Segment Information (Tables)

12 Months Ended

Dec. 31, 2013

Summary of Financial Information by Reportable Segment

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


	Financial Guarantee ⁽³⁾			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Successor Ambac–Period from May 1 through December 31, 2013
Revenues:
Unaffiliated customers⁽¹⁾	$	464,701		$	116,177		$	170		$	—		$	581,048
Inter-segment		1,837			(1,210	)		22,126			(22,753	)		—

Total revenues	$	466,538		$	114,967		$	22,296		$	(22,753	)	$	581,048

Pre-tax income (loss) from continuing operations:
Unaffiliated customers^{(1) (2) (3)}	$	402,651		$	113,019		$	(3,354	)	$	—		$	512,316
Inter-segment		(23,163	)		(1,644	)		24,807			—			—

Pre-tax income (loss) from continuing operations	$	379,488		$	111,375		$	21,453		$	—		$	512,316

Total assets as of December 31, 2013	$	26,597,097		$	472,886		$	36,956		$	—		$	27,106,939

Net investment income	$	145,269		$	1,115		$	62		$	—		$	146,446
Insurance intangible amortization	$	99,658		$	—		$	—		$	—		$	99,658
Interest expense	$	83,595		$	1,355		$	—		$	—		$	84,950
Reorganization items⁽⁴⁾	$	—		$	—		$	493		$	—		$	493


	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Predecessor Ambac–Period from January 1 through April 30, 2013
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	)


	Financial Guarantee			Financial Services			Corporate and Other			Inter-segment Eliminations			Consolidated
Predecessor Ambac – Year Ended December 31, 2012
Revenues:
Unaffiliated customers⁽¹⁾	$	758,331		($	72,977	)	$	335		$	—		$	685,689
Inter-segment		5,189			(4,992	)		645			(842	)		—

Total revenues	$	763,520		($	77,969	)	$	980		($	842	)	$	685,689

Pre-tax income (loss) from continuing operations:
Unaffiliated customers^{(1) (2)}	($	166,761	)	($	83,015	)	($	6,729	)	$	—		($	256,505	)
Inter-segment		580			(5,775	)		5,195			—			—

Pre-tax income (loss) from continuing operations	($	166,181	)	($	88,790	)	($	1,534	)	$	—		($	256,505	)

Total assets as of December 31, 2012	$	26,519,480		$	533,528		$	32,257		$	—		$	27,085,265

Net investment income	$	365,912		$	16,769		$	221		$	—		$	382,902
Interest expense	$	105,973		$	6,347		$	—		$	—		$	112,320
Reorganization items⁽⁴⁾	$	—		$	—		$	7,215		$	—		$	7,215

(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 (loss) 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 8: Financial Guarantee Insurance Contracts,” for additional information.

(4)	Refer to Note 3: Fresh Start Financial Statement Reporting, for a further discussion of Reorganization items.

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

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


	Successor Ambac–Period from May through December 31, 2013							Predecessor Ambac–Period from January 1 through April 30, 2013								Predecessor Ambac–Year Ended December 31, 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	$	(61,255	)	$	165,099	$	122,696	$	(16,102	)	$	104,594	$	(31,134	)	$	(260,517	)	$	315,367	$	(8,496	)
United Kingdom		(7,368	)		35,387		22,548		10,673			18,071		(5,861	)		10,785			73,955		(5,709	)
Other international		(11,686	)		13,032		47,625		(8,696	)		7,335		(23,389	)		(27,776	)		25,282		4,986

Total	$	(80,309	)	$	213,518	$	192,869	$	(14,125	)	$	130,000	$	(60,384	)	$	(277,508	)	$	414,604	$	(9,219	)

- Definition

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

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