac no longer considers the length of time a security has continuously been in an unrealized loss in the credit impairment process. If we believe a decline in the fair value of a particular fixed maturity available-for-sale investment is not credit impaired, we record the decline as an unrealized loss net of tax in Accumulated Other Comprehensive Income (Loss) in Stockholders’ Equity on our Consolidated Balance Sheets. If management either: (i) has the intent to sell its investment in a debt security or (ii) determines that the Company more likely than not will be required to sell the debt security before its anticipated recovery of the amortized cost basis less any current period credit impairment, then an impairment charge is recognized in earnings, with the amortized cost of the security being written-down to fair value. The evaluation of securities for credit impairment is a quantitative and qualitative process, which is subject to risks and uncertainties and is intended to determine whether, and to what extent, declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions, the issuer’s or guarantor’s financial condition and/or future prospects, the impact of regulatory actions on the investment portfolio, the performance of the underlying collateral, the effects of changes in interest rates or credit spreads and the expected recovery period. With respect to Ambac insured securities owned, future cash flows used to measure credit impairment represents the sum of (i) the bond’s intrinsic cash flows and (ii) the estimated AAC claim payments. Ambac’s assessment about whether a decline in value is considered a credit impairment reflects management’s current judgment regarding facts and circumstances specific to a security and the factors noted above. If that judgment changes, Ambac may ultimately record a charge for credit impairment in future periods. Ambac has made certain accounting policy elections related to accrued interest receivable ("AIR") for available-for-sale investments under CECL, which are consistent with past practices under prior GAAP. Elections include: i) not measuring AIR for credit impairment, instead AIR is written off when it becomes 90 days past due; ii) writing off AIR by reversing interest income; iii) presenting AIR separately in Other Assets on the balance sheet and iv) excluding AIR from amortized cost balances in required CECL disclosures found in Note 4. Investments. AIR at December 31, 2021 and 2020 was $10 and $10, respectively. Refer to Note 4. Investments for further credit impairment disclosures. |
Net Premiums Earned | Premiums Financial Guarantee: Gross premiums were received either upfront or in installments. For premiums received upfront, an unearned premium revenue (“UPR”) liability was established, which was initially recorded as the cash amount received. For installment premium transactions, a premium receivable asset and offsetting UPR liability was initially established in an amount equal to: (i) the present value of future contractual premiums due (the “contractual” method) or (ii) if the underlying insured obligation is a homogenous pool of assets which are contractually prepayable, the present value of premiums to be collected over the expected life of the transaction (the “expected” method). An appropriate risk-free rate corresponding to the weighted average life of each policy and currency is used to discount the future premiums contractually due or expected to be collected. For example, U.S. dollar exposures are discounted using U.S. Treasury rates while exposures denominated in a foreign currency are discounted using the appropriate risk-free rate for the respective currency. The weighted average risk-free rate at December 31, 2021 and 2020, was 2.2%. and 2.2%, respectively, and the weighted average period of future premiums used to estimate the premium receivable at December 31, 2021 and 2020, was 8.0 years and 8.3 years, respectively. Insured obligations consisting of homogeneous pools for which Ambac uses expected future premiums to estimate the premium receivable include residential mortgage-backed securities ("RMBS"). As prepayment assumptions change for homogenous pool transactions, or if there is an actual prepayment for a “contractual” method installment transaction, the related premium receivable and UPR are adjusted in equal and offsetting amounts with no immediate effect on earnings using new premium cash flows and the then current risk-free rate corresponding to the initial weighted average life of the related policy. For both upfront and installment premium policies, premium revenues are earned over the life of the financial guarantee contract in proportion to the insured principal amount outstanding at each reporting date (referred to as the level-yield method). For installment paying policies, the premium receivable discount, equating to the difference between the undiscounted future installment premiums and the present value of future installment premiums, is accreted as premiums earned in proportion to the premium receivable balance at each reporting date. When a bond issue insured by Ambac has been retired early, typically due to an issuer call, any remaining UPR is recognized at that time to the extent the financial guarantee contract is legally extinguished, causing accelerated premium revenue. For installment premium paying transactions, we offset the recognition of any remaining UPR by the reduction of the related premium receivable to zero (as it will not be collected as a result of the retirement), which may cause negative accelerated premium revenue. Certain obligations insured by Ambac have been legally defeased whereby government securities are purchased by the issuer with the proceeds of a new bond issuance, or less frequently with other funds of the issuer, and held in escrow. The principal and interest received from the escrowed securities are then used to retire the Ambac-insured obligations at a future date either to their maturity date (a refunding) or a specified call date (a pre-refunding). Ambac has evaluated the provisions in policies issued on these obligations and determined those insurance policies have not been legally extinguished. For policies with refunding securities, premium revenue recognition is not impacted as the escrowed maturity date is the same as the previous legal maturity date. For policies with pre-refunding securities, the maturity date of the pre-refunded security has been shortened from its previous legal maturity. Although premium revenue recognition has not been accelerated in the period of the pre-refunding, it results in an increase in the rate at which the policy's remaining UPR is to be recognized. For financial guarantee contracts, the issuer's ability and willingness to pay its insured debt obligation impacts the payment of policy losses by Ambac as well as the receipt of premiums from the issuer. As such, management leverages its existing loss reserve estimation process to evaluate credit impairment for premium receivables. Key factors in assessing credit impairment include historical premium collection data, internal risk classifications, credit ratings and loss severities. For structured finance transactions involving special purpose entities, we further evaluate the priority of premiums paid to Ambac within the contractual waterfall, as required by bond indentures. Ambac has a formal quarterly credit impairment review process for premium receivables. • Prior to the adoption of CECL, Ambac assessed collectability of premium receivables in accordance with ASC 944 and recorded an allowance for uncollectible premiums. • Under CECL, management utilizes either a discounted cash flow ("DCF") or probability of default/loss given default ("PD/LGD") approach to estimate credit impairment. The DCF approach utilizes expected cash flows developed by Ambac's Risk Management Group using the same (or similar) models used for estimating loss reserves where such models can identify shortfalls in premiums. Credit impairment using the DCF approach is equal to the difference between amortized cost and the present value of expected cash flows. Credit impairment under the PD/LGD approach is the product of (i) the premium receivable carrying value, (ii) internally developed default probability (considering internal ratings and average life), and (iii) internally developed loss severities. Refer to Note 7. Insurance Contracts for further credit impairment disclosures. AAC has reinsurance in place pursuant to surplus share treaty and facultative reinsurance agreements. Similar to gross premiums, premiums ceded to reinsurers were paid either upfront or in installments. For premiums paid upfront, a deferred ceded premium asset was established which is initially recorded as the cash amount paid. For installment premiums, a ceded premiums payable liability and offsetting deferred ceded premium asset were initially established in an amount equal to: i) the present value of future contractual premiums due or ii) if the underlying insured obligation is a homogenous pool of assets, the present value of expected premiums to be paid over the life of the transaction. An appropriate risk-free rate corresponding to the weighted average life of each policy and exposure currency is used to discount the future premiums contractually due or expected to be collected. Premiums ceded to reinsurers reduce the amount of premiums earned by Ambac from its financial guarantee insurance policies. For both upfront and installment premiums, ceded premiums written are primarily recognized in earnings in proportion to and at the same time as the related gross premium revenue is recognized. For premiums paid to reinsurers on an installment basis, Ambac records the present value of future ceding commissions as an offset to ceded premiums payable, using the same assumptions noted above for installment premiums. Specialty P&C: Gross written premiums on Everspan insurance policies are recorded at the inception of the policy and can be received on an upfront basis or an installment basis. Ceded premiums written are based on contractual terms applied against related gross written premiums. Premiums, net of reinsurance, are recognized as revenue on a daily pro-rata basis over the term of the insured risk. Unearned premiums represents the portion of gross premiums written that relate to unexpired risk. Deferred ceded premium represents the portion of ceded premiums written that relate to unexpired risk. |
Loans | Loans Loans are reported at either their outstanding principal balance less unamortized discount or at fair value. • Loans not held by consolidated VIEs are reported at their outstanding principal balance less unamortized discount and are reported within Other assets on the Consolidated Balance Sheet. Interest income is earned using the effective interest method based upon interest accrued on the unpaid principal balance adjusted for accretion of discounts. A loan is considered impaired when, based on the financial condition of the borrower, it is probable that Ambac will be unable to collect all principal and interest due according to the contractual terms of the loan agreement. Under CECL, Ambac has a formal quarterly credit impairment review process for these loans. The key factors in assessing credit impairment are internal credit ratings and loss severities. Management utilizes a PD/LGD approach, similar to the one described above for financial guarantee premium receivables, which is applied to the loan carrying value. • Loans held by VIEs consolidated as required under the Consolidation Topic of the ASC are carried at fair value under the fair value option election with changes in fair value recorded in Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). Such loans are reported as Loans, at fair value within the Variable interest entity assets section of the Consolidated Balance Sheet. |
Derivative Contracts | Derivative Contracts The Company has entered into derivative contracts primarily to hedge certain economic risks inherent in its asset and liability portfolios. None of Ambac’s derivative contracts are designated as hedges under the Derivatives and Hedging Topic of the ASC. Ambac's derivatives consist primarily of interest rate swaps and futures contracts. • Ambac maintains a portfolio consisting primarily of interest rate swaps and futures contracts to economically hedge interest rate risk in the financial guarantee and investment portfolios. While this portfolio also includes certain legacy interest rate swaps executed in connection with financial guarantee client financings, the interest rate derivatives portfolio is managed on the basis of its net sensitivity to changes in interest rates. Changes in the fair value of these interest rate derivatives are recorded, along with changes in fair value of Ambac's remaining credit derivatives, within Net gains (losses) on derivative contracts on the Consolidated Statements of Total Comprehensive Income (Loss). • VIEs consolidated under the Consolidation Topic of the ASC entered into derivative contracts to meet specified purposes within their securitization structure. Changes in fair value of consolidated VIE derivatives are included within Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). All derivatives are recorded on the Consolidated Balance Sheets at fair value on a gross basis; assets and liabilities are netted by counterparty only when a legal right of offset exists. Variation payments on centrally cleared swaps and futures contracts are considered settlements of the associated derivative balances and are reflected as a reduction to derivative liabilities or assets on the Consolidated Balance Sheets. For other derivatives, Ambac has determined that the amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral may not be used to offset amounts due under the derivative instruments in the normal course of settlement. Therefore, such amounts are not offset against fair value amounts recognized for derivative instruments executed with the same counterparty under the same master netting arrangement and are included in Other assets on the Consolidated Balance Sheets. Refer to Note 9. Derivative Instruments for further discussion of the Company’s use of derivative instruments and their impact of the consolidated financial statements. Refer to Note 5. Fair Value Measurements |
Goodwill and Intangible Assets, Policy | Goodwill Goodwill of $46 is attributable to the Xchange acquisition, further discussed in Note 3. Business Combination and represents the acquisition cost in excess of the fair value of net assets acquired, including identifiable intangible assets. Goodwill is assigned at acquisition to the applicable reporting unit of the acquired entity giving rise to the goodwill. Goodwill is not amortized but is subject to impairment testing. Goodwill impairment tests are performed annually or more frequently if circumstances indicate a possible impairment. Ambac tests goodwill for impairment as of October 1st of each year. If, after assessing qualitative factors, management believes it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative impairment evaluation is performed. Management also has the option to bypass the qualitative evaluation and proceed directly to the quantitative evaluation. The quantitative test compares the estimated fair value of the reporting unit with its carrying value (including goodwill and identifiable intangible assets). An impairment is recognized for the excess of the carrying amount of the reporting unit over it estimated fair value. If the reporting unit’s estimated fair value exceeds its carrying value, goodwill is not impaired. There have been no accumulated impairment losses since goodwill was established. Intangible Assets Financial Guarantee Insurance intangible: Upon Ambac's emergence from bankruptcy in 2013, an insurance intangible asset was recorded which represented the difference between the fair value and aggregate carrying value of the financial guarantee insurance and reinsurance assets and liabilities. The carrying values of our financial guarantee insurance and reinsurance contracts continue to be reported and measured in accordance with their existing accounting policies. Pursuant to the Financial Services-Insurance Topic of the ASC, the insurance intangible is to be measured on a basis consistent with the related financial guarantee insurance and reinsurance contracts. The initial insurance intangible asset was assigned to groups of insurance and reinsurance contracts with similar characteristics and has been amortized using a level-yield method based on par exposure of the related groups. Finite-lived intangibles: Ambac acquired $36 of identifiable intangible assets attributable to the Xchange acquisition, further discussed in Note 3. Business Combination . The intangible assets are primarily related to distribution relationships, non-compete agreements and trade names, all of which have finite lives and are amortized over their estimated useful lives using the straight-line method. The Company tests finite-lived acquired intangible assets for impairment if certain events occur or circumstances change indicating that the carrying amount of the intangible asset may not be recoverable. The carrying amount of the intangible asset is not recoverable if it exceeds the projected undiscounted cash flows expected to result from the use and eventual disposal of the asset or asset group. If deemed unrecoverable, an impairment loss is recognized for the excess carrying amount over the fair value. There have been no accumulated impairment losses since these finite-lived intangible assets were established. Indefinite-lived intangibles Ambac acquired $9 of identifiable intangible assets attributable to its acquisition of Providence Washington Insurance Company, which was accounted for as an asset acquisition. The intangible assets relate to insurance licenses which have indefinite lives and therefore are not amortized. The useful lives are re-evaluated each period to determine whether facts and circumstances continue to support an indefinite life. The Company tests indefinite-lived acquired intangible assets for impairment annually or more frequently if circumstances indicate a possible impairment. Ambac tests indefinite-lived intangibles for impairment as of October 1st of each year. If, after assessing qualitative factors, management believes it is more likely than not that the intangible assets are impaired, a quantitative impairment evaluation is performed. Management also has the option to bypass the qualitative evaluation and |
Restricted Cash | Restricted Cash Cash that we do not have the right to use for general purposes is recorded as restricted cash in our consolidated balance sheets. Restricted cash includes (i) consolidated variable interest entity cash restricted to support the obligations of the consolidated VIEs, (ii) cash held by AAC received from its investment in LSNI Secured Notes and pledged for the benefit of holders of LSNI Secured Notes (other than AAC) and (iii) fiduciary cash held by Xchange described below. Fiduciary Assets and Liabilities: In Xchange's capacity as an MGU, it collects premiums from insureds and remits the premiums to the respective insurance carriers, net of fees to other parties, including its commissions. Xchange also collects claims or refunds from carriers on behalf of insureds. Unremitted insurance premiums and claims proceeds are held by Xchange in a fiduciary capacity. Since fiduciary assets are not available for corporate use, they are shown in the consolidated balance sheets as an offset to fiduciary liabilities, which are reported in Other liabilities. Restricted cash for net uncollected premiums and claims and the related fiduciary liabilities were $5 and $4 at December 31, 2021 and 2020, respectively. |
Loss Reserves | Loss and Loss Expenses Financial Guarantee: The loss and loss expense reserve (“loss reserve”) policy relates only to Ambac’s non-derivative financial guarantee insurance business for insurance policies issued to beneficiaries, including VIEs, for which we do not consolidate the VIE. Losses and loss expenses are based upon estimates of the ultimate aggregate losses inherent in the insured portfolio as of the reporting date. The policy for derivative contracts is discussed in the “Derivative Contracts” section above. A loss reserve is recorded on the balance sheet on a policy-by-policy basis based upon the present value ("PV") of expected net claim cash outflows or expected net recovery cash inflows, discounted at risk-free rates. The estimate for future net cash flows consider the likelihood of all possible outcomes that may occur from missed principal and/or interest payments on the insured obligation. This estimate also considers future recoveries related to breaches of contractual representations and warranties by RMBS transaction sponsors, remediation strategies, excess spread and other contractual or subrogation-related cash flows. Ambac’s approach to resolving disputes involving contractual breaches by transaction sponsors or other third parties has included negotiations and/or pursuing litigation. Ambac does not estimate recoveries for litigations where its sole claim is for fraudulent inducement, since any remedies under such claims would be non-contractual. Nor does Ambac include potential recoveries attributable to pre-judgment interest in the estimate of subrogation recoveries. • Net claim cash outflow policies represent contracts where the PV of expected cash outflows are greater than the PV of expected recovery cash inflows. For such policies, a “Loss and loss expense reserves” liability is recorded for the excess of the PV of expected net claim cash outflows over the unearned premium revenue. • Net recovery cash inflow policies represent contracts where the PV of expected recovery cash inflows are greater than the PV of expected claim cash outflows. For such policies, a “Subrogation recoverable” asset is recorded. The evaluation process for determining expected losses is subject to certain judgments based on our assumptions regarding the probability of default by the issuer of the insured security, probability of settlement outcomes (which may include commutation settlements, refinancing and/or other settlement outcomes) and expected severity of credits for each insurance contract. Ambac’s loss reserves are based on management’s ongoing review of the financial guarantee credit portfolio. Active surveillance of the insured portfolio enables Ambac’s Risk Management Group ("RMG") to track credit migration of insured obligations from period to period and update internal classifications and credit ratings for each transaction. Non-adversely classified credits are assigned a Class I rating while adversely classified credits are assigned a rating of Class IA through Class V. The criteria for an exposure to be assigned an adversely classified credit rating includes the deterioration of an issuer’s financial condition, underperformance of the underlying collateral (for collateral dependent transactions such as mortgage-backed or student loan securitizations), poor performance by the servicer of the underlying collateral and other adverse economic events or trends. The servicer of the underlying collateral of an insured securitization transaction is a consideration in assessing credit quality because the servicer’s performance can directly impact the performance of the related issue. All credits are assigned risk classifications by RMG using the following guidelines: CLASS I – “Fully Performing - Meets Ambac Criteria with Remote Probability of Claim” - Credits that demonstrate adequate security and structural protection with a strong capacity to pay interest, repay principal and perform as underwritten. Factors supporting debt service payment and performance are considered unlikely to change and any such change would not have a negative impact upon the fundamental credit quality. Through ongoing surveillance, Ambac may also designate Class I credits into one or more of the following categories: • Survey List - credits that may lack information or demonstrate a weakness but further deterioration is not expected. • Watch List - credits that demonstrate the potential for future material adverse development due to such factors as long-term uncertainty about a particular sector, a certain structural element or concern related to the issuer or transaction or the overall financial and economic sustainability. CLASS IA – “Potential Problem with Risks to be Dimensioned” - Credits that are fully current and monetary default or claims-payment are not anticipated. The issuer’s financial condition may be deteriorating or the credits may lack adequate collateral. A structured financing may also evidence weakness in its fundamental credit quality as evidenced by its under-performance relative to its modeled projections at underwriting, issues related to the servicer’s ability to perform or questions about the structural integrity of the transaction. While certain of these credits may still retain an investment grade rating, they usually have experienced or are vulnerable to a ratings downgrade. Further investigation is required to dimension and correct any deficiencies. A complete legal review of documents may be required. An action plan should be developed with triggers for future classification changes upward or downward. CLASS II – “Substandard Requiring Intervention” - Credits whose fundamental credit quality has deteriorated to the point that timely payment of debt service may be jeopardized by adversely developing trends of a financial, economic, structural, managerial or political nature. No claim payment is currently foreseen but the probability of loss or claim payment over the life of the transaction is now existent (generally 10% or greater probability). Class II credits may be border-line or below investment grade (BBB- to B). Prompt and sustained action must be taken to execute a comprehensive loss mitigation plan and correct deficiencies. CLASS III – “Doubtful with Clear Potential for Loss” - Credits whose fundamental credit quality has deteriorated to the point that timely payment of debt service has been or will be jeopardized by adverse trends of a financial, economic, structural, managerial or political nature which, in the absence of positive change or corrective action, are likely to result in a loss. The probability of monetary default or claims paying over the life of the transaction is generally 50% or greater. Full exercise of all available remedial actions is required to avert or minimize losses. Class III credits will generally be rated below investment grade (B to CCC). CLASS IV – “Imminent Default or Defaulted” - Monetary default or claim payments have occurred or are expected imminently. Class IV credits are generally rated D. CLASS V – “Fully Reserved” - The credit has defaulted and payments have occurred. The claim payments are scheduled and known, reserves have been established to fully cover such claims, and no claim volatility is expected. The population of credits evaluated in Ambac’s loss reserve process are: (i) all adversely classified credits and ii) non-adversely classified credits which had an internal Ambac rating downgrade since the transaction’s inception. One of two approaches is then utilized to estimate losses to ultimately determine if a loss reserve should be established. • The first approach is a statistical expected loss approach, which considers the likelihood of all possible outcomes. The “base case” statistical expected loss is the product of: (i) the par outstanding on the credit; (ii) internally developed default information (taking into consideration internal ratings and average life of an obligation); (iii) internally developed loss severities; and (iv) a discount factor. The loss severities and default information are based on rating agency information, are specific to each bond type and are established and approved by senior RMG officers. For certain credit exposures, Ambac’s additional monitoring, loss remediation efforts and probabilities of potential settlement outcomes may provide information relevant to adjust this estimate of “base case” statistical expected losses. Analysts may accept the “base case” statistical expected loss as the best estimate of expected loss or assign multiple probability weighted scenarios to determine an adjusted statistical expected loss that better reflects management’s view of a given transaction’s expected losses, as well as the potential for additional remediation activities (e.g., commutations). • The second approach entails the use of cash-flow based models to estimate expected losses (future claims, net of potential recoveries, expected to be paid to the holder of the insured financial obligation). Ambac’s RMG group will consider the likelihood of all possible outcomes and develop appropriate cash flow scenarios. This approach can include the utilization of internal or third party models and tools to project future losses and resultant claim payment estimates. We utilize cash flow models for RMBS, student loan, Puerto Rico and other exposures. RMBS and student loan models use historical performance of the collateral pools in order to then derive future performance characteristics, such as default and voluntary prepayment rates, which in turn determine projected future claim payments. In other cases, such as many public finance exposures, including our Puerto Rico exposures, we do not specifically forecast resources available to pay debt service in the cash flow model itself. Rather, we consider the issuers’ overall ability and willingness to pay, including the fiscal, economic, legal and political framework. In this approach, a probability-weighted expected loss estimate is developed based on assigning probabilities to multiple claim payment scenarios and applying an appropriate discount factor. Additionally, we consider the issuer’s ability to refinance an insured issue, Ambac’s ability to execute a potential settlement (i.e., commutation) of the insurance policy, including the impact on future installment premiums, and/or other restructuring possibilities in our scenarios. The commutation scenarios and the related probabilities of occurrence vary by transaction, depending on our view of the likelihood of negotiating such a transaction with issuers and/or investors. The discount factor applied to the statistical expected loss approach is based on a risk-free discount rate corresponding to the remaining expected weighted-average life of the exposure and the exposure currency. For the cash flow scenario approach, discount factors are applied based on a risk-free discount rate term structure and correspond to the date of each respective cash flow payment or recovery and the exposure currency. Discount factors are updated for the current risk-free rate each reporting period. Ambac establishes loss expense reserves based on our estimate of expected net cash outflows for loss expenses, such as legal and consulting costs. Below we provide further details of our loss reserve models for both RMBS and student loan exposures: RMBS Expected Loss Estimate Ambac insures RMBS transactions collateralized by (i) first-lien mortgages; and (ii) second-lien mortgage loans such as closed-end seconds and home equity lines of credit. If the borrower defaults on the payments due under these loans and the property is subsequently liquidated, the liquidation proceeds are first utilized to pay off the first-lien loan (as well as other costs) and any remaining funds are applied to pay off the second-lien loan. As a result of this subordinate position to the first-lien loan, second-lien loans may carry a significantly higher severity in the event of a loss. Ambac primarily utilizes a cash flow model (“RMBS cash flow model”) to develop estimates of projected losses for both our first and second lien transactions. First, the RMBS cash flow model projects collateral performance utilizing: (i) the transaction’s underlying loans' characteristics and status, (ii) projected home price appreciation (“HPA”) and (iii) projected interest rates. Depending on the amount of collateral information available for each transaction, we project such performance either at the loan-level or the deal-level. In the absence of specific loan-level information, the deal-level approach evaluates a loan pool as if it were a single loan, selecting certain aggregated deal-level characteristics to then perform a series of statistical analyses. The deal-level approach projects performance using a roll-rate that evaluates the possible future state of a loan based on its current status and three variables: average FICO (credit score), average current consolidated loan to value ratio (“CLTV”) and an overall quality indicator. Observed servicer-level behavior may also have an impact on projected transaction performance. We source HPA projections from a market accepted vendor and interest rate projections are developed from market sources. We use three HPA projection scenarios to develop a base case as well as stress and upside cases. The highest probability is assigned to the base case, with lower probabilities to the stress and upside cases. For the liabilities of the transaction which we insure, we generally utilize waterfall projections generated from a tool provided by a market accepted vendor. This waterfall tool allows us to capture the impact of each transaction’s specific structure (e.g., the waterfall priority of payments, triggers, redemption priority) to generate our specific projected claims profile in the base, upside and downside scenarios. On a monthly basis, we compare monthly claims submitted against the trustees’ reports, waterfall projections and our understanding of the transactions’ structures to identify and resolve discrepancies. In our experience, market performance and model characteristics change and therefore need to be updated and reflected in our models through time. As such, we conduct regular reviews of current models, alternative models and the overall approach to loss estimation. RMBS Representation and Warranty Subrogation Recoveries Ambac records, as a component of its loss reserve estimate, subrogation recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties ("R&W") described herein. Generally, the sponsor of an RMBS transaction provided R&W with respect to the securitized loans, including R&W with respect to loan characteristics, the absence of borrower misrepresentations in the underlying loans