Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Entity Current Reporting Status | Yes | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | AMBC | |
Entity Registrant Name | AMBAC FINANCIAL GROUP INC | |
Entity Central Index Key | 874,501 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 45,336,278 |
Consolidated Balance Sheets
Consolidated Balance Sheets - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Fixed income securities, at fair value (amortized cost of $3,001,432 and $4,614,623) | $ 3,221,301 | $ 4,652,172 |
Fixed income securities pledged as collateral, at fair value (amortized cost of $84,186 and $99,719) | 84,186 | 99,719 |
Short-term investments, at fair value (amortized cost of $562,111 and $557,476) | 562,060 | 557,270 |
Other investments | 411,604 | 431,630 |
Total investments | 4,279,151 | 5,740,791 |
Cash and cash equivalents | 52,505 | 623,703 |
Receivable for securities | 46,376 | 11,177 |
Investment income due and accrued | 10,709 | 16,532 |
Premium receivables | 517,197 | 586,312 |
Reinsurance recoverable on paid and unpaid losses | 25,511 | 40,997 |
Deferred ceded premium | 45,204 | 52,195 |
Subrogation recoverable | 1,898,611 | 631,213 |
Loans | 10,082 | 10,358 |
Derivative assets | 50,262 | 73,199 |
Income Taxes Receivable | 32,509 | 11,803 |
Insurance intangible asset | 755,734 | 846,973 |
Other assets | 22,191 | 46,614 |
Total assets | 15,093,464 | 23,192,374 |
Liabilities: | ||
Unearned premiums | 669,820 | 783,155 |
Loss and loss expense reserves | 1,868,484 | 4,745,015 |
Ceded premiums payable | 34,306 | 37,876 |
Long-term debt | 2,937,771 | 991,696 |
Accrued interest payable | 356,711 | 436,984 |
Derivative Liability | 61,331 | 82,782 |
Other liabilities | 61,533 | 67,583 |
Payable for securities purchased | 31,292 | 1,932 |
Total liabilities | 13,294,655 | 21,547,116 |
Stockholders’ equity: | ||
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized; issued and outstanding shares—none | 0 | 0 |
Common Stock, Value, Issued | 454 | 453 |
Additional paid-in capital | 218,050 | 199,560 |
Accumulated other comprehensive income | 97,825 | (52,239) |
Retained earnings | 1,441,857 | 1,233,845 |
Treasury stock, shares at cost: 0 and 8,202 | (527) | (471) |
Total Ambac Financial Group, Inc. stockholders’ equity | 1,757,659 | 1,381,148 |
Noncontrolling interest | 41,150 | 264,110 |
Total stockholders’ equity | 1,798,809 | 1,645,258 |
Total liabilities and stockholders’ equity | 15,093,464 | 23,192,374 |
Deferred Income Tax Liabilities, Net | 27,537 | 33,659 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Assets: | ||
Fixed income securities, at fair value (amortized cost of $3,001,432 and $4,614,623) | 2,718,377 | 2,914,145 |
Restricted cash | 1,024 | 978 |
Loans | 4,563,091 | 11,529,384 |
Derivative assets | 61,543 | 54,877 |
Other assets | 3,387 | 1,123 |
Liabilities: | ||
Long-term debt | 5,585,860 | 12,160,544 |
Accrued interest payable | 2,817 | 589 |
Derivative Liability | 1,657,173 | 2,205,264 |
Other liabilities | $ 20 | $ 37 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Fixed income securities, amortized cost | $ 3,001,432 | $ 4,614,623 |
Fixed income securities pledged as collateral, at fair value (amortized cost of $84,186 and $99,719) | 84,186 | 99,719 |
Trading Securities, Short-term Investments, Amortized Cost | $ 562,111 | $ 557,476 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 130,000,000 | 130,000,000 |
Common stock, shares outstanding | 45,332,214 | |
Equity investments in pooled funds [Member] | ||
Other Investment Not Readily Marketable, Fair Value | $ 372,774 | $ 396,689 |
Parent Company [Member] | ||
Common stock, shares issued | 45,365,170 | 45,275,982 |
Common stock, shares outstanding | 45,365,170 | 45,275,982 |
Treasury stock, shares | 32,956 | 24,816 |
Consolidated Statements of Tota
Consolidated Statements of Total Comprehensive Income - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
AMPS Exchange Loss Based on Carry Value | $ 81,686 | $ 81,686 | ||
Revenues: | ||||
Net premiums earned | 25,640 | $ 52,989 | 82,359 | $ 143,754 |
Net investment income: | ||||
Securities available-for-sale and short-term | 49,985 | 80,999 | 222,278 | 235,092 |
Other Investment Income | 8,347 | 6,178 | 12,956 | 18,804 |
Total net investment income | 58,332 | 87,177 | 235,234 | 253,896 |
Other-than-temporary impairment losses: | ||||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | (266) | (25,664) | (1,617) | (48,581) |
Portion of other-than-temporary impairment recognized in other comprehensive income | 0 | 12,154 | 38 | 29,366 |
Net other-than-temporary impairments | (266) | (13,510) | (1,579) | (19,215) |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | 30,201 | 6,150 | 82,211 | 5,434 |
Change in fair value of credit derivatives: | ||||
Gain (Loss) on Sale of Derivatives | 99 | 134 | 296 | 1,467 |
Unrealized gains (losses) | 151 | 45 | (609) | 6,388 |
Net change in fair value of credit derivatives | 250 | 179 | (313) | 7,855 |
Net gains (losses) on interest rate derivatives | 17,333 | 3,984 | 52,019 | 36,538 |
Net realized gains (losses) on extinguishment of debt | 0 | 0 | 3,121 | 4,920 |
Other Operating Income (Expense), Net | 694 | 329 | 2,676 | 1,107 |
Income (loss) on variable interest entities | 1,831 | (4,049) | 2,982 | (1,567) |
Total revenues | 134,015 | 133,249 | 458,710 | 432,722 |
Expenses: | ||||
Losses and loss expenses (benefit) | 33,501 | 209,806 | (181,315) | 410,917 |
Insurance intangible amortization | 26,421 | 45,690 | 78,299 | 116,686 |
Operating expenses | 28,368 | 34,074 | 90,865 | 93,502 |
Interest expense | 65,673 | 29,145 | 176,192 | 88,951 |
Total expenses | 153,963 | 318,715 | 164,041 | 710,056 |
Pre-tax income (loss) | (19,948) | (185,466) | 294,669 | (277,334) |
Provision for income taxes | 2,211 | 5,439 | 6,811 | 31,902 |
Net income (loss) | (22,159) | (190,905) | 287,858 | (309,236) |
Net income (loss) attributable to common stockholders | (103,845) | (190,905) | 206,172 | (309,236) |
Other comprehensive income (loss), after tax: | ||||
Net income (loss) | (22,159) | (190,905) | 287,858 | (309,236) |
Unrealized gains (losses) on securities, net of income tax provision (benefit) of $(625), $0, $(1,211) and $0 | 60,807 | (434) | 183,686 | 33,550 |
Gains (losses) on foreign currency translation, net of income tax provision (benefit) of $0, $0, $0 and $0 | (8,873) | 24,624 | (29,806) | 66,509 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 340 | 548 | ||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, after Tax and Reclassification Adjustment, Attributable to Parent | 0 | 0 | ||
Changes to postretirement benefit, net of income tax provision (benefit) of $0, $0, $0 and $0 | (303) | (338) | (1,464) | 1,611 |
Total other comprehensive income (loss), net of income tax | 51,971 | 23,852 | 152,964 | 101,670 |
Total comprehensive income (loss) | 29,812 | (167,053) | 440,822 | (207,566) |
Less: comprehensive (gain) loss attributable to the noncontrolling interest: | ||||
Total comprehensive income (loss) attributable to common stockholders | $ (51,874) | $ (167,053) | $ 359,136 | $ (207,566) |
Earnings Per Share, Basic | $ (2.27) | $ (4.20) | $ 4.52 | $ (6.82) |
Earnings Per Share, Diluted | $ (2.27) | $ (4.20) | $ 4.43 | $ (6.82) |
Consolidated Statements of To_2
Consolidated Statements of Total Comprehensive Income (Parenthetical) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Unrealized (loss) gain on securities, taxes | $ (625) | $ 0 | $ (1,211) | $ 0 |
Gain (loss) on foreign currency translation, taxes | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, Tax | 40 | 0 | 82 | 0 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - Successor [Member] - USD ($) $ in Thousands | Total | Retained Earnings/Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock Held in Treasury, at Cost [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2016 | $ 1,978,024 | $ 1,557,681 | $ (38,990) | $ 0 | $ 452 | $ 195,267 | $ (496) | $ 264,110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income | (207,566) | (309,236) | 101,670 | 0 | 0 | 0 | 0 | 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-09 [Member] | (137) | (137) | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 3,362 | 0 | 0 | 0 | 0 | 3,362 | 0 | 0 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (1,547) | (1,572) | 0 | 0 | 0 | 0 | 25 | 0 |
Stock Issued During Period, Value, New Issues | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 |
Proceeds from warrant exercises | 0 | |||||||
Ending balance at Sep. 30, 2017 | 1,772,137 | 1,246,736 | 62,680 | 0 | 453 | 198,629 | (471) | 264,110 |
Beginning balance at Jun. 30, 2017 | 1,938,213 | 1,437,641 | 38,828 | 0 | 453 | 197,652 | (471) | 264,110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income | (167,053) | (190,905) | 23,852 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 977 | 0 | 0 | 0 | 0 | 977 | 0 | 0 |
Ending balance at Sep. 30, 2017 | 1,772,137 | 1,246,736 | 62,680 | 0 | 453 | 198,629 | (471) | 264,110 |
Beginning balance at Dec. 31, 2017 | 1,645,258 | 1,233,845 | (52,239) | 0 | 453 | 199,560 | (471) | 264,110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income | 440,822 | 287,858 | 152,964 | 0 | 0 | 0 | 0 | 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-01 [Member] | 2,900 | (2,900) | ||||||
Stock-based compensation | 10,475 | 0 | 0 | 0 | 0 | 10,475 | 0 | 0 |
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | (1,116) | (1,060) | 0 | 0 | 0 | 0 | (56) | 0 |
Stock Issued During Period, Value, New Issues | 1 | 0 | 0 | 0 | 1 | 0 | 0 | 0 |
AMPS Impact on Stockholders Equity | (296,634) | (81,686) | 8,012 | (222,960) | ||||
Proceeds from warrant exercises | 3 | 0 | 0 | 0 | 0 | 3 | 0 | 0 |
Payments for Repurchase of Warrants | 8,092 | |||||||
Ending balance at Sep. 30, 2018 | 1,798,809 | 1,441,857 | 97,825 | 0 | 454 | 218,050 | (527) | 41,150 |
Beginning balance at Jun. 30, 2018 | 2,063,921 | 1,545,702 | 45,854 | 0 | 454 | 208,328 | (527) | 264,110 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income | 29,812 | (22,159) | 51,971 | 0 | 0 | 0 | 0 | 0 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-01 [Member] | 0 | |||||||
Stock-based compensation | 1,710 | 0 | 0 | 0 | 0 | 1,710 | 0 | 0 |
AMPS Impact on Stockholders Equity | (296,634) | (81,686) | 8,012 | (222,960) | ||||
Ending balance at Sep. 30, 2018 | $ 1,798,809 | $ 1,441,857 | $ 97,825 | $ 0 | $ 454 | $ 218,050 | $ (527) | $ 41,150 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Successor [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 53,529 | $ 144,811 |
Cash flows from operating activities: | ||
Net income attributable to common shareholders | 206,172 | (309,236) |
AMPS Exchange Loss Based on Carry Value | 81,686 | |
Net income (loss) | 287,858 | (309,236) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 531 | 766 |
Amortization of bond premium and discount | (120,418) | (133,901) |
Share-based compensation | 10,475 | 3,362 |
Deferred income taxes | (6,121) | 210 |
Current income taxes | (20,977) | 4,441 |
Unearned premiums, net | (107,114) | (137,127) |
Losses and loss expenses, net | (1,559,039) | 282,317 |
Ceded premiums payable | (3,570) | (3,936) |
Investment income due and accrued | 5,863 | 5,874 |
Premium receivables | 69,827 | 62,205 |
Accrued interest payable | (22,935) | 47,694 |
Amortization of insurance intangible assets | 78,299 | 116,686 |
Net mark-to-market (gains) losses | 609 | (6,388) |
Net realized investment gains | (82,211) | (5,434) |
Other than Temporary Impairment Losses, Investments, Portion in Other Comprehensive Loss, Net of Tax, Portion Attributable to Parent, Available-for-sale Securities | 1,579 | 19,215 |
(Gain) loss on extinguishment of debt | (3,121) | (4,920) |
Variable interest entity activities | (2,982) | 1,567 |
Increase (Decrease) in Derivative Assets and Liabilities | (38) | (211,659) |
Other, net | 55,542 | 22,846 |
Net cash used in operating activities | (1,417,943) | (245,418) |
Cash flows from investing activities: | ||
Proceeds from sales of bonds | 1,091,516 | 1,523,182 |
Proceeds from matured bonds | 292,395 | 669,979 |
Purchases of bonds | (348,682) | (1,560,024) |
Proceeds from sales of other invested assets | 111,524 | 312,699 |
Purchases of other invested assets | (93,800) | (274,445) |
Change in short-term investments | (4,548) | (285,775) |
Loans, net | 0 | (6,230) |
Change in cash collateral receivable | 10,953 | 103,255 |
Proceeds From Financial Guaranty Variable Interest Entity Assets | 187,260 | 177,229 |
Other, net | 2,742 | (8,524) |
Net cash provided by investing activities | 1,249,360 | 651,346 |
Cash flows from financing activities: | ||
Proceeds From Issuance of Tier II Notes | 240,000 | 0 |
Proceeds from Sale of Senior Surplus Notes | 17,714 | 0 |
Paydown of Ambac Note | (185,738) | 0 |
Paydowns of a secured borrowing | (73,993) | (24,666) |
Proceeds from warrant exercises | 3 | 0 |
Payments for Repurchase of Warrants | 8,092 | |
Paydown of Financial Guaranty Variable Interest Entity Liabilities | (187,260) | (177,622) |
Payments for investment agreement draws | 0 | (82,358) |
Payments for extinguishment of surplus notes | (191,258) | (69,499) |
Payments of Debt Issuance Costs | (9,221) | 0 |
AMPS Exchange Cash Paid | 11,048 | |
Payments Related to Tax Withholding for Share-based Compensation | (1,116) | (1,268) |
Net cash used in financing activities | (401,917) | (355,413) |
Effect of Exchange Rate on Cash and Cash Equivalents | (652) | (1,602) |
Net cash flow | (571,152) | 48,913 |
Cash, cash equivalents, and restricted cash at end of period | $ 52,505 | $ 107,018 |
Background and Business Descrip
Background and Business Description | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Background and Business Description | 1. BACKGROUND AND BUSINESS DESCRIPTION Ambac Financial Group, Inc. (“Ambac” or the “Company”), headquartered in New York City, is a financial services holding company incorporated in the state of Delaware on April 29, 1991 . Ambac provides financial guarantee insurance policies through its principal operating subsidiary, Ambac Assurance Corporation (“Ambac Assurance" or "AAC") and its wholly owned subsidiary, Ambac Assurance UK Limited (“Ambac UK”). Insurance policies issued by Ambac Assurance and Ambac UK generally guarantee payment when due of the principal and interest on the obligations guaranteed. The deterioration of Ambac Assurance’s financial condition resulting from losses in its insured portfolio since 2007 has prevented Ambac Assurance and Ambac UK from being able to write new business. The inability to write new business has and will continue to negatively impact Ambac’s future operations and financial results. Ambac Assurance’s ability to pay dividends and, as a result, Ambac’s liquidity, have been significantly restricted by the deterioration of Ambac Assurance’s financial condition and by the terms of the Settlement Agreement, dated as of June 7, 2010, as amended (the "Settlement Agreement"), by and among Ambac Assurance, Ambac Credit Products LLC (“ACP”), Ambac and certain counterparties to credit default swaps with ACP that were guaranteed by Ambac Assurance. Ambac Assurance is also restricted in its ability to pay dividends pursuant to regulatory restrictions, the Stipulation and Order (as described in Note 1. Background and Business Description in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 ) and the terms of its Auction Market Preferred Shares ("AMPS"). It is highly unlikely that Ambac Assurance will be able to make dividend payments to Ambac for the foreseeable future. Ambac also provides other financial products through subsidiaries of Ambac Assurance. These products include interest rate swaps, funding conduits, and investment agreements (until the first quarter of 2017) that were provided principally to clients that were also provided financial guarantee policies. These financial products have been in active run-off since 2007. There are substantial restrictions on the ability to transfer Ambac’s common stock set forth in Article XII of Ambac’s Amended and Restated Certificate of Incorporation. In order to preserve certain tax benefits, subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), either (i) any person or group of persons shall become a holder of 5% or more of the Company’s common stock or (ii) the percentage stock ownership interest in Ambac of any holder of 5% or more of the Company’s common stock shall be increased (a “Prohibited Transfer”). These restrictions shall not apply to an attempted transfer if the transferor or the transferee obtains the written approval of Ambac’s Board of Directors to such transfer. A purported transferee of a Prohibited Transfer shall not be recognized as a stockholder of Ambac for any purpose whatsoever in respect of the securities which are the subject of the Prohibited Transfer (the “Excess Securities”). Until the Excess Securities are acquired by another person in a transfer that is not a Prohibited Transfer, the purported transferee of a Prohibited Transfer shall not be entitled with respect to such Excess Securities to any rights of stockholders of Ambac, including, without limitation, the right to vote such Excess Securities and to receive dividends or distributions, whether liquidating or otherwise, in respect thereof, if any. Once the Excess Securities have been acquired in a transfer that is not a Prohibited Transfer, the securities shall cease to be Excess Securities. If the Board determines that a transfer of securities constitutes a Prohibited Transfer then, upon written demand by Ambac, the purported transferee shall transfer or cause to be transferred any certificate or other evidence of ownership of the Excess Securities within the purported transferee’s possession or control, together with any distributions paid by Ambac with respect to such Excess Securities, to an agent designated by Ambac. Such agent shall thereafter sell such Excess Securities and the proceeds of such sale shall be distributed as set forth in the Amended and Restated Certificate of Incorporation. If the purported transferee of a Prohibited Transfer has resold the Excess Securities before receiving such demand, such person shall be deemed to have sold the Excess Securities for Ambac’s agent and shall be required to transfer to such agent the proceeds of such sale, which shall be distributed as set forth in the Amended and Restated Certificate of Incorporation. On October 11, 2018, Ambac received a Private Letter Ruling (“PLR”) from the U.S. Internal Revenue Service (“IRS”) with regard to certain aspects of Section 382 of the Internal Revenue Code of 1986, as amended. Section 382 generally limits the use of a corporation’s net operating loss carryforwards when an ownership change occurs. An ownership change results if there is a cumulative increase of more than 50 percentage points in the amount of stock held by one or more “5% shareholders” of the corporation during a three-year testing period. A group of persons who have a formal or informal understanding to make a coordinated acquisition of stock is treated as a single entity for these purposes. The PLR addresses the ownership of Ambac’s common stock by three separate groups of funds and accounts managed by three separate investment advisors. In the PLR the IRS ruled that, based on certain facts and representations, for purposes of Section 382 each investment advisor will not be treated as the owner of the shares which it holds on behalf of the funds and accounts it advises, and each group of funds and accounts will not be treated as a single entity. The conclusions in the PLR are based on the particular facts and circumstances set forth in Ambac’s request for the PLR, including those set forth in representations provided in writing by the investment advisors to Ambac, such as the current and expected future investment strategies of the funds and accounts managed by these investment advisors, the current and expected manner in which the funds and accounts, and the investment decisions regarding Ambac’s common stock, are managed by these investor advisors, and the current and expected tax classification of the funds managed by these investment advisors. The PLR does not address the application of Section 382 to any Ambac shareholder other than those specifically addressed in the PLR. Ambac reserves all rights under its Charter regarding transfers and voting of its stock and other securities, including those unrelated to Section 382. Furthermore, receipt of the PLR does not affect any voting or ownership restrictions that may apply to holders of Ambac’s common stock pursuant to applicable law. As a result of the PLR, neither the investment advisors specifically addressed therein nor the funds and accounts they advise will be treated by Ambac as 5% shareholders for purposes of Article XII of the Charter unless any representation provided to Ambac by an investment advisor ceases to be true, including that no individual fund or account owns 5% or more of Ambac’s common stock . In February 2018, Ambac achieved one of its key strategic priorities, the exit from rehabilitation of the Segregated Account (as defined below). Having accomplished this milestone, Ambac continues to pursue and prioritize its remaining key strategic priorities, namely: • Active runoff of Ambac Assurance and its subsidiaries through transaction terminations, policy commutations, reinsurance, settlements and restructurings, with a focus on our watch list credits and known and potential future adversely classified credits, that we believe will improve our risk profile, and maximizing the risk-adjusted return on invested assets; • Ongoing rationalization of Ambac's and its subsidiaries' capital and liability structures; • Loss recovery through active litigation management and exercise of contractual and legal rights; • Ongoing review of organizational effectiveness and efficiency of the operating platform; and • Evaluation of opportunities in certain business sectors that meet acceptable criteria that will generate long-term stockholder value with attractive risk-adjusted returns. With respect to our new business strategy, we have identified certain business sectors, adjacent to Ambac's core business, in which future opportunities will be evaluated. The evaluation will be conducted through a measured and disciplined approach to identify opportunities that are synergistic to Ambac, match Ambac's core competencies, are rapidly scalable or available through mergers and acquisitions and that may allow for the utilization of Ambac's net operating loss carry-forwards. Although we are exploring new business opportunities, no assurance can be given that we will be able to execute or obtain the financial and other resources that may be required to finance the acquisition or development of any new businesses or assets. The execution of Ambac’s objective to increase the value of its investment in Ambac Assurance is subject to the rights of OCI (as defined below) under the Stipulation and Order, which requires OCI to approve certain actions taken by or in respect of Ambac Assurance, as well as the restrictions in the Settlement Agreement. Opportunities for remediating losses on poorly performing insured transactions also depend on market conditions, including the perception of Ambac Assurance’s and its subsidiaries' creditworthiness, the structure of the underlying risk and associated policy as well as other counterparty specific factors. Decisions by OCI could impair Ambac’s ability to execute certain of its strategies. Ambac Assurance's ability to commute policies or purchase certain investments may also be limited by available liquidity. Due to these factors, as well as uncertainties relating to the ability of Ambac Assurance to deliver value to Ambac, the value of our securities remains speculative. Management reviews financial information, allocates resources and measures financial performance on a consolidated basis. As a result, the Company has a single reportable segment. The Segregated Account In March 2010, Ambac Assurance established a Segregated Account pursuant to Wisc. Stat. §611.24 (2) (the “Segregated Account”) to segregate certain segments of Ambac Assurance’s liabilities, and the Office of the Commissioner of Insurance for the State of Wisconsin (“OCI” (which term shall be understood to refer to such office as regulator of Ambac Assurance and to refer to the Commissioner of Insurance for the State of Wisconsin as rehabilitator of the Segregated Account (the “Rehabilitator”), as the context requires)) commenced rehabilitation proceedings in the Dane County, Wisconsin Circuit Court (the “Rehabilitation Court”) with respect to the Segregated Account (the “Segregated Account Rehabilitation Proceedings”) in order to permit OCI to facilitate an orderly run-off and/or settlement of the liabilities allocated to the Segregated Account pursuant to the provisions of the Wisconsin Insurers Rehabilitation and Liquidation Act. On October 8, 2010, OCI filed a plan of rehabilitation for the Segregated Account (the “Segregated Account Rehabilitation Plan”) in the Rehabilitation Court, which was confirmed by the Rehabilitation Court on January 24, 2011. On June 11, 2014, the Rehabilitation Court approved amendments to the Segregated Account Rehabilitation Plan and the Segregated Account Rehabilitation Plan, as amended, became effective on June 12, 2014. Policy obligations not allocated to the Segregated Account remained in the General Account of Ambac Assurance, and such policies in the General Account were not subject to and, therefore, were not directly impacted by the Segregated Account Rehabilitation Plan. On February 12, 2018, Ambac successfully concluded the rehabilitation of the Segregated Account pursuant to an amendment of the Segregated Account Rehabilitation Plan (the "Second Amended Plan of Rehabilitation"). The conclusion of the rehabilitation followed the successful completion of Ambac's surplus note exchange offers and consent solicitation, which, together with the satisfaction of all conditions precedent to the effectiveness of the Second Amended Plan of Rehabilitation, including the discharge of all unpaid policy claims of the Segregated Account, including accretion amounts thereon ("Deferred Amounts"), completed the restructuring transactions (the "Rehabilitation Exit Transactions") announced on July 19, 2017, as more fully described in Note 1. Background and Business Description in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . In exchange for an effective consideration package of 40% cash, 41% Secured Notes (as defined below) and 12.5% General Account Surplus Notes (as defined below), paid in respect of outstanding Deferred Amounts and General Account Surplus Notes. Ambac Assurance received the following benefits as a result of the completion of the Rehabilitation Exit Transactions: • Satisfaction and discharge of all outstanding Deferred Amounts (including accretion) of the Segregated Account, totaling $3,856,992 ; • Cancellation of $552,320 in principal amount outstanding, plus accrued and unpaid interest of $257,200 thereon, of AAC's 5.1% surplus notes due 2020 (the "General Account Surplus Notes"); and • An effective discount of 6.5% on Deferred Amounts (applied first against accretion) and the outstanding amount of principal and accrued and unpaid interest on tendered General Account Surplus Notes. Ambac received $0.91 in principal amount of Secured Notes for each $1.00 of Deferred Amounts that it held, and provided a $0.09 discount in full satisfaction and discharge of its Deferred Amount claims. Ambac did not participate in the voluntary surplus note exchange offers. A newly formed special purpose entity Ambac LSNI, LLC ("Ambac LSNI") issued $2,154,332 of new secured notes (the “Secured Notes”), secured by all assets of the special purpose entity, which include a note issued by Ambac Assurance to the special purpose entity (the "Ambac Note"), which is secured by a pledge of Ambac Assurance’s right, title and interest in up to the first $1,400,000 of proceeds (net of reinsurance) from certain litigations in which Ambac Assurance seeks redress for breaches of representations and warranties and/or fraud related to residential mortgage-backed securitizations (the “RMBS Litigations”). In addition, the Ambac Note is secured by cash and securities having a market value of $221,676 as of September 30, 2018 . Ambac Assurance also pledged for the benefit of the holders of Secured Notes (other than Ambac Assurance) the proceeds of the Secured Notes held by Ambac Assurance from time to time, and issued a financial guaranty insurance policy to a trustee for the benefit of holders of Secured Notes irrevocably guarantying all principal and interest payments in respect of the Secured Notes as and when such payments become due and owing. Prior to the Rehabilitation Exit Transactions, Ambac and Ambac Assurance owned securities that were insured by Ambac Assurance and allocated to the Segregated Account. As a result of the Rehabilitation Exit Transactions, Ambac and Ambac Assurance received $124,881 and $643,583 , respectively, of par amount of Secured Notes issued by Ambac LSNI. Such secured notes are reported in Investments in the Consolidated Balance Sheets at their fair value. Ambac Assurance also received $240,000 in cash proceeds from the issuance of notes secured by recoveries from RMBS Litigations in excess of $1,600,000 ("Tier 2 Notes"). Receipt of Requisite Consents for Bank Settlement Agreement Waiver and Amendment Ambac received sufficient consents from holders of General Account Surplus Notes for a waiver and amendment (the "BSA Waiver and Amendment") of the Settlement Agreement. Among other provisions, the BSA Waiver and Amendment includes amendments to the Settlement Agreement that (i) eliminate the requirement for Ambac Assurance to have "unaffiliated qualified directors" on its Board of Directors; (ii) eliminate the prohibition on new business activities; (iii) modify the restrictions on the incurrence of indebtedness and other material obligations; (iv) modify the restrictions on liens securing permitted indebtedness; (v) modify restrictions applicable to junior surplus notes; and (vi) modify restrictions on mergers or similar transactions. Regulatory Approval of the Rehabilitation Exit Transactions, including a partial interest payment on Surplus Notes OCI provided all approvals necessary to consummate the Rehabilitation Exit Transactions, to give effect to the BSA Waiver and Amendment, and to make a $13,501 pro-rata interest payment, representing approximately six months of interest, on the outstanding principal and accrued and unpaid interest of surplus notes that remained outstanding (of which $2,618 was received by Ambac for surplus notes that it owned that were considered extinguished for accounting purposes) after the closing of the Rehabilitation Exit Transactions on February 12, 2018. For more information about the Segregated Account rehabilitation and the Rehabilitation Exit Transactions and related matters, please refer to Note 1. Background and Business Description in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Final Decree and Order On June 22, 2018, the Rehabilitation Court entered the Final Decree and Order discharging the Rehabilitator and the Special Deputy Commissioner for the Segregated Account and formally closing the case that was commenced by OCI in the Rehabilitation Court in 2010. August 2018 AMPS Exchange At June 30, 2018, Ambac Assurance had 26,411 shares of issued and outstanding AMPS with a liquidation preference of $660,275 (reported as noncontrolling interest of $264,110 on Ambac's balance sheet). On July 3, 2018, Ambac and Ambac Assurance commenced an offer to exchange (the “AMPS Exchange”) all of Ambac Assurance’s outstanding AMPS for surplus notes and, from Ambac, cash and warrants to purchase Ambac's common stock. Concurrently with the AMPS Exchange, Ambac Assurance solicited proxies (each a “Proxy” and together the “Proxies”) from the holders of the AMPS to vote in favor of a resolution to be passed at a special meeting (“Special Meeting”) of Ambac Assurance’s shareholders (the “Proxy Solicitation”). The surplus notes offered in the AMPS Exchange have the same terms as other outstanding surplus notes of Ambac Assurance (other than junior surplus notes). The offering period for the AMPS Exchange expired on August 1, 2018 and the transaction closed on August 3, 2018 (the "Settlement Date"). In exchange for each $25 of liquidation preference (i.e., per share), AMPS, holders received from Ambac Assurance, surplus notes with a total outstanding amount (including accrued and unpaid interest thereon through on June 22, 2018 (the "Signing Date")) equal to $13.875 (the “Repurchase”). AMPS holders who tendered on or before July 17, 2018, representing 22,096 of the AMPS, also received from Ambac $0.500 in cash and 37.3076 warrants (rounded down to the nearest whole warrant) to purchase an equivalent number of shares of common stock of Ambac at an exercise price of $16.67 per share (the “AFG Purchase” and, together with the Repurchase, the “Purchases”). As a result of the completion of the Purchases, Ambac: 1. Repurchased 84.4% or 22,296 AMPS with an aggregate liquidation preference of $557,400 , including $34,650 in aggregate liquidation preference in the AFG Purchase; 2. Captured a nominal discount of approximately $227,000 (a discount of approximately $253,000 on a fair market value basis) on $557,400 of the total outstanding liquidation preference of AMPS; and 3. Issued, in aggregate, $212,740 in current principal amount of surplus notes with accrued interest thereon on Settlement Date of $98,366 , issued 824,307 warrants and paid $11,048 in cash. Prior to the Purchases, the AMPS were reported on the balance sheet within non-controlling interests and were carried at their fair value at the date Ambac emerged from bankruptcy, which is lower than the fair value of the total consideration provided to the AMPS holders in the Purchases. The difference between the fair value of consideration provided to AMPS holders and the carrying amount of the AMPS has been reflected as a reduction to Net income attributable to common stockholders in the third quarter of 2018 for approximately $81,686 . Concurrently with the offering of the AMPS Exchange, Ambac Assurance launched the Proxy Solicitation to approve (i) for the holders of AMPS only, the Purchases and (ii) an amendment to Ambac Assurance’s Restated Articles of Incorporation to delete Section 7(c) of the Fifth Article, which provided for the purported right of holders of AMPS to elect Ambac Assurance directors in certain circumstances (the “Charter Amendment” and together with the Purchases, the “Transactions”). The affirmative vote of the holders of at least two-thirds in aggregate liquidation preference of AMPS was required for the Purchases and the Charter Amendment to be operative. Additionally, the affirmative vote of at least two-thirds of the outstanding shares of Ambac Assurance common stock entitled to vote at the Special Meeting was required for the Charter Amendment to be operative. The Special Meeting was held on July 18, 2018, at which the Transactions were duly approved. The Charter Amendment became effective on the Settlement Date. Certain holders of AMPS agreed to support the Transactions and signed and became parties to a Preferred Stock Repurchase and Support Agreement, dated as of June 22, 2018 (the “Preferred Stock Repurchase and Support Agreement”), by and among certain holders of AMPS party thereto (each, a “Supporting Holder” and together, the “Supporting Holders”), Ambac and Ambac Assurance. The Supporting Holders, who represented approximately 89% in liquidation preference of outstanding AMPS as of the Signing Date, agreed under the Preferred Stock Repurchase and Support Agreement to vote in favor of the Transactions and also committed to tender at least 80% |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The Company has disclosed its significant accounting policies in Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The following significant accounting policies provide an update to those included in the Company’s Annual Report on Form 10-K. Consolidation: The consolidated financial statements include the accounts of Ambac and all other entities in which Ambac (directly or through its subsidiaries) has a controlling financial interest, including variable interest entities (“VIEs”) for which Ambac or an Ambac subsidiary is deemed the primary beneficiary in accordance with the Consolidation Topic of the Accounting Standards Codification ("ASC"). All significant intercompany balances have been eliminated. The usual condition for a controlling financial interest is ownership of a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. A VIE is an entity: a) that lacks enough equity investment at risk to permit the entity to finance its activities without additional subordinated financial support from other parties; or b) where the group of equity holders does not have: (1) the power, through voting rights or similar rights, to direct the activities of an entity that most significantly impact the entity’s economic performance; (2) the obligation to absorb the entity’s expected losses; or (3) the right to receive the entity’s expected residual returns. The determination of whether a variable interest holder is the primary beneficiary involves performing a qualitative analysis of the VIE that includes, among other factors, its capital structure, contractual terms including the rights of each variable interest holder, the activities of the VIE, whether the variable interest holder has the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance, whether the variable interest holder has the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE, related party relationships and the design of the VIE. An entity that is deemed the primary beneficiary of a VIE is required to consolidate the VIE. Refer to Note 3. Variable Interest Entities , for a detailed discussion of Ambac’s involvement in VIEs, Ambac’s methodology for determining whether Ambac is required to consolidate a VIE and the effects of VIEs being consolidated and deconsolidated. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2017 . The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated financial position and results of operations. The results of operations for the three and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the year ending December 31, 2018 . The December 31, 2017 consolidated balance sheet was derived from audited financial statements. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As additional information becomes available or actual amounts become determinable, the recorded estimates are revised and reflected in operating results. Certain amounts in the condensed consolidated financial statements and associated notes may not add due to rounding. Foreign Currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the ASC. The functional currencies of Ambac's subsidiaries are the local currencies of the country where the respective subsidiaries are based, which are also the primary operating environments in which the subsidiaries operate. Foreign currency translation : Functional currency assets and liabilities of Ambac’s foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at the balance sheet dates and the related translation adjustments, net of deferred taxes, are included as a component of Accumulated Other Comprehensive Income in Stockholders' Equity. Functional currency operating results of foreign subsidiaries are translated using average exchange rates. Foreign currency transactions : The impact of non-functional currency transactions and the remeasurement of non-functional currency assets and liabilities into the respective subsidiaries' functional currency (collectively "foreign currency transactions gains/(losses)") are $(5,211) and $19,142 for the nine months ended September 30, 2018 and 2017 , of which $(9,549) and $26,556 relate to the remeasurement of loss reserves, classified in Loss and loss expenses, respectively. Foreign currency transactions gains/(losses) are primarily the result of remeasuring Ambac UK's assets and liabilities denominated in currencies other than its functional currency, primarily the U.S. dollar and the Euro. Supplemental Disclosure of Cash Flow Information Nine Months Ended September 30, 2018 2017 Cash paid during the period for: Income taxes $ 31,408 $ 29,556 Interest on long-term debt and investment agreements 195,333 38,325 Non-cash financing activities: Increase in long-term debt in exchange for auction market preferred shares $ 187,220 $ — Decrease in long-term debt as a result of an exchange for investment securities — 55,426 Rehabilitation exit transaction discharge of all Deferred Amounts and cancellation of certain General Account Surplus Notes 1,918,561 — Reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows: Cash and cash equivalents $ 52,505 $ 107,018 Restricted cash 1,024 37,793 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows $ 53,529 $ 144,811 In addition to the non-cash financing activities disclosed in the above table, the Rehabilitation Exit Transactions involved the exchange of cash and non-cash consideration for the discharge of all Deferred Amounts and cancellation of certain General Account Surplus Notes. Refer to Note 1. Background and Business Description of this Form 10-Q and Note 1. Background and Business Description in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for further details of the Rehabilitation Exit Transactions. Reclassifications: Reclassifications have been made to prior years' amounts to conform to the current year's presentation. Such reclassifications are primarily the result of certain new standards discussed in the Recently Adopted Accounting Standards section below. Recently Adopted Accounting Standards: Effective January 1, 2018, Ambac adopted the following accounting standards: Stock Compensation--Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting . The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU. The adoption of this ASU did not have an impact on Ambac's financial statements. Net Periodic Pension and Postretirement Costs In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The objective of the ASU is to increase transparency in the reporting of net pension cost and net postretirement cost (collectively "net benefit cost"). The ASU requires that the service cost component of net benefit cost be reported on the same line item as other compensation costs arising from services rendered by employees. It further requires that the other components of net benefit costs (i.e. interest costs, amortization of prior service cost, etc.) be presented separately from the service cost component and outside the subtotal of income from operations, if one is presented. Prior to adoption of this ASU, Ambac reported all postretirement costs in Operating expenses on the Consolidated Statements of Total Comprehensive Income (Loss). Adoption of this ASU resulted in a reclassification of other non-service related amounts from Operating expenses to Other income (expense) resulting in an increase to both Operating expenses and Other income (expense) of $283 and $680 for the three and nine months ended September 30, 2017 . Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . Prior to the effective date of this ASU, GAAP did not include specific guidance on the cash flow classification and presentation of changes in restricted cash and restricted cash flow equivalents other than limited guidance for non-for-profit entities. This ASU is intended to resolve diversity in practice in the classification of changes in restricted cash and restricted cash flow equivalents on the statement of cash flows. The ASU requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending period amounts on the statement of cash flows, along with certain disclosures. Adoption of this ASU resulted in the inclusion of restricted cash activity related to consolidated VIEs on the Consolidated Statements of Cash Flows for all periods presented. Also refer to the Supplemental Disclosure of Cash Flow Information section above for the reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Statement of Position that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory . Prior to the effective date of this ASU, GAAP prohibited the recognition of current and deferred income taxes for intercompany transfers of assets until the asset had been sold to an outside party. The ASU requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory, as income tax expense (or benefit) in the period in which the transfer occurs. The adoption of this ASU did not have an impact on Ambac's financial statements. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The ASU resolves diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Transactions addressed in the ASU that are potentially relevant to Ambac include the following: • Debt prepayment or debt extinguishment costs - such payments will be classified as a financing cash outflow. • Settlement of zero-coupon debt or other debt with coupon rates that are insignificant in relation to the effective interest rate of the borrowing - the portion of the cash payment attributable to accreted interest will be classified as an operating cash outflow and the portion attributable to the principal will be classified as a financing cash outflow. • Distributions from equity-method investees - an entity will elect one of the two following approaches. Under the "cumulative earnings approach": i) distributions received up to the amount of cumulative earnings recognized will be treated as returns on investments and classified as cash inflows from operating activities and ii) distributions received in excess of earnings recognized will be treated as returns of investments and classified as cash inflows from investing activities. Under the "nature of the distribution" approach, distributions received will be classified based on the nature of the activity that generated the distribution (i.e. classified as a return on investment or return of investment), when such information is available to the investor. • Beneficial interests in securitization transactions - any beneficial interests obtained in financial assets transferred to an unconsolidated securitization entity will be disclosed as a non-cash investing activity. Subsequent cash receipts from the beneficial interests in previously transferred tra de receivables will be classified as cash inflows from investing activities. After further evaluating the potentially relevant items, we determined the adoption of this ASU did not have an impact on Ambac's financial statements. Recognition and Measurement of Financial Assets and Liabilities In January 2016, the FASB issued ASC 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU makes the following targeted changes for financial assets and liabilities: i) requires equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income; ii) simplifies the impairment assessment of equity securities without readily determinable fair values using a qualitative approach; iii) eliminates disclosure of the method and significant assumptions used to fair value instruments measured at amortized cost on the balance sheet; iv) requires the use of the exit price notion when measuring the fair value of instruments for disclosure purposes; v) for financial liabilities where the fair value option has been elected, requires the portion of the fair value change related to instrument-specific credit risk, to be separately reported in other comprehensive income; vi) requires the separate presentation of financial assets and liabilities by measurement category and form of financial asset (liability) on the balance sheet or accompanying notes; and vii) clarifies that the evaluation of a valuation allowance on a deferred tax asset related to available-for-sale securities should be performed in combination with the entity's other deferred tax assets. With respect to item v) above, Ambac has elected the fair value option for all VIE financial liabilities. For these VIE liabilities this ASU has resulted in a cumulative-effect reclassification of $2,900 , net of deferred tax of $590 , between Retained earnings and Accumulated other comprehensive income, with no net change to Total stockholders' equity as of January 1, 2018. For the nine months ended September 30, 2018 and going forward, the instrument-specific credit risk of fair value changes in VIE liabilities has been and will be reported in Accumulated other comprehensive income in accordance with this ASU, with all other fair value changes continuing to be reported through net income. There was no material impact on Ambac's financial statements for the other provisions of this ASU. Revenue recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that amends the accounting guidance for recognizing revenue for contracts with customers to transfer goods and contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. As this ASU does not apply to insurance contracts and most financial instruments, management determined there was no impact on Ambac's financial statements. Future Application of Accounting Standards: Cloud Computing Arrangement Service Contracts In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new guidance requires a customer in a cloud computing arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance requires the capitalization of certain costs incurred only during the application development stage (e.g., costs of integration with on-premises software, coding, configuration, customization). That guidance also requires entities to expense costs during the preliminary project and post-implementation stages (e.g., costs of project planning, training, maintenance after implementation, data conversion) as they are incurred. ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The ASU may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Ambac will adopt this ASU on January 1, 2020. The ASU is not expected to have a consequential impact on Ambac's financial statements. Defined Benefit and Other Postretirement Plans Disclosures In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The ASU modifies various disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Relevant disclosures that will be removed are: i) amounts in accumulated other comprehensive income expected to be recognized as net periodic benefit cost over the next fiscal year, and ii) the effects of a one percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of the net periodic pension cost and (b) benefit obligation for postretirement healthcare benefits. Relevant disclosures that will be added are an explanation of the reasons for significant gains and losses related to changes in the benefit obligations for the period. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The modified disclosures must be applied on a retrospective basis for all periods presented. Ambac has not determined whether it will early adopt this ASU. The ASU is not expected to have a consequential impact on Ambac's financial statements. Fair Value Measurement Disclosures In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The ASU modifies various disclosure requirements on fair value measurements. Relevant disclosures that will be removed, modified and added are as follows: • Removals : 1) Amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) Policy for timing of transfers between levels, and 3) Valuation processes for Level 3 fair value measurements. • Modifications : 1) For investments in certain entities that calculate net asset value, disclosures are only required for the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the reporting entity or publicly announced it, and 2) Clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and not possible future changes. • Additions : 1) Changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period and 2) Range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Alternatively, an entity may disclose other quantitative information (such as the median or arithmetic average) if it determines that it is a more reasonable and rational method to reflect the distribution of unobservable inputs used. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Disclosure amendments related to changes in unrealized gains and losses included in OCI for level 3 instruments, the range and weighted average of significant unobservable inputs, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented. All other disclosure amendments should be applied retrospectively to all periods presented. Ambac has not determined whether it will early adopt this ASU. The ASU is not expected to have a consequential impact on Ambac's financial statements. Equity-linked Instruments with Down Round Features In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815) - Accounting for Certain Financial Instruments with Down Round Features . Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under the ASU, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share ("EPS") reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common stockholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. Ambac will adopt this ASU on January 1, 2019 and it is not expected to have a consequential impact on Ambac's financial statements. Premium Amortization on Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for the premium on callable debt securities to the earliest call date. Under current GAAP, a reporting entity generally amortizes the premium as a yield adjustment over the contractual life (i.e. maturity) of the debt security and if that debt security is called, the entity would record a loss equal to the unamortized premium. The ASU does not change the accounting for callable debt securities held at a discount, which will continue to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Ambac will adopt this ASU on January 1, 2019 and it is not expected to have a consequential impact on Ambac's financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . This ASU significantly affects how reporting entities will measure credit losses for financial assets that are not accounted for at fair value through net income, which include loans, debt securities, trade receivables, net investments in leases, and certain off-balance sheet credit exposures. For financial assets measured at amortized cost, the ASU replaces the "incurred loss" model, which generally delayed recognition of the full amount of credit losses until the loss was probable of occurring, with an "expected loss" model, which reflects an entity's current estimate of all expected credit losses. Expected credit losses for amortized cost assets will be recorded as a valuation allowance, with subsequent increases or decreases in the allowance reflected in the income statement each period. For available-for-sale debt securities, credit losses under the ASU will be measured similarly to current GAAP. However, under the ASU, credit losses for available-for-sale securities will be recorded as a valuation allowance (similar to the amortized cost assets approach described above), rather than as a direct write-down of the security as is required under current GAAP. As a result, improvements to estimated credit losses for available-for-sale debt securities will be recognized immediately in the income statement rather than as interest income over time. The ASU is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Ambac will adopt this ASU on January 1, 2020 and we are currently evaluating its impact on Ambac's financial statements. The significant implementation matters to be addressed include identifying the inventory of financial assets that will be affected by this standard, identifying new data requirements and data sources for implementing the expected loss model for those instruments not already using this model and identifying and documenting accounting process changes, including related controls. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Special Purpose Entities, Inclu
Special Purpose Entities, Including Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Special Purpose Entities, Including Variable Interest Entities | 3. VARIABLE INTEREST ENTITIES A mbac, with its subsidiaries, has engaged in transactions with variable interest entities ("VIEs,") in various capacities. • Ambac most commonly provides financial guarantees, including credit derivative contracts, for various debt obligations issued by special purpose entities, including VIEs ("FG VIEs"); • Ambac sponsors special purpose entities that issued notes to investors for various purposes; • Ambac monetized its ownership of the junior surplus note issued to it by the Segregated Account by depositing the junior surplus note into a newly formed VIE trust in exchange for cash and an owner trust certificate, which represents Ambac's right to residual cash flows from the junior surplus note; and • Ambac is an investor in collateralized loan obligations, mortgage-backed and other asset-backed securities issued by VIEs and its ownership interest is generally insignificant to the VIE and/or Ambac does not have rights that direct the activities that are most significant to such VIE. FG VIEs: Ambac’s subsidiaries provide financial guarantees in respect of assets held or debt obligations of VIEs. Ambac’s primary variable interest exists through this financial guarantee insurance or credit derivative contract. The transaction structures provide certain financial protection to Ambac. Generally, upon deterioration in the performance of a transaction or upon an event of default as specified in the transaction legal documents, Ambac will obtain certain control rights that enable Ambac to remediate losses. These rights may enable Ambac to direct the activities of the entity that most significantly impact the entity’s economic performance. • We determined that Ambac’s subsidiaries generally have the obligation to absorb a FG VIE's expected losses given that they have issued financial guarantees supporting certain liabilities (and in some cases certain assets). As further described below, Ambac consolidated certain FG VIEs because we also had the power to direct the activities that most significantly impact the VIE’s economic performance due to either: (i) the transaction experiencing deterioration and breaching performance triggers, giving Ambac the ability to exercise certain control rights or (ii) the transaction not experiencing deterioration, however due to the passive nature of the VIE, Ambac's contingent control rights upon a future breach of performance triggers is considered to be the power over the most significant activity. FG VIEs which are consolidated include recourse liabilities and, in some cases, may include non-recourse liabilities. FG VIEs' liabilities that are insured by the Company are with recourse, because the Company guarantees the payment of principal and interest to the extent there is a shortfall in the FG VIEs' assets. FG VIEs' liabilities that are not insured by the Company are without recourse, because the payment of principal and interest of these liabilities is wholly dependent on the performance of the FG VIEs' assets. The Company’s exposure to consolidated FG VIEs is limited to the financial guarantees issued for recourse liabilities and any additional variable interests held by Ambac. • A VIE is deconsolidated in the period that Ambac no longer has such control rights, which could occur in connection with the execution of remediation activities on the transaction or amortization of insured exposure, either of which may reduce the degree of Ambac’s control over a VIE. • Assets and liabilities of FG VIEs that are consolidated are reported within Variable interest entity assets or Variable interest entity liabilities on the Consolidated Balance Sheets. • Ambac has elected the fair value option for all FG VIE financial assets and financial liabilities which are consolidated. The total fair value changes in the financial assets of such FG VIEs are reported within Income (loss) on variable interest entities in the Consolidated Statements of Total Comprehensive Income (Loss). Prior to January 1, 2018, the total fair value changes in the financial liabilities of such FG VIEs were also reported within Income (loss) on variable interest entities. As further described in Note 2. Basis of Presentation and Significant Accounting Policies , effective January 1, 2018, Ambac adopted ASU 2016-01. Under this ASU, for financial liabilities where fair value option has been elected, the portion of the total change in fair value caused by changes in the instrument-specific credit risk is presented separately in Other comprehensive income (loss). • Upon initial consolidation of a FG VIE, we recognize a gain or loss in earnings for the difference between: (i) the fair value of the consideration paid, the fair value of any non-controlling interests and the reported amount of any previously held interests and (ii) the net amount, as measured on a fair value basis, of the assets and liabilities consolidated. Upon deconsolidation of a FG VIE, we recognize a gain or loss for the difference between: (i) the fair value of any consideration received, the fair value of any retained non-controlling investment in the VIE and the carrying amount of any non-controlling interest in the VIE and (ii) the carrying amount of the VIE’s assets and liabilities. Gains or losses from consolidation and deconsolidation that are reported in earnings are reported within Income (loss) on variable interest entities on the Consolidated Statements of Total Comprehensive Income (Loss). • The impact of consolidating such FG VIEs on Ambac’s balance sheet is the elimination of transactions between the consolidated FG VIEs and Ambac’s operating subsidiaries and the inclusion of the FG VIE’s third party assets and liabilities. For a financial guarantee insurance policy issued to a consolidated VIE, Ambac does not reflect the financial guarantee insurance policy in accordance with the related insurance accounting rules under the Financial Services – Insurance Topic of the ASC. Consequently, upon consolidation, Ambac eliminates the insurance assets and liabilities associated with the policy from the Consolidated Balance Sheets. Such insurance assets and liabilities may include premium receivables, reinsurance recoverable, deferred ceded premium, subrogation recoverable, unearned premiums, loss and loss expense reserves, ceded premiums payable and insurance intangible assets. For investment securities owned by Ambac that are debt instruments issued by the VIE, the investment securities balance is eliminated upon consolidation. In connection with the exit from rehabilitation of the Segregated Account, as further described in Note 1. Background and Business Description in this From 10-Q and in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , Ambac evaluated the consolidation of certain VIEs. Under the Stipulation and Order, the OCI retained the authority requiring Ambac Assurance to obtain their approval with respect to the exercise of certain control rights in connection with policies that had previously been allocated to the Segregated Account. Accordingly, Ambac did not consolidate any additional VIEs as a result of the Segregated Account's exit from rehabilitation. As of September 30, 2018 consolidated FG VIE assets and liabilities relating to eight consolidated entities were $7,347,422 and $7,245,870 , respectively. As of December 31, 2017 , consolidated FG VIE assets and liabilities relating to eleven consolidated entities were $14,500,507 and $14,366,434 , respectively. As of September 30, 2018 , seven and one consolidated FG VIEs related to transactions insured by Ambac UK and Ambac Assurance, respectively. As of December 31, 2017 , eight and three consolidated FG VIEs related to transactions insured by Ambac UK and Ambac Assurance, respectively. As of September 30, 2018 , FG VIE assets and liabilities of $7,209,445 and $7,107,889 , and as of December 31, 2017 , FG VIE assets and liabilities of $14,160,152 and $14,026,704 related to transactions guaranteed by Ambac UK. The remaining balance of consolidated FG VIE assets and liabilities are related to transactions guaranteed by Ambac Assurance. Ambac is not primarily liable for, and generally does not guarantee all of the debt obligations issued by the VIEs. Ambac would only be required to make payments on the VIE debt obligations in the event that the issuer of such debt obligations defaults on any principal or interest due and such obligation is guaranteed by Ambac. Additionally, Ambac’s general creditors, other than those specific policy holders which own the VIE debt obligations, do not have rights with regard to the assets of the VIEs. Ambac evaluates the net income effects and earnings per share effects to determine attributions between Ambac and non-controlling interests as a result of consolidating a VIE. Ambac has determined that the net income and earnings per share effect of consolidated FG VIEs are attributable to Ambac’s interests through financial guarantee premium and loss payments with the VIE. Below is a schedule detailing the change in fair value of the various financial instruments within the consolidated FG VIEs, along with gains (losses) from consolidating and deconsolidating FG VIEs that together comprise Income (loss) on variable interest entities for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income (loss) on changes related to: Net change in fair value of VIE assets and liabilities $ 386 $ (4,049 ) $ 1,854 $ (1,567 ) Less: Credit risk changes of fair value liabilities (379 ) — (696 ) — Deconsolidations 1,824 — 1,824 — Income (loss) on Variable Interest Entities $ 1,831 $ (4,049 ) $ 2,982 $ (1,567 ) Ambac deconsolidated two VIEs for the three and nine months ended September 30, 2018 . These VIEs were deconsolidated as a result of loss mitigation activities that eliminated or reduced Ambac's control rights that previously required Ambac to consolidate these entities. The 2018 balance sheet impact of these deconsolidations were a decline to total consolidated assets and liabilities by $6,471,015 and $6,451,078 in 2018, respectively. Ambac deconsolidated no VIEs for the three and nine months ended September 30, 2017 . The table below provides the fair value of fixed income securities, by asset-type, held by consolidated VIEs as of September 30, 2018 and December 31, 2017 : September 30, December 31, Investments: Corporate obligations $ 2,718,377 $ 2,914,145 Total variable interest entity assets: fixed income securities $ 2,718,377 $ 2,914,145 The following table provides supplemental information about the loans held as assets and long-term debt associated with the VIEs for which the fair value option has been elected as of September 30, 2018 and December 31, 2017 : Estimated Fair Value Unpaid Principal Balance September 30, 2018: Loans $ 4,563,091 $ 3,654,644 Long-term debt 5,585,860 4,831,033 December 31, 2017: Loans $ 11,529,384 $ 8,168,651 Long-term debt 12,160,544 9,387,884 Ambac Sponsored VIEs: A subsidiary of Ambac transferred financial assets to a VIE. The business purpose of this entity was to provide certain financial guarantee clients with funding for their debt obligations. This VIE was established as a separate legal entity, demonstrably distinct from Ambac and that Ambac, its affiliates or its agents could not unilaterally dissolve. The permitted activities of this entity are contractually limited to purchasing assets from Ambac, issuing medium-term notes (“MTNs”) to fund such purchases, executing derivative hedges and obtaining financial guarantee policies with respect to indebtedness incurred. Ambac does not consolidate this entity because Ambac Assurance’s policies issued to this entity were previously allocated to the Segregated Account and, as discussed above, the exercise of related control rights in such policies remain subject to OCI approval under the Stipulation and Order. Ambac elected to account for its equity interest in this entity at fair value under the fair value option in accordance with the Financial Instruments Topic of the ASC. We believe that the fair value of the investment in this entity provides for greater transparency for recording profit or loss as compared to the equity method under the Investments – Equity Method and Joint Ventures Topic of the ASC. Refer to Note 7. Fair Value Measurements for further information on the valuation technique and inputs used to measure the fair value of Ambac’s equity interest in this entity. At September 30, 2018 and December 31, 2017 the fair value of this entity was $4,887 and $5,979 , respectively, and is reported within Other assets on the Consolidated Balance Sheets. • Total principal amount of debt outstanding was $406,350 and $420,600 at September 30, 2018 and December 31, 2017 , respectively. In each case, Ambac sold assets to this entity. The assets are composed of utility obligations with a weighted average rating of BBB+ at September 30, 2018 and weighted average life of 2.4 years . The purchase by this entity of financial assets was financed through the issuance of MTNs, which are cross-collateralized by the purchased assets. The MTNs have the same expected weighted average life as the purchased assets. Derivative contracts (interest rate swaps) are used within the entity for economic hedging purposes only. Derivative positions were established at the time MTNs were issued to purchase financial assets. As of September 30, 2018 Ambac Assurance had financial guarantee insurance policies issued for all assets, MTNs and derivative contracts owned and outstanding by the entity. • Insurance premiums paid to Ambac Assurance by this entity are earned in a manner consistent with other insurance policies, over the risk period. Additionally, any losses incurred on such insurance policies are included in Ambac’s Consolidated Statements of Total Comprehensive Income (Loss). Under the terms of an Administrative Agency Agreement, Ambac provides certain administrative duties, primarily col lecting amounts du e on the obligations and making interest payments on the MTNs. In July 2015, Ambac Assurance entered into a secured borrowing transaction (the "Secured Borrowing") whereby it sold 17 Ambac insured residential mortgage-backed securities (the "Securities") and all rights associated therewith as of May 31, 2015, to a Delaware statutory trust (the "Trust") in exchange for an equity certificate in the Trust, all financial guarantee claim payments associated with the Securities and cash of $146,000 (prior to expenses associated with the transaction). Although the Securities were legally sold to the Trust, the Securities remained in Invested assets on the Consolidated Balance Sheets until they were sold to redeem the outstanding Notes. Refer to Note 8. Investments for further discussion of the restrictions on the invested assets. At the same time, a second Delaware statutory trust (the "Issuer"), issued $146,000 of debt securities and used the proceeds, together with an equity certificate of the Issuer, to purchase from the Trust a certificate secured by and entitling the Issuer to all principal and interest payments (other than financial guarantee claim payments) on the Securities. Interest on the debt securities is payable monthly at an annual rate of one month LIBOR + 2.8% . Both the Trust and the Issuer were consolidated VIEs because Ambac Assurance was involved in their design and holds a significant amount of the beneficial interests issued by the VIEs and guaranteed the assets held by the VIEs. On June 22, 2018, Ambac Assurance exercised its right to terminate this structure though its right to sell a sufficient quantity of Securities to redeem the remaining outstanding Notes of the Issuer at par plus accrued interest. Accordingly, proceeds from the sale of Securities were used to redeem the outstanding Notes. VIE debt outstanding to third parties under this secured borrowing transaction had a carrying value of $0 and $73,993 as of September 30, 2018 and December 31, 2017 , respectively, and is reported in Long-Term Debt on the Consolidated Balance Sheets. Variable Interests in Non-Consolidated VIEs On August 28, 2014, Ambac monetized its ownership of the junior surplus note issued to it by the Segregated Account by depositing the junior surplus note into a newly formed VIE trust in exchange for cash and an owner trust certificate, which represents Ambac's right to residual cash flows from the junior surplus note. Ambac does not consolidate the VIE. Ambac reports this interest in the VIE as an equity investment within Other investments on the Consolidated Balance Sheets with associated results from operations included within Net investment income: Other investments on the Consolidated Statements of Total Comprehensive Income (Loss). The equity investment had a carrying value of $38,830 and $34,941 as of September 30, 2018 and December 31, 2017 , respectively. On February 12, 2018, Ambac formed a VIE, Ambac LSNI, to issue Secured Notes in connection with the Rehabilitation Exit Transactions. Prior to the Rehabilitation Exit Transactions, Ambac and Ambac Assurance owned securities that were insured by Ambac Assurance and allocated to the Segregated Account. As a result of the Rehabilitation Exit Transactions, Ambac Assurance and Ambac received $643,583 and $124,881 , respectively, of par amount of Secured Notes issued by Ambac LSNI. Ambac does not consolidate the VIE and reports its holdings of Secured Notes as Fixed Income Securities in the Consolidated Balance Sheets. The carrying values of Secured Notes held by Ambac Assurance and Ambac as of September 30, 2018 were $598,321 and $115,683 , respectively. In addition, unsettled amounts from the September 30, 2018 interest payment and partial principal redemption of the Secured Notes owned by Ambac Assurance and Ambac were $32,894 and $6,360 , respectively, and are included in Receivable for securities on the Consolidated Balance Sheet as of September 30, 2018 . The following table displays the carrying amount of the assets, liabilities and maximum exposure to loss of Ambac’s variable interests in non-consolidated VIEs resulting from financial guarantee and derivative contracts by major underlying asset classes, as of September 30, 2018 and December 31, 2017 : Carrying Value of Assets and Liabilities Maximum (1) Insurance (2) Insurance (3) Net Derivative (4) September 30, 2018: Global structured finance: Collateralized debt obligations $ 14,554 $ — $ — $ (5 ) Mortgage-backed—residential (5) 6,992,810 1,827,464 555,122 — Other consumer asset-backed 1,745,767 16,349 245,775 — Other commercial asset-backed 1,025,429 25,397 17,248 — Other 2,181,409 55,516 299,138 6,048 Total global structured finance 11,959,969 1,924,726 1,117,283 6,043 Global public finance 24,551,420 315,578 345,308 (1,170 ) Total $ 36,511,389 $ 2,240,304 $ 1,462,591 $ 4,873 December 31, 2017: Global structured finance: Collateralized debt obligations $ 35,555 $ 169 $ 1 $ (15 ) Mortgage-backed—residential 12,766,685 619,848 3,218,356 — Other consumer asset-backed 2,266,610 23,405 328,732 — Other commercial asset-backed 987,797 30,413 35,976 — Other 2,513,304 60,086 306,457 10,311 Total global structured finance 18,569,951 733,921 3,889,522 10,296 Global public finance 25,629,816 335,347 371,056 (551 ) Total $ 44,199,767 $ 1,069,268 $ 4,260,578 $ 9,745 (1) Maximum exposure to loss represents the maximum future payments of principal and interest on insured obligations and derivative contracts plus Deferred Amounts and accrued and unpaid interest thereon. On February 12, 2018, all Deferred Amounts and interest accrued on Deferred Amounts were settled in connection with the Rehabilitation Exit Transactions. Ambac’s maximum exposure to loss does not include the benefit of any financial instruments (such as reinsurance or hedge contracts) that Ambac may utilize to mitigate the risks associated with these variable interests. (2) Insurance assets represent the amount recorded in “Premium receivables” and “Subrogation recoverable” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets. (3) Insurance liabilities represent the amount recorded in “Loss and loss expense reserves” and “Unearned premiums” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets. (4) Net derivative assets (liabilities) represent the fair value recognized on credit derivative contracts and interest rate swaps on Ambac’s Consolidated Balance Sheets. (5) On February 12, 2018, Deferred Amounts and Interest Accrued on Deferred Amounts in the amount of $3,000,158 and $856,834 |
Comprehensive Income
Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Comprehensive Income | 4. COMPREHENSIVE INCOME The following tables detail the changes in the balances of each component of accumulated other comprehensive income for the affected periods: Unrealized Gains (1) Amortization of (1) Gain (Loss) on (1) Credit Risk Changes of Fair Value Option Liabilities (1) (2) Total Three Months Ended September 30, 2018: Beginning Balance $ 153,634 $ 9,479 $ (114,567 ) $ (2,692 ) $ 45,854 Other comprehensive income (loss) before reclassifications 90,742 — (8,873 ) — 81,869 Amounts reclassified from accumulated other comprehensive income (loss) (29,935 ) (303 ) — 340 (29,898 ) Net current period other comprehensive income (loss) 60,807 (303 ) (8,873 ) 340 51,971 Balance at September 30, 2018 $ 214,441 $ 9,176 $ (123,440 ) $ (2,352 ) $ 97,825 Three Months Ended September 30, 2017: Beginning Balance $ 152,847 $ 11,316 $ (125,335 ) $ — $ 38,828 Other comprehensive income (loss) before reclassifications (7,801 ) — 24,624 — 16,823 Amounts reclassified from accumulated other comprehensive income (loss) 7,367 (338 ) — — 7,029 Net current period other comprehensive income (loss) (434 ) (338 ) 24,624 — 23,852 Balance at September 30, 2017 $ 152,413 $ 10,978 $ (100,711 ) $ — $ 62,680 Nine Months Ended September 30, 2018: Beginning Balance $ 30,755 $ 10,640 $ (93,634 ) $ — $ (52,239 ) Adjustment to opening balance, net of taxes (3) — — — (2,900 ) (2,900 ) Adjusted balance, beginning of period 30,755 10,640 (93,634 ) (2,900 ) (55,139 ) Other comprehensive income (loss) before reclassifications 264,318 (556 ) (29,806 ) — 233,956 Amounts reclassified from accumulated other comprehensive income (loss) (80,632 ) (908 ) — 548 (80,992 ) Net current period other comprehensive income (loss) 183,686 (1,464 ) (29,806 ) 548 152,964 Balance at September 30, 2018 $ 214,441 $ 9,176 $ (123,440 ) $ (2,352 ) $ 97,825 Nine Months Ended September 30, 2017: Beginning Balance $ 118,863 $ 9,367 $ (167,220 ) $ — $ (38,990 ) Other comprehensive income (loss) before reclassifications 19,769 2,625 66,509 — 88,903 Amounts reclassified from accumulated other comprehensive income (loss) 13,781 (1,014 ) — — 12,767 Net current period other comprehensive income (loss) 33,550 1,611 66,509 — 101,670 Balance at September 30, 2017 $ 152,413 $ 10,978 $ (100,711 ) $ — $ 62,680 (1) All amounts are net of tax and noncontrolling interest. Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income. (2) Represents the changes in fair value attributable to instrument-specific credit risk of liabilities for which the fair value option is elected. (3) Beginning in 2018, credit risk changes of fair value option liabilities are reflected as a component of Accumulated Other Comprehensive Income pursuant to the adoption of ASU 2016-01. See Note 2 to the Consolidated Financial Statements included in this Form 10-Q for further information regarding this change. The following table details the significant amounts reclassified from each component of accumulated other comprehensive income, shown in the above rollforward tables, for the affected periods: Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item in the Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Unrealized Gains (Losses) on Available-for-Sale Securities $ (30,560 ) $ 7,367 $ (81,843 ) $ 13,781 Net realized investment gains (losses) and other-than-temporary impairment losses 625 — 1,211 — Provision for income taxes $ (29,935 ) $ 7,367 $ (80,632 ) $ 13,781 Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ (241 ) $ (241 ) $ (723 ) $ (723 ) Other income (2) Actuarial (losses) (62 ) (97 ) (185 ) (291 ) Other income (2) (303 ) (338 ) (908 ) (1,014 ) Total before tax — — — — Provision for income taxes (303 ) (338 ) $ (908 ) $ (1,014 ) Net of tax and noncontrolling interest Credit risk changes of fair value option liabilities $ 380 $ — $ 630 $ — Credit Risk Changes of Fair Value Option Liabilities (40 ) — (82 ) — Provision for income taxes $ 340 $ — $ 548 $ — Net of tax and noncontrolling interest Total reclassifications for the period $ (29,898 ) $ 7,029 $ (80,992 ) $ 12,767 Net of tax and noncontrolling interest (1) Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income with corresponding increases to the affected line items in the Consolidated Statement of Total Comprehensive Income. (2) |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 5. NET INCOME PER SHARE As of September 30, 2018 , 45,332,214 shares of Ambac's common stock (par value $0.01 ) and warrants entitling holders to acquire up to 4,877,783 shares of new common stock at an exercise price of $16.67 per share were issued and outstanding. For the nine months ended September 30, 2018 and 2017 , 194 and 0 warrants were exercised, respectively, resulting in an issuance of 194 and 0 shares of common stock, respectively. On June 30, 2015, the Board of Directors of Ambac authorized the establishment of a warrant repurchase program that permits the repurchase of up to $10,000 of warrants. On November 3, 2016, the Board of Directors of Ambac authorized a $10,000 increase to the warrant repurchase program. For the nine months ended September 30, 2018 , Ambac did not repurchase any warrants. As of September 30, 2018 , Ambac had repurchased 985,331 warrants at a total cost of $8,092 , (average cost of $8.21 per warrant). The remaining aggregate authorization at September 30, 2018 was $11,939 . In connection with the AMPS Exchange, Ambac issued 824,307 of the repurchased warrants on August 3, 2018. Refer to Note 1. Background and Business Description for further discussion of the AMPS Exchange. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding and vested restricted stock units. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares used for basic earnings per share plus all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants issued under Ambac's Chapter 11 Reorganization Plan, vested and unvested options, unvested restricted stock units and performance stock units granted under employee and director compensation plans. The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic weighted average shares outstanding 45,749,252 45,404,315 45,635,483 45,355,671 Effect of potential dilutive shares (1) : Warrants — — 454,150 — Restricted stock units — — 72,615 — Performance stock units (2) — — 348,547 — Diluted weighted average shares outstanding 45,749,252 45,404,315 46,510,795 45,355,671 Anti-dilutive shares excluded from the above reconciliation: Stock options 126,667 126,667 126,667 126,667 Warrants 4,877,783 4,053,670 — 4,053,670 Restricted stock units 232,408 68,654 — 68,654 Performance stock units (2) 521,394 327,109 — 327,109 (1) For the three months ended September 30, 2018 and the three and nine months ended September 30, 2017 , Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. (2) |
Financial Guarantee Insurance C
Financial Guarantee Insurance Contracts | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Financial Guarantee Insurance Contracts | 6. FINANCIAL GUARANTEE INSURANCE CONTRACTS Amounts presented in this Note relate only to Ambac’s non-derivative insurance business for insurance policies issued to beneficiaries, including VIEs, for which we do not consolidate the VIE. Net Premiums Earned: Gross premiums are received either upfront or in installments. For premiums received upfront, an unearned premium revenue (“UPR”) liability is established, which is initially recorded as the cash amount received. For installment premium transactions, a premium receivable asset and offsetting UPR liability is initially established in an amount equal to: (i) the present value of future contractual premiums due (the “contractual” method) or (ii) if the assets underlying the insured obligation are homogenous pools which are contractually prepayable, the present value of premiums to be collected over the expected life of the transaction (the “expected” method). An appropriate risk-free rate corresponding to the weighted average life of each policy and currency is used to discount the future premiums contractually due or expected to be collected. For example, U.S. dollar exposures are discounted using U.S. Treasury rates while exposures denominated in a foreign currency are discounted using the appropriate risk-free rate for the respective currency. The weighted average risk-free rate at September 30, 2018 and December 31, 2017 , was 2.8% and 2.5% , respectively, and the weighted average period of future premiums used to estimate the premium receivable at September 30, 2018 and December 31, 2017 , was 8.7 years and 9.8 years , respectively. Insured obligations consisting of homogeneous pools for which Ambac uses expected future premiums to estimate the premium receivable and UPR include residential mortgage-backed securities. As prepayment assumptions change for homogenous pool transactions, or if there is an actual prepayment for a “contractual” method installment transaction, the related premium receivable and UPR are adjusted in equal and offsetting amounts with no immediate effect on earnings using new premium cash flows and the then current risk-free rate. In evaluating the credit quality of the premium receivables, management evaluates the obligor's ability to pay. For structured finance transactions, this evaluation will include a review of the priority for the payment of financial guarantee premiums to Ambac, as required by bond indentures, in the transaction's waterfall structure. The financial guarantee premium is generally senior in the waterfall. Uncollectable premiums are determined on a policy basis and utilize a combination of historical premium collection data in addition to cash flow analysis to determine if an impairment in the related policy's premium receivables exist. At September 30, 2018 and December 31, 2017 , $8,027 and $9,331 respectively, of premium receivables were deemed uncollectable. As of September 30, 2018 and December 31, 2017 , approximately 21% and 22% of the premium receivables, net of uncollectable receivables, related to transactions with non-investment grade internal ratings, mainly of structured finance transactions. Past due premiums on policies insuring non-investment grade obligations amounted to approximately $1,500 at September 30, 2018 , of which approximately $1,100 was received in October 2018. Below is the gross premium receivable roll-forward for the affected periods: Nine Months Ended September 30, 2018 2017 Beginning premium receivable $ 586,312 $ 661,337 Premium receipts (42,660 ) (66,141 ) Adjustments for changes in expected and contractual cash flows (1) (34,088 ) (24,407 ) Accretion of premium receivable discount 11,211 12,326 Changes to uncollectable premiums 2,473 (103 ) Other adjustments (including foreign exchange) (6,051 ) 18,745 Ending premium receivable (2) $ 517,197 $ 601,757 (1) Adjustments for changes in expected and contractual cash flows primarily due to reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns. (2) Premium receivable includes premiums to be received in foreign denominated currencies most notably in British Pounds and Euros. At September 30, 2018 and 2017 , premium receivables include British Pounds of $136,925 ( £104,988 ) and $153,964 ( £114,847 ), respectively, and Euros of $32,613 ( €28,085 ) and $36,815 ( €31,154 ), respectively. Similar to gross premiums, premiums ceded to reinsurers are paid either upfront or in installments. Premiums ceded to reinsurers reduce the amount of premiums earned by Ambac from its financial guarantee insurance policies. When a bond issue insured by Ambac Assurance has been retired early, typically due to an issuer call, any remaining UPR is recognized at that time to the extent the financial guarantee contract is legally extinguished, causing accelerated premium revenue. For installment premium paying transactions, we offset the recognition of any remaining UPR by the reduction of the related premium receivable to zero (as it will not be collected as a result of the retirement), which may cause negative accelerated premium revenue. Ambac’s accelerated premium revenue for retired obligations for the three and nine months ended September 30, 2018 was $6,751 and $22,246 , respectively, and for the three and nine months ended September 30, 2017 was $26,178 and $55,648 , respectively. Certain obligations insured by Ambac have been legally defeased whereby government securities are purchased by the issuer with the proceeds of a new bond issuance, or less frequently with other funds of the issuer, and held in escrow. The principal and interest received from the escrowed securities are then used to retire the Ambac-insured obligations at a future date either to their maturity date (a refunding) or a specified call date (a pre-refunding). Ambac has evaluated the provisions in policies issued on these obligations and determined those insurance policies have not been legally extinguished. For policies with refunding securities, premium revenue recognition is not impacted as the escrowed maturity date is the same as the previous legal maturity date. For policies with pre-refunding securities, the maturity date of the pre-refunded security has been shortened from its previous legal maturity. Although premium revenue recognition has not been accelerated in the period of the pre-refunding, it results in an increase in the rate at which the policy's remaining UPR is to be recognized. The effect of reinsurance on premiums written and earned for the respective periods was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Written Earned Written Earned Written Earned Written Earned Direct $ (22,954 ) $ 27,559 $ (24,696 ) $ 57,282 $ (19,304 ) $ 87,506 $ (12,184 ) $ 156,582 Assumed — 20 — 20 — 59 — 61 Ceded (789 ) 1,939 (385 ) 4,313 (1,832 ) 5,206 (1,962 ) 12,889 Net premiums $ (22,165 ) $ 25,640 $ (24,311 ) $ 52,989 $ (17,472 ) $ 82,359 $ (10,222 ) $ 143,754 The following table summarizes net premiums earned by location of risk for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 United States $ 19,539 $ 31,929 $ 64,009 $ 108,556 United Kingdom 4,523 17,273 14,337 28,094 Other international 1,578 3,787 4,013 7,104 Total $ 25,640 $ 52,989 $ 82,359 $ 143,754 The table below summarizes the future gross undiscounted premiums to be collected and future premiums earned, net of reinsurance at September 30, 2018 : Future Premiums (1) Future (1) Three months ended: December 31, 2018 $ 14,031 $ 14,672 Twelve months ended: December 31, 2019 52,211 55,831 December 31, 2020 49,314 52,205 December 31, 2021 42,999 47,630 December 31, 2022 41,004 44,441 Five years ended: December 31, 2027 181,091 180,584 December 31, 2032 140,309 120,582 December 31, 2037 79,454 67,135 December 31, 2042 28,784 23,960 December 31, 2047 13,631 12,632 December 31, 2052 3,621 4,647 December 31, 2057 91 297 Total $ 646,540 $ 624,616 (1) Future premiums to be collected are undiscounted and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable, as further described in Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to Consolidated Financial Statements included in Ambac's Annual Report on Form 10-K for the year ended December 31, 2017 . This results in a different premium receivable balance than if expected lives were considered. If installment paying policies are retired or prepay early, premiums reflected in the premium receivable asset and amounts reported in the above table for such policies may not be collected. Future premiums to be earned also considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral, which may result in different unearned premium than if expected lives were considered. If those bonds types are retired early, premium earnings may be negative in the period of call or refinancing. Loss and Loss Expense Reserves: The loss and loss expense reserve (“loss reserve”) policy for financial guarantee insurance relates only to Ambac’s non-derivative insurance business for insurance policies issued to beneficiaries, including VIEs, for which we do not consolidate the VIE. Losses and loss expenses are based upon estimates of the ultimate aggregate losses inherent in the non-derivative financial guarantee portfolio as of the reporting date. A loss reserve is recorded on the balance sheet on a policy-by-policy basis. Loss reserve components of an insurance policy include unpaid claims and the present value ("PV") of expected net cash flows required to be paid under an insurance contract, further described below: • Unpaid claims represent the sum of (i) claims presented and not yet paid for policies allocated to the Segregated Account, including Deferred Amounts and (ii) accrued interest on Deferred Amounts as required by the amended Segregated Account Rehabilitation Plan that became effective on June 12, 2014. As a result of the Rehabilitation Exit Transactions, as of February 12, 2018, all unpaid claims for policies allocated to the Segregated Account were fully satisfied and discharged. • The PV of expected net cash flows represents the PV of expected cash outflows less the PV of expected cash inflows. The PV of expected net cash flows are impacted by: (i) expected future claims to be paid under an insurance contract, including the impact of potential settlement outcomes upon future installment premiums, (ii) expected recoveries from contractual breaches of RMBS representations and warranties ("R&W") by transaction sponsors, (iii) excess spread within the underlying transaction's cash flow structure, and (iv) other subrogation recoveries, including expected receipts from third parties within the underlying transaction's cash flow structure. Ambac’s approach to resolving disputes involving contractual breaches by transaction sponsors or other third parties has included negotiations and/or pursuing litigation. Ambac does not include potential recoveries attributed solely to fraudulent inducement claims in our estimate of subrogation recoveries, since any remedies under such claims would be non-contractual. Net cash outflow policies represent contracts where the sum of unpaid claims plus the PV of expected cash outflows are greater than the PV of expected cash inflows. For such policies, a “Loss and loss expense reserves” liability is recorded for the sum of: (i) unpaid claims plus (ii) the excess of the PV of expected net cash outflows over the unearned premium revenue. Net cash inflow policies represent contracts where losses have been paid, but not yet recovered, such that the PV of expected cash inflows are greater than the sum of unpaid claims plus the PV of expected cash outflows. For such policies, a “Subrogation recoverable” asset is recorded for the difference between (i) the PV of expected net cash inflows and (ii) unpaid claims. The approaches used to estimate expected future claims and expected future recoveries considers the likelihood of all possible outcomes. The evaluation process for determining expected losses is subject to material estimates and judgments based on our assumptions regarding the probability of default by the issuer of the insured security, probability of settlement outcomes (which may include commutation settlements, refinancing and/or other settlements), expected severity of credits for each insurance contract and the timing of expected events including default, commutation and recovery. Ambac’s loss reserves are based on management’s on-going review of the financial guarantee credit portfolio. Below are the components of the Loss and loss expense reserves liability and the Subrogation recoverable asset at September 30, 2018 and December 31, 2017 : Unpaid Claims Present Value of Expected Balance Sheet Line Item Claims Accrued Claims and Recoveries Unearned Gross Loss and September 30, 2018: Loss and loss expense reserves $ — $ — $ 2,278,763 $ (305,024 ) $ (105,255 ) $ 1,868,484 Subrogation recoverable — — 182,865 (2,081,476 ) — (1,898,611 ) Totals $ — $ — $ 2,461,628 $ (2,386,500 ) $ (105,255 ) $ (30,127 ) December 31, 2017: Loss and loss expense reserves $ 2,411,632 $ 667,988 $ 2,855,010 $ (1,054,113 ) $ (135,502 ) $ 4,745,015 Subrogation recoverable 615,391 171,755 102,171 (1,520,530 ) — (631,213 ) Totals $ 3,027,023 $ 839,743 $ 2,957,181 $ (2,574,643 ) $ (135,502 ) $ 4,113,802 Below is the loss and loss expense reserve roll-forward, net of subrogation recoverable and reinsurance, for the affected periods: Nine Months Ended September 30, 2018 2017 Beginning gross loss and loss expense reserves $ 4,113,802 $ 3,696,038 Reinsurance recoverable 40,658 30,767 Beginning balance of net loss and loss expense reserves 4,073,144 3,665,271 Losses and loss expenses (benefit): Current year 976 5,328 Prior years (182,291 ) 405,589 Total (1) (2) (3) (181,315 ) 410,917 Loss and loss expenses paid (recovered): Current year 143 330 Prior years (3) 3,937,561 148,082 Total 3,937,704 148,412 Foreign exchange effect (9,578 ) 26,556 Ending net loss and loss expense reserves (55,453 ) 3,954,332 Reinsurance recoverable (4) 25,326 46,023 Ending gross loss and loss expense reserves (5) $ (30,127 ) $ 4,000,355 (1) Total losses and loss expenses (benefit) includes $(123) and $(21,189) for the nine months ended September 30, 2018 and 2017 , respectively, related to ceded reinsurance. (2) Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain R&Ws within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated representation and warranties for the nine months ended September 30, 2018 and 2017 was $56,928 and $62,451 , respectively. (3) On February 12, 2018, Deferred Amounts and Interest Accrued on Deferred Amounts in the amount of $3,000,158 and $856,834 , respectively were settled in connection with the Rehabilitation Exit Transactions. 