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SEC Schedule, Article 12-04, Condensed Financial Information of Registrant | 12 Months Ended
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Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract] |
Condensed Financial Information of Parent Company Only Disclosure | AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES Condensed Financial Information Of Registrant (Parent Company Only) Condensed Balance Sheets
($ in millions, except share data) December 31, | 2022 |  | 2021
Assets: |  |  |
Fixed maturity securities, at fair value (amortized cost of $13 and $130) | $ | 12 |  |  | $ | 119 |
Short-term investments, at fair value (amortized cost of $175 and $124) | 175 |  |  | 124 |
Other investments | 16 |  |  | 11 |
Total investments (net of allowance for credit losses of $0 and $3) | 203 |  |  | 254 |
Cash | 3 |  |  | 1 |
Investment in subsidiaries | 1,029 |  |  | 769 |
Investment income due and accrued | 1 |  |  | 1 |
Other assets | 19 |  |  | 17 |
Total assets | $ | 1,255 |  |  | $ | 1,041 |
Liabilities and Stockholders' Equity: |  |  |
Liabilities: |  |  |
Current taxes | $ | 1 |  |  | $ | 1 |
Accounts payable and other liabilities | 3 |  |  | 2 |
Total liabilities | 3 |  |  | 3 |
Stockholders’ equity: |  |  |
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none | — |  |  | — |
Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 46,658,990 and 46,477,068 | — |  |  | — |
Additional paid-in capital | 274 |  |  | 257 |
Accumulated other comprehensive income (loss) | (253) |  |  | 58 |
Retained earnings | 1,245 |  |  | 726 |
Treasury stock, shares at cost: 1,685,233 and 172,929 | (15) |  |  | (3) |
Total Ambac Financial Group, Inc. stockholders’ equity | 1,252 |  |  | 1,038 |
Total liabilities and stockholders’ equity | $ | 1,255 |  |  | $ | 1,041 |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES Condensed Financial Information Of Registrant (Parent Company Only) Condensed Statement of Comprehensive Income
($ in millions) Year Ended December 31, | 2022 |  | 2021 |  | 2020
Revenues: |  |  |  |  |
Investment income | $ | 10 |  |  | $ | 10 |  |  | $ | 13 |
Other income | — |  |  | — |  |  | — |
Net gains on derivative contracts | 1 |  |  | — |  |  | — |
Net investment gains (losses), including impairments | (14) |  |  | (5) |  |  | (1) |
Total revenues | (2) |  |  | 5 |  |  | 12 |
Expenses: |  |  |  |  |
General and administrative expenses | 17 |  |  | 19 |  |  | 19 |
Total expenses | 17 |  |  | 19 |  |  | 19 |
Income (loss) before income taxes and equity in undistributed net gain (loss) of subsidiaries | (20) |  |  | (14) |  |  | (7) |
Federal income tax provision (benefit) | — |  |  | 2 |  |  | — |
Income (loss) before net income (loss) of subsidiaries | (19) |  |  | (16) |  |  | (7) |
Net gain (loss) of subsidiaries | 542 |  |  | (1) |  |  | (430) |
Net income (loss) | $ | 522 |  |  | $ | (17) |  |  | $ | (437) |
Other comprehensive income (loss), after tax: |  |  |  |  |
Net income (loss) | $ | 522 |  |  | $ | (17) |  |  | $ | (437) |
Unrealized gains (losses) on securities, net of income tax provision (benefit) of $(6), $(2) and $1 | (225) |  |  | (12) |  |  | 15 |
Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $—, $— and $— | (85) |  |  | (8) |  |  | 23 |
Credit risk changes of fair value option liabilities, net of income tax provision (benefit) of $—, $— and $— | — |  |  | (1) |  |  | 1 |
Changes to postretirement benefit, net of income tax provision (benefit) of $—, $— and $— | (1) |  |  | (1) |  |  | (3) |
Total other comprehensive income (loss) | (310) |  |  | (21) |  |  | 37 |
Total comprehensive income (loss) attributable to Ambac Financial Group, Inc. | $ | 212 |  |  | $ | (38) |  |  | $ | (400) |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES Condensed Financial Information Of Registrant (Parent Company Only) Condensed Statement of Stockholders' Equity
($ in millions) | Total |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Preferred Stock |  | Common Stock |  | Additional Paid-in Capital |  | Common Stock Held in Treasury, at Cost
Balance at January 1, 2020 | $ | 1,477 |  |  | $ | 1,203 |  |  | $ | 42 |  |  | $ | — |  |  | $ | — |  |  | $ | 232 |  |  | $ | — |
Total comprehensive income (loss) | (400) |  |  | (437) |  |  | 37 |  |  | — |  |  | — |  |  | — |  |  | — |
Adjustment to initially apply ASU 2016-13 | (4) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | 11 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 11 |  |  | — |