and other misconduct in the origination process and attesting to the compliance of loans with the applicable underwriting guidelines. In such cases, the sponsor of the transaction is obligated, in accordance with the underlying contract, to repurchase, cure or substitute collateral for any loan that breaches the R&W. Ambac or its counsel engaged consultants with significant mortgage underwriting experience to review the underwriting documentation for mortgage loans underlying certain insured RMBS transactions with significant collateral losses, resulting in significant claims payments by Ambac, and for which Ambac believes it has enforceable contractual rights under the relevant transaction documents against the counterparty and the counterparty has the financial ability to honor its contractual repurchase obligations. Generally, subsequent to the forensic exercise of examining loan files to ascertain whether the loans conformed to the R&W, we submitted nonconforming loans for repurchase to the contractual counterparty bearing the repurchase obligation, typically the transaction sponsor. In certain cases the loans were repurchased by a sponsor. In such cases the sponsor paid the "repurchase price" to the securitization trust which holds the loan. Ambac may also have received payments directly from transaction sponsors in settlement of their repurchase obligations pursuant to negotiated settlement agreements or otherwise as a result of related litigation. While the obligation of sponsors to repurchase loans with material breaches is clear, generally the sponsors have not honored those obligations without actual or threatened litigation. Ambac has utilized the results of the above-described loan file examinations to make demands for loan repurchases from sponsors or their successors and, in certain instances, as a part of the basis for litigation. Ambac’s approach to resolving these disputes has included negotiating with individual sponsors at the transaction level and in some cases at the individual loan level and has resulted in the repurchase of some loans. Ambac has initiated and continues to prosecute lawsuits seeking compliance with the repurchase obligations in the securitization documents. Ambac has performed the above-mentioned, detailed examinations on a variety of transactions that have experienced exceptionally poor performance. However, the loan file examinations and related estimated recoveries we have reviewed and recorded to date have been limited to only those transactions whose sponsors (or their successors) are subsidiaries of large financial institutions, all of which carry an investment grade rating from at least one nationally recognized rating agency, or are otherwise deemed to have the financial wherewithal to live up to their repurchase obligations. While our contractual recourse is generally to the sponsor/subsidiary, rather than to the parent, each of these large institutions has significant financial resources and may have an ongoing interest in mortgage finance, and we therefore believe that the financial institution/parent would ultimately assume financial responsibility for these obligations if the sponsor/subsidiary is unable to honor its contractual obligations or pay a judgment that we may obtain in litigation. Additionally, in the case of successor institutions, we are not aware of any provisions that explicitly preclude or limit the successors’ ability to honor the obligations of the original sponsor. Certain successor financial institutions have made significant payments to certain claimants to settle breaches of R&W perpetrated by sponsors that have been acquired by such financial institutions. For example, Ambac received a significant payment in 2016 from JP Morgan to settle RMBS-related litigation. As a result of these factors, we do not make significant adjustments to our estimated subrogation recoveries with respect to the credit risk of these sponsors or their successors. Our ability to realize RMBS R&W subrogation recoveries is subject to significant uncertainty, including risks inherent in litigation, including adverse rulings or decisions in our cases or in litigations to which AAC is not a party that set precedents or resolve questions of law that impact our own claims; collectability of such amounts from counterparties (and/or their respective parents and affiliates); timing of receipt of any such recoveries; intervention by OCI, which could impede our ability to take actions required to realize such recoveries; and uncertainty inherent in the assumptions used in estimating such recoveries. Failure to realize RMBS R&W subrogation recoveries for any reason or the realization of RMBS R&W subrogation recoveries materially below the amount recorded on Ambac's consolidated balance sheet would have a material adverse effect on our results of operations and financial condition and may result in adverse consequences such as impairing the ability of AAC to honor its financial obligations, particularly its outstanding debt and preferred stock obligations; the initiation of rehabilitation proceedings against AAC; eliminating or reducing the likelihood of AAC delivering value to Ambac, through dividends or otherwise; and a significant drop in the value of securities issued and/or insured by Ambac or AAC. The approach used to estimate RMBS R&W subrogation recoveries is based on obtaining loan files from the original pool and conducting loan file re-underwriting to derive a breach rate to be extrapolated to determine an estimated repurchase obligation. We limit the estimated repurchase obligation by ever-to-date incurred losses. Multiple probability-weighted scenarios are developed by applying various realization factors to the estimated repurchase obligation. The realization factors in these scenarios reflect Ambac’s own assumptions about the likelihood of outcomes based on all the information available to it including, but not limited to, (i) discussions with external legal counsel and their views on ultimate settlement and/or litigation outcomes; (ii) assessment of the strength of the specific case; (iii) changes in law or developments in RMBS litigation cases that impact our estimated recoveries; and (iv) experience in settling similar claims. The probability weightings are developed based on the unique facts and circumstances for each transaction. The sum of these probability-weighted scenarios represents the undiscounted RMBS R&W subrogation recovery, which is then discounted using a factor derived from a risk-free discount rate term structure that corresponds to the estimated date of each respective recovery. Student Loan Expected Loss Estimate The student loan insured portfolio consists of credits collateralized by private student loans. The calculation of loss reserves for our student loan portfolio involves evaluating numerous factors that can impact ultimate losses. Since our policy covers timely interest and ultimate principal payment, our loss projections must make assumptions for many factors covering a long horizon. Key assumptions that will impact ultimate losses include, but are not limited to, the following: collateral performance (which is highly correlated to the economic environment); interest rates; operating risks associated with the issuer, servicers, special servicers, and administrators; investor appetite for tendering or commuting insured obligations; and as applicable, Ambac’s ability and willingness to commute policies. In addition, we consider in our student loan loss projections the potential impact, if any, of proposed or final regulatory actions or orders, including by the Consumer Financial Protection Bureau ("CFPB"), affecting our insured transactions. We develop and assign probabilities to multiple cash flow scenarios based on each transaction’s unique characteristics. Probabilities assigned are based on available data related to the credit, information from contact with the issuer (if applicable), and any economic or market information that may impact the outcomes of the various scenarios being evaluated. Our base case usually projects deal performance out to maturity using expected loss assumptions. As appropriate, we also develop other cases that incorporate various upside and downside scenarios that may include changes to defaults and recoveries. Specialty P&C: |
Reinsurance Accounting Policy | Ceded Reinsurance Loss and loss expense reserve reported on the balance sheet relates only to gross insurance policies. The corresponding reserve ceded to reinsurers is reported as reinsurance recoverable on paid and unpaid losses. Ambac has reinsurance in place pursuant to quota share, surplus share treaty and facultative reinsurance agreements. The reinsurance of risk does not legally relieve Ambac of its original liability to its policyholders. In the event that any of Ambac’s reinsurers are unable to meet their obligations under reinsurance contracts, Ambac would, nonetheless, be liable to its policyholders for the full amount of its policy. To minimize its credit exposure to losses from reinsurer insolvencies, Ambac (i) is entitled to receive collateral from certain reinsurance counterparties pursuant to the terms of the relevant reinsurance contracts and (ii) has certain cancellation rights that can be exercised by Ambac in the event of rating agency downgrades of a reinsurer (among other events and circumstances). For those reinsurance counterparties that do not currently post collateral, Ambac’s reinsurers are well capitalized, highly rated, authorized capacity providers. Under CECL, Ambac has a formal quarterly credit impairment review process whereby Ambac has elected to use the practical expedient of considering the fair value of collateral posted by reinsurers when evaluating credit impairment. To determine the total unsecured recoverable to be evaluated for credit impairment, Ambac nets the reinsurance recoverable amount by ceded premiums payable and the fair value of collateral posted, if any. The key factors in assessing credit impairment for reinsurance recoverables are independent rating agency credit ratings and loss severities. Management utilizes a PD/LGD approach, which is applied to the net unsecured reinsurance recoverable amount. Refer to Note 7. Insurance Contracts |
Debt, Policy | Long-Term Debt Long-term debt issued by Ambac is carried at par value less unamortized discount. Accrued interest and discount accretion on long-term debt is reported as Interest expense on the Consolidated Statements of Total Comprehensive Income (Loss). To the extent Ambac repurchases or redeems its long-term debt, such repurchases or redemptions may be settled for an amount different than the carrying value of the obligation. Any difference between the payment and carrying value of the obligation is reported in Net realized gains (losses) on extinguishment of debt on the Consolidated Statements of Total Comprehensive Income (Loss). For long-term debt issued by consolidated VIEs in which Ambac's variable interest arises from financial guarantees written by Ambac's subsidiaries ("FG VIEs"), we may elect to use the fair value option on an instrument by instrument basis. When the fair value option is elected, changes in the fair value of the FG VIEs' long-term debt is reported within Income (loss) on variable interest entities in the Consolidated Statements of Total Comprehensive Income (Loss), except for the portion of |
Noncontrolling Interest Policy [Policy Text Block] | Noncontrolling Interests Nonredeemable noncontrolling interests At December 31, 2021 and 2020, AAC had 5,501 shares of issued and outstanding AMPS with a liquidation preference of $138 (reported as nonredeemable noncontrolling interest of $60 on Ambac's balance sheet). The auction occurs every 28 days and the dividend rate has continuously been reset at the maximum rate of one-month LIBOR plus 200 basis points. Under the terms of the AMPS, dividends may not be paid on the common stock of AAC unless all accrued and unpaid dividends on the AMPS for the then current dividend period have been paid, provided, that dividends on the common stock may be made at all times for the purpose of, and only in such amounts as are necessary for, enabling AFG (i) to service its indebtedness for borrowed money as such payments become due or (ii) to pay its operating expenses. If dividends are paid on the common stock as provided in the prior sentence, dividends on the AMPS become cumulative until the date that all accumulated and unpaid dividends have been paid on the AMPS. AAC has not paid dividends on its AMPS since 2010. Redeemable noncontrolling interests The Xchange acquisition, further described in Note 3. Business Combination, resulted in 80% ownership of the acquired entities by Ambac. Under the terms of the acquisition agreement, Ambac has a call option to purchase the remaining 20% from the minority owners (i.e., noncontrolling interests) and the minority owners have a put option to sell the remaining 20% to Ambac. The call and put options are exercisable after different time periods elapse. Because the exercise of the put option is outside the control of Ambac, in accordance with the Distinguishing Liabilities from Equity Topic of the ASC, Ambac reports redeemable noncontrolling interests in the mezzanine section of its consolidated balance sheet. The redeemable noncontrolling interest is remeasured each period as the greater of: i. the carrying value under ASC 810, which attributes a portion of consolidated net income (loss) to the redeemable noncontrolling interest, and ii. the redemption value of the put option under ASC 480 as if it were exercisable at the end of the reporting period. Any increase (decrease) in the carrying amount of the redeemable noncontrolling interest as a result of adjusting to the redemption value of the put option is recorded as an offset to retained earnings. The impact of such differences on earnings per share are presented in Note 15. Net Income Per Share. Following is a rollforward of redeemable noncontrolling interest. Years ended December 31, 2021 2020 Beginning balance $ 7 $ — Fair value of redeemable noncontrolling interest at acquisition date — 7 Net income attributable to redeemable noncontrolling interest (ASC 810) (1) — Adjustment to redemption value (ASC 480 ) 12 — Ending Balance $ 18 $ 7 |
Short-Duration Contracts Revenue Recognition, Policy | Revenue Recognition: Revenues for the MGA/U business operations are recognized in accordance with the Revenue from Contracts with Customers Topic of the ASC. The following steps are applied to recognize revenue: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. A performance obligation is satisfied either at a point in time or over time depending on the nature of the product or service provided, and the specific terms of the contract with customers. MGA/U performance obligations consist of placing policies with insurers and, for certain products, providing claims servicing. Revenue from limited and short-term medical policies sold through affinity groups ("Affinity") are recognized up front as no further performance obligations exist after policy placement. Revenue from employer stop loss policies ("ESL") is apportioned to policy placement and claims servicing based on the relative stand-alone selling price of the respective performance obligations with policy placement revenue recognized upfront while claims servicing revenue is recognized over the claim adjustment period. Revenue consists of base and profit-sharing commissions. Base commissions, associated with policy placement and claims servicing, are estimated by applying the contractual commission percentages to estimated gross premiums written. Profit-sharing commissions represent variable consideration associated with policy placement only and are estimated based on expected loss ratios and the estimated gross premium for base commissions. Base and profit-sharing commissions are estimated with a constraint applied such that a significant reversal of revenue in the future is not probable. MGA/U revenue is reported in other income (expense) on the Consolidated Statement of Total Comprehensive Income. Contract assets represent the Company's right to future consideration for services it has already transferred to the customer, which is subject to certain contingencies such as the achievement of loss ratios on underlying insurance policies. Once the right to consideration becomes unconditional, it is reported as a receivable. Contract liabilities represent the Company's obligation to transfer services for which it has already received consideration from the customer. Contract assets and contract liabilities are reported as other assets and other liabilities, respectively, on the Consolidated Balance Sheet. |
Postretirement and Postemployment Benefits | Postretirement and Postemployment BenefitsAmbac provides postretirement and postemployment benefits, including health and life benefits covering employees who meet certain age and service requirements. Ambac accounts for these benefits under the accrual method of accounting. Amounts related to the postretirement health benefits liability are established and charged to expense based on actuarial determinations. |
Long Term Incentive and Stock Compensation Plan | Incentive Compensation Incentive compensation is a key component of our compensation strategy. Incentive compensation has two components: short term incentive compensation (consisting of an annual cash bonus and, prior to 2020, awards of deferred stock units for certain officers) and long term incentive plan awards (consisting of deferred cash and awards of restricted and performance stock units). Annual decisions with regard to incentive compensation are generally made in the first quarter of each year and are based on the prior year's performance for the Company, the employee and the employee's business unit. In 2020, the Ambac 2013 Incentive Compensation Plan (the “2013 Incentive Plan”) was superseded by the 2020 Incentive Compensation Plan ("2020 Incentive Plan"). Both plans allow for the granting of stock options, restricted stock, stock appreciation rights, restricted and performance units and other awards to employees, directors and consultants that are valued or determined by reference to Ambac's common stock. Under these plans, Ambac has issued both cash and equity awards to US employees and consultants. In connection with the adoption of the 2020 Incentive Plan, all shares reserved but unissued under the 2013 Incentive Plan were transferred to the the 2020 Incentive Plan in addition to any shares underlying outstanding awards under the 2013 Incentive Plan as of June 2, 2020 that subsequently terminate by expiration or forfeiture, cancellation, or otherwise are not issued. Under the 2013 and 2020 Incentive Compensation Plans. Ambac recognizes compensation costs for all equity classified awards granted at fair value, which is measured on the grant date, and records forfeitures for unvested shares only when they occur. For awards that only include service and performance conditions, the fair value is the market price of Ambac stock on the grant date. For awards that also contain a market condition, specifically a total shareholder return ("TSR") modifier, the fair value is estimated using a Monte Carlo simulation. The types of equity awards granted to employees are as follows: • Deferred stock units - vest upon grant and will settle and convert to Ambac common stock annually over a two-year period (50% on the first anniversary of the grant date and 50% on the second anniversary of the grant date). The fair value of these grants is recognized as compensation expense on the date of grant since no future service is required. These awards have not been granted since 2019. • Restricted stock units - only require future service and accordingly the respective fair value is recognized as compensation expense over the relevant service period. • Performance stock units - require both future service and achieving specified performance targets to vest. Certain performance stock unit grants also include a market condition TSR modifier that will cause the total payout at the end the performance period to increase or decrease depending on Ambac's stock performance relative to a peer group. Compensation costs for all performance stock units are only recognized when the achievement of the performance conditions are considered probable. Once deemed probable, such compensation costs are recognized as compensation expense over the relevant service period. Compensation costs are initially based on the probable outcome of the performance conditions and adjusted for subsequent changes in the estimated or actual outcome each reporting period as necessary. Changes in the estimated or actual outcome of a performance condition are recognized by reflecting a retrospective adjustment to compensation cost in the current period. |
Lessee, Operating Lease, Disclosure [Table Text Block] | Operating Leases A contract contains a lease if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Ambac's evaluation of whether certain contracts contain leases requires judgment regarding what party controls the asset and whether the asset is physically distinct. Ambac is the lessee in leases which are classified as operating leases. Ambac recognizes a single lease cost, calculated so that the cost is allocated generally on a straight-line basis over the lease term within operating expenses in the Consolidated Statements of Total Comprehensive Income (Loss). The lease term commences on the earlier of the date when we become legally obligated for the rent payments or the date on which we take possession of the property. For such operating leases, Ambac recognizes a right-of-use ("ROU") asset and a lease liability, initially measured at the present value of the lease payments. The discount rate used to initially measure the ROU assets and lease liabilities reflects the estimated secured |
Depreciation and Amortization | Depreciation and AmortizationDepreciation of furniture and fixtures, certain information technology development costs and electronic data processing equipment is charged over the estimated useful lives of the respective assets, ranging from three five |
Foreign Currency | Foreign Currency Financial statement accounts expressed in foreign currencies are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the ASC. The functional currencies of Ambac's subsidiaries are the local currencies of the country where the respective subsidiaries are based, which are also the primary operating environments in which the subsidiaries operate. Foreign currency translation: Functional currency assets and liabilities of Ambac’s foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at the balance sheet dates and the related translation adjustments, net of deferred taxes, are included as a component of Accumulated Other Comprehensive Income (Loss) in Stockholders' Equity. Functional currency operating results of foreign subsidiaries are translated using average exchange rates. Foreign currency transactions: The impact of non-functional currency transactions and the remeasurement of non-functional currency assets and liabilities into the respective subsidiaries' functional currency (collectively "foreign currency transactions gains/(losses)") are $(7), $(1) and $12 for the years ended December 31, 2021, 2020 and 2019, respectively. Foreign currency transactions gains/(losses) are primarily the result of remeasuring Ambac UK's assets and liabilities denominated in currencies other than its functional currency, primarily the U.S. dollar and the Euro. |
Income Taxes | Income Taxes Ambac files a consolidated U.S. Federal income tax return with its subsidiaries. Ambac and its subsidiaries also file separate or combined income tax returns in various states, local and foreign jurisdictions. Current tax assets and liabilities are recognized for taxes refundable or payable for the current year. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on current and deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. In July 2020, United Kingdom legislation increasing the tax rate from 17% to 19% was fully enacted. As such, we incorporated the effects of the tax rate increase in our current and deferred tax evaluation for the years ended December 31, 2020 and 2021. |
Net Income Per Share | Net Income Per ShareBasic net income per share is computed by dividing net income attributable to common stockholders, including the adjustment to redemption value of the redeemable noncontrolling interest, by the weighted-average number of common shares outstanding and vested restricted stock units (together, "Basic Weighted Average Shares Outstanding"). Diluted net income per share is computed by dividing net income attributable to common stockholders, including the adjustment to redemption value of the redeemable controlling interest, by the Basic Weighted-Average Shares Outstanding plus all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants, vested and unvested options, unvested restricted stock units and performance stock units granted under existing compensation plans. |
Reclassifications | Reclassifications and RoundingReclassifications may have been made to prior years' amounts to conform to the current year's presentation. Certain amounts and tables in the consolidated financial statements and associated notes may not add due to rounding. |
Adoption of New Accounting Standards | Adopted Accounting Standards Effective January 1, 2021, the Company adopted the following accounting standards: Simplifying Income Tax Accounting In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes . The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The ASU removes certain exceptions in the guidance related to investments, intra-period allocations and interim period allocations. It further adds new guidance related to the allocation of consolidated income taxes and evaluating a step-up in the tax basis of goodwill. The ASU did not have a consequential impact on Ambac's financial statements. Future Application of Accounting Standards: Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides companies with optional guidance to ease the potential accounting burden related to transitioning away from reference rates, such as LIBOR, that are expected to be discontinued as a result of initiatives undertaken by various jurisdictions around the world. For example, under current GAAP, contract modifications which change a reference rate are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU can be applied prospectively as of the beginning of the interim period |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Cash Flow Supplemental Information [Line Items] | |
Schedule of Supplemental Cash Flow Information [Table Text Block] | Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2021 2020 2019 Cash paid during the period for: Income taxes $ 15 $ 11 $ 21 Interest on long-term debt 80 107 143 Non-cash investing and financing activities: Decrease in long-term debt as a result of surplus notes exchanges 71 — — December 31, 2021 2020 2019 Reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets to the Consolidated Statements of Cash Flow: Cash and cash equivalents $ 17 $ 20 $ 24 Restricted cash 5 13 55 Variable Interest Entity Restricted cash 2 2 2 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows 23 35 81 |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental information related to leases is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 5 $ 4 Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) — — |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2021 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for Xchange and the estimated fair values of the aggregate assets and liabilities acquired, as well as the fair value of the noncontrolling interest, at the acquisition date: Fair Value Cash $ 2 Restricted cash 4 Intangible assets 36 Goodwill 46 Other assets 8 Total assets acquired $ 96 Other liabilities 8 Total liabilities assumed 8 Less: Redeemable noncontrolling interest 7 Total consideration $ 81 | |
Schedule of Indefinite-lived Intangible Assets Acquired as Part of Business Combination | The following table sets forth the estimated fair values of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition. Fair Weighted Distribution relationships $ 33 15.0 Non-compete agreements 1 5.0 Trade name 1 8.0 Total $ 36 | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for intangible assets is as follows: Insurance Intangible Asset (1) Other Intangible Assets (1) Total 2022 $ 34 $ 3 $ 36 2023 30 3 33 2024 28 3 31 2025 25 3 28 2026 23 2 25 Thereafter 180 20 200 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments | The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at December 31, 2021 and 2020 were as follows: Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2021 Fixed maturity securities: Municipal obligations $ 315 $ — $ 28 $ 3 $ 340 Corporate obligations 612 — 10 9 613 Foreign obligations 89 — — 2 87 U.S. government obligations 45 — 1 1 45 Residential mortgage-backed securities 182 — 70 — 252 Collateralized debt obligations 128 — — — 128 Other asset-backed securities (2) 234 — 32 — 265 1,605 — 141 16 1,730 Short-term 415 — — — 414 2,020 — 141 16 2,145 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 105 — — — 105 120 — — — 120 Total available-for-sale investments $ 2,140 $ — $ 141 $ 16 $ 2,265 Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2020 Fixed maturity securities: Municipal obligations $ 321 — 37 — 358 Corporate obligations (1) 1,059 — 24 6 1,077 Foreign obligations 97 — 1 — 98 U.S. government obligations 105 — 2 1 106 Residential mortgage-backed securities 256 — 46 — 302 Collateralized debt obligations 74 — — — 74 Other asset-backed securities (2) 263 — 40 — 303 2,175 — 149 8 2,317 Short-term 492 — — — 492 2,667 — 149 8 2,809 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 125 — — — 125 140 — — — 140 Total available-for-sale investments 2,807 $ — $ 149 $ 8 $ 2,949 (1) Includes Ambac's holdings of the LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. |
Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments Held by Successor Ambac, by Contractual Maturity | The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at December 31, 2021, by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 565 $ 565 Due after one year through five years 457 457 Due after five years through ten years 406 411 Due after ten years 168 188 1,596 1,620 Residential mortgage-backed securities 182 252 Collateralized debt obligations 128 128 Other asset-backed securities 234 265 Total $ 2,140 $ 2,265 |
Summary of Gross Unrealized Losses and Fair Values of Ambac's Available-for-Sale Investments | The following table shows gross unrealized losses and fair values of Ambac’s available-for-sale investments, excluding VIE investments, which at December 31, 2021, 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, 2021 and 2020: Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2021 Fixed maturity securities: Municipal obligations $ 117 $ 3 $ 2 $ — $ 118 $ 3 Corporate obligations 363 8 17 1 380 9 Foreign obligations 75 2 3 — 78 2 U.S. government obligations 25 — 2 — 27 1 Residential mortgage-backed securities — — 1 — 2 — Collateralized debt obligations 68 — 3 — 71 — Other asset-backed securities 6 — — — 6 — 654 14 28 1 682 16 Short-term 114 — 13 — 128 — 768 14 41 1 810 16 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 — — — 15 — Total collateralized investments 15 — — — 15 — Total temporarily impaired securities $ 783 $ 14 $ 41 $ 1 $ 825 $ 16 Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2020 Fixed maturity securities: Municipal obligations $ 25 $ — $ 6 $ — $ 31 $ — Corporate obligations 543 6 — — 543 6 Foreign obligations 3 — — — 3 — U.S. government obligations 17 1 — — 17 1 Residential mortgage-backed securities 14 — — — 14 — Collateralized debt obligations 27 — 15 — 42 — Other asset-backed securities — — 4 — 4 — 629 7 25 — 654 8 Short-term 187 — — — 187 — 816 7 25 — 841 8 Fixed maturity securities, pledged as collateral: U.S. government obligations — — — — — — Total collateralized investments — — — — — — Total securities $ 816 $ 7 $ 25 $ — $ 841 $ 8 |
Summary of Amounts Included in Net Realized (Losses) Gains and Other-Than-Temporary 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, 2021 2020 2019 Gross realized gains on securities $ 14 $ 38 $ 64 Gross realized losses on securities (2) (12) (5) Foreign exchange (losses) gains (5) (4) 22 Credit impairments — — — Intent / requirement to sell impairments — — — Net realized gains (losses) $ 7 $ 22 $ 81 |
Summary of Roll-Forward of Ambac's Cumulative Credit Losses on Debt Securities for Which Portion of Other-than-Temporary Impairment was Recognized in Other Comprehensive Income | Year Ended December 31, 2019 Balance, beginning of period $ 12 Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (1) Balance, end of period $ 12 |
Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities | The following table represents the fair value and weighted-average underlying rating of insured securities in Ambac's investment portfolio at December 31, 2021 and 2020, respectively: Municipal Corporate (2) Mortgage Total Weighted (1) December 31, 2021: Ambac Assurance Corporation $ 316 $ — $ 439 $ 754 B National Public Finance Guarantee Corporation 2 — — 2 BBB- Assured Guaranty Municipal Corporation 1 — — 1 A- Total $ 318 $ — $ 439 $ 757 B December 31, 2020: Ambac Assurance Corporation $ 320 $ 465 $ 481 $ 1,266 CCC+ National Public Finance Guarantee Corporation 6 — — 6 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 327 $ 465 $ 481 $ 1,273 CCC+ (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Represents Ambac's holdings of LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. These secured notes were insured by AAC. As further described in Note 1. Background and Business Description, on July 6, 2021, the LSNI Secured Notes were fully redeemed. |