2018 includes a $288,204 loss and loss expense benefit on these settled Deferred Amounts. (4) Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $185 and $(47) as of September 30, 2018 and 2017 , respectively, related to previously presented loss and loss expenses and subrogation. (5) Includes Euro denominated gross loss and loss expense reserves of $2,475 ( €2,131 ) and $21,142 ( €17,891 ) at September 30, 2018 and 2017 , respectively. For 2018 , the net positive development in prior years was primarily a result of the discount recorded on the Rehabilitation Exit Transactions partially offset by negative development in the Public Finance and RMBS portfolios and interest accrued on Deferred Amounts prior to the Rehabilitation Exit Transactions. For 2017 , the net adverse development was primarily the result of negative development in certain public finance transactions, including Puerto Rico, and interest accrued on Deferred Amounts partially offset by positive development in certain Ambac UK transactions. The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at September 30, 2018 and December 31, 2017 . Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at September 30, 2018 and December 31, 2017 was 3.1% and 2.5% , respectively. Surveillance Categories as of September 30, 2018 I IA II III IV V Total Number of policies 33 25 11 18 148 3 238 Remaining weighted-average contract period (in years) (1) 9 22 7 22 13 3 16 Gross insured contractual payments outstanding: Principal $ 1,058,679 $ 535,358 $ 356,714 $ 1,744,554 $ 5,609,816 $ 43,926 $ 9,349,047 Interest 493,847 558,077 151,446 6,980,654 2,209,528 15,229 10,408,781 Total $ 1,552,526 $ 1,093,435 $ 508,160 $ 8,725,208 $ 7,819,344 $ 59,155 $ 19,757,828 Gross undiscounted claim liability $ 4,130 $ 55,554 $ 37,858 $ 1,101,833 $ 2,359,788 $ 59,123 $ 3,618,286 Discount, gross claim liability (552 ) (14,667 ) (3,450 ) (513,413 ) (724,685 ) (5,110 ) (1,261,877 ) Gross claim liability before all subrogation and before reinsurance 3,578 40,887 34,408 588,420 1,635,103 54,013 2,356,409 Less: Gross RMBS subrogation (2) — — — — (1,814,915 ) — (1,814,915 ) Discount, RMBS subrogation — — — — 38,667 — 38,667 Discounted RMBS subrogation, before reinsurance — — — — (1,776,248 ) — (1,776,248 ) Less: Gross other subrogation (3) — (9,585 ) (23 ) (123,326 ) (597,581 ) (13,003 ) (743,518 ) Discount, other subrogation — 6,716 — 59,749 62,645 4,156 133,266 Discounted other subrogation, before reinsurance — (2,869 ) (23 ) (63,577 ) (534,936 ) (8,847 ) (610,252 ) Gross claim liability, net of all subrogation and discounts, before reinsurance 3,578 38,018 34,385 524,843 (676,081 ) 45,166 (30,091 ) Less: Unearned premium revenue (1,302 ) (9,656 ) (1,688 ) (36,993 ) (55,391 ) (225 ) (105,255 ) Plus: Loss expense reserves 2,117 3,240 2,256 12,101 85,505 — 105,219 Gross loss and loss expense reserves $ 4,393 $ 31,602 $ 34,953 $ 499,951 $ (645,967 ) $ 44,941 $ (30,127 ) Reinsurance recoverable reported on Balance Sheet (4) $ 275 $ 4,279 $ 8,736 $ 27,837 $ (15,616 ) $ — $ 25,511 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for representation and warranty ("R&W") breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $25,326 related to future loss and loss expenses and $185 related to presented loss and loss expenses and subrogation. Surveillance Categories as of December 31, 2017 I IA II III IV V Total Number of policies 26 20 26 22 179 4 277 Remaining weighted-average contract period (in years) (1) 10 23 10 24 13 4 17 Gross insured contractual payments outstanding: Principal $ 1,046,267 $ 531,190 $ 1,199,909 $ 1,998,861 $ 6,862,281 $ 48,562 $ 11,687,070 Interest 531,657 584,098 413,045 7,182,715 2,469,765 16,332 11,197,612 Total $ 1,577,924 $ 1,115,288 $ 1,612,954 $ 9,181,576 $ 9,332,046 $ 64,894 $ 22,884,682 Gross undiscounted claim liability (2) $ 4,434 $ 56,659 $ 77,289 $ 1,412,976 $ 6,409,340 $ 64,863 $ 8,025,561 Discount, gross claim liability (465 ) (13,095 ) (12,250 ) (643,897 ) (616,559 ) (4,739 ) (1,291,005 ) Gross claim liability before all subrogation and before reinsurance 3,969 43,564 65,039 769,079 5,792,781 60,124 6,734,556 Less: Gross RMBS subrogation (3) — — — — (1,857,502 ) — (1,857,502 ) Discount, RMBS subrogation — — — — 23,115 — 23,115 Discounted RMBS subrogation, before reinsurance — — — — (1,834,387 ) — (1,834,387 ) Less: Gross other subrogation (4) — (7,990 ) (9,371 ) (53,070 ) (743,456 ) (13,191 ) (827,078 ) Discount, other subrogation — 5,169 2,550 8,349 67,045 3,709 86,822 Discounted other subrogation, before reinsurance — (2,821 ) (6,821 ) (44,721 ) (676,411 ) (9,482 ) (740,256 ) Gross claim liability, net of all subrogation and discounts, before reinsurance 3,969 40,743 58,218 724,358 3,281,983 50,642 4,159,913 Less: Unearned premium revenue (2,126 ) (9,990 ) (12,238 ) (46,086 ) (64,786 ) (276 ) (135,502 ) Plus: Loss expense reserves 16,116 3,242 665 13,331 56,037 — 89,391 Gross loss and loss expense reserves $ 17,959 $ 33,995 $ 46,645 $ 691,603 $ 3,273,234 $ 50,366 $ 4,113,802 Reinsurance recoverable reported on Balance Sheet (5) $ 202 $ 4,894 $ 9,424 $ 38,465 $ (11,988 ) $ — $ 40,997 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) Gross undiscounted claim liability includes unpaid claims, including accrued interest on Deferred Amounts, on policies allocated to the Segregated Account and Ambac's estimate of expected future claims. (3) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (4) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (5) Reinsurance recoverable reported on Balance Sheet includes reinsurance recoverables of $40,658 related to future loss and loss expenses and $339 related to presented loss and loss expenses and subrogation. Puerto Rico: Ambac has exposure to the Commonwealth of Puerto Rico (the "Commonwealth") and its instrumentalities across several different issuing entities. Each has its own credit risk profile attributable to discrete revenue sources, direct general obligation pledges or general obligation guarantees. The Commonwealth of Puerto Rico and certain of its instrumentalities have defaulted and may continue to default on debt service payments, including payments owed on bonds insured by Ambac Assurance. Ambac Assurance may be required to make significant amounts of policy payments over the next several years, the recoverability of which is subject to great uncertainty, which may lead to a material increase in permanent losses causing a material adverse impact on our results of operations and financial condition. Our exposure to Puerto Rico is impacted by the amount of monies available for debt service, which is in turn affected by a number of factors including demographic trends, economic growth, tax policy and revenues, impact of reforms, fiscal plans, government actions, budgetary performance and flexibility, weather events, litigation outcomes, as well as federal funding of Commonwealth needs. In the near term, the financial and economic outlook for Puerto Rico is dependent upon a still fragile infrastructure, heightening its vulnerability to additional weather events. The longer term recovery of the Commonwealth economy and its essential infrastructure will likely be dependent on, amongst other factors, the management, usage and efficacy of federal resources. Also important to Puerto Rico's economic growth, government reform and creditor outcomes is the revised fiscal plan for the Commonwealth of Puerto Rico ("Revised Commonwealth Fiscal Plan"), certified by the Financial Oversight and Management Board for Puerto Rico ("Oversight Board") on October 23, 2018. The Revised Commonwealth Fiscal Plan outlines a series of reforms, projects the fiscal and economic impact of those reforms, and provides forecasts of resulting budgetary surpluses over a fiscal year series. However, as was the case with prior Commonwealth Fiscal Plans, the Revised Commonwealth Fiscal Plan lacks a high degree of transparency regarding the underlying data, assumptions and rationales supporting those assumptions, making reconciliation and due diligence difficult. As a result, it is difficult to predict the long-term capacity and willingness of the Puerto Rico government and its instrumentalities to pay debt service on bonded debt and how their debt burden and financial flexibility might affect Ambac Assurance's claim potential, risk profile and long-term financial strength. Substantial uncertainty exists with respect to the ultimate outcome for creditors in Puerto Rico, such as Ambac Assurance, due to, amongst other matters, legislation enacted by the Commonwealth and the federal government, including PROMESA, as well as actions taken pursuant to such laws, including Title III filings. Ambac Assurance is involved in multiple litigations relating to such actions and other issues and may not be successful in pursuing claims or protecting its interests. As a result of litigation or other aspects of the restructuring processes, the difference among the credits insured by Ambac Assurance may not be respected. On October 19, 2018, the Oversight Board filed the COFINA Plan of Adjustment and Disclosure Statement as part of the COFINA Title III case. No assurance can be given that the filed COFINA Plan of Adjustment and Disclosure Statement or an amended COFINA Plan of Adjustment and Disclosure Statement acceptable to Ambac will be approved by the court. At this time, it is unclear what the impact of the COFINA restructuring will be on the non-COFINA Puerto Rico-related exposures Ambac Assurance insures. Ambac Assurance is also participating in a mediation process with respect to potential debt restructurings. Mediation may not be productive or may not resolve Ambac Assurance's claims in a manner that avoids significant losses. It is possible that certain restructuring process solutions, together with associated legislation, budgetary, and/or public policy proposals could be adopted and could significantly or further impair our exposures causing losses that could have a material adverse impact on our results of operations and financial condition. While our reserving scenarios reflect a wide range of possible outcomes, reflecting the significant uncertainty regarding future developments and outcomes, given our exposure to Puerto Rico and the economic, fiscal, legal and political uncertainties associated therewith as well as the uncertainties emanating from the damage caused by hurricanes Maria and Irma, our loss reserves may ultimately prove to be insufficient to cover our losses, potentially by a material amount, and may be subject to material volatility. Ambac has considered these developments and other factors in evaluating its Puerto Rico loss reserves. During the nine months ended September 30, 2018 , Ambac had incurred losses associated with its Domestic Public Finance insured portfolio of $41,939 , which was primarily impacted by the continued uncertainty and volatility of the situation in Puerto Rico, partially offset by an increase in loss reserve discount rates. While management believes its reserves are adequate to cover losses in its Public Finance insured portfolio, there can be no assurance that Ambac may not incur additional losses in the future, particularly given the developing economic, political, and legal circumstances in Puerto Rico. Such additional losses may have a material adverse effect on Ambac’s results of operations and financial condition. For public finance credits, including Puerto Rico, as well as other issuers, for which Ambac has an estimate of expected loss at September 30, 2018 , the possible increase in loss reserves under stress or other adverse conditions and circumstances was estimated to be approximately $1,190,000 . This possible increase in loss reserves under stress or other adverse conditions is significant and if we were to experience such incremental losses, our stockholders’ equity as of September 30, 2018 would decrease from $1,798,809 to $608,809 . However, there can be no assurance that losses may not exceed such amount. Representation and Warranty Recoveries: Ambac records estimated subrogation recoveries for breaches of R&Ws by sponsors of certain RMBS transactions. For a discussion of the approach utilized to estimate R&W subrogation recoveries, see Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to Consolidated Financial Statements included Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . However, such estimates are not material to Ambac’s financial results and therefore are included in the below table. Ambac has recorded R&W subrogation recoveries of $1,776,248 ( $1,749,808 net of reinsurance) and $1,834,387 ( $1,806,736 net of reinsurance) at September 30, 2018 and December 31, 2017 , respectively. The balance of R&W subrogation recoveries and the related loss reserves at September 30, 2018 and December 31, 2017 , are as follows: Gross Loss (1) Subrogation (2)(3) Gross Loss At September 30, 2018 $ 131,245 $ (1,776,248 ) $ (1,645,003 ) At December 31, 2017 $ 1,366,483 $ (1,834,387 ) $ (467,904 ) (1) Amount represents gross loss reserves for policies that have established a representation and warranty subrogation recovery. December 31, 2017 includes unpaid RMBS claims (including accrued interest thereon) on policies allocated to the Segregated Account, such balances have been settled via the Rehabilitation Exit Transactions. (2) The amount of recorded subrogation recoveries related to each securitization is limited to ever-to-date paid and unpaid losses plus the present value of expected future cash flows for each policy. To the extent losses have been paid but not yet fully recovered, the recorded amount of R&W subrogation recoveries may exceed the sum of the unpaid claims and the present value of expected cash out flows for a given policy. The net cash inflow for these policies is recorded as a “Subrogation recoverable” asset. For those transactions where the subrogation recovery is less than the sum of unpaid claims and the present value of expected cash flows, the net cash outflow for these policies is recorded as a “Loss and loss expense reserves” liability. (3) The sponsor’s repurchase obligation may differ depending on the terms of the particular transaction and the status of the specific loan, such as whether it is performing or has been liquidated or charged off. Below is the rollforward of R&W subrogation for the affected periods: Nine Months Ended September 30, 2018 2017 Discounted R&W subrogation (gross of reinsurance) at beginning of period $ 1,834,387 $ 1,907,035 Changes recognized during the period: Impact of sponsor actions — — All other changes (1) (58,139 ) (62,919 ) Discounted R&W subrogation (gross of reinsurance) at end of period $ 1,776,248 $ 1,844,116 (1) All other changes which may impact R&W subrogation recoveries include changes in actual or projected collateral performance, changes in the creditworthiness of a sponsor, changes in discount rates and/or the projected timing of recoveries. All other changes may also include estimates of potential sponsor settlements that may not have been subject to a sampling approach. Those that have not been subject to a sampling approach are not material to Ambac’s financial results and therefore are included in this table. Our ability to realize R&W subrogation recoveries is subject to significant uncertainty, including risks inherent in litigation, collectability of such amounts from counterparties (and/or their respective parents and affiliates), timing of receipt of any such recoveries, intervention by OCI, which could impede our ability to take actions required to realize such recoveries, and uncertainty inherent in the assumptions used in estimating such recoveries. Failure to realize R&W subrogation recoveries for any reason or the realization of R&W subrogation recoveries materially below the amount recorded on Ambac's consolidated balance sheet would have a material adverse effect on our results of operations and financial condition and may result in adverse consequen |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. FAIR VALUE MEASUREMENTS The Fair Value Measurement Topic of the ASC establishes a framework for measuring fair value and disclosures about fair value measurements. Fair Value Hierarchy: The Fair Value Measurement Topic of the ASC specifies a fair value hierarchy based on whether the inputs to valuation techniques used to measure fair value are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Company-based assumptions. The fair value hierarchy prioritizes model inputs into three broad levels as follows: l Level 1 Quoted prices for identical instruments in active markets. Assets and liabilities classified as Level 1 include US Treasury and other foreign government obligations traded in highly liquid and transparent markets, exchange traded futures contracts, variable rate demand obligations and money market funds. l Level 2 Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Assets and liabilities classified as Level 2 generally include investments in fixed income securities representing municipal, asset-backed and corporate obligations, certain interest rate swap contracts and most long-term debt of variable interest entities consolidated under the Consolidation Topic of the ASC. l Level 3 Model derived valuations in which one or more significant inputs or significant value drivers are unobservable. This hierarchy requires the use of observable market data when available. Assets and liabilities classified as Level 3 include credit derivative contracts, certain uncollateralized interest rate swap contracts, equity interests in Ambac sponsored special purpose entities and certain investments in fixed income securities. Additionally, Level 3 assets and liabilities generally include loan receivables, and certain long-term debt of variable interest entities consolidated under the Consolidation Topic of the ASC. The following table sets forth the carrying amount and fair value of Ambac’s financial assets and liabilities as of September 30, 2018 and December 31, 2017 , 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. Carrying Total Fair Fair Value Measurements Categorized as: September 30, 2018: Level 1 Level 2 Level 3 Financial assets: Fixed income securities: Municipal obligations $ 970,464 $ 970,464 $ — $ 970,464 $ — Corporate obligations 1,319,368 1,319,368 — 1,319,368 — Foreign obligations 34,007 34,007 32,906 1,101 — U.S. government obligations 92,207 92,207 92,207 — — Residential mortgage-backed securities 278,775 278,775 — 278,775 — Collateralized debt obligations 87,721 87,721 — 87,721 — Other asset-backed securities 438,759 438,759 — 366,665 72,094 Fixed income securities, pledged as collateral: U.S. government obligations 84,186 84,186 84,186 — — Short term investments 562,060 562,060 454,746 107,314 — Other investments (1) 411,604 390,729 63,520 — 17,955 Cash and cash equivalents 52,505 52,505 31,094 21,411 — Loans 10,082 12,189 — — 12,189 Derivative assets: Interest rate swaps—asset position 50,699 50,699 — 7,287 43,412 Interest rate swaps—liability position (437 ) (437 ) — (437 ) — Futures contracts — — — — — Other assets 4,887 4,887 — — 4,887 Variable interest entity assets: Fixed income securities: Corporate obligations 2,718,377 2,718,377 — — 2,718,377 Restricted cash 1,024 1,024 1,024 — — Loans 4,563,091 4,563,091 — — 4,563,091 Derivative assets: Currency swaps-asset position 61,543 61,543 — 61,543 — Total financial assets $ 11,656,736 $ 11,637,968 $ 675,497 $ 3,221,212 $ 7,432,005 Financial liabilities: Long term debt, including accrued interest $ 3,294,482 $ 3,333,145 $ — $ 2,968,246 $ 364,899 Derivative liabilities: Credit derivatives 1,175 1,175 — — 1,175 Interest rate swaps—asset position — — — — Interest rate swaps—liability position 59,728 59,728 — 59,728 — Futures contracts 428 428 428 — — Liabilities for net financial guarantees written (2) (644,090 ) 786,156 — — 786,156 Variable interest entity liabilities: Long-term debt 5,585,860 5,585,860 — 5,354,580 231,280 Derivative liabilities: Interest rate swaps—liability position 1,657,173 1,657,173 — 1,657,173 — Total financial liabilities $ 9,954,756 $ 11,423,665 $ 428 $ 10,039,727 $ 1,383,510 Carrying Total Fair Fair Value Measurements Categorized as: December 31, 2017: Level 1 Level 2 Level 3 Financial assets: Fixed income securities: Municipal obligations $ 779,834 $ 779,834 $ — $ 779,834 $ — Corporate obligations 860,075 860,075 450 859,625 — Foreign obligations 26,543 26,543 25,615 928 — U.S. government obligations 85,408 85,408 85,408 — — Residential mortgage-backed securities 2,251,333 2,251,333 — 1,515,316 736,017 Collateralized debt obligations 51,037 51,037 — 51,037 — Other asset-backed securities 597,942 597,942 — 525,402 72,540 Fixed income securities, pledged as collateral: U.S. government obligations 99,719 99,719 99,719 — — Short term investments 557,270 557,270 389,299 167,971 — Other investments (1) 431,630 413,977 56,498 29,750 17,288 Cash and cash equivalents 623,703 623,703 615,073 8,630 — Loans 10,358 10,284 — — 10,284 Derivative assets: Interest rate swaps—asset position 73,199 73,199 — 11,825 61,374 Other assets 5,979 5,979 — — 5,979 Variable interest entity assets: Fixed income securities: Corporate obligations 2,914,145 2,914,145 — — 2,914,145 Restricted cash 978 978 978 — — Loans 11,529,384 11,529,384 — — 11,529,384 Derivative assets: Currency swaps—asset position 54,877 54,877 — 54,877 — Total financial assets $ 20,853,695 $ 20,835,968 $ 1,173,321 $ 4,005,195 $ 15,347,011 Financial liabilities: Long term debt, including accrued interest $ 1,428,680 $ 1,369,499 $ — $ 1,046,511 $ 322,988 Derivative liabilities: Credit derivatives 566 566 — — 566 Interest rate swaps—asset position (627 ) (627 ) — (627 ) — Interest rate swaps—liability position 81,495 81,495 — 81,495 — Futures contracts 1,348 1,348 1,348 — — Liabilities for net financial guarantees written (2) 3,435,438 4,842,402 — — 4,842,402 Variable interest entity liabilities: Long-term debt 12,160,544 12,160,544 — 9,402,856 2,757,688 Derivative liabilities: Interest rate swaps—liability position 2,205,264 2,205,264 — 2,205,264 — Total financial liabilities $ 19,312,708 $ 20,660,491 $ 1,348 $ 12,735,499 $ 7,923,644 (1) Excluded from the fair value measurement categories in the table above are investment funds of $309,254 and $310,441 as of September 30, 2018 and December 31, 2017 , respectively, which are measured using NAV per share as a practical expedient. (2) The carrying value of net financial guarantees written includes the following balance sheet items: Premium receivables; Reinsurance recoverable on paid and unpaid losses; Deferred ceded premium; Subrogation recoverable; Insurance intangible asset; Unearned premiums; Loss and loss expense reserves; Ceded premiums payable, premiums taxes payable and other deferred fees recorded in Other liabilities. Determination of Fair Value: When available, Ambac uses quoted active market prices specific to the financial instrument to determine fair value, and classifies such items within Level 1. The determination of fair value for financial instruments categorized in Level 2 or 3 involves significant judgment due to the complexity of factors contributing to the valuation. Third-party sources from which we obtain independent market quotes also use assumptions, judgments and estimates in determining financial instrument values and different third parties may use different methodologies or provide different values for financial instruments. In addition, the use of internal valuation models may require assumptions about hypothetical or inactive markets. As a result of these factors, the actual trade value of a financial instrument in the market, or exit value of a financial instrument position by Ambac, may be significantly different from its recorded fair value. Ambac’s financial instruments carried at fair value are mainly comprised of investments in fixed income securities, equity interests in pooled investment funds, derivative instruments, variable interest entity assets and liabilities and interests in Ambac sponsored special purpose entities. Valuation of financial instruments is performed by Ambac’s finance group using methods approved by senior financial management with consultation from risk management and portfolio managers as appropriate. Preliminary valuation results are discussed with portfolio managers quarterly to assess consistency with market transactions and trends as applicable. Market transactions such as trades or negotiated settlements of similar positions, if any, are reviewed to validate fair value model results. However many of the financial instruments valued using significant unobservable inputs have very little or no observable market activity. Methods and significant inputs and assumptions used to determine fair values across portfolios are reviewed quarterly by senior financial management. Other valuation control procedures specific to particular portfolios are described further below. We reflect Ambac’s own creditworthiness in the fair value of financial liabilities by including a credit valuation adjustment (“CVA”) in the determination of fair value. A decline (increase) in Ambac’s creditworthiness as perceived by market participants will generally result in a higher (lower) CVA, thereby lowering (increasing) the fair value of Ambac’s financial liabilities as reported. Fixed Income Securities: The fair values of fixed income investment securities are based primarily on market prices received from dealer quotes or alternative pricing sources with reasonable levels of price transparency. Because many fixed income securities do not trade on a daily basis, pricing sources apply available market information through processes such as matrix pricing to calculate fair value. Such prices generally consider a variety of factors, including recent trades of the same and similar securities. In those cases, the items are classified within Level 2. For those fixed income investments where quotes were not available or cannot be reasonably corroborated, fair values are based on internal valuation models. Key inputs to the internal valuation models generally include maturity date, coupon and yield curves for asset-type and credit rating characteristics that closely match those characteristics of the specific investment securities being valued. Items valued using valuation models are classified according to the lowest level input or value driver that is significant to the valuation. Thus, an item may be classified in Level 3 even though there may be significant inputs that are readily observable. Longer (shorter) expected maturities or higher (lower) yields used in the valuation model will, in isolation, result in decreases (increases) in fair value. Generally, lower credit ratings or longer expected maturities will be accompanied by higher yields used to value a security. At September 30, 2018 , approximately 7% , 91% and 2% of the fixed income investment portfolio (excluding variable interest entity investments) was valued using dealer quotes, alternative pricing sources with reasonable levels of price transparency and internal valuation models, respectively. At December 31, 2017 , approximately 6% , 79% and 15% of the fixed income investment portfolio (excluding variable interest entity investments) was valued using dealer quotes, alternative pricing sources with reasonable levels of price transparency and internal valuation models, respectively. At December 31, 2017, among the investments valued using internal valuation models were Ambac insured securities for which projected cash flows consisted solely of Deferred Amounts and interest thereon. These securities were internally valued based upon the valuation of Ambac Assurance's surplus notes and comprised 13% of the portfolio at December 31, 2017 . Ambac performs various review and validation procedures to quoted and modeled prices for fixed income securities, including price variance analyses, missing and static price reviews, overall valuation analysis by portfolio managers and finance managers and reviews associated with our ongoing impairment analysis. Unusual prices identified through these procedures will be evaluated further against alternative third party quotes (if available) and/or internally modeled prices, and the pricing source values will be challenged as necessary. Price challenges generally result in the use of the pricing source’s quote as originally provided or as revised by the source following their internal diligence process. A price challenge may result in a determination by either the pricing source or Ambac management that the pricing source cannot provide a reasonable value for a security or cannot adequately support a quote, in which case Ambac would resort to using either other quotes or internal models. Results of price challenges are reviewed by portfolio managers and finance managers. Information about the valuation inputs for fixed income securities classified as Level 3 is included below: Residential mortgage-backed securities: A portion of these securities were guaranteed under policies that were subject to the Segregated Account Rehabilitation Plan and had projected future cash flows consisting solely of Deferred Amounts under such policies including interest thereon. As described in Note 1. Background and Business Description , upon consummation of the Rehabilitation Exit Transactions on February 12, 2018, all Deferred Amounts have been settled. The fair value of such securities classified as Level 3 was $709,950 at December 31, 2017 . Fair value was calculated based on the valuation of Ambac Assurance surplus notes which, under the terms of the Segregated Account Rehabilitation Plan, were to be redeemed in proportion with the payment of Deferred Amounts on or about the dates when such payments were to be made. The remaining portion of Level 3 residential mortgage-backed securities as of December 31, 2017 is an Ambac-insured re-REMIC containing distressed mortgage-backed securities as collateral. This security was transfered from Level 3 to Level 2 during the second quarter of 2018. The fair value of this security was $26,067 as of December 31, 2017 . Fair value was calculated using a discounted cash flow approach with expected future cash flows discounted using a yield consistent with the security type and rating. Significant inputs for the valuations at December 31, 2017 were as follows: December 31, 2017 a. Coupon rate: 2.05% b. Average Life: 0.65 years c. Yield: 10.00% Other asset-backed securities: These securities are a subordinated tranche of a resecuritization collateralized by Ambac-insured military housing bonds. The fair value of such securities classified as Level 3 was $72,094 and $72,540 at September 30, 2018 and December 31, 2017 , respectively. Fair value was calculated using a discounted cash flow approach with expected future cash flows discounted using a yield consistent with the security type and rating. Significant inputs for the valuation at September 30, 2018 and December 31, 2017 include the following weighted averages: September 30, 2018: December 31, 2017: a. Coupon rate: 5.97% a. Coupon rate: 5.97% b. Average Life: 16.48 years b. Maturity: 17.02 years c. Yield: 12.00% c. Yield: 12.00% Other Investments: Other investments primarily relate to investments in pooled investment funds. The fair value of pooled investment funds is determined using dealer quotes or alternative pricing sources when such investments have readily determinable fair values. When fair value is not readily determinable, pooled investment funds are valued using the net asset value (“NAV”) per share as a practical expedient as permitted under the Fair Value Measurement Topic of the ASC. Refer to Note 8. Investments for additional information about such investments in pooled funds that are reported at fair value using NAV as a practical expedient. Other investments also includes Ambac's equity interest in a non-consolidated VIE, which is carried under the equity method. Valuation of this equity interest is internally calculated using a discounted cash flow approach and is classified as Level 3. Derivative Instruments: Ambac’s derivative instruments primarily comprise interest rate and credit default swaps and exchange traded futures contracts. Fair value is determined based upon market quotes from independent sources, when available. When independent quotes are not available, fair value is determined using valuation models. These valuation models require market-driven inputs, including contractual terms, credit spreads and ratings on underlying referenced obligations, yield curves and tax-exempt interest ratios. The valuation of certain interest rate as well as all credit derivative contracts also require the use of data inputs and assumptions that are determined by management and are not readily observable in the market. Under the Fair Value Measurement Topic of the ASC, Ambac is required to consider its own credit risk when measuring the fair value of derivatives. Additional factors considered in estimating the amount of any Ambac CVA on such contracts include collateral posting provisions, right of set-off with the counterparty, the period of time remaining on the derivative and the pricing of recent terminations. As described further below, the selection of a model to value a derivative depends on the contractual terms of, and specific risks inherent in the instrument as well as the availability of pricing information in the market. Derivatives that are less complex may be valued primarily by reference to interest rates and yield curves that are observable and regularly quoted, such as interest rate swaps, for which we generally utilize vendor-developed models. These models provide the net present value of the derivatives based on contractual terms and observable market data. Downgrades of Ambac Assurance, as guarantor of the derivatives, have increased collateral requirements and triggered termination provisions in certain interest rate swaps. Termination activity since the initial rating downgrades of Ambac Assurance provided additional information about the replacement and/or exit value of certain derivatives, which has been incorporated into the fair value of these derivatives as appropriate. Generally, the need for counterparty (or Ambac) CVAs is mitigated by the existence of collateral posting agreements under which adequate collateral has been posted. Derivative contracts entered into with financial guarantee customers are not subject to collateral posting agreements. Counterparty credit risk related to such customer derivative assets is included in our fair value adjustments. For derivatives that do not trade, or trade in less liquid markets such as credit derivatives, an internal model is generally used because such instruments tend to be unique, contain complex or heavily modified and negotiated terms and pricing information is not readily available in the market. Derivative fair value models and the related assumptions are continuously re-evaluated by management and enhanced, as appropriate, based on improvements in modeling techniques. Ambac has not made any significant changes to its modeling techniques or related model inputs for the periods presented. Credit Derivatives (“CDS”): Fair value of Ambac’s CDS is determined using internal valuation models and represents the hypothetical transfer cost of the contract calculated as the difference between the net present value of the projected fees receivable under the CDS and our estimate of the fees a financial guarantor of comparable credit quality would charge to provide the same protection at the balance sheet date. Financial guarantee contracts, including CDS, are typically priced to capture some portion of the spread that would be observed in the capital markets for the underlying (insured) obligation. Because of this relationship and in the absence of severe credit deterioration, changes in the fair value of our credit default swaps will generally be less than changes in the fair value of the underlying reference obligations. Key variables used in the valuation of our credit derivatives include the balance of unpaid notional, expected term, fair values of the underlying reference obligations, reference obligation credit ratings and the CVA applied against Ambac Assurance liabilities by market participants. Notional balances, expected remaining term and reference obligation credit ratings are monitored and determined by Ambac’s portfolio risk management group. Fair values of the underlying reference obligations are obtained from broker quotes when available or are estimated internally using the same methodologies used to value Ambac’s fixed income securities in its investment portfolio. Ambac reflects changes in reference obligation credit ratings within the fair value of its CDS contracts by changing the percentage of the obligation's market spread (over LIBOR) that would be captured as a CDS fee at the valuation date. We adjust this percentage (“relative change ratio”) in our valuations based on internal rating changes such that the resulting fair value liability of the CDS contract, excluding the effect of Ambac's own credit risk, will increase up to the full amount of the unrealized loss on the reference obligation as the credit rating declines. Ambac incorporates its own credit risk into the valuation of its CDS liabilities by applying a CVA to the calculations described above. The Ambac CVA represents the difference between the present value of the hypothetical fees discounted at LIBOR compared to discount rates that incorporate Ambac credit risk. Information about the above described model inputs used to determine the fair value of credit derivatives, including the CVA as a percentage of the gross mark-to-market liability before considering Ambac credit risk (“CVA percentage”), as of September 30, 2018 and December 31, 2017 is summarized below: September 30, December 31, 2017 Number of CDS transactions 2 2 Notional outstanding $ 303,650 $ 325,890 Weighted average reference obligation price 98.3 99.3 Weighted average life (WAL) in years 5.9 6.5 Weighted average credit rating A A Weighted average relative change ratio 23.1 % 23.6 % CVA percentage 6.75 % 9.64 % Fair value of derivative liabilities $ 1,175 $ 566 The maximum potential amount of future payments under Ambac’s credit derivative contracts is generally the gross notional outstanding amount included in the above table plus future interest payments by the derivative reference obligations. Since Ambac’s credit derivatives typically reference obligations of or assets held by special purpose entities that meet the definition of a VIE, the amount of maximum potential future payments for credit derivatives is included in the table in Note 3. Variable Interest Entities . Changes in fair value are recorded in “Net change in fair value of credit derivatives” on the Consolidated Statements of Total Comprehensive Income (Loss). Although CDS contracts are accounted for at fair value, they are surveilled similar to non-derivative financial guarantee contracts. As with financial guarantee insurance policies, Ambac’s Risk Management group tracks credit migration of CDS contracts’ reference obligations from period to period. Credits are assigned risk classifications by the Risk Management group. As of September 30, 2018 , there are no CDS contracts on Ambac’s adversely classified credit listing. Significant unobservable inputs for credit derivatives include WAL, internal credit rating, relative change ratio and CVA percentage. A longer (shorter) WAL, lower (higher) reference obligation credit rating, higher (lower) relative change ratio or lower (higher) CVA, in isolation, would result in an increase (decrease) in the fair value liability measurement. A change in an internal credit rating of a reference obligation in our model will generally result in a directionally opposite change in the relative change ratio. Also, a shorter (longer) WAL will generally correspond with a lower (higher) CVA percentage. Financial Guarantees: Fair value of net financial guarantees written represents our estimate of the cost to Ambac to completely transfer its insurance obligation to another market participant of comparable credit worthiness. In theory, this amount should be the same amount that another market participant of comparable credit worthiness would hypothetically charge in the market place, on a present value basis, to provide the same protection as of the balance sheet date. This fair value estimate of financial guarantees is presented on a net basis and includes direct and assumed contracts written, net of ceded reinsurance contracts. The fair value estimate of financial guarantees is computed by utilizing cash flows calculated at the policy level. For direct and assumed contracts, net cash flows for each policy includes future: (i) installment premium receipts, (ii) gross claim payments, (iii) subrogation receipts, and, (iv) at December 31, 2017, unpaid claims on claims presented and not yet paid for policies allocated to the Segregated Account, including Deferred Amounts and interest thereon. The timing of future claim payments of the Segregated Account was at the sole discretion of the Rehabilitator until the Segregated Account rehabilitation was concluded on February 12, 2018. For ceded reinsurance contracts, net cash flows for each policy includes future: (i) installment ceded premium payments, (ii) ceding commission receipts, (iii) ceded claim receipts, and (iv) ceded subrogation payments. For each assumed,or ceded reinsurance contract, the respective undiscounted cash flow components are aggregated to determine if we are in a net asset or net liability position. U.S. GAAP requires that the nonperformance risk of a financial liability be included in the estimation of fair value, which includes considering Ambac Assurance’s own credit risk. Accordingly, for each contract in a net liability position, we estimate the fair value using internally developed discount rates and market pricing that incorporate Ambac’s own credit risk and subsequently apply a profit margin. This profit margin represents what another market participant would require to assume the financial guarantee contracts. A profit margin was developed based on discussions with the third-party institutions with valuation expertise and discussions with industry participants. The discount rates used for contracts in a net liability position are derived from the rates implicit in the fair value of surplus notes and guaranteed securities with future cash flows that are highly dependent upon Ambac financial guarantee payments. For each contract in a net asset position, we estimate the fair value using a discount rate that is commensurate with a hypothetical buyer’s cost of capital. This methodology is based on management’s expectations of how a market participant would estimate net cash flows. We are aware of a number of factors that may cause such fair or exit value to differ, perhaps materially. For example, (i) since no financial guarantor with Ambac Assurance’s credit quality is writing or otherwise obtaining financial guarantee business (e.g. reinsurance or novation of policies from other insurers) we do not have access to observable pricing data points and (ii) at December 31, 2017, certain segments of Ambac's financial guarantees were allocated to the Segregated Account and timing of the payments of such liabilities were at the sole discretion of the Rehabilitator. Long-term Debt: Long-term debt includes Ambac Assurance senior surplus notes and junior surplus notes, notes outstanding to third parties arising from Ambac Assurance's Secured Borrowing transaction (redeemed in June 2018) and the Ambac Note and Tier 2 Notes issued in connection with the Rehabilitation Exit Transactions. The fair values of senior surplus notes, the Secured Borrowing notes, the Ambac Note and Tier 2 Notes are classified as Level 2. The fair value of junior surplus notes are classified as Level 3. Other Financial Assets and Liabilities: The fair values of Loans and Ambac’s equity interest in Ambac sponsored VIEs (included in Other assets) are estimated