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Segment Information | 9 Months Ended
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Sep. 30, 2013
Segment Reporting [Abstract] |
Segment Information | 13. SEGMENT INFORMATION Ambac has two reportable segments, as follows: (i) Financial Guarantee, which provided financial guarantees (including credit derivatives) for public finance, structured finance and other obligations; and (ii) 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. Additionally, Ambac Assurance provides loans to the Financial Services businesses. Inter-segment revenues include the premiums and investment income earned under those agreements. Such premiums are determined as if they were premiums paid by third parties, that is, at current market prices. Information provided below for “Corporate and Other” primarily relates to (i) Fresh Start items, including the discharge of liabilities subject to compromise and fair value adjustments to assets and liabilities (ii) amounts received by Ambac under the Mediation Agreement dated September 21, 2011 (as more fully described in Note 1 in Part II, Item 8 of Ambac’s 2012 Form 10-K); and (iii) other corporate activities, including interest income on the investment portfolio, including accrual of interest on the Junior Surplus Notes issued by the Segregated Account. Corporate and Other intersegment revenue relates to receipts under the Mediation Agreement. The following table is a summary of financial information by reportable segment for the affected periods:
Successor Ambac – Three Months Ended September 30, 2013 |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter-segment Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 157,382 |  |  | $ | 14,144 |  |  | $ | 126 |  |  | $ | — |  |  | $ | 171,652 |
Inter-segment |  |  | 512 |  |  |  | (472 | ) |  |  | 8,259 |  |  |  | (8,299 | ) |  |  | — |
Total revenues |  | $ | 157,894 |  |  | $ | 13,672 |  |  | $ | 8,385 |  |  | $ | (8,299 | ) |  | $ | 171,652 |
Pre-tax income (loss) from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) (3) |  | $ | 219,006 |  |  | $ | 12,812 |  |  | $ | (217 | ) |  | $ | — |  |  | $ | 231,601 |
Inter-segment |  |  | (8,664 | ) |  |  | (623 | ) |  |  | 9,287 |  |  |  | — |  |  |  | — |
Pre-tax income (loss) from continuing operations |  | $ | 210,342 |  |  | $ | 12,189 |  |  | $ | 9,070 |  |  | $ | — |  |  | $ | 231,601 |
Total assets as of September 30, 2013 |  | $ | 28,117,113 |  |  | $ | 477,111 |  |  | $ | 39,414 |  |  | $ | — |  |  | $ | 28,633,638 |
Net investment income |  | $ | 51,637 |  |  | $ | 474 |  |  | $ | 15 |  |  | $ | — |  |  | $ | 52,126 |
Insurance intangible amortization |  | $ | 37,473 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 37,473 |
Interest expense |  | $ | 31,281 |  |  | $ | 536 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,817 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | 4 |
Successor Ambac – Five Months Ended September 30, 2013 |  | Financial Guarantee (3) |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter-segment Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 317,287 |  |  | $ | 96,634 |  |  | $ | 146 |  |  | $ | — |  |  | $ | 414,067 |
Inter-segment |  |  | 911 |  |  |  | (846 | ) |  |  | 13,684 |  |  |  | (13,749 | ) |  |  | — |
Total revenues |  | $ | 318,198 |  |  | $ | 95,788 |  |  | $ | 13,830 |  |  | $ | (13,749 | ) |  | $ | 414,067 |
Pre-tax income (loss) from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) |  | $ | 343,896 |  |  | $ | 94,504 |  |  | $ | (1,004 | ) |  | $ | — |  |  | $ | 437,396 |
Inter-segment |  |  | (14,161 | ) |  |  | (1,146 | ) |  |  | 15,307 |  |  | $ | — |  |  |  | — |
Pre-tax income (loss) from continuing operations |  | $ | 329,735 |  |  | $ | 93,358 |  |  | $ | 14,303 |  |  | $ | — |  |  | $ | 437,396 |
Total assets as of September 30, 2013 |  | $ | 28,117,113 |  |  | $ | 477,111 |  |  | $ | 39,414 |  |  | $ | — |  |  | $ | 28,633,638 |
Net investment income |  | $ | 77,652 |  |  | $ | 632 |  |  | $ | 38 |  |  | $ | — |  |  | $ | 78,322 |
Insurance intangible amortization |  | $ | 62,425 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 62,425 |
Interest expense |  | $ | 52,057 |  |  | $ | 904 |  |  | $ | — |  |  | $ | — |  |  | $ | 52,961 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | 428 |  |  | $ | — |  |  | $ | 428 |