Summary of Net Investment Income | Net investment income (loss) was comprised of the following for the affected periods: Year Ended December 31, 2021 2020 2019 Fixed maturity securities $ 78 $ 103 $ 183 Short-term investments — 5 17 Loans — 1 1 Investment expense (6) (6) (6) Securities available-for-sale and short-term 74 103 196 Other investments 66 19 32 Total net investment income (loss) $ 139 $ 122 $ 227 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. The portion of net unrealized gains (losses) related to securities classified as trading and equity securities, excluding those reported using the equity method, still held at the end of each period is as follows: Year Ended December 31, 2021 2020 2019 Net gains (losses) recognized during the period on trading securities $ 23 $ — $ 24 Less: net gains (losses) recognized during the reporting period on trading securities sold during the period 1 (18) 7 Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 22 $ 18 $ 17 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 December 31, 2021 and 2020, 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. Carrying Total Fair Fair Value Measurements Categorized as: Level 1 Level 2 Level 3 December 31, 2021: Financial assets: Fixed maturity securities: Municipal obligations $ 340 $ 340 $ — $ 340 $ — Corporate obligations 613 613 1 600 12 Foreign obligations 87 87 87 — — U.S. government obligations 45 45 45 — — Residential mortgage-backed securities 252 252 — 252 — Collateralized debt obligations 128 128 — 128 — Other asset-backed securities 265 265 — 187 79 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 105 105 105 — — Short term investments 414 414 369 46 — Other investments (1) 690 683 106 — — Cash, cash equivalents and restricted cash 21 21 21 1 — Derivative assets: Interest rate swaps—asset position 76 76 — 5 71 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,320 3,320 — — 3,320 Fixed maturity securities: Municipal obligations 136 136 — 136 — Restricted cash 2 2 2 — — Loans 2,718 2,718 — — 2,718 Derivative assets: Currency swaps-asset position 38 38 — 38 — Total financial assets $ 9,268 $ 9,261 $ 750 $ 1,732 $ 6,202 Financial liabilities: Long term debt, including accrued interest $ 2,806 $ 2,598 $ — $ 2,575 $ 22 Derivative liabilities: Interest rate swaps—liability position 94 94 — 94 — Liabilities for net financial guarantees written (2) (866) (112) — — (112) Variable interest entity liabilities: Long-term debt (includes $4,056 at fair value) 4,216 4,255 — 4,086 169 Derivative liabilities: Interest rate swaps—liability position 1,940 1,940 — 1,940 — Total financial liabilities $ 8,190 $ 8,775 $ — $ 8,695 $ 79 Carrying Total Fair Fair Value Measurements Categorized as: Level 1 Level 2 Level 3 December 31, 2020: Financial assets: Fixed maturity securities: Municipal obligations $ 358 $ 358 $ — $ 358 $ — Corporate obligations 1,077 1,077 4 1,073 — Foreign obligations 98 98 98 — — U.S. government obligations 106 106 106 — — Residential mortgage-backed securities 302 302 — 302 — Collateralized debt obligations 74 74 — 74 — Other asset-backed securities 303 303 — 225 78 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 125 125 125 — — Short term investments 492 492 415 76 — Other investments (1) 595 597 91 — 53 Cash and cash equivalents and restricted cash 33 33 32 2 — Derivative assets: Interest rate swaps—asset position 93 93 — 9 85 Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,215 3,215 — — 3,215 Fixed maturity securities: Municipal obligations 139 139 — 139 — Restricted cash 2 2 2 — — Loans 2,998 2,998 — — 2,998 Derivative assets; Currency swaps-asset position 41 41 — 41 — Total financial assets $ 10,071 $ 10,073 $ 888 $ 2,299 $ 6,433 Financial liabilities: Long term debt, including accrued interest $ 3,255 $ 3,071 $ — $ 2,670 $ 401 Derivative liabilities: Interest rate swaps—liability position 114 114 — 114 — Liabilities for net financial guarantees written (2) (740) 539 — — 539 Variable interest entity liabilities: Long-term debt (includes $4,324 at fair value) 4,493 4,504 — 4,349 155 Derivative liabilities: Interest rate swaps—liability position 1,835 1,835 — 1,835 — Total financial liabilities $ 8,958 $ 10,063 — 8,968 1,095 (1) Excluded from the fair value measurement categories in the table above are investment funds of $577 and $453 as of December 31, 2021 and 2020, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value measurements in the table above are equity securities with a carrying value of $8 and $— as of December 31, 2021 and 2020, 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 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 2021, 2020 and 2019. 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 and Liabilities Year ended December 31, 2021 Investments (1) Other (2) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ — $ 6,376 Total gains/(losses) realized and unrealized: Included in earnings 1 — (6) 176 59 — 230 Included in other comprehensive income 1 — — (32) (26) — (58) Purchases 13 — — — — — 13 Issuances — — — — — — — Sales — — — — — — — Settlements (2) (1) (8) (38) (313) — (362) Balance, end of period $ 91 $ — $ 70 $ 3,320 $ 2,718 $ — $ 6,199 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) $ — $ (6) $ 176 $ 59 $ — $ 227 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 $ (1) $ — $ — $ (32) $ (26) $ — $ (59) (1) Investments classified as Level 3 consist of a one other asset-backed security and two convertible notes purchased in 2021. (2) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. Level-3 Financial Assets and Liabilities Accounted for at Fair Value VIE Assets and Liabilities Year Ended December 31, 2020 Investments Other Assets (1) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ — $ 6,207 Total gains/(losses) realized and unrealized: Included in earnings 1 (2) 25 183 98 — 306 Included in other comprehensive income 6 — — 109 83 — 198 Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (1) — (7) (35) (290) — (334) Deconsolidations of VIEs — — — — — — — Balance, end of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ — $ 6,376 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 $ (2) $ 25 $ 183 $ 98 $ — $ 305 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 $ 6 $ — $ — $ 109 $ 83 $ — $ 198 (1) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. Level-3 Financial Assets and Liabilities Accounted for at Fair Value VIE Assets and Liabilities Year Ended December 31, 2019 Investments Other Assets (1) Derivatives Investments Loans Long-term Total Balance, beginning of period $ 72 $ 5 $ 46 $ 2,737 $ 4,288 $ (217) $ 6,930 Total gains/(losses) realized and unrealized: Included in earnings 2 (2) 25 138 287 (15) 436 Included in other comprehensive income — — — 116 74 8 199 Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (2) — (5) (35) (690) — (731) Deconsolidation of VIEs — — — — (851) 223 (627) Balance, end of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ — $ 6,207 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 $ — $ (2) $ 25 $ 138 $ 215 $ — $ 376 (1) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. |
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: Net Investment Income Net Gains Income (Loss) on Variable Interest Entities Other Year Ended December 31, 2021 Total gains (losses) included in earnings for the period $ 1 $ (6) $ 235 $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date 1 (6) 235 — Year Ended December 31, 2020 Total gains (losses) included in earnings for the period $ 1 $ 25 $ 281 $ (2) Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 25 281 (2) Year Ended December 31, 2019 Total gains (losses) included in earnings for the period $ 2 $ 25 $ 410 $ (2) Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 25 353 (2) |
Financial Guarantees in Force_2
Financial Guarantees in Force (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Guarantees [Abstract] | |
Schedule of Financial Guarantee Insurance In Force By Bond Type | As of December 31, 2021 and 2020, the financial guarantee portfolio consisted of the types of guaranteed bonds as shown in the following table: Net Par Outstanding December 31, (1) 2021 2020 Public Finance: Housing revenue (2) $ 5,610 $ 5,855 Lease and tax-backed revenue 3,196 4,179 General obligation 1,612 2,345 Other 1,942 3,118 Total Public Finance 12,360 15,497 Structured Finance: Mortgage-backed and home equity 2,724 3,635 Investor-owned utilities 1,556 1,617 Other 624 1,085 Total Structured Finance 4,904 6,337 International Finance: Sovereign/sub-sovereign 5,141 5,270 Investor-owned and public utilities 3,283 3,899 Asset-backed and other 1,276 1,374 Transportation 1,056 1,511 Total International Finance 10,756 12,054 Total $ 28,020 $ 33,888 (1) Net Par Outstanding includes capital appreciation bonds, which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. (2) Includes $5,490 and $5,575 of Military Housing net par at December 31, 2021 and 2020, respectively. |
Schedule of International Financial Guarantee Insurance In Force Portfolio By Location Of Risk | As of December 31, 2021 and 2020, the financial guaranteed portfolio by location of risk was as outlined in the table below: Net Par Outstanding December 31, 2021 2020 United States $ 17,264 $ 21,834 United Kingdom 9,255 9,711 Italy 718 803 Austria 343 707 France 219 277 Australia 203 420 Other international 18 136 Total $ 28,020 $ 33,888 |
Financial Guarantee Insurance_2
Financial Guarantee Insurance Contracts (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Insurance [Line Items] | |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned was as follows: Year Ended Direct Assumed Ceded Net 2021: Written $ 2 $ — $ 35 $ (33) Earned 62 — 15 47 2020: Written $ (1) $ — $ (1) $ — Earned 65 1 12 54 2019: Written $ (28) $ — $ 31 $ (60) Earned 75 — 10 66 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table summarizes net premiums earned by location of risk: Year Ended December 31, 2021 2020 2019 United States 27 $ 32 $ 55 United Kingdom 14 24 17 Other international 6 (2) (6) Total 47 $ 54 $ 66 Premium Receivables, including credit impairments Premium receivables at December 31, 2021 and 2020 were $323 and $370, respectively. Management evaluates premium receivables for expected credit losses ("credit impairment") in accordance with the CECL standard adopted January 1, 2020, which is further described in Note 2. Basis of Presentation and Significant Accounting Policies . Management's evaluation of credit impairment under prior GAAP rules was not materially different. Most credit impairment disclosures below were only made prospectively from the CECL adoption date as they were not required previously under GAAP. As further discussed in Note 2. Basis of Presentation and Significant Accounting Policies , the key indicator management uses to assess the credit quality of financial guarantee premium receivables is Ambac's internal risk classifications for the insured obligation determined by the Risk Management Group. Below is the amortized cost basis of financial guarantee premium receivables by risk classification code and asset class as of December 31, 2021 and 2020: Surveillance Categories as of December 31, 2021 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 149 $ 3 $ 5 $ — $ — $ 157 Other 2 — — — — 2 Total Public Finance 151 3 5 — — 159 Structured Finance: Mortgage-backed and home equity 1 — 1 2 12 16 Student loan 1 1 — 9 — 12 Structured insurance 10 — — — — 10 Other 7 — — — — 7 Total Structured Finance 19 1 1 12 12 45 International: Sovereign/sub-sovereign 74 8 — 11 — 93 Investor-owned and public utilities 28 — — — — 28 Other 5 — — — — 5 Total International 107 8 — 11 — 125 Total (1) (2) $ 277 $ 12 $ 6 $ 22 $ 12 $ 329 Surveillance Categories as of December 31, 2020 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 155 $ 13 $ — $ — $ — $ 168 Other 2 15 — — — 17 Total Public Finance 157 27 — — — 185 Structured Finance: Mortgage-backed and home equity 3 — 1 3 15 22 Student loan 3 — 2 11 — 16 Structured insurance 14 — — — — 14 Other 7 — — — — 7 Total Structured Finance 27 — 3 14 15 59 International: Sovereign/sub-sovereign 82 13 — 13 — 108 Investor-owned and public utilities 31 — — — — 31 Other 5 — — — — 5 Total International 118 13 — 13 — 144 Total (2) $ 302 $ 40 $ 3 $ 27 $ 15 $ 387 (1) Excludes specialty property and casualty premium receivables of $2. (2) The underwriting origination dates for all policies included are greater than five years prior to the current reporting date. |
Schedule Of Reinsurance Recoverable And Provision By Category Of Reinsurer | The following table sets forth our three most significant reinsurers by amount of reinsurance recoverable as of December 31, 2021. Reinsurers Type of Insurance Rating (1) Reinsurance Recoverable (2) Unsecured Recoverable (3) QBE Insurance Corporation Specialty P&C A $ 27 $ 27 Assured Guaranty Re Ltd. Financial AA 18 — Sompo Japan Nipponkoa Insurance, Inc. Financial A+ 9 — All other reinsurers 1 5 Total recoverables $ 55 $ 31 (1) Represents financial strength ratings from S&P for financial guarantee reinsurers and AM Best for specialty P&C reinsurers. (2) Represents reinsurance recoverables on paid and unpaid losses. Unsecured amounts from QBE Insurance Corporation is also supported by an unlimited, uncapped indemnity from Enstar Holdings (US). (3) Reinsurance recoverables reduced by ceded premiums payables due to reinsurers, letters of credit, and collateral posted for the benefit of Ambac. |
Summarized Future Gross Undiscounted Premiums Expected to be Collected and Future Expected Premiums Earned, Net of Reinsurance | The table below summarizes the future gross undiscounted financial guarantee premiums to be collected and future premiums earned, net of reinsurance at December 31, 2021: Future Premiums Collected (1) Future to be Earned Net of (2) Three months ended: March 31, 2022 $ 10 $ 7 June 30, 2022 7 7 September 30, 2022 9 7 December 31, 2022 7 7 Twelve months ended: December 31, 2023 32 25 December 31, 2024 30 24 December 31, 2025 29 23 December 31, 2026 28 22 Five years ended: December 31, 2031 113 91 December 31, 2036 75 57 December 31, 2041 32 22 December 31, 2046 15 9 December 31, 2051 5 3 December 31, 2056 — — Total $ 393 $ 303 (1) Future premiums to be collected are undiscounted, gross of allowance for credit losses, and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. (2) Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable as further described in Note 2. Basis of Presentation and Significant Accounting Policies . This results in a different premium receivable balance than if expected lives were considered. If installment paying policies are retired or prepay early, premiums reflected in the premium receivable asset and amounts reported in the above table for such policies may not be collected. Future premiums to be earned also considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral, which may result in different unearned premium than if expected lives were considered. If those bonds types are retired early, premium earnings may be negative in the period of call or refinancing. |
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table | Below are the components of the loss and loss expense reserves and the subrogation recoverable asset at December 31, 2021 and 2020: December 31, 2021: December 31, 2020: Balance Sheet Line Item Claims and Recoveries Unearned Loss and Loss Expense Reserves (1) Claims and Recoveries Unearned Loss and Loss Expense Reserves (1) Loss and loss expense reserves $ 1,781 $ (155) $ (56) $ 1,570 $ 2,060 $ (229) $ (72) $ 1,759 Subrogation recoverable 88 (2,180) — (2,092) 100 (2,256) — (2,156) Totals $ 1,869 $ (2,335) $ (56) $ (522) $ 2,160 $ (2,486) $ (72) $ (397) |
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance | Below is the loss and loss reserve expense roll-forward, net of subrogation recoverable and reinsurance, for the affected periods. Year Ended December 31, 2021 2020 2019 Beginning gross loss and loss expense reserves $ (397) $ (482) $ (107) Reinsurance recoverable 33 26 23 Beginning balance of net loss and loss expense reserves (430) (508) (130) Losses and loss expenses (benefit) incurred: Current year — 15 1 Prior years (89) 210 12 Total (1)(2) (88) 225 13 Loss and loss expenses (recovered) paid: Current year — 1 — Prior years 59 148 318 Total 59 149 318 Foreign exchange effect — 2 (1) Ending net loss and loss expense reserves (577) (430) (436) Impact of VIE consolidation — — (72) Reinsurance recoverable (3) 55 33 26 Ending gross loss and loss expense reserves (522) (397) (482) (1) Total losses and loss expenses (benefit) includes $5, $(11) and $(7) for the years ended December 31, 2021, 2020 and 2019, respectively, related to ceded reinsurance. (2) Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain R&W's by transaction sponsors within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated R&W's recoveries for the year ended December 31, 2021, 2020 and 2019 was $20, $(23) and $42, respectively. (3) Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $0, $1 and $0 as of December 31, 2021, 2020 and 2019, respectively, related to previously presented loss and loss expenses and subrogation. |
Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable | The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at December 31, 2021 and 2020. Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at December 31, 2021 and 2020 was 1.2% and 1.1%, respectively. Surveillance Categories as of December 31, 2021 I IA II III IV V Total Number of policies 34 15 7 14 130 5 205 Remaining weighted-average contract period (in years) (1) 9 12 14 15 13 7 14 Gross insured contractual payments outstanding: Principal $ 904 $ 840 $ 459 $ 1,300 $ 2,759 $ 40 $ 6,302 Interest 589 612 308 169 1,284 22 2,984 Total $ 1,493 $ 1,452 $ 767 $ 1,469 $ 4,043 $ 62 $ 9,286 Gross undiscounted claim liability $ 5 $ 16 $ 45 $ 544 $ 1,423 $ 62 $ 2,095 Discount, gross claim liability — (1) (3) (109) (185) (4) (303) Gross claim liability before all subrogation and before reinsurance $ 5 $ 15 $ 42 $ 435 $ 1,238 $ 57 $ 1,792 Less: Gross RMBS subrogation (2) $ — $ — $ — $ — $ (1,737) $ — $ (1,737) Discount, RMBS subrogation — — — — 7 — 7 Discounted RMBS subrogation, before reinsurance — — — — (1,730) — (1,730) Less: Gross other subrogation (3) — (5) — (33) (583) (12) (633) Discount, other subrogation — — — 2 24 2 28 Discounted other subrogation, before reinsurance — (5) — (31) (559) (10) (605) Gross claim liability, net of all subrogation and discounts, before reinsurance $ 5 $ 10 $ 42 $ 404 $ (1,051) $ 47 $ (543) Less: Unearned premium revenue $ (3) $ (10) $ (5) $ (14) $ (24) $ (1) $ (56) Plus: Loss expense reserves 1 — — 4 40 — 45 Gross loss and loss expense reserves $ 3 $ 1 $ 38 $ 394 $ (1,036) $ 46 $ (554) Reinsurance recoverable reported on Balance Sheet (4) $ 1 $ 1 $ 10 $ 22 $ (11) $ — $ 23 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $24 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation. Surveillance Categories as of December 31, 2020 I IA II III IV V Total Number of policies 40 25 15 15 132 5 232 Remaining weighted-average contract period (in years) (1) 10 18 8 16 14 7 14 Gross insured contractual payments outstanding: Principal $ 842 $ 1,375 $ 595 $ 1,469 $ 3,246 $ 47 $ 7,573 Interest 279 1,011 484 215 1,427 26 3,443 Total $ 1,121 $ 2,386 $ 1,079 $ 1,685 $ 4,673 $ 72 $ 11,016 Gross undiscounted claim liability $ 3 $ 49 $ 40 $ 541 $ 1,690 $ 72 $ 2,395 Discount, gross claim liability — (2) (1) (85) (213) (3) (303) Gross claim liability before all subrogation and before reinsurance $ 3 $ 47 $ 40 $ 456 $ 1,477 $ 69 $ 2,092 Less: Gross RMBS subrogation (2) $ — $ — $ — $ — $ (1,753) $ — $ (1,753) Discount, RMBS subrogation — — — — 3 — 3 Discounted RMBS subrogation, before reinsurance — — — — (1,751) — (1,751) Less: Gross other subrogation (3) — — — (36) (706) (12) (755) Discount, other subrogation — — — 1 18 1 20 Discounted other subrogation, before reinsurance — — — (35) (689) (11) (735) Gross claim liability, net of all subrogation and discounts, before reinsurance $ 3 $ 47 $ 39 $ 421 $ (963) $ 58 $ (394) Less: Unearned premium revenue $ (2) $ (16) $ (5) $ (17) $ (30) $ (1) $ (72) Plus: Loss expense reserves 1 2 1 5 59 — 68 Gross loss and loss expense reserves $ 2 $ 32 $ 35 $ 409 $ (933) $ 57 $ (397) Reinsurance recoverable reported on Balance Sheet (4) $ — $ 6 $ 9 $ 24 $ (6) $ — $ 33 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac's estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $33 related to future loss and loss expenses and $1 related to presented loss and loss expenses and subrogation. |
Summary of Rollforward of RMBS Subrogation, by Estimation Approach | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ntangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below. December 31, 2021 2020 Finite-lived Intangible Assets: Insurance intangible: Gross carrying value $ 1,278 $ 1,281 Accumulated amortization 958 908 Net insurance intangible asset 320 373 Other intangibles: Gross Carrying value 36 36 Accumulated amortization 3 — Net other intangible assets 33 36 Total finite-lived intangible assets $ 353 $ 409 Indefinite-lived Intangible Assets: Insurance licenses $ 9 $ — Total intangible assets $ 362 $ 409 |
Premium Receivable, Allowance for Credit Loss | Below is a rollforward of the premium receivable allowance for credit losses as of December 31, 2021 and 2020: Year Ended December 31, 2021 2020 Beginning balance (1) $ 17 $ 9 Current period provision (2) (6) 9 Write-offs of the allowance (2) (2) Ending balance $ 9 $ 17 (1) At January 1, 2020, $9 of premiums receivable were deemed uncollectible as determined under prior GAAP rules. (2) The year ended December 31, 2020, includes $3 from the adoption of CECL. |
Schedule of Financial Guarantee Insurance In Force By Bond Type | As of December 31, 2021 and 2020, the financial guarantee portfolio consisted of the types of guaranteed bonds as shown in the following table: Net Par Outstanding December 31, (1) 2021 2020 Public Finance: Housing revenue (2) $ 5,610 $ 5,855 Lease and tax-backed revenue 3,196 4,179 General obligation 1,612 2,345 Other 1,942 3,118 Total Public Finance 12,360 15,497 Structured Finance: Mortgage-backed and home equity 2,724 3,635 Investor-owned utilities 1,556 1,617 Other 624 1,085 Total Structured Finance 4,904 6,337 International Finance: Sovereign/sub-sovereign 5,141 5,270 Investor-owned and public utilities 3,283 3,899 Asset-backed and other 1,276 1,374 Transportation 1,056 1,511 Total International Finance 10,756 12,054 Total $ 28,020 $ 33,888 (1) Net Par Outstanding includes capital appreciation bonds, which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. (2) Includes $5,490 and $5,575 of Military Housing net par at December 31, 2021 and 2020, respectively. |
Premiums Receivable for Financial Guarantees | Below is the gross premium receivable roll-forward (direct and assumed contracts) for the affected periods: Year Ended December 31, 2021 2020 2019 Beginning premium receivable $ 370 $ 416 $ 495 Adjustment to initially apply ASU 2016-13 — (3) — Premium receipts (35) (46) (48) Adjustments for changes in expected and contractual cash flows (1) (27) (6) (38) Accretion of premium receivable discount 8 9 11 Deconsolidation of certain VIEs — — 3 Changes to allowance for credit losses 8 (4) (2) Other adjustments (including foreign exchange) (4) 5 (6) Ending premium receivable (2) $ 320 $ 370 $ 416 (1) Adjustments for changes in expected and contractual cash flows are primarily due to reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables summarize the gross fair values of individual derivative instruments and the impact of legal rights of offset as reported in the Consolidated Balance Sheets as of December 31, 2021 and 2020. Gross Gross Net Amounts Gross Amount Net Amount December 31, 2021: Derivative Assets: Interest rate swaps $ 76 $ — $ 76 $ — $ 76 Total non-VIE derivative assets $ 76 $ — $ 76 $ — $ 76 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 94 — 94 93 1 Total non-VIE derivative liabilities $ 95 $ — $ 95 $ 93 $ 2 Variable Interest Entities Derivative Assets: Currency swaps $ 38 $ — $ 38 $ — $ 38 Total VIE derivative assets $ 38 $ — $ 38 $ — $ 38 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,940 $ — $ 1,940 $ — $ 1,940 Total VIE derivative liabilities $ 1,940 $ — $ 1,940 $ — $ 1,940 December 31, 2020: Derivative Assets: Interest rate swaps $ 93 $ — $ 93 $ — $ 93 Total non-VIE derivative assets $ 93 $ — $ 93 $ — $ 93 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 114 — 114 113 1 Total non-VIE derivative liabilities $ 114 $ — $ 114 $ 113 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 41 $ — $ 41 $ — $ 41 Total VIE derivative assets $ 41 $ — $ 41 $ — $ 41 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,835 $ — $ 1,835 $ — $ 1,835 Total VIE derivative liabilities $ 1,835 $ — $ 1,835 $ — $ 1,835 |
Summary of Location and Amount of Gains and Losses of Derivative Contracts | The following tables summarize the location and amount of gains and losses of derivative contracts in the Consolidated Statements of Total Comprehensive Income (Loss) for the years ended December 31, 2021, 2020 and 2019: Location of Gain (Loss) Recognized Amount of Gain (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) – 2021 2020 2019 Non-VIE derivatives: Credit derivatives Net gains (losses) on derivative contracts $ — $ — $ 2 Interest rate swaps Net gains (losses) on derivative contracts 13 (9) (6) Futures contracts Net gains (losses) on derivative contracts 9 (41) (45) Total non-VIE derivatives 22 (50) (50) Variable Interest Entities: Currency swaps Income (loss) on variable interest entities 2 (6) (12) Interest rate swaps Income (loss) on variable interest entities (152) (138) (20) Total Variable Interest Entities (150) (144) (32) Total derivative contracts $ (128) $ (193) $ (82) |
Summary of Notional Amounts of AFS's Trading Derivative Products | As of December 31, 2021 and 2020, the notional amounts of AFS's derivatives are as follows: Notional - December 31, Type of Derivative 2021 2020 Interest rate swaps—pay-fixed/receive-variable $ 1,275 $ 726 US Treasury futures contracts—short 470 240 Interest rate swaps—receive-fixed/pay-variable 185 195 |
Variable Interest Entity [Member] | |
Summary of Notional Amounts of AFS's Trading Derivative Products | The notional for VIE derivatives outstanding as of December 31, 2021 and 2020, were as follows: Notional - December 31, Type of VIE Derivative 2021 2020 Interest rate swaps—receive-fixed/pay-variable $ 1,221 $ 1,233 Interest rate swaps—pay-fixed/receive-variable 1,069 1,151 Currency swaps 272 308 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statement of Financial Position [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ntangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below. December 31, 2021 2020 Finite-lived Intangible Assets: Insurance intangible: Gross carrying value $ 1,278 $ 1,281 Accumulated amortization 958 908 Net insurance intangible asset 320 373 Other intangibles: Gross Carrying value 36 36 Accumulated amortization 3 — Net other intangible assets 33 36 Total finite-lived intangible assets $ 353 $ 409 Indefinite-lived Intangible Assets: Insurance licenses $ 9 $ — Total intangible assets $ 362 $ 409 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss), as shown below. Year ended December 31, 2021 2020 2019 Insurance intangible $ 52 57 $ 295 Other intangible 3 — — Total $ 55 $ 57 $ 295 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for intangible assets is as follows: Insurance Intangible Asset (1) Other Intangible Assets (1) Total 2022 $ 34 $ 3 $ 36 2023 30 3 33 2024 28 3 31 2025 25 3 28 2026 23 2 25 Thereafter 180 20 200 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 2019 Net change in fair value of VIE assets and liabilities reported under the fair value option $ 4 $ (1) $ 13 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 5 (3) 14 Investment income on available-for-sale securities 6 7 10 Net realized investment gains (losses) on available-for-sale securities 2 8 13 Interest expense on long-term debt carried at par less unamortized cost (6) (6) (11) Other expenses (1) — (1) Gain (loss) from consolidating FG VIEs — — 15 Gain (loss) from de-consolidating FG VIEs — — (2) Income (loss) on variable interest entities $ 7 $ 5 $ 38 |
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, 2021 and 2020: Carrying Value of Assets and Liabilities Maximum (1) Insurance (2) Insurance (3) Net Derivative (Liabilities) (4) December 31, 2021: Global structured finance: Mortgage-backed—residential $ 3,265 $ 1,929 $ 521 $ — Other consumer asset-backed 788 17 234 — Other 826 3 10 5 Total global structured finance 4,879 1,949 765 5 Global public finance 20,233 246 257 — Total $ 25,112 $ 2,195 $ 1,023 $ 5 December 31, 2020: Global structured finance: Mortgage-backed—residential $ 4,308 $ 2,024 $ 580 $ — Other consumer asset-backed 1,050 24 239 — Other 994 3 15 8 Total global structured finance 6,352 2,051 834 8 Global public finance 21,646 263 287 — Total $ 27,998 $ 2,314 $ 1,122 $ 8 (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 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 credit derivative contracts and interest rate swaps on Ambac’s Consolidated Balance Sheets. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Instrument [Line Items] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Aggregated annual maturities of non-VIE long-term debt obligations (based on scheduled maturity dates as further discussed below) are as follows: 2022 $ 785 (1) 2023 — 2024 — 2025 — 2026 1,175 Thereafter 373 Total $ 2,334 |
Schedule of Long-term Debt Instruments | Long-term debt outstanding, excluding VIE long-term debt, was as follows: December 31, 2021 2020 Par Value Unamortized Discount Carrying Value Par Value Unamortized Discount Carrying Value Ambac Assurance: 5.1% Surplus Notes $ 785 $ (56) $ 729 $ 531 $ — $ 531 5.1% Junior Surplus Notes — — — 365 (118) 247 LSNI Ambac Note — — — 1,641 — 1,641 Sitka AAC Note 1,175 (21) $ 1,154 — — — Tier 2 Notes 333 — 333 306 — 306 Ambac UK Debt 41 (26) 15 41 (27) 14 Long-term debt $ 2,334 $ (104) $ 2,230 $ 2,884 $ (145) $ 2,739 |
Revenue from Contract with Cu_2
Revenue from Contract with Customer (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | he following table presents the MGA/U business operations revenues recognized in accordance with the Revenue from Contracts with Customers Topic of the ASC disaggregated by policy type for the twelve months ended December 31, 2021: Employer Stop Loss Affinity Other Total Gross commissions $ 8 $ 18 $ — $ 26 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable | The balances of contract assets and contract liabilities with customers were as follows: December 31, 2021 2020 Commissions receivable $ 2 $ 2 Contract assets 4 5 Contract liabilities 1 1 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Changes in Balances of Each Component of Accumulated Other Comprehensive Income | The following tables detail the changes in the balances of each component of accumulated other comprehensive income for the affected periods: Unrealized Gains (1) Amortization of (1) Gain (Loss) on (1) Credit Risk Changes of Fair Value Option Liabilities (1) (2) Total Year ended December 31, 2021: Beginning Balance $ 166 $ 5 $ (92) $ — $ 79 Other comprehensive income (loss) before reclassifications (5) — (8) — (13) Amounts reclassified from accumulated other comprehensive income (loss) (7) (1) — (1) (9) Net current period other comprehensive income (loss) (12) (1) (8) (1) (21) Balance at December 31, 2021 $ 154 $ 4 $ (100) $ (1) $ 58 Year ended December 31, 2020: Beginning Balance $ 151 $ 8 $ (116) $ (2) $ 42 Other comprehensive income before reclassifications 36 (2) 23 — 58 Amounts reclassified from accumulated other comprehensive income (21) (1) — 1 (21) Net current period other comprehensive income (loss) 15 (3) 23 1 37 Balance at December 31, 2020 $ 166 $ 5 $ (92) $ — $ 79 (1) All amounts are net of tax and noncontrolling interest. Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income. (2) Represents the changes in fair value attributable to instrument-specific credit risk of liabilities for which the fair value option is elected. |
Schedule of Amounts Reclassed Out of Each Component of Accumulated Other Comprehensive Income | The following table details the significant amounts reclassified from each component of accumulated other comprehensive income, shown in the above rollforward tables, for the affected periods: Details about Accumulated Other Amount Reclassified from Accumulated Affected Line Item in the Year Ended December 31, 2021 2020 Unrealized Gains (Losses) on Available-for-Sale Securities (1) $ (7) $ (22) Net realized investment gains (losses) (1) 1 Provision for income taxes $ (7) $ (21) Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ (1) $ (1) Other income Actuarial gains (losses) — — Other income (1) (1) Total before tax — — Provision for income taxes $ (1) $ (1) Net of tax and noncontrolling interest Credit Risk Changes of Fair Value Option Liabilities $ (1) $ 2 Credit risk changes of fair value option liabilities — — Provision for income taxes (1) 1 Net of tax and noncontrolling interest Total reclassifications for the period $ (9) $ (21) Net of tax and noncontrolling interest |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share: Year Ended 2021 2020 2019 Basic weighted average shares outstanding 46,535,001 46,147,062 45,954,908 Effect of potential dilutive shares (1) : Warrants — — — Stock options — — — Restricted stock units — — — Performance stock units (2) — — — Diluted weighted average shares outstanding 46,535,001 46,147,062 45,954,908 Anti-dilutive shares excluded from the above reconciliation Warrants 4,877,653 4,877,754 4,877,783 Stock options — 16,121 16,667 Restricted stock units 475,333 302,145 249,263 Performance stock units (2) 700,915 1,002,501 872,258 (1) For the years ended years ended December 31, 2021, 2020 and 2019 , Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. (2) Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Major Jurisdictions | The following are the major jurisdictions in which Ambac and its subsidiaries operate and the earliest tax years subject to examination: Jurisdiction Tax Year United States 2010 New York State 2013 New York City 2017 United Kingdom 2018 Italy 2017 |
Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at December 31, 2021 and 2020, are presented below: December 31, 2021 2020 Deferred tax liabilities: Insurance intangible $ 67 $ 78 Unearned premiums and credit fees 32 32 Investments 14 22 Variable interest entities 15 13 Other 6 7 Total deferred tax liabilities 134 152 Deferred tax assets: Net operating loss carryforward 786 764 Loss reserves 180 218 State capital loss carryforward 7 — Debentures 7 22 Compensation 8 9 Other 4 5 Subtotal deferred tax assets 993 1,019 Valuation allowance 886 891 Total deferred tax assets 106 128 Net deferred tax liability $ 28 $ 24 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | U.S. and foreign components of pre-tax income (loss) were as follows: Year Ended December 31, 2021 2020 2019 U.S. $ (32) $ (441) $ (174) Foreign 34 1 (9) Total $ 2 $ (440) $ (183) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision (benefit) for income taxes were as follows: Year Ended December 31, 2021 2020 2019 Current taxes U.S. state and local $ 2 $ — $ (3) Foreign 10 8 37 Total current taxes 12 8 34 Deferred taxes Foreign 6 (10) (1) Total deferred taxes $ 6 $ (10) $ (1) Provision for income taxes $ 18 $ (3) $ 32 |