based upon internal valuation models and are classified as Level 3. Variable Interest Entity Assets and Liabilities: The financial assets and liabilities of VIEs consolidated under the Consolidation Topic of the ASC consist primarily of fixed income securities, loans, derivative and debt instruments and are generally carried at fair value. These consolidated VIEs are securitization entities which have liabilities and/or assets guaranteed by Ambac Assurance. The fair values of VIE debt instruments are determined using the same methodologies used to value Ambac’s fixed income securities in its investment portfolio as described above. VIE debt fair value is based on market prices received from dealer quotes or alternative pricing sources with reasonable levels of price transparency. Such quotes are considered Level 2 and generally consider a variety of factors, including recent trades of the same and similar securities. For those VIE debt instruments where quotes were not available, the debt instrument fair values are considered Level 3 and are based on internal discounted cash flow models. Comparable to the sensitivities of investments in fixed income securities described above, longer (shorter) expected maturities or higher (lower) yields used in the valuation model will, in isolation, result in decreases (increases) in fair value liability measurement for VIE debt. VIE debt instruments considered Level 3 include fixed rate, floating rate and zero coupon notes secured by various asset types, primarily European ABS. Information about the valuation inputs for the various VIE debt categories classified as Level 3 is as follows: European ABS transactions: The fair value of such obligations classified as Level 3 was $231,280 and $2,757,688 at September 30, 2018 and December 31, 2017 , respectively. Fair values were calculated by using a discounted cash flow approach. The discount rates used were based on the rates implied from the third party quoted values for comparable notes from the same securitization entity. Significant inputs for the valuation at September 30, 2018 and December 31, 2017 include the following weighted averages: September 30, 2018: December 31, 2017: a. Coupon rate: 2.47% a. Coupon rate: 0.40% b. Maturity: 17.89 years b. Maturity: 15.28 years c. Yield: 3.35% c. Yield: 4.82% VIE derivative asset and liability fair values are determined using valuation models. When specific derivative contractual terms are available and may be valued primarily by reference to interest rates, foreign exchange rates and yield curves that are observable and regularly quoted, the derivatives are valued using vendor-developed models. Other derivatives within the VIEs that include significant unobservable valuation inputs are valued using internally developed models. VIE derivative fair value balances at September 30, 2018 and December 31, 2017 were developed using vendor-developed models and do not use significant unobservable inputs. The fair value of VIE assets are obtained from market quotes when available. Typically VIE asset fair values are not readily available from market quotes and are estimated internally. The consolidated VIEs are securitization entities in which net cash flows from assets and derivatives (after adjusting for financial guarantor cash flows and other expenses) will be paid out to note holders or equity interests. Our valuation of VIE assets (fixed income securities or loans), therefore, are derived from the fair value of notes and derivatives, as described above, adjusted for the fair value of cash flows from Ambac’s financial guarantee. The fair value of financial guarantee cash flows include: (i) estimated future premiums discounted at a rate consistent with that implicit in the fair value of the VIE’s liabilities and (ii) internal estimates of future loss payments by Ambac disc |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 8. INVESTMENTS Ambac’s non-VIE invested assets are primarily comprised of fixed income securities classified as available-for-sale and equity interests in pooled investment funds. Such equity interests in the form of common stock or in-substance common stock are classified as trading securities and are reported within Other investments on the Consolidated Balance Sheets. Other investments also include Ambac's debt (at December 31, 2017 only) and equity interests in an unconsolidated trust created in connection with its sale of Segregated Account junior surplus notes on August 28, 2014. Fixed Income Securities: The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at September 30, 2018 and December 31, 2017 were as follows: Amortized Gross Gross Estimated Non-credit (1) September 30, 2018: Fixed income securities: Municipal obligations $ 858,255 $ 114,008 $ 1,799 $ 970,464 $ — Corporate obligations (2) 1,324,241 12,077 16,950 1,319,368 — Foreign obligations 34,045 220 258 34,007 — U.S. government obligations 93,574 413 1,780 92,207 Residential mortgage-backed securities 230,473 48,350 48 278,775 — Collateralized debt obligations 87,642 83 4 87,721 — Other asset-backed securities 373,202 66,280 723 438,759 — 3,001,432 241,431 21,562 3,221,301 — Short-term 562,111 5 56 562,060 — 3,563,543 241,436 21,618 3,783,361 — Fixed income securities pledged as collateral: U.S. government obligations 84,186 — — 84,186 — Total fixed income securities pledged as collateral 84,186 — — 84,186 — Total available-for-sale investments $ 3,647,729 $ 241,436 $ 21,618 $ 3,867,547 $ — December 31, 2017: Fixed income securities: Municipal obligations $ 845,778 $ 3,456 $ 69,400 $ 779,834 $ — Corporate obligations 858,774 6,772 5,471 860,075 — Foreign obligations 26,245 409 111 26,543 — U.S. government obligations 86,900 261 1,753 85,408 — Residential mortgage-backed securities 2,214,512 67,303 30,482 2,251,333 23,832 Collateralized debt obligations 50,754 283 — 51,037 — Other asset-backed securities 531,660 66,899 617 597,942 — 4,614,623 145,383 107,834 4,652,172 23,832 Short-term 557,476 3 209 557,270 — 5,172,099 145,386 108,043 5,209,442 23,832 Fixed income securities pledged as collateral: U.S. government obligations 99,719 — — 99,719 — Total fixed income securities pledged as collateral 99,719 — — 99,719 — Total available-for-sale investments $ 5,271,818 $ 145,386 $ 108,043 $ 5,309,161 $ 23,832 (1) Represents the amount of non-credit other-than-temporary impairment losses remaining in accumulated other comprehensive income on securities that also had a credit impairment. These losses are included in gross unrealized losses as of September 30, 2018 and December 31, 2017 . (2) Includes Ambac's holdings of the secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at September 30, 2018 , by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 724,270 $ 723,823 Due after one year through five years 1,139,043 1,142,011 Due after five years through ten years 288,308 283,434 Due after ten years 804,791 913,024 2,956,412 3,062,292 Residential mortgage-backed securities 230,473 278,775 Collateralized debt obligations 87,642 87,721 Other asset-backed securities 373,202 438,759 Total $ 3,647,729 $ 3,867,547 Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Unrealized Losses on Fixed Income Securities: The following table shows gross unrealized losses and fair values of Ambac’s available-for-sale investments, excluding VIE investments, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017 : Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross September 30, 2018: Fixed income securities: Municipal obligations $ 33,030 $ 346 $ 27,415 $ 1,453 $ 60,445 $ 1,799 Corporate obligations 418,960 11,456 105,164 5,494 524,124 16,950 Foreign obligations 16,769 91 6,332 167 23,101 258 U.S. government obligations 22,855 1,084 52,693 696 75,548 1,780 Residential mortgage-backed securities 1,035 48 — — 1,035 48 Collateralized debt obligations 2,996 4 — — 2,996 4 Other asset-backed securities 9,974 25 79,442 698 89,416 723 505,619 13,054 271,046 8,508 776,665 21,562 Short-term 201,107 56 — — 201,107 56 Total temporarily impaired securities $ 706,726 $ 13,110 $ 271,046 $ 8,508 $ 977,772 $ 21,618 Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2017: Fixed income securities: Municipal obligations $ 667,335 $ 68,578 $ 32,525 $ 822 $ 699,860 $ 69,400 Corporate obligations 292,028 3,377 87,272 2,094 379,300 5,471 Foreign obligations 8,122 81 1,700 30 9,822 111 U.S. government obligations 74,188 1,653 5,525 100 79,713 1,753 Residential mortgage-backed securities 668,524 12,524 418,617 17,958 1,087,141 30,482 Other asset-backed securities 26,655 58 88,023 559 114,678 617 1,736,852 86,271 633,662 21,563 2,370,514 107,834 Short-term 251,926 209 — — 251,926 209 Total temporarily impaired securities $ 1,988,778 $ 86,480 $ 633,662 $ 21,563 $ 2,622,440 $ 108,043 Management has determined that the unrealized losses reflected in the tables above are temporary in nature as of September 30, 2018 and December 31, 2017 based upon (i) no unexpected principal and interest payment defaults on these securities; (ii) analysis of the creditworthiness of the issuer and financial guarantor, as applicable, and analysis of projected defaults on the underlying collateral; (iii) management has no intent to sell these investments in debt securities; and (iv) it is not more likely than not that Ambac will be required to sell these debt securities before the anticipated recovery of its amortized cost basis. The assessment under (iv) is based on a comparison of future available liquidity from the investment portfolio against the projected net cash outflow from operating activities and debt service. For purposes of this assessment, available liquidity from the investment portfolio is comprised of the fair value of securities for which management has asserted its intent to sell, the fair value of other securities that are available for sale and in an unrealized gain position, trading securities plus the scheduled maturities and interest payments from the remaining securities in the portfolio. To the extent that securities that management intends to sell are in an unrealized loss position, they would have already been considered other-than-temporarily impaired with the amortized cost written down to fair value. Because the above-described assessment indicates that future available liquidity exceeds projected net cash outflow, it is not more likely than not that we would be required to sell securities in an unrealized loss position before the recovery of their amortized cost basis. In the liquidity assessment described above, principal payments on securities pledged as collateral are not considered to be available for other liquidity needs until the collateralized positions are projected to be settled. As of September 30, 2018 , for securities that have indications of possible other-than-temporary impairment but which management does not intend to sell and will not more likely than not be required to sell, management compared the present value of cash flows expected to be collected to the amortized cost basis of the securities to assess whether the amortized cost will be recovered. Cash flows were discounted at the effective interest rate implicit in the security at the date of acquisition (or Fresh Start Reporting Date of April 30, 2013 for securities purchased prior to that date) or for debt securities that are beneficial interests in securitized financial assets, at a rate equal to the current yield used to accrete the beneficial interest. For floating rate securities, future cash flows and the discount rate used were both adjusted to reflect changes in the index rate applicable to each security as of the evaluation date. Of the securities that were in a gross unrealized loss position at September 30, 2018 , $90,814 of the total fair value and $1,405 of the unrealized loss related to below investment grade and non-rated securities. Of the securities that were in a gross unrealized loss position at December 31, 2017 , $1,855,694 of the total fair value and $100,503 of the unrealized loss related to below investment grade and non-rated securities. Most of the securities in a gross unrealized loss position that are below investment grade or non-rated are guaranteed by, or are funded with collateral that is guaranteed by Ambac Assurance. Ambac’s assessment about whether a decline in value is other-than-temporary reflects management’s current judgment regarding facts and circumstances specific to a security and the factors noted above. If that judgment changes, Ambac may ultimately record a charge for other-than-temporary impairment in future periods. Corporate obligations The gross unrealized losses on corporate obligations as of September 30, 2018 are primarily the result of the increase in interest rates since purchase (or the Fresh Start Reporting Date of April 30, 2013 if owned as of that date). These securities are primarily fixed-rate securities with an investment grade credit rating. Management believes that the timely receipt of all principal and interest on these positions is probable . Realized Gains and Losses and Other-Than-Temporary Impairments: The following table details amounts included in net realized gains (losses) and other-than-temporary impairments included in earnings for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gross realized gains on securities $ 30,909 $ 14,430 $ 83,937 $ 25,374 Gross realized losses on securities (2,171 ) (4,932 ) (5,200 ) (16,160 ) Net foreign exchange (losses) gains 1,463 (3,348 ) 3,474 (3,780 ) Net realized gains (losses) $ 30,201 $ 6,150 $ 82,211 $ 5,434 Net other-than-temporary impairments (1) $ (266 ) $ (13,510 ) $ (1,579 ) $ (19,215 ) (1) Other-than-temporary impairments exclude impairment amounts recorded in other comprehensive income under ASC Paragraph 320-10-65-1, which comprise non-credit related amounts on securities that are credit impaired but which management does not intend to sell and it is not more likely than not that Ambac will be required to sell before recovery of the amortized cost basis. During the Segregated Account Rehabilitation Proceedings, changes in the estimated timing of claim payments resulted in adverse changes in projected cash flows on certain impaired Ambac insured securities. Such changes in estimated claim payments on Ambac insured securities contributed to net other-than-temporary impairments for the three and nine months ended September 30, 2017, presented in the table above. Future changes in our estimated liquidity needs could result in a determination that Ambac no longer has the ability to hold securities that are in an unrealized loss position, which could also result in additional other-than-temporary impairment charges. The following table presents a roll-forward of Ambac’s cumulative credit losses on debt securities held as of September 30, 2018 and 2017 for which a portion of an other-than-temporary impairment was recognized in other comprehensive income: Nine Months Ended September 30, 2018 2017 Balance, beginning of period $ 67,085 $ 52,070 Additions for credit impairments recognized on: Securities not previously impaired 226 3,274 Securities previously impaired 97 11,596 Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (53,222 ) — Balance, end of period $ 14,186 $ 66,940 Counterparty Collateral, Deposits with Regulators and Other Restrictions: Ambac routinely pledges and receives collateral related to certain transactions. Cash and securities held directly in Ambac’s investment portfolio with a fair value of $95,074 and $120,645 at September 30, 2018 and December 31, 2017 , respectively, were pledged to derivative counterparties. Ambac’s derivative counterparties have the right to re-pledge the investment securities and as such, these pledged securities are separately classified on the Consolidated Balance Sheets as “Fixed income securities pledged as collateral, at fair value”. There was no cash or securities received from other counterparties that were re-pledged by Ambac. Securities carried at $5,893 and $5,974 at September 30, 2018 and December 31, 2017 , respectively, were deposited with governmental authorities or designated custodian banks as required by laws affecting insurance companies. Securities with fair value of $0 and $346,212 at September 30, 2018 and December 31, 2017 , respectively, were held by a bankruptcy remote trust to collateralize and fund repayment of debt issued through a Secured Borrowing transaction that was terminated on June 22, 2018. These assets were held and the secured debt was issued by entities that qualified as VIEs and were consolidated in Ambac’s unaudited consolidated financial statements. Refer to Note 3. Variable Interest Entities for further details of the Secured Borrowing transaction. As further discussed in Note 1. Background and Business Description , Ambac LSNI, an unconsolidated VIE, issued Secured Notes in connection with the Rehabilitation Exit Transactions of February 12, 2018. Securities with a fair value of $221,676 at September 30, 2018 were pledged as collateral and as sources of funding to repay the Secured Notes. The securities may not be transferred or repledged by Ambac LSNI. Collateral may be sold to fund redemptions of the Secured Notes. Ambac Assurance also pledged for the benefit of the holders of Secured Notes (other than Ambac Assurance) the proceeds of the Secured Notes held by Ambac Assurance. Unsettled proceeds in the amount of $32,894 from the September 30, 2018 interest payment and partial redemption of Secured Notes held by Ambac Assurance were included in Receivable for securities on the Consolidated Balance Sheet at September 30, 2018. Such amount was received in October 2018. Guaranteed Securities: Ambac’s fixed income portfolio includes securities covered by guarantees issued by Ambac Assurance and other financial guarantors (“insured securities”). The published rating agency ratings on these securities reflect the higher of the financial strength rating of the financial guarantor or the rating of the underlying issuer. Rating agencies do not always publish separate underlying ratings (those ratings excluding the insurance by the financial guarantor). In the event these underlying ratings are not available from the rating agencies, Ambac will assign an internal rating. The following table represents the fair value, including the value of the financial guarantee, and weighted-average underlying rating, excluding the financial guarantee, of the insured securities at September 30, 2018 and December 31, 2017 , respectively: Municipal Corporate (3) Mortgage Total Weighted (1) September 30, 2018: Ambac Assurance Corporation (2) $ 915,525 $ 714,004 $ 612,587 $ 2,242,116 CC National Public Finance Guarantee Corporation 16,306 — — 16,306 BBB- Assured Guaranty Municipal Corporation 5,998 — — 5,998 BBB+ Total $ 937,829 $ 714,004 $ 612,587 $ 2,264,420 CC December 31, 2017: Ambac Assurance Corporation (2) $ 706,715 $ 32,660 $ 2,702,887 $ 3,442,262 CC National Public Finance Guarantee Corporation 20,733 — — 20,733 BBB- Assured Guaranty Municipal Corporation 5,998 — — 5,998 BBB+ Total $ 733,446 $ 32,660 $ 2,702,887 $ 3,468,993 CC (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Includes corporate obligations and asset-backed securities with a fair value of $141,373 and $170,280 at September 30, 2018 and December 31, 2017 , respectively, insured by Ambac UK. (3) 2018 includes Ambac's holdings of the secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. These secured notes are insured by Ambac Assurance. Equity Interests: Ambac's investment portfolio includes equity interests in various pooled investment funds, which are classified as trading. The fair value and additional information about such investments in pooled funds, by investment type, is summarized in the table below. Except as noted in the table, fair value reported is determined using NAV per share as a practical expedient. There are no unfunded commitments applicable to any of these investments for the periods disclosed. Fair Value Class of Funds September 30, December 31, Redemption Frequency Redemption Notice Period Real estate properties (1) $ 33,030 $ 33,154 quarterly 10 business days Diversified hedge fund strategies (2) — 53,054 semi-monthly 15 - 30 days Interest rate products (3) (7) 179,856 136,603 daily, weekly or monthly 0 - 30 days Illiquid investments (4) 66,922 67,787 quarterly 180 days Insurance-linked investments (5) 32,360 22,666 quarterly 90-120 days Equity market investments (6) (7) 60,605 53,675 daily 0 days Total equity investments in pooled funds $ 372,773 $ 366,939 (1) Investments consist of UK property to generate income and capital growth. (2) Investments seek diversified exposure to hedge fund core strategies to produce high risk-adjusted returns, with low long-term correlation to traditional markets and with targeted volatility levels. Funds may have the right to defer redemptions under certain circumstances. (3) This class of funds includes investments in a range of instruments including leveraged loans, CLOs, asset-backed securities and floating rate notes to generate income and capital appreciation. Funds with less frequent redemption periods limit redemptions to as little as 15% per period. Funds with a same day redemption notice period are redeemable only weekly, while funds that may be redeemed any business day have notice periods of 15-30 days. (4) This class seeks to obtain high long-term total return through investments with low liquidity and defined term, resulting in expected capital distributions to subscribers between 2020 and 2023. Redemptions were restricted prior to the expiration of the investment lock-up period in May 2018. (5) This class aims to provide returns from the insurance and reinsurance markets through investments in catastrophe bonds, life insurance and other insurance linked investments. Redemption periods are quarterly, subject to 90-day notice for January/July redemption dates and 120-day notice for April/October redemption dates with redemptions greater than 3.5% during the first five years following share issuance subject to redemption fees. (6) Investments represent a diversified exposure to global equity market returns through holdings of various regional market index funds. (7) Interest rate products include $2,914 at September 30, 2018 and $2,823 at December 31, 2017 and equity market investments include $60,605 at September 30, 2018 and $53,675 at December 31, 2017 that have readily determinable fair values priced through pricing vendors. Ambac also holds interests in an unconsolidated trust created in connection with the 2014 sale of Segregated Account junior surplus notes. The investment in its debt securities were accounted for as trading and the equity interest is accounted for under the equity method. Investment Income: Net investment income was comprised of the following for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Fixed income securities $ 49,372 $ 81,054 $ 219,222 $ 236,876 Short-term investments 2,395 1,986 7,671 4,124 Loans 185 187 552 361 Investment expense (1,967 ) (2,228 ) (5,167 ) (6,269 ) Securities available-for-sale and short-term 49,985 80,999 222,278 235,092 Other investments 8,347 6,178 12,956 18,804 Total net investment income $ 58,332 $ 87,177 $ 235,234 $ 253,896 Net investment income from Other investments primarily represents changes in fair value on securities classified as trading or under the fair value option plus income from Ambac's interests in an unconsolidated trust created in connection with its sale of Segregated Account junior surplus notes. 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net gains (losses) recognized during the period on trading securities $ 7,014 $ 4,919 $ 9,067 $ 15,130 Less: net gains (losses) recognized during the reporting period on trading securities sold during the period 612 5,024 (2,067 ) 8,140 Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 6,402 $ (105 ) $ 11,134 $ 6,990 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 9. DERIVATIVE INSTRUMENTS The following tables summarize the gross fair values of individual derivative instruments and the impact of legal rights of offset as reported in the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 : Gross Gross Net Amounts Gross Amount Net Amount September 30, 2018: Derivative Assets: Interest rate swaps 50,699 437 50,262 — 50,262 Total non-VIE derivative assets $ 50,699 $ 437 $ 50,262 $ — $ 50,262 Derivative Liabilities: Credit derivatives $ 1,175 $ — $ 1,175 $ — $ 1,175 Interest rate swaps 60,165 437 59,728 58,935 793 Futures contracts 428 — 428 428 — Total non-VIE derivative liabilities $ 61,768 $ 437 $ 61,331 $ 59,363 $ 1,968 Variable Interest Entities Derivative Assets: Currency swaps $ 61,543 $ — $ 61,543 $ — $ 61,543 Total VIE derivative assets $ 61,543 $ — $ 61,543 $ — $ 61,543 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,657,173 $ — $ 1,657,173 $ — $ 1,657,173 Total VIE derivative liabilities $ 1,657,173 $ — $ 1,657,173 $ — $ 1,657,173 December 31, 2017: Derivative Assets: Interest rate swaps $ 73,826 $ 627 $ 73,199 $ — $ 73,199 Total non-VIE derivative assets $ 73,826 $ 627 $ 73,199 $ — $ 73,199 Derivative Liabilities: Credit derivatives $ 566 $ — $ 566 $ — $ 566 Interest rate swaps 81,495 627 80,868 79,912 956 Futures contracts 1,348 — 1,348 1,348 — Total non-VIE derivative liabilities $ 83,409 $ 627 $ 82,782 $ 81,260 $ 1,522 Variable Interest Entities Derivative Assets: Currency swaps $ 54,877 $ — $ 54,877 $ — $ 54,877 Total VIE derivative assets $ 54,877 $ — $ 54,877 $ — $ 54,877 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 2,205,264 $ — $ 2,205,264 $ — $ 2,205,264 Total VIE derivative liabilities $ 2,205,264 $ — $ 2,205,264 $ — $ 2,205,264 Amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral are not offset against fair value amounts recognized for derivative instruments on the Consolidated Balance Sheets. The amounts representing the right to reclaim cash collateral and posted margin, recorded in “Other assets” were $10,888 and $20,926 as of September 30, 2018 and December 31, 2017 , respectively. There were no amounts held representing an obligation to return cash collateral as of September 30, 2018 and December 31, 2017 . The following tables summarize the location and amount of gains and losses of derivative contracts in the Consolidated Statements of Total Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017 : Location of Gain or (Loss) Recognized in Consolidated Statements of Total Comprehensive Income (Loss) Amount of Gain or (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Non-VIEs: Credit derivatives Net change in fair value of credit derivatives $ 250 $ 179 $ (313 ) $ 7,855 Non-VIE derivatives: Interest rate swaps Net gains (losses) on interest rate derivatives 3,157 3,394 9,320 40,643 Futures contracts Net gains (losses) on interest rate derivatives 14,176 590 42,699 (4,105 ) Total Non-VIE derivatives 17,333 3,984 52,019 36,538 Variable Interest Entities: Currency swaps Income (loss) on variable interest entities 1,140 (7,794 ) 6,666 (22,693 ) Interest rate swaps Income (loss) on variable interest entities 335,054 (24,851 ) 548,092 (10,321 ) Total Variable Interest Entities 336,194 (32,645 ) 554,758 (33,014 ) Total derivative contracts $ 353,777 $ (28,482 ) $ 606,464 $ 11,379 Credit Derivatives: Credit derivatives, which are privately negotiated contracts, provide the counterparty with credit protection against the occurrence of a specific event such as a payment default or bankruptcy relating to an underlying obligation. Upon a credit event, Ambac is required to make payments equal to the difference between the scheduled debt service payment and the actual payment made by the issuer. Credit derivatives issued are insured by Ambac Assurance. None of the outstanding credit derivative transactions at September 30, 2018 include ratings based collateral-posting triggers or otherwise require Ambac to post collateral regardless of Ambac’s ratings or the size of the mark to market exposure to Ambac. The portfolio of our credit derivatives were written on a “pay-as-you-go” basis. Similar to an insurance policy execution, pay-as-you-go provides that Ambac pays interest shortfalls on the referenced transaction as they are incurred on each scheduled payment date, but only pays principal shortfalls upon the earlier of (i) the date on which the assets designated to fund the referenced obligation have been disposed of and (ii) the legal final maturity date of the referenced obligation. Ambac maintains internal credit ratings on its guaranteed obligations, including credit derivative contracts, solely to indicate management’s view of the underlying credit quality of the guaranteed obligations. Independent rating agencies may have assigned different ratings on the credits in Ambac’s portfolio than Ambac’s internal ratings. The following table summarizes the gross principal notional outstanding for CDS contracts, by Ambac rating as of September 30, 2018 and December 31, 2017 : Ambac Rating September 30, December 31, 2017 AAA $ — $ — AA 158,500 175,765 A — — BBB (1) 145,150 150,125 Below investment grade (2) — — Total $ 303,650 $ 325,890 (1) BBB internal ratings reflect bonds which are of medium grade credit quality with adequate capacity to pay interest and repay principal. Certain protective elements and margins may weaken under adverse economic conditions and changing circumstances. These bonds are more likely than higher rated bonds to exhibit unreliable protection levels over all cycles. (2) Below investment grade internal ratings reflect bonds which are of speculative grade credit quality with the adequacy of future margin levels for payment of interest and repayment of principal potentially adversely affected by major ongoing uncertainties or exposure to adverse conditions. Interest Rate Derivatives: Ambac, through its subsidiary Ambac Financial Services (“AFS”), provides interest rate swaps to states, municipalities and their authorities, asset-backed issuers and other entities in connection with their financings. Additionally, AFS uses interest rate derivatives as an economic hedge against the effects of rising interest rates elsewhere in the Company, including on Ambac’s financial guarantee exposures. As of September 30, 2018 and December 31, 2017 the notional amounts of AFS’s derivatives are as follows: Notional Type of derivative September 30, December 31, Interest rate swaps—receive-fixed/pay-variable $ 372,586 $ 379,497 Interest rate swaps—pay-fixed/receive-variable 1,462,639 1,428,264 US Treasury futures contracts—short 1,740,000 1,655,000 Derivatives of Consolidated Variable Interest Entities Certain VIEs consolidated under the Consolidation Topic of the ASC entered into derivative contracts to meet specified purposes within the securitization structure. The notional for VIE derivatives outstanding as of September 30, 2018 and December 31, 2017 are as follows: Notional Type of VIE derivative September 30, December 31, Interest rate swaps—receive-fixed/pay-variable $ 1,431,360 $ 1,483,491 Interest rate swaps—pay-fixed/receive-variable 1,214,375 2,479,244 Currency swaps 359,907 394,541 Credit derivatives 10,487 12,100 Contingent Features in Derivatives Related to Ambac Credit Risk Ambac’s over-the-counter interest rate swaps are centrally cleared when eligible. Certain interest rate swaps remain with professional swap-dealer counterparties and certain front-end counterparties. These non-cleared swaps are generally executed under standardized derivative documents including collateral support and master netting agreements. Under these agreements, Ambac is required to post collateral in the event net unrealized losses exceed predetermined threshold levels. Additionally, given that Ambac Assurance is no longer rated by an independent rating agency, counterparties have the right to terminate the swap positions. As of September 30, 2018 and December 31, 2017 , the net liability fair value of derivative instruments with contingent features linked to Ambac’s own credit risk was $58,935 and $79,912 , respectively, related to which Ambac had posted cash and securities as collateral with a fair value of $84,926 and $111,391 , respectively. All such ratings-based contingent features have been triggered as requiring maximum collateral levels to be posted by Ambac while preserving counterparties’ rights to terminate the contracts. Assuming all such contracts terminated on September 30, 2018 |
Long-Term Debt (Notes)
Long-Term Debt (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 10. LONG-TERM DEBT The carrying value of long-term debt was as follows: September 30, December 31, Ambac Assurance: 5.1% surplus notes due 2020 $ 473,893 $ 668,667 5.1% junior surplus notes due 2020 249,597 249,036 Ambac Note 1,968,614 — Tier 2 Notes 245,667 — Secured borrowing — 73,993 Ambac Assurance long-term debt $ 2,937,771 $ 991,696 Variable Interest Entities long-term debt $ 5,585,860 $ 12,160,544 Surplus Notes Ambac Assurance surplus notes, with a par amount of $523,367 and $754,811 at September 30, 2018 and December 31, 2017 , respectively, are reported in long-term debt on the Consolidated Balance Sheet and have a scheduled maturity of June 7, 2020. On February 12, 2018, the Rehabilitation Exit Transactions were consummated, resulting in a $463,624 reduction of consolidated surplus note par outstanding. On August 3, 2018, in connection with the AMPS Exchange, Ambac Assurance issued surplus notes with a par amount of $212,740 . Also, during the nine months ended September 30, 2018, sales of surplus notes held by AFG and other transactions resulted in additional net issuance of $19,440 Ambac Assurance surplus note par value. Surplus notes outstanding are recorded at their fair value at the date of issuance. The discount on surplus notes is accreted into income using the effective interest method based on projected cash flows at the date of issuance. The weighted average imputed interest rate on surplus notes outstanding as of September 30, 2018 is 10.1% . All payments of principal and interest on these surplus notes are subject to the prior approval of the OCI. Annually from 2011 through 2018, OCI issued its disapproval of the requests of Ambac Assurance to pay the full interest on outstanding surplus notes on the annual scheduled interest payment date of June 7th. If the OCI does not approve the payment of interest on these surplus notes, such interest will accrue and compound annually until paid. In connection with the Rehabilitation Exit Transactions, Ambac Assurance made a one-time current interest payment on remaining surplus notes (other than junior surplus notes) of $13,501 , of which $2,618 was received by Ambac for surplus notes that it owned and that are considered extinguished for accounting purposes. Refer to Note 1. Background and Business Description for further discussion of both the Rehabilitation Exit Transactions and the AMPS Exchange. Junior Surplus Notes The junior surplus notes, with a par value of $367,512 and $370,237 at September 30, 2018 and December 31, 2017 , respectively, are reported in long-term debt on the Consolidated Balance Sheets and have a scheduled maturity of June 7, 2020, subject to the following restrictions. Pursuant to the Second Amended Plan of Rehabilitation, Ambac Assurance became the obligor under the junior surplus notes (previously issued by the Segregated Account) as of February 12, 2018. Principal and interest payments on these junior surplus notes cannot be made until all Ambac Assurance surplus notes (other than junior surplus notes) are paid in full and after all of Ambac Assurance's future and existing senior indebtedness, policy and other priority claims have been paid in full. All payments of principal and interest on these junior surplus notes are subject to the prior approval of the OCI. If the OCI does not approve the payment of interest on the junior surplus notes, such interest will accrue and compound annually until paid. No such approval has been sought or obtained to pay interest on junior surplus notes since their issuance. • Par value at September 30, 2018 and December 31, 2017 includes $17,512 and $20,237 , respectively, of junior surplus notes issued in connection with a settlement agreement (the “OSS Settlement Agreement”) entered into among Ambac, Ambac Assurance, the Segregated Account and One State Street, LLC (“OSS”) with respect to the termination of Ambac’s office lease with OSS. Part of these junior surplus notes ( $2,530 current par value at September 30, 2018 ) are reducing periodically as rent payments under the replacement lease (beginning in January 2016) are made by Ambac Assurance. Par value of these junior surplus notes was reduced by $2,725 and $2,881 during the nine months ended September 30, 2018 and 2017 , respectively, as rent payments were made by Ambac Assurance. These junior surplus notes were recorded at their fair value at the date of issuance. The discount on these notes are currently being accreted into income using the effective interest method at an imputed interest rate of 19.5% . • Par value at September 30, 2018 and December 31, 2017 includes $350,000 face amount of a junior surplus note originally issued to Ambac pursuant to Ambac's Chapter 11 Reorganization Plan in accordance with the Mediation Agreement dated September 21, 2011 among Ambac, Ambac Assurance, the Segregated Account, the Rehabilitator, the OCI and the Official Committee of Unsecured Creditors of Ambac, and that Ambac sold to a Trust on August 28, 2014. This junior surplus note was recorded at a discount to par based on its fair value on August 28, 2014. Ambac is accreting the discount on this junior surplus note into earnings using the effective interest method, based on an imputed interest rate of 8.4% . Ambac Note The Ambac Note, issued in connection with the Rehabilitation Exit Transactions on February 12, 2018, as more fully described in Note 1. Background and Business Description , with a par value of $1,968,614 at September 30, 2018 , is reported in long-term debt on the Consolidated Balance Sheets and has a legal maturity of February 12, 2023. Interest on the Ambac Note is payable quarterly (on the last day of each quarter beginning with June 30, 2018) at an annual rate of 3-month U.S. Dollar LIBOR + 5.00% , subject to a 1.00% LIBOR floor. During the nine months ended September 30, 2018, $185,738 par value of the Ambac Note was redeemed. The maturity date for the Ambac Note is the earlier of (x) February 12, 2023, and (y) if the Secured Notes are then outstanding, the date that is five business days prior to the date for which OCI has approved the repayment of the outstanding principal amount of the surplus notes (other than junior surplus notes) issued by Ambac Assurance. Promptly, and in any event within four business days after the receipt (whether directly or indirectly) of any representation and warranty subrogation recoveries, Ambac Assurance shall (i) apply an amount (the “Mandatory Redemption Amount”) equal to the lesser of (a) the amount of such representation and warranty subrogation recoveries and (b) all outstanding principal and accrued and unpaid interest on the Ambac Note to redeem the Ambac Note, in whole or in part, as applicable; provided, that any non-cash representation and warranty subrogation recoveries shall be deemed to be received upon the receipt of the applicable appraisal. The portion of the Ambac Note issued in connection with the exchange of surplus notes ("Ambac Note A") was accounted for as a debt modification since the creditors before and after the exchange remained the same and the change in terms was not considered substantial. A substantial change is considered to be a change in cash flows of equal to or greater than 10%, and because the change in cash flows was less than 10%, debt modification accounting is appropriate. Under debt modification accounting, Ambac Note A was recorded at a discount to par based on the carrying value of the surplus notes less the cash consideration paid. Furthermore, no gain or loss was recorded on the surplus note exchange and a new effective interest rate was established based on the cash flows of Ambac Note A. Any consideration paid directly related to the issuance of Ambac Note A was expensed as incurred. The portion of the Ambac Note issued in connection with the exchange of Deferred Amounts ("Ambac Note B") was recorded at fair value. The Deferred Amount exchange was accounted for as an extinguishment of the Deferred Amounts with the gain reflected as a benefit to loss and loss expenses. Any consideration paid directly related to the issuance of Ambac Note B was capitalized and amortized as part of the effective yield calculation. The aggregate discount on the entire Ambac Note (portions A and B) was accreted into earnings from the date of issuance through September 30, 2018 using the effective interest method, based on an imputed interest rate of 7.6% . As of September 30, 2018, the discount on the Ambac Note has been fully amortized. Tier 2 Notes The Tier 2 Notes, issued in connection with the Rehabilitation Exit Transactions on February 12, 2018, with a par value of $253,204 (including paid-in-kind interest of $13,204 ) at September 30, 2018 , are reported in long-term debt on the Consolidated Balance Sheets and have a legal maturity of February 12, 2055. Interest on the Tier 2 Notes is at an annual rate of 8.50% . Interest payments will not be made in cash on interest payment dates and shall be paid-in-kind and compounded on the last day of each calendar quarter, unless (i) funds are available to make such payments in cash as a result of receiving recoveries in respect of the representation and warranty subrogation recoveries in excess of $1,600,000 or (ii) interest is paid in cash on surplus notes (other than in connection with the Rehabilitation Exit Transactions). The Tier 2 Notes may not be redeemed or repaid prior to December 17, 2020 unless Ambac Assurance pays a make-whole premium. Thereafter, the Tier 2 Notes may be redeemed, in whole or in part, at the option of Ambac Assurance, at a price equal to 100% of the aggregate principal amount redeemed, plus accrued and unpaid interest, if any. The Tier 2 Notes were recorded at a discount to par as any consideration paid that was directly related to the issuance of the Tier 2 Notes was capitalized and is part of the effective yield calculation. Ambac is accreting the discount on the Tier 2 Notes into earnings using the effective interest method, based on an imputed interest rate of 9.9% . Secured Borrowing The Secured Borrowing, with a par value of $0 and $73,993 at September 30, 2018 and December 31, 2017 , respectively, is reported in long-term debt on the Consolidated Balance Sheets and had a legal maturity of July 25, 2047. Interest on the Secured Borrowing was payable monthly at an annual rate of one month U.S. Dollar LIBOR + 2.8% . On June 22, 2018, the Secured Borrowing was fully redeemed. Refer to Note 3. Variable Interest Entities for further discussion on the Secured Borrowing transaction. Variable Interest Entities, Long-term Debt The variable interest entity notes were issued by consolidated VIEs. Ambac is the primary beneficiary of the VIEs as a result of providing financial guarantees on certain of the the variable interest obligations. Consequently, Ambac has consolidated these variable interest entity notes and all other assets and liabilities of the VIEs. Ambac is not primarily liable for the debt obligations of these entities. Ambac would only be required to make payments on these debt obligations in the event that the issuer defaults on any principal or interest due and to the extent such obligations are guaranteed by Ambac. The total unpaid principal amount of outstanding long-term debt associated with VIEs consolidated as a result of the financial guarantee provided by Ambac was $4,831,033 and $9,387,884 as of September 30, 2018 and December 31, 2017 , respectively. The range of final maturity dates of the outstanding long-term debt associated with these VIEs is November 2018 to December 2047 as of September 30, 2018 and 2017 . As of September 30, 2018 and December 31, 2017 , the interest rates on these VIEs’ long-term debt ranged from 1.25% to 8.35% and from 0.96% to 8.35% , respectively. Final maturities of VIE long-term debt for each of the five years following September 30, 2018 are as follows: 2019 - $397,201 ; 2020 - $0 ; 2021 - $0 ; 2022 - $0 ; 2023 - $0 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES Ambac files a consolidated Federal income tax return with its subsidiaries. Ambac and its subsidiaries also file separate or combined income tax returns in various states, local and foreign jurisdictions. The following are the major jurisdictions in which Ambac and its subsidiaries operate and the earliest tax years subject to examination: Jurisdiction Tax Year United States 2010 New York State 2013 New York City 2013 United Kingdom 2015 Italy 2013 As of September 30, 2018 Ambac had U.S. federal ordinary net loss carryforwards totaling approximately $3,549,614 , which, if not utilized, will begin expiring in 2029 , and will fully expire in 2032 . The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at September 30, 2018 and December 31, 2017 are presented below: September 30, December 31, Deferred tax liabilities: Insurance intangible $ 158,704 $ 177,864 Debentures — 28,387 Unearned premiums and credit fees 50,386 51,485 Variable interest entities 17,265 22,817 Investments 51,704 28,798 Other 9,507 9,402 Total deferred tax liabilities 287,566 318,753 Deferred tax assets: Net operating loss and capital carryforward 745,419 775,917 Loss reserves 230,768 264,624 Debentures 24,219 — Compensation 7,935 5,585 Other 1,819 2,140 Subtotal deferred tax assets 1,010,160 1,048,266 Valuation allowance 750,131 763,172 Total deferred tax assets 260,029 285,094 Net deferred tax (liability) $ (27,537 ) $ (33,659 ) In accordance with the Income Tax Topic of the ASC, a valuation allowance is recognized if, based on the weight of available evidence, it is more-likely-than-not that some, or all, of the deferred tax asset will not be realized. As a result of the risks and uncertainties associated with future operating results, management believes it is more likely than not that the Company will not generate sufficient U.S. federal, state and/or local taxable income to recover the deferred tax operating assets and therefore maintains a full valuation allowance. In accordance with SEC issued guidance (SAB 118), which provides a one-year measurement period for companies to finalize the accounting for the impact of the TCJA, during the three months ended September 30, 2018 , Ambac concluded that the tax effect related to limitations on executive compensation resulted in a reduction of the deferred tax asset for Compensation of $423 . Ambac continues to record the income tax effect of provisions related to the TCJA's repatriation of Ambac UK's earnings and profits as an estimate. U.S. and foreign components of pre-tax income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. $ (39,832 ) $ (211,769 ) $ 271,014 $ (428,263 ) Foreign 19,884 26,303 23,655 150,929 Total $ (19,948 ) $ (185,466 ) $ 294,669 $ (277,334 ) The components of the provision for income taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Current taxes U. S. federal $ — $ (617 ) $ — $ — U.S. state and local 424 — 2,106 — Foreign 6,164 6,056 8,669 31,902 Current taxes 6,588 5,439 10,775 31,902 Deferred taxes Foreign (4,377 ) — (3,964 ) — Deferred