Predecessor Ambac – Four Months Ended April 30, 2013 |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter-segment Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 633,010 |  |  | $ | 7,339 |  |  | $ | 39 |  |  | $ | — |  |  | $ | 640,388 |
Inter-segment |  |  | 940 |  |  |  | (882 | ) |  | $ | 197,055 |  |  |  | (197,113 | ) |  |  | — |
Total revenues |  | $ | 633,950 |  |  | $ | 6,457 |  |  | $ | 197,094 |  |  | $ | (197,113 | ) |  | $ | 640,388 |
Pre-tax income (loss) from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) |  | $ | 1,830,165 |  |  | $ | 3,233 |  |  | $ | 1,514,635 |  |  | $ | — |  |  | $ | 3,348,033 |
Inter-segment |  |  | (197,187 | ) |  |  | (1,101 | ) |  |  | 198,288 |  |  | $ | — |  |  |  | — |
Pre-tax income (loss) from continuing operations |  | $ | 1,632,978 |  |  | $ | 2,132 |  |  | $ | 1,712,923 |  |  | $ | — |  |  | $ | 3,348,033 |
Total assets as of April 30, 2013 |  | $ | 28,287,321 |  |  | $ | 536,711 |  |  | $ | 29,403 |  |  | $ | — |  |  | $ | 28,853,435 |
Net investment income |  | $ | 115,129 |  |  | $ | 1,572 |  |  | $ | 39 |  |  | $ | — |  |  | $ | 116,740 |
Interest expense |  | $ | 29,718 |  |  | $ | 1,307 |  |  | $ | — |  |  | $ | — |  |  | $ | 31,025 |
Reorganization items (4) |  | $ | (1,231,550 | ) |  | $ | 1,505 |  |  | $ | (1,515,135 | ) |  | $ | — |  |  | $ | (2,745,180 | )
Predecessor Ambac – Three months ended September 30, 2012 |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter-segment Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 230,014 |  |  | $ | (33,021 | ) |  | $ | 169 |  |  | $ | — |  |  | $ | 197,162 |
Inter-segment |  |  | 1,244 |  |  |  | (1,197 | ) |  |  | — |  |  |  | (47 | ) |  |  | — |
Total revenues |  | $ | 231,258 |  |  | $ | (34,218 | ) |  | $ | 169 |  |  | $ | (47 | ) |  | $ | 197,162 |
Pre-tax income (loss) from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) |  | $ | 196,302 |  |  | $ | (35,434 | ) |  | $ | (2,828 | ) |  | $ | — |  |  | $ | 158,040 |
Inter-segment |  |  | 2,530 |  |  |  | (1,897 | ) |  |  | (633 | ) |  |  | — |  |  |  | — |
Pre-tax income (loss) from continuing operations |  | $ | 198,832 |  |  | $ | (37,331 | ) |  | $ | (3,461 | ) |  | $ | — |  |  | $ | 158,040 |
Total assets as of September 30, 2012 |  | $ | 26,206,822 |  |  | $ | 703,945 |  |  | $ | 37,125 |  |  | $ | — |  |  | $ | 26,947,892 |
Net investment income |  | $ | 81,037 |  |  | $ | 2,986 |  |  | $ | 55 |  |  | $ | — |  |  | $ | 84,078 |
Interest expense |  | $ | 21,712 |  |  | $ | 1,556 |  |  | $ | — |  |  | $ | — |  |  | $ | 23,268 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | 1,252 |  |  | $ | — |  |  | $ | 1,252 |
Predecessor Ambac – Nine months ended September 30, 2012 |  | Financial Guarantee |  |  | Financial Services |  |  | Corporate and Other |  |  | Inter-segment Eliminations |  |  | Consolidated |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 587,506 |  |  | $ | (72,451 | ) |  | $ | 282 |  |  | $ | — |  |  | $ | 515,337 |
Inter-segment |  |  | 4,140 |  |  |  | (3,986 | ) |  |  | 645 |  |  |  | (799 | ) |  |  | — |
Total revenues |  | $ | 591,646 |  |  | $ | (76,437 | ) |  | $ | 927 |  |  | $ | (799 | ) |  | $ | 515,337 |
Pre-tax income (loss) from continuing operations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) |  | $ | (314,598 | ) |  | $ | (80,021 | ) |  | $ | (7,280 | ) |  | $ | — |  |  | $ | (401,899 | )
Inter-segment |  |  | 2,845 |  |  |  | (3,681 | ) |  |  | 836 |  |  |  | — |  |  |  | — |
Pre-tax income (loss) from continuing operations |  | $ | (311,753 | ) |  | $ | (83,702 | ) |  | $ | (6,444 | ) |  | $ | — |  |  | $ | (401,899 | )
Total assets as of September 30, 2012 |  | $ | 26,206,822 |  |  | $ | 703,945 |  |  | $ | 37,125 |  |  | $ | — |  |  | $ | 26,947,892 |
Net investment income |  | $ | 276,251 |  |  | $ | 13,611 |  |  | $ | 169 |  |  | $ | — |  |  | $ | 290,031 |
Interest expense |  | $ | 83,966 |  |  | $ | 4,996 |  |  | $ | — |  |  | $ | — |  |  | $ | 88,962 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | 4,480 |  |  | $ | — |  |  | $ | 4,480 |
(1) | Included in both revenues from unaffiliated customers and in pre-tax income (loss) from continuing operations from unaffiliated customers is net investment income.
