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Segment Information | 6 Months Ended
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Jun. 30, 2012
Segment Information [Abstract] |
Segment Information | 13. Segment Information Ambac has two reportable segments, as follows: (1) Financial Guarantee, which provided financial guarantees (including credit derivatives) for public finance, structured finance and other obligations; and (2) Financial Services, which provided investment agreements, funding conduits, interest rate and currency swaps, principally to clients of the financial guarantee business. Ambac’s reportable segments were strategic business units that offer different products and services. They are managed separately because each business required different marketing strategies, personnel skill sets and technology. Ambac Assurance guarantees the swap and investment agreement obligations of its Financial Services affiliates. Such premiums are determined as if they were premiums paid by third parties, that is, at current market prices. Additionally, Ambac Assurance provides loans to the Financial Services businesses. Inter-segment revenues include the premiums and investment income earned under those loan agreements. Information provided below for “Corporate and Other” primarily relates to corporate activities, including interest income on the investment portfolio. Corporate and Other intersegment revenue relates to payments under the Mediation Agreement between Ambac Financial Group and Ambac Assurance. For additional information on the Mediation Agreement, please refer to Note 1. The following table is a summary of financial information by reportable segment as of and for the three and six months ended June 30, 2012 and 2011:
Three months ended June 30, |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Intersegment Eliminations |  |  | Total Consolidated |
2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 87,665 |  |  | $ | (93,682 | ) |  | $ | 56 |  |  | $ | — |  |  | $ | (5,961 | )
Intersegment |  |  | 1,397 |  |  |  | (1,346 | ) |  |  | — |  |  |  | (51 | ) |  |  | — |
Total revenues |  | $ | 89,062 |  |  | $ | (95,028 | ) |  | $ | 56 |  |  | $ | (51 | ) |  | $ | (5,961 | )
Pre-tax loss from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (717,187 | ) |  | $ | (96,257 | ) |  | $ | (117 | ) |  | $ | — |  |  | $ | (813,561 | )
Intersegment |  |  | (712 | ) |  |  | (429 | ) |  |  | 1,141 |  |  |  | — |  |  |  | — |
Pre-tax loss from continuing operations |  | $ | (717,899 | ) |  | $ | (96,686 | ) |  | $ | 1,024 |  |  | $ | — |  |  | $ | (813,561 | )
Total assets |  | $ | 25,771,887 |  |  | $ | 800,677 |  |  | $ | 39,227 |  |  | $ | — |  |  | $ | 26,611,791 |
2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 203,089 |  |  | $ | (54,966 | ) |  | $ | 72 |  |  | $ | — |  |  | $ | 148,195 |
Intersegment |  |  | 1,407 |  |  |  | (1,336 | ) |  |  | — |  |  |  | (71 | ) |  |  | — |
Total revenues |  | $ | 204,496 |  |  | $ | (56,302 | ) |  | $ | 72 |  |  | $ | (71 | ) |  | $ | 148,195 |
Pre-tax loss from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (34,791 | ) |  | $ | (59,697 | ) |  | $ | (7,388 | ) |  | $ | — |  |  | $ | (101,876 | )
Intersegment |  |  | 341 |  |  |  | (328 | ) |  |  | 157 |  |  |  | (170 | ) |  |  | — |
Pre-tax loss from continuing operations |  | $ | (34,450 | ) |  | $ | (60,025 | ) |  | $ | (7,231 | ) |  | $ | (170 | ) |  | $ | (101,876 | )
Total assets |  | $ | 25,895,317 |  |  | $ | 1,447,059 |  |  | $ | 67,928 |  |  | $ | — |  |  | $ | 27,410,304 |
Six months ended June 30, |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Intersegment Eliminations |  |  | Total Consolidated |
2012: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 357,492 |  |  | $ | (39,430 | ) |  | $ | 113 |  |  | $ | — |  |  | $ | 318,175 |
Intersegment |  |  | 2,896 |  |  |  | (2,789 | ) |  |  | 645 |  |  |  | (752 | ) |  |  | — |
Total revenues |  | $ | 360,388 |  |  | $ | (42,219 | ) |  | $ | 758 |  |  | $ | (752 | ) |  | $ | 318,175 |
Pre-tax loss from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (510,900 | ) |  | $ | (44,587 | ) |  | $ | (4,452 | ) |  | $ | — |  |  | $ | (559,939 | )