Cost of shares (acquired) issued under equity plan | (3) |  |  | (2) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |
Balance at December 31, 2020 | 1,080 |  |  | 759 |  |  | 79 |  |  | — |  |  | — |  |  | 242 |  |  | (1) |
Total comprehensive income (loss) | (38) |  |  | (17) |  |  | (21) |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | 14 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | — |
Cost of shares (acquired) issued under equity plan | (6) |  |  | (4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (2) |
Changes to redeemable noncontrolling interest | (12) |  |  | (12) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2021 | 1,038 |  |  | 726 |  |  | 58 |  |  | — |  |  | — |  |  | 257 |  |  | (3) |
Total comprehensive income (loss) | 211 |  |  | 521 |  |  | (310) |  |  | — |  |  | — |  |  | — |  |  | — |
Stock-based compensation | 17 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17 |  |  | — |
Cost of shares (acquired) issued under equity plan | (4) |  |  | (5) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |
Cost of shares repurchased | (14) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (14) |
Change in redeemable noncontrolling interest | 3 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Purchase of Ambac Assurance auction market preferred shares | 1 |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2022 | $ | 1,252 |  |  | $ | 1,245 |  |  | $ | (253) |  |  | $ | — |  |  | $ | — |  |  | $ | 274 |  |  | $ | (15) |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes. See the Report of Independent Registered Public Accounting Firm. SCHEDULE II AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES Condensed Financial Information Of Registrant (Parent Company Only) Condensed Statements of Cash Flow
($ in millions) Year Ended December 31, | 2022 |  | 2021 |  | 2020
Cash flows from operating activities: |  |  |  |  |
Net income (loss) | $ | 522 |  |  | $ | (17) |  |  | $ | (437) |
Adjustments to reconcile net income loss to net cash used in operating activities: |  |  |  |  |
Net (income) loss of subsidiaries | (542) |  |  | 1 |  |  | 423 |
Amortization of bond premium and discount | (7) |  |  | (9) |  |  | (6) |
Net investment gains (losses), including impairments | 14 |  |  | 5 |  |  | 1 |
Increase (decrease) in current income taxes payable | (1) |  |  | 1 |  |  | 30 |
Share-based compensation | 12 |  |  | 14 |  |  | 11 |
(Increase) decrease in other assets and liabilities | 41 |  |  | (5) |  |  | (1) |
Distributions received from majority owned subsidiary | 6 |  |  | 6 |  |  | — |
Other, net | 1 |  |  | (6) |  |  | (10) |
Net cash provided by (used in) operating activities | 46 |  |  | (10) |  |  | 11 |
Cash flows from investing activities: |  |  |  |  |
Proceeds from sales and matured bonds | 68 |  |  | 33 |  |  | 46 |
Purchases of bonds | (1) |  |  | (34) |  |  | (45) |
Change in short-term investments | (51) |  |  | 105 |  |  | 89 |
Change in other investments | (4) |  |  | (8) |  |  | — |
Acquisitions, net of cash acquired | — |  |  | — |  |  | (74) |
Net cash provided by (used in) investing activities | 12 |  |  | 95 |  |  | 16 |
Cash flows from financing activities: |  |  |  |  |
Capital contribution to subsidiaries | (42) |  |  | (92) |  |  | (29) |
Cost of shares acquired | (14) |  |  | — |  |  | — |
Net cash (used in) financing activities | (57) |  |  | (92) |  |  | (29) |
Net cash flow | 1 |  |  | (6) |  |  | (2) |
Cash at beginning of period | 1 |  |  | 7 |  |  | 9 |
Cash at end of period | $ | 3 |  |  | $ | 1 |  |  | $ | 7 |
Supplemental disclosure of cash flow information: |  |  |  |  |
Cash paid during the period for: |  |  |  |  |
Income taxes | $ | — |  |  | $ | — |  |  | $ | — |
The condensed financial statements should be read in conjunction with the consolidated financial statements and notes thereto and the following notes.

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- Definition The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section S99 -Paragraph 6 -Subparagraph (SX 210.5-04(Schedule I)) -URI https://asc.fasb.org/extlink&oid=126898705&loc=d3e5864-122674 Reference 2: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 45 -Paragraph 11 -URI https://asc.fasb.org/extlink&oid=126929396&loc=d3e5283-111683 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 + Details
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