(2) | Included in pre-tax income (loss) from continuing operations from unaffiliated customers is interest expense.
(3) | Included in pre-tax income from continuing operations from unaffiliated customers is amortization of intangible asset arising from financial guarantee contracts that were set to fair value upon adoption of Fresh Start. See “Note 7: Financial Guarantee Insurance Contracts,” for additional information.
(4) | Refer to Note 2: Fresh Start Financial Statement Reporting, for a further discussion of Reorganization items.
The following table summarizes gross premiums written, net premiums earned and the net change in fair value of credit derivatives included in the Financial Guarantee segment by location of risk for the affected periods:
|  | Successor Ambac – Three Months Ended September 30, 2013 |  |  |  |  |  |  | Predecessor Ambac – Three Months Ended September 30, 2012 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change In Fair Value Of Credit Derivatives |  |  |  |  |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change In Fair Value Of Credit Derivatives |
United States |  | $ | (25,030 | ) |  | $ | 50,234 |  |  | $ | 21,911 |  |  |  |  |  |  | $ | (40,748 | ) |  | $ | 92,132 |  |  | $ | 15,845 |
United Kingdom |  |  | (2,789 | ) |  |  | 15,273 |  |  |  | 948 |  |  |  |  |  |  |  | (1,060 | ) |  |  | 14,763 |  |  |  | 716 |
Other international |  |  | (6,561 | ) |  |  | 5,442 |  |  |  | 8,335 |  |  |  |  |  |  |  | (13,502 | ) |  |  | 6,179 |  |  |  | 10,879 |
Total |  | $ | (34,380 | ) |  | $ | 70,949 |  |  | $ | 31,194 |  |  |  |  |  |  | $ | (55,310 | ) |  | $ | 113,074 |  |  | $ | 27,440 |
|  | Successor Ambac – Five Months Ended September 30, 2013 |  |  |  |  |  |  | Predecessor Ambac – Four Months Ended April 30, 2013 |  |  | Predecessor Ambac – Nine Months Ended September 30, 2012 |
|  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change In Fair Value Of Credit Derivatives |  |  |  |  |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change In Fair Value Of Credit Derivatives |  |  | Gross Premiums Written |  |  | Net Premiums Earned |  |  | Net Change in Fair Value of Credit Derivatives |
United States |  | $ | (49,523 | ) |  | $ | 96,574 |  |  | $ | 36,860 |  |  |  |  |  |  | $ | (16,102 | ) |  | $ | 104,594 |  |  | $ | (31,134 | ) |  | $ | (165,408 | ) |  | $ | 235,672 |  |  | $ | 7,577 |
United Kingdom |  |  | (4,706 | ) |  |  | 24,113 |  |  |  | 3,061 |  |  |  |  |  |  |  | 10,673 |  |  |  | 18,071 |  |  |  | (5,861 | ) |  |  | 11,325 |  |  |  | 55,355 |  |  |  | (3,721 | )
Other international |  |  | (14,232 | ) |  |  | 8,301 |  |  |  | 42,493 |  |  |  |  |  |  |  | (8,696 | ) |  |  | 7,335 |  |  |  | (23,389 | ) |  |  | (21,694 | ) |  |  | 20,039 |  |  |  | 8,947 |
Total |  | $ | (68,461 | ) |  | $ | 128,988 |  |  | $ | 82,414 |  |  |  |  |  |  | $ | (14,125 | ) |  | $ | 130,000 |  |  | $ | (60,384 | ) |  | $ | (175,777 | ) |  | $ | 311,066 |  |  | $ | 12,803 |

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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 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 Reference 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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