Schedule Of Income Taxes Charged Credited Directly To Equity | The total effect of income taxes on net income and stockholders’ equity for the years ended December 31, 2021, 2020 and 2019 is as follows: Year Ended December 31, 2021 2020 2019 Total income taxes charged to net income $ 18 $ (3) $ 32 Income taxes charged (credited) to stockholders’ equity: Unrealized gains (losses) on investment securities (3) 3 14 Unrealized gains (losses) on foreign currency translations — — — Valuation allowance to equity 1 (3) (23) Total charged to stockholders’ equity: (2) 1 (8) Total effect of income taxes $ 16 $ (1) $ 24 |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2021 2020 2019 Total income taxes charged to net income $ 18 $ (3) $ 32 Income taxes charged (credited) to stockholders’ equity: Unrealized gains (losses) on investment securities (3) 3 14 Unrealized gains (losses) on foreign currency translations — — — Valuation allowance to equity 1 (3) (23) Total charged to stockholders’ equity: (2) 1 (8) Total effect of income taxes $ 16 $ (1) $ 24 Reconciliation of U.S. Federal Statutory Income Tax Rate to Actual Income Tax Rate The tax provisions in the accompanying Consolidated Statements of Total Comprehensive Loss reflect effective tax rates differing from prevailing Federal corporate income tax rates. The following is a reconciliation of these differences: Year Ended December 31, 2021 2020 2019 Tax on income (loss) at statutory rate $ — 21 % $ (92) 21 % $ (38) 21 % Changes in expected tax resulting from: Tax-exempt interest (2) (114) % (2) — % (3) 2 % Foreign taxes 8 448 % 6 (1) % 40 (22) % State Income Taxes 14 794 % — — % (2) 1 % Substantiation adjustment — — % (29) 7 % 28 (15) % Valuation allowance (4) (230) % 113 (26) % 8 (4) % Other, net 1 72 % 2 — % — — % Tax expense on income (loss) $ 18 991 % $ (3) 1 % $ 32 (18) % |
Schedule of Net Operating Loss And Tax Credit Carryovers | Pursuant to a 2013 Closing Agreement between Ambac and the United States Internal Revenue Service ("IRS"), AAC could have to pay amount to as much as $8 to the IRS should AAC utilize NOLs available to it as of December 31, 2019. |
Employment Benefit Plans (Table
Employment Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Schedule of Expected Benefit Payments [Table Text Block] | The following table sets forth projected benefit payments from Ambac’s postretirement plan over the next ten years for current retirees: 2022 $ — 2023 — 2024 — 2025 1 2026 1 2025-2029 3 Total $ 5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | The amount of stock-based compensation expense and corresponding after-tax expense are as follows: Year Ended December 31, 2021 2020 2019 Restricted stock units 5 3 4 Performance awards 10 8 8 Total stock-based compensation $ 14 $ 11 $ 12 Total stock-based compensation (after-tax) $ 14 $ 11 $ 12 |
Share-based Payment Arrangement, Restricted Stock Unit, Activity [Table Text Block] | A summary of RSU activity for 2021 is as follows: Shares Weighted Average Grant Date Fair Value Outstanding at beginning of period 773,657 $ 18.04 Granted 345,829 $ 17.39 Delivered or returned to plan (1) (280,672) $ 17.89 Forfeited (1,744) $ 18.34 Outstanding at end of period 837,070 $ 17.82 (1) When restricted stock unit awards issued by Ambac become taxable compensation to employees, shares may be withheld to cover the employee’s withholding taxes. For the year ended December 31, 2021, Ambac purchased 88,723 of shares from employees that settled restricted stock units to meet the required tax withholdings. |
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | A summary of PSU activity for 2021 is as follows: Shares Weighted Average Grant Date Fair Value Outstanding at beginning of period 844,514 $ 18.09 Granted (1) 396,202 18.12 Delivered (2) (804,217) 16.23 Forfeited (4,355) 19.10 Performance adjustment (3) 289,912 15.09 Outstanding at end of period 722,056 $ 18.97 (1) Represents performance share units at 100% of units granted for LTIP Awards. (2) Reflects the number of performance shares attributable to the performance goals attained over the completed performance period and for which service conditions have been met. When performance stock unit awards issued by Ambac become taxable compensation to employees, shares may be withheld to cover the employee’s withholding taxes. For the year ended December 31, 2021, Ambac purchased 276,777 of shares from employees that settled performance based restricted stock units to meet the required tax withholdings. (3) Represents the number of additional shares issued for awards granted in 2018 as a result of actual performance during the performance period. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Future undiscounted lease payments to be received are as follows: As of December 31, 2021 Operating Leases 2022 $ 1 2023 1 2024 1 2025 1 2026 1 Thereafter 4 Total lease receipts $ 10 |
Lease, Cost [Table Text Block] | The components of lease costs, net of sub-lessor income, is as follows: Year Ended December 31, 2021 2020 Operating lease cost $ 5 $ 4 Variable lease cost — — Sublease income (1) (1) Total lease cost $ 4 $ 4 Ambac is required to make variable lease payments under certain leases which primarily relates to variable costs of the lessor, such as taxes, insurance, maintenance and electricity. Supplemental information related to leases is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 5 $ 4 Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) — — Supplemental balance sheet information related to leases is as follows: December 31, 2021 2020 Operating leases: Operating lease right of use assets $ 23 $ 25 Operating lease liabilities 28 30 Weighted average remaining lease term: Operating leases 7.7 years 8.7 years Weighted average discount rate: Operating leases 7.7 % 7.7 % |
Cash Flow, Supplemental Disclosures [Text Block] | Supplemental information related to leases is as follows: Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 5 $ 4 Right-of-use assets obtained in exchange for operating lease liabilities (non-cash) — — |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Future undiscounted lease payments, gross of sublease receipts, to be made are as follows: As of December 31, 2021 Operating Leases 2022 $ 5 2023 5 2024 5 2025 5 2026 4 Thereafter 14 Total lease payments 37 Less: imputed interest (9) Total $ 28 |
Schedule of Supplemental Cash Flow Information [Table Text Block] | Supplemental Disclosure of Cash Flow Information Year Ended December 31, 2021 2020 2019 Cash paid during the period for: Income taxes $ 15 $ 11 $ 21 Interest on long-term debt 80 107 143 Non-cash investing and financing activities: Decrease in long-term debt as a result of surplus notes exchanges 71 — — December 31, 2021 2020 2019 Reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets to the Consolidated Statements of Cash Flow: Cash and cash equivalents $ 17 $ 20 $ 24 Restricted cash 5 13 55 Variable Interest Entity Restricted cash 2 2 2 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows 23 35 81 |
Background and Business Descr_2
Background and Business Description Rehabilitation Exit Support Agreement (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 1991 | Dec. 31, 2015 | Dec. 31, 2021 | Dec. 31, 2020 | May 01, 2013 | Apr. 30, 2013 |
Preferred Stock, Shares Outstanding | 0 | 0 | ||||
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 | |||||
Common stock, shares authorized | 130,000,000 | 130,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | ||||
Common stock, shares issued | 46,477,068 | 45,865,081 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 16.67 | |||||
Common Stock Voting Restrictions | 10.00% | |||||
Common Stock Voting Restriction Less One Vote | 10.00% | |||||
Common Stock Transfer Restrictions | 5.00% | |||||
Common Stock Additional Transfer Restrictions | 5.00% | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 60 | $ 60 | ||||
Market Value of Secured Note Collateral | $ 0 | $ 178 | ||||
Ambac Assurance Corporation [Member] | ||||||
Preferred Stock, Shares Outstanding | 5,501 | 5,501 | ||||
Preferred Stock, Liquidation Preference, Value | $ 138 | $ 138 | ||||
Long-term Debt [Member] | ||||||
Gain Contingency, Unrecorded Amount | $ 1,400 |
Background and Business Descr_3
Background and Business Description Tier 2 Commitment (Details) $ in Millions | Feb. 12, 2018USD ($) |
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600 |
Background and Basis of Present
Background and Basis of Presentation - Surplus Note Exchange (Details) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Feb. 11, 2021USD ($) | Jan. 19, 2021USD ($) | |
Insurance [Line Items] | ||||||
Net realized gains (losses) on extinguishment of debt | $ 33,000,000 | $ 0 | $ 0 | |||
Realized Investment Gains (Losses) | 7,000,000 | 22,000,000 | 81,000,000 | |||
Parent Company [Member] | ||||||
Insurance [Line Items] | ||||||
Realized Investment Gains (Losses) | (5,000,000) | (1,000,000) | $ (2,000,000) | |||
Parent [Member] | ||||||
Insurance [Line Items] | ||||||
Realized Investment Gains (Losses) | 4,000,000 | |||||
Ambac Assurance Corporation [Member] | ||||||
Insurance [Line Items] | ||||||
Long-term Debt, Gross | $ 2,334,000,000 | $ 2,334,000,000 | $ 2,884,000,000 | |||
Ambac Assurance Corporation [Member] | 5.1 % Surplus Notes Due 2020 [Member] | ||||||
Insurance [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% | |||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes Due 2020 [Member] | ||||||
Insurance [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% | |||
Ambac Assurance Corporation [Member] | Corolla Notes | ||||||
Insurance [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | |||||
5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Ambac Assurance Corporation [Member] | ||||||
Insurance [Line Items] | ||||||
Long-term Debt, Gross | $ 0 | $ 0 | $ 365,000,000 | |||
5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Ambac Assurance Corporation [Member] | Lease Reducing Notes | ||||||
Insurance [Line Items] | ||||||
Long-term Debt Reduced in Exchange | $ 15,000,000 | |||||
5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Ambac Assurance Corporation [Member] | Corolla Notes | ||||||
Insurance [Line Items] | ||||||
Payment Amount in Exchange | $ 0.9125 | |||||
Note Holders | 1 | |||||
5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Ambac Assurance Corporation [Member] | Corolla Certificate | ||||||
Insurance [Line Items] | ||||||
One Dollar Outstanding | 1 | |||||
Payment Amount in Exchange | 0.64 | |||||
5.1% Surplus Notes, General Account, Due 2020 [Member] | Ambac Assurance Corporation [Member] | ||||||
Insurance [Line Items] | ||||||
Long-term Debt, Gross | $ 785,000,000 | $ 785,000,000 | $ 531,000,000 | |||
5.1% Surplus Notes, General Account, Due 2020 [Member] | Ambac Assurance Corporation [Member] | Corolla Notes | ||||||
Insurance [Line Items] | ||||||
Long-term Debt Issued in Exchange Transaction | 267,000,000 | |||||
Corolla Notes | Ambac Assurance Corporation [Member] | ||||||
Insurance [Line Items] | ||||||
One Dollar Outstanding | 1 | |||||
Lease Reducing Notes | Ambac Assurance Corporation [Member] | ||||||
Insurance [Line Items] | ||||||
One Dollar Outstanding | 1 | |||||
Payment Amount in Exchange | $ 0.8581 | |||||
Long-term Debt Issued in Exchange Transaction | $ 13,000,000 | |||||
Lease Reducing Notes | Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes Due 2020 [Member] | ||||||
Insurance [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% |
Background and Business Descr_4
Background and Business Description AMPS Exchange (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | May 01, 2013 |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 60 | $ 60 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 16.67 | ||
Preferred Stock, Shares Outstanding | 0 | 0 | |
Ambac Assurance Corporation [Member] | |||
Preferred Stock, Liquidation Preference, Value | $ 138 | $ 138 | |
Preferred Stock, Shares Outstanding | 5,501 | 5,501 |
Background and Business Descr_5
Background and Business Description - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 1991 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | Jul. 06, 2021 | Feb. 12, 2018 | May 01, 2013 | Apr. 30, 2013 |
Background And Basis Of Presentation [Line Items] | |||||||||
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 | ||||||||
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600 | ||||||||
Common stock, shares authorized | 130,000,000 | 130,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||||||
Common stock, shares issued | 46,477,068 | 45,865,081 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 16.67 | ||||||||
Common Stock Voting Restrictions | 10.00% | ||||||||
Common Stock Voting Restriction Less One Vote | 10.00% | ||||||||
Common Stock Transfer Restrictions | 5.00% | ||||||||
Common Stock Additional Transfer Restrictions | 5.00% | ||||||||
Financial Guarantee Insurance Contracts, Accelerated Premium Revenue, Amount | $ 1 | $ 12 | $ 10 | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||||||||
LIBOR + 4.5% Senor Secured Notes Due 2026 | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Background And Basis Of Presentation [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||||||
LSNI Secured Notes due 2023 | |||||||||
Background And Basis Of Presentation [Line Items] | |||||||||
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | $ 1,163 | ||||||||
Sitka Holdings, LLC | LIBOR + 4.5% Senor Secured Notes Due 2026 | |||||||||
Background And Basis Of Presentation [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 1,175 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Apr. 29, 1991 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | Jun. 30, 2020 | Jul. 01, 2019 | Dec. 31, 2018 | Apr. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Operating Lease, Liability | $ 28 | $ 28 | $ 30 | |||||||
Income Taxes Paid | $ 15 | $ 11 | $ 21 | |||||||
Common Stock Voting Restrictions | 10.00% | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | |||||||||
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 | |||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |||||||
Common stock, shares issued | 46,477,068 | 46,477,068 | 45,865,081 | |||||||
Warrant Exercised During Period Shares | 132 | 34 | 0 | |||||||
Common Stock Transfer Restrictions | 5.00% | |||||||||
Common Stock Additional Transfer Restrictions | 5.00% | |||||||||
Cash and cash equivalents | $ 17 | $ 17 | $ 20 | $ 24 | ||||||
Restricted Cash | 5 | 5 | 13 | 55 | ||||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 23 | 23 | 35 | 81 | $ 83 | |||||
UK Income Tax Rate | 17.00% | 19.00% | ||||||||
Restricted Cash | $ 5 | $ 5 | $ 13 | 55 | ||||||
Weighted average period of future premiums | 8 years | 8 years 3 months 18 days | ||||||||
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.20% | 2.20% | 2.20% | |||||||
Business Combination, Redeemable Noncontrolling Percentage | 20.00% | 20.00% | ||||||||
Xchange | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years | |||||||||
Restricted Cash | $ 5 | $ 5 | $ 4 | |||||||
Restricted Cash | 5 | $ 5 | 4 | |||||||
Minimum [Member] | Furniture and Fixtures [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | |||||||||
Maximum [Member] | Furniture and Fixtures [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||||||||
Long-term Debt [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 80 | 107 | 143 | |||||||
Fixed Income Securities [Member] | ||||||||||
Investment income due and accrued | 10 | 10 | 10 | |||||||
Investment income due and accrued | 10 | 10 | 10 | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Restricted Cash | 2 | 2 | 2 | 2 | ||||||
Restricted Cash | $ 2 | $ 2 | $ 2 | $ 2 | ||||||
Estimated Future Premium Payments Weighted Average Discounted Rate | 3.00% | 3.00% | 2.40% |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies FX gain (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (7) | $ (1) | $ 12 |
Gain (Loss) on Investments [Member] | |||
Foreign Currency Transaction Gain (Loss), before Tax | $ (5) | $ (4) | $ 22 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible assets | $ 362 | $ 409 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | |
Impairment of Intangible Assets, Finite-lived | 0 | |
PWIC | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 9 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies Noncontrolling Interest (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | |
Stockholders' Equity Attributable to Noncontrolling Interest | $ 60 | $ 60 |
Preferred Stock, Shares Outstanding | shares | 0 | 0 |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 18 | $ 7 |
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | $ 7 | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | (1) | |
Temporary Equity, Accretion to Redemption Value, Adjustment | $ 12 | |
Ambac Assurance Corporation [Member] | ||
Preferred Stock, Shares Outstanding | shares | 5,501 | 5,501 |
Preferred Stock, Liquidation Preference, Value | $ 138 | $ 138 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Dividend Rate on Auction Rate Preferred Shares | 200 |
Basis of Presentation and Sig_8
Basis of Presentation and Significant Accounting Policies Incentive Compensation (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Twelve Months from Award Date [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Twenty Four Months from Award Date [Domain] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% |
Basis of Presentation and Sig_9
Basis of Presentation and Significant Accounting Policies Adoption of New Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Lease, Liability | $ 28 | $ 30 |
Basis of Presentation and Si_10
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes Paid | $ 15 | $ 11 | $ 21 | |
Cash and cash equivalents | 17 | 20 | 24 | |
Restricted Cash | 5 | 13 | 55 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 23 | 35 | 81 | $ 83 |
Reduction in Long-term Debt Through Long-term Debt Exchange | 71 | |||
Long-term Debt [Member] | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 80 | 107 | 143 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Restricted Cash | $ 2 | $ 2 | $ 2 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 81 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 18 | 18 | $ 7 |
2018 | 36 | 36 | |
2019 | 33 | 33 | |
2020 | 31 | 31 | |
2021 | 28 | 28 | |
2022 | 25 | 25 | |
Thereafter | $ 200 | 200 | |
Business Combination Goodwill, Expected Tax Deductible Amount, Accumulated Amortization | $ 4 | ||
Distribution Relationships | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||
Non-compete Agreements | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 8 years | ||
Distribution Relationships | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 33 | ||
Non-compete Agreements | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1 | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-Lived Intangible Assets, Gross | 1 | ||
Xchange | |||
Business Acquisition [Line Items] | |||
Business Combination, Consideration Transferred | $ 81 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 2 | ||
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedrResstrictedCash | 4 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 36 | ||
Goodwill, Acquired During Period | $ 46 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 96 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 8 | ||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 7 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 65 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,140 | |
Gross Unrealized Gains | 141 | $ 149 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16 | 8 |
Available-for-sale Securities, Current | 2,265 | 2,949 |
Estimated Fair Value | 2,265 | |
Available-for-sale Securities, Amortized Cost Basis | 2,140 | 2,807 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16 | 8 |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Estimated Fair Value | 414 | 492 |
Available-for-sale Securities, Amortized Cost Basis | 415 | 492 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,605 | 2,175 |
Gross Unrealized Gains | 141 | 149 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16 | 8 |
Estimated Fair Value | 1,730 | 2,317 |
Available-for-sale Securities, Amortized Cost Basis | 1,605 | 2,175 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16 | 8 |
Fixed Income Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 28 | 37 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 3 | 0 |
Estimated Fair Value | 340 | 358 |
Available-for-sale Securities, Amortized Cost Basis | 315 | 321 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 3 | 0 |
Fixed Income Securities [Member] | Corporate Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 10 | 24 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 9 | 6 |
Estimated Fair Value | 613 | 1,077 |
Available-for-sale Securities, Amortized Cost Basis | 612 | 1,059 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 9 | 6 |
Fixed Income Securities [Member] | Debt Security, Government, Non-US [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 0 | 1 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 2 | 0 |
Estimated Fair Value | 87 | 98 |
Available-for-sale Securities, Amortized Cost Basis | 89 | 97 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 2 | 0 |
Fixed Income Securities [Member] | U.S. Government Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 1 | 2 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1 | 1 |
Estimated Fair Value | 45 | 106 |
Available-for-sale Securities, Amortized Cost Basis | 45 | 105 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 1 | 1 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 182 | |
Gross Unrealized Gains | 70 | 46 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Estimated Fair Value | 252 | 302 |
Available-for-sale Securities, Amortized Cost Basis | 182 | 256 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 128 | |
Gross Unrealized Gains | 0 | 0 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Estimated Fair Value | 128 | 74 |
Available-for-sale Securities, Amortized Cost Basis | 128 | 74 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 234 | |
Gross Unrealized Gains | 32 | 40 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Estimated Fair Value | 265 | 303 |
Available-for-sale Securities, Amortized Cost Basis | 234 | 263 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Investments And Other Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 141 | 149 |
Estimated Fair Value | 2,145 | 2,809 |
Available-for-sale Securities, Amortized Cost Basis | 2,020 | 2,667 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 16 | 8 |
Collateral Pledged [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 120 | 140 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15 | 15 |
Gross Unrealized Gains | 0 | 0 |
Estimated Fair Value | 15 | 15 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Estimated Fair Value | 105 | 125 |
Available-for-sale Securities, Amortized Cost Basis | 105 | 125 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | US Treasury and Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Estimated Fair Value | 15 | 15 |
Available-for-sale Securities, Amortized Cost Basis | 15 | 15 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Asset Pledged as Collateral [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 120 | 140 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 | $ 0 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments Held by Successor Ambac, by Contractual Maturity (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Due in one year or less | $ 565 | |
Amortized Cost, Due after one year through five years | 457 | |
Amortized Cost, Due after five years through ten years | 406 | |
Amortized Cost, Due after ten years | 168 | |
Amortized Cost, Total | 1,596 | |
Fixed income securities, amortized cost | 2,140 | |
Estimated Fair Value, Due in one year or less | 565 | |
Estimated Fair Value, Due after one year through five years | 457 | |
Estimated Fair Value, Due after five years through ten years | 411 | |
Estimated Fair Value, Due after ten years | 188 | |
Estimated Fair Value due, Total | 1,620 | |
Debt Securities, Available-for-sale | 2,265 | |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income securities, amortized cost | 1,605 | $ 2,175 |
Debt Securities, Available-for-sale | 1,730 | 2,317 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income securities, amortized cost | 182 | |
Debt Securities, Available-for-sale | 252 | 302 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income securities, amortized cost | 128 | |
Debt Securities, Available-for-sale | 128 | 74 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed income securities, amortized cost | 234 | |
Debt Securities, Available-for-sale | $ 265 | $ 303 |
Investments - Summary of Gross
Investments - Summary of Gross Unrealized Losses and Fair Values of Ambac's Available-for-Sale Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 768 | $ 816 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 41 | 25 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 810 | 841 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16 | 8 |
Debt Securities, Available for sale, Unrealized Loss Position, Including Pledged Securities | 825 | |
Debt Securities , Available for sale, Continuous Unrealized Loss Position, | 783 | |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 114 | 187 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 13 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 128 | 187 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 654 | 629 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 14 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 28 | 25 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 682 | 654 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16 | 8 |
Fixed Income Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 117 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 3 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2 | 6 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 118 | 31 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 3 | 0 |
Fixed Income Securities [Member] | US Government Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 25 | 17 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 27 | 17 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1 | 1 |
Fixed Income Securities [Member] | US Government Debt Securities [Member] | Asset Pledged as Collateral [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 15 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 15 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | |
Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 363 | 543 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 8 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 17 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 380 | 543 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 9 | 6 |
Fixed Income Securities [Member] | Debt Security, Government, Non-US [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 75 | 3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 78 | 3 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 2 | 0 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 14 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 1 | 0 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2 | 14 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 68 | 27 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3 | 15 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 71 | 42 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 6 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 4 |
Available For Sale Securities Continuous Unrealized Loss Position 12 Months Or Longer Aggregate Losses Accumulated In Investments | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6 | 4 |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | $ 0 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Reported Value Measurement [Member] | ||
Investment [Line Items] | ||
Other Investments | $ 106,000,000 | $ 89,000,000 |
Reported Value Measurement [Member] | Interest Rate Contract [Member] | ||
Investment [Line Items] | ||
Other Investments | 0 | 3,000,000 |
Reported Value Measurement [Member] | Equity [Member] | ||
Investment [Line Items] | ||
Other Investments | 82,000,000 | 60,000,000 |
Reported Value Measurement [Member] | Emerging Market Debt [Member] | ||
Investment [Line Items] | ||
Other Investments | 24,000,000 | 25,000,000 |
Other Investments | 690,000,000 | 595,000,000 |
Securities fair value | 17,000,000 | 8,000,000 |
Market Value of Secured Note Collateral | 0 | 178,000,000 |
Fair Value of Securities Deposited in Connection wtih Letter of Credit | 1,000,000 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Equity Securities Excluded From Fair Value | 8,000,000 | 0 |
Real Estate [Member] | ||
Investment [Line Items] | ||
Other Investments | 33,000,000 | 16,000,000 |
Hedge Funds, Multi-strategy [Member] | ||
Investment [Line Items] | ||
Other Investments | 216,000,000 | 196,000,000 |
Interest Rate Contract [Member] | ||
Investment [Line Items] | ||
Other Investments | 78,000,000 | 78,000,000 |
Illiquid Investments [Member] | ||
Investment [Line Items] | ||
Other Investments | 88,000,000 | 65,000,000 |
Insurance Linked [Member] | ||
Investment [Line Items] | ||
Other Investments | 2,000,000 | 3,000,000 |
Equity [Member] | ||
Investment [Line Items] | ||
Other Investments | 98,000,000 | 73,000,000 |
Credit Index Product [Member] | ||
Investment [Line Items] | ||
Other Investments | 107,000,000 | 73,000,000 |
Equity investments in pooled funds [Member] | ||
Investment [Line Items] | ||
Other Investments | 683,000,000 | 543,000,000 |
Private Equity Funds, US | ||
Investment [Line Items] | ||
Other Investments | 37,000,000 | 13,000,000 |
Emerging Markets Debt | ||
Investment [Line Items] | ||
Other Investments | 24,000,000 | 25,000,000 |
Investment Portfolio [Member] | ||
Investment [Line Items] | ||
Fair Value of Cash and Securities Pledged to Derivative Counterparties | $ 120,000,000 | $ 140,000,000 |
Ambac Assurance Corporation [Member] | Corolla Notes | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | ||
Investment [Line Items] | ||
Note Holders | 1 | |
Commitments [Member] | Partnership Interest [Member] | ||
Investment [Line Items] | ||
Other Investments | $ 74,000,000 |
Investments - Summary of Amount
Investments - Summary of Amounts Included in Net Realized (Losses) Gains and Other-Than-Temporary Impairments (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment [Line Items] | |||
Gross realized gains on securities | $ 14 | $ 38 | $ 64 |
Gross realized losses on securities | (2) | (12) | (5) |
Foreign exchange (losses) gains | (7) | (1) | 12 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 0 | 0 |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Sell before Recovery | 0 | 0 | 0 |
Net realized (losses) gains | 7 | 22 | 81 |
Gain (Loss) on Investments [Member] | |||
Investment [Line Items] | |||
Foreign exchange (losses) gains | $ (5) | $ (4) | $ 22 |
Investments - Summary of Roll-F
Investments - Summary of Roll-Forward of Ambac's Cumulative Credit Losses on Debt Securities for Which Portion of Other-than-Temporary Impairment was Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2021 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||
Balance at beginning | $ 12 | |
Reductions for credit impairments previously recognized on: | ||
Securities that matured or were sold during the period | (1) | |
Balance at end | 12 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 | $ 0 |
Investments - Summary of Source
Investments - Summary of Sources of Collateral Received and Various Investment Agreement in which Collateral Pledged (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Investment [Line Items] | |||
Fair Value Of Securities Deposited With Governmental Authorities | $ 17 | $ 8 | |
Market Value of Secured Note Collateral | 0 | 178 | |
Restricted Cash | $ 5 | $ 13 | $ 55 |
Investments - Summary of Fair V
Investments - Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment [Line Items] | ||
Unsettled Amounts Secured Notes from LSNI | $ 0 | $ 9 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2 | 6 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2 | 6 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | Corporate Debt Securities [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 0 | $ 0 |
Investments - Summary of Fair_2
Investments - Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities (Detail2) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Investment [Line Items] | ||
Securities fair value | $ 17 | $ 8 |
Market Value of Secured Note Collateral | 0 | 178 |
Fair Value of Securities Held by Ambac UK Where Capital Stock of AUK is Pledged as Collateral for Sitka AAC Note | 669 | |
Investment Portfolio [Member] | ||
Investment [Line Items] | ||
Fair Value of Cash and Securities Pledged to Derivative Counterparties | 120 | 140 |
Standard & Poor's, B Rating | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 757 | |
Standard & Poor's, B Rating | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 754 | |
Standard & Poor's, B Rating | Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 318 | |
Standard & Poor's, B Rating | Municipal Bonds [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 316 | |
Standard & Poor's, B Rating | Corporate Debt Securities [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | |
Standard & Poor's, B Rating | Mortgage and Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 439 | |
Standard & Poor's, B Rating | Mortgage and Asset-Backed Securities [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 439 | |
Standard & Poor's, BBB- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2 | 6 |
Standard & Poor's, BBB- Rating [Member] | Municipal Bonds [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2 | 6 |
Standard & Poor's, BBB- Rating [Member] | Corporate Debt Securities [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | 0 |
Standard & Poor's, C Rating | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | |
