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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities

The following table sets forth the carrying amount and fair value of Ambac’s financial assets and liabilities as of September 30, 2025, and December 31, 2024, including the level within the fair value hierarchy at which fair value measurements are categorized. As required by the Fair Value Measurement Topic of the ASC, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

						September 30, 2025																														December 31, 2024
						Carrying Amount						Total Fair Value						Fair Value Measurements Categorized as:																		Carrying Amount						Total Fair Value						Fair Value Measurements Categorized as:
																		Level 1						Level 2						Level 3																		Level 1						Level 2						Level 3
Financial assets:
Fixed maturity securities:
Municipal obligations						$	11,510					$	11,510					$	—					$	11,510					$	—					$	14,083					$	14,083					$	—					$	14,083					$	—
Corporate obligations						70,690						70,690						—						70,690						—						89,192						89,192						—						89,192						—
U.S. government obligations						39,171						39,171						39,171						—						—						40,995						40,995						40,995						—						—
Residential mortgage-backed securities						3,294						3,294						—						3,294						—						2,446						2,446						—						2,446						—
Commercial mortgage-backed securities						1,819						1,819						—						1,819						—						2,101						2,101						—						2,101						—
Collateralized debt obligations						2,319						2,319						—						2,319						—						3,142						3,142						—						3,142						—
Other asset-backed securities						2,298						2,298						—						2,298						—						5,061						5,061						—						5,061						—
Short term investments						295,825						295,825						295,825						—						—						127,601						127,601						127,601						—						—
Other investments (1)						28,302						7,685						—						—						—						28,294						7,499						—						—						—
Cash, cash equivalents and restricted cash						51,767						51,767						51,767						—						—						47,275						47,275						47,275						—						—
Other assets-loans						—						—						—						—						—						3,434						3,434						—						—						3,434
Other assets - Derivatives:
FX forward contracts						378						378						—						378						—						—						—						—						—						—
Total financial assets						$	507,373					$	486,756					$	386,763					$	92,308					$	—					$	363,624					$	342,829					$	215,871					$	116,025					$	3,434
Financial liabilities:
Short-term debt, including accrued interest						$	—					$	—					$	—					$	—					$	—					$	152,560					$	152,560					$	—					$	—					$	152,560
Other liabilities - Derivatives:
FX forward contracts						—						—						—						—						—						317						317						—						317						—
Total financial liabilities						$	—					$	—					$	—					$	—					$	—					$	152,877					$	152,877					$	—					$	317					$	152,560

(1)Excluded from the fair value measurement categories in the table above are investment funds of $7,684 and $7,499 as of September 30, 2025, and December 31, 2024, respectively, which are measured using NAV as a practical expedient. Also excluded from the fair value amounts in the table above are equity securities with a carrying value of $20,618 and $20,618 as of September 30, 2025, and December 31, 2024, respectively, that do not have readily determinable fair values and have carrying amounts determined using the measurement alternative, and an equity method investment of $— and $177 as of September 30, 2025, and December 31, 2024.

Summary of Changes in Level 3 Fair Value Category

The following tables present the changes in the Level 3 fair value category for the periods presented in 2025 and 2024. Ambac classifies financial instruments in Level 3 of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation models for Level 3 financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Thus, the gains and losses presented below include changes in the fair value related to both observable and unobservable inputs.

Level 3 - Financial Assets and Liabilities Accounted for at Fair Value
						Investments						Derivatives						Total
Three Months Ended September 30, 2025:
Balance, beginning of period						$	—					$	—					$	—
Total gains/(losses) realized and unrealized:
Included in earnings						—						—						—
Included in other comprehensive income						—						—						—
Purchases						—						—						—
Settlements						—						—						—
Balance, end of period						$	—					$	—					$	—
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—
Three Months Ended September 30, 2024:
Balance, beginning of period						$	—					$	548					$	548
Total gains/(losses) realized and unrealized:
Included in earnings						—						—						—
Included in other comprehensive income						—						—						—
Purchases						—						—						—
Settlements						—						—						—
Balance, end of period						$	—					$	548					$	548
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—

Level 3 - Financial Assets and Liabilities Accounted for at Fair Value
						Investments						Derivatives						Total
Nine Months Ended September 30, 2025:
Balance, beginning of period						$	—					$	—					$	—
Total gains/(losses) realized and unrealized:
Included in earnings						—						—						—
Included in other comprehensive income						—						—						—
Settlements						—						—						—
Balance, end of period						$	—					$	—					$	—
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—
Nine Months Ended September 30, 2024:
Balance, beginning of period						$	13,920					$	656					$	14,576
Total gains/(losses) realized and unrealized:
Included in earnings						6,016						(108)						5,908
Included in other comprehensive income						125						—						125
Settlements						(20,061)						—						(20,061)
Balance, end of period						$	—					$	548					$	548
The amount of total gains/(losses) included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	6,016					$	(108)					$	5,908
The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date						$	—					$	—					$	—

Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings

Gains and losses (realized and unrealized) relating to Level 3 assets and liabilities included in earnings for the affected periods are reported as follows:

						Three Months Ended September 30, 2025																		Three Months Ended September 30, 2024
						Net Investment Income						Net Gains (Losses) on Derivative Contracts						Other Income or (Expense)						Net Investment Income						Net Gains (Losses) on Derivative Contracts						Other Income or (Expense)
Total gains (losses) included in earnings for the period						$	—					$	—					$	—					$	—					$	—					$	—
Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date						—						—						—						—						—						—
						Nine Months Ended September 30, 2025																		Nine Months Ended September 30, 2024
						Net Investment Income						Net Gains (Losses) on Derivative Contracts						Other Income or  (Expense)						Net Investment Income						Net Gains (Losses) on Derivative Contracts						Other Income or  (Expense)
Total gains or losses included in earnings for the period						$	—					$	—					$	—					$	—					$	(108)					$	6,016
Changes in unrealized gains or losses included in earnings relating to the assets and liabilities still held at the reporting date						—						—						—						—						(108)						—

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