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Investments (Tables) | 12 Months Ended
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Dec. 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 December 31, 2021 and 2020 were as follows:
|  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
December 31, 2021 |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 315 |  |  | $ | — |  |  | $ | 28 |  |  | $ | 3 |  |  | $ | 340 |
Corporate obligations |  | 612 |  |  | — |  |  | 10 |  |  | 9 |  |  | 613 |
Foreign obligations |  | 89 |  |  | — |  |  | — |  |  | 2 |  |  | 87 |
U.S. government obligations |  | 45 |  |  | — |  |  | 1 |  |  | 1 |  |  | 45 |
Residential mortgage-backed securities |  | 182 |  |  | — |  |  | 70 |  |  | — |  |  | 252 |
Collateralized debt obligations |  | 128 |  |  | — |  |  | — |  |  | — |  |  | 128 |
Other asset-backed securities (2) |  | 234 |  |  | — |  |  | 32 |  |  | — |  |  | 265 |
|  | 1,605 |  |  | — |  |  | 141 |  |  | 16 |  |  | 1,730 |
Short-term |  | 415 |  |  | — |  |  | — |  |  | — |  |  | 414 |
|  | 2,020 |  |  | — |  |  | 141 |  |  | 16 |  |  | 2,145 |
Fixed maturity securities pledged as collateral: |  |  |  |  |  |  |  |  |  |
U.S. government obligations |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |
Short-term |  | 105 |  |  | — |  |  | — |  |  | — |  |  | 105 |
|  | 120 |  |  | — |  |  | — |  |  | — |  |  | 120 |
Total available-for-sale investments |  | $ | 2,140 |  |  | $ | — |  |  | $ | 141 |  |  | $ | 16 |  |  | $ | 2,265 |
|  | Amortized Cost |  | Allowance for Credit Losses |  | Gross 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 obligations |  | 97 |  |  | — |  |  | 1 |  |  | — |  |  | 98 |
U.S. government obligations |  | 105 |  |  | — |  |  | 2 |  |  | 1 |  |  | 106 |
Residential mortgage-backed securities |  | 256 |  |  | — |  |  | 46 |  |  | — |  |  | 302 |
Collateralized debt obligations |  | 74 |  |  | — |  |  | — |  |  | — |  |  | 74 |
Other asset-backed securities (2) |  | 263 |  |  | — |  |  | 40 |  |  | — |  |  | 303 |
|  | 2,175 |  |  | — |  |  | 149 |  |  | 8 |  |  | 2,317 |
Short-term |  | 492 |  |  | — |  |  | — |  |  | — |  |  | 492 |
|  | 2,667 |  |  | — |  |  | 149 |  |  | 8 |  |  | 2,809 |
Fixed maturity securities pledged as collateral: |  |  |  |  |  |  |  |  |  |
U.S. government obligations |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |
Short-term |  | 125 |  |  | — |  |  | — |  |  | — |  |  | 125 |
|  | 140 |  |  | — |  |  | — |  |  | — |  |  | 140 |
Total available-for-sale investments |  | 2,807 |  |  | $ | — |  |  | $ | 149 |  |  | $ | 8 |  |  | $ | 2,949 |
(1)Includes Ambac's holdings of the LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. (2)Consists primarily of Ambac's holdings of 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 December 31, 2021, by contractual maturity, were as follows:
|  | Amortized Cost |  | Estimated Fair Value
Due in one year or less |  | $ | 565 |  |  | $ | 565 |
Due after one year through five years |  | 457 |  |  | 457 |
Due after five years through ten years |  | 406 |  |  | 411 |
Due after ten years |  | 168 |  |  | 188 |
|  | 1,596 |  |  | 1,620 |
Residential mortgage-backed securities |  | 182 |  |  | 252 |
Collateralized debt obligations |  | 128 |  |  | 128 |
Other asset-backed securities |  | 234 |  |  | 265 |
Total |  | $ | 2,140 |  |  | $ | 2,265 |
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 December 31, 2021, 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 December 31, 2021 and 2020:
|  | Less Than 12 Months |  | 12 Months or More |  | Total
|  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 117 |  |  | $ | 3 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 118 |  |  | $ | 3 |
Corporate obligations |  | 363 |  |  | 8 |  |  | 17 |  |  | 1 |  |  | 380 |  |  | 9 |
Foreign obligations |  | 75 |  |  | 2 |  |  | 3 |  |  | — |  |  | 78 |  |  | 2 |
U.S. government obligations |  | 25 |  |  | — |  |  | 2 |  |  | — |  |  | 27 |  |  | 1 |
Residential mortgage-backed securities |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 2 |  |  | — |
Collateralized debt obligations |  | 68 |  |  | — |  |  | 3 |  |  | — |  |  | 71 |  |  | — |
Other asset-backed securities |  | 6 |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | — |
|  | 654 |  |  | 14 |  |  | 28 |  |  | 1 |  |  | 682 |  |  | 16 |
Short-term |  | 114 |  |  | — |  |  | 13 |  |  | — |  |  | 128 |  |  | — |
|  | 768 |  |  | 14 |  |  | 41 |  |  | 1 |  |  | 810 |  |  | 16 |
Fixed maturity securities, pledged as collateral: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | — |
Total collateralized investments |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |  |  | — |
Total temporarily impaired securities |  | $ | 783 |  |  | $ | 14 |  |  | $ | 41 |  |  | $ | 1 |  |  | $ | 825 |  |  | $ | 16 |
|  | Less Than 12 Months |  | 12 Months or More |  | Total
