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Segment Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment Information | 19. SEGMENT INFORMATION Ambac has two reportable segments, as follows: (i) Financial Guarantee, which provides financial guarantees (including credit derivatives) for public finance, structured finance and international obligations; and (ii) Financial Services, which provides investment agreements, funding conduits, interest rate swaps, principally to clients of the financial guarantee business. Ambac’s reportable segments were strategic business units that offered 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 subsidiaries. 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 unaffiliated “Corporate and Other” primarily relates to investment income on Ambac's investment portfolio as well as assets allocated for future purchase of residential real estate properties from Ambac Assurance insured transactions. Equity in net income of investees accounted for by the equity method relates to the Owner Trust Certificate received when Ambac deposited its Segregated Account junior surplus note into a Trust (see Note 1. Background and Business Description for further information relating to the sale by Ambac of a junior surplus note issued to it by the Segregated Account). Inter-segment for "Corporate and Other" relates to amounts received by Ambac under the Mediation Agreement dated September 21, 2011 (as more fully described in Note 1. Background and Business Description), including accrual of interest on the junior surplus notes issued by the Segregated Account prior to Ambac's deposit into a Trust. The following table is a summary of financial information by reportable segment for the affected periods:
Successor Ambac - Year Ended December 31, 2015 |  | Financial Guarantee |  | Financial Services |  | Corporate and Other |  | Inter-segment Eliminations |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 679,662 |  |  | $ | (44,003 | ) |  | $ | 4,663 |  |  | $ | — |  |  | $ | 640,322 |
Equity in net income of investees accounted for by equity method |  | — |  |  | — |  |  | 4,336 |  |  | — |  |  | 4,336 |
Inter-segment |  | 349 |  |  | (849 | ) |  | 645 |  |  | (145 | ) |  | — |
Total revenues |  | 680,011 |  |  | (44,852 | ) |  | 9,644 |  |  | (145 | ) |  | 644,658 |
Pre-tax income (loss): |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1)(2)(3) |  | 560,332 |  |  | (46,869 | ) |  | (7,741 | ) |  | — |  |  | 505,722 |
Equity in net income of investees accounted for by equity method |  | — |  |  | — |  |  | 4,336 |  |  | — |  |  | 4,336 |
Inter-segment |  | (2,744 | ) |  | (1,383 | ) |  | 4,127 |  |  | — |  |  | — |
Pre-tax income (loss) |  | 557,588 |  |  | (48,252 | ) |  | 722 |  |  | — |  |  | 510,058 |
Total assets as of December 31, 2015 |  | 23,108,387 |  |  | 348,130 |  |  | 268,388 |  |  | 3,165 |  |  | 23,728,070 |
Net investment income |  | 256,636 |  |  | 548 |  |  | 9,105 |  |  | — |  |  | 266,289 |
Insurance intangible amortization |  | 169,557 |  |  | — |  |  | — |  |  | — |  |  | 169,557 |
Interest expense |  | 115,630 |  |  | 907 |  |  | — |  |  | — |  |  | 116,537 |
Goodwill impairment |  | 514,511 |  |  | — |  |  | — |  |  | — |  |  | 514,511 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Successor Ambac - Year Ended December 31, 2014 |  | Financial Guarantee |  | Financial Services |  | Corporate and Other |  | Inter-segment Eliminations |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 506,559 |  |  | $ | (179,691 | ) |  | $ | 407 |  |  | $ | — |  |  | $ | 327,275 |
Equity in net income of investees accounted for by equity method |  | — |  |  | — |  |  | 1,395 |  |  | — |  |  | 1,395 |
Inter-segment |  | 1,243 |  |  | (1,197 | ) |  | 23,299 |  |  | (23,345 | ) |  | — |
Total revenues |  | 507,802 |  |  | (180,888 | ) |  | 25,101 |  |  | (23,345 | ) |  | 328,670 |
Pre-tax income (loss): |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1)(2)(3) |  | 684,750 |  |  | (182,941 | ) |  | (9,951 | ) |  | — |  |  | 491,858 |