taxes (4,377 ) — (3,964 ) — Provision for income taxes $ 2,211 $ 5,439 $ 6,811 $ 31,902 NOL Usage Pursuant to the intercompany tax sharing agreement, to the extent Ambac Assurance generates taxable income after September 30, 2011, which is offset with "Allocated NOLs" of $3,650,000 , it is obligated to make payments (“Tolling Payments”), subject to certain credits, to Ambac in accordance with the following NOL usage table, where the “Applicable Percentage” is applied to the aggregate amount of federal income tax liability that would have been paid if the Allocated NOLs were not available. Pursuant to the Closing Agreement between Ambac and the Internal Revenue Service ("IRS"), the IRS will receive 12.5% of Tier C and 17.5% of Tier D payments, if made. NOL Usage Table NOL Usage Tier Allocated NOLs Applicable Percentage A The first $479,000 15% B The next $1,057,000 after Tier A 40% C The next $1,057,000 after Tier B 10% D The next $1,057,000 after Tier C 15% As a result of positive taxable income at Ambac Assurance in 2017, Ambac has accrued approximately $30,496 in tax tolling payments. In May 2018, Ambac executed a waiver under the intercompany tax sharing agreement pursuant to which Ambac Assurance was relieved of the requirement to make this payment by June 1, 2018. Ambac has also agreed to continue to defer the tolling payment for the use of net operating losses by Ambac Assurance until such time as OCI consents to the payment. For the nine months ended September 30, 2018 , Ambac Assurance generated $131,201 of taxable income, resulting in additional accrued Tolling Payments, net of applicable credits, of $11,021 , which, assuming Ambac Assurance's full year 2018 taxable income does not change, will be paid to Ambac in 2019. Ambac Assurance's tax positions are subject to review by the OCI, which may lead to the adoption of positions that reduce the amount of tolling payments otherwise available to Ambac. As of September 30, 2018 , the remaining balance of the $3,549,614 NOL allocated to Ambac Assurance was $2,151,004 . As of September 30, 2018 Ambac's NOL was $1,398,610 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES The following commitments and contingencies provide an update of those discussed in Note 18: Commitments and Contingencies in the Notes to Consolidated Financial Statements included Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 2017 , and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K. The Segregated Account and Wisconsin Rehabilitation Proceeding On September 25, 2017, the Rehabilitator filed in the Rehabilitation Court a Motion to Further Amend The Plan of Rehabilitation Confirmed on January 24, 2011 To Facilitate An Exit from Rehabilitation. The evidentiary Confirmation Hearing was held on January 4, 2018, and continued on January 22, 2017. On January 22, 2018, the Rehabilitation Court entered an order (the "Confirmation Order") granting the Rehabilitator’s motion and confirming the Second Amended Plan of Rehabilitation, which became effective on February 12, 2018. Pursuant to the Confirmation Order, the Rehabilitation Court also ruled that, contrary to allegations made by certain parties to certain military housing litigations (the "MHPI Projects"), the Rehabilitation Court did not previously enter any order that could form the predicate for a claim of “Ambac Default” and confirmed Section 6.13 of the Second Amended Plan of Rehabilitation which, among other things, provided that any such default is deemed not to have existed or to be cured. On February 7, 2018, the Rehabilitator filed a motion with the Rehabilitation Court requesting injunctive relief against the MHPI Projects that would, among other things, enjoin the MHPI Projects from taking further actions or making further arguments, in any court or otherwise, in contravention of the Confirmation Order, the findings contained in the Confirmation Order or the provisions of the Second Amended Plan of Rehabilitation. On the same day, the Rehabilitation Court issued an order granting the Rehabilitator's February 7th motion (the “February 7 Order”). On February 26, 2018, the MHPI Projects filed a Notice of Motion and Motion for Reconsideration as well as a Notice of Motion and Motion for Expedited Hearing in the Rehabilitation Court, requesting reconsideration of the February 7 Order on an expedited basis (the “February 26 Motion”). Briefing on the motions was completed on April 5, 2018, and a hearing was scheduled for May 10, 2018. On March 2, 2018, the MHPI Projects noticed their appeal from the Confirmation Order and the February 7 Order. On March 6, 2018, the MHPI Projects filed in the Rehabilitation Court a Notice of Motion and Motion for Stay Pending Appeal. On March 9, 2018, the MHPI Projects filed in the Wisconsin Court of Appeals a Motion for Ex Parte Relief Pending Appeal and Relief Pending Appeal. After accelerated briefing, the Court of Appeals granted the MHPI Projects’ Motion for Relief Pending Appeal on March 13, 2018 and stayed enforcement of the February 7 Order and enforcement of Articles 6.8 and 6.13 of the Second Amended Plan of Rehabilitation, including but not limited to the extent that those Articles affect arguments that the MHPI Projects may make in any court (the “March 13 Order”). On May 4, 2018, the Rehabilitator filed in the Rehabilitation Court a Motion to Dissolve the Injunction dated February 7, 2018 and Amend Confirmation Order (the “May 4 Motion”) and a Motion for Final Decree and Order Discharging the Rehabilitator. In the May 4 Motion, the Rehabilitator requested the Rehabilitation Court to dissolve the injunction put in place under the February 7 Order and to amend the Confirmation Order, and thereby amend Section 6.13 of the Second Amended Plan of Rehabilitation, to limit the application of Section 6.13 to defaults or alleged defaults related to policies formerly allocated to the Segregated Account. The Rehabilitator also requested in the May 4, 2018 filings that the Rehabilitation Court remove the May 10, 2018 hearing from its calendar and enter a final decree and order closing the case. On May 10, 2018, the Rehabilitation Court set a briefing schedule with respect to the motions filed by OCI on May 4, 2018 and set a hearing on the motions for June 7, 2018. Upon stipulation of the parties, the hearing was adjourned. On June 21, 2018, Ambac Assurance and the MHPI Projects entered into a settlement agreement whereby the parties agreed, among other things, that the February 7 Order could be dissolved, the February 26 Motion and the May 4 Motion would each be withdrawn, and the parties would petition the Wisconsin Court of Appeals to vacate the March 13 Order and dismiss the appeal of the MHPI Projects. On June 22, 2018, the Rehabilitation Court entered an order to dissolve the February 7 Order, grant the withdrawal of the February 26 Motion and the May 4 Motion, and close the case. On June 25, 2018, the Rehabilitator, Ambac Assurance and the MHPI Projects filed with the Wisconsin Court of Appeals a Stipulation and Joint Motion to Vacate the March 13 Order. On July 3, 2018, the Wisconsin Court of Appeals vacated the March 13 Order and on July 6, 2018, the Court of Appeals dismissed the appeal of the MHPI Projects. Litigation Against Ambac Ambac Assurance has been defending several lawsuits in which borrowers brought declaratory judgment actions claiming, among other things, that Ambac Assurance’s claims for specific performance related to the construction and development of housing at various military bases to replace or cash-fund a debt-service-reserve surety bond, as required under the applicable loan documents (see Litigation Filed By Ambac), are time-barred or are barred by the doctrine of laches, that Ambac lacks standing on the basis that there has been an “Ambac Default,” and that Ambac is not entitled to specific performance pursuant to the terms of the loan documents. The parties to the cases described below have reached a settlement resolving all litigation between and among them (except for the RICO action described below). In connection with the settlement of these cases, related cases brought by Ambac Assurance seeking specific performance related to the construction and development of housing at various military bases to replace or cash-fund a debt-service-reserve surety bond, and the litigation involving the MHPI Projects in Wisconsin relating to orders issued by the Rehabilitation Court with respect to the conclusion of the rehabilitation of the Segregated Account of Ambac Assurance, Ambac Assurance has paid the military housing project companies for their costs and other amounts. Such settlement resulted in a net loss for Ambac of approximately $20,413 for the second quarter of 2018. • Meade Communities LLC v. Ambac Assurance Corporation (Circuit Court, Anne Arundel County, Maryland, Case No. C-02-CV-15-003745). On January 22, 2018, the court granted Meade's motion for summary judgment finding that Ambac Assurance lacked standing on the basis that there had been an "Ambac Default" by virtue of certain orders of the Rehabilitation Court. On January 26, 2018, Ambac Assurance filed a Motion to Alter or Amend Judgment with the Maryland Court arguing that the Rehabilitation Court's January 22 Confirmation Order constituted grounds for altering the judgment to award summary judgment on the "Ambac Default" issue for Ambac Assurance. On February 7, 2018, the Rehabilitation Court entered a further order enjoining Meade from continuing to argue that an Ambac Default occurred by virtue of the Rehabilitation Court's prior orders and requiring Meade to file that order with the Maryland Court. On February 8, 2018, Meade complied and filed the January 22nd and February 7th Rehabilitation Court orders with the Maryland court. On February 12, 2018, the Maryland Court granted Ambac Assurance's motion to stay enforcement of the Court's January 22nd amended order concerning "Ambac Default" and granting Meade an extension until March 14, 2018 to oppose Ambac Assurance's Motion to Alter or Amend Judgment. On March 14, 2018, Meade filed its opposition brief. On May 10, 2018, the Maryland Court denied Ambac Assurance’s January 26, 2018 Motion to Alter or Amend Judgment and lifted the February 12, 2018 stay order. Ambac Assurance filed a notice of appeal on May 16, 2018 and, concurrently therewith, filed a Motion to Set Supersedeas Bond Amount pending the appeal. Plaintiff opposed such motion on May 31, 2018 and the court denied Ambac Assurance’s motion on June 15, 2018. Pursuant to an agreement to settle the case, Ambac agreed to dismiss its appeals and on July 9, 2018, the parties filed a consent motion to vacate the Circuit Court's prior orders, which was granted. • Monterey Bay Military Housing LLC and Monterey Bay Land LLC v. Ambac Assurance Corporation (Superior Court, Monterey County, California, Case No. 15CV000599). On June 19, 2017, the court issued a preliminary order that partially granted Monterey Bay's motion for summary judgment and ruled that the California statute of limitations had run on Ambac Assurance's claim for specific performance, subject to Ambac Assurance’s defense of equitable tolling. The court also partially granted Ambac Assurance's motion for summary judgment on certain of Monterey Bay’s declaratory judgment claims. On June 23, 2017, Ambac Assurance withdrew its defense of equitable tolling. The parties agreed that the court’s summary judgment ruling on the statute of limitations was sufficient to end the case at the trial court level and submitted final orders to the court for approval. The court signed the final orders on July 13, 2017. On September 14, 2017, Ambac Assurance filed a notice of appeal. On April 19, 2018, the court entered an order awarding plaintiffs an amount representing a portion of their fees and costs incurred. On May 1, 2018, Ambac Assurance filed a notice of appeal. Pursuant to an agreement to settle the case, Ambac Assurance filed a motion to dismiss its appeal, which was granted on July 3, 2018. Monterey Bay Military Housing, LLC, et al. v. Ambac Assurance Corporation, et al. (United States District Court, Northern District of California, San Jose Division, Case No. 17-cv-04992-BLF, filed August 28, 2017). On November 13, 2017, Ambac Assurance and the other defendants filed motions to dismiss the first amended complaint asserting, among other claims, civil claims based on the Racketeer Influenced and Corrupt Organizations Act (“RICO”), which Plaintiffs opposed. Oral argument was held on April 12, 2018. On July 17, 2018, the court granted Ambac Assurance’s and the other defendants’ motion to dismiss the first amended complaint without prejudice. Plaintiffs’ deadline to file a second amended complaint is currently November 16, 2018, but Plaintiffs have requested an extension. It is not reasonably possible to predict whether additional suits will be filed or whether additional inquiries or requests for information will be made, and it is also not possible to predict the outcome of litigation, inquiries or requests for information. It is possible that there could be unfavorable outcomes in these or other proceedings. Legal accruals for litigation against Ambac which are probable and reasonably estimable, and management's estimated range of loss for such matters, are not material to the operating results or financial position of the Company. For the litigation matters Ambac is defending that do not meet the “probable and reasonably estimable” accrual threshold and where no loss estimates have been provided above, management is unable to make a meaningful estimate of the amount or range of loss that could result from unfavorable outcomes. Under some circumstances, adverse results in any such proceedings could be material to our business, operations, financial position, profitability or cash flows. The Company believes that it has substantial defenses to the claims above and, to the extent that these actions proceed, the Company intends to defend itself vigorously; however, the Company is not able to predict the outcomes of these actions. Litigation Filed or Joined by Ambac In the ordinary course of their businesses, certain of Ambac’s subsidiaries assert claims in legal proceedings against third parties to recover losses already paid and/or mitigate future losses. The amounts recovered and/or losses avoided which may result from these proceedings is uncertain, although recoveries and/or losses avoided in any one or more of these proceedings during any quarter or fiscal year could be material to Ambac’s results of operations in that quarter or fiscal year. Student Loans Exposure: CFPB v. Nat’l Collegiate Master Student Loan Trust (United States District Court, District of Delaware, Case No. 1:17-cv-01323, filed September 18, 2017). On September 20, 2018, the case was reassigned to a new judge, who invited additional letter submissions from the parties. Ambac Assurance submitted a letter on September 28, 2018, reiterating its request to intervene in the action. The CFPB also submitted a letter, which asserted that the court can resolve the outstanding intervention motions on the papers. In additional submissions, the CFPB and a firm purporting to represent the Defendant Trusts argued that the court should resolve a dispute relating to the payment of counsel fees out of Trust assets, so that the Trusts can secure representation for the case. On October 19, 2018, the court granted Ambac’s motion to intervene. On November 1, 2018 the court issued an oral order directing the parties to file by November 16, 2018 a joint proposed briefing schedule regarding the CFPB’s motion for entry of the proposed consent judgment, including a proposal for any discovery the parties wish to take in order to respond to the motion. Nat’l Collegiate Master Student Loan Trust v. Pa. Higher Education Assistance Agency (PHEAA) (Delaware Court of Chancery, C.A. No. 12111-VCS, filed March 21, 2016). On January 12, 2018, Plaintiffs filed a motion for injunctive or declaratory relief requiring Wilmington Trust Company, as Owner Trustee, and GSS Data Services, Inc., as Administrator, to resume processing for payment bills submitted by lawyers purporting to act on the Trusts’ behalf. Oppositions to Plaintiffs’ motion were filed by Ambac and others on March 1, 2018. Plaintiffs filed a reply brief in further support of their motion on March 16, 2018. At a hearing on April 3, 2018, the court denied Plaintiffs’ motion without prejudice. The court later entered an order memorializing its oral ruling on April 16, 2018. The court also granted Ambac’s motion to intervene on April 10, 2018 and Ambac filed its complaint in intervention on April 16, 2018. On June 15, 2018, the Owner Trustee filed a stipulation and proposed order addressing the selection of a Successor Owner Trustee. Among other provisions, the stipulation calls for the appointment of a Special Master to adjudicate disputes regarding "Owner Instructions," and raises the annual expense caps that apply to the Owner Trustee and Indenture Trustee. The stipulation was negotiated and agreed to by the Owner Trustee, the Indenture Trustee, the Administrator, Ambac Assurance, and various noteholders. Plaintiffs withdrew from the negotiations and later opposed the stipulation. The Owner Trustee proposed that the court schedule a hearing to consider any objections to the stipulation submitted by noteholders. The court held a hearing on September 21, 2018, and heard arguments regarding the stipulation at that time. The court ruled that a Special Master would be appointed, and invited the parties to submit a revised stipulation and proposed order to conform to the court’s rulings at the hearing. The Owner Trustee and Plaintiffs each submitted competing draft orders on September 28, 2018. Puerto Rico: Bank of New York Mellon v. COFINA, et al. (United States District Court, District of Puerto Rico, No. 1:17-ap-00133, filed May 16, 2017). On November 6, 2017, a number of parties, including Ambac Assurance, filed motions for summary judgment; Ambac Assurance argued that the Commonwealth’s and COFINA’s pre-petition actions constituted defaults under the COFINA bond resolution, and these defaults have ripened into events of default resulting in the senior COFINA bondholders’ absolute priority to the funds in BNY’s possession. Briefing on the summary judgment motions was completed on January 5, 2018. On September 27, 2018, in light of the pending agreement in principle between the Agent for COFINA and the Agent for the Commonwealth in adversary proceeding no. 1:17-ap-00257 (the "Commonwealth-COFINA Dispute" discussed below), the Court terminated the pending motions for summary judgment without prejudice. On October 19, 2018, the Oversight Board filed (i) a disclosure statement and plan of adjustment in the COFINA Title III case incorporating a resolution of the Commonwealth-COFINA Dispute, and (ii) a motion under Bankruptcy Rule 9019 in the Commonwealth Title III case for approval of the settlement of the Commonwealth-COFINA Dispute. The Commonwealth Agent is not presently a party to the settlement of the Commonwealth-COFINA Dispute incorporated into the COFINA disclosure statement and plan of adjustment and the Commonwealth Rule 9019 motion. Peaje Investments LLC v. Puerto Rico Highways and Transportation Authority, et al. (United States District Court, District of Puerto Rico, No. 1:17-ap-00151, filed May 31, 2017). On June 15, 2017, Ambac Assurance moved to intervene in an adversary proceeding brought by Peaje Investments (Peaje), a holder of 1968 Bonds issued by PRHTA, against PRHTA. On May 31, 2017, Peaje filed a complaint seeking relief with respect to its ownership of the 1968 Bonds, including a declaration that the toll road revenues pledged to the 1968 Bonds are “special revenues” under Section 922 of the Bankruptcy Code, an injunction preventing the diversion of toll revenues to the Commonwealth and ordering the application of the toll revenues to the 1968 Bonds, and various declarations and injunctions related thereto. Peaje also filed a motion for a temporary restraining order and preliminary injunction on the same day, seeking to enjoin PRHTA from diverting the toll revenues to the Commonwealth. A hearing on the motion for a temporary restraining order was held on June 5, 2017, at which time Peaje withdrew the motion for a temporary restraining order. In its motion to intervene, Ambac Assurance argued that issues in this case will have a significant impact on Ambac Assurance’s own interests with respect to PRHTA bonds. On July 21, 2017, the District Court denied Ambac Assurance's motion to intervene. On September 8, 2017, the District Court denied Peaje’s motion for a preliminary injunction, finding that Peaje had not demonstrated either (i) a likelihood of success on the merits of its underlying claim that the 1968 bonds are secured by a statutory lien, or (ii) that it would be irreparably harmed in the absence of a preliminary injunction. Peaje has appealed this denial of the preliminary injunction to the U.S. Court of Appeals for the First Circuit; the First Circuit held argument on the appeal on June 5, 2018. On August 8, 2018, the First Circuit affirmed the District Court’s ruling that Peaje does not have a statutory lien on toll revenues pledged for repayment of the 1968 PRHTA bonds. The First Circuit vacated the District Court’s rulings that Peaje failed to establish irreparable harm and that defendants had established adequate protection of Peaje’s interests, remanding these rulings to the District Court for further consideration in light of the First Circuit’s determination that Peaje does not hold a statutory lien. Ambac Assurance Corporation v. Puerto Rico, et al. (United States District Court, District of Puerto Rico, No. 1:17-ap-00159, filed June 8, 2017). On July 28, 2017, Defendants moved to dismiss Ambac Assurance’s complaint; briefing on the motion to dismiss concluded on October 31, 2017, and oral argument on the motion was held on November 21, 2017. On February 27, 2018, the court granted Defendants’ motion to dismiss. As to certain of the claims, the District Court found that it lacks subject matter jurisdiction (i) to the extent the claims seek to invalidate the certification of the FEGP and prohibit certain actions under PROMESA due to alleged non-compliance with PROMESA requirements that are predicates to certification of the FEGP, or (ii) to the extent Ambac Assurance sought a determination of its lien rights over the PRHTA reserve accounts. As to other claims, the court found that Ambac Assurance had failed to state a claim upon which the District Court could grant relief, including that (i) as to constitutional issues, Ambac Assurance had failed to plead facts sufficient to allow the court to draw a reasonable inference that the Moratorium Legislation, Moratorium Orders, and Fiscal Plan Compliance Act were “unreasonable or unnecessary to effectuate an important government purpose” and had failed to allege plausibly that the FEGP is an exercise of Commonwealth legislative power, (ii) Ambac Assurance had failed to plead facts sufficient to show that the Moratorium Legislation and Moratorium Orders prohibited the payment of principal and interest or purported to bind creditors to any reduction of the outstanding obligations and therefore would have been preempted by PROMESA under PROMESA Section 303(1), and Ambac Assurance failed to plead plausible, ripe claims that the Moratorium Orders are unlawful under PROMESA section 303(3), (iii) the automatic stay is currently in effect and renders unavailable any cause of action pursuant to Section 407 of PROMESA, including claims by PRHTA bondholders that PRHTA should be compensated for any pledged special revenues transferred away from it in violation of applicable law, (iv) the court is not required or empowered under PROMESA or the Bankruptcy Code to order the payment of pledged special revenues to the PRHTA bondholders, and (v) Ambac Assurance had failed to plead facts sufficient to show that the PRHTA reserve accounts are the property of the bondholders. Finally, the District Court held that PROMESA section 305 prevented it from ordering any relief on Ambac’s claim that the PRHTA reserve accounts are held in trust for bondholders. On March 9, 2018, Ambac Assurance appealed this ruling to the First Circuit. Briefing is complete and oral argument will be held on December 5, 2018. Official Committee of Unsecured Creditors v. Whyte (United States District Court, District of Puerto Rico, No. 1:17-ap-00257, filed September 8, 2017) (the Commonwealth-COFINA Dispute). Motions for summary judgment were filed on February 21, 2018; a hearing on the summary judgment motions was held on April 10, 2018. On February 26, 2018, the COFINA Agent moved to certify questions of law to the Supreme Court of Puerto Rico regarding COFINA’s constitutionality under the Puerto Rico Constitution. On April 3, 2018, Ambac Assurance filed an opposition to the motion to certify and, in the alternative, a cross-motion to certify alternative questions to the Supreme Court of Puerto Rico. Briefing on the motion to certify concluded on April 18, 2018; a hearing on the motion to certify was held on May 9, 2018. On May 24, 2018, the District Court denied the motion to certify questions of law to the Supreme Court of Puerto Rico. On June 5, 2018, the Commonwealth Agent and COFINA Agent filed a joint motion asking the court to hold its decision on the summary judgment motions in abeyance for 60 days on account of an agreement in principle between the Agents to settle the Commonwealth-COFINA dispute, which the court granted. Additional joint motions to hold the summary judgment motions in abeyance were filed on August 2, 2018 and September 6, 2018. On September 27, 2018, in light of the pending agreement in principle, the Court terminated the pending motions for summary judgment without prejudice. On October 19, 2018, the Oversight Board filed (i) a disclosure statement and plan of adjustment in the COFINA Title III case incorporating a resolution of the Commonwealth-COFINA Dispute, and (ii) a motion under Bankruptcy Rule 9019 in the Commonwealth Title III case for approval of the settlement of the Commonwealth-COFINA Dispute. The Commonwealth Agent is not presently a party to the settlement of the Commonwealth-COFINA Dispute incorporated into the COFINA disclosure statement and plan of adjustment and the Commonwealth Rule 9019 motion. On October 30, 2018, the Commonwealth Agent filed a statement in the Commonwealth Title III case indicating its intent to challenge the Oversight Board's authority to propose a settlement of the Commonwealth-COFINA Dispute for the District Court's approval. Military Housing: Ambac Assurance filed various lawsuits seeking specific performance of obligations of borrowers on loans related to the construction and development of housing at various military bases to replace or cash-fund a debt-service-reserve surety bond provided by Ambac Assurance, as required under the applicable loan documents. The parties to these cases reached a settlement resolving all claims and counterclaims between and among them with respect to the debt-service-reserve surety bonds and related issues (other than the aforementioned RICO action), which have resulted in agreed dismissals of the following cases with prejudice: • Ambac Assurance Corporation v. Riley Communities, LLC (District Court, Shawnee County Kansas, No. 2016-CV-00026,filed September 29, 2017) . The parties filed a joint motion stipulating to the dismissal of the matter with prejudice, which was granted by the Court on July 6, 2018. • Ambac Assurance Corporation v. Fort Leavenworth Frontier Heritage Communities, II, LLC (U.S. District Court, District of Kansas, Index No. 15-CV-9596, filed November 19, 2015) . The parties filed a joint motion stipulating to the dismissal of the matter with prejudice, which was granted by the Court on July 6, 2018. • Ambac Assurance Corporation v. Carlisle/ Picatinny Family Housing Limited Partnership (Court of Common Pleas, Cumberland County, Pennsylvania, No. 2015-6348, filed January 11, 2016) . The parties filed a Joint Praecipe to Settle and Discontinue, which ended the matter effective July 3, 2018. • Ambac Assurance Corporation v. Fort Lee Commonwealth Communities, LLC (Circuit Court, Roanoke City, Virginia, No. CL16000072-00) . The parties filed a joint motion stipulating to the dismissal of the matter with prejudice, which was granted by the Court on July 9, 2018. • Ambac Assurance Corporation v. Fort Bliss/White Sands Missile Range Housing LP (District Court, El Paso County, Texas, Cause No. 2016DCV0094, filed January 8, 2016) . The parties filed an agreed motion to dismiss all claims between and among the parties with prejudice, which was granted by the Court on July 5, 2018. RMBS Litigation: In connection with Ambac Assurance’s efforts to seek redress for breaches of representations and warranties and fraud related to the information provided by both the underwriters and the sponsors of various residential mortgage-backed securities transactions and for failure to comply with the obligation by the sponsors to repurchase ineligible loans, Ambac Assurance has filed various lawsuits, including the following: • Ambac Assurance Corporation and The Segregated Account of Ambac Assurance Corporation v. Countrywide Securities Corp., Countrywide Financial Corp. (a.k.a. Bank of America Home Loans) and Bank of America Corp. (Supreme Court of the State of New York, County of New York, Case No. 651612/2010, filed on September 28, 2010). On May 1, 2015, Ambac Assurance filed motions for partial summary judgment, which defendants opposed. Defendants also each filed motions for summary judgment, which Ambac Assurance opposed. On October 27, 2015, the court issued a decision dated October 22, 2015 granting in part and denying in part the parties’ respective summary judgment motions regarding Ambac Assurance’s claims against Countrywide (primary-liability claims), and issued a second decision granting Ambac Assurance’s partial motion for summary judgment and denying Bank of America’s motion for summary judgment regarding Ambac Assurance’s secondary-liability claims against Bank of America. Ambac Assurance and Countrywide filed notices of appeal of the October 22, 2015 decision relating to primary liability and Bank of America filed a notice of appeal of the October 27, 2015 decision relating to its secondary-liability to the New York Appellate Division, First Department. On May 16, 2017, the First Department issued rulings in both appeals, reversing a number of rulings that the trial court had made and affirming other rulings. On June 15, 2017, Ambac Assurance filed a motion with the First Department for leave to appeal certain rulings in the May 16, 2017 decision to the Court of Appeals, which Countrywide opposed. On July 25, 2017 the First Department granted Ambac Assurance’s motion. The Court of Appeals heard oral argument on June 6, 2018. On June 27, 2018, the Court of Appeals denied Ambac Assurance’s appeal and affirmed the rulings of the First Department. Trial is currently scheduled to commence on February 25, 2019. Defendants filed certain pre-trial motions on August 22, 2018 seeking to (1) strike Ambac’s jury demand for its fraudulent inducement claim; (2) strike Ambac’s jury demand for its successor liability claim; (3) bifurcate the trials for Ambac’s primary and successor liability claims; (4) limit the loans for which Ambac may seek to recover damages; and (5) preclude Ambac from using sampling to prove liability or damages for breach of contract. Ambac opposed these motions on September 5, 2019 and the court heard oral argument on September 27, 2018. On October 2, 2018 Countrywide moved to dismiss Ambac’s fraudulent inducement claim as duplicative of its contract claim. Ambac opposed this motion and the court heard oral argument on November 5, 2018. The court has not issued any decisions on the pending motions. • The Segregated Account of Ambac Assurance Corporation and Ambac Assurance Corporation v. Countrywide Home Loans, Inc. (Wisconsin Circuit Court for Dane County, Case No 14 CV 3511, filed on December 30, 2014). On June 23, 2016, the Wisconsin Court of Appeals reversed the trial court’s prior dismissal of the complaint, and on October 11, 2016, the Wisconsin Supreme Court granted Countrywide’s petition for review of the June 23 decision by the Wisconsin Court of Appeals. The Wisconsin Supreme Court appeal was argued on February 28, 2017. On June 30, 2017, the Wisconsin Supreme Court reversed the decision of the Wisconsin Court of Appeals and remanded the case to the Wisconsin Court of Appeals for further proceedings. On December 14, 2017, the Wisconsin Court of Appeals affirmed the trial court’s July 2, 2015 decision dismissing the case for lack of personal jurisdiction. On January 16, 2018, Ambac Assurance filed a petition with the Supreme Court of Wisconsin for review of the December 14, 2017 decision. On January 30, 2018, Countrywide opposed the petition. On March 13, 2018, the Wisconsin Supreme Court denied Ambac Assurance’s petition for review, ending the Wisconsin Action. In the 2015 New York Action, on September 20, 2016, the New York Court granted Ambac Assurance’s motion to stay, holding Countrywide’s motion to dismiss the complaint in abeyance pending resolution of the Wisconsin Action. On March 30, 2018, the court vacated its stay of the 2015 New York Action, and the parties submitted supplemental letter briefs on April 11, 2018 addressing newly-issued authority relevant to Countrywide’s pending motion to dismiss, which was restored to the calendar. • Ambac Assurance Corporation and The Segregated Account of Ambac Assurance Corporation v. U.S. Bank National Association (United States District Court, Southern District of New York, Docket No. 17-cv-00446 (SHS)), filed January 20, 2017, (the “2017 S.D.N.Y. Action”)); Ambac Assurance Corporation v. U.S. Bank National Association (United States District Court, Southern District of New York, Docket No. 18-cv-5182 (LGS), filed June 8, 2018 (the “2018 S.D.N.Y. Action”)); In the matter of HarborView Mortgage Loan Trust 2005-10 (Minnesota state court, Docket No. 27-TR-CV-17-32 (the “Minnesota Action”)). These three actions relate to U.S. Bank National Association’s (“U.S. Bank) proposed settlement of claims related to the Harborview Mortgage Loan Trust, Series 2005-10. On December 6, 2017, in the 2017 S.D.N.Y. Action, the court granted U.S. Bank’s motion for recons |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for annual periods. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2017 . The accompanying consolidated financial statements have not been audited by an independent registered public accounting firm in accordance with the standards of the Public Company Accounting Oversight Board (U.S.), but in the opinion of management such financial statements include all adjustments necessary for the fair presentation of the Company’s consolidated financial position and results of operations. The results of operations for the three and nine months ended September 30, 2018 may not be indicative of the results that may be expected for the year ending December 31, 2018 . The December 31, 2017 consolidated balance sheet was derived from audited financial statements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars in accordance with the Foreign Currency Matters Topic of the ASC. The functional currencies of Ambac's subsidiaries are the local currencies of the country where the respective subsidiaries are based, which are also the primary operating environments in which the subsidiaries operate. Foreign currency translation : Functional currency assets and liabilities of Ambac’s foreign subsidiaries are translated into U.S. dollars using exchange rates in effect at the balance sheet dates and the related translation adjustments, net of deferred taxes, are included as a component of Accumulated Other Comprehensive Income in Stockholders' Equity. Functional currency operating results of foreign subsidiaries are translated using average exchange rates. Foreign currency transactions : The impact of non-functional currency transactions and the remeasurement of non-functional currency assets and liabilities into the respective subsidiaries' functional currency (collectively "foreign currency transactions gains/(losses)") are $(5,211) and $19,142 for the nine months ended September 30, 2018 and 2017 , of which $(9,549) and $26,556 relate to the remeasurement of loss reserves, classified in Loss and loss expenses, respectively. Foreign currency transactions gains/(losses) are primarily the result of remeasuring Ambac UK's assets and liabilities denominated in currencies other than its functional currency, primarily the U.S. dollar and the Euro. |
Reclassifications | Reclassifications:Reclassifications have been made to prior years' amounts to conform to the current year's presentation. Such reclassifications are primarily the result of certain new standards discussed in the Recently Adopted Accounting Standards section below. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards: Effective January 1, 2018, Ambac adopted the following accounting standards: Stock Compensation--Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting . The ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this ASU. The adoption of this ASU did not have an impact on Ambac's financial statements. Net Periodic Pension and Postretirement Costs In March 2017, the FASB issued ASU 2017-07, Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The objective of the ASU is to increase transparency in the reporting of net pension cost and net postretirement cost (collectively "net benefit cost"). The ASU requires that the service cost component of net benefit cost be reported on the same line item as other compensation costs arising from services rendered by employees. It further requires that the other components of net benefit costs (i.e. interest costs, amortization of prior service cost, etc.) be presented separately from the service cost component and outside the subtotal of income from operations, if one is presented. Prior to adoption of this ASU, Ambac reported all postretirement costs in Operating expenses on the Consolidated Statements of Total Comprehensive Income (Loss). Adoption of this ASU resulted in a reclassification of other non-service related amounts from Operating expenses to Other income (expense) resulting in an increase to both Operating expenses and Other income (expense) of $283 and $680 for the three and nine months ended September 30, 2017 . Restricted Cash In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash . Prior to the effective date of this ASU, GAAP did not include specific guidance on the cash flow classification and presentation of changes in restricted cash and restricted cash flow equivalents other than limited guidance for non-for-profit entities. This ASU is intended to resolve diversity in practice in the classification of changes in restricted cash and restricted cash flow equivalents on the statement of cash flows. The ASU requires that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning and ending period amounts on the statement of cash flows, along with certain disclosures. Adoption of this ASU resulted in the inclusion of restricted cash activity related to consolidated VIEs on the Consolidated Statements of Cash Flows for all periods presented. Also refer to the Supplemental Disclosure of Cash Flow Information section above for the reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Statement of Position that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows. Income Taxes In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory . Prior to the effective date of this ASU, GAAP prohibited the recognition of current and deferred income taxes for intercompany transfers of assets until the asset had been sold to an outside party. The ASU requires companies to recognize the income tax effects of intercompany sales and transfers of assets other than inventory, as income tax expense (or benefit) in the period in which the transfer occurs. The adoption of this ASU did not have an impact on Ambac's financial statements. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments . The ASU resolves diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. Transactions addressed in the ASU that are potentially relevant to Ambac include the following: • Debt prepayment or debt extinguishment costs - such payments will be classified as a financing cash outflow. • Settlement of zero-coupon debt or other debt with coupon rates that are insignificant in relation to the effective interest rate of the borrowing - the portion of the cash payment attributable to accreted interest will be classified as an operating cash outflow and the portion attributable to the principal will be classified as a financing cash outflow. • Distributions from equity-method investees - an entity will elect one of the two following approaches. Under the "cumulative earnings approach": i) distributions received up to the amount of cumulative earnings recognized will be treated as returns on investments and classified as cash inflows from operating activities and ii) distributions received in excess of earnings recognized will be treated as returns of investments and classified as cash inflows from investing activities. Under the "nature of the distribution" approach, distributions received will be classified based on the nature of the activity that generated the distribution (i.e. classified as a return on investment or return of investment), when such information is available to the investor. • Beneficial interests in securitization transactions - any beneficial interests obtained in financial assets transferred to an unconsolidated securitization entity will be disclosed as a non-cash investing activity. Subsequent cash receipts from the beneficial interests in previously transferred tra de receivables will be classified as cash inflows from investing activities. After further evaluating the potentially relevant items, we determined the adoption of this ASU did not have an impact on Ambac's financial statements. Recognition and Measurement of Financial Assets and Liabilities In January 2016, the FASB issued ASC 2016-01, Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities . The ASU makes the following targeted changes for financial assets and liabilities: i) requires equity investments with readily determinable fair values to be measured at fair value with changes recognized in net income; ii) simplifies the impairment assessment of equity securities without readily determinable fair values using a qualitative approach; iii) eliminates disclosure of the method and significant assumptions used to fair value instruments measured at amortized cost on the balance sheet; iv) requires the use of the exit price notion when measuring the fair value of instruments for disclosure purposes; v) for financial liabilities where the fair value option has been elected, requires the portion of the fair value change related to instrument-specific credit risk, to be separately reported in other comprehensive income; vi) requires the separate presentation of financial assets and liabilities by measurement category and form of financial asset (liability) on the balance sheet or accompanying notes; and vii) clarifies that the evaluation of a valuation allowance on a deferred tax asset related to available-for-sale securities should be performed in combination with the entity's other deferred tax assets. With respect to item v) above, Ambac has elected the fair value option for all VIE financial liabilities. For these VIE liabilities this ASU has resulted in a cumulative-effect reclassification of $2,900 , net of deferred tax of $590 , between Retained earnings and Accumulated other comprehensive income, with no net change to Total stockholders' equity as of January 1, 2018. For the nine months ended September 30, 2018 and going forward, the instrument-specific credit risk of fair value changes in VIE liabilities has been and will be reported in Accumulated other comprehensive income in accordance with this ASU, with all other fair value changes continuing to be reported through net income. There was no material impact on Ambac's financial statements for the other provisions of this ASU. Revenue recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) that amends the accounting guidance for recognizing revenue for contracts with customers to transfer goods and contracts for the transfer of non-financial assets unless those contracts are within the scope of other accounting standards. As this ASU does not apply to insurance contracts and most financial instruments, management determined there was no impact on Ambac's financial statements. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Future Application of Accounting Standards: Cloud Computing Arrangement Service Contracts In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new guidance requires a customer in a cloud computing arrangement that is a service contract to capitalize certain implementation costs as if the arrangement was an internal-use software project. The internal-use software guidance requires the capitalization of certain costs incurred only during the application development stage (e.g., costs of integration with on-premises software, coding, configuration, customization). That guidance also requires entities to expense costs during the preliminary project and post-implementation stages (e.g., costs of project planning, training, maintenance after implementation, data conversion) as they are incurred. ASU 2018-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The ASU may be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Ambac will adopt this ASU on January 1, 2020. The ASU is not expected to have a consequential impact on Ambac's financial statements. Defined Benefit and Other Postretirement Plans Disclosures In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) - Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . The ASU modifies various disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Relevant disclosures that will be removed are: i) amounts in accumulated other comprehensive income expected to be recognized as net periodic benefit cost over the next fiscal year, and ii) the effects of a one percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of the net periodic pension cost and (b) benefit obligation for postretirement healthcare benefits. Relevant disclosures that will be added are an explanation of the reasons for significant gains and losses related to changes in the benefit obligations for the period. ASU 2018-14 is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The modified disclosures must be applied on a retrospective basis for all periods presented. Ambac has not determined whether it will early adopt this ASU. The ASU is not expected to have a consequential impact on Ambac's financial statements. Fair Value Measurement Disclosures In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The ASU modifies various disclosure requirements on fair value measurements. Relevant disclosures that will be removed, modified and added are as follows: • Removals : 1) Amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) Policy for timing of transfers between levels, and 3) Valuation processes for Level 3 fair value measurements. • Modifications : 1) For investments in certain entities that calculate net asset value, disclosures are only required for the timing of liquidation of an investee's assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the reporting entity or publicly announced it, and 2) Clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date and not possible future changes. • Additions : 1) Changes in unrealized gains and losses for the period included in other comprehensive income ("OCI") for recurring Level 3 fair value measurements held at the end of the reporting period and 2) Range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. Alternatively, an entity may disclose other quantitative information (such as the median or arithmetic average) if it determines that it is a more reasonable and rational method to reflect the distribution of unobservable inputs used. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. Disclosure amendments related to changes in unrealized gains and losses included in OCI for level 3 instruments, the range and weighted average of significant unobservable inputs, and the narrative description of measurement uncertainty should be applied prospectively only for the most recent interim or annual period presented. All other disclosure amendments should be applied retrospectively to all periods presented. Ambac has not determined whether it will early adopt this ASU. The ASU is not expected to have a consequential impact on Ambac's financial statements. Equity-linked Instruments with Down Round Features In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260) and Derivatives and Hedging (Topic 815) - Accounting for Certain Financial Instruments with Down Round Features . Equity-linked instruments, such as warrants and convertible instruments may contain down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings. Under the ASU, a down round feature will no longer require a freestanding equity-linked instrument (or embedded conversion option) to be classified as a liability that is remeasured at fair value through the income statement (i.e. marked-to-market). However, other features of the equity-linked instrument (or embedded conversion option) must still be evaluated to determine whether liability or equity classification is appropriate. Equity classified instruments are not marked-to-market. For earnings per share ("EPS") reporting, the ASU requires companies to recognize the effect of the down round feature only when it is triggered by treating it as a dividend and as a reduction of income available to common stockholders in basic EPS. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in any interim period. Ambac will adopt this ASU on January 1, 2019 and it is not expected to have a consequential impact on Ambac's financial statements. Premium Amortization on Callable Debt Securities In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities . The ASU shortens the amortization period for the premium on callable debt securities to the earliest call date. Under current GAAP, a reporting entity generally amortizes the premium as a yield adjustment over the contractual life (i.e. maturity) of the debt security and if that debt security is called, the entity would record a loss equal to the unamortized premium. The ASU does not change the accounting for callable debt securities held at a discount, which will continue to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Ambac will adopt this ASU on January 1, 2019 and it is not expected to have a consequential impact on Ambac's financial statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments . This ASU significantly affects how reporting entities will measure credit losses for financial assets that are not accounted for at fair value through net income, which include loans, debt securities, trade receivables, net investments in leases, and certain off-balance sheet credit exposures. For financial assets measured at amortized cost, the ASU replaces the "incurred loss" model, which generally delayed recognition of the full amount of credit losses until the loss was probable of occurring, with an "expected loss" model, which reflects an entity's current estimate of all expected credit losses. Expected credit losses for amortized cost assets will be recorded as a valuation allowance, with subsequent increases or decreases in the allowance reflected in the income statement each period. For available-for-sale debt securities, credit losses under the ASU will be measured similarly to current GAAP. However, under the ASU, credit losses for available-for-sale securities will be recorded as a valuation allowance (similar to the amortized cost assets approach described above), rather than as a direct write-down of the security as is required under current GAAP. As a result, improvements to estimated credit losses for available-for-sale debt securities will be recognized immediately in the income statement rather than as interest income over time. The ASU is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. Ambac will adopt this ASU on January 1, 2020 and we are currently evaluating its impact on Ambac's financial statements. The significant implementation matters to be addressed include identifying the inventory of financial assets that will be affected by this standard, identifying new data requirements and data sources for implementing the expected loss model for those instruments not already using this model and identifying and documenting accounting process changes, including related controls. Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Cash Flow Supplemental Information [Line Items] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Disclosure of Cash Flow Information Nine Months Ended September 30, 2018 2017 Cash paid during the period for: Income taxes $ 31,408 $ 29,556 Interest on long-term debt and investment agreements 195,333 38,325 Non-cash financing activities: Increase in long-term debt in exchange for auction market preferred shares $ 187,220 $ — Decrease in long-term debt as a result of an exchange for investment securities — 55,426 Rehabilitation exit transaction discharge of all Deferred Amounts and cancellation of certain General Account Surplus Notes 1,918,561 — Reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets to the Consolidated Statements of Cash Flows: Cash and cash equivalents $ 52,505 $ 107,018 Restricted cash 1,024 37,793 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows $ 53,529 $ 144,811 In addition to the non-cash financing activities disclosed in the above table, the Rehabilitation Exit Transactions involved the exchange of cash and non-cash consideration for the discharge of all Deferred Amounts and cancellation of certain General Account Surplus Notes. Refer to Note 1. Background and Business Description of this Form 10-Q and Note 1. Background and Business Description in the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 |