Standard & Poor's, C Rating | Municipal Bonds [Member] | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | |
Standard & Poor's, C Rating | Corporate Debt Securities [Member] | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | |
Standard & Poor's, CCC+ Rating | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1,273 | |
Standard & Poor's, CCC+ Rating | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1,266 | |
Standard & Poor's, CCC+ Rating | Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 327 | |
Standard & Poor's, CCC+ Rating | Municipal Bonds [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 320 | |
Standard & Poor's, CCC+ Rating | Corporate Debt Securities [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 465 | |
Standard & Poor's, CCC+ Rating | Corporate Debt Securities [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 465 | |
Standard & Poor's, CCC+ Rating | Mortgage and Asset-Backed Securities [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 481 | |
Standard & Poor's, CCC+ Rating | Mortgage and Asset-Backed Securities [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 481 | |
Standard & Poor's, A- Rating | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | |
Standard & Poor's, A- Rating | Municipal Bonds [Member] | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | |
Standard & Poor's, A- Rating | Corporate Debt Securities [Member] | Assured Guaranty Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 0 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment [Line Items] | |||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ 23 | $ 0 | $ 24 |
Trading Securities, Realized Gain (Loss) | 1 | (18) | 7 |
Fixed income securities | 103 | 183 | |
Investment expense | (6) | (6) | (6) |
Securities available-for-sale and short-term | 74 | 103 | 196 |
Net investment income | 139 | 122 | 227 |
Gains (losses) on securities held as of reporting date [Member] | |||
Investment [Line Items] | |||
Other Investments Income | 22 | 18 | 17 |
Available-for-sale Securities [Member] | |||
Investment [Line Items] | |||
Fixed income securities | 78 | ||
Short-term Investments [Member] | |||
Investment [Line Items] | |||
Fixed income securities | 0 | 5 | 17 |
Financing Receivable [Member] | |||
Investment [Line Items] | |||
Fixed income securities | 0 | 1 | 1 |
Other Investments [Member] | |||
Investment [Line Items] | |||
Fixed income securities | $ 66 | $ 19 | $ 32 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Carrying Amount [Member] | ||
Financial assets: | ||
Other Investments | $ 106,000 | $ 89,000 |
Cash | 21,000 | 33,000 |
Loans | 3,000 | 3,000 |
Other assets | 1,000 | |
Total financial assets | 9,268,000 | 10,071,000 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | (866,000) | (740,000) |
Long-term Debt | 2,806,000 | 3,255,000 |
Total financial liabilities | 8,190,000 | 8,958,000 |
Carrying Amount [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Restricted cash | 2,000 | 2,000 |
Loans, at fair value | 2,718,000 | 2,998,000 |
Financial liabilities: | ||
Long-term Debt | 4,216,000 | 4,493,000 |
Carrying Amount [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other Investments | 690,000 | 595,000 |
Carrying Amount [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 414,000 | 492,000 |
Carrying Amount [Member] | Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 3,320,000 | 3,215,000 |
Carrying Amount [Member] | Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 136,000 | 139,000 |
Carrying Amount [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 94,000 | 114,000 |
Carrying Amount [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,940,000 | 1,835,000 |
Carrying Amount [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Derivative assets | 38,000 | 41,000 |
Total Fair Value [Member] | ||
Financial assets: | ||
Cash | 21,000 | 33,000 |
Debt Securities, Available-for-sale | 2,265,000 | |
Other Investments | 690,000 | 595,000 |
Derivative assets | 76,000 | 93,000 |
Other assets | 114 | |
Financial liabilities: | ||
Derivative liabilities | 95,000 | 114,000 |
Credit valuation adjustment included in fair value of credit derivative liabilities | $ 32 | $ 19 |
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.20% | 2.20% |
Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | $ 3,455,000 | $ 3,354,000 |
Loans, at fair value | 2,718,000 | 2,998,000 |
Derivative assets | 38,000 | 41,000 |
Financial liabilities: | ||
Derivative liabilities | 1,940,000 | 1,835,000 |
Long-term Debt | $ 4,056,000 | $ 4,324,000 |
Estimated Future Premium Payments Weighted Average Discounted Rate | 3.00% | 2.40% |
Short-term Investments [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | $ 414,000 | $ 492,000 |
Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 3,320,000 | 3,215,000 |
Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 136,000 | 139,000 |
Other Assets [Member] | Carrying Amount [Member] | Interest Rate Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 76,000 | 93,000 |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Financial assets: | ||
Other Investments | 577,000 | 453,000 |
Level 1 [Member] | ||
Financial assets: | ||
Cash | 21,000 | 32,000 |
Total financial assets | 750,000 | 888,000 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term Debt | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 1 [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Restricted cash | 2,000 | 2,000 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term Debt | 0 | 0 |
Level 1 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other Investments | 106,000 | 91,000 |
Level 1 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 369,000 | 415,000 |
Level 1 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 0 | |
Level 1 [Member] | Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Level 1 [Member] | Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Level 1 [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 1 [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 1 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 0 | 0 |
Level 1 [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 2 [Member] | ||
Financial assets: | ||
Cash | 1,000 | 2,000 |
Total financial assets | 1,732,000 | 2,299,000 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term Debt | 2,575,000 | 2,670,000 |
Total financial liabilities | 8,695,000 | 8,968,000 |
Level 2 [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Restricted cash | 0 | 0 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term Debt | 4,086,000 | 4,349,000 |
Level 2 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other Investments | 0 | 0 |
Level 2 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 46,000 | 76,000 |
Level 2 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 0 | |
Level 2 [Member] | Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Level 2 [Member] | Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 136,000 | 139,000 |
Level 2 [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 94,000 | 114,000 |
Level 2 [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,940,000 | 1,835,000 |
Level 2 [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Derivative assets | 38,000 | 41,000 |
Level 2 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 0 | 0 |
Level 2 [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 5,000 | 9,000 |
Level 3 [Member] | ||
Financial assets: | ||
Cash | 0 | 0 |
Total financial assets | 6,202,000 | 6,433,000 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | (112,000) | 539,000 |
Long-term Debt | 22,000 | 401,000 |
Total financial liabilities | 79,000 | 1,095,000 |
Level 3 [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Restricted cash | 0 | 0 |
Loans | 2,718,000 | 2,998,000 |
Financial liabilities: | ||
Long-term Debt | 169,000 | 155,000 |
Level 3 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other Investments | 0 | 53,000 |
Level 3 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 0 | 0 |
Level 3 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 1,000 | |
Level 3 [Member] | Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 3,320,000 | 3,215,000 |
Level 3 [Member] | Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Level 3 [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Level 3 [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 3 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 3,000 | 3,000 |
Level 3 [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 71,000 | 85,000 |
Municipal Bonds [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 340,000 | 358,000 |
Corporate Debt Securities [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 613,000 | 1,077,000 |
Debt Security, Government, Non-US [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 87,000 | 98,000 |
US Government Debt Securities [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 45,000 | 106,000 |
Residential Mortgage-Backed Securities [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 252,000 | 302,000 |
Collateralized Debt Obligations [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 128,000 | 74,000 |
Asset-backed Securities [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 265,000 | 303,000 |
Fair Value, Recurring [Member] | ||
Financial assets: | ||
Total financial assets | 9,261,000 | 10,073,000 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | (112,000) | 539,000 |
Long-term Debt | 2,598,000 | 3,071,000 |
Total financial liabilities | 8,775,000 | 10,063,000 |
Fair Value, Recurring [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Restricted cash | 2,000 | 2,000 |
Loans | 2,718,000 | 2,998,000 |
Financial liabilities: | ||
Long-term Debt | 4,255,000 | 4,504,000 |
Fair Value, Recurring [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other Investments | 683,000 | 597,000 |
Fair Value, Recurring [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 414,000 | 492,000 |
Fair Value, Recurring [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 1,000 | |
Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 265,000 | 303,000 |
Fair Value, Recurring [Member] | Collateralized Debt Obligations [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 128,000 | 74,000 |
Fair Value, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 252,000 | 302,000 |
Fair Value, Recurring [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 45,000 | 106,000 |
Fair Value, Recurring [Member] | Debt Security, Government, Non-US [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 87,000 | 98,000 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 613,000 | 1,077,000 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 3,320,000 | 3,215,000 |
Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 340,000 | 358,000 |
Fair Value, Recurring [Member] | Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 136,000 | 139,000 |
Fair Value, Recurring [Member] | Interest Rate Swaps [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 94,000 | 114,000 |
Fair Value, Recurring [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,940,000 | 1,835,000 |
Fair Value, Recurring [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Financial assets: | ||
Derivative assets | 38,000 | 41,000 |
Fair Value, Recurring [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 3,000 | 3,000 |
Fair Value, Recurring [Member] | Other Assets [Member] | Interest Rate Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 76,000 | 93,000 |
Fair Value, Recurring [Member] | Level 1 [Member] | Asset-backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Collateralized Debt Obligations [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 45,000 | 106,000 |
Fair Value, Recurring [Member] | Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 87,000 | 98,000 |
Fair Value, Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 1,000 | 4,000 |
Fair Value, Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Asset-backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 187,000 | 225,000 |
Fair Value, Recurring [Member] | Level 2 [Member] | Collateralized Debt Obligations [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 128,000 | 74,000 |
Fair Value, Recurring [Member] | Level 2 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 252,000 | 302,000 |
Fair Value, Recurring [Member] | Level 2 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 600,000 | 1,073,000 |
Fair Value, Recurring [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 340,000 | 358,000 |
Fair Value, Recurring [Member] | Level 3 [Member] | Asset-backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 79,000 | 78,000 |
Fair Value, Recurring [Member] | Level 3 [Member] | Collateralized Debt Obligations [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 12,000 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Collateral Pledged [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 120,000 | 140,000 |
Collateral Pledged [Member] | US Government Debt Securities [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 15,000 | 15,000 |
Collateral Pledged [Member] | Short-term Investments [Member] | Carrying Amount [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 105,000 | 125,000 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 105,000 | 125,000 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 15,000 | 15,000 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 105,000 | 125,000 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 15,000 | 15,000 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | 0 | 0 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | US Government Debt Securities [Member] | ||
Financial assets: | ||
Debt Securities, Available-for-sale | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other Investments | $ 690,000 | $ 595,000 |
Credit valuation adjustment included in fair value of credit derivative liabilities | 32 | 19 |
Fair value of derivative liabilities | 93,000 | |
Derivative liabilities | $ 95,000 | $ 114,000 |
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 2.20% | 2.20% |
Number of Credit Risk Derivatives Held | 1 | |
Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using dealer quotes | 6.00% | 2.00% |
Asset-backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Coupon rate | 5.97% | 5.97% |
Minimum [Member] | Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using internal valuation models | 4.00% | 3.00% |
Maximum [Member] | Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using external pricing services | 90.00% | 95.00% |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fair value of derivative liabilities | $ 0 | |
Derivative liabilities | $ 1,940,000 | $ 1,835,000 |
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 3.00% | 2.40% |
Real Estate [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other Investments | $ 33,000 | $ 16,000 |
Hedge Funds, Multi-strategy [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other Investments | 216,000 | 196,000 |
Interest Rate Contract [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other Investments | 78,000 | 78,000 |
Illiquid Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other Investments | $ 88,000 | $ 65,000 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Valuation Inputs for Fixed Income Securities Classified as Level 3 (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other Investments | $ 690 | $ 595 |
Debt Securities, Available-for-sale | $ 2,265 | |
Fair Value Inputs Yield Rate | 11.60% | |
Asset-backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Coupon rate | 5.97% | 5.97% |
Fair Value Inputs Maturity | 14 years 1 month 20 days | 14 years 9 months 29 days |
Yield | 10.20% | 10.50% |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 3,455 | $ 3,354 |
Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other Investments | 33 | 16 |
Hedge Funds, Multi-strategy [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other Investments | 216 | 196 |
Interest Rate Contract [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other Investments | 78 | 78 |
Illiquid Investments [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other Investments | 88 | 65 |
Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 3,320 | 3,215 |
Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 3,320 | 3,215 |
Fair Value, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 252 | 302 |
Fair Value, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 0 | 0 |
Fair Value, Recurring [Member] | Corporate Obligations [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | 613 | 1,077 |
Fair Value, Recurring [Member] | Corporate Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 12 | 0 |
Fair Value Inputs Maturity | 2 years 9 months | |
Fair Value, Recurring [Member] | Corporate Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Debt Securities, Available-for-sale | $ 3,320 | $ 3,215 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Information about Described Model Inputs Used to Determine Fair Value of Each Class of Credit Derivatives (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Fair value of derivative liabilities | $ 93 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Information about Described Model Inputs Used to Determine Fair Value of Each Class of Credit Derivatives (Detail2) $ in Millions | Dec. 31, 2021USD ($) |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |
Fair value of derivative liabilities | $ 93 |
Fair Value Measurements - Inf_2
Fair Value Measurements - Information about Valuation Inputs for Variable Interest Entity Assets and Liabilities Classified as Level 3 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.20% | 2.20% | |
Asset-backed Securities [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Inputs Coupon Rate | 5.97% | 5.97% | |
Fair Value Inputs Maturity | 14 years 1 month 20 days | 14 years 9 months 29 days | |
Fair Value Inputs Yield | 10.20% | 10.50% | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | $ 0 | $ 627 | |
Fair Value, Inputs, Level 3 [Member] | Investments [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | ||
Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | ||
Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | $ 0 | ||
Variable Interest Entity [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 353 | ||
Estimated Future Premium Payments Weighted Average Discounted Rate | 3.00% | 2.40% | |
Estimated Future Premium Payments Minimum Discounted Rate | 2.20% | ||
Estimated Future Premium Payments Maximum Discounted Rate | 4.10% | ||
Variable Interest Entity [Member] | Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 851 | ||
Variable Interest Entity [Member] | Long-term Debt [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | (223) | ||
Variable Interest Entity [Member] | Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | |||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | $ 0 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Changes in Level 3 Fair Value Category (Detail) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Financial Assets and Liabilities Transfers In or Out of Level 3 | 0 | |||
Asset-backed Securities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of Level 3 Security by Investment Type | 1 | |||
Convertible Bonds | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Number of Level 3 Security by Investment Type | 2 | |||
Level 3 [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | $ 6,199 | $ 6,376 | $ 6,207 | $ 6,930 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 230 | 436 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 199 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (58) | 198 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 306 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 13 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (362) | (334) | (731) | |
Deconsolidation of VIEs | 0 | 627 | ||
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 | (227) | (305) | (376) | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (59) | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 198 | |||
Level 3 [Member] | Investments Contract [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Deconsolidation of VIEs | 0 | |||
Level 3 [Member] | Loans [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Deconsolidation of VIEs | 0 | |||
Level 3 [Member] | Investments [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 91 | 78 | 72 | 72 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 1 | 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 1 | 6 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 1 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 13 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (2) | (1) | (2) | |
Deconsolidation of VIEs | 0 | 0 | ||
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 | (1) | 0 | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (1) | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 6 | |||
Level 3 [Member] | Other Assets [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 1 | 3 | 5 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 0 | (2) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | (2) | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (1) | 0 | 0 | |
Deconsolidation of VIEs | 0 | 0 | ||
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 | 0 | 2 | 2 | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | |||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Deconsolidation of VIEs | 0 | |||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 70 | 84 | 66 | 46 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | (6) | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | 0 | 0 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | 25 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 25 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (8) | (7) | (5) | |
Deconsolidation of VIEs | 0 | |||
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 | 6 | (25) | (25) | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | |||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Long-term Debt [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 8 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Issues | 0 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | |||
Deconsolidation of VIEs | (223) | |||
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 | 0 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 0 | (217) | ||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Loans Receivable [Member] | Loans [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 2,718 | 2,998 | 3,108 | 4,288 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 59 | 287 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 74 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (26) | 83 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (15) | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 98 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (313) | (290) | (690) | |
Deconsolidation of VIEs | 851 | |||
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 | (59) | (98) | (215) | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (26) | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 83 | |||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | Investments Contract [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 3,320 | 3,215 | 2,957 | $ 2,737 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Earnings | 176 | 138 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Other Comprehensive Income (Loss) | 116 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Other Comprehensive Income (Loss) | (32) | 109 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 183 | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Purchases | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 0 | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Settlements | (38) | (35) | (35) | |
Deconsolidation of VIEs | 0 | |||
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 | (176) | (183) | $ (138) | |
Fair Value, Liability, Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ (32) | |||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ 109 |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Total gains or losses included in earnings for the period | $ 410 | ||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 353 | ||
Net Investment Income [Member] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $ 1 | $ 1 | 2 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 1 | 0 | 0 |
Derivative Contract [Domain] | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | (6) | 25 | 25 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (6) | 25 | 25 |
Income Loss On Variable Interest Entities [Member] | Variable Interest Entity [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Total gains or losses included in earnings for the period | 235 | 281 | |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 235 | 281 | |
Other Income or (Loss) [Member] | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Total gains or losses included in earnings for the period | 0 | (2) | (2) |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | $ 0 | $ (2) | $ (2) |
Financial Guarantees in Force -
Financial Guarantees in Force - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Guarantor Obligations [Line Items] | |||
Financial Guarantee Insurance Contracts, Accelerated Premium Revenue, Amount | $ 1 | $ 12 | $ 10 |
Gross par amount of financial guarantees outstanding | 34,122 | 39,070 | |
Net par amount of financial guarantees | 28,020 | 33,888 | |
Gross financial guarantees in force | 54,272 | 61,895 | |
Net financial guarantees in force | $ 42,653 | 51,603 | |
Highest single insured risk of aggregate net par amount guaranteed | 3.30% | ||
Ceded Principal Outstanding Major Reinsurer Percentage | 7.90% | ||
California [Member] | |||
Guarantor Obligations [Line Items] | |||
Aggregate net par amounts in force | 5.10% | ||
NEW JERSEY | |||
Guarantor Obligations [Line Items] | |||
Aggregate net par amounts in force | 8.30% | ||
No other state [Member] | Maximum [Member] | |||
Guarantor Obligations [Line Items] | |||
Aggregate net par amounts in force | 4.00% | ||
Public Finance [Member] | |||
Guarantor Obligations [Line Items] | |||
Net par amount of financial guarantees | $ 12,360 | 15,497 | |
Public Finance [Member] | Housing Revenue [Member] | |||
Guarantor Obligations [Line Items] | |||
Net par amount of financial guarantees | 5,610 | 5,855 | |
Military Housing [Member] | Public Finance [Member] | Housing Revenue [Member] | |||
Guarantor Obligations [Line Items] | |||
Net par amount of financial guarantees | $ 5,490 | $ 5,575 |
Financial Guarantees in Force_3
Financial Guarantees in Force - Summary of Financial Guarantee Portfolio Diversification by Type of Guaranteed Bond (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | $ 28,020 | $ 33,888 |
Public Finance [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 12,360 | 15,497 |
Public Finance [Member] | Lease and Tax-backed Revenue [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 3,196 | 4,179 |
Public Finance [Member] | General Obligation [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 1,612 | 2,345 |
Public Finance [Member] | Housing Revenue [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 5,610 | 5,855 |
Public Finance [Member] | Other [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 1,942 | 3,118 |
Structured Finance [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 4,904 | 6,337 |
Structured Finance [Member] | Mortgage-backed and Home Equity [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 2,724 | 3,635 |
Structured Finance [Member] | Investor-owned Utilities [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 1,556 | 1,617 |
Structured Finance [Member] | Other Structured Finance [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 624 | 1,085 |
International Finance [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 10,756 | 12,054 |
International Finance [Member] | Asset Backed and Other [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 1,276 | 1,374 |
International Finance [Member] | Investor-owned and Public Utilities [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 3,283 | 3,899 |
International Finance [Member] | Sovereign/Sub-sovereign [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 5,141 | 5,270 |
International Finance [Member] | Transportation [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | $ 1,056 | $ 1,511 |
Financial Guarantees in Force_4
Financial Guarantees in Force - Summary of International Finance Guaranteed Portfolio (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | $ 28,020 | $ 33,888 |
International Finance [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 10,756 | 12,054 |
International Finance [Member] | United Kingdom [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 9,255 | 9,711 |
International Finance [Member] | Australia [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 203 | 420 |
International Finance [Member] | Italy [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 718 | 803 |
International Finance [Member] | Austria [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 343 | 707 |
International Finance [Member] | FRANCE | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 219 | 277 |
International Finance [Member] | Other International [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | 18 | 136 |
International Finance [Member] | United States [Member] | ||
Guarantor Obligations [Line Items] | ||
Net Par Amount Outstanding | $ 17,264 | $ 21,834 |
Financial Guarantee Insurance_3
Financial Guarantee Insurance Contracts - Additional Information (Detail) $ in Thousands, £ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2020GBP (£) | Dec. 31, 2019GBP (£) | Dec. 31, 2018USD ($) | |
Insurance [Line Items] | |||||||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 1,000 | $ 0 | |||||
Net par amount of financial guarantees | $ 28,020,000 | 33,888,000 | |||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,098,000 | $ 1,140,000 | 1,536,000 | $ 1,633,000 | |||
Stockholders Equity After Possible Increase in Domestic Public Finance Loss Reserves | 743,000 | ||||||
Possible Increase in Domestic Public Finance Loss Reserves | $ 355,000 | ||||||
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.20% | 2.20% | 2.20% | 2.20% | |||
Financial Guarantee Insurance Contracts, Premium Receivable | $ 320,000 | $ 370,000 | 416,000 | $ 495,000 | |||
Amount Of Insured Par Outstanding Ceded To Reinsurer | $ 2,695,000 | ||||||
Ceded Principal Outstanding Major Reinsurer Percentage | 7.90% | ||||||
Deferred Ceded Premiums And Reinsurance Recoverables | $ 145,000 | ||||||
Reinsurance Payable | $ 33,000 | $ 27,000 | |||||
Weighted average period of future premiums | 8 years | 8 years 3 months 18 days | |||||
Uncollectable premium receivables | $ 9,000 | $ 17,000 | |||||
Accelerated premium revenue for retired obligations | 1,000 | 12,000 | 10,000 | ||||
Reinsurance recoveries of losses included in losses and loss expenses | 5,000 | (11,000) | (7,000) | ||||
Losses and loss expense reserves ceded to reinsurers | 33,000 | ||||||
Subrogation recoveries, net of reinsurance | (1,704,000) | (1,725,000) | |||||
Amortization of intangible assets | 55,000 | 57,000 | 295,000 | ||||
Intangible assets | 362,000 | 409,000 | |||||
Letters of Credit Outstanding, Amount | 111,000 | ||||||
Financial Guarantee Outstanding Principal Ceded To Third Parties | 6,102,000 | ||||||
Public Finance Puerto Rico Net Par Outstanding | 1,054,000 | ||||||
Premiums Receivable, Gross | 329,000 | 387,000 | |||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | 9,000 | 17,000 | 9,000 | ||||
Premium Receivable, Credit Loss Expense (Reversal) | (6,000) | 9,000 | |||||
Premium Receivable, Allowance for Credit Loss, Writeoff | (2,000) | (2,000) | |||||
Reinsurance Recoverable, Allowance for Credit Loss | 0 | 0 | |||||
Net Incurred RMBS Subrogation Recoveries | 20,000 | (23,000) | 42,000 | ||||
Eighth Amended POA Proposed Debt Restructure Amount | 33,000,000 | ||||||
Eighth Amended POA Proposed Pension Obligation Restructure Amount | $ 50,000,000 | ||||||
PHIFA Trust funded Share of Clawback CVI | 27.00% | 27.00% | |||||
PRHTA Share of Contingent Value Instrument | 69.00% | 69.00% | |||||
CCDA Share of Contingent Value Instrument | 4.00% | 4.00% | |||||
Nominal Cap of Allowed PRIGA and CCDA Under Eighth Amended POA | 75.00% | 75.00% | |||||
Stockholderes Equity After Possible Increase in Domestic Public Finance Loss Reserves | $ (607,000) | ||||||
Financial Guarantee | |||||||
Insurance [Line Items] | |||||||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | 0 | ||||||
Losses and loss expense reserves ceded to reinsurers | 24,000 | ||||||
Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 277,000 | 302,000 | |||||
IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 12,000 | 40,000 | |||||
II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 6,000 | 3,000 | |||||
III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 22,000 | 27,000 | |||||
IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | $ 12,000 | $ 15,000 | |||||
Maximum [Member] | Furniture and Fixtures [Member] | |||||||
Insurance [Line Items] | |||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||
Loss Reserves [Member] | |||||||
Insurance [Line Items] | |||||||
Weighted average risk-free rate used to discount loss reserves | 1.20% | 1.10% | |||||
United Kingdom, Pounds | |||||||
Insurance [Line Items] | |||||||
Financial Guarantee Insurance Contracts, Premium Receivable | $ 108,000 | $ 117,000 | $ 129,000 | £ 80 | £ 86 | £ 97 | |
Public Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 12,360,000 | 15,497,000 | |||||
Premiums Receivable, Gross | 159,000 | 185,000 | |||||
Public Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 151,000 | 157,000 | |||||
Public Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 3,000 | 27,000 | |||||
Public Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 5,000 | 0 | |||||
Public Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Public Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Structured Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 4,904,000 | 6,337,000 | |||||
Premiums Receivable, Gross | 45,000 | 59,000 | |||||
Structured Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 19,000 | 27,000 | |||||
Structured Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 0 | |||||
Structured Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||
