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Investments (Tables)
 3 Months Ended
Mar. 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 March 31, 2021 and December 31, 2020, were as follows:
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
March 31, 2021:
Fixed maturity securities:
Municipal obligations$329 $— $38 $— $366 
Corporate obligations (1)
1,106 — 14 13 1,108 
Foreign obligations98 — — 1 97 
U.S. government obligations109 — 1 2 108 
Residential mortgage-backed securities219 — 50 — 269 
Collateralized debt obligations97 — — — 97 
Other asset-backed securities (2)
262 — 33 — 295 
2,221 — 136 17 2,341 
Short-term398 — — — 397 
2,619 — 136 17 2,738 
Fixed maturity securities pledged as collateral:
U.S. government obligations15 — — — 15 
Short-term105 — — — 105 
120 — — — 120 
Total available-for-sale investments$2,739 $— $136 $17 $2,858 
Amortized
Cost		Allowance for Credit LossesGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair Value
December 31, 2020:
Fixed maturity securities:
Municipal obligations$321 $— $37 $— $358 
Corporate obligations (1)
1,059 — 24 6 1,077 
Foreign obligations97 — 1 — 98 
U.S. government obligations105 — 2 1 106 
Residential mortgage-backed securities256 — 46 — 302 
Collateralized debt obligations74 — — — 74 
Other asset-backed securities (2)
263 — 40 — 303 
2,175 — 149 8 2,317 
Short-term492 — — — 492 
2,667 — 149 8 2,809 
Fixed maturity securities pledged as collateral:
U.S. government obligations15 — — — 15 
Short-term125 — — — 125 
140 — — — 140 
Total available-for-sale investments$2,807 $— $149 $8 $2,949 
(1)Includes Ambac's holdings of the secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions.
(2)Consists primarily of Ambac's holdings of the military housing and student loan securities.
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 March 31, 2021, by contractual maturity, were as follows:
Amortized
Cost		Estimated
Fair Value
Due in one year or less$617 $618 
Due after one year through five years906 912 
Due after five years through ten years455 459 
Due after ten years183 209 
2,160 2,197 
Residential mortgage-backed securities219 269 
Collateralized debt obligations97 97 
Other asset-backed securities262 295 
Total$2,739 $2,858 
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 March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020:
Less Than 12 Months12 Months or MoreTotal
Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss		Fair ValueGross
Unrealized
Loss
March 31, 2021:
Fixed maturity securities:
Municipal obligations$19 $— $16 $— $35 $— 
Corporate obligations339 13 — — 339 13 
Foreign obligations70 1 — — 70 1 
U.S. government obligations25 2 — — 25 2 
Residential mortgage-backed securities
15 — 2 — 17 — 
Collateralized debt obligations13 — 13 — 26 — 
Other asset-backed securities— — — — — — 
481 17 31 — 512 17 
Short-term157 — — — 157 — 
Total securities$638 $17 $31 $— $669 $17 
December 31, 2020:
Fixed maturity securities:
Municipal obligations$25 $— $6 $— $31 $— 
Corporate obligations543 6 — — 543 6 
Foreign obligations3 — — — 3 — 
U.S. government obligations17 1 — — 17 1 
Residential mortgage-backed securities
14 — — — 14 — 
Collateralized debt obligations27 — 15 — 42 — 
Other asset-backed securities— — 4 — 4 — 
629 7 25 — 654 8 
Short-term187 — — — 187 — 
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 realized gains (losses) and impairments included in earnings for the affected periods:
Three Months Ended March 31,20212020
Gross realized gains on securities$7 $6 
Gross realized losses on securities(1)— 
Foreign exchange (losses) gains(4)2 
Credit impairments— — 
Intent / requirement to sell impairments— — 
Net realized gains (losses)$2 $8 
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 March 31, 2021 and December 31, 2020, respectively: 
Municipal
Obligations
Corporate
Obligations (2)
Mortgage
and Asset-
backed
Securities		Total
Weighted
Average
Underlying
Rating (1)
March 31, 2021:
Ambac Assurance Corporation$323 $464 $465 $1,252 CCC+
National Public Finance Guarantee Corporation4 — — 4 BBB-
Assured Guaranty Municipal Corporation1 — — 1 C
Total$328 $464 $465 $1,257 CCC+
December 31, 2020:
Ambac Assurance Corporation$320 $465 $481 $1,266 CCC+
National Public Finance Guarantee Corporation6 — — 6 BBB-
Assured Guaranty Municipal Corporation1 — — 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 secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. These secured notes are insured by AAC.
Equity Method Investments [Table Text Block] Ambac has unfunded commitments of $102 to private credit and private equity funds at March 31, 2021.
Fair Value
Class of FundsMarch 31,
2021		December 31,
2020		Redemption FrequencyRedemption Notice Period
Real estate properties (1)
$16 $16 quarterly10 business days
Hedge funds (2)
210 196 quarterly or semi-annually90 days
High yields and leveraged loans (3) (10)
77 78 daily0 - 30 days
Private credit (4)
67 65 quarterly if permitted180 days if permitted
Insurance-linked investments (5)
3 3 
see footnote (5)
see footnote (5)
Equity market investments (6) (10)
82 73 daily or quarterly0 - 90 days
Investment grade floating rate income (7)
98 73 weekly0 days
Private equity (8)
14 13 quarterly if permitted90 days if permitted
Emerging markets debt (9) (10)
33 25 daily 0 days
Total equity investments in pooled funds$600 $543 
(1)Investments consist of UK property to generate income and capital growth.
(2)This class seeks to generate superior risk-adjusted returns through selective asset sourcing, active trading and hedging strategies across a range of asset types.
(3)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.
(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 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.
(6)This class of funds aim to achieve long term growth through diversified exposure to global equity-markets.
(7)This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes.
(8)This class seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments.
(9)This class seeks long-term income and growth through investments in the bonds of issuers in emerging markets.
(10)These categories include fair value amounts totaling $99 and $89 at March 31, 2021 and December 31, 2020, respectively, that are readily determinable and are priced through pricing vendors, including for High yield and leveraged loans products: $0 and $3; for Equity market investments: $66 and $60; and for Emerging markets debt $33 and $25.
Summary of Net Investment Income
Net investment income (loss) was comprised of the following for the affected periods:
Three Months Ended March 31,20212020
Fixed maturity securities$23 $30 
Short-term investments— 2 
Investment expense(1)(2)
Securities available-for-sale and short-term22 31 
Other investments27 (52)
Total net investment income (loss)$49 $(21)
Net investment income (loss) from Other investments primarily represents changes in fair value on securities classified as trading
or accounted for under the fair value option and income from investment limited partnerships accounted for under the equity method.
The portion of net unrealized gains (losses) related to trading securities still held at the end of each period is as follows:
Three Months Ended March 31,20212020
Net gains (losses) recognized during the period on trading securities$7 $(32)
Less: net gains (losses) recognized during the reporting period on trading securities sold during the period— (3)
Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date$6 $(29)