Special Purpose Entities, Inc_2
Special Purpose Entities, Including Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets and Liabilities, Net [Abstract] | |
Components of VIE Gain (Loss) [Table Text Block] | Below is a schedule detailing the change in fair value of the various financial instruments within the consolidated FG VIEs, along with gains (losses) from consolidating and deconsolidating FG VIEs that together comprise Income (loss) on variable interest entities for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Income (loss) on changes related to: Net change in fair value of VIE assets and liabilities $ 386 $ (4,049 ) $ 1,854 $ (1,567 ) Less: Credit risk changes of fair value liabilities (379 ) — (696 ) — Deconsolidations 1,824 — 1,824 — Income (loss) on Variable Interest Entities $ 1,831 $ (4,049 ) $ 2,982 $ (1,567 ) |
Summary of Fair Value of Fixed Income Securities, by Asset-Type, Held by Consolidated Variable Interest Entities | The table below provides the fair value of fixed income securities, by asset-type, held by consolidated VIEs as of September 30, 2018 and December 31, 2017 : September 30, December 31, Investments: Corporate obligations $ 2,718,377 $ 2,914,145 Total variable interest entity assets: fixed income securities $ 2,718,377 $ 2,914,145 |
Supplemental Information about Loans Held as Assets and Long-Term Debt Associated with Consolidated Variable Interest Entities | The following table provides supplemental information about the loans held as assets and long-term debt associated with the VIEs for which the fair value option has been elected as of September 30, 2018 and December 31, 2017 : Estimated Fair Value Unpaid Principal Balance September 30, 2018: Loans $ 4,563,091 $ 3,654,644 Long-term debt 5,585,860 4,831,033 December 31, 2017: Loans $ 11,529,384 $ 8,168,651 Long-term debt 12,160,544 9,387,884 |
Summary of Carrying Amount of Assets, Liabilities and Maximum Exposure to Loss of Ambac's Variable Interests in Non-Consolidated Variable Interest Entities | The following table displays the carrying amount of the assets, liabilities and maximum exposure to loss of Ambac’s variable interests in non-consolidated VIEs resulting from financial guarantee and derivative contracts by major underlying asset classes, as of September 30, 2018 and December 31, 2017 : Carrying Value of Assets and Liabilities Maximum (1) Insurance (2) Insurance (3) Net Derivative (4) September 30, 2018: Global structured finance: Collateralized debt obligations $ 14,554 $ — $ — $ (5 ) Mortgage-backed—residential (5) 6,992,810 1,827,464 555,122 — Other consumer asset-backed 1,745,767 16,349 245,775 — Other commercial asset-backed 1,025,429 25,397 17,248 — Other 2,181,409 55,516 299,138 6,048 Total global structured finance 11,959,969 1,924,726 1,117,283 6,043 Global public finance 24,551,420 315,578 345,308 (1,170 ) Total $ 36,511,389 $ 2,240,304 $ 1,462,591 $ 4,873 December 31, 2017: Global structured finance: Collateralized debt obligations $ 35,555 $ 169 $ 1 $ (15 ) Mortgage-backed—residential 12,766,685 619,848 3,218,356 — Other consumer asset-backed 2,266,610 23,405 328,732 — Other commercial asset-backed 987,797 30,413 35,976 — Other 2,513,304 60,086 306,457 10,311 Total global structured finance 18,569,951 733,921 3,889,522 10,296 Global public finance 25,629,816 335,347 371,056 (551 ) Total $ 44,199,767 $ 1,069,268 $ 4,260,578 $ 9,745 (1) Maximum exposure to loss represents the maximum future payments of principal and interest on insured obligations and derivative contracts plus Deferred Amounts and accrued and unpaid interest thereon. On February 12, 2018, all Deferred Amounts and interest accrued on Deferred Amounts were settled in connection with the Rehabilitation Exit Transactions. Ambac’s maximum exposure to loss does not include the benefit of any financial instruments (such as reinsurance or hedge contracts) that Ambac may utilize to mitigate the risks associated with these variable interests. (2) Insurance assets represent the amount recorded in “Premium receivables” and “Subrogation recoverable” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets. (3) Insurance liabilities represent the amount recorded in “Loss and loss expense reserves” and “Unearned premiums” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets. (4) |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Balances of Each Component of Accumulated Other Comprehensive Income | The following tables detail the changes in the balances of each component of accumulated other comprehensive income for the affected periods: Unrealized Gains (1) Amortization of (1) Gain (Loss) on (1) Credit Risk Changes of Fair Value Option Liabilities (1) (2) Total Three Months Ended September 30, 2018: Beginning Balance $ 153,634 $ 9,479 $ (114,567 ) $ (2,692 ) $ 45,854 Other comprehensive income (loss) before reclassifications 90,742 — (8,873 ) — 81,869 Amounts reclassified from accumulated other comprehensive income (loss) (29,935 ) (303 ) — 340 (29,898 ) Net current period other comprehensive income (loss) 60,807 (303 ) (8,873 ) 340 51,971 Balance at September 30, 2018 $ 214,441 $ 9,176 $ (123,440 ) $ (2,352 ) $ 97,825 Three Months Ended September 30, 2017: Beginning Balance $ 152,847 $ 11,316 $ (125,335 ) $ — $ 38,828 Other comprehensive income (loss) before reclassifications (7,801 ) — 24,624 — 16,823 Amounts reclassified from accumulated other comprehensive income (loss) 7,367 (338 ) — — 7,029 Net current period other comprehensive income (loss) (434 ) (338 ) 24,624 — 23,852 Balance at September 30, 2017 $ 152,413 $ 10,978 $ (100,711 ) $ — $ 62,680 Nine Months Ended September 30, 2018: Beginning Balance $ 30,755 $ 10,640 $ (93,634 ) $ — $ (52,239 ) Adjustment to opening balance, net of taxes (3) — — — (2,900 ) (2,900 ) Adjusted balance, beginning of period 30,755 10,640 (93,634 ) (2,900 ) (55,139 ) Other comprehensive income (loss) before reclassifications 264,318 (556 ) (29,806 ) — 233,956 Amounts reclassified from accumulated other comprehensive income (loss) (80,632 ) (908 ) — 548 (80,992 ) Net current period other comprehensive income (loss) 183,686 (1,464 ) (29,806 ) 548 152,964 Balance at September 30, 2018 $ 214,441 $ 9,176 $ (123,440 ) $ (2,352 ) $ 97,825 Nine Months Ended September 30, 2017: Beginning Balance $ 118,863 $ 9,367 $ (167,220 ) $ — $ (38,990 ) Other comprehensive income (loss) before reclassifications 19,769 2,625 66,509 — 88,903 Amounts reclassified from accumulated other comprehensive income (loss) 13,781 (1,014 ) — — 12,767 Net current period other comprehensive income (loss) 33,550 1,611 66,509 — 101,670 Balance at September 30, 2017 $ 152,413 $ 10,978 $ (100,711 ) $ — $ 62,680 (1) All amounts are net of tax and noncontrolling interest. Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income. (2) Represents the changes in fair value attributable to instrument-specific credit risk of liabilities for which the fair value option is elected. (3) Beginning in 2018, credit risk changes of fair value option liabilities are reflected as a component of Accumulated Other Comprehensive Income |
Schedule of Amounts Reclassed Out of Each Component of Accumulated Other Comprehensive Income | The following table details the significant amounts reclassified from each component of accumulated other comprehensive income, shown in the above rollforward tables, for the affected periods: Details about Accumulated Other Comprehensive Income Components Amount Reclassified from Accumulated Other Comprehensive Income (1) Affected Line Item in the Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Unrealized Gains (Losses) on Available-for-Sale Securities $ (30,560 ) $ 7,367 $ (81,843 ) $ 13,781 Net realized investment gains (losses) and other-than-temporary impairment losses 625 — 1,211 — Provision for income taxes $ (29,935 ) $ 7,367 $ (80,632 ) $ 13,781 Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ (241 ) $ (241 ) $ (723 ) $ (723 ) Other income (2) Actuarial (losses) (62 ) (97 ) (185 ) (291 ) Other income (2) (303 ) (338 ) (908 ) (1,014 ) Total before tax — — — — Provision for income taxes (303 ) (338 ) $ (908 ) $ (1,014 ) Net of tax and noncontrolling interest Credit risk changes of fair value option liabilities $ 380 $ — $ 630 $ — Credit Risk Changes of Fair Value Option Liabilities (40 ) — (82 ) — Provision for income taxes $ 340 $ — $ 548 $ — Net of tax and noncontrolling interest Total reclassifications for the period $ (29,898 ) $ 7,029 $ (80,992 ) $ 12,767 Net of tax and noncontrolling interest (1) Amounts in parentheses indicate reductions to Accumulated Other Comprehensive Income with corresponding increases to the affected line items in the Consolidated Statement of Total Comprehensive Income. (2) |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the common shares used for basic net income per share to the diluted shares used for diluted net income per share: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Basic weighted average shares outstanding 45,749,252 45,404,315 45,635,483 45,355,671 Effect of potential dilutive shares (1) : Warrants — — 454,150 — Restricted stock units — — 72,615 — Performance stock units (2) — — 348,547 — Diluted weighted average shares outstanding 45,749,252 45,404,315 46,510,795 45,355,671 Anti-dilutive shares excluded from the above reconciliation: Stock options 126,667 126,667 126,667 126,667 Warrants 4,877,783 4,053,670 — 4,053,670 Restricted stock units 232,408 68,654 — 68,654 Performance stock units (2) 521,394 327,109 — 327,109 (1) For the three months ended September 30, 2018 and the three and nine months ended September 30, 2017 , Ambac had a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. (2) |
Financial Guarantee Insurance_2
Financial Guarantee Insurance Contracts (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Line Items] | |
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table [Table Text Block] | Below are the components of the Loss and loss expense reserves liability and the Subrogation recoverable asset at September 30, 2018 and December 31, 2017 : Unpaid Claims Present Value of Expected Balance Sheet Line Item Claims Accrued Claims and Recoveries Unearned Gross Loss and September 30, 2018: Loss and loss expense reserves $ — $ — $ 2,278,763 $ (305,024 ) $ (105,255 ) $ 1,868,484 Subrogation recoverable — — 182,865 (2,081,476 ) — (1,898,611 ) Totals $ — $ — $ 2,461,628 $ (2,386,500 ) $ (105,255 ) $ (30,127 ) December 31, 2017: Loss and loss expense reserves $ 2,411,632 $ 667,988 $ 2,855,010 $ (1,054,113 ) $ (135,502 ) $ 4,745,015 Subrogation recoverable 615,391 171,755 102,171 (1,520,530 ) — (631,213 ) Totals $ 3,027,023 $ 839,743 $ 2,957,181 $ (2,574,643 ) $ (135,502 ) $ 4,113,802 |
Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) | Below is the gross premium receivable roll-forward for the affected periods: Nine Months Ended September 30, 2018 2017 Beginning premium receivable $ 586,312 $ 661,337 Premium receipts (42,660 ) (66,141 ) Adjustments for changes in expected and contractual cash flows (1) (34,088 ) (24,407 ) Accretion of premium receivable discount 11,211 12,326 Changes to uncollectable premiums 2,473 (103 ) Other adjustments (including foreign exchange) (6,051 ) 18,745 Ending premium receivable (2) $ 517,197 $ 601,757 (1) Adjustments for changes in expected and contractual cash flows primarily due to reductions in insured exposure as a result of early policy terminations and unscheduled principal paydowns. (2) Premium receivable includes premiums to be received in foreign denominated currencies most notably in British Pounds and Euros. At September 30, 2018 and 2017 , premium receivables include British Pounds of $136,925 ( £104,988 ) and $153,964 ( £114,847 ), respectively, and Euros of $32,613 ( €28,085 ) and $36,815 ( €31,154 |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned for the respective periods was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Written Earned Written Earned Written Earned Written Earned Direct $ (22,954 ) $ 27,559 $ (24,696 ) $ 57,282 $ (19,304 ) $ 87,506 $ (12,184 ) $ 156,582 Assumed — 20 — 20 — 59 — 61 Ceded (789 ) 1,939 (385 ) 4,313 (1,832 ) 5,206 (1,962 ) 12,889 Net premiums $ (22,165 ) $ 25,640 $ (24,311 ) $ 52,989 $ (17,472 ) $ 82,359 $ (10,222 ) $ 143,754 |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | The following table summarizes net premiums earned by location of risk for the respective periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 United States $ 19,539 $ 31,929 $ 64,009 $ 108,556 United Kingdom 4,523 17,273 14,337 28,094 Other international 1,578 3,787 4,013 7,104 Total $ 25,640 $ 52,989 $ 82,359 $ 143,754 |
Summarized Future Gross Undiscounted Premiums Expected to be Collected and Future Expected Premiums Earned, Net of Reinsurance | The table below summarizes the future gross undiscounted premiums to be collected and future premiums earned, net of reinsurance at September 30, 2018 : Future Premiums (1) Future (1) Three months ended: December 31, 2018 $ 14,031 $ 14,672 Twelve months ended: December 31, 2019 52,211 55,831 December 31, 2020 49,314 52,205 December 31, 2021 42,999 47,630 December 31, 2022 41,004 44,441 Five years ended: December 31, 2027 181,091 180,584 December 31, 2032 140,309 120,582 December 31, 2037 79,454 67,135 December 31, 2042 28,784 23,960 December 31, 2047 13,631 12,632 December 31, 2052 3,621 4,647 December 31, 2057 91 297 Total $ 646,540 $ 624,616 (1) Future premiums to be collected are undiscounted and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. Future premiums to be earned, net of reinsurance relate to the unearned premiums liability and deferred ceded premium asset recorded on Ambac’s balance sheet. The use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral is required in the calculation of the premium receivable, as further described in Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to Consolidated Financial Statements included in Ambac's Annual Report on Form 10-K for the year ended December 31, 2017 |
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance | Below is the loss and loss expense reserve roll-forward, net of subrogation recoverable and reinsurance, for the affected periods: Nine Months Ended September 30, 2018 2017 Beginning gross loss and loss expense reserves $ 4,113,802 $ 3,696,038 Reinsurance recoverable 40,658 30,767 Beginning balance of net loss and loss expense reserves 4,073,144 3,665,271 Losses and loss expenses (benefit): Current year 976 5,328 Prior years (182,291 ) 405,589 Total (1) (2) (3) (181,315 ) 410,917 Loss and loss expenses paid (recovered): Current year 143 330 Prior years (3) 3,937,561 148,082 Total 3,937,704 148,412 Foreign exchange effect (9,578 ) 26,556 Ending net loss and loss expense reserves (55,453 ) 3,954,332 Reinsurance recoverable (4) 25,326 46,023 Ending gross loss and loss expense reserves (5) $ (30,127 ) $ 4,000,355 (1) Total losses and loss expenses (benefit) includes $(123) and $(21,189) for the nine months ended September 30, 2018 and 2017 , respectively, related to ceded reinsurance. (2) Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain R&Ws within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated representation and warranties for the nine months ended September 30, 2018 and 2017 was $56,928 and $62,451 , respectively. (3) On February 12, 2018, Deferred Amounts and Interest Accrued on Deferred Amounts in the amount of $3,000,158 and $856,834 , respectively were settled in connection with the Rehabilitation Exit Transactions. 2018 includes a $288,204 loss and loss expense benefit on these settled Deferred Amounts. (4) Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of $185 and $(47) as of September 30, 2018 and 2017 , respectively, related to previously presented loss and loss expenses and subrogation. (5) Includes Euro denominated gross loss and loss expense reserves of $2,475 ( €2,131 ) and $21,142 ( €17,891 ) at September 30, 2018 and 2017 |
Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable | For 2017 , the net adverse development was primarily the result of negative development in certain public finance transactions, including Puerto Rico, and interest accrued on Deferred Amounts partially offset by positive development in certain Ambac UK transactions. The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at September 30, 2018 and December 31, 2017 . Gross par exposures include capital appreciation bonds which are reported at the par amount at the time of issuance of the insurance policy as opposed to the current accreted value of the bond. The weighted average risk-free rate used to discount loss reserves at September 30, 2018 and December 31, 2017 was 3.1% and 2.5% , respectively. Surveillance Categories as of September 30, 2018 I IA II III IV V Total Number of policies 33 25 11 18 148 3 238 Remaining weighted-average contract period (in years) (1) 9 22 7 22 13 3 16 Gross insured contractual payments outstanding: Principal $ 1,058,679 $ 535,358 $ 356,714 $ 1,744,554 $ 5,609,816 $ 43,926 $ 9,349,047 Interest 493,847 558,077 151,446 6,980,654 2,209,528 15,229 10,408,781 Total $ 1,552,526 $ 1,093,435 $ 508,160 $ 8,725,208 $ 7,819,344 $ 59,155 $ 19,757,828 Gross undiscounted claim liability $ 4,130 $ 55,554 $ 37,858 $ 1,101,833 $ 2,359,788 $ 59,123 $ 3,618,286 Discount, gross claim liability (552 ) (14,667 ) (3,450 ) (513,413 ) (724,685 ) (5,110 ) (1,261,877 ) Gross claim liability before all subrogation and before reinsurance 3,578 40,887 34,408 588,420 1,635,103 54,013 2,356,409 Less: Gross RMBS subrogation (2) — — — — (1,814,915 ) — (1,814,915 ) Discount, RMBS subrogation — — — — 38,667 — 38,667 Discounted RMBS subrogation, before reinsurance — — — — (1,776,248 ) — (1,776,248 ) Less: Gross other subrogation (3) — (9,585 ) (23 ) (123,326 ) (597,581 ) (13,003 ) (743,518 ) Discount, other subrogation — 6,716 — 59,749 62,645 4,156 133,266 Discounted other subrogation, before reinsurance — (2,869 ) (23 ) (63,577 ) (534,936 ) (8,847 ) (610,252 ) Gross claim liability, net of all subrogation and discounts, before reinsurance 3,578 38,018 34,385 524,843 (676,081 ) 45,166 (30,091 ) Less: Unearned premium revenue (1,302 ) (9,656 ) (1,688 ) (36,993 ) (55,391 ) (225 ) (105,255 ) Plus: Loss expense reserves 2,117 3,240 2,256 12,101 85,505 — 105,219 Gross loss and loss expense reserves $ 4,393 $ 31,602 $ 34,953 $ 499,951 $ (645,967 ) $ 44,941 $ (30,127 ) Reinsurance recoverable reported on Balance Sheet (4) $ 275 $ 4,279 $ 8,736 $ 27,837 $ (15,616 ) $ — $ 25,511 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for representation and warranty ("R&W") breaches. (3) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (4) Reinsurance recoverable reported on the Balance Sheet includes reinsurance recoverables of $25,326 related to future loss and loss expenses and $185 related to presented loss and loss expenses and subrogation. Surveillance Categories as of December 31, 2017 I IA II III IV V Total Number of policies 26 20 26 22 179 4 277 Remaining weighted-average contract period (in years) (1) 10 23 10 24 13 4 17 Gross insured contractual payments outstanding: Principal $ 1,046,267 $ 531,190 $ 1,199,909 $ 1,998,861 $ 6,862,281 $ 48,562 $ 11,687,070 Interest 531,657 584,098 413,045 7,182,715 2,469,765 16,332 11,197,612 Total $ 1,577,924 $ 1,115,288 $ 1,612,954 $ 9,181,576 $ 9,332,046 $ 64,894 $ 22,884,682 Gross undiscounted claim liability (2) $ 4,434 $ 56,659 $ 77,289 $ 1,412,976 $ 6,409,340 $ 64,863 $ 8,025,561 Discount, gross claim liability (465 ) (13,095 ) (12,250 ) (643,897 ) (616,559 ) (4,739 ) (1,291,005 ) Gross claim liability before all subrogation and before reinsurance 3,969 43,564 65,039 769,079 5,792,781 60,124 6,734,556 Less: Gross RMBS subrogation (3) — — — — (1,857,502 ) — (1,857,502 ) Discount, RMBS subrogation — — — — 23,115 — 23,115 Discounted RMBS subrogation, before reinsurance — — — — (1,834,387 ) — (1,834,387 ) Less: Gross other subrogation (4) — (7,990 ) (9,371 ) (53,070 ) (743,456 ) (13,191 ) (827,078 ) Discount, other subrogation — 5,169 2,550 8,349 67,045 3,709 86,822 Discounted other subrogation, before reinsurance — (2,821 ) (6,821 ) (44,721 ) (676,411 ) (9,482 ) (740,256 ) Gross claim liability, net of all subrogation and discounts, before reinsurance 3,969 40,743 58,218 724,358 3,281,983 50,642 4,159,913 Less: Unearned premium revenue (2,126 ) (9,990 ) (12,238 ) (46,086 ) (64,786 ) (276 ) (135,502 ) Plus: Loss expense reserves 16,116 3,242 665 13,331 56,037 — 89,391 Gross loss and loss expense reserves $ 17,959 $ 33,995 $ 46,645 $ 691,603 $ 3,273,234 $ 50,366 $ 4,113,802 Reinsurance recoverable reported on Balance Sheet (5) $ 202 $ 4,894 $ 9,424 $ 38,465 $ (11,988 ) $ — $ 40,997 (1) Remaining weighted-average contract period is weighted based on projected gross claims over the lives of the respective policies. (2) Gross undiscounted claim liability includes unpaid claims, including accrued interest on Deferred Amounts, on policies allocated to the Segregated Account and Ambac's estimate of expected future claims. (3) RMBS subrogation represents Ambac’s estimate of subrogation recoveries from RMBS transaction sponsors for R&W breaches. (4) Other subrogation represents subrogation related to excess spread and other contractual cash flows on public finance and structured finance transactions, including RMBS. (5) Reinsurance recoverable reported on Balance Sheet includes reinsurance recoverables of $40,658 related to future loss and loss expenses and $339 |
Summary of Balance of Subrogation Recoveries and Related Claim Liabilities, by Estimation Approach | The balance of R&W subrogation recoveries and the related loss reserves at September 30, 2018 and December 31, 2017 , are as follows: Gross Loss (1) Subrogation (2)(3) Gross Loss At September 30, 2018 $ 131,245 $ (1,776,248 ) $ (1,645,003 ) At December 31, 2017 $ 1,366,483 $ (1,834,387 ) $ (467,904 ) (1) Amount represents gross loss reserves for policies that have established a representation and warranty subrogation recovery. December 31, 2017 includes unpaid RMBS claims (including accrued interest thereon) on policies allocated to the Segregated Account, such balances have been settled via the Rehabilitation Exit Transactions. (2) The amount of recorded subrogation recoveries related to each securitization is limited to ever-to-date paid and unpaid losses plus the present value of expected future cash flows for each policy. To the extent losses have been paid but not yet fully recovered, the recorded amount of R&W subrogation recoveries may exceed the sum of the unpaid claims and the present value of expected cash out flows for a given policy. The net cash inflow for these policies is recorded as a “Subrogation recoverable” asset. For those transactions where the subrogation recovery is less than the sum of unpaid claims and the present value of expected cash flows, the net cash outflow for these policies is recorded as a “Loss and loss expense reserves” liability. (3) |
Summary of Rollforward of RMBS Subrogation, by Estimation Approach | Below is the rollforward of R&W subrogation for the affected periods: Nine Months Ended September 30, 2018 2017 Discounted R&W subrogation (gross of reinsurance) at beginning of period $ 1,834,387 $ 1,907,035 Changes recognized during the period: Impact of sponsor actions — — All other changes (1) (58,139 ) (62,919 ) Discounted R&W subrogation (gross of reinsurance) at end of period $ 1,776,248 $ 1,844,116 (1) |
Insurance Intangible Asset [Member] | |
Insurance [Line Items] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization expense for the net insurance intangible asset is as follows: 2018 2019 2020 2021 2022 Thereafter Amortization expense (1) $ 17,243 $ 65,216 $ 60,350 $ 54,975 $ 51,132 $ 506,818 (1) Future amortization considers the use of contractual lives for many bond types which do not have homogeneous pools of underlying collateral. Actual maturities will differ from contractual maturities because |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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, 2018 and December 31, 2017 , 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. Carrying Total Fair Fair Value Measurements Categorized as: September 30, 2018: Level 1 Level 2 Level 3 Financial assets: Fixed income securities: Municipal obligations $ 970,464 $ 970,464 $ — $ 970,464 $ — Corporate obligations 1,319,368 1,319,368 — 1,319,368 — Foreign obligations 34,007 34,007 32,906 1,101 — U.S. government obligations 92,207 92,207 92,207 — — Residential mortgage-backed securities 278,775 278,775 — 278,775 — Collateralized debt obligations 87,721 87,721 — 87,721 — Other asset-backed securities 438,759 438,759 — 366,665 72,094 Fixed income securities, pledged as collateral: U.S. government obligations 84,186 84,186 84,186 — — Short term investments 562,060 562,060 454,746 107,314 — Other investments (1) 411,604 390,729 63,520 — 17,955 Cash and cash equivalents 52,505 52,505 31,094 21,411 — Loans 10,082 12,189 — — 12,189 Derivative assets: Interest rate swaps—asset position 50,699 50,699 — 7,287 43,412 Interest rate swaps—liability position (437 ) (437 ) — (437 ) — Futures contracts — — — — — Other assets 4,887 4,887 — — 4,887 Variable interest entity assets: Fixed income securities: Corporate obligations 2,718,377 2,718,377 — — 2,718,377 Restricted cash 1,024 1,024 1,024 — — Loans 4,563,091 4,563,091 — — 4,563,091 Derivative assets: Currency swaps-asset position 61,543 61,543 — 61,543 — Total financial assets $ 11,656,736 $ 11,637,968 $ 675,497 $ 3,221,212 $ 7,432,005 Financial liabilities: Long term debt, including accrued interest $ 3,294,482 $ 3,333,145 $ — $ 2,968,246 $ 364,899 Derivative liabilities: Credit derivatives 1,175 1,175 — — 1,175 Interest rate swaps—asset position — — — — Interest rate swaps—liability position 59,728 59,728 — 59,728 — Futures contracts 428 428 428 — — Liabilities for net financial guarantees written (2) (644,090 ) 786,156 — — 786,156 Variable interest entity liabilities: Long-term debt 5,585,860 5,585,860 — 5,354,580 231,280 Derivative liabilities: Interest rate swaps—liability position 1,657,173 1,657,173 — 1,657,173 — Total financial liabilities $ 9,954,756 $ 11,423,665 $ 428 $ 10,039,727 $ 1,383,510 Carrying Total Fair Fair Value Measurements Categorized as: December 31, 2017: Level 1 Level 2 Level 3 Financial assets: Fixed income securities: Municipal obligations $ 779,834 $ 779,834 $ — $ 779,834 $ — Corporate obligations 860,075 860,075 450 859,625 — Foreign obligations 26,543 26,543 25,615 928 — U.S. government obligations 85,408 85,408 85,408 — — Residential mortgage-backed securities 2,251,333 2,251,333 — 1,515,316 736,017 Collateralized debt obligations 51,037 51,037 — 51,037 — Other asset-backed securities 597,942 597,942 — 525,402 72,540 Fixed income securities, pledged as collateral: U.S. government obligations 99,719 99,719 99,719 — — Short term investments 557,270 557,270 389,299 167,971 — Other investments (1) 431,630 413,977 56,498 29,750 17,288 Cash and cash equivalents 623,703 623,703 615,073 8,630 — Loans 10,358 10,284 — — 10,284 Derivative assets: Interest rate swaps—asset position 73,199 73,199 — 11,825 61,374 Other assets 5,979 5,979 — — 5,979 Variable interest entity assets: Fixed income securities: Corporate obligations 2,914,145 2,914,145 — — 2,914,145 Restricted cash 978 978 978 — — Loans 11,529,384 11,529,384 — — 11,529,384 Derivative assets: Currency swaps—asset position 54,877 54,877 — 54,877 — Total financial assets $ 20,853,695 $ 20,835,968 $ 1,173,321 $ 4,005,195 $ 15,347,011 Financial liabilities: Long term debt, including accrued interest $ 1,428,680 $ 1,369,499 $ — $ 1,046,511 $ 322,988 Derivative liabilities: Credit derivatives 566 566 — — 566 Interest rate swaps—asset position (627 ) (627 ) — (627 ) — Interest rate swaps—liability position 81,495 81,495 — 81,495 — Futures contracts 1,348 1,348 1,348 — — Liabilities for net financial guarantees written (2) 3,435,438 4,842,402 — — 4,842,402 Variable interest entity liabilities: Long-term debt 12,160,544 12,160,544 — 9,402,856 2,757,688 Derivative liabilities: Interest rate swaps—liability position 2,205,264 2,205,264 — 2,205,264 — Total financial liabilities $ 19,312,708 $ 20,660,491 $ 1,348 $ 12,735,499 $ 7,923,644 (1) Excluded from the fair value measurement categories in the table above are investment funds of $309,254 and $310,441 as of September 30, 2018 and December 31, 2017 , respectively, which are measured using NAV per share as a practical expedient. (2) |
Information about Valuation Inputs for Variable Interest Entity Assets and Liabilities Classified as Level 3 | Information about the above described model inputs used to determine the fair value of credit derivatives, including the CVA as a percentage of the gross mark-to-market liability before considering Ambac credit risk (“CVA percentage”), as of September 30, 2018 and December 31, 2017 is summarized below: September 30, December 31, 2017 Number of CDS transactions 2 2 Notional outstanding $ 303,650 $ 325,890 Weighted average reference obligation price 98.3 99.3 Weighted average life (WAL) in years 5.9 6.5 Weighted average credit rating A A Weighted average relative change ratio 23.1 % 23.6 % CVA percentage 6.75 % 9.64 % Fair value of derivative liabilities $ 1,175 $ 566 |
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 2018 and 2017 . 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 VIE Assets and Liabilities Investments Other Derivatives Investments Loans Long-term Total Three Months Ended September 30, 2018: Balance, beginning of period $ 68,802 $ 5,255 $ 45,613 $ 2,756,924 $ 10,751,199 $ (2,517,638 ) $ 11,110,155 Total gains/(losses) realized and unrealized: Included in earnings 376 (368 ) (2,080 ) (7,811 ) (29,439 ) 3,101 (36,221 ) Included in other comprehensive income 3,218 — — (30,736 ) (122,908 ) 28,064 (122,362 ) Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (302 ) — (1,296 ) — (89,296 ) 17,841 (73,053 ) Deconsolidation of VIEs — — — — (5,946,465 ) 2,237,352 (3,709,113 ) Balance, end of period $ 72,094 $ 4,887 $ 42,237 $ 2,718,377 $ 4,563,091 $ (231,280 ) $ 7,169,406 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 $ — $ (368 ) $ (2,179 ) $ (7,811 ) $ (29,439 ) $ 3,101 $ (36,696 ) Three Months Ended September 30, 2017: Balance, beginning of period $ 765,682 $ 6,691 $ 52,729 $ 2,722,316 $ 11,301,298 $ (2,804,218 ) $ 12,044,498 Total gains/(losses) realized and unrealized: Included in earnings 8,330 (354 ) 2,031 (18,064 ) 137,513 (62,887 ) 66,569 Included in other comprehensive income 8,557 — — 81,356 327,087 (84,793 ) 332,207 Purchases — — — — — — — Issuances — — — — — — — Sales — — — — — — — Settlements (6,760 ) — (1,671 ) — (208,110 ) 5,514 (211,027 ) Transfers out of Level 3 — — — — — — — Balance, end of period $ 775,809 $ 6,337 $ 53,089 $ 2,785,608 $ 11,557,788 $ (2,946,384 ) $ 12,232,247 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 $ — $ (354 ) $ 1,889 $ (18,064 ) $ 137,513 $ (62,887 ) $ 58,097 Level 3 - Financial Assets and Liabilities Accounted for at Fair Value VIE Assets and Liabilities Investments Other Derivatives Investments Loans Long-term Total Nine Months Ended September 30, 2018: Balance, beginning of period $ 808,557 $ 5,979 $ 60,808 $ 2,914,145 $ 11,529,384 $ (2,757,688 ) $ 12,561,185 Total gains/(losses) realized and unrealized: Included in earnings 35,842 (1,092 ) (14,137 ) (80,974 ) (204,561 ) 180,314 (84,608 ) Included in other comprehensive income (52,804 ) — — (97,199 ) (371,610 ) 85,837 (435,776 ) Purchases — — — — — — — Sales — — — — — — — Settlements (714,192 ) — (4,434 ) (17,595 ) (443,657 ) 22,905 (1,156,973 ) Transfers into Level 3 — — — — — — — Transfers out of Level 3 (5,309 ) — — — — — (5,309 ) Deconsolidation of VIEs — — — — (5,946,465 ) 2,237,352 (3,709,113 ) Balance, end of period $ 72,094 $ 4,887 $ 42,237 $ 2,718,377 $ 4,563,091 $ (231,280 ) $ 7,169,406 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 $ — $ (1,092 ) $ (14,433 ) $ (80,974 ) $ (70,659 ) $ 37,637 $ (129,521 ) Nine Months Ended September 30, 2017: Balance, beginning of period $ 762,703 $ 7,382 $ (100,282 ) $ 2,622,566 $ 10,658,963 $ (2,582,220 ) $ 11,369,112 Total gains/(losses) realized and unrealized: Included in earnings 34,628 (1,045 ) 53,329 (49,518 ) 515,904 (143,194 ) 410,104 Included in other comprehensive income 25,654 — — 228,487 913,477 (233,187 ) 934,431 Purchases 35,781 — — — — — 35,781 Sales (79,319 ) — — — — — (79,319 ) Settlements (25,716 ) — 100,042 (15,927 ) (530,556 ) 12,217 (459,940 ) Transfers into Level 3 22,078 — — — — — 22,078 Transfers out of Level 3 — — — — — — — Balance, end of period $ 775,809 $ 6,337 $ 53,089 $ 2,785,608 $ 11,557,788 $ (2,946,384 ) $ 12,232,247 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 $ — $ (1,045 ) $ 5,640 $ (49,518 ) $ 515,904 $ (143,194 ) $ 327,787 The tables below provide roll-forward information by class of investments and derivatives measured using significant unobservable inputs. Level 3 - Investments by Class: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Other Asset Non-Agency RMBS Total Other Asset Non-Agency RMBS Total Balance, beginning of period $ 68,802 $ — $ 68,802 $ 65,366 $ 700,316 $ 765,682 Total gains/(losses) realized and unrealized: Included in earnings 376 — 376 420 7,910 8,330 Included in other comprehensive income 3,218 — 3,218 (383 ) 8,940 8,557 Purchases — — — — — — Sales — — — — — — Settlements (302 ) — (302 ) (265 ) (6,495 ) (6,760 ) Transfers out of Level 3 — — — — — — Balance, end of period $ 72,094 $ — $ 72,094 $ 65,138 $ 710,671 $ 775,809 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 $ — $ — $ — $ — $ — $ — Level 3 - Investments by Class: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Other Asset Non-Agency Total Other Asset Non-Agency Total Balance, beginning of period $ 72,540 $ 736,017 $ 808,557 $ 65,990 $ 696,713 $ 762,703 Total gains/(losses) realized and unrealized: Included in earnings 1,115 34,727 35,842 1,129 33,499 34,628 Included in other comprehensive income (666 ) (52,138 ) (52,804 ) (1,217 ) 26,871 25,654 Purchases — — — — 35,781 35,781 Sales — — — — (79,319 ) (79,319 ) Settlements (895 ) (713,297 ) (714,192 ) (764 ) (24,952 ) (25,716 ) Transfers into Level 3 — — — — 22,078 22,078 Balance, end of period $ 72,094 $ — $ 72,094 $ 65,138 $ 710,671 $ 775,809 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 $ — $ — $ — $ — $ — $ — Level 3 - Derivatives by Class: Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Interest Credit Total Interest Credit Total Balance, beginning of period $ 46,939 $ (1,326 ) $ 45,613 $ 61,735 $ (9,006 ) $ 52,729 Total gains/(losses) realized and unrealized: Included in earnings (2,330 ) 250 (2,080 ) 1,852 179 2,031 Included in other comprehensive income — — — — — — Purchases — — — — — — Sales — — — — — — Settlements (1,197 ) (99 ) (1,296 ) (1,537 ) (134 ) (1,671 ) Transfers into Level 3 — — — — — — Balance, end of period $ 43,412 $ (1,175 ) $ 42,237 $ 62,050 $ (8,961 ) $ 53,089 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 $ (2,330 ) $ 151 $ (2,179 ) $ 1,852 $ 37 $ 1,889 Level 3 - Derivatives by Class: Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Interest Credit Total Interest Credit Total Balance, beginning of period $ 61,374 $ (566 ) $ 60,808 $ (84,933 ) $ (15,349 ) $ (100,282 ) Total gains/(losses) realized and unrealized: Included in earnings (13,824 ) (313 ) (14,137 ) 45,474 7,855 53,329 Included in other comprehensive income — — — — — — Purchases — — — — — — Sales — — — — — — Settlements (4,138 ) (296 ) (4,434 ) 101,509 (1,467 ) 100,042 Transfers into Level 3 — — — — — — Balance, end of period $ 43,412 $ (1,175 ) $ 42,237 $ 62,050 $ (8,961 ) $ 53,089 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 $ (13,824 ) $ (609 ) $ (14,433 ) $ 5,715 $ (75 ) $ 5,640 |
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: Net Realized Unrealized Derivative Rate Swaps) Income Other Three Months Ended September 30, 2018: Total gains or losses included in earnings for the period $ 376 $ 99 $ 151 $ (2,330 ) $ (34,149 ) $ (368 ) Changes in unrealized gains or losses relating to the assets and liabilities still held at the reporting date — — 151 (2,330 ) (34,149 ) (368 ) Three Months Ended September 30, 2017: Total gains or losses included in earnings for the period $ 8,330 $ 134 $ 45 $ 1,852 $ 56,562 $ (354 ) Changes in unrealized gains or losses relating to the assets and liabilities still held at the reporting date — — 37 1,852 56,562 (354 ) Nine Months Ended September 30, 2018: Total gains or losses included in earnings for the period $ 35,842 $ 296 $ (609 ) $ (13,824 ) $ (105,221 ) $ (1,092 ) Changes in unrealized gains or losses relating to the assets and liabilities still held at the reporting date — — (609 ) (13,824 ) (113,996 ) (1,092 ) Nine Months Ended September 30, 2017: Total gains or losses included in earnings for the period $ 34,628 $ 1,467 $ 6,388 $ 45,474 $ 323,192 $ (1,045 ) Changes in unrealized gains or losses relating to the assets and liabilities still held at the reporting date — — (75 ) 5,715 323,192 (1,045 ) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 were as follows: Amortized Gross Gross Estimated Non-credit (1) September 30, 2018: Fixed income securities: Municipal obligations $ 858,255 $ 114,008 $ 1,799 $ 970,464 $ — Corporate obligations (2) 1,324,241 12,077 16,950 1,319,368 — Foreign obligations 34,045 220 258 34,007 — U.S. government obligations 93,574 413 1,780 92,207 Residential mortgage-backed securities 230,473 48,350 48 278,775 — Collateralized debt obligations 87,642 83 4 87,721 — Other asset-backed securities 373,202 66,280 723 438,759 — 3,001,432 241,431 21,562 3,221,301 — Short-term 562,111 5 56 562,060 — 3,563,543 241,436 21,618 3,783,361 — Fixed income securities pledged as collateral: U.S. government obligations 84,186 — — 84,186 — Total fixed income securities pledged as collateral 84,186 — — 84,186 — Total available-for-sale investments $ 3,647,729 $ 241,436 $ 21,618 $ 3,867,547 $ — December 31, 2017: Fixed income securities: Municipal obligations $ 845,778 $ 3,456 $ 69,400 $ 779,834 $ — Corporate obligations 858,774 6,772 5,471 860,075 — Foreign obligations 26,245 409 111 26,543 — U.S. government obligations 86,900 261 1,753 85,408 — Residential mortgage-backed securities 2,214,512 67,303 30,482 2,251,333 23,832 Collateralized debt obligations 50,754 283 — 51,037 — Other asset-backed securities 531,660 66,899 617 597,942 — 4,614,623 145,383 107,834 4,652,172 23,832 Short-term 557,476 3 209 557,270 — 5,172,099 145,386 108,043 5,209,442 23,832 Fixed income securities pledged as collateral: U.S. government obligations 99,719 — — 99,719 — Total fixed income securities pledged as collateral 99,719 — — 99,719 — Total available-for-sale investments $ 5,271,818 $ 145,386 $ 108,043 $ 5,309,161 $ 23,832 (1) Represents the amount of non-credit other-than-temporary impairment losses remaining in accumulated other comprehensive income on securities that also had a credit impairment. These losses are included in gross unrealized losses as of September 30, 2018 and December 31, 2017 . (2) Includes Ambac's holdings of the |
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 September 30, 2018 , by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 724,270 $ 723,823 Due after one year through five years 1,139,043 1,142,011 Due after five years through ten years 288,308 283,434 Due after ten years 804,791 913,024 2,956,412 3,062,292 Residential mortgage-backed securities 230,473 278,775 Collateralized debt obligations 87,642 87,721 Other asset-backed securities 373,202 438,759 Total $ 3,647,729 $ 3,867,547 |
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, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2018 and December 31, 2017 : Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross September 30, 2018: Fixed income securities: Municipal obligations $ 33,030 $ 346 $ 27,415 $ 1,453 $ 60,445 $ 1,799 Corporate obligations 418,960 11,456 105,164 5,494 524,124 16,950 Foreign obligations 16,769 91 6,332 167 23,101 258 U.S. government obligations 22,855 1,084 52,693 696 75,548 1,780 Residential mortgage-backed securities 1,035 48 — — 1,035 48 Collateralized debt obligations 2,996 4 — — 2,996 4 Other asset-backed securities 9,974 25 79,442 698 89,416 723 505,619 13,054 271,046 8,508 776,665 21,562 Short-term 201,107 56 — — 201,107 56 Total temporarily impaired securities $ 706,726 $ 13,110 $ 271,046 $ 8,508 $ 977,772 $ 21,618 Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross December 31, 2017: Fixed income securities: Municipal obligations $ 667,335 $ 68,578 $ 32,525 $ 822 $ 699,860 $ 69,400 Corporate obligations 292,028 3,377 87,272 2,094 379,300 5,471 Foreign obligations 8,122 81 1,700 30 9,822 111 U.S. government obligations 74,188 1,653 5,525 100 79,713 1,753 Residential mortgage-backed securities 668,524 12,524 418,617 17,958 1,087,141 30,482 Other asset-backed securities 26,655 58 88,023 559 114,678 617 1,736,852 86,271 633,662 21,563 2,370,514 107,834 Short-term 251,926 209 — — 251,926 209 Total temporarily impaired securities $ 1,988,778 $ 86,480 $ 633,662 $ 21,563 $ 2,622,440 $ 108,043 |
