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Investments (Tables) | 12 Months Ended
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Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract] |
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, 2023, by contractual maturity, were as follows:
|  | Amortized Cost |  | Estimated Fair Value
Due in one year or less |  | $ | 544 |  |  | $ | 544 |
Due after one year through five years |  | 581 |  |  | 560 |
Due after five years through ten years |  | 293 |  |  | 271 |
Due after ten years |  | 80 |  |  | 76 |
|  | 1,500 |  |  | 1,451 |
Residential mortgage-backed securities |  | 239 |  |  | 250 |
Commercial mortgage-backed securities |  | 19 |  |  | 19 |
Collateralized debt obligations |  | 139 |  |  | 139 |
Other asset-backed securities |  | 301 |  |  | 303 |
Total |  | $ | 2,197 |  |  | $ | 2,162 |
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, 2023, 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, 2023 and 2022:
|  | December 31, 2023 |  | December 31, 2022
|  | Less Than 12 Months |  | 12 Months or More |  | Total |  | Less Than 12 Months |  | 12 Months or More |  | Total
|  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss |  | Fair Value |  | Gross Unrealized Loss
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 7 |  |  | $ | — |  |  | $ | 16 |  |  | $ | 1 |  |  | $ | 23 |  |  | $ | 1 |  |  | $ | 21 |  |  | $ | 1 |  |  | $ | 7 |  |  | $ | 1 |  |  | $ | 28 |  |  | $ | 2 |
Corporate obligations |  | 75 |  |  | 2 |  |  | 509 |  |  | 43 |  |  | 584 |  |  | 44 |  |  | 280 |  |  | 21 |  |  | 279 |  |  | 42 |  |  | 559 |  |  | 63 |
Foreign obligations |  | 8 |  |  | — |  |  | 56 |  |  | 6 |  |  | 64 |  |  | 6 |  |  | 27 |  |  | 2 |  |  | 47 |  |  | 7 |  |  | 73 |  |  | 9 |
U.S. government obligations |  | 27 |  |  | 1 |  |  | 37 |  |  | 2 |  |  | 63 |  |  | 4 |  |  | 40 |  |  | 3 |  |  | 19 |  |  | 1 |  |  | 58 |  |  | 4 |
Residential mortgage-backed securities |  | 6 |  |  | — |  |  | 98 |  |  | 14 |  |  | 104 |  |  | 14 |  |  | 132 |  |  | 19 |  |  | — |  |  | — |  |  | 132 |  |  | 19 |
Commercial mortgage-backed securities |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | — |
Collateralized debt obligations |  | 1 |  |  | — |  |  | 93 |  |  | 1 |  |  | 95 |  |  | 1 |  |  | 90 |  |  | 3 |  |  | 36 |  |  | 1 |  |  | 126 |  |  | 4 |
Other asset-backed securities |  | 57 |  |  | 1 |  |  | 35 |  |  | 1 |  |  | 92 |  |  | 1 |  |  | 198 |  |  | 4 |  |  | 5 |  |  | 1 |  |  | 203 |  |  | 5 |
|  | 184 |  |  | 4 |  |  | 844 |  |  | 68 |  |  | 1,028 |  |  | 71 |  |  | 791 |  |  | 53 |  |  | 392 |  |  | 53 |  |  | 1,183 |  |  | 106 |
Short-term |  | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 78 |  |  | — |  |  | 8 |  |  | — |  |  | 86 |  |  | — |
Total temporarily impaired securities |  | $ | 187 |  |  | $ | 4 |  |  | $ | 844 |  |  | $ | 68 |  |  | $ | 1,032 |  |  | $ | 71 |  |  | $ | 869 |  |  | $ | 53 |  |  | $ | 400 |  |  | $ | 53 |  |  | $ | 1,269 |  |  | $ | 106 |
Investment | In addition to these investments, Ambac has unfunded commitments of $41 to private credit and private equity funds at December 31, 2023.
Class of Funds December 31, |  | 2023 |  | 2022 |  | Redemption Frequency |  | Redemption Notice Period
Hedge funds (1) |  | $ | 112 |  |  | $ | 186 |  |  | quarterly or semi-annually |  | 90 days
High yield and leveraged loans (2) (10) |  | 85 |  |  | 80 |  |  | daily |  | 0 - 30 days
Private credit (3) |  | 84 |  |  | 84 |  |  | quarterly if permitted |  | 180 days if permitted
Private equity (4) |  | 70 |  |  | 47 |  |  | quarterly if permitted |  | 90 days if permitted
Investment grade floating rate income (5) |  | 52 |  |  | 63 |  |  | weekly |  | 0 days
Equity market investments (6) (10) |  | 38 |  |  | 64 |  |  | daily or quarterly |  | 0 - 90 days
Real estate properties (7) |  | 21 |  |  | 22 |  |  | see footnote (7) |  | see footnote (7)
Insurance-linked investments (8) |  | 1 |  |  | 1 |  |  | see footnote (9) |  | see footnote (9)
Convertible bonds (9)(10) |  | — |  |  | 8 |  |  | daily |  | 0 days
Total equity investments in pooled funds |  | $ | 463 |  |  | $ | 556 |  |  |  |  |
(1)This class seeks to generate superior risk-adjusted returns through selective asset sourcing, active trading and hedging strategies across a range of asset types. (2)This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes. (3)This class aims to obtain high long-term returns primarily through credit and preferred equity investments with low liquidity and defined term. (4)This class seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. (5)This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes. (6)This class of funds aim to achieve long-term growth through diversified exposure to global equity markets. (7)Investments consist of UK property to generate income and capital growth. (8)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. (9)This class seeks to generate total return from portfolios focused primarily on convertible securities. (10)These categories include fair value amounts totaling $77 and $61 at December 31, 2023 and 2022, respectively, that are readily determinable and are priced through pricing vendors, including for Equity market investments of $38 and $53, High yield and leveraged loans products $39 and $0, and Convertible bonds investments $0 and $8.