Intersegment |  |  | 315 |  |  |  | (1,784 | ) |  |  | 1,469 |  |  |  | — |  |  |  | — |
Pre-tax loss from continuing operations |  | $ | (510,585 | ) |  | $ | (46,371 | ) |  | $ | (2,983 | ) |  | $ | — |  |  | $ | (559,939 | )
Total assets |  | $ | 25,771,887 |  |  | $ | 800,677 |  |  | $ | 39,227 |  |  | $ | — |  |  | $ | 26,611,791 |
2011: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | 378,100 |  |  | $ | (26,771 | ) |  | $ | 149 |  |  | $ | — |  |  | $ | 351,478 |
Intersegment |  |  | 24,086 |  |  |  | (23,941 | ) |  |  | — |  |  |  | (145 | ) |  |  | — |
Total revenues |  | $ | 402,186 |  |  | $ | (50,712 | ) |  | $ | 149 |  |  | $ | (145 | ) |  | $ | 351,478 |
Pre-tax loss from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers |  | $ | (849,872 | ) |  | $ | (36,307 | ) |  | $ | (32,593 | ) |  | $ | — |  |  | $ | (918,772 | )
Intersegment |  |  | 21,631 |  |  |  | (22,154 | ) |  |  | 693 |  |  |  | (170 | ) |  |  | — |
Pre-tax loss from continuing operations |  | $ | (828,241 | ) |  | $ | (58,461 | ) |  | $ | (31,900 | ) |  | $ | (170 | ) |  | $ | (918,772 | )
Total assets |  | $ | 26,588,040 |  |  | $ | 1,291,736 |  |  | $ | 60,653 |  |  | $ | — |  |  | $ | 27,940,429 |
Included in the table above are revenues from unaffiliated customers for the three and six months ended June 30, 2012 relating to net investment income of $89,953 and $195,214 for Financial Guarantee, respectively; $3,826 and $10,625 for Financial Services, respectively; and $57 and $114 for Corporate and Other, respectively, compared with $87,964 and $159,629 for Financial Guarantee, respectively; $7,603 and $12,329 for Financial Services, respectively; and $72 and $149 for Corporate and Other, respectively, for the three and six months ended June 30, 2011. Included in the line item pre-tax loss from continuing operations—unaffiliated customers for the three and six month quarters of 2012 is interest expense, of which $30,205 and $62,254 is for Financial Guarantee, respectively; $1,650 and $3,440 for Financial Services; respectively; and $0 and $0 for Corporate and Other, respectively, compared to the three and six month quarters of 2011, of which $29,646 and $57,715 is for Financial Guarantee, respectively; $2,024 and $4,215 for Financial Services; respectively; and $0 and $0 for Corporate and Other, respectively. Interest expense for Financial Guarantee relates to the interest accrued on surplus notes and interest from a secured borrowing on a variable interest entity, and Financial Services relates to the interest on investment agreements. The following tables summarize gross premiums written, net premiums earned and the net change in fair value of credit derivatives included in the Financial Guarantee segment, by location of risk for the three and six months ended June 30, 2012 and 2011:
|  | Three Months Ended June 30, 2012 |  |  | Three Months Ended June 30, 2011 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |
United States |  | $ | (31,936 | ) |  | $ | 70,555 |  |  | $ | (4,816 | ) |  | $ | (210,913 | ) |  | $ | 78,648 |  |  | $ | 17,717 |
United Kingdom |  |  | 5,971 |  |  |  | 25,551 |  |  |  | (813 | ) |  |  | 18,151 |  |  |  | 11,853 |  |  |  | 1,535 |
Other international |  |  | (1,908 | ) |  |  | 6,936 |  |  |  | (1,786 | ) |  |  | (15,312 | ) |  |  | 8,770 |  |  |  | 5,035 |
Total |  | $ | (27,873 | ) |  | $ | 103,042 |  |  | $ | (7,415 | ) |  | $ | (208,074 | ) |  | $ | 99,271 |  |  | $ | 24,287 |
|  | Six Months Ended June 30, 2012 |  |  | Six Months Ended June 30, 2011 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |
United States |  | $ | (124,661 | ) |  | $ | 143,541 |  |  | $ | (8,267 | ) |  | $ | (355,179 | ) |  | $ | 150,129 |  |  | $ | 10,518 |
United Kingdom |  |  | 12,385 |  |  |  | 40,592 |  |  |  | (4,437 | ) |  |  | 10,883 |  |  |  | 22,786 |  |  |  | 853 |
Other international |  |  | (8,191 | ) |  |  | 13,859 |  |  |  | (1,933 | ) |  |  | (23,989 | ) |  |  | 18,155 |  |  |  | 4,013 |
Total |  | $ | (120,467 | ) |  | $ | 197,992 |  |  | $ | (14,637 | ) |  | $ | (368,285 | ) |  | $ | 191,070 |  |  | $ | 15,384 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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