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 other-than-temporary impairments included in earnings for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Gross realized gains on securities $ 30,909 $ 14,430 $ 83,937 $ 25,374 Gross realized losses on securities (2,171 ) (4,932 ) (5,200 ) (16,160 ) Net foreign exchange (losses) gains 1,463 (3,348 ) 3,474 (3,780 ) Net realized gains (losses) $ 30,201 $ 6,150 $ 82,211 $ 5,434 Net other-than-temporary impairments (1) $ (266 ) $ (13,510 ) $ (1,579 ) $ (19,215 ) (1) |
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 | The following table presents a roll-forward of Ambac’s cumulative credit losses on debt securities held as of September 30, 2018 and 2017 for which a portion of an other-than-temporary impairment was recognized in other comprehensive income: Nine Months Ended September 30, 2018 2017 Balance, beginning of period $ 67,085 $ 52,070 Additions for credit impairments recognized on: Securities not previously impaired 226 3,274 Securities previously impaired 97 11,596 Reductions for credit impairments previously recognized on: Securities that matured or were sold during the period (53,222 ) — Balance, end of period $ 14,186 $ 66,940 |
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, including the value of the financial guarantee, and weighted-average underlying rating, excluding the financial guarantee, of the insured securities at September 30, 2018 and December 31, 2017 , respectively: Municipal Corporate (3) Mortgage Total Weighted (1) September 30, 2018: Ambac Assurance Corporation (2) $ 915,525 $ 714,004 $ 612,587 $ 2,242,116 CC National Public Finance Guarantee Corporation 16,306 — — 16,306 BBB- Assured Guaranty Municipal Corporation 5,998 — — 5,998 BBB+ Total $ 937,829 $ 714,004 $ 612,587 $ 2,264,420 CC December 31, 2017: Ambac Assurance Corporation (2) $ 706,715 $ 32,660 $ 2,702,887 $ 3,442,262 CC National Public Finance Guarantee Corporation 20,733 — — 20,733 BBB- Assured Guaranty Municipal Corporation 5,998 — — 5,998 BBB+ Total $ 733,446 $ 32,660 $ 2,702,887 $ 3,468,993 CC (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Includes corporate obligations and asset-backed securities with a fair value of $141,373 and $170,280 at September 30, 2018 and December 31, 2017 , respectively, insured by Ambac UK. (3) |
Equity Method Investments [Table Text Block] | There are no unfunded commitments applicable to any of these investments for the periods disclosed. Fair Value Class of Funds September 30, December 31, Redemption Frequency Redemption Notice Period Real estate properties (1) $ 33,030 $ 33,154 quarterly 10 business days Diversified hedge fund strategies (2) — 53,054 semi-monthly 15 - 30 days Interest rate products (3) (7) 179,856 136,603 daily, weekly or monthly 0 - 30 days Illiquid investments (4) 66,922 67,787 quarterly 180 days Insurance-linked investments (5) 32,360 22,666 quarterly 90-120 days Equity market investments (6) (7) 60,605 53,675 daily 0 days Total equity investments in pooled funds $ 372,773 $ 366,939 (1) Investments consist of UK property to generate income and capital growth. (2) Investments seek diversified exposure to hedge fund core strategies to produce high risk-adjusted returns, with low long-term correlation to traditional markets and with targeted volatility levels. Funds may have the right to defer redemptions under certain circumstances. (3) This class of funds includes investments in a range of instruments including leveraged loans, CLOs, asset-backed securities and floating rate notes to generate income and capital appreciation. Funds with less frequent redemption periods limit redemptions to as little as 15% per period. Funds with a same day redemption notice period are redeemable only weekly, while funds that may be redeemed any business day have notice periods of 15-30 days. (4) This class seeks to obtain high long-term total return through investments with low liquidity and defined term, resulting in expected capital distributions to subscribers between 2020 and 2023. Redemptions were restricted prior to the expiration of the investment lock-up period in May 2018. (5) This class aims to provide returns from the insurance and reinsurance markets through investments in catastrophe bonds, life insurance and other insurance linked investments. Redemption periods are quarterly, subject to 90-day notice for January/July redemption dates and 120-day notice for April/October redemption dates with redemptions greater than 3.5% during the first five years following share issuance subject to redemption fees. (6) Investments represent a diversified exposure to global equity market returns through holdings of various regional market index funds. (7) Interest rate products include $2,914 at September 30, 2018 and $2,823 at December 31, 2017 and equity market investments include $60,605 at September 30, 2018 and $53,675 at December 31, 2017 |
Summary of Net Investment Income | Net investment income was comprised of the following for the affected periods: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Fixed income securities $ 49,372 $ 81,054 $ 219,222 $ 236,876 Short-term investments 2,395 1,986 7,671 4,124 Loans 185 187 552 361 Investment expense (1,967 ) (2,228 ) (5,167 ) (6,269 ) Securities available-for-sale and short-term 49,985 80,999 222,278 235,092 Other investments 8,347 6,178 12,956 18,804 Total net investment income $ 58,332 $ 87,177 $ 235,234 $ 253,896 Net investment income from Other investments primarily represents changes in fair value on securities classified as trading or under the fair value option plus income from Ambac's interests in an unconsolidated trust created in connection with its sale of Segregated Account junior surplus notes. 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 September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Net gains (losses) recognized during the period on trading securities $ 7,014 $ 4,919 $ 9,067 $ 15,130 Less: net gains (losses) recognized during the reporting period on trading securities sold during the period 612 5,024 (2,067 ) 8,140 Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 6,402 $ (105 ) $ 11,134 $ 6,990 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Gross Fair Values of Individual Derivative Instruments | The following tables summarize the gross fair values of individual derivative instruments and the impact of legal rights of offset as reported in the Consolidated Balance Sheets as of September 30, 2018 and December 31, 2017 : Gross Gross Net Amounts Gross Amount Net Amount September 30, 2018: Derivative Assets: Interest rate swaps 50,699 437 50,262 — 50,262 Total non-VIE derivative assets $ 50,699 $ 437 $ 50,262 $ — $ 50,262 Derivative Liabilities: Credit derivatives $ 1,175 $ — $ 1,175 $ — $ 1,175 Interest rate swaps 60,165 437 59,728 58,935 793 Futures contracts 428 — 428 428 — Total non-VIE derivative liabilities $ 61,768 $ 437 $ 61,331 $ 59,363 $ 1,968 Variable Interest Entities Derivative Assets: Currency swaps $ 61,543 $ — $ 61,543 $ — $ 61,543 Total VIE derivative assets $ 61,543 $ — $ 61,543 $ — $ 61,543 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,657,173 $ — $ 1,657,173 $ — $ 1,657,173 Total VIE derivative liabilities $ 1,657,173 $ — $ 1,657,173 $ — $ 1,657,173 December 31, 2017: Derivative Assets: Interest rate swaps $ 73,826 $ 627 $ 73,199 $ — $ 73,199 Total non-VIE derivative assets $ 73,826 $ 627 $ 73,199 $ — $ 73,199 Derivative Liabilities: Credit derivatives $ 566 $ — $ 566 $ — $ 566 Interest rate swaps 81,495 627 80,868 79,912 956 Futures contracts 1,348 — 1,348 1,348 — Total non-VIE derivative liabilities $ 83,409 $ 627 $ 82,782 $ 81,260 $ 1,522 Variable Interest Entities Derivative Assets: Currency swaps $ 54,877 $ — $ 54,877 $ — $ 54,877 Total VIE derivative assets $ 54,877 $ — $ 54,877 $ — $ 54,877 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 2,205,264 $ — $ 2,205,264 $ — $ 2,205,264 Total VIE derivative liabilities $ 2,205,264 $ — $ 2,205,264 $ — $ 2,205,264 |
Summary of Location and Amount of Gains and Losses of Derivative Contracts | The following tables summarize the location and amount of gains and losses of derivative contracts in the Consolidated Statements of Total Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 and 2017 : Location of Gain or (Loss) Recognized in Consolidated Statements of Total Comprehensive Income (Loss) Amount of Gain or (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Non-VIEs: Credit derivatives Net change in fair value of credit derivatives $ 250 $ 179 $ (313 ) $ 7,855 Non-VIE derivatives: Interest rate swaps Net gains (losses) on interest rate derivatives 3,157 3,394 9,320 40,643 Futures contracts Net gains (losses) on interest rate derivatives 14,176 590 42,699 (4,105 ) Total Non-VIE derivatives 17,333 3,984 52,019 36,538 Variable Interest Entities: Currency swaps Income (loss) on variable interest entities 1,140 (7,794 ) 6,666 (22,693 ) Interest rate swaps Income (loss) on variable interest entities 335,054 (24,851 ) 548,092 (10,321 ) Total Variable Interest Entities 336,194 (32,645 ) 554,758 (33,014 ) Total derivative contracts $ 353,777 $ (28,482 ) $ 606,464 $ 11,379 |
Summary of Gross Principal Notional Outstanding for CDS Contracts | The following table summarizes the gross principal notional outstanding for CDS contracts, by Ambac rating as of September 30, 2018 and December 31, 2017 : Ambac Rating September 30, December 31, 2017 AAA $ — $ — AA 158,500 175,765 A — — BBB (1) 145,150 150,125 Below investment grade (2) — — Total $ 303,650 $ 325,890 (1) BBB internal ratings reflect bonds which are of medium grade credit quality with adequate capacity to pay interest and repay principal. Certain protective elements and margins may weaken under adverse economic conditions and changing circumstances. These bonds are more likely than higher rated bonds to exhibit unreliable protection levels over all cycles. (2) |
Summary of Notional Amounts of AFS's Trading Derivative Products | As of September 30, 2018 and December 31, 2017 the notional amounts of AFS’s derivatives are as follows: Notional Type of derivative September 30, December 31, Interest rate swaps—receive-fixed/pay-variable $ 372,586 $ 379,497 Interest rate swaps—pay-fixed/receive-variable 1,462,639 1,428,264 US Treasury futures contracts—short 1,740,000 1,655,000 |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | |
Summary of Notional Amounts of AFS's Trading Derivative Products | The notional for VIE derivatives outstanding as of September 30, 2018 and December 31, 2017 are as follows: Notional Type of VIE derivative September 30, December 31, Interest rate swaps—receive-fixed/pay-variable $ 1,431,360 $ 1,483,491 Interest rate swaps—pay-fixed/receive-variable 1,214,375 2,479,244 Currency swaps 359,907 394,541 Credit derivatives 10,487 12,100 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The carrying value of long-term debt was as follows: September 30, December 31, Ambac Assurance: 5.1% surplus notes due 2020 $ 473,893 $ 668,667 5.1% junior surplus notes due 2020 249,597 249,036 Ambac Note 1,968,614 — Tier 2 Notes 245,667 — Secured borrowing — 73,993 Ambac Assurance long-term debt $ 2,937,771 $ 991,696 Variable Interest Entities long-term debt $ 5,585,860 $ 12,160,544 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Major Jurisdictions | The following are the major jurisdictions in which Ambac and its subsidiaries operate and the earliest tax years subject to examination: Jurisdiction Tax Year United States 2010 New York State 2013 New York City 2013 United Kingdom 2015 Italy 2013 |
Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax liabilities and deferred tax assets at September 30, 2018 and December 31, 2017 are presented below: September 30, December 31, Deferred tax liabilities: Insurance intangible $ 158,704 $ 177,864 Debentures — 28,387 Unearned premiums and credit fees 50,386 51,485 Variable interest entities 17,265 22,817 Investments 51,704 28,798 Other 9,507 9,402 Total deferred tax liabilities 287,566 318,753 Deferred tax assets: Net operating loss and capital carryforward 745,419 775,917 Loss reserves 230,768 264,624 Debentures 24,219 — Compensation 7,935 5,585 Other 1,819 2,140 Subtotal deferred tax assets 1,010,160 1,048,266 Valuation allowance 750,131 763,172 Total deferred tax assets 260,029 285,094 Net deferred tax (liability) $ (27,537 ) $ (33,659 ) |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | U.S. and foreign components of pre-tax income (loss) were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 U.S. $ (39,832 ) $ (211,769 ) $ 271,014 $ (428,263 ) Foreign 19,884 26,303 23,655 150,929 Total $ (19,948 ) $ (185,466 ) $ 294,669 $ (277,334 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Current taxes U. S. federal $ — $ (617 ) $ — $ — U.S. state and local 424 — 2,106 — Foreign 6,164 6,056 8,669 31,902 Current taxes 6,588 5,439 10,775 31,902 Deferred taxes Foreign (4,377 ) — (3,964 ) — Deferred taxes (4,377 ) — (3,964 ) — Provision for income taxes $ 2,211 $ 5,439 $ 6,811 $ 31,902 |
Schedule of Net Operating Loss And Tax Credit Carryovers | Pursuant to the intercompany tax sharing agreement, to the extent Ambac Assurance generates taxable income after September 30, 2011, which is offset with "Allocated NOLs" of $3,650,000 , it is obligated to make payments (“Tolling Payments”), subject to certain credits, to Ambac in accordance with the following NOL usage table, where the “Applicable Percentage” is applied to the aggregate amount of federal income tax liability that would have been paid if the Allocated NOLs were not available. Pursuant to the Closing Agreement between Ambac and the Internal Revenue Service ("IRS"), the IRS will receive 12.5% of Tier C and 17.5% of Tier D payments, if made. NOL Usage Table NOL Usage Tier Allocated NOLs Applicable Percentage A The first $479,000 15% B The next $1,057,000 after Tier A 40% C The next $1,057,000 after Tier B 10% D The next $1,057,000 after Tier C 15% |
Background and Business Descr_2
Background and Business Description - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Feb. 12, 2018 | Dec. 31, 2017 | May 01, 2013 | |
Background And Basis Of Presentation [Line Items] | |||||||
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 | ||||||
Ambac LSNI Secured Note [Domain] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
AMBAC LSNI Secured Note | $ 2,154,332 | ||||||
Successor [Member] | |||||||
Background And Basis Of Presentation [Line Items] | |||||||
Other investments | $ 411,604 | $ 411,604 | $ 431,630 | ||||
Gain (Loss) on Sale of Derivatives | 99 | $ 134 | 296 | $ 1,467 | |||
Financial Guarantee Insurance Contracts, Accelerated Premium Revenue, Amount | $ 6,751 | $ 26,178 | $ 22,246 | $ 55,648 | |||
Common stock, shares authorized | 130,000,000 | 130,000,000 | 130,000,000 | ||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Warrants issued exercise price | $ 16.67 | ||||||
Derivative Liability | $ 61,331 | $ 61,331 | $ 82,782 |
Background and Business Descr_3
Background and Business Description Rehabilitation Exit Support Agreement (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2018 | Feb. 12, 2018 | |
Cancellation of Surplus Notes and Accrued Interest | $ 552,320,000 | |||
Cancellation of Surplus Notes Accrued Interest | 257,200,000 | |||
SatisfactionAndDischargeOfSegregatedAccountDeferredAmounts | 3,856,992,000 | |||
Gain Contingency, Unrecorded Amount | $ 1,400,000,000 | |||
Market Value of Secured Note Collateral | $ 221,676,000 | |||
Tier 2 Notes | 240,000,000 | |||
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | 1,600,000,000 | |||
One Time Interest Payment on Surplus Notes | 13,501,000 | |||
Successor [Member] | ||||
Long-term debt | 2,937,771,000 | $ 991,696,000 | ||
Deferred Payment Obligation [Member] | ||||
Discount Amount | 0.065 | |||
Surplus Notes [Member] | ||||
Cash Payment Amount | 0.40 | |||
Payment Amount in New Secured Notes | 0.41 | |||
Payment Amount in Existing Surplus Notes | 0.125 | |||
Ambac LSNI Secured Note [Domain] | ||||
AMBAC LSNI Secured Note | 2,154,332,000 | |||
Ambac Assurance Corporation [Member] | Successor [Member] | ||||
Long-term debt | $ 2,937,771,000 | $ 991,696,000 | ||
Ambac Assurance [Member] | ||||
Secured Notes Received from Ambac LSNI | 643,583,000 | |||
Ambac [Member] | Deferred Payment Obligation [Member] | ||||
One Dollar Outstanding | 1 | |||
Payment Amount in New Secured Notes | 0.91 | |||
Discount Amount | 0.09 | |||
Afg [Member] | ||||
Secured Notes Received from Ambac LSNI | 124,881,000 | |||
Ambac [Member] | ||||
One Time Interest Payment on Surplus Notes | $ 2,618,000 | |||
5.1% Surplus Notes, General Account, Due 2020 [Member] | Ambac Assurance Corporation [Member] | Successor [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% | |
Debt Instruments Maturity Year | 2,020 | 2,020 | ||
Ambac Note Post Exit From Rehabilitation [Member] | Ambac Assurance Corporation [Member] | Successor [Member] | ||||
Long-term debt | $ 1,968,614,000 | $ 0 |
Background and Business Descr_4
Background and Business Description Tier 2 Notes (Details) $ in Thousands | Feb. 12, 2018USD ($) |
Tier 2 Notes | $ 240,000 |
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600,000 |
Background and Business Descr_5
Background and Business Description AMPS Exchange (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | Aug. 03, 2018USD ($)shares | Jun. 30, 2018USD ($) | Jun. 22, 2018 | Dec. 31, 2017USD ($)shares | May 01, 2013$ / shares | |
AMPS Exchange Surplus Notes Issued Per Share | $ 13,875 | ||||||
AMPS Exchange Shares Tendered | shares | 22,096 | ||||||
AMPS Exchange Cash Paid Per Share | $ 500 | ||||||
AMPS Exchange Warrants Issued Per Share | 37.3076 | ||||||
AMPS Exchange Percent Acquired | 84.40% | ||||||
AMPS Exchange Shares Acquired | shares | 22,296 | ||||||
AMPS Exchange Aggregate Liquidation Preference | $ 557,400,000 | ||||||
AMPS Exchange Total Surplus Notes Issued | 212,740,000 | ||||||
AMPS Exchange Interest Included in Surplus Notes Issued | $ 98,366,000 | ||||||
AMPS Exchange Total Warrants Issued | 824,307 | ||||||
AMPS Exchange Nominal Discount | $ 227,000,000 | ||||||
AMPS Exchange Nominal Discount at Fair Value | 253,000,000 | ||||||
AMPS Exchange Supporting Holder Percent of Total Outstanding | 89.00% | ||||||
AMPS Exchange Supporting Holder Minimum Tender Commitment | 80.00% | ||||||
AMPS Liquidation Preference Value Per Share | 25,000 | ||||||
Successor [Member] | |||||||
Preferred Stock, Shares Outstanding | shares | 0 | 0 | 0 | ||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 41,150,000 | $ 41,150,000 | $ 264,110,000 | $ 264,110,000 | |||
Warrants issued exercise price | $ / shares | $ 16.67 | ||||||
AMPS Exchange Total Cash Paid | 11,048,000 | ||||||
AMPS Exchange Loss Based on Carry Value | 81,686,000 | $ 81,686,000 | |||||
Ambac Assurance Corporation [Member] | |||||||
Preferred Stock, Shares Outstanding | shares | 26,411 | ||||||
Preferred Stock, Liquidation Preference, Value | $ 660,275,000 | ||||||
Afg [Member] | |||||||
AMPS Exchange Aggregate Liquidation Preference | 34,650,000 | ||||||
AMPS Exchange Total Surplus Notes Issued | $ 19,440,000 | ||||||
Ambac Assurance [Member] | Successor [Member] | |||||||
AMPS Exchange Loss Based on Carry Value | $ 81,686,000 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies FX gain (loss) (Details) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (5,211) | $ 19,142 | ||
Loss and Loss Reserves [Member] | ||||
Foreign Currency Transaction Gain (Loss), before Tax | (9,549) | 26,556 | ||
Gain (Loss) on Investments [Member] | ||||
Foreign Currency Transaction Gain (Loss), before Tax | $ 1,463 | $ (3,348) | $ 3,474 | $ (3,780) |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies Additional Information (Details) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Derivative [Line Items] | ||||
Fair Value, Option, Credit Risk, Gains (Losses) on Liabilities | $ 0 | $ 0 | ||
Gain (Loss) on Sale of Derivatives | $ 99 | 134 | $ 296 | 1,467 |
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 2,900 | |||
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0 | (2,900) | ||
Other Operating Income (Expense) [Member] | Accounting Standards Update 2017-07 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | (283) | (680) | ||
Operating Expense [Member] | Accounting Standards Update 2017-07 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Operating Results | $ 283 | $ 680 | ||
Deferred Income Tax Charge [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (590) | |||
Deferred Income Tax Charge [Member] | Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||
Derivative [Line Items] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 590 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow information (Details) - Successor [Member] - USD ($) $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Aug. 03, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Income Taxes Paid | $ 31,408 | $ 29,556 | |||||
AMPS Exchange Carrying Value of Surplus Notes Issued | $ 187,220 | ||||||
Decrease in long-term debt as a result of an exchange for investment securities | 0 | 55,426 | |||||
Non Cash Impact of Rehabilitation Exit Transaction | $ 1,918,561 | $ 0 | |||||
Cash and cash equivalents | 52,505 | 107,018 | $ 623,703 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 53,529 | 144,811 | 624,681 | $ 95,898 | |||
Long-term Debt [Member] | |||||||
Interest Paid | 195,333 | 38,325 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
Restricted cash | $ 1,024 | $ 37,793 | $ 978 |
Special Purpose Entities, Inc_3
Special Purpose Entities, Including Variable Interest Entities - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2015USD ($) | Sep. 30, 2018USD ($)Entity | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Entity | Sep. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Feb. 12, 2018USD ($) | Dec. 31, 2017USD ($)Entity | Dec. 31, 2016Entity | |
Variable Interest Entities [Line Items] | |||||||||
Equity Method Investments | $ 38,830 | $ 38,830 | $ 34,941 | ||||||
Number of RMBS Sold | 17 | ||||||||
Cash Received From Delaware Trust | $ 146,000 | ||||||||
Secured Debt | 0 | 0 | 73,993 | ||||||
Fair Value of Securities Placed in Trust | 0 | 0 | 346,212 | ||||||
Securities Issued by Delaware Trust | $ 146,000 | ||||||||
Consolidated VIE assets | 7,347,422 | 7,347,422 | 14,500,507 | ||||||
Consolidated VIE liabilities | 7,245,870 | 7,245,870 | 14,366,434 | ||||||
Successor [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Variable Interest Entity Change in Fair Value of Assets and Liabilities | 386 | $ (4,049) | 1,854 | $ (1,567) | |||||
Deconsolidated VIE Assets | 6,471,015 | 6,471,015 | |||||||
Deconsolidated VIE Liabilities | 6,451,078 | 6,451,078 | |||||||
Fair value of special purpose entities | 4,887 | 4,887 | 5,979 | ||||||
variable interest entities deconsolidation gain loss | 1,824 | 0 | 1,824 | 0 | |||||
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | 1,831 | (4,049) | 2,982 | (1,567) | |||||
Other investments | 411,604 | $ 411,604 | 431,630 | ||||||
Asset-Backed Securities and Utility Obligations [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Weighted average life | 2 years 4 months 24 days | ||||||||
Average rating of assets held by sponsored special purpose entities | BBB+ | ||||||||
Sponsored Variable Interest Entities [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Total principal amount of debt outstanding | 406,350 | $ 406,350 | $ 420,600 | ||||||
Variable Interest Entities [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, before Tax | $ (379) | $ 0 | $ (696) | $ 0 | |||||
Consolidated Entities [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Number of Newly Consolidated Variable Interest Entities | 0 | 0 | 0 | ||||||
Number of DeConsolidated Variable Interest Entities | 0 | 0 | 2 | 0 | |||||
Number of consolidated Variable Interest Entities | Entity | 8 | 8 | 11 | ||||||
Ambac UK [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Number of consolidated Variable Interest Entities | Entity | 7 | 7 | 8 | 8 | |||||
Consolidated VIE assets | $ 7,209,445 | $ 7,209,445 | $ 14,160,152 | ||||||
Consolidated VIE liabilities | $ 7,107,889 | $ 7,107,889 | $ 14,026,704 | ||||||
Ambac Assurance [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Number of consolidated Variable Interest Entities | Entity | 1 | 1 | 3 | 3 | |||||
Secured Notes Received from Ambac LSNI | $ 643,583 | ||||||||
CarryValueSecuredNotesfromLSNI | $ 598,321 | ||||||||
Unsettled Amounts Secured Notes from LSNI | 32,894 | ||||||||
Afg [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Secured Notes Received from Ambac LSNI | $ 124,881 | ||||||||
CarryValueSecuredNotesfromLSNI | 115,683 | ||||||||
Unsettled Amounts Secured Notes from LSNI | $ 6,360 | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Variable Interest Entities [Line Items] | |||||||||
Interest Rate on Securities Issued by Delaware Trust | 2.80% |
Special Purpose Entities, Inc_4
Special Purpose Entities, Including Variable Interest Entities - Summary of Fair Value of Fixed Income Securities, by Asset-Type, Held by Consolidated Variable Interest Entities (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed income securities | $ 3,867,547 | $ 5,309,161 |
Variable Interest Entities [Member] | ||
Investments: | ||
Fixed income securities | 2,718,377 | 2,914,145 |
Corporate Obligations [Member] | ||
Investments: | ||
Fixed income securities | $ 2,718,377 | $ 2,914,145 |
Special Purpose Entities, Inc_5
Special Purpose Entities, Including Variable Interest Entities - Supplemental Information about Loans Held as Assets and Long-Term Debt Associated with Consolidated Variable Interest Entities (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Variable Interest Entities [Line Items] | ||
Variable Interest Entity, Consolidated, Carrying Amount, Liabilities | $ 7,245,870 | $ 14,366,434 |
Variable Interest Entities [Member] | Successor [Member] | ||
Variable Interest Entities [Line Items] | ||
Loans, Estimated fair value | 4,563,091 | 11,529,384 |
Long-term debt, Estimated fair value | 5,585,860 | 12,160,544 |
Loans, Unpaid principal balance | 3,654,644 | 8,168,651 |
Long-term debt, Unpaid principal balance | $ 4,831,033 | $ 9,387,884 |
Special Purpose Entities, Inc_6
Special Purpose Entities, Including Variable Interest Entities - Summary of Carrying Amount of Assets, Liabilities and Maximum Exposure to Loss of Ambac's Variable Interests in Non-Consolidated Variable Interest Entities (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Feb. 12, 2018 | Dec. 31, 2017 |
Variable Interest Entities [Line Items] | |||
SatisfactionAndDischargeOfSegregatedAccountDeferredPrincipalAmounts | $ 3,000,158 | ||
SatisfactionAndDischargeOfSegregatedAccountDeferredInterestAmounts | $ 856,834 | ||
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | $ 36,511,389 | $ 44,199,767 | |
Insurance Assets | 2,240,304 | 1,069,268 | |
Insurance Liabilities | 1,462,591 | 4,260,578 | |
Derivative Liabilities | 4,873 | 9,745 | |
Variable Interest Entity, Primary Beneficiary [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 11,959,969 | 18,569,951 | |
Insurance Assets | 1,924,726 | 733,921 | |
Insurance Liabilities | 1,117,283 | 3,889,522 | |
Derivative Liabilities | 6,043 | 10,296 | |
Variable Interest Entity, Primary Beneficiary [Member] | Global Public Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 24,551,420 | 25,629,816 | |
Insurance Assets | 315,578 | 335,347 | |
Insurance Liabilities | 345,308 | 371,056 | |
Derivative Liabilities | (1,170) | (551) | |
Variable Interest Entity, Primary Beneficiary [Member] | Collateralized Debt Obligations [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 14,554 | 35,555 | |
Insurance Assets | 0 | 169 | |
Insurance Liabilities | 0 | 1 | |
Derivative Liabilities | (5) | (15) | |
Variable Interest Entity, Primary Beneficiary [Member] | Residential Mortgage-Backed Securities [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 6,992,810 | 12,766,685 | |
Insurance Assets | 1,827,464 | 619,848 | |
Insurance Liabilities | 555,122 | 3,218,356 | |
Variable Interest Entity, Primary Beneficiary [Member] | Other Consumer Asset-Backed [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 1,745,767 | 2,266,610 | |
Insurance Assets | 16,349 | 23,405 | |
Insurance Liabilities | 245,775 | 328,732 | |
Derivative Liabilities | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Other Commercial Asset-Backed [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 1,025,429 | 987,797 | |
Insurance Assets | 25,397 | 30,413 | |
Insurance Liabilities | 17,248 | 35,976 | |
Derivative Liabilities | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Other [Member] | Global Structured Finance [Member] | |||
Variable Interest Entities [Line Items] | |||
Maximum Exposure To Loss | 2,181,409 | 2,513,304 | |
Insurance Assets | 55,516 | 60,086 | |
Insurance Liabilities | 299,138 | 306,457 | |
Derivative Liabilities | $ 6,048 | $ 10,311 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Balances of Each Component of Accumulated Other Comprehensive Income (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Restated | $ (55,139) | ||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | (2,900) | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Beginning Balance | $ 45,854 | $ 38,828 | $ (52,239) | $ (38,990) | |
Other comprehensive income before reclassifications | (81,869) | (16,823) | (233,956) | (88,903) | |
Amounts reclassified from accumulated other comprehensive income | (29,898) | 7,029 | (80,992) | 12,767 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 51,971 | 23,852 | 152,964 | 101,670 | |
Ending Balance | 97,825 | 62,680 | 97,825 | 62,680 | |
Income Tax Expense (Benefit) | 2,211 | 5,439 | 6,811 | 31,902 | |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Beginning Balance | 153,634 | 152,847 | 30,755 | 118,863 | |
Other comprehensive income before reclassifications | (90,742) | 7,801 | (264,318) | (19,769) | |
Amounts reclassified from accumulated other comprehensive income | (29,935) | 7,367 | (80,632) | 13,781 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 60,807 | (434) | 183,686 | 33,550 | |
Ending Balance | 214,441 | 152,413 | 214,441 | 152,413 | |
Accumulated Translation Adjustment [Member] | |||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Beginning Balance | (114,567) | (125,335) | (93,634) | (167,220) | |
Other comprehensive income before reclassifications | 8,873 | (24,624) | 29,806 | (66,509) | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (8,873) | 24,624 | (29,806) | 66,509 | |
Ending Balance | (123,440) | (100,711) | (123,440) | (100,711) | |
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ (2,900) | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Beginning Balance | (2,692) | (2,900) | |||
Other comprehensive income before reclassifications | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income | 340 | 548 | |||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 340 | 548 | |||
Ending Balance | (2,352) | (2,352) | |||
Other Postretirement Benefits Plan [Member] | |||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Beginning Balance | 9,479 | 11,316 | 10,640 | 9,367 | |
Other comprehensive income before reclassifications | 0 | 0 | 556 | (2,625) | |
Amounts reclassified from accumulated other comprehensive income | (303) | (338) | (908) | (1,014) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (303) | (338) | (1,464) | 1,611 | |
Ending Balance | 9,176 | 10,978 | 9,176 | 10,978 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | |||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Income Tax Expense (Benefit) | 625 | 0 | 1,211 | 0 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Other Postretirement Benefits Plan [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax | (241) | (241) | (723) | (723) | |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive income | (303) | (338) | (908) | (1,014) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 62 | 97 | 185 | 291 | |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (303) | (338) | (908) | (1,014) | |
Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Amounts Reclassed Out of Each Component of Accumulated Other Comprehensive Income (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | $ (2,211) | $ (5,439) | $ (6,811) | $ (31,902) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | (340) | (548) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (29,898) | 7,029 | (80,992) | 12,767 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net realized investment gains | (30,560) | 7,367 | (81,843) | 13,781 |
Net of tax and noncontrolling interest | (29,935) | 7,367 | (80,632) | 13,781 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (29,935) | 7,367 | (80,632) | 13,781 |
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | 340 | 0 | 548 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 340 | 548 | ||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | 380 | 0 | 630 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax and noncontrolling interest | (29,898) | 7,029 | (80,992) | 12,767 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | (625) | 0 | (1,211) | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Gain (Loss), Financial Liability, Fair Value Option, Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | 40 | 0 | 82 | 0 |
Other Postretirement Benefits Plan [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (303) | (338) | (908) | (1,014) |
Other Postretirement Benefits Plan [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Prior service cost | (241) | (241) | (723) | (723) |
Actuarial gains (losses) | (62) | (97) | (185) | (291) |
Total before tax | (303) | (338) | (908) | (1,014) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (303) | $ (338) | $ (908) | $ (1,014) |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | ||||||
Sep. 30, 2018USD ($)$ / sharesshares | Sep. 30, 2017shares | Aug. 03, 2018 | Dec. 31, 2017$ / shares | Nov. 02, 2016USD ($) | Jun. 30, 2015USD ($) | May 01, 2013$ / shares | |
Schedule Of Earnings Per Share [Line Items] | |||||||
Warrants Repurchased Average Cost per Warrant | $ / shares | $ 8.21 | ||||||
RemainingWarrantBuyBackAuthorizedDollars | $ | $ 11,939 | ||||||
AMPS Exchange Total Warrants Issued | 824,307 | ||||||
Successor [Member] | |||||||
Schedule Of Earnings Per Share [Line Items] | |||||||
Common stock, shares outstanding | 45,332,214 | ||||||
Par value of common stock issued | $ / shares | $ 0.01 | $ 0.01 | |||||
Exercise price of common stock | $ / shares | $ 16.67 | ||||||
Common stock shares issued | 194 | 0 | |||||
First Warrant Buyback Authorization Dollars | $ | $ 10,000 | ||||||
Warrant exercised | 194 | 0 | |||||
Warrants outstanding | 4,877,783 | ||||||
SecondWarrantBuyBackAuthorizedDollars | $ | $ 10,000 | ||||||
Warrants Purchased Shares | 985,331 | ||||||
Payments for Repurchase of Warrants | $ | $ 8,092 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share (Detail) - Successor [Member] - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of common shares used for basic earnings per share | 45,749,252 | 45,404,315 | 45,635,483 | 45,355,671 |
Effect of potential dilutive shares: | ||||
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share | 45,749,252 | 45,404,315 | 46,510,795 | 45,355,671 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,877,783 | 4,053,670 | 0 | 4,053,670 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 126,667 | 126,667 | 126,667 | 126,667 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 232,408 | 68,654 | 0 | 68,654 |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 521,394 | 327,109 | 0 | 327,109 |
Warrants [Member] | ||||
Effect of potential dilutive shares: | ||||
Effect of potential dilutive shares | 0 | 0 | 454,150 | 0 |
Restricted Stock Units (RSUs) [Member] | ||||
Effect of potential dilutive shares: | ||||
Effect of potential dilutive shares | 0 | 0 | 72,615 | 0 |
Performance Shares [Member] | ||||
Effect of potential dilutive shares: | ||||
Effect of potential dilutive shares | 0 | 0 | 348,547 | 0 |
Net Income Per Share Schedule o
Net Income Per Share Schedule of Basic and Dilutive Securities for EPS (Details) - Successor [Member] - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Weighted Average Number of Shares Outstanding, Basic | 45,749,252 | 45,404,315 | 45,635,483 | 45,355,671 |
Weighted Average Number of Shares Outstanding, Diluted | 45,749,252 | 45,404,315 | 46,510,795 | 45,355,671 |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 232,408 | 68,654 | 0 | 68,654 |
Employee Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 126,667 | 126,667 | 126,667 | 126,667 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,877,783 | 4,053,670 | 0 | 4,053,670 |
Performance Shares [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 521,394 | 327,109 | 0 | 327,109 |
Performance Shares [Member] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 348,547 | 0 |
Restricted Stock Units (RSUs) [Member] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 0 | 0 | 72,615 | 0 |
Financial Guarantee Insurance_3
Financial Guarantee Insurance Contracts - Additional Information (Detail) € in Thousands, £ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018GBP (£) | Jun. 30, 2018USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017GBP (£) | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Insurance [Line Items] | ||||||||||||
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.80% | 2.80% | 2.50% | 2.80% | 2.80% | |||||||
Weighted average period of future premiums | 8 years 8 months 12 days | 9 years 9 months 18 days | ||||||||||
Subrogation recoveries, net of reinsurance | $ (1,749,808) | $ (1,749,808) | $ (1,806,736) | |||||||||
Possible Increase in Loss Reserves Related to Puerto Rico | 1,190,000 | 1,190,000 | ||||||||||
Successor [Member] | ||||||||||||
Insurance [Line Items] | ||||||||||||
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 1,776,248 | 1,776,248 | 1,834,387 | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable | 517,197 | $ 601,757 | 517,197 | $ 601,757 | 586,312 | $ 661,337 | ||||||
Reinsurance Payable | 34,306 | $ 34,306 | $ 37,876 | |||||||||
Transactions with non-investment grade internal ratings | 21.00% | 22.00% | ||||||||||
Uncollectable premium receivables | 8,027 | $ 8,027 | $ 9,331 | |||||||||
Past due premiums on policies insuring non-investment grade obligations amount | 1,500 | 1,500 | ||||||||||
Accelerated premium revenue for retired obligations | 6,751 | 26,178 | 22,246 | 55,648 | ||||||||
Reinsurance recoveries of losses included in losses and loss expenses | (123) | (21,189) | ||||||||||
Losses and loss expense reserves ceded to reinsurers | 25,326 | 46,023 | 25,326 | 46,023 | 40,658 | 30,767 | ||||||
Intangible amortization expense | 26,421 | 45,690 | 78,299 | 116,686 | ||||||||
Intangible Assets, Gross (Excluding Goodwill) | 1,562,753 | 1,562,753 | 1,581,156 | |||||||||
Insurance intangible asset | 755,734 | 755,734 | 846,973 | |||||||||
Accumulated amortization on insurance intangible asset | 807,019 | 807,019 | 734,183 | |||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,798,809 | 1,772,137 | 1,798,809 | 1,772,137 | $ 1,645,258 | $ 2,063,921 | $ 1,938,213 | $ 1,978,024 | ||||
Stockholders Equity After Possible Increase in Domestic Public Finance Loss Reserves | 608,809 | 608,809 | ||||||||||
Premiums Paid on Past Due Non Investment Grade Obligations | 1,100 | $ 1,100 | ||||||||||
Loss Reserves [Member] | ||||||||||||
Insurance [Line Items] | ||||||||||||
Weighted average risk-free rate used to discount loss reserves | 3.10% | 2.50% | ||||||||||
United Kingdom, Pounds | ||||||||||||
Insurance [Line Items] | ||||||||||||
Financial Guarantee Insurance Contracts, Premium Receivable | 136,925 | 153,964 | $ 136,925 | 153,964 | £ 104,988 | £ 114,847 | ||||||
Euro Member Countries, Euro | ||||||||||||
Insurance [Line Items] | ||||||||||||
Financial Guarantee Insurance Contracts, Premium Receivable | $ 32,613 | $ 36,815 | 32,613 | $ 36,815 | € 28,085 | € 31,154 | ||||||
Commonwealth of Puerto Rico [Member] | ||||||||||||
Insurance [Line Items] | ||||||||||||
Domestic Public Finance Losses | $ 41,939 |
Financial Guarantee Insurance_4
Financial Guarantee Insurance Contracts - Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) (Detail) € in Thousands, £ in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2017GBP (£) | Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018GBP (£) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Successor [Member] | |||||||||
Insurance [Line Items] | |||||||||
Financial Guarantee Insurance Contracts, Accelerated Premium Revenue, Amount | $ 6,751 | $ 26,178 | $ 22,246 | $ 55,648 | |||||
Percentage Premiums Receivable Related To Transactions With Non Investment Grade Internal Ratings | 21.00% | 21.00% | 21.00% | 22.00% | |||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Beginning premium receivable | $ 586,312 | 661,337 | $ 661,337 | ||||||
Premium receipts | 42,660 | 66,141 | |||||||
Adjustments for changes in expected and contractual cash flows | (34,088) | (24,407) | |||||||
Accretion of premium receivable discount | 11,211 | 12,326 | |||||||
Uncollectable premiums | 2,473 | (103) | |||||||
Other adjustments (including foreign exchange) | (6,051) | 18,745 | |||||||
Ending premium receivable | 517,197 | 601,757 | 517,197 | 601,757 | 586,312 | ||||
Premiums Receivable, Allowance for Doubtful Accounts | 8,027 | 8,027 | $ 9,331 | ||||||
United Kingdom, Pounds | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Ending premium receivable | 136,925 | 153,964 | £ 114,847 | 136,925 | £ 104,988 | 153,964 | |||
Euro Member Countries, Euro | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Ending premium receivable | $ 32,613 | $ 36,815 | € 31,154 | $ 32,613 | € 28,085 | $ 36,815 |
Financial Guarantee Insurance_5
Financial Guarantee Insurance Contracts - Effect of Reinsurance on Premiums Written and Earned (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Direct Premiums Written | $ (22,954) | $ (24,696) | $ (19,304) | $ (12,184) |
Assumed Reinsurance Premiums Written | 0 | 0 | 0 | 0 |
Ceded Reinsurance Premiums Written | (789) | (385) | (1,832) | (1,962) |
Premiums written, net of reinsurance | 22,165 | 24,311 | 17,472 | 10,222 |
Direct Premiums Earned | 27,559 | 57,282 | 87,506 | 156,582 |
Assumed Reinsurance Premiums Earned | 20 | 20 | 59 | 61 |
Ceded Reinsurance Premiums Earned | 1,939 | 4,313 | 5,206 | 12,889 |
Reinsurance on premiums earned, Net | $ 25,640 | $ 52,989 | $ 82,359 | $ 143,754 |
Financial Guarantee Insurance_6
Financial Guarantee Insurance Contracts - Summarized Future Gross Undiscounted Premiums Expected to be Collected, and Future Expected Premiums Earned, Net of Reinsurance (Detail) - Successor [Member] $ in Thousands | Sep. 30, 2018USD ($) |
Future premiums expected to be collected, December 31, 2018 | $ 14,031 |
Future premiums expected to be collected, December 31, 2019 | 52,211 |
Future premiums expected to be collected, December 31, 2020 | 49,314 |
Future premiums expected to be collected, December 31, 2021 | 42,999 |
Future premiums expected to be collected, December 31, 2022 | 41,004 |
Future premiums expected to be collected, December 31, 2027 | 181,091 |
Future premiums expected to be collected, December 31, 2032 | 140,309 |
Future premiums expected to be collected, December 31, 2037 | 79,454 |
Future premiums expected to be collected, December 31, 2042 | 28,784 |
Future premiums expected to be collected, December 31, 2047 | 13,631 |
Future premiums expected to be collected, December 31, 2052 | 3,621 |
Future premiums expected to be collected, December 31, 2057 | 91 |
Future premiums expected to be collected, Total | 646,540 |
Future expected premiums to be earned, net of reinsurance, December 31, 2018 | 14,672 |
Future expected premiums to be earned, net of reinsurance, December 31, 2019 | 55,831 |
Future expected premiums to be earned, net of reinsurance, December 31, 2020 | 52,205 |
Future expected premiums to be earned, net of reinsurance, December 31, 2021 | 47,630 |
Future expected premiums to be earned, net of reinsurance, December 31, 2022 | 44,441 |
Future expected premiums to be earned, net of reinsurance, December 31, 2027 | 180,584 |
Future expected premiums to be earned, net of reinsurance, December 31, 2032 | 120,582 |
Future expected premiums to be earned, net of reinsurance, December 31, 2037 | 67,135 |
Future expected premiums to be earned, net of reinsurance, December 31, 2042 | 23,960 |
Future expected premiums to be earned, net of reinsurance, December 31, 2047 | 12,632 |
Future expected premiums to be earned, net of reinsurance, December 31, 2052 | 4,647 |
Future expected premiums to be earned, net of reinsurance, December 31, 2057 | 297 |
Future expected premiums to be earned, net of reinsurance, Total | $ 624,616 |
Financial Guarantee Insurance_7
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts - Components of Loss and Loss Expense Reserves and Subrogation Recoverable (Details) - Successor [Member] - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 185 | $ (47) | $ 339 | |
Loss Reserves Ceded To Reinsurers | 25,326 | 46,023 | 40,658 | $ 30,767 |
Policyholder Benefits and Claims Incurred, Ceded | 123 | 21,189 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | (55,453) | $ 3,954,332 | 4,073,144 | $ 3,665,271 |
Loss and loss expense reserves | 1,868,484 | 4,745,015 | ||
Subrogation recoverable | (1,898,611) | (631,213) | ||
Claim liability reported on Balance Sheet, before reinsurance | (30,127) | 4,113,802 | ||
Unpaid Claims-Claims [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | 0 | 2,411,632 | ||
Subrogation recoverable | 0 | 615,391 | ||
Claim liability reported on Balance Sheet, before reinsurance | 0 | 3,027,023 | ||
Unpaid Claims-Accrued Interest [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | 0 | 667,988 | ||
Subrogation recoverable | 0 | 171,755 | ||
Claim liability reported on Balance Sheet, before reinsurance | 0 | 839,743 | ||
Present Value of Expected Net Cash Flows- Claims and Loss Expenses [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | 2,278,763 | 2,855,010 | ||
Subrogation recoverable | 182,865 | 102,171 | ||
Claim liability reported on Balance Sheet, before reinsurance | 2,461,628 | 2,957,181 | ||
Present Value of Expected Net Cash Flows-Recoveries [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | (305,024) | (1,054,113) | ||
Subrogation recoverable | (2,081,476) | (1,520,530) | ||
Claim liability reported on Balance Sheet, before reinsurance | (2,386,500) | (2,574,643) | ||
Unearned Premium Reserve [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | (105,255) | (135,502) | ||
Subrogation recoverable | 0 | 0 | ||
Claim liability reported on Balance Sheet, before reinsurance | $ (105,255) | $ (135,502) |
Financial Guarantee Insurance_8
Financial Guarantee Insurance Contracts - Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance (Detail) € in Thousands, $ in Thousands | 9 Months Ended | |||||||