Equity in net income of investees accounted for by equity method |  | — |  |  | — |  |  | 1,395 |  |  | — |  |  | 1,395 |
Inter-segment |  | (25,443 | ) |  | (1,545 | ) |  | 26,988 |  |  | — |  |  | — |
Pre-tax income (loss) |  | 659,307 |  |  | (184,486 | ) |  | 18,432 |  |  | — |  |  | 493,253 |
Total assets as of December 31, 2014 |  | 24,448,346 |  |  | 412,510 |  |  | 284,278 |  |  | 14,730 |  |  | 25,159,864 |
Net investment income |  | 298,020 |  |  | 1,123 |  |  | 1,803 |  |  | — |  |  | 300,946 |
Insurance intangible amortization |  | 151,830 |  |  | — |  |  | — |  |  | — |  |  | 151,830 |
Interest expense |  | 125,892 |  |  | 1,584 |  |  | — |  |  | — |  |  | 127,476 |
Reorganization items (4) |  | $ | — |  |  | $ | — |  |  | $ | 211 |  |  | $ | — |  |  | $ | 211 |
Successor Ambac – Period from May 1 through December 31, 2013 |  | Financial Guarantee |  | Financial Services |  | Corporate and Other |  | Inter-segment Eliminations |  | Consolidated
Revenues: |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) |  | $ | 464,701 |  |  | $ | 116,177 |  |  | $ | 170 |  |  | $ | — |  |  | $ | 581,048 |
Inter-segment |  | 1,837 |  |  | (1,210 | ) |  | 219,181 |  |  | (219,808 | ) |  | — |
Total revenues |  | 466,538 |  |  | 114,967 |  |  | 219,351 |  |  | (219,808 | ) |  | 581,048 |
Pre-tax income (loss): |  |  |  |  |  |
Unaffiliated customers (1) (2) (3) |  | 405,004 |  |  | 113,347 |  |  | (6,035 | ) |  | — |  |  | 512,316 |
Inter-segment |  | (220,218 | ) |  | (1,644 | ) |  | 221,862 |  |  | — |  |  | — |
Pre-tax income (loss) |  | 184,786 |  |  | 111,703 |  |  | 215,827 |  |  | — |  |  | 512,316 |
Total assets as of December 31, 2013 |  | 26,590,873 |  |  | 448,473 |  |  | 53,908 |  |  | (777 | ) |  | 27,092,477 |
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 |
Predecessor Ambac - Period from Jan 1 through 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 | ) |  | — |  |  | (58 | ) |  | — |
Total revenues |  | 633,950 |  |  | 6,457 |  |  | 39 |  |  | (58 | ) |  | 640,388 |
Pre-tax income (loss): |  |  |  |  |  |  |  |  |  |
Unaffiliated customers (1) (2) (3) |  | 1,831,237 |  |  | 3,394 |  |  | 1,513,402 |  |  | — |  |  | 3,348,033 |
Inter-segment |  | (132 | ) |  | (1,101 | ) |  | 1,233 |  |  | — |  |  | — |
Pre-tax income (loss) |  | 1,831,105 |  |  | 2,293 |  |  | 1,514,635 |  |  | — |  |  | 3,348,033 |
Total assets as of April 30, 2013 |  | 28,302,214 |  |  | 512,021 |  |  | 31,070 |  |  | 8,130 |  |  | 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 | )
(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 (loss) 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.
(4) | Refer to Note 1. Background and Business Description, Chapter 11 Reorganization of Ambac for a further discussion of Ambac's Reorganization.
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
|  | 2015 |  |  | 2014
Year Ended December 31 |  | 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 |  | $ | (13,028 | ) |  | $ | 229,658 |  |  | $ | 39,633 |  |  |  | $ | (46,279 | ) |  | $ | 197,154 |  |  | $ | 8,669 |
United Kingdom |  | 3,652 |  |  | 68,799 |  |  | — |  |  |  | (221,516 | ) |  | 31,672 |  |  | — |
Other international |  | (28,196 | ) |  | 14,138 |  |  | 2,068 |  |  |  | (20,515 | ) |  | 17,534 |  |  | 15,237 |
Total |  | $ | (37,572 | ) |  | $ | 312,595 |  |  | $ | 41,701 |  |  |  | $ | (288,310 | ) |  | $ | 246,360 |  |  | $ | 23,906 |
|  | Successor Ambac |  |  | Predecessor Ambac
|  | Period from May 1 through December 31, 2013 |  |  | Period from Jan1 through April 30, 2013
|  | 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 | )
United Kingdom |  | (7,368 | ) |  | 35,387 |  |  | 22,548 |  |  |  | 10,673 |  |  | 18,071 |  |  | (5,861 | )
Other international |  | (11,686 | ) |  | 13,032 |  |  | 47,625 |  |  |  | (8,696 | ) |  | 7,335 |  |  | (23,389 | )
Total |  | $ | (80,309 | ) |  | $ | 213,518 |  |  | $ | 192,869 |  |  |  | $ | (14,125 | ) |  | $ | 130,000 |  |  | $ | (60,384 | )

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