Structured Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 12,000 | 14,000 | |||||
Structured Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 12,000 | 15,000 | |||||
International Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 10,756,000 | 12,054,000 | |||||
Premiums Receivable, Gross | 125,000 | 144,000 | |||||
International Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 107,000 | 118,000 | |||||
International Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 8,000 | 13,000 | |||||
International Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
International Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 11,000 | 13,000 | |||||
International Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Housing Revenue [Member] | Public Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 5,610,000 | 5,855,000 | |||||
Premiums Receivable, Gross | 157,000 | 168,000 | |||||
Housing Revenue [Member] | Public Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 149,000 | 155,000 | |||||
Housing Revenue [Member] | Public Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 3,000 | 13,000 | |||||
Housing Revenue [Member] | Public Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 5,000 | 0 | |||||
Housing Revenue [Member] | Public Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Housing Revenue [Member] | Public Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Housing Revenue [Member] | Military Housing [Member] | Public Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 5,490,000 | 5,575,000 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 2,000 | 17,000 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 2,000 | 2,000 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 15,000 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Public Finance Sectors [Member] | Public Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 2,724,000 | 3,635,000 | |||||
Premiums Receivable, Gross | 16,000 | 22,000 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 1,000 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 2,000 | 3,000 | |||||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 12,000 | 15,000 | |||||
Structured Insurance [Member] | Structured Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 10,000 | 14,000 | |||||
Structured Insurance [Member] | Structured Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 10,000 | 14,000 | |||||
Structured Insurance [Member] | Structured Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Structured Insurance [Member] | Structured Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Structured Insurance [Member] | Structured Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Structured Insurance [Member] | Structured Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Student Loan [Member] | Structured Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 12,000 | 16,000 | |||||
Student Loan [Member] | Structured Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||
Student Loan [Member] | Structured Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 1,000 | 0 | |||||
Student Loan [Member] | Structured Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 2,000 | |||||
Student Loan [Member] | Structured Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 9,000 | 11,000 | |||||
Student Loan [Member] | Structured Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 624,000 | 1,085,000 | |||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other Structured Finance [Member] | Structured Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 5,141,000 | 5,270,000 | |||||
Premiums Receivable, Gross | 93,000 | 108,000 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 74,000 | 82,000 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 8,000 | 13,000 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 11,000 | 13,000 | |||||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Net par amount of financial guarantees | 3,283,000 | 3,899,000 | |||||
Premiums Receivable, Gross | 28,000 | 31,000 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 28,000 | 31,000 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Investor-owned and Public Utilities [Member] | International Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other International [Member] | International Finance [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 5,000 | 5,000 | |||||
Other International [Member] | International Finance [Member] | Surveillance Category One [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 5,000 | 5,000 | |||||
Other International [Member] | International Finance [Member] | IA [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other International [Member] | International Finance [Member] | II [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other International [Member] | International Finance [Member] | III [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | 0 | 0 | |||||
Other International [Member] | International Finance [Member] | IV [Member] | |||||||
Insurance [Line Items] | |||||||
Premiums Receivable, Gross | $ 0 | $ 0 |
Financial Guarantee Insurance_4
Financial Guarantee Insurance Contracts - Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) (Detail) $ in Thousands, € in Millions, £ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2021USD ($) | Dec. 31, 2021GBP (£) | Dec. 31, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2020GBP (£) | Dec. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2018USD ($) | |
Insurance [Line Items] | |||||||||
Premium Receivable, Allowance for Credit Loss | $ 9,000 | $ 17,000 | |||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Beginning premium receivable | 370,000 | 416,000 | $ 495,000 | ||||||
Premium receipts | 35,000 | 46,000 | (48,000) | ||||||
Adjustments for changes in expected and contractual cash flows | (27,000) | (6,000) | (38,000) | ||||||
Accretion of premium receivable discount | 8,000 | 9,000 | 11,000 | ||||||
Financial Guarantee Insurance Contracts, Premium Receivable, Deconsolidation of VIE | 0 | 0 | 3,000 | ||||||
Uncollectable premiums | 8,000 | (4,000) | (2,000) | ||||||
Other adjustments (including foreign exchange) | (4,000) | 5,000 | (6,000) | ||||||
Ending premium receivable | 320,000 | 370,000 | 416,000 | ||||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | 9,000 | 17,000 | 9,000 | ||||||
Premium Receivable, Credit Loss Expense (Reversal) | (6,000) | 9,000 | |||||||
Premium Receivable, Allowance for Credit Loss, Writeoff | (2,000) | (2,000) | |||||||
Premiums Receivable, Gross | 329,000 | 387,000 | |||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,098,000 | 1,140,000 | 1,536,000 | $ 1,633,000 | |||||
Everspan Group | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | ||||||||
Surveillance Category One [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 277,000 | 302,000 | |||||||
IA [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 40,000 | |||||||
II [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 6,000 | 3,000 | |||||||
III [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 22,000 | 27,000 | |||||||
IV [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 15,000 | |||||||
Premiums Receivable [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ (3,000) | ||||||||
United Kingdom, Pounds | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Beginning premium receivable | 117,000 | £ 86 | 129,000 | £ 97 | |||||
Ending premium receivable | 108,000 | £ 80 | 117,000 | £ 86 | 129,000 | ||||
Euro Member Countries, Euro | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Beginning premium receivable | 19,000 | € 16 | 26,000 | € 23 | |||||
Ending premium receivable | 16,000 | € 14 | 19,000 | € 16 | $ 26,000 | ||||
Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 45,000 | 59,000 | |||||||
Structured Finance [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 16,000 | 22,000 | |||||||
Structured Finance [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 16,000 | |||||||
Structured Finance [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 10,000 | 14,000 | |||||||
Structured Finance [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||||
Structured Finance [Member] | Surveillance Category One [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 19,000 | 27,000 | |||||||
Structured Finance [Member] | Surveillance Category One [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||||
Structured Finance [Member] | Surveillance Category One [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||||
Structured Finance [Member] | Surveillance Category One [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 10,000 | 14,000 | |||||||
Structured Finance [Member] | Surveillance Category One [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||||
Structured Finance [Member] | IA [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 0 | |||||||
Structured Finance [Member] | IA [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | IA [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 0 | |||||||
Structured Finance [Member] | IA [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | IA [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | II [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 3,000 | |||||||
Structured Finance [Member] | II [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 1,000 | |||||||
Structured Finance [Member] | II [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 2,000 | |||||||
Structured Finance [Member] | II [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | II [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | III [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 14,000 | |||||||
Structured Finance [Member] | III [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 3,000 | |||||||
Structured Finance [Member] | III [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 9,000 | 11,000 | |||||||
Structured Finance [Member] | III [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | III [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | IV [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 15,000 | |||||||
Structured Finance [Member] | IV [Member] | Mortgage-backed and Home Equity [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 15,000 | |||||||
Structured Finance [Member] | IV [Member] | Student Loan [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | IV [Member] | Structured Insurance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Finance [Member] | IV [Member] | Other Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 159,000 | 185,000 | |||||||
Public Finance [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 157,000 | 168,000 | |||||||
Public Finance [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 17,000 | |||||||
Public Finance [Member] | Surveillance Category One [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 151,000 | 157,000 | |||||||
Public Finance [Member] | Surveillance Category One [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 149,000 | 155,000 | |||||||
Public Finance [Member] | Surveillance Category One [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 2,000 | |||||||
Public Finance [Member] | IA [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 3,000 | 27,000 | |||||||
Public Finance [Member] | IA [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 3,000 | 13,000 | |||||||
Public Finance [Member] | IA [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 15,000 | |||||||
Public Finance [Member] | II [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 5,000 | 0 | |||||||
Public Finance [Member] | II [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 5,000 | 0 | |||||||
Public Finance [Member] | II [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | III [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | III [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | III [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | IV [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | IV [Member] | Housing Revenue [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Public Finance [Member] | IV [Member] | Other Public Finance Sectors [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 125,000 | 144,000 | |||||||
International Finance [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 93,000 | 108,000 | |||||||
International Finance [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 28,000 | 31,000 | |||||||
International Finance [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 5,000 | 5,000 | |||||||
International Finance [Member] | Surveillance Category One [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 107,000 | 118,000 | |||||||
International Finance [Member] | Surveillance Category One [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 74,000 | 82,000 | |||||||
International Finance [Member] | Surveillance Category One [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 28,000 | 31,000 | |||||||
International Finance [Member] | Surveillance Category One [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 5,000 | 5,000 | |||||||
International Finance [Member] | IA [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 8,000 | 13,000 | |||||||
International Finance [Member] | IA [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 8,000 | 13,000 | |||||||
International Finance [Member] | IA [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | IA [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | II [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | II [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | II [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | II [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | III [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 11,000 | 13,000 | |||||||
International Finance [Member] | III [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 11,000 | 13,000 | |||||||
International Finance [Member] | III [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | III [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | IV [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | IV [Member] | Sovereign/Sub-sovereign [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | IV [Member] | Investor-owned and Public Utilities [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
International Finance [Member] | IV [Member] | Other International [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | $ 0 | $ 0 |
Financial Guarantee Insurance_5
Financial Guarantee Insurance Contracts - Effect of Reinsurance on Premiums Written and Earned (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | |||
Direct Premiums Written | $ (2) | $ 1 | $ 28 |
Assumed Reinsurance Premiums Written | 0 | 0 | 0 |
Ceded Reinsurance Premiums Written | (35) | 1 | (31) |
Premiums written, net of reinsurance | 33 | 0 | 60 |
Direct Premiums Earned | 62 | 65 | 75 |
Premiums Earned, Net | 47 | 54 | 66 |
Assumed Reinsurance Premiums Earned | 0 | 1 | 0 |
Ceded Reinsurance Premiums Earned | 15 | 12 | 10 |
Reinsurance on premiums earned, Net | 47 | 54 | $ 66 |
Reinsurance Recoverable, Allowance for Credit Loss | $ 0 | $ 0 |
Financial Guarantee Insurance_6
Financial Guarantee Insurance Contracts - Summarized Future Gross Undiscounted Premiums Expected to be Collected, and Future Expected Premiums Earned, Net of Reinsurance (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Future premiums expected to be collected, March 31, 2022 | $ 10 |
Future premiums expected to be collected, June 30. 2022 | 7 |
Future premiums expected to be collected, September 30, 2022 | 9 |
Future premiums expected to be collected, December 31, 2022 | 7 |
Future premiums expected to be collected, December 31, 2023 | 32 |
Future premiums expected to be collected, December 31, 2024 | 30 |
Future premiums expected to be collected, December 31, 2025 | 29 |
Future premiums expected to be collected, December 31, 2026 | 28 |
Future premiums expected to be collected, December 31, 2031 | 113 |
Future premiums expected to be collected, December 31, 2036 | 75 |
Future premiums expected to be collected, December 31, 2041 | 32 |
Future premiums expected to be collected, December 31, 2046 | 15 |
Future premiums expected to be collected, December 31, 2051 | 5 |
Future premiums expected to be collected, December 31, 2056 | 0 |
Future premiums expected to be collected, Total | 393 |
Future expected premium to be earned, net of reinsurance, March 31, 2022 | 7 |
Future expected premiums to be earned, net of reinsurance, June 30, 2022 | 7 |
Future expected premiums to be earned, net of reinsurance, September 30, 2022 | 7 |
Future expected premiums to be earned, net of reinsurance, December 31, 2022 | 7 |
Future expected premiums to be earned, net of reinsurance, December 31, 2023 | 25 |
Future expected premiums to be earned, net of reinsurance, December 31, 2024 | 24 |
Future expected premiums to be earned, net of reinsurance, December 31, 2025 | 23 |
Future expected premiums to be earned, net of reinsurance, December 31, 2026 | 22 |
Future expected premiums to be earned, net of reinsurance, December 31, 2031 | 91 |
Future expected premiums to be earned, net of reinsurance, December 31, 2036 | 57 |
Future expected premiums to be earned, net of reinsurance, December 31, 2041 | 22 |
Future expected premiums to be earned, net of reinsurance, December 31, 2046 | 9 |
Future expected premiums to be earned, net of reinsurance, December 31, 2051 | 3 |
Future expected premiums to be earned, net of reinsurance, December 31, 2056 | 0 |
Future expected premiums to be earned, net of reinsurance, Total | $ 303 |
Financial Guarantee Insurance_7
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts - Components of Loss and Loss Expense Reserves and Subrogation Recoverable (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Policyholder Benefits and Claims Incurred, Ceded | $ (5) | $ 11 | $ 7 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | (577) | (430) | (436) | $ (130) |
Subrogation recoverable | (2,092) | (2,156) | ||
Claim liability reported on Balance Sheet, before reinsurance | (522) | (397) | ||
Liability for Claims and Claims Adjustment Expense | 1,570 | 1,759 | $ (482) | $ (107) |
Present Value of Expected Net Cash Flows- Claims and Loss Expenses [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Subrogation recoverable | 88 | 100 | ||
Claim liability reported on Balance Sheet, before reinsurance | 1,869 | 2,160 | ||
Liability for Claims and Claims Adjustment Expense | 1,781 | 2,060 | ||
Present Value of Expected Net Cash Flows-Recoveries [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Subrogation recoverable | (2,180) | (2,256) | ||
Claim liability reported on Balance Sheet, before reinsurance | (2,335) | (2,486) | ||
Liability for Claims and Claims Adjustment Expense | (155) | (229) | ||
Unearned Premium Reserve [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Subrogation recoverable | 0 | 0 | ||
Claim liability reported on Balance Sheet, before reinsurance | (56) | (72) | ||
Liability for Claims and Claims Adjustment Expense | $ (56) | $ (72) |
Financial Guarantee Insurance_8
Financial Guarantee Insurance Contracts - Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss And Loss Adjustment Expense Reserves [Line Items] | ||||
Impact of VIE Consolidation on Gross Loss and Loss Reserves | $ 72 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Foreign Currency Translation Gain (Loss) | $ 0 | $ 2 | (1) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | (88) | 225 | 13 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | (1,730) | (1,751) | ||
Policyholder Benefits and Claims Incurred, Ceded | (5) | 11 | 7 | |
Net Incurred RMBS Subrogation Recoveries | (20) | 23 | (42) | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Less reinsurance on loss and loss expense reserves | 33 | |||
Beginning balance of net loss and loss expense reserves | (430) | (436) | (130) | |
Current year: | ||||
Claim and loss expense payments, net of subrogation and reinsurance | 0 | (1) | 0 | |
Prior years: | ||||
Claim and loss expense (payments) recoveries, net of subrogation and reinsurance | (59) | (148) | (318) | |
Liability for Unpaid Claims and Claims Adjustment Expense, Net | (577) | (430) | (436) | $ (130) |
Add reinsurance on loss and loss expense reserves | 33 | |||
Liabillity for Claim and Claim Adjustment Expense, with Impact of VIE Consolidation | (522) | (397) | (482) | |
Balance Of Rmbs Subrogation Recoveries Net Of Reinsurance | (1,704) | (1,725) | ||
Current Year Claims and Claims Adjustment Expense | 0 | 15 | 1 | |
Prior Year Claims and Claims Adjustment Expense | (89) | 210 | 12 | |
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 59 | 149 | 318 | |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | 1 | 0 | ||
Liability for Claims and Claims Adjustment Expense | 1,570 | 1,759 | (482) | (107) |
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 55 | 33 | 26 | $ 23 |
Liability For Unpaid Claims And Claims Adjustment Expense Net of VIE Consolidation | $ (508) | |||
Liability for Claims and Claims Adjustment Expense Net of Reinsurance Recoverables | $ (397) |
Financial Guarantee Insurance_9
Financial Guarantee Insurance Contracts - Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)Policies | Dec. 31, 2020USD ($)Policies | Dec. 31, 2019USD ($) | |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 205 | 232 | |
Remaining weighted-average contract period (in years) | 14 years | 14 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 6,302 | $ 7,573 | |
Interest | 2,984 | 3,443 | |
Total | 9,286 | 11,016 | |
Gross undiscounted claim liability | 2,095 | 2,395 | |
Discount, gross claim liability | 303 | 303 | |
Gross claim liability before all subrogation and before reinsurance | 1,792 | 2,092 | |
Less: | |||
Gross RMBS subrogation | (1,737) | (1,753) | |
Discount, RMBS subrogation | 7 | 3 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | (1,730) | (1,751) | |
Less: | |||
Gross other subrogation | (633) | (755) | |
Discount, other subrogation | 28 | 20 | |
Discounted other subrogation, before reinsurance | (605) | (735) | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | (543) | (394) | |
Less: Unearned premium reserves | (56) | (72) | |
Plus: Loss adjustment expenses reserves | 45 | 68 | |
Claim liability reported on Balance Sheet, before reinsurance | (522) | (397) | |
Reinsurance recoverable reported on Balance Sheet | 23 | 33 | |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | 1 | $ 0 | |
Loss Reserves Ceded To Reinsurers | $ 33 | ||
Financial Guarantee | |||
Less: | |||
Claim liability reported on Balance Sheet, before reinsurance | (554) | ||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | 0 | ||
Loss Reserves Ceded To Reinsurers | $ 24 | ||
Loss Reserves [Member] | |||
Less: | |||
Weighted average risk-free rate used to discount loss reserves | 1.20% | 1.10% | |
Surveillance Category One [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 34 | 40 | |
Remaining weighted-average contract period (in years) | 9 years | 10 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 904 | $ 842 | |
Interest | 589 | 279 | |
Total | 1,493 | 1,121 | |
Gross undiscounted claim liability | 5 | 3 | |
Discount, gross claim liability | 0 | 0 | |
Gross claim liability before all subrogation and before reinsurance | 5 | 3 | |
Less: | |||
Gross RMBS subrogation | 0 | 0 | |
Discount, RMBS subrogation | 0 | 0 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 0 | 0 | |
Less: | |||
Gross other subrogation | 0 | 0 | |
Discount, other subrogation | 0 | 0 | |
Discounted other subrogation, before reinsurance | 0 | 0 | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | 5 | 3 | |
Less: Unearned premium reserves | (3) | (2) | |
Plus: Loss adjustment expenses reserves | 1 | 1 | |
Claim liability reported on Balance Sheet, before reinsurance | 3 | 2 | |
Reinsurance recoverable reported on Balance Sheet | $ 1 | $ 0 | |
IA [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 15 | 25 | |
Remaining weighted-average contract period (in years) | 12 years | 18 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 840 | $ 1,375 | |
Interest | 612 | 1,011 | |
Total | 1,452 | 2,386 | |
Gross undiscounted claim liability | 16 | 49 | |
Discount, gross claim liability | 1 | 2 | |
Gross claim liability before all subrogation and before reinsurance | 15 | 47 | |
Less: | |||
Gross RMBS subrogation | 0 | 0 | |
Discount, RMBS subrogation | 0 | 0 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 0 | 0 | |
Less: | |||
Gross other subrogation | (5) | 0 | |
Discount, other subrogation | 0 | 0 | |
Discounted other subrogation, before reinsurance | (5) | 0 | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | 10 | 47 | |
Less: Unearned premium reserves | (10) | (16) | |
Plus: Loss adjustment expenses reserves | 0 | 2 | |
Claim liability reported on Balance Sheet, before reinsurance | 1 | 32 | |
Reinsurance recoverable reported on Balance Sheet | $ 1 | $ 6 | |
II [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 7 | 15 | |
Remaining weighted-average contract period (in years) | 14 years | 8 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 459 | $ 595 | |
Interest | 308 | 484 | |
Total | 767 | 1,079 | |
Gross undiscounted claim liability | 45 | 40 | |
Discount, gross claim liability | 3 | 1 | |
Gross claim liability before all subrogation and before reinsurance | 42 | 40 | |
Less: | |||
Gross RMBS subrogation | 0 | 0 | |
Discount, RMBS subrogation | 0 | 0 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 0 | 0 | |
Less: | |||
Gross other subrogation | 0 | 0 | |
Discount, other subrogation | 0 | 0 | |
Discounted other subrogation, before reinsurance | 0 | 0 | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | 42 | 39 | |
Less: Unearned premium reserves | (5) | (5) | |
Plus: Loss adjustment expenses reserves | 0 | 1 | |
Claim liability reported on Balance Sheet, before reinsurance | 38 | 35 | |
Reinsurance recoverable reported on Balance Sheet | $ 10 | $ 9 | |
III [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 14 | 15 | |
Remaining weighted-average contract period (in years) | 15 years | 16 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 1,300 | $ 1,469 | |
Interest | 169 | 215 | |
Total | 1,469 | 1,685 | |
Gross undiscounted claim liability | 544 | 541 | |
Discount, gross claim liability | 109 | 85 | |
Gross claim liability before all subrogation and before reinsurance | 435 | 456 | |
Less: | |||
Gross RMBS subrogation | 0 | 0 | |
Discount, RMBS subrogation | 0 | 0 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 0 | 0 | |
Less: | |||
Gross other subrogation | (33) | (36) | |
Discount, other subrogation | 2 | 1 | |
Discounted other subrogation, before reinsurance | (31) | (35) | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | 404 | 421 | |
Less: Unearned premium reserves | (14) | (17) | |
Plus: Loss adjustment expenses reserves | 4 | 5 | |
Claim liability reported on Balance Sheet, before reinsurance | 394 | 409 | |
Reinsurance recoverable reported on Balance Sheet | $ 22 | $ 24 | |
IV [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 130 | 132 | |
Remaining weighted-average contract period (in years) | 13 years | 14 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 2,759 | $ 3,246 | |
Interest | 1,284 | 1,427 | |
Total | 4,043 | 4,673 | |
Gross undiscounted claim liability | 1,423 | 1,690 | |
Discount, gross claim liability | 185 | 213 | |
Gross claim liability before all subrogation and before reinsurance | 1,238 | 1,477 | |
Less: | |||
Gross RMBS subrogation | (1,737) | (1,753) | |
Discount, RMBS subrogation | 7 | 3 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | (1,730) | (1,751) | |
Less: | |||
Gross other subrogation | (583) | (706) | |
Discount, other subrogation | 24 | 18 | |
Discounted other subrogation, before reinsurance | (559) | (689) | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | (1,051) | (963) | |
Less: Unearned premium reserves | (24) | (30) | |
Plus: Loss adjustment expenses reserves | 40 | 59 | |
Claim liability reported on Balance Sheet, before reinsurance | (1,036) | (933) | |
Reinsurance recoverable reported on Balance Sheet | $ (11) | $ (6) | |
V [Member] | |||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | |||
Number of policies | Policies | 5 | 5 | |
Remaining weighted-average contract period (in years) | 7 years | 7 years | |
Gross insured contractual payments outstanding: | |||
Principal | $ 40 | $ 47 | |
Interest | 22 | 26 | |
Total | 62 | 72 | |
Gross undiscounted claim liability | 62 | 72 | |
Discount, gross claim liability | 4 | 3 | |
Gross claim liability before all subrogation and before reinsurance | 57 | 69 | |
Less: | |||
Gross RMBS subrogation | 0 | 0 | |
Discount, RMBS subrogation | 0 | 0 | |
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 0 | 0 | |
Less: | |||
Gross other subrogation | (12) | (12) | |
Discount, other subrogation | 2 | 1 | |
Discounted other subrogation, before reinsurance | (10) | (11) | |
Gross claim liability, net of all subrogation and discounts, before reinsurance | 47 | 58 | |
Less: Unearned premium reserves | (1) | (1) | |
Plus: Loss adjustment expenses reserves | 0 | 0 | |
Claim liability reported on Balance Sheet, before reinsurance | 46 | 57 | |
Reinsurance recoverable reported on Balance Sheet | $ 0 | $ 0 |
Financial Guarantee Insuranc_10
Financial Guarantee Insurance Contracts - Summary of Balance of RMBS Subrogation Recoveries and Related Claim Liabilities, by Estimation Approach (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||
Subrogation recoveries | $ 1,730 | $ 1,751 |
Financial Guarantee Insuranc_11
Financial Guarantee Insurance Contracts - Summary of Rollforward of RMBS Subrogation, by Estimation Approach (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Subrogation By Estimation Approach [Roll Forward] | |
Discounted RMBS subrogation (gross of reinsurance), beginning balance | $ 1,751 |
Changes recognized | |
Discounted RMBS subrogation (gross of reinsurance), ending balance | $ 1,730 |
Financial Guarantee Insuranc_12
Financial Guarantee Insurance Contracts - Estimated Future Amortization Expense for Insurance Intangible Asset (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Amortization Of Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 55 | $ 57 | $ 295 |
2018 | 36 | ||
2019 | 33 | ||
2020 | 31 | ||
2021 | 28 | ||
2022 | 25 | ||
Thereafter | 200 | ||
Intangible assets | $ 362 | 409 | |
Insurance Intangible Asset [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 3 months 18 days | ||
Amortization of intangible assets | $ 52 | 57 | $ 295 |
Intangible Assets, Gross (Excluding Goodwill) | 1,278 | 1,281 | |
2018 | 34 | ||
2019 | 30 | ||
2020 | 28 | ||
2021 | 25 | ||
2022 | 23 | ||
Thereafter | 180 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 958 | 908 | |
Intangible assets | $ 320 | $ 373 |
Financial Guarantee Insurance -
Financial Guarantee Insurance - Summary of Percentage Ceded to Reinsurers and Reinsurance Recoverable and Rating Levels (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Summary of Ceded Par and Net Unsecured Reinsurance Recoverable [Line Items] | |
Net unsecured reinsurance recoverable | $ 31 |
Reinsurance Recoverables, Gross | $ 55 |
Percentage of Ceded Reinsurance Recoverable Represented by Top Three | 98.00% |
QBE Insurance Corporation | Property and Casualty, Commercial Insurance | |
Summary of Ceded Par and Net Unsecured Reinsurance Recoverable [Line Items] | |
Net unsecured reinsurance recoverable | $ 27 |
Reinsurance Recoverables, Gross | 27 |
Assured Guaranty Re Ltd [Member] | Financial Guarantee | |
Summary of Ceded Par and Net Unsecured Reinsurance Recoverable [Line Items] | |
Net unsecured reinsurance recoverable | 0 |
Reinsurance Recoverables, Gross | 18 |
Sompo Japan Nipponkoa Holdings, Inc [Member] | Financial Guarantee | |
Summary of Ceded Par and Net Unsecured Reinsurance Recoverable [Line Items] | |
Net unsecured reinsurance recoverable | 0 |
Reinsurance Recoverables, Gross | $ 9 |
Financial Guarantee Insuranc_13
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts Earned Premiums by Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 47 | $ 54 | $ 66 | |
Premiums Receivable, Gross | 329 | 387 | ||
Liability for Claims and Claims Adjustment Expense | 1,570 | 1,759 | (482) | $ (107) |
Subrogation recoverable | 2,092 | 2,156 | ||
Financial Guarantee | ||||
Liability for Claims and Claims Adjustment Expense | 1,538 | |||
Subrogation recoverable | (2,092) | |||
Property and Casualty, Commercial Insurance | ||||
Liability for Claims and Claims Adjustment Expense | 32 | |||
Subrogation recoverable | 0 | |||
Public Finance [Member] | ||||
Premiums Receivable, Gross | 159 | 185 | ||
Structured Finance [Member] | ||||
Premiums Receivable, Gross | 45 | 59 | ||
International Finance [Member] | ||||
Premiums Receivable, Gross | 125 | 144 | ||
Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 157 | 168 | ||
Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 2 | 17 | ||
Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 16 | 22 | ||
Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 12 | 16 | ||
Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 10 | 14 | ||
Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 7 | 7 | ||
Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 93 | 108 | ||
Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 28 | 31 | ||
Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 5 | 5 | ||
Surveillance Category One [Member] | ||||
Premiums Receivable, Gross | 277 | 302 | ||
Surveillance Category One [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 151 | 157 | ||
Surveillance Category One [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 19 | 27 | ||
Surveillance Category One [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 107 | 118 | ||
Surveillance Category One [Member] | Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 149 | 155 | ||
Surveillance Category One [Member] | Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 2 | 2 | ||
Surveillance Category One [Member] | Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 3 | ||
Surveillance Category One [Member] | Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 3 | ||
Surveillance Category One [Member] | Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 10 | 14 | ||
Surveillance Category One [Member] | Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 7 | 7 | ||
Surveillance Category One [Member] | Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 74 | 82 | ||
Surveillance Category One [Member] | Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 28 | 31 | ||