Summary of Net Investment Income | Net investment income (loss) was comprised of the following for the affected periods:
Year Ended December 31, |  | 2023 |  | 2022 |  | 2021
Fixed maturity securities |  | $ | 76 |  |  | $ | 61 |  |  | $ | 78 |
Short-term investments |  | 22 |  |  | 11 |  |  | — |
Loans |  | — |  |  | 1 |  |  | — |
Investment expense |  | (6) |  |  | (6) |  |  | (6) |
Securities available-for-sale and short-term |  | 93 |  |  | 66 |  |  | 74 |
Fixed maturity securities - trading |  | 7 |  |  | (23) |  |  | — |
Other investments |  | 40 |  |  | (26) |  |  | 66 |
Total net investment income (loss) |  | $ | 140 |  |  | $ | 17 |  |  | $ | 139 |
Net i
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, 2023 and 2022 were as follows:
|  | December 31, 2023 |  | December 31, 2022
|  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Allowance for Credit Losses |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Fixed maturity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal obligations |  | $ | 72 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 72 |  |  | $ | 44 |  |  | — |  |  | — |  |  | 2 |  |  | 43 |
Corporate obligations |  | 785 |  |  | — |  |  | 4 |  |  | 44 |  |  | 745 |  |  | 659 |  |  | — |  |  | 1 |  |  | 63 |  |  | 598 |
Foreign obligations |  | 105 |  |  | — |  |  | 1 |  |  | 6 |  |  | 100 |  |  | 85 |  |  | — |  |  | — |  |  | 9 |  |  | 76 |
U.S. government obligations |  | 85 |  |  | — |  |  | 1 |  |  | 4 |  |  | 82 |  |  | 68 |  |  | — |  |  | — |  |  | 4 |  |  | 65 |
Residential mortgage-backed securities |  | 239 |  |  | 3 |  |  | 28 |  |  | 14 |  |  | 250 |  |  | 230 |  |  | — |  |  | 28 |  |  | 19 |  |  | 238 |
Commercial mortgage-backed securities |  | 19 |  |  | — |  |  | — |  |  | — |  |  | 19 |  |  | 15 |  |  | — |  |  | — |  |  | — |  |  | 15 |
Collateralized debt obligations |  | 139 |  |  | — |  |  | 1 |  |  | 1 |  |  | 139 |  |  | 141 |  |  | — |  |  | — |  |  | 4 |  |  | 137 |
Other asset-backed securities (1) |  | 301 |  |  | — |  |  | 3 |  |  | 1 |  |  | 303 |  |  | 227 |  |  | — |  |  | 2 |  |  | 5 |  |  | 224 |
|  | 1,744 |  |  | 3 |  |  | 40 |  |  | 71 |  |  | 1,710 |  |  | 1,469 |  |  | — |  |  | 31 |  |  | 106 |  |  | 1,395 |
Short-term |  | 426 |  |  | — |  |  | — |  |  | — |  |  | 426 |  |  | 507 |  |  | — |  |  | — |  |  | — |  |  | 507 |
|  | 2,170 |  |  | 3 |  |  | 40 |  |  | 71 |  |  | 2,135 |  |  | 1,977 |  |  | — |  |  | 31 |  |  | 106 |  |  | 1,902 |
Fixed maturity securities pledged as collateral: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Short-term |  | 27 |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 64 |  |  | — |  |  | — |  |  | — |  |  | 64 |
|  | 27 |  |  | — |  |  | — |  |  | — |  |  | 27 |  |  | 64 |  |  | — |  |  | — |  |  | — |  |  | 64 |
Total available-for-sale investments |  | $ | 2,197 |  |  | $ | 3 |  |  | $ | 40 |  |  | $ | 71 |  |  | $ | 2,162 |  |  | 2,041 |  |  | $ | — |  |  | $ | 31 |  |  | $ | 106 |  |  | $ | 1,966 |
(1)Consists primarily of Ambac's holdings of military housing and student loan securities.
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, |  | 2023 |  | 2022 |  | 2021
Gross realized gains on securities |  | $ | 1 |  |  | $ | 36 |  |  | $ | 14 |
Gross realized losses on securities |  | (4) |  |  | (18) |  |  | (2) |
Foreign exchange (losses) gains |  | (4) |  |  | 14 |  |  | (5) |
Credit impairments |  | (3) |  |  | — |  |  | — |
Intent to sell impairments |  | (12) |  |  | — |  |  | — |
Net investment gains (losses), including impairments |  | $ | (22) |  |  | $ | 31 |  |  | $ | 7 |
Unrealized Gain (Loss) on Investments | 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, |  | 2023 |  | 2022 |  | 2021
Net gains (losses) recognized during the period on trading and equity securities |  | $ | 25 |  |  | $ | (48) |  |  | $ | 23 |
Less: net gains (losses) recognized during the reporting period on trading and equity securities sold during the period |  | 18 |  |  | (26) |  |  | 1 |
Unrealized gains (losses) recognized during the reporting period on trading and equity securities still held at the reporting date |  | $ | 7 |  |  | $ | (22) |  |  | $ | 22 |

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