|  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 25 |  |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | 31 |  |  | $ | — |
Corporate obligations |  | 543 |  |  | 6 |  |  | — |  |  | — |  |  | 543 |  |  | 6 |
Foreign obligations |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | — |
U.S. government obligations |  | 17 |  |  | 1 |  |  | — |  |  | — |  |  | 17 |  |  | 1 |
Residential mortgage-backed securities |  | 14 |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | — |
Collateralized debt obligations |  | 27 |  |  | — |  |  | 15 |  |  | — |  |  | 42 |  |  | — |
Other asset-backed securities |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 4 |  |  | — |
|  | 629 |  |  | 7 |  |  | 25 |  |  | — |  |  | 654 |  |  | 8 |
Short-term |  | 187 |  |  | — |  |  | — |  |  | — |  |  | 187 |  |  | — |
|  | 816 |  |  | 7 |  |  | 25 |  |  | — |  |  | 841 |  |  | 8 |
Fixed maturity securities, pledged as collateral: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total collateralized investments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
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 investment gains (losses) and impairments included in earnings for the affected periods:
Year Ended December 31, |  | 2021 |  | 2020 |  | 2019
Gross realized gains on securities |  | $ | 14 |  |  | $ | 38 |  |  | $ | 64 |
Gross realized losses on securities |  | (2) |  |  | (12) |  |  | (5) |
Foreign exchange (losses) gains |  | (5) |  |  | (4) |  |  | 22 |
Credit impairments |  | — |  |  | — |  |  | — |
Intent / requirement to sell impairments |  | — |  |  | — |  |  | — |
Net realized gains (losses) |  | $ | 7 |  |  | $ | 22 |  |  | $ | 81 |
Summary of Roll-Forward of Ambac's Cumulative Credit Losses on Debt Securities for Which Portion of Other-than-Temporary Impairment was Recognized in Other Comprehensive Income |
Year Ended December 31, |  | 2019
Balance, beginning of period |  | $ | 12 |
Reductions for credit impairments previously recognized on: |  |
Securities that matured or were sold during the period |  | (1) |
Balance, end of period |  | $ | 12 |
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 December 31, 2021 and 2020, respectively:
|  | Municipal Obligations |  | Corporate Obligations (2) |  | Mortgage and Asset- backed Securities |  |  |  | Total |  | Weighted Average Underlying Rating (1)
December 31, 2021: |  |  |  |  |  |  |  |  |  |  |  |
Ambac Assurance Corporation |  | $ | 316 |  |  | $ | — |  |  | $ | 439 |  |  |  |  | $ | 754 |  |  | B
National Public Finance Guarantee Corporation |  | 2 |  |  | — |  |  | — |  |  |  |  | 2 |  |  | BBB-
Assured Guaranty Municipal Corporation |  | 1 |  |  | — |  |  | — |  |  |  |  | 1 |  |  | A-
Total |  | $ | 318 |  |  | $ | — |  |  | $ | 439 |  |  |  |  | $ | 757 |  |  | B
December 31, 2020: |  |  |  |  |  |  |  |  |  |  |  |
Ambac Assurance Corporation |  | $ | 320 |  |  | $ | 465 |  |  | $ | 481 |  |  |  |  | $ | 1,266 |  |  | CCC+
National Public Finance Guarantee Corporation |  | 6 |  |  | — |  |  | — |  |  |  |  | 6 |  |  | BBB-
Assured Guaranty Municipal Corporation |  | 1 |  |  | — |  |  | — |  |  |  |  | 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 LSNI Secured Notes issued in connection with the Rehabilitation Exit Transactions. These secured notes were insured by AAC. As further described in Note 1. Background and Business Description, on July 6, 2021, the LSNI Secured Notes were fully redeemed.
Summary of Net Investment Income | Net investment income (loss) was comprised of the following for the affected periods:
Year Ended December 31, |  | 2021 |  | 2020 |  | 2019
Fixed maturity securities |  | $ | 78 |  |  | $ | 103 |  |  | $ | 183 |
Short-term investments |  | — |  |  | 5 |  |  | 17 |
Loans |  | — |  |  | 1 |  |  | 1 |
Investment expense |  | (6) |  |  | (6) |  |  | (6) |
Securities available-for-sale and short-term |  | 74 |  |  | 103 |  |  | 196 |
Other investments |  | 66 |  |  | 19 |  |  | 32 |
Total net investment income (loss) |  | $ | 139 |  |  | $ | 122 |  |  | $ | 227 |
Net investment income (loss) from Other investments primarily represents changes in fair value on equity securities including certain pooled investment funds, and income from investment limited partnerships and other equity interests accounted for under the equity method. The portion of net unrealized gains (losses) related to securities classified as trading and equity securities, excluding those reported using the equity method, still held at the end of each period is as follows:
Year Ended December 31, |  | 2021 |  | 2020 |  | 2019
Net gains (losses) recognized during the period on trading securities |  | $ | 23 |  |  | $ | — |  |  | $ | 24 |
Less: net gains (losses) recognized during the reporting period on trading securities sold during the period |  | 1 |  |  | (18) |  |  | 7 |
Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date |  | $ | 22 |  |  | $ | 18 |  |  | $ | 17 |

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