Surveillance Category One [Member] | Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 5 | 5 | ||
IA [Member] | ||||
Premiums Receivable, Gross | 12 | 40 | ||
IA [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 3 | 27 | ||
IA [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 0 | ||
IA [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 8 | 13 | ||
IA [Member] | Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 3 | 13 | ||
IA [Member] | Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 15 | ||
IA [Member] | Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IA [Member] | Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 0 | ||
IA [Member] | Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IA [Member] | Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IA [Member] | Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 8 | 13 | ||
IA [Member] | Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IA [Member] | Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | ||||
Premiums Receivable, Gross | 6 | 3 | ||
II [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 5 | 0 | ||
II [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 3 | ||
II [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 5 | 0 | ||
II [Member] | Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 1 | 1 | ||
II [Member] | Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 2 | ||
II [Member] | Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
II [Member] | Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | ||||
Premiums Receivable, Gross | 22 | 27 | ||
III [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 12 | 14 | ||
III [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 11 | 13 | ||
III [Member] | Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 2 | 3 | ||
III [Member] | Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 9 | 11 | ||
III [Member] | Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 11 | 13 | ||
III [Member] | Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
III [Member] | Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | ||||
Premiums Receivable, Gross | 12 | 15 | ||
IV [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 12 | 15 | ||
IV [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Housing Revenue [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Other Public Finance Sectors [Member] | Public Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Mortgage-backed and Home Equity [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 12 | 15 | ||
IV [Member] | Student Loan [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Structured Insurance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Other Structured Finance [Member] | Structured Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Sovereign/Sub-sovereign [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Investor-owned and Public Utilities [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
IV [Member] | Other International [Member] | International Finance [Member] | ||||
Premiums Receivable, Gross | 0 | 0 | ||
Reportable Geographical Components [Member] | UNITED STATES | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 27 | 32 | 55 | |
Reportable Geographical Components [Member] | UNITED KINGDOM | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 14 | 24 | 17 | |
Reportable Geographical Components [Member] | Other International [Member] | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 6 | $ (2) | $ (6) |
Insurance Regulatory Restrict_2
Insurance Regulatory Restrictions Additional Details (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Average Annual Rate Of Return | 5.28% | 4.56% |
Prescribed Discount Rate Percentage | 5.10% | |
Minimum [Member] | ||
Settlement Agreement Annual Restricted Payment Amount | $ 5 | |
Maximum [Member] | ||
Settlement Agreement Annual Restricted Payment Amount | 8 | |
Ambac Assurance [Member] | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 757 | $ 865 |
Ambac Assurance [Member] | Prescribed Or Permitted Additional Accounting Practices [Member] | ||
Statutory Accounting Practices, Prescribed Practice, Amount | (5) | 40 |
Everspan Indemnity | ||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | $ 106 | 26 |
Everspan Indemnity | Prescribed Or Permitted Additional Accounting Practices [Member] | ||
Statutory Accounting Practices, Prescribed Practice, Amount | $ 18 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Gross Fair Values of Individual Derivative Instruments (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | $ 76,000,000 | $ 93,000,000 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 76,000,000 | 93,000,000 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 95,000,000 | 114,000,000 |
Derivative Liabilities Gross Amount Of Collateral Cash And Securities Pledged Not Offset | 113,000,000 | |
Fair value of derivative liabilities | 93,000,000 | |
Net Amount, Derivative Assets | 76,000,000 | 93,000,000 |
Net Amount, Derivative Liabilities | 2,000,000 | 1,000,000 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 95,000,000 | 114,000,000 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative, Collateral, Obligation to Return Cash | 0 | 0 |
Variable Interest Entity [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 38,000,000 | 41,000,000 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 38,000,000 | 41,000,000 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,940,000,000 | 1,835,000,000 |
Derivative Liabilities Gross Amount Of Collateral Cash And Securities Pledged Not Offset | 0 | |
Fair value of derivative liabilities | 0 | |
Net Amount, Derivative Assets | 38,000,000 | 41,000,000 |
Net Amount, Derivative Liabilities | 1,940,000,000 | 1,835,000,000 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 1,940,000,000 | 1,835,000,000 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Other Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 0 | 0 |
Net Amount, Derivative Liabilities | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Interest Rate Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 76,000,000 | 93,000,000 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 76,000,000 | 93,000,000 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 94,000,000 | 114,000,000 |
Fair value of derivative liabilities | 93,000,000 | 113,000,000 |
Net Amount, Derivative Assets | 76,000,000 | 93,000,000 |
Net Amount, Derivative Liabilities | 1,000,000 | 1,000,000 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | |
Derivative Liability, Fair Value, Gross Liability | 94,000,000 | 114,000,000 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Interest Rate Swaps [Member] | Variable Interest Entity [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,940,000,000 | 1,835,000,000 |
Net Amount, Derivative Liabilities | 1,940,000,000 | 1,835,000,000 |
Derivative Liability, Fair Value, Gross Liability | 1,940,000,000 | 1,835,000,000 |
Currency Swaps [Member] | Variable Interest Entity [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Gross Asset | 38,000,000 | 41,000,000 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 38,000,000 | 41,000,000 |
Net Amount, Derivative Assets | $ 38,000,000 | 41,000,000 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivative, Net Liability Position, Aggregate Fair Value | $ 93 | $ 113 |
Derivative, Collateral, Right to Reclaim Cash | 13 | 1 |
Collateral Already Posted, Aggregate Fair Value | 109 | 130 |
Variable Interest Entity, Primary Beneficiary [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,221 | 1,233 |
Variable Interest Entity, Primary Beneficiary [Member] | Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,069 | 1,151 |
Variable Interest Entity, Primary Beneficiary [Member] | Currency Swaps [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 272 | 308 |
AFS [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 185 | 195 |
AFS [Member] | Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 1,275 | $ 726 |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Location and Amount of Gains and Losses of Derivative Contracts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 22 | $ (50) | $ (50) |
Derivative, Gain (Loss) on Derivatives, Total Net | (128) | (193) | (82) |
Net gains (losses) on derivative contracts [Domain] | Credit Derivatives [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 0 | 0 | 2 |
Net gains (losses) on derivative contracts [Domain] | Interest Rate Swaps [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 13 | (9) | (6) |
Net gains (losses) on derivative contracts [Domain] | Futures Contracts [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 9 | (41) | (45) |
Income Loss On Variable Interest Entities [Member] | Variable Interest Entity [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (150) | (144) | (32) |
Income Loss On Variable Interest Entities [Member] | Interest Rate Swaps [Member] | Variable Interest Entity [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | (152) | (138) | (20) |
Income Loss On Variable Interest Entities [Member] | Currency Swaps [Member] | Variable Interest Entity [Member] | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ 2 | $ (6) | $ (12) |
Derivative Instruments - Summ_3
Derivative Instruments - Summary of Gross Principal Notional Outstanding for CDS Contracts (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity [Member] | Interest Rate Swap [Member] | ||
Ambac Rating | ||
Derivative, Notional Amount | $ 1,221 | $ 1,233 |
Variable Interest Entity [Member] | Interest Rate Swap One [Member] | ||
Ambac Rating | ||
Derivative, Notional Amount | 1,069 | 1,151 |
Variable Interest Entity [Member] | Currency Swaps [Member] | ||
Ambac Rating | ||
Derivative, Notional Amount | 272 | 308 |
Other Credit Derivatives [Member] | ||
Ambac Rating | ||
Derivative, Notional Amount | $ 201 | $ 257 |
Derivative Instruments - Summ_4
Derivative Instruments - Summarize Information by Major Category of CDS Contracts (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Summary of information by major category of CDS contracts | ||
Net derivative liabilities at fair value | $ 93 | |
Other Credit Derivatives [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | $ 201 | $ 257 |
Derivative Instruments - Summ_5
Derivative Instruments - Summary of Notional Amounts of AFS's Trading Derivative Products (Detail) - AFS [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Rate Swaps [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | $ 185 | $ 195 |
Interest Rate Swaps-Pay-Fixed/Receive-Variable [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | 1,275 | 726 |
US Treasury Securities | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | $ 470 | $ 240 |
Derivative Instruments - Summ_6
Derivative Instruments - Summary of Notional for VIE Derivatives Outstanding (Detail) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Interest Rate Swaps [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | $ 1,221 | $ 1,233 |
Interest Rate Swaps-Pay-Fixed/Receive-Variable [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | 1,069 | 1,151 |
Currency Swaps [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative, Notional Amount | $ 272 | $ 308 |
Financial Guarantee Insuranc_14
Financial Guarantee Insurance Contracts - Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Premiums Receivable, Gross | $ 329 | $ 387 |
Public Finance [Member] | ||
Premiums Receivable, Gross | 159 | 185 |
Housing Revenue [Member] | Public Finance [Member] | ||
Premiums Receivable, Gross | 157 | 168 |
Surveillance Category One [Member] | ||
Premiums Receivable, Gross | 277 | 302 |
Surveillance Category One [Member] | Public Finance [Member] | ||
Premiums Receivable, Gross | 151 | 157 |
Surveillance Category One [Member] | Housing Revenue [Member] | Public Finance [Member] | ||
Premiums Receivable, Gross | $ 149 | $ 155 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets | $ 362 | $ 409 | |
Finite-Lived Intangible Assets, Net | 353 | 409 | |
2018 | 36 | ||
2019 | 33 | ||
2020 | 31 | ||
2021 | 28 | ||
2022 | 25 | ||
Thereafter | 200 | ||
Amortization of intangible assets | 55 | 57 | $ 295 |
Other Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 36 | 36 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 3 | 0 | |
Intangible assets | 33 | 36 | |
2018 | 3 | ||
2019 | 3 | ||
2020 | 3 | ||
2021 | 3 | ||
2022 | 2 | ||
Thereafter | $ 20 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years 8 months 12 days | ||
Amortization of intangible assets | $ 3 | 0 | 0 |
Insurance Intangible Asset [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible Assets, Gross (Excluding Goodwill) | 1,278 | 1,281 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 958 | 908 | |
Intangible assets | 320 | 373 | |
2018 | 34 | ||
2019 | 30 | ||
2020 | 28 | ||
2021 | 25 | ||
2022 | 23 | ||
Thereafter | $ 180 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 3 months 18 days | ||
Amortization of intangible assets | $ 52 | $ 57 | $ 295 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021USD ($)Entity | Dec. 31, 2021USD ($)Entity | Dec. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) | |
Variable Interest Entities [Line Items] | ||||
Fixed income securities, amortized cost | $ 2,140,000,000 | $ 2,140,000,000 | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 141,000,000 | 141,000,000 | $ 149,000,000 | |
Available-for-sale Securities | 2,265,000,000 | 2,265,000,000 | ||
Restricted Cash | 5,000,000 | 5,000,000 | 13,000,000 | $ 55,000,000 |
Fair value of special purpose entities | 114,000 | 114,000 | ||
Assets | 12,303,000,000 | 12,303,000,000 | 13,220,000,000 | |
Liabilities | 11,187,000,000 | 11,187,000,000 | 12,074,000,000 | |
Equity Method Investments | 51,000,000 | |||
Other Investments | 690,000,000 | 690,000,000 | 595,000,000 | |
Deconsolidated VIE Assets | 0 | |||
Long-term debt | 2,230,000,000 | 2,230,000,000 | 2,739,000,000 | |
Derivative assets | 76,000,000 | 76,000,000 | 93,000,000 | |
Other assets | 68,000,000 | 68,000,000 | 68,000,000 | |
Accrued interest payable | 576,000,000 | 576,000,000 | 517,000,000 | |
Derivative liabilities | 95,000,000 | 95,000,000 | 114,000,000 | |
Other liabilities | $ 133,000,000 | $ 133,000,000 | $ 135,000,000 | |
Consolidated Entities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Number of DeConsolidated Variable Interest Entities | 0 | 1 | 1 | |
Number of consolidated Variable Interest Entities | Entity | 6 | 6 | 6 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | $ 3,455,000,000 | $ 3,455,000,000 | $ 3,354,000,000 | |
Restricted Cash | 2,000,000 | 2,000,000 | 2,000,000 | $ 2,000,000 |
Assets | 6,216,000,000 | 6,216,000,000 | 6,398,000,000 | |
Liabilities | 6,156,000,000 | 6,156,000,000 | 6,328,000,000 | |
Loans, Unpaid principal balance | 2,363,000,000 | 2,363,000,000 | 2,546,000,000 | |
Long-term Debt, Fair Value | 4,056,000,000 | 4,056,000,000 | 4,324,000,000 | |
Long-term debt, Unpaid principal balance | 3,579,000,000 | 3,579,000,000 | 3,769,000,000 | |
Long-term debt | 4,216,000,000 | 4,216,000,000 | 4,493,000,000 | |
Financing Receivable, after Allowance for Credit Loss | 2,718,000,000 | 2,718,000,000 | 2,998,000,000 | |
Derivative assets | 38,000,000 | 38,000,000 | 41,000,000 | |
Other assets | 2,000,000 | 2,000,000 | 2,000,000 | |
Long-term Debt, at par less amortized discount | 160,000,000 | 160,000,000 | 169,000,000 | |
Derivative liabilities | $ 1,940,000,000 | $ 1,940,000,000 | $ 1,835,000,000 | |
Ambac UK [Member] | Consolidated Entities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Number of consolidated Variable Interest Entities | Entity | 5 | 5 | 5 | |
Ambac UK [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | $ 3,320,000,000 | $ 3,320,000,000 | $ 3,215,000,000 | |
Restricted Cash | 1,000,000 | 1,000,000 | 1,000,000 | |
Assets | 6,077,000,000 | 6,077,000,000 | 6,255,000,000 | |
Liabilities | 5,996,000,000 | 5,996,000,000 | 6,159,000,000 | |
Long-term Debt, Fair Value | 4,056,000,000 | 4,056,000,000 | 4,324,000,000 | |
Long-term debt | 4,056,000,000 | 4,056,000,000 | 4,324,000,000 | |
Financing Receivable, after Allowance for Credit Loss | 2,718,000,000 | 2,718,000,000 | 2,998,000,000 | |
Derivative assets | 38,000,000 | 38,000,000 | 41,000,000 | |
Other assets | 0 | 0 | 0 | |
Long-term Debt, at par less amortized discount | 0 | 0 | 0 | |
Derivative liabilities | $ 1,940,000,000 | $ 1,940,000,000 | $ 1,835,000,000 | |
Ambac Assurance [Member] | Consolidated Entities [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Number of consolidated Variable Interest Entities | Entity | 1 | 1 | 1 | |
Ambac Assurance [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | $ 136,000,000 | $ 136,000,000 | $ 139,000,000 | |
Restricted Cash | 1,000,000 | 1,000,000 | 1,000,000 | |
Assets | 139,000,000 | 139,000,000 | 143,000,000 | |
Liabilities | 160,000,000 | 160,000,000 | 169,000,000 | |
Long-term Debt, Fair Value | 0 | 0 | 0 | |
Long-term debt | 160,000,000 | 160,000,000 | 169,000,000 | |
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | 0 | |
Derivative assets | 0 | 0 | 0 | |
Other assets | 2,000,000 | 2,000,000 | 2,000,000 | |
Long-term Debt, at par less amortized discount | 160,000,000 | 160,000,000 | 169,000,000 | |
Derivative liabilities | 0 | 0 | 0 | |
Ambac Assurance Corporation [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Long-term debt | 2,230,000,000 | 2,230,000,000 | 2,739,000,000 | |
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Long-term debt | $ 0 | 0 | 247,000,000 | |
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Corolla Notes | ||||
Variable Interest Entities [Line Items] | ||||
Note Holders | 1 | |||
Corporate Debt Securities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | $ 3,320,000,000 | 3,320,000,000 | 3,215,000,000 | |
Corporate Debt Securities [Member] | Ambac UK [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | 3,320,000,000 | 3,320,000,000 | 3,215,000,000 | |
Corporate Debt Securities [Member] | Ambac Assurance [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | 0 | |
Municipal Bonds [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 29,000,000 | 29,000,000 | 27,000,000 | |
Available-for-sale Securities | 136,000,000 | 136,000,000 | 139,000,000 | |
Municipal Bonds [Member] | Ambac UK [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | 0 | 0 | 0 | |
Municipal Bonds [Member] | Ambac Assurance [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Variable Interest Entities [Line Items] | ||||
Available-for-sale Securities | $ 136,000,000 | $ 136,000,000 | $ 139,000,000 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Fair Value of Fixed Income Securities, by Asset-Type, Held by Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Line Items] | ||
Variable Interest Entity Nonconsolidated Carrying Amount Insurance Assets | $ 2,195 | $ 2,314 |
Variable Interest Entity Nonconsolidated Carrying Amount Insurance Liabilities | 1,023 | 1,122 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | 25,112 | 27,998 |
Variable Interest Entity Nonconsolidated Carrying Amount Derivative Net Assets Or Liabilities | 5 | |
Fixed income securities, amortized cost | 2,140 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 141 | 149 |
Variable Interest Entity [Member] | ||
Variable Interest Entities [Line Items] | ||
Variable Interest Entity Nonconsolidated Carrying Amount Derivative Net Assets Or Liabilities | 8 | |
Municipal Bonds [Member] | Variable Interest Entity [Member] | ||
Variable Interest Entities [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | $ 29 | $ 27 |
Variable Interest Entities - _2
Variable Interest Entities - Supplemental Information about Loans Held as Assets and Long-Term Debt Associated with Consolidated Variable Interest Entities (Detail) - Variable Interest Entity [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Line Items] | ||
Long-term Debt, Fair Value | $ 4,056 | $ 4,324 |
Loans, Unpaid principal balance | 2,363 | 2,546 |
Long-term debt, Unpaid principal balance | $ 3,579 | $ 3,769 |
Variable Interest Entities - _3
Variable Interest Entities - Summary of Carrying Amount of Assets, Liabilities and Maximum Exposure to Loss of Ambac's Variable Interests in Non-Consolidated Variable Interest Entities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | $ 25,112 | $ 27,998 | |
Insurance Assets | 2,195 | 2,314 | |
Insurance Liabilities | 1,023 | 1,122 | |
Derivative Liabilities | 5 | ||
Variable Interest Entity [Member] | |||
Variable Interest Entities [Line Items] | |||
Derivative Liabilities | 8 | ||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, before Tax | 5 | (3) | $ 14 |
Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 4,879 | 6,352 | |
Insurance Assets | 1,949 | 2,051 | |
Insurance Liabilities | 765 | 834 | |
Derivative Liabilities | 5 | 8 | |
Global Structured Finance [Member] | Residential Mortgage-Backed Securities [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 3,265 | 4,308 | |
Insurance Assets | 1,929 | 2,024 | |
Insurance Liabilities | 521 | 580 | |
Derivative Liabilities | 0 | 0 | |
Global Structured Finance [Member] | Other Consumer Asset-Backed [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 788 | 1,050 | |
Insurance Assets | 17 | 24 | |
Insurance Liabilities | 234 | 239 | |
Derivative Liabilities | 0 | 0 | |
Global Structured Finance [Member] | Other Debt Obligations [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 826 | 994 | |
Insurance Assets | 3 | 3 | |
Insurance Liabilities | 10 | 15 | |
Derivative Liabilities | 5 | 8 | |
Global Public Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 20,233 | 21,646 | |
Insurance Assets | 246 | 263 | |
Insurance Liabilities | 257 | 287 | |
Derivative Liabilities | $ 0 | $ 0 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entity - Change in Fair Value of Assets and Liabilities (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Deconsolidated VIE Assets | $ 0 | ||
Fixed income securities, amortized cost | $ 2,140 | ||
Long-term debt | 2,230 | 2,739 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 141 | 149 | |
Variable Interest Entity Change in Fair Value of Assets and Liabilities | 4 | (1) | $ 13 |
Realized Investment Gains (Losses) | 7 | 22 | 81 |
Variable Interest Entity, Initial Consolidation, Gain (Loss) | 0 | 0 | 15 |
Variable Interest Entities Deconsolidation Gain Loss | 0 | 0 | (2) |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | 7 | 5 | $ 38 |
Assets | 12,303 | 13,220 | |
Liabilities | $ 11,187 | $ 12,074 | |
Consolidated Entities [Member] | |||
Number of DeConsolidated Variable Interest Entities | 0 | 1 | 1 |
Variable Interest Entity [Member] | |||
Long-term debt | $ 4,216 | $ 4,493 | |
Loans, Unpaid principal balance | 2,363 | 2,546 | |
Long-term debt, Unpaid principal balance | 3,579 | 3,769 | |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, before Tax | 1 | (1) | $ 0 |
Interest Expense, Long-term Debt | (6) | (6) | (11) |
Other Expenses | (1) | 0 | (1) |
Assets | 6,216 | 6,398 | |
Liabilities | 6,156 | 6,328 | |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, before Tax | 5 | (3) | 14 |
Variable Interest Entity [Member] | Available-for-sale Securities [Member] | |||
Gross Investment Income, Operating | 6 | 7 | 10 |
Realized Investment Gains (Losses) | $ 2 | $ 8 | $ 13 |
Variable Interest Entities Va_2
Variable Interest Entities Variabile Interest Entities - Carry Value of Secured Notes from LSNI (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term debt | $ 2,230 | $ 2,739 |
Ambac [Member] | ||
Carry Value Secured Notes from LSNI | 465 | |
Ambac Assurance Corporation [Member] | ||
Long-term debt | 2,230 | 2,739 |
Ambac Note Post Exit From Rehabilitation [Member] | Ambac Assurance Corporation [Member] | ||
Long-term debt | $ 0 | $ 1,641 |
Variable Interest Entities Spec
Variable Interest Entities Special Purpose Entities, including Variable Interest Entities - Summary of Assets and Liabilities (Details) $ in Millions | Dec. 31, 2021USD ($)Entity | Dec. 31, 2020USD ($)Entity | Dec. 31, 2019USD ($) |
Available-for-sale Securities, Amortized Cost Basis | $ 2,140 | $ 2,807 | |
Available-for-sale Securities | 2,265 | ||
Restricted Cash | 5 | 13 | $ 55 |
Derivative assets | 76 | 93 | |
Other assets | 68 | 68 | |
Assets | 12,303 | 13,220 | |
Accrued interest payable | 576 | 517 | |
Long-term debt | 2,230 | 2,739 | |
Derivative liabilities | 95 | 114 | |
Liabilities | 11,187 | 12,074 | |
Variable Interest Entity [Member] | |||
Available-for-sale Securities | 3,455 | 3,354 | |
Restricted Cash | 2 | 2 | $ 2 |
Loans, at fair value | 2,718 | 2,998 | |
Derivative assets | 38 | 41 | |
Other assets | 2 | 2 | |
Assets | 6,216 | 6,398 | |
Long-term Debt | 4,056 | 4,324 | |
Long-term Debt, at par less amortized discount | 160 | 169 | |
Long-term debt | 4,216 | 4,493 | |
Derivative liabilities | 1,940 | 1,835 | |
Liabilities | 6,156 | 6,328 | |
Loans, Unpaid principal balance | 2,363 | 2,546 | |
Long-term debt, Unpaid principal balance | 3,579 | 3,769 | |
Variable Interest Entity [Member] | Ambac UK [Member] | |||
Available-for-sale Securities | 3,320 | 3,215 | |
Restricted Cash | 1 | 1 | |
Loans, at fair value | 2,718 | 2,998 | |
Derivative assets | 38 | 41 | |
Other assets | 0 | 0 | |
Assets | 6,077 | 6,255 | |
Long-term Debt | 4,056 | 4,324 | |
Long-term Debt, at par less amortized discount | 0 | 0 | |
Long-term debt | 4,056 | 4,324 | |
Derivative liabilities | 1,940 | 1,835 | |
Liabilities | 5,996 | 6,159 | |
Variable Interest Entity [Member] | Ambac Assurance [Member] | |||
Available-for-sale Securities | 136 | 139 | |
Restricted Cash | 1 | 1 | |
Loans, at fair value | 0 | 0 | |
Derivative assets | 0 | 0 | |
Other assets | 2 | 2 | |
Assets | 139 | 143 | |
Long-term Debt | 0 | 0 | |
Long-term Debt, at par less amortized discount | 160 | 169 | |
Long-term debt | 160 | 169 | |
Derivative liabilities | 0 | 0 | |
Liabilities | 160 | 169 | |
Variable Interest Entity [Member] | Corporate Debt Securities [Member] | |||
Available-for-sale Securities | 3,320 | 3,215 | |
Variable Interest Entity [Member] | Corporate Debt Securities [Member] | Ambac UK [Member] | |||
Available-for-sale Securities | 3,320 | 3,215 | |
Variable Interest Entity [Member] | Corporate Debt Securities [Member] | Ambac Assurance [Member] | |||
Available-for-sale Securities | 0 | 0 | |
Variable Interest Entity [Member] | Municipal Bonds [Member] | |||
Available-for-sale Securities, Amortized Cost Basis | 106 | 113 | |
Available-for-sale Securities | 136 | 139 | |
Variable Interest Entity [Member] | Municipal Bonds [Member] | Ambac UK [Member] | |||
Available-for-sale Securities | 0 | 0 | |
Variable Interest Entity [Member] | Municipal Bonds [Member] | Ambac Assurance [Member] | |||
Available-for-sale Securities | $ 136 | $ 139 | |
Consolidated Entities [Member] | |||
Number of consolidated Variable Interest Entities | Entity | 6 | 6 | |
Consolidated Entities [Member] | Ambac UK [Member] | |||
Number of consolidated Variable Interest Entities | Entity | 5 | 5 | |
Consolidated Entities [Member] | Ambac Assurance [Member] | |||
Number of consolidated Variable Interest Entities | Entity | 1 | 1 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 06, 2026 | Feb. 12, 2018 | |
Debt Instrument [Line Items] | |||||
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600 | ||||
Long-term debt | $ 2,230 | $ 2,739 | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.90% | ||||
Net realized gains (losses) on extinguishment of debt | $ 33 | 0 | $ 0 | ||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 785 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 1,175 | ||||
Paydown of Ambac Note | 1,641 | 121 | 178 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 373 | ||||
Make Whole Percentage of Principal | 103.00% | ||||
Reb & Warranty Subrogation Recoveries Up To | 1,400 | ||||
Aggregate Par Amount Reissued | $ 255 | ||||
Discretionary Tier 2 Note Mandatory and Optional Redemption Percent by AAC | 100.00% | ||||
Ambac Note Post Exit From Rehabilitation [Member] | |||||
Debt Instrument [Line Items] | |||||
Paydown of Ambac Note | $ (1,641) | (121) | $ (178) | ||
Tier 2 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 9.90% | ||||
Debt Instrument, Face Amount | $ 333 | ||||
Paid-in-Kind Interest | $ 93 | 66 | |||
5.1% Surplus Notes, General Account, Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 10.10% | ||||
Sitka AAC Note | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.70% | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Ambac Assurance Corporation [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,230 | 2,739 | |||
Long-term Debt, Gross | 2,334 | 2,884 | |||
Debt Instrument, Unamortized Discount (Premium), Net | (104) | (145) | |||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 247 | |||
Long-term Debt, Gross | 0 | 365 | |||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | (118) | |||
Ambac Assurance Corporation [Member] | Ambac Note Post Exit From Rehabilitation [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 1,641 | |||
Long-term Debt, Gross | 0 | 1,641 | |||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |||
Ambac Assurance Corporation [Member] | Tier 2 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 333 | 306 | |||
Long-term Debt, Gross | 333 | 306 | |||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |||
Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 729 | 531 | |||
Long-term Debt, Gross | 785 | 531 | |||
Debt Instrument, Unamortized Discount (Premium), Net | (56) | 0 | |||
Ambac Assurance Corporation [Member] | Sitka AAC Note | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 1,154 | 0 | |||
Debt Instrument, Unamortized Discount (Premium), Net | (21) | 0 | |||
Debt Instrument, Face Amount | $ 1,175 | 0 | |||
Ambac UK [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||
Long-term debt | $ 15 | 14 | |||
Long-term Debt, Gross | 41 | 41 | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ (26) | $ (27) | |||
Debt Instrument, Interest Rate, Effective Percentage | 7.40% | ||||
5.1% Junior Surplus Notes Due 2020 [Member] | Ambac Assurance Corporation [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | |||
5.1 % Surplus Notes Due 2020 [Member] | Ambac Assurance Corporation [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | |||
Consolidated Variable Interest Entities [Member] | |||||
Debt Instrument [Line Items] | |||||
Unpaid Principal Amount Of Fixed Rate Debt Accounted For Under Fair Value Option | $ 3,739 | $ 3,927 | |||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 56 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | $ 3,683 | ||||
Consolidated Variable Interest Entities [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | 0.00% | |||
Consolidated Variable Interest Entities [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 7.93% | 7.93% | |||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate on Ambac Note Post Exit From Rehabilitation | 5.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Sitka AAC Note | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest Rate on Ambac Note Post Exit From Rehabilitation | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Sitka AAC Note | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 0.75% | ||||
Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Gain Contingency, Unrecorded Amount | $ 1,400 |
Revenue from Contract with Cu_3
Revenue from Contract with Customer (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 26 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Contract with Customer, Asset, after Allowance for Credit Loss | 4 | $ 5 |
Contract with Customer, Liability | 1 | 1 |
Contract with Customer, Liability, Revenue Recognized | 1 | |
Contract with Customer, Receivable, after Allowance for Credit Loss | 2 | $ 2 |
Contract with Customer, Performance Obligation Satisfied in Previous Period | $ 12 | |
Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Employee Stop Loss Time When Base Commissions Recognized Begin and End In Months | 17 | |
Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Employee Stop Loss Time When Base Commissions Recognized Begin and End In Months | 20 | |
Employer Stop Loss | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 8 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 8 | |
Affinity Products | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 18 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 18 | |
Other Income From Revenue From Contract with Customer | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Balances of Each Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | $ 79 | $ 42 | |
Other comprehensive income before reclassifications | 13 | (58) | |
Amounts reclassified from accumulated other comprehensive income | (9) | (21) | |
Income Tax Expense (Benefit) | (18) | 3 | $ (32) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (21) | 37 | |
Ending Balance | 58 | 79 | 42 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 166 | 151 | |
Other comprehensive income before reclassifications | 5 | (36) | |
Amounts reclassified from accumulated other comprehensive income | (7) | (21) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (12) | 15 | |
Ending Balance | 154 | 166 | 151 |
Accumulated Translation Adjustment [Member] | |||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | (92) | (116) | |
Other comprehensive income before reclassifications | 8 | (23) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8) | 23 | |
Ending Balance | (100) | (92) | (116) |
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | |||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 0 | (2) | |
Other comprehensive income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | (1) | 1 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1) | 1 | |
Ending Balance | (1) | 0 | (2) |
Other Postretirement Benefits Plan [Member] | |||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||
Beginning Balance | 5 | 8 | |
Other comprehensive income before reclassifications | 0 | 2 | |
Amounts reclassified from accumulated other comprehensive income | (1) | (1) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1) | (3) | |
Ending Balance | $ 4 | $ 5 | $ 8 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Amounts Reclassed Out of Each Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | $ (18) | $ 3 | $ (32) |
Net of tax and noncontrolling interest | (28) | (437) | $ (216) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (9) | (21) | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net realized investment gains | (7) | (22) | |
Net of tax and noncontrolling interest | (7) | (21) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7) | (21) | |
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 1 | 1 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | 1 | |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, before Tax | (1) | 2 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net of tax and noncontrolling interest | (9) | (21) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | 1 | (1) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Financial Liability, Fair Value Option, Including Portion Attributable to Noncontrolling Interest [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | 0 | ||
Other Postretirement Benefits Plan [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | (1) | |
Other Postretirement Benefits Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax expense (benefit) | 0 | 0 | |
Prior service cost | (1) | (1) | |
Actuarial gains (losses) | 0 | 0 | |
Total before tax | (1) | (1) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (1) | $ (1) |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 02, 2016 | Jun. 30, 2016 | May 01, 2013 | Apr. 30, 2013 | |
Schedule Of Earnings Per Share [Line Items] | |||||||
Common Stock, Shares, Outstanding | 46,304,139 | ||||||
Class of Warrant or Right, Outstanding | 4,877,617 | ||||||
Number of new common stock issued | 46,477,068 | 45,865,081 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||||
Exercise price of common stock | $ 16.67 | ||||||
Warrant exercised | 132 | 34 | 0 | ||||
Stock Issued During Period, Shares, New Issues | 4 | 8 | 0 | ||||
First Warrant Buyback Authorization Dollars | $ 10 | ||||||
SecondWarrantBuyBackAuthorizedDollars | $ 10 | ||||||
RemainingWarrantBuyBackAuthorizedDollars | $ 12 | ||||||
Net Income (Loss) Available to Common Stockholders, Basic | $ (28) | $ (437) | $ (216) | ||||
Common Stock [Member] | |||||||
Schedule Of Earnings Per Share [Line Items] | |||||||
Shares Issued, Shares, Share-based Payment Arrangement, after Forfeiture | 495,000 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share | 46,535,001 | 46,147,062 | 45,954,908 |
Weighted Average Number of Shares Outstanding, Basic | 46,535,001 | 46,147,062 | 45,954,908 |
Warrant [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,877,653 | 4,877,754 | 4,877,783 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 16,121 | 16,667 |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 475,333 | 302,145 | 249,263 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 700,915 | 1,002,501 | 872,258 |
Warrant [Member] | |||
Effect of potential dilutive shares: | |||
Effect of potential dilutive shares | 0 | 0 | 0 |
Share-based Payment Arrangement, Option [Member] | |||
Effect of potential dilutive shares: | |||
Effect of potential dilutive shares | 0 | 0 | 0 |
Performance Shares [Member] | |||
Effect of potential dilutive shares: | |||
Effect of potential dilutive shares | 0 | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | |||
Effect of potential dilutive shares: | |||
Effect of potential dilutive shares | 0 | 0 | 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax Credit Carryforward [Line Items] | |||
Deferred Tax Liabilities, Net | $ 28,000 | $ 24,000 | |
Impact of AMT Repeal on Current Taxes | $ 29,581 | ||
Net Impact of New Tax Law | $ 1,886 | ||
NOL allocated amount | 3,744,000 | ||
AFG [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL allocated amount | 1,596,000 | ||
U. S. Federal Net Operating Tax [Member] | |||
Tax Credit Carryforward [Line Items] | |||
NOL allocated amount | $ 3,744,000 | ||
Minimum [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | ||
Minimum [Member] | AFG [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | ||
Maximum [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 | ||
Maximum [Member] | AFG [Member] | |||
Tax Credit Carryforward [Line Items] | |||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2034 |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Net of Valuation Allowance | $ 106 | $ 128 |
Deferred tax assets: | ||
Net operating loss and capital carryforward | 786 | 764 |
Loss reserves | 180 | 218 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 7 | 0 |
Deferred Tax Assets, Debentures | 7 | 22 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 8 | 9 |
Other | 4 | 5 |
Sub total deferred tax assets | 993 | 1,019 |
Valuation allowance | 886 | 891 |
Insurance intangible | 67 | 78 |
Variable interest entities | 15 | 13 |
Investments | 14 | 22 |
Unearned premiums and credit fees | 32 | 32 |
Other | 6 | 7 |
Deferred Tax Liabilities, Gross | 134 | 152 |
Deferred Tax Liabilities, Net | $ 28 | $ 24 |
Income Taxes Income Taxes - Pro
Income Taxes Income Taxes - Provision for Income Taxes Charged To Income From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Provision for Income Taxes [Line Items] | |||
Current Income Tax Expense (Benefit) | $ 12 | $ 8 | $ 34 |
Deferred Income Tax Expense (Benefit) | 6 | (10) | (1) |
Income tax expense (benefit) | 18 | (3) | 32 |
Deferred Foreign Income Tax Expense (Benefit) | 6 | (10) | (1) |
Current State and Local Tax Expense (Benefit) | 2 | 0 | (3) |
Current Foreign Tax Expense (Benefit) | $ 10 | $ 8 | $ 37 |
Income Taxes Income Taxes - Eff
Income Taxes Income Taxes - Effect of Income Taxes on Net Income and Stockholders' Equity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Expense (Benefit) [Roll Forward] | |||
Income tax expense (benefit) | $ 18 | $ (3) | $ 32 |
Net Unrealized Losses On Securities Tax Effect | (3) | 3 | 14 |
Valuation Allowances And Reserves Charged To Equity | 1 | (3) | 23 |
Income Tax Effects Allocated Directly to Equity | (2) | 1 | (8) |
Unrealized Loss on FX Tax Effect | 0 | 0 | 0 |
Income Tax Effects Allocated Directly to Equity, Other | $ 16 | $ (1) | $ 24 |
Income Taxes Income Taxes - E_2
Income Taxes Income Taxes - Effective Tax Rates Differing From Prevailing Federal Corporate Income Tax Rates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Effective Tax Rates [Line Items] | |||
Tax on income from continuing operations at statutory rate | $ 0 | $ (92) | $ (38) |
Tax on income from continuing operations at statutory rate,tax rate | 21.00% | 21.00% | 21.00% |
Tax-exempt interest | $ (2) | $ (2) | $ (3) |
Tax-exempt interest, tax rate | (114.00%) | 0.00% | 2.00% |
Derivative, Gain (Loss) on Derivative, Net | $ 22 | $ (50) | $ (50) |
Valuation allowance | $ (4) | $ 113 | $ 8 |
Valuation allowance, tax rate | (230.00%) | (26.00%) | (4.00%) |
Other, net | $ 1 | $ 2 | $ 0 |
Foreign taxes | $ 8 | $ 6 | $ 40 |
Foreign taxes, tax rate | 448.00% | (1.00%) | (22.00%) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | $ 14 | $ 0 | $ (2) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 794.00% | 0.00% | 1.00% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Amount | $ (29) | $ 28 | |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 7.00% | (15.00%) | |
Other, net, tax rate | 72.00% | 0.00% | 0.00% |
Income tax expense (benefit) | $ 18 | $ (3) | $ 32 |
Effective Income Tax Rate Reconciliation, Percent | 991.00% | 1.00% | (18.00%) |
Variable Interest Entity, Primary Beneficiary [Member] | Income Loss On Variable Interest Entities [Member] | |||
Reconciliation of Effective Tax Rates [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (150) | $ (144) | $ (32) |
Variable Interest Entity, Primary Beneficiary [Member] | Currency Swaps [Member] | Income Loss On Variable Interest Entities [Member] | |||
Reconciliation of Effective Tax Rates [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | 2 | (6) | (12) |
Variable Interest Entity, Primary Beneficiary [Member] | Interest Rate Swaps [Member] | Income Loss On Variable Interest Entities [Member] | |||
Reconciliation of Effective Tax Rates [Line Items] | |||
Derivative, Gain (Loss) on Derivative, Net | $ (152) | $ (138) | $ (20) |
Income Taxes Income Taxes - Rec
Income Taxes Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) $ in Millions | Dec. 31, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | $ 0 |
Income Taxes Income Taxes - NOL
Income Taxes Income Taxes - NOL Usage Table (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Income Loss Reconciliation [Line Items] | ||||
Impact of AMT Repeal on Current Taxes | $ 29,581 | |||
Change in Impact of AMT Repeal on Current Taxes | $ 1,902 | |||
AMT Related to Filing of 2017 Tax Return | 5,536 | |||
AMT Receivable Resulting from TCJA | $ 37,019 | |||
Net Impact of New Tax Law | $ 1,886 | |||
NOL allocated amount | $ 3,744,000 | |||
AFG [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
NOL allocated amount | $ 1,596,000 | |||
Minimum [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | |||
Minimum [Member] | Ambac Assurance [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | |||
Minimum [Member] | AFG [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 | |||
Maximum [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 | |||
Potential Tolling Payment From AAC to IRS | $ 8,000 | |||
Maximum [Member] | Ambac Assurance [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 | |||
Maximum [Member] | AFG [Member] | ||||
Net Income Loss Reconciliation [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2034 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Income Before Income Tax, Domestic and Foreign [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (32) | $ (441) | $ (174) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 34 | 1 | (9) |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 2 | $ (440) | $ (183) |
Income Taxes Impact of New Tax
Income Taxes Impact of New Tax Legislation (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2020 | |
AMT Receivable Resulting from TCJA | $ 37,019 | ||
Change in Impact of AMT Repeal on Current Taxes | $ 1,902 | ||
Impact of AMT Repeal on Current Taxes | $ 29,581 | ||
AMT Related to Filing of 2017 Tax Return | $ 5,536 |
Employment Benefit Plans Postre
Employment Benefit Plans Postretirement Health Care and Other Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Postemployment Benefits, Period Expense | $ 1 | $ 1 | $ 3 |
Unfunded Accumulated Postretirement Benefit Obligations Determined By Company | $ 11 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.75% | 2.25% | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | $ 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 0 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 1 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 3 | ||
Defined Benefit Plan, Benefit Obligation | $ 5 | ||
Maximum [Member] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 5.10% | ||
Minimum [Member] | |||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed, Next Fiscal Year | 4.50% |
Employment Benefit Plans Saving
Employment Benefit Plans Savings Plan (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 2.00% | ||
Defined Contribution Plan, Cost | $ 1 | $ 1 | $ 1 |
Number of Defined Contribution Plans | 2 | ||
Xchange | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 4.00% | ||
Minimum [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | ||
Maximum [Member] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | ||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% |
Employment Benefit Plans Stock
Employment Benefit Plans Stock Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based compensation expense [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,255,643 | ||
Share Based Compensation Arrangement Shares Available for Future Issuance at Target | 2,691,618 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 14 | $ 11 | $ 12 |
Total stock-based compensation (after-tax) | $ 14 | $ 11 | 12 |
Common stock, shares authorized | 130,000,000 | 130,000,000 | |
2013 Plan | |||
Share-based compensation expense [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | ||
2021 Plan | |||
Share-based compensation expense [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,475,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,475,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 5 | $ 3 | 4 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | 10 | 8 | 8 |
Retained Earnings [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Payment Arrangement, Expense | $ 0 | $ 0 | $ 0 |
Employment Benefit Plans Restri
Employment Benefit Plans Restricted Stock Units (Details) | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment, Tax Withholding, Share-based Payment Arrangement | $ | $ 6,000,000 | $ 3,000,000 | $ 3,000,000 |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Restricted Stock Units Vested Number | 332,306 | 428,355 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 345,302 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 504,764 | 345,302 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payment, Tax Withholding, Share-based Payment Arrangement | $ | $ 88,723 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 773,657 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 345,829 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 280,672 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (1,744) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 837,070 | 773,657 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 18.04 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 17.39 | $ 17.36 | $ 19.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 17.89 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 18.34 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 17.82 | $ 18.04 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 5,000,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 |
Annual Bonus and Special Awards [Domain] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU Award Vesting Period | 2 | ||
Long-term Incentive Compensation [Domain] | Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
RSU Award Vesting Period | 3 |
Employment Benefit Plans Perfor
Employment Benefit Plans Performance Units (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shareholder Return Modifier | 10.00% | ||
PerformanceAwardsSettlementPeriod | 75 days | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 6,000,000 | $ 3,000,000 | $ 3,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 345,302 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 504,764 | 345,302 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
PSU Payout Percentage Upon Termination | 100.00% | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shareholder Return Modifier | 2500.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Shareholder Return Modifier | 7500.00% | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSUUnrecognizedCompensationYearstoGo | 1 year 7 months 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Target Units | 100.00% | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 276,777 | ||
PerformanceStockUnitsUnrecognizedCompensationExpense | $ 8,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 844,514 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 396,202 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (804,217) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (4,355) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 722,056 | 844,514 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 18.09 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 18.12 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 16.23 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 19.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 18.97 | $ 18.09 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 289,912 | ||
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsIncrease(Decrease)WeightedAverageGrantDateFairValue | $ 15.09 | ||
Performance Shares [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
Performance Shares [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 220.00% | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
PSUUnrecognizedCompensationYearstoGo | 1 year 8 months 12 days | ||
Payment, Tax Withholding, Share-based Payment Arrangement | $ 88,723 | ||
PerformanceStockUnitsUnrecognizedCompensationExpense | $ 5,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 773,657 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 345,829 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 280,672 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (1,744) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 837,070 | 773,657 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 18.04 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 17.39 | $ 17.36 | $ 19.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 17.89 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 18.34 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 17.82 | $ 18.04 |
Leases Statement (Details)
Leases Statement (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor, Operating Lease, Term of Contract | 8 years | |
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | $ 1 | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 5 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 5 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 5 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 5 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 4 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 14 | |
Lessee, Operating Lease, Liability, Payments, Due | 37 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (9) | |
Operating Lease, Right-of-Use Asset | 23 | $ 25 |
Operating Lease, Payments | 5 | 4 |
Operating Lease, Expense | 5 | 4 |
Variable Lease, Cost | 0 | 0 |
Sublease Income | (1) | (1) |
Lease, Cost | 4 | 4 |
Operating Lease, Liability | $ 28 | $ 30 |
Operating Lease, Weighted Average Remaining Lease Term | 7 years 8 months 12 days | 8 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 7.70% | 7.70% |
Operating Leases, Future Minimum Payments Receivable, in Two Years | $ 1 | |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 1 | |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 1 | |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 1 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 4 | |
Lessor, Operating Lease, Payments to be Received | 10 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 0 | $ 0 |
Minimum [Member] | ||
Lessee Operating Lease Remaining Lease Term | 2 years | |
Maximum [Member] | ||
Lessee Operating Lease Remaining Lease Term | 8 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Loss Contingencies [Line Items] | |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 4 |
Schedule I - Summary Of Investm
Schedule I - Summary Of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties, Cost | $ 2,734 | |
Investments | 2,955 | |
Available-for-sale Securities, Amortized Cost Basis | 2,140 | $ 2,807 |
Other Investments | 690 | 595 |
Available-for-sale Securities | 2,265 | |
Investments | 2,955 | 3,544 |
Short-term Investments [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 415 | 492 |
Available-for-sale Securities | 414 | 492 |
ShortTermInvestmentsMember, including Pledged | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 520 | |
Available-for-sale Securities | 519 | |
Other Investments [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 594 | |
Available-for-sale Securities | 683 | |
Other Investments [Member] | Fixed Income Funds | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities | 690 | |
Fixed Income Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 1,605 | 2,175 |
Available-for-sale Securities | 1,730 | 2,317 |
Fixed Income Securities [Member] | Municipal Bonds [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 315 | 321 |
Available-for-sale Securities | 340 | 358 |
Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 612 | 1,059 |
Available-for-sale Securities | 613 | 1,077 |
Fixed Income Securities [Member] | Debt Security, Government, Non-US [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 89 | 97 |
Available-for-sale Securities | 87 | 98 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 182 | 256 |
Available-for-sale Securities | 252 | 302 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 128 | 74 |
Available-for-sale Securities | 128 | 74 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 234 | 263 |
Available-for-sale Securities | 265 | 303 |
Fixed Income Securities [Member] | U S Government Obligations [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 60 | |
Available-for-sale Securities | 60 | |
Fixed Income Securities [Member] | US Government Debt Securities [Member] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 45 | 105 |
Available-for-sale Securities | 45 | $ 106 |
Fixed Income Securities [Member] | Corporate Obligations, Excluding Related Party Investments | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 612 | |
Available-for-sale Securities | 613 | |
Fair Value Amount, Excluding Related Party Investments [Domain] | ||
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | ||
Investments | $ 2,947 |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) - Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Common stock, shares issued | 46,477,068 | 45,865,081 | ||
Treasury stock, shares | 172,929 | 55,942 | ||
Common Stock, Shares, Outstanding | 46,304,139 | |||
Assets: | ||||
Debt Securities, Available-for-sale | $ 2,265 | |||
Short-term investments, at cost (approximates fair value) | 2,140 | |||
Other Investments | 690 | $ 595 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Investments, Total | 2,955 | 3,544 | ||
Other assets | 68 | 68 | ||
Total assets | 12,303 | 13,220 | ||
Liabilities: | ||||
Total liabilities | 11,187 | 12,074 | ||
Stockholders' equity (deficit): | ||||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common stock | 0 | 0 | ||
Additional paid-in capital | 257 | 242 | ||
Accumulated other comprehensive income | 58 | 79 | $ 42 | |
Retained earnings | 726 | 759 | ||
Common stock held in treasury at cost | (3) | (1) | ||
Total Ambac Financial Group, Inc. stockholders’ equity | 1,038 | 1,080 | ||
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 12,303 | 13,220 | ||
Ambac Financial Group, Inc Parent Company Only [Member] | ||||
Assets: | ||||
Short-term investments, at cost (approximates fair value) | 130 | 76 | ||
Other Investments | 11 | 54 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 3 | 2 | ||
Investments, Total | 254 | 349 | ||
Cash | 1 | 7 | ||
Investment in subsidiaries | 769 | 714 | ||
Investment income due and accrued | 1 | 0 | ||
Other assets | 17 | 13 | ||
Total assets | 1,041 | 1,082 | ||
Taxes Payable, Current | 1 | 0 | ||
Liabilities: | ||||
Accounts payable and other liabilities | 2 | 2 | ||
Total liabilities | 3 | 3 | ||
Stockholders' equity (deficit): | ||||
Preferred Stock, Value, Issued | 0 | 0 | ||
Common stock | 0 | 0 | ||
Additional paid-in capital | 257 | 242 | ||
Accumulated other comprehensive income | 58 | 79 | ||
Retained earnings | 726 | 759 | ||
Common stock held in treasury at cost | (3) | (1) | ||
Total Ambac Financial Group, Inc. stockholders’ equity | 1,038 | 1,080 | $ 1,477 | $ 1,592 |
Total liabilities, redeemable noncontrolling interest and stockholders’ equity | 1,041 | 1,082 | ||
Short-term Investments [Member] | ||||
Assets: | ||||
Debt Securities, Available-for-sale | 414 | 492 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Short-term Investments [Member] | Ambac Financial Group, Inc Parent Company Only [Member] | ||||
Assets: | ||||
Short-term investments, at cost (approximates fair value) | 124 | 229 | ||
Fixed Income Securities [Member] | ||||
Assets: | ||||
Debt Securities, Available-for-sale | 1,730 | 2,317 | ||
Short-term investments, at cost (approximates fair value) | 1,605 | 2,175 | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 | ||
Investment income due and accrued | 10 | 10 | ||
Fixed Income Securities [Member] | Ambac Financial Group, Inc Parent Company Only [Member] | ||||
Assets: | ||||
Debt Securities, Available-for-sale | $ 119 | $ 66 |
Schedule II - Condensed Finan_2
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) - Condensed Statement of Total Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Other income | $ 27 | $ 3 | $ 134 |
Net realized investment gains | (7) | (22) | (81) |
Total revenues | 282 | 156 | 496 |
Expenses: | |||
Pre-tax income (loss) | 2 | (440) | (183) |
Income tax expense (benefit) | (18) | 3 | (32) |
Net income (loss) attributable to common stockholders | (17) | (437) | (216) |
Other comprehensive income, after tax: | |||
Net income (loss) | (16) | (437) | (216) |
Unrealized gains (losses) on securities, net of deferred income taxes of $0 | (12) | 15 | 65 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (8) | 23 | 26 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, after Tax | (1) | 1 | 0 |
Total other comprehensive income (loss), net of income tax | (21) | 37 | 91 |
Total comprehensive income (loss) attributable to common stockholders | (38) | (400) | (125) |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, Tax | (2) | 1 | (8) |
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, Tax | 0 | 0 | 0 |
Revenues: | |||
Investment income | 10 | 13 | 19 |
Net realized investment gains | 5 | 1 | 2 |
Total revenues | 5 | 12 | 18 |
Expenses: | |||
Operating Expenses | 19 | 19 | 16 |
Pre-tax income (loss) | (14) | (7) | 2 |
Income tax expense (benefit) | (2) | 0 | 5 |
Income (loss) before net income (loss) of subsidiaries | 16 | 7 | (7) |
Equity in undistributed net income (loss) of subsidiaries | (1) | (430) | (223) |
Net income (loss) attributable to common stockholders | (17) | (437) | (216) |
Other comprehensive income, after tax: | |||
Net income (loss) | (17) | (437) | (216) |
Unrealized gains (losses) on securities, net of deferred income taxes of $0 | (12) | 15 | 65 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (8) | 23 | 26 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, after Tax | (1) | 1 | 0 |
Changes to postretirement benefit, net of tax | (1) | (3) | (1) |
Total other comprehensive income (loss), net of income tax | (21) | 37 | 91 |
Total comprehensive income (loss) attributable to common stockholders | (38) | (400) | (125) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | $ 0 | $ 0 | $ 0 |
Schedule II - Condensed Finan_3
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) - Condensed Statements of Stockholders' Equity (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | $ (38) | $ (400) | $ (125) | |
Stock-based compensation | (14) | (11) | (12) | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (6) | (3) | (3) | |
Ending balance | 1,098 | 1,140 | 1,536 | |
Stockholders' Equity Attributable to Parent | 1,038 | 1,080 | ||
Noncontrolling Interest, Change in Redemption Value | (12) | |||
Accounting Standards Update 2016-13 [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Effect of New Accounting Principle | (4) | |||
Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | (17) | (437) | (216) | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (4) | (2) | (3) | |
Ending balance | 726 | 759 | 1,203 | |
Noncontrolling Interest, Change in Redemption Value | (12) | |||
Retained Earnings [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Effect of New Accounting Principle | (4) | |||
AOCI Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | (21) | 37 | 91 | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | 0 | |
Ending balance | 58 | 79 | 42 | |
Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | 0 | 0 | 0 | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | |
Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | 0 | 0 | 0 | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | 0 | |
Ending balance | 0 | 0 | 0 | |
Additional Paid-in Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | 0 | 0 | 0 | |
Stock-based compensation | (14) | (11) | (12) | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | 0 | |
Ending balance | 257 | 242 | 232 | |
Common Stock Held in Treasury, at Cost [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | 0 | 0 | 0 | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (2) | (1) | 0 | |
Ending balance | (3) | (1) | 0 | |
Noncontrolling Interest [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | 0 | 0 | 0 | |
Stock-based compensation | 0 | 0 | 0 | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 0 | 0 | 0 | |
Ending balance | 60 | 60 | 60 | |
Parent Company [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | (38) | (400) | (125) | |
Stock-based compensation | (14) | (11) | (12) | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (6) | (3) | (3) | |
Stockholders' Equity Attributable to Parent | 1,038 | 1,080 | 1,477 | $ 1,592 |
Parent Company [Member] | Retained Earnings [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | (17) | (437) | (216) | |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (4) | (2) | (3) | |
Stockholders' Equity Attributable to Parent | 726 | 759 | 1,203 | 1,421 |
Parent Company [Member] | AOCI Attributable to Parent [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Total comprehensive income (loss) | (21) | 37 | 91 | |
Stockholders' Equity Attributable to Parent | 58 | 79 | 42 | (49) |
Parent Company [Member] | Preferred Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stockholders' Equity Attributable to Parent | 0 | 0 | 0 | 0 |
Parent Company [Member] | Common Stock [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stockholders' Equity Attributable to Parent | 0 | 0 | 0 | 0 |
Parent Company [Member] | Additional Paid-in Capital [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | (14) | (11) | (12) | |
Stockholders' Equity Attributable to Parent | 257 | 242 | 232 | 219 |
Parent Company [Member] | Common Stock Held in Treasury, at Cost [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 0 | |||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (2) | (1) | 0 | |
Stockholders' Equity Attributable to Parent | $ (3) | $ (1) | $ 0 | $ 0 |
Schedule II - Condensed Finan_4
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (16) | $ (437) | $ (216) |
Adjustments to reconcile net income loss to net cash used in operating activities: | |||
Accretion (Amortization) of Discounts and Premiums, Investments | (13) | (15) | (63) |
Net realized investment gains | (7) | (22) | (81) |
Decrease in current income taxes payable | (4) | 17 | 35 |
Share-based compensation | 14 | 11 | 12 |
Proceeds from Contributions from Affiliates | 6 | ||
Other, net | (35) | 59 | 79 |
Net cash used in operating activities | (131) | (175) | (311) |
Cash flows from investing activities: | |||
Proceeds from matured bonds | 698 | 137 | 379 |
Purchases of bonds | (343) | (975) | (959) |
Change in short-term investments | 98 | 158 | (218) |
Proceeds from Sale and Maturity of Other Investments | 39 | 374 | 81 |
Payments for (Proceeds from) Other Investing Activities | (5) | 1 | (2) |
Net cash provided by investing activities | 776 | 432 | 1,000 |
AMPS Proceeds | 0 | 0 | 19 |
Cash flows from financing activities: | |||
Net Cash Provided by (Used in) Financing Activities | (657) | (303) | (691) |
Cash and cash equivalents at beginning of period | 20 | 24 | |
Cash and cash equivalents end of period | 17 | 20 | 24 |
Cash paid during the period for: | |||
Income taxes | 15 | 11 | 21 |
Payments to Acquire Businesses, Net of Cash Acquired | (74) | ||
Ambac Financial Group, Inc Parent Company Only [Member] | |||
Cash flows from operating activities: | |||
Net income (loss) | (17) | (437) | (216) |
Adjustments to reconcile net income loss to net cash used in operating activities: | |||
Equity in undistributed net (income) loss of non-debtor subsidiaries | 1 | 423 | 223 |
Accretion (Amortization) of Discounts and Premiums, Investments | (9) | (6) | (6) |
Net realized investment gains | 5 | 1 | 2 |
Decrease in current income taxes payable | 1 | 30 | 15 |
Share-based compensation | 14 | 11 | 12 |
Decrease in other assets | (5) | (1) | (8) |
Other, net | (6) | (10) | (6) |
Net cash used in operating activities | (10) | 11 | 16 |
Cash flows from investing activities: | |||
Proceeds from matured bonds | 33 | 46 | 86 |
Purchases of bonds | (34) | (45) | (2) |
Change in short-term investments | 105 | 89 | (125) |
Proceeds from Sale and Maturity of Other Investments | (8) | 0 | 0 |
Net cash provided by investing activities | 95 | 16 | (22) |
Capital Contribution to Subsidiaries | (92) | (29) | 0 |
AMPS Proceeds | 0 | 0 | 19 |
Cash flows from financing activities: | |||
Net Cash Provided by (Used in) Financing Activities | (92) | (29) | 0 |
Cash and Cash Equivalents, Period Increase (Decrease) | (6) | (2) | (6) |
Cash and cash equivalents at beginning of period | 7 | 9 | 15 |
Cash and cash equivalents end of period | 1 | 7 | 9 |
Cash paid during the period for: | |||
Income taxes | 0 | 0 | $ 1 |
Payments to Acquire Businesses, Net of Cash Acquired | $ (74) | ||
Parent [Member] | |||
Adjustments to reconcile net income loss to net cash used in operating activities: | |||
Net realized investment gains | $ (4) |
Schedule II - Condensed Finan_5
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) Schedule II - Condensed Financial Information of Registrant - Additional Information (Details) | Apr. 29, 1991 |
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 |
Schedule II - Condensed Finan_6
Schedule II - Condensed Financial Information of Registrant (Parent Company Only) Schedule II - Condensed Financial Information of Registrant - Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Operating Loss Carryforwards | $ 3,744 |
Minimum [Member] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 |
Maximum [Member] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 |
AFG [Member] | |
Operating Loss Carryforwards | $ 1,596 |
AFG [Member] | Minimum [Member] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 |
AFG [Member] | Maximum [Member] | |
Operating Loss Carryforwards, Expiration Date | Jan. 1, 2034 |
Ambac Assurance [Member] | Minimum [Member] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 |
Ambac Assurance [Member] | Maximum [Member] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 |
Schedule IV - Reinsurance (Deta
Schedule IV - Reinsurance (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Financial Statements, Captions [Line Items] | |||
Direct Premiums Written | $ 2 | $ (1) | $ (28) |
Ceded Premiums Written | 35 | (1) | 31 |
Assumed Premiums Written | 0 | 0 | 0 |
Premiums Written, Net | $ (33) | $ 0 | $ (60) |
Percentage of Amount Assumed to Net | 0.00% | 0.00% | 0.00% |
Uncategorized Items - ambc-2021
Label | Element | Value |
Unsecured Reinsurance Recoverable, All Other | ambc_UnsecuredReinsuranceRecoverableAllOther | $ 5,000,000 |
Reinsurance Recoverable, Gross, All Other | ambc_ReinsuranceRecoverableGrossAllOther | $ 1,000,000 |