Sep. 30, 2018USD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2017USD ($) | Sep. 30, 2017EUR (€) | Sep. 30, 2018USD ($) | Feb. 12, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | |
Successor [Member] | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Beginning gross loss and loss expense reserves | $ 4,113,802 | $ 3,696,038 | ||||||
Less reinsurance on loss and loss expense reserves | 40,658 | 30,767 | ||||||
Beginning balance of net loss and loss expense reserves | 4,073,144 | 3,665,271 | ||||||
Current Year Claims and Claims Adjustment Expense | 976 | 5,328 | ||||||
Prior Year Claims and Claims Adjustment Expense | (182,291) | 405,589 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | (181,315) | 410,917 | ||||||
Claim and loss expense payments, net of subrogation and reinsurance | (143) | (330) | ||||||
Claim and loss expense (payments) recoveries, net of subrogation and reinsurance | (3,937,561) | (148,082) | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 3,937,704 | 148,412 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Foreign Currency Translation Gain (Loss) | (9,578) | 26,556 | ||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 4,073,144 | 3,665,271 | $ (55,453) | $ 4,073,144 | $ 3,954,332 | |||
Add reinsurance on loss and loss expense reserves | 25,326 | 46,023 | ||||||
Ending gross loss and loss expense reserves | (30,127) | 4,000,355 | ||||||
Policyholder Benefits and Claims Incurred, Ceded | 123 | 21,189 | ||||||
Net Incurred RMBS Subrogation Recoveries | (56,928) | (62,451) | ||||||
SatisfactionAndDischargeOfSegregatedAccountDeferredPrincipalAmounts | $ 3,000,158 | |||||||
SatisfactionAndDischargeOfSegregatedAccountDeferredInterestAmounts | 856,834 | |||||||
Loss and Loss Expense Benefit on Settled Deferred Amounts | $ 288,204 | |||||||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 185 | $ 339 | $ (47) | |||||
Euro Member Countries, Euro | ||||||||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||||||
Ending gross loss and loss expense reserves | $ 2,475 | € 2,131 | $ 21,142 | € 17,891 |
Financial Guarantee Insurance_9
Financial Guarantee Insurance Contracts - Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable (Detail) - Successor [Member] $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Policies | Dec. 31, 2017USD ($)Policies | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Loss Reserves Ceded To Reinsurers | $ 25,326 | $ 40,658 | $ 46,023 | $ 30,767 |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 185 | $ 339 | $ (47) | |
Number of policies | Policies | 238 | 277 | ||
Remaining weighted-average contract period (in years) | 16 years | 17 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 9,349,047 | $ 11,687,070 | ||
Interest | 10,408,781 | 11,197,612 | ||
Total | 19,757,828 | 22,884,682 | ||
Gross undiscounted claim liability | 3,618,286 | 8,025,561 | ||
Discount, gross claim liability | 1,261,877 | 1,291,005 | ||
Gross claim liability before all subrogation and before reinsurance | 2,356,409 | 6,734,556 | ||
Less: | ||||
Gross RMBS subrogation | (1,814,915) | (1,857,502) | ||
Discount, RMBS subrogation | 38,667 | 23,115 | ||
Discounted RMBS subrogation, before reinsurance | (1,776,248) | (1,834,387) | ||
Less: | ||||
Gross other subrogation | (743,518) | (827,078) | ||
Discount, other subrogation | 133,266 | 86,822 | ||
Discounted other subrogation, before reinsurance | (610,252) | (740,256) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | (30,091) | 4,159,913 | ||
Less: Unearned premium reserves | (105,255) | (135,502) | ||
Plus: Loss adjustment expenses reserves | 105,219 | 89,391 | ||
Claim liability reported on Balance Sheet, before reinsurance | (30,127) | 4,113,802 | ||
Reinsurance recoverable reported on Balance Sheet | $ 25,511 | $ 40,997 | ||
I/SL [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 33 | 26 | ||
Remaining weighted-average contract period (in years) | 9 years | 10 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 1,058,679 | $ 1,046,267 | ||
Interest | 493,847 | 531,657 | ||
Total | 1,552,526 | 1,577,924 | ||
Gross undiscounted claim liability | 4,130 | 4,434 | ||
Discount, gross claim liability | 552 | 465 | ||
Gross claim liability before all subrogation and before reinsurance | 3,578 | 3,969 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | 0 | 0 | ||
Discount, other subrogation | 0 | 0 | ||
Discounted other subrogation, before reinsurance | 0 | 0 | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 3,578 | 3,969 | ||
Less: Unearned premium reserves | (1,302) | (2,126) | ||
Plus: Loss adjustment expenses reserves | 2,117 | 16,116 | ||
Claim liability reported on Balance Sheet, before reinsurance | 4,393 | 17,959 | ||
Reinsurance recoverable reported on Balance Sheet | $ 275 | $ 202 | ||
IA [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 25 | 20 | ||
Remaining weighted-average contract period (in years) | 22 years | 23 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 535,358 | $ 531,190 | ||
Interest | 558,077 | 584,098 | ||
Total | 1,093,435 | 1,115,288 | ||
Gross undiscounted claim liability | 55,554 | 56,659 | ||
Discount, gross claim liability | 14,667 | 13,095 | ||
Gross claim liability before all subrogation and before reinsurance | 40,887 | 43,564 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (9,585) | (7,990) | ||
Discount, other subrogation | 6,716 | 5,169 | ||
Discounted other subrogation, before reinsurance | (2,869) | (2,821) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 38,018 | 40,743 | ||
Less: Unearned premium reserves | (9,656) | (9,990) | ||
Plus: Loss adjustment expenses reserves | 3,240 | 3,242 | ||
Claim liability reported on Balance Sheet, before reinsurance | 31,602 | 33,995 | ||
Reinsurance recoverable reported on Balance Sheet | $ 4,279 | $ 4,894 | ||
II [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 11 | 26 | ||
Remaining weighted-average contract period (in years) | 7 years | 10 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 356,714 | $ 1,199,909 | ||
Interest | 151,446 | 413,045 | ||
Total | 508,160 | 1,612,954 | ||
Gross undiscounted claim liability | 37,858 | 77,289 | ||
Discount, gross claim liability | 3,450 | 12,250 | ||
Gross claim liability before all subrogation and before reinsurance | 34,408 | 65,039 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (23) | (9,371) | ||
Discount, other subrogation | 0 | 2,550 | ||
Discounted other subrogation, before reinsurance | (23) | (6,821) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 34,385 | 58,218 | ||
Less: Unearned premium reserves | (1,688) | (12,238) | ||
Plus: Loss adjustment expenses reserves | 2,256 | 665 | ||
Claim liability reported on Balance Sheet, before reinsurance | 34,953 | 46,645 | ||
Reinsurance recoverable reported on Balance Sheet | $ 8,736 | $ 9,424 | ||
III [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 18 | 22 | ||
Remaining weighted-average contract period (in years) | 22 years | 24 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 1,744,554 | $ 1,998,861 | ||
Interest | 6,980,654 | 7,182,715 | ||
Total | 8,725,208 | 9,181,576 | ||
Gross undiscounted claim liability | 1,101,833 | 1,412,976 | ||
Discount, gross claim liability | 513,413 | 643,897 | ||
Gross claim liability before all subrogation and before reinsurance | 588,420 | 769,079 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (123,326) | (53,070) | ||
Discount, other subrogation | 59,749 | 8,349 | ||
Discounted other subrogation, before reinsurance | (63,577) | (44,721) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 524,843 | 724,358 | ||
Less: Unearned premium reserves | (36,993) | (46,086) | ||
Plus: Loss adjustment expenses reserves | 12,101 | 13,331 | ||
Claim liability reported on Balance Sheet, before reinsurance | 499,951 | 691,603 | ||
Reinsurance recoverable reported on Balance Sheet | $ 27,837 | $ 38,465 | ||
IV [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 148 | 179 | ||
Remaining weighted-average contract period (in years) | 13 years | 13 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 5,609,816 | $ 6,862,281 | ||
Interest | 2,209,528 | 2,469,765 | ||
Total | 7,819,344 | 9,332,046 | ||
Gross undiscounted claim liability | 2,359,788 | 6,409,340 | ||
Discount, gross claim liability | 724,685 | 616,559 | ||
Gross claim liability before all subrogation and before reinsurance | 1,635,103 | 5,792,781 | ||
Less: | ||||
Gross RMBS subrogation | (1,814,915) | (1,857,502) | ||
Discount, RMBS subrogation | 38,667 | 23,115 | ||
Discounted RMBS subrogation, before reinsurance | (1,776,248) | (1,834,387) | ||
Less: | ||||
Gross other subrogation | (597,581) | (743,456) | ||
Discount, other subrogation | 62,645 | 67,045 | ||
Discounted other subrogation, before reinsurance | (534,936) | (676,411) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | (676,081) | 3,281,983 | ||
Less: Unearned premium reserves | (55,391) | (64,786) | ||
Plus: Loss adjustment expenses reserves | 85,505 | 56,037 | ||
Claim liability reported on Balance Sheet, before reinsurance | (645,967) | 3,273,234 | ||
Reinsurance recoverable reported on Balance Sheet | $ (15,616) | $ (11,988) | ||
V [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 3 | 4 | ||
Remaining weighted-average contract period (in years) | 3 years | 4 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 43,926 | $ 48,562 | ||
Interest | 15,229 | 16,332 | ||
Total | 59,155 | 64,894 | ||
Gross undiscounted claim liability | 59,123 | 64,863 | ||
Discount, gross claim liability | 5,110 | 4,739 | ||
Gross claim liability before all subrogation and before reinsurance | 54,013 | 60,124 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (13,003) | (13,191) | ||
Discount, other subrogation | 4,156 | 3,709 | ||
Discounted other subrogation, before reinsurance | (8,847) | (9,482) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 45,166 | 50,642 | ||
Less: Unearned premium reserves | (225) | (276) | ||
Plus: Loss adjustment expenses reserves | 0 | 0 | ||
Claim liability reported on Balance Sheet, before reinsurance | 44,941 | 50,366 | ||
Reinsurance recoverable reported on Balance Sheet | $ 0 | $ 0 |
Financial Guarantee Insuranc_10
Financial Guarantee Insurance Contracts - Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable (Phantom) (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Loss Reserves Ceded To Reinsurers | $ 25,326 | $ 40,658 | $ 46,023 | $ 30,767 |
Loss and loss expense reserves | 1,868,484 | 4,745,015 | ||
Subrogation recoverable | (1,898,611) | (631,213) | ||
Liability for Claims | (30,127) | 4,113,802 | 4,000,355 | $ 3,696,038 |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 185 | $ 339 | $ (47) |
Financial Guarantee Insuranc_11
Financial Guarantee Insurance Contracts - Summary of Balance of RMBS Subrogation Recoveries and Related Claim Liabilities, by Estimation Approach (Detail) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Balance Of Rmbs Subrogation Recoveries Net Of Reinsurance | $ (1,749,808) | $ (1,806,736) | ||
Successor [Member] | ||||
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Subrogation recoveries | 1,776,248 | 1,834,387 | ||
Successor [Member] | Random Samples [Member] | ||||
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Gross loss reserve before subrogation recoveries | 131,245 | 1,366,483 | ||
Subrogation recoveries | 1,776,248 | 1,834,387 | ||
Gross loss reserve after subrogation recoveries | (1,645,003) | (467,904) | ||
Random Samples [Member] | Successor [Member] | ||||
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Subrogation recoveries | 1,776,248 | $ 1,844,116 | $ 1,834,387 | $ 1,907,035 |
Other Changes Rmbs Subrogation | $ (58,139) | $ (62,919) |
Financial Guarantee Insuranc_12
Financial Guarantee Insurance Contracts - Summary of Rollforward of RMBS Subrogation, by Estimation Approach (Detail) - Successor [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Subrogation By Estimation Approach [Roll Forward] | |||
Discounted RMBS subrogation (gross of reinsurance), beginning balance | $ 1,834,387 | ||
Changes recognized | |||
Discounted RMBS subrogation (gross of reinsurance), ending balance | 1,776,248 | $ 1,834,387 | |
Random Samples [Member] | |||
Subrogation By Estimation Approach [Roll Forward] | |||
Discounted RMBS subrogation (gross of reinsurance), beginning balance | 1,834,387 | $ 1,907,035 | 1,907,035 |
Changes recognized | |||
Impact of sponsor actions | 0 | ||
Other Changes Rmbs Subrogation | (58,139) | (62,919) | |
Discounted RMBS subrogation (gross of reinsurance), ending balance | $ 1,776,248 | $ 1,844,116 | $ 1,834,387 |
Financial Guarantee Insuranc_13
Financial Guarantee Insurance Contracts - Estimated Future Amortization Expense for Insurance Intangible Asset (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Amortization Of Intangible Assets [Line Items] | |||||
Amortization of insurance intangible assets | $ 26,421 | $ 45,690 | $ 78,299 | $ 116,686 | |
Intangible Assets, Gross (Excluding Goodwill) | $ 1,562,753 | $ 1,562,753 | $ 1,581,156 | ||
Accumulated amortization on insurance intangible asset | 807,019 | 807,019 | 734,183 | ||
2,016 | 17,243 | 17,243 | |||
2,017 | 65,216 | 65,216 | |||
2,018 | 60,350 | 60,350 | |||
2,019 | 54,975 | 54,975 | |||
2,020 | 51,132 | 51,132 | |||
Thereafter | 506,818 | 506,818 | |||
Insurance intangible asset | $ 755,734 | $ 755,734 | $ 846,973 |
Financial Guarantee Insuranc_14
Financial Guarantee Insurance Contracts Earned Premiums by Geographic Location (Details) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 25,640 | $ 52,989 | $ 82,359 | $ 143,754 |
United States [Member] | Reportable Geographical Components [Member] | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 19,539 | 31,929 | 64,009 | 108,556 |
United Kingdom [Member] | Reportable Geographical Components [Member] | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 4,523 | 17,273 | 14,337 | 28,094 |
Other International [Member] | Reportable Geographical Components [Member] | ||||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 1,578 | $ 3,787 | $ 4,013 | $ 7,104 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities (Detail) - Successor [Member] - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets: | ||
Fixed income securities | $ 3,867,547,000 | $ 5,309,161,000 |
Short term investments | 562,060,000 | 557,270,000 |
Other investments | 411,604,000 | 431,630,000 |
Derivative assets | 50,699,000 | |
Other assets | 4,887,000 | 5,979,000 |
Long-term Debt | 2,937,771,000 | 991,696,000 |
Financial liabilities: | ||
Derivative liabilities | 61,768,000 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Loans | 4,563,091,000 | 11,529,384,000 |
Derivative assets | 61,543,000 | |
Long-term Debt | 5,585,860,000 | 12,160,544,000 |
Financial liabilities: | ||
Derivative liabilities | 1,657,173,000 | |
Total Fair Value [Member] | ||
Financial assets: | ||
Cash | 52,505,000 | 623,703,000 |
Loans | 12,189,000 | 10,284,000 |
Other assets | 4,887,000 | 5,979,000 |
Total financial assets | 11,637,968,000 | 20,835,968,000 |
Long-term Debt | 1,369,499,000 | |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 786,156,000 | 4,842,402,000 |
Long-term debt | 3,333,145,000 | |
Total financial liabilities | 11,423,665,000 | 20,660,491,000 |
Total Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 1,024,000 | 978,000 |
Loans | 4,563,091,000 | 11,529,384,000 |
Financial liabilities: | ||
Long-term debt | 5,585,860,000 | 12,160,544,000 |
Total Fair Value [Member] | Future [Member] | ||
Financial assets: | ||
Derivative assets | 0 | |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash | 52,505,000 | 623,703,000 |
Loans | 10,082,000 | 10,358,000 |
Other assets | 4,887,000 | 5,979,000 |
Total financial assets | 11,656,736,000 | 20,853,695,000 |
Long-term Debt | 1,428,680,000 | |
Financial liabilities: | ||
Liabilities for net financial guarantees written | (644,090,000) | 3,435,438,000 |
Long-term debt | 3,294,482,000 | |
Total financial liabilities | 9,954,756,000 | 19,312,708,000 |
Reported Value Measurement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 1,024,000 | 978,000 |
Loans | 4,563,091,000 | 11,529,384,000 |
Financial liabilities: | ||
Long-term debt | 5,585,860,000 | 12,160,544,000 |
Reported Value Measurement [Member] | Future [Member] | ||
Financial assets: | ||
Derivative assets | 0 | |
Other Assets [Member] | Total Fair Value [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 50,699,000 | 73,199,000 |
Other Assets [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 50,699,000 | 73,199,000 |
Interest Rate Swaps - Liability Position [Member] | Total Fair Value [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets - interest rate swaps - liability position | (437,000) | |
Interest Rate Swaps - Liability Position [Member] | Total Fair Value [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Derivative assets | 61,543,000 | 54,877,000 |
Interest Rate Swaps - Liability Position [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets - interest rate swaps - liability position | (437,000) | |
Interest Rate Swaps - Liability Position [Member] | Reported Value Measurement [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Derivative assets | 61,543,000 | 54,877,000 |
Level 1 [Member] | ||
Financial assets: | ||
Cash | 31,094,000 | 615,073,000 |
Loans | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 675,497,000 | 1,173,321,000 |
Long-term Debt | 0 | |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term debt | 0 | |
Total financial liabilities | 428,000 | 1,348,000 |
Level 1 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 1,024,000 | 978,000 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term debt | 0 | 0 |
Level 1 [Member] | Future [Member] | ||
Financial assets: | ||
Derivative assets | 0 | |
Level 1 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 1 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets - interest rate swaps - liability position | 0 | |
Level 1 [Member] | Interest Rate Swaps - Liability Position [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 2 [Member] | ||
Financial assets: | ||
Cash | 21,411,000 | 8,630,000 |
Loans | 0 | 0 |
Other assets | 0 | 0 |
Total financial assets | 3,221,212,000 | 4,005,195,000 |
Long-term Debt | 1,046,511,000 | |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term debt | 2,968,246,000 | |
Total financial liabilities | 10,039,727,000 | 12,735,499,000 |
Level 2 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term debt | 5,354,580,000 | 9,402,856,000 |
Level 2 [Member] | Future [Member] | ||
Financial assets: | ||
Derivative assets | 0 | |
Level 2 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 7,287,000 | 11,825,000 |
Level 2 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets - interest rate swaps - liability position | (437,000) | |
Level 2 [Member] | Interest Rate Swaps - Liability Position [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Derivative assets | 61,543,000 | 54,877,000 |
Level 3 [Member] | ||
Financial assets: | ||
Cash | 0 | 0 |
Loans | 12,189,000 | 10,284,000 |
Other assets | 4,887,000 | 5,979,000 |
Total financial assets | 7,432,005,000 | 15,347,011,000 |
Long-term Debt | 322,988,000 | |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 786,156,000 | 4,842,402,000 |
Long-term debt | 364,899,000 | |
Total financial liabilities | 1,383,510,000 | 7,923,644,000 |
Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Loans | 4,563,091,000 | 11,529,384,000 |
Financial liabilities: | ||
Long-term debt | 231,280,000 | 2,757,688,000 |
Level 3 [Member] | Future [Member] | ||
Financial assets: | ||
Derivative assets | 0 | |
Level 3 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 43,412,000 | 61,374,000 |
Level 3 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets - interest rate swaps - liability position | 0 | |
Level 3 [Member] | Interest Rate Swaps - Liability Position [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Municipal Bonds [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 970,464,000 | 779,834,000 |
Municipal Bonds [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 970,464,000 | 779,834,000 |
Municipal Bonds [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Municipal Bonds [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 970,464,000 | 779,834,000 |
Municipal Bonds [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Corporate Obligations [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 1,319,368,000 | 860,075,000 |
Corporate Obligations [Member] | Total Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Fixed income securities | 2,718,377,000 | 2,914,145,000 |
Corporate Obligations [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 1,319,368,000 | 860,075,000 |
Corporate Obligations [Member] | Reported Value Measurement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Fixed income securities | 2,718,377,000 | 2,914,145,000 |
Corporate Obligations [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 450,000 |
Corporate Obligations [Member] | Level 1 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Corporate Obligations [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 1,319,368,000 | 859,625,000 |
Corporate Obligations [Member] | Level 2 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Corporate Obligations [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Corporate Obligations [Member] | Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial assets: | ||
Fixed income securities | 2,718,377,000 | 2,914,145,000 |
Foreign Obligations [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 34,007,000 | 26,543,000 |
Foreign Obligations [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 34,007,000 | 26,543,000 |
Foreign Obligations [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 32,906,000 | 25,615,000 |
Foreign Obligations [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 1,101,000 | 928,000 |
Foreign Obligations [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
US Government Debt Securities [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 92,207,000 | 85,408,000 |
Fixed income securities, pledged as collateral | 84,186,000 | 99,719,000 |
US Government Debt Securities [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 92,207,000 | 85,408,000 |
Fixed income securities, pledged as collateral | 84,186,000 | 99,719,000 |
US Government Debt Securities [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 92,207,000 | 85,408,000 |
Fixed income securities, pledged as collateral | 84,186,000 | 99,719,000 |
US Government Debt Securities [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Fixed income securities, pledged as collateral | 0 | 0 |
US Government Debt Securities [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Fixed income securities, pledged as collateral | 0 | 0 |
Residential Mortgage-Backed Securities [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 278,775,000 | 2,251,333,000 |
Residential Mortgage-Backed Securities [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 278,775,000 | 2,251,333,000 |
Residential Mortgage-Backed Securities [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Residential Mortgage-Backed Securities [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 278,775,000 | 1,515,316,000 |
Residential Mortgage-Backed Securities [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 736,017,000 |
Collateralized Debt Obligations [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 87,721,000 | 51,037,000 |
Collateralized Debt Obligations [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 87,721,000 | 51,037,000 |
Collateralized Debt Obligations [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Collateralized Debt Obligations [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 87,721,000 | 51,037,000 |
Collateralized Debt Obligations [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Asset-backed Securities [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Fixed income securities | 438,759,000 | 597,942,000 |
Asset-backed Securities [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Fixed income securities | 438,759,000 | 597,942,000 |
Asset-backed Securities [Member] | Level 1 [Member] | ||
Financial assets: | ||
Fixed income securities | 0 | 0 |
Asset-backed Securities [Member] | Level 2 [Member] | ||
Financial assets: | ||
Fixed income securities | 366,665,000 | 525,402,000 |
Asset-backed Securities [Member] | Level 3 [Member] | ||
Financial assets: | ||
Fixed income securities | 72,094,000 | 72,540,000 |
Short-Term [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Short term investments | 562,060,000 | 557,270,000 |
Short-Term [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Short term investments | 562,060,000 | 557,270,000 |
Short-Term [Member] | Level 1 [Member] | ||
Financial assets: | ||
Short term investments | 454,746,000 | 389,299,000 |
Short-Term [Member] | Level 2 [Member] | ||
Financial assets: | ||
Short term investments | 107,314,000 | 167,971,000 |
Short-Term [Member] | Level 3 [Member] | ||
Financial assets: | ||
Short term investments | 0 | 0 |
Other [Member] | Total Fair Value [Member] | ||
Financial assets: | ||
Other investments | 390,729,000 | 413,977,000 |
Other [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Other investments | 411,604,000 | 431,630,000 |
Other [Member] | Level 1 [Member] | ||
Financial assets: | ||
Other investments | 63,520,000 | 56,498,000 |
Other [Member] | Level 2 [Member] | ||
Financial assets: | ||
Other investments | 0 | 29,750,000 |
Other [Member] | Level 3 [Member] | ||
Financial assets: | ||
Other investments | 17,955,000 | 17,288,000 |
Future [Member] | Total Fair Value [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 428,000 | |
Future [Member] | Total Fair Value [Member] | Future [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,348,000 | |
Future [Member] | Reported Value Measurement [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 428,000 | |
Future [Member] | Reported Value Measurement [Member] | Future [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,348,000 | |
Future [Member] | Level 1 [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 428,000 | |
Future [Member] | Level 1 [Member] | Future [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,348,000 | |
Future [Member] | Level 2 [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Future [Member] | Level 2 [Member] | Future [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Future [Member] | Level 3 [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Future [Member] | Level 3 [Member] | Future [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Total Fair Value [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Derivative liabilities | 59,728,000 | |
Interest Rate Swap [Member] | Total Fair Value [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,657,173,000 | |
Interest Rate Swap [Member] | Reported Value Measurement [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Derivative liabilities | 59,728,000 | |
Interest Rate Swap [Member] | Reported Value Measurement [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,657,173,000 | |
Interest Rate Swap [Member] | Other Assets [Member] | Total Fair Value [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | (627,000) | |
Interest Rate Swap [Member] | Other Assets [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | (627,000) | |
Interest Rate Swap [Member] | Interest Rate Swaps - Liability Position [Member] | Total Fair Value [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 81,495,000 | |
Interest Rate Swap [Member] | Interest Rate Swaps - Liability Position [Member] | Total Fair Value [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 2,205,264,000 | |
Interest Rate Swap [Member] | Interest Rate Swaps - Liability Position [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 81,495,000 | |
Interest Rate Swap [Member] | Interest Rate Swaps - Liability Position [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 2,205,264,000 | |
Interest Rate Swap [Member] | Level 1 [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 1 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 1 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Interest Rate Swap [Member] | Level 1 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 1 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 2 [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | ||
Derivative liabilities | 59,728,000 | |
Interest Rate Swap [Member] | Level 2 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,657,173,000 | |
Interest Rate Swap [Member] | Level 2 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | (627,000) | |
Interest Rate Swap [Member] | Level 2 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 81,495,000 | |
Interest Rate Swap [Member] | Level 2 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 2,205,264,000 | |
Interest Rate Swap [Member] | Level 3 [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 3 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities - interest rate swaps - asset position | 0 | |
Interest Rate Swap [Member] | Level 3 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Interest Rate Swap [Member] | Level 3 [Member] | Interest Rate Swaps - Liability Position [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Credit Derivatives [Member] | Total Fair Value [Member] | Credit Derivatives [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,175,000 | 566,000 |
Credit Derivatives [Member] | Reported Value Measurement [Member] | Credit Derivatives [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,175,000 | 566,000 |
Credit Derivatives [Member] | Level 1 [Member] | Credit Derivatives [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Credit Derivatives [Member] | Level 2 [Member] | Credit Derivatives [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Credit Derivatives [Member] | Level 3 [Member] | Credit Derivatives [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,175,000 | 566,000 |
Investments Measured at NAV as a Practical Expedient [Member] | ||
Financial assets: | ||
Other investments | $ 309,254,000 | $ 310,441,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)Contract | Dec. 31, 2017USD ($) | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Additional basis point fee need to receive for issuing a CDS on obligation | 0.05% | |
Additional basis points fee increase on change of reference obligation spread | 0.15% | |
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 2.80% | 2.50% |
Minimum [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Basis point fee received for issuing a CDS on reference obligation base fee | 0.20% | |
Credit spread of reference obligation of a base transaction | 0.80% | |
Maximum [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Basis point fee received for issuing a CDS on reference obligation hypothetical fee | 0.25% | |
Credit spread of reference obligation of revised transaction | 1.00% | |
Successor [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other investments | $ 411,604 | $ 431,630 |
Derivative liabilities | 61,768 | |
Available-for-sale Securities | $ 3,867,547 | $ 5,309,161 |
Successor [Member] | Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using dealer quotes | 7.00% | 6.00% |
PercentageofInvestedPortfiliowhereProjectedCashFlowsConsistSolelyofDeferredAmountsandInterest | 13.00% | |
Successor [Member] | Residential Mortgage-Backed Securities [Member] | Level 3 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 736,017 |
Successor [Member] | Corporate Obligations [Member] | Level 3 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Available-for-sale Securities | 0 | 0 |
Successor [Member] | Collateralized Debt Obligations [Member] | Level 3 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Available-for-sale Securities | $ 0 | $ 0 |
Successor [Member] | Minimum [Member] | Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using internal valuation models | 2.00% | 15.00% |
Successor [Member] | Maximum [Member] | Fixed Income Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Percentage of investment portfolio valued using external pricing services | 91.00% | 79.00% |
Variable Interest Entity [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 3.10% | 3.10% |
Variable Interest Entity, Primary Beneficiary [Member] | Successor [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Derivative liabilities | $ 1,657,173 | |
Variable Interest Entity, Primary Beneficiary [Member] | Successor [Member] | Corporate Obligations [Member] | Level 3 [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Available-for-sale Securities | $ 2,718,377 | $ 2,914,145 |
Credit Derivatives [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Number Of Credit Derivative Contracts On Adversely Classified Credit Listing | Contract | 0 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Valuation Inputs for Fixed Income Securities Classified as Level 3 (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Available-for-sale Securities | $ 3,867,547 | $ 3,867,547 | $ 5,309,161 | |||||
Ambac insured Re-remic [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Coupon rate | 2.05% | |||||||
Fair Value Inputs Maturity | 19 days | |||||||
Yield | 10.00% | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (113,996) | $ 323,192 | ||||||
Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 7,169,406 | $ 12,232,247 | 7,169,406 | 12,232,247 | $ 12,561,185 | $ 11,369,112 | $ 11,110,155 | $ 12,044,498 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 3,709,113 | 3,709,113 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (36,221) | 66,569 | (84,608) | 410,104 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (122,362) | 332,207 | (435,776) | 934,431 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | (79,319) | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 73,053 | 211,027 | 1,156,973 | (459,940) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 5,309 | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (36,696) | 58,097 | (129,521) | 327,787 | ||||
Fair Value, Inputs, Level 3 [Member] | RMBS Cash Flows Consisting of Deferred Amounts [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Available-for-sale Securities | 709,950 | |||||||
Fair Value, Inputs, Level 3 [Member] | Ambac insured Re-remic [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Available-for-sale Securities | 26,067 | |||||||
Fair Value, Inputs, Level 3 [Member] | Corporate Obligations [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Available-for-sale Securities | 0 | 0 | 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Corporate Obligations [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,622,566 | |||||||
Available-for-sale Securities | 2,718,377 | 2,718,377 | 2,914,145 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (49,518) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 228,487 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (15,927) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (49,518) | |||||||
Derivative [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 42,237 | 53,089 | 42,237 | 53,089 | 60,808 | (100,282) | 45,613 | 52,729 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (2,080) | 2,031 | (14,137) | 53,329 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 1,296 | 1,671 | 4,434 | 100,042 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | 0 | 0 | ||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (2,179) | 1,889 | (14,433) | 5,640 | ||||
Derivative [Member] | Interest Rate Swap [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 43,412 | 43,412 | 61,374 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (13,824) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 4,138 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (13,824) | |||||||
Derivative [Member] | Credit Derivative [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (1,175) | (1,175) | $ (566) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (313) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 296 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (609) | |||||||
Credit Derivative [Member] | Derivative [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (8,961) | (8,961) | (15,349) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 7,855 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (1,467) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (75) | |||||||
Credit Derivative [Member] | Derivative [Member] | Credit Derivative [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (1,175) | (8,961) | (1,175) | (8,961) | (1,326) | (9,006) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 250 | 179 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 99 | 134 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 151 | 37 | ||||||
Interest Rate Swap [Member] | Derivative [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 62,050 | 62,050 | $ (84,933) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 45,474 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 101,509 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 5,715 | |||||||
Interest Rate Swap [Member] | Derivative [Member] | Interest Rate Swap [Member] | ||||||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 43,412 | 62,050 | $ 43,412 | $ 62,050 | $ 46,939 | $ 61,735 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (2,330) | 1,852 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 1,197 | 1,537 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | $ (2,330) | $ 1,852 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Information about Described Model Inputs Used to Determine Fair Value of Each Class of Credit Derivatives (Detail) - Successor [Member] $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018USD ($)Transactions$ / shares | Dec. 31, 2017USD ($)Transactions$ / shares | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Number of Instruments Held | Transactions | 2 | 2 |
Other investments | $ 411,604 | $ 431,630 |
Fair value of derivative liabilities | 59,363 | |
Other [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Notional outstanding | $ 303,650 | $ 325,890 |
Weighted average reference obligation price | $ / shares | $ 98.3 | $ 99.3 |
Weighted average life (WAL) in years | 5 years 10 months 24 days | 6 years 6 months |
Weighted average credit rating | A | A |
Weighted average relative change ratio | 23.10% | 23.60% |
CVA percentage | 6.75% | 9.64% |
Fair value of derivative liabilities | $ 1,175 | $ 566 |
Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments | 33,030 | 33,154 |
Hedge Funds, Multi-strategy [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments | 0 | 53,054 |
Interest Rate Contract [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments | 179,856 | 136,603 |
Illiquid Investments [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Other investments | $ 66,922 | $ 67,787 |
Asset-backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs Coupon Rate | 5.97% | 5.97% |
Fair Value Inputs Maturity | 16 years 5 months 23 days | 17 years 7 days |
Fair Value Inputs Yield | 12.00% | 12.00% |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value of derivative liabilities | $ 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | European Transactions [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs Coupon Rate | 2.47% | 0.40% |
Fair Value Inputs Maturity | 17 years 10 months 20 days | 15 years 3 months 10 days |
Fair Value Inputs Yield | 3.35% | 4.82% |
Fair Value Measurements - Inf_2
Fair Value Measurements - Information about Valuation Inputs for Variable Interest Entity Assets and Liabilities Classified as Level 3 (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | $ 7,169,406 | $ 12,232,247 | $ 7,169,406 | $ 12,232,247 | $ 11,110,155 | $ 12,561,185 | $ 12,044,498 | $ 11,369,112 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (36,221) | 66,569 | (84,608) | 410,104 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (122,362) | 332,207 | (435,776) | 934,431 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 79,319 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (73,053) | (211,027) | (1,156,973) | 459,940 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | (5,309) | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (36,696) | 58,097 | (129,521) | 327,787 | ||||
Fair Value, Inputs, Level 3 [Member] | Investments [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 72,094 | 775,809 | 72,094 | 775,809 | 68,802 | 808,557 | 765,682 | 762,703 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 376 | 8,330 | 35,842 | 34,628 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 3,218 | 8,557 | (52,804) | 25,654 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 79,319 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (302) | (6,760) | (714,192) | 25,716 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | (5,309) | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 0 | 0 | ||||||
Fair Value, Inputs, Level 3 [Member] | European ABS Transactions [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Of Consolidated Variable Interest Entity Debt Obligations Valued Using Unobservable Inputs By Asset Class | 231,280 | 2,757,688 | ||||||
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 4,887 | 6,337 | 4,887 | 6,337 | 5,255 | 5,979 | 6,691 | 7,382 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (368) | (354) | (1,092) | (1,045) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (368) | (354) | (1,092) | (1,045) | ||||
Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 42,237 | 53,089 | 42,237 | 53,089 | 60,808 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (14,137) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (4,434) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (14,433) | |||||||
Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 11,557,788 | 11,557,788 | ||||||
Long-term Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (2,946,384) | (2,946,384) | ||||||
Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (100,282) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 53,329 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (100,042) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 5,640 | |||||||
Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 42,237 | 53,089 | 42,237 | 53,089 | 45,613 | 52,729 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (2,080) | 2,031 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (1,296) | (1,671) | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (2,179) | 1,889 | ||||||
Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,785,608 | 2,785,608 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (113,996) | 323,192 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 10,658,963 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 515,904 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 913,477 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 530,556 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 515,904 | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,622,566 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (49,518) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 228,487 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 15,927 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (49,518) | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 4,563,091 | 4,563,091 | 11,529,384 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (204,561) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (371,610) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (443,657) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (70,659) | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 4,563,091 | 11,557,788 | 4,563,091 | 11,557,788 | 10,751,199 | 11,301,298 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (29,439) | 137,513 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (122,908) | 327,087 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (89,296) | (208,110) | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (29,439) | 137,513 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | Long-term Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | (231,280) | (2,946,384) | (231,280) | (2,946,384) | (2,517,638) | (2,757,688) | (2,804,218) | $ (2,582,220) |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 3,101 | (62,887) | 180,314 | (143,194) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 28,064 | (84,793) | 85,837 | (233,187) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 17,841 | 5,514 | 22,905 | (12,217) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | 0 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 3,101 | (62,887) | 37,637 | (143,194) | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,718,377 | 2,718,377 | $ 2,914,145 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (80,974) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (97,199) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (17,595) | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (80,974) | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||||||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,718,377 | 2,785,608 | $ 2,718,377 | $ 2,785,608 | $ 2,756,924 | $ 2,722,316 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (7,811) | (18,064) | ||||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (30,736) | 81,356 | ||||||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | $ (7,811) | $ (18,064) |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in Level 3 Fair Value Category (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investment by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | $ 68,802 | $ 765,682 | $ 808,557 | $ 762,703 | $ 762,703 | |
Included in earnings | 376 | 8,330 | 35,842 | 34,628 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 3,218 | 8,557 | (52,804) | 25,654 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 35,781 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | (79,319) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (302) | (6,760) | (714,192) | (25,716) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 22,078 | |||||
Balance, end of period | 72,094 | 775,809 | 72,094 | 775,809 | 808,557 | $ 762,703 |
Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 45,613 | 52,729 | 60,808 | (100,282) | (100,282) | |
Included in earnings | (2,080) | 2,031 | (14,137) | 53,329 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (1,296) | (1,671) | (4,434) | (100,042) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | 0 | 0 | ||
Balance, end of period | 42,237 | 53,089 | 42,237 | 53,089 | 60,808 | (100,282) |
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 | 2,179 | (1,889) | 14,433 | (5,640) | ||
Credit Derivative [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (15,349) | (15,349) | ||||
Included in earnings | 7,855 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 1,467 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Balance, end of period | (8,961) | (8,961) | (15,349) | |||
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 | 75 | |||||
Interest Rate Swap [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (84,933) | (84,933) | ||||
Included in earnings | 45,474 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (101,509) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Balance, end of period | 62,050 | 62,050 | (84,933) | |||
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 | (5,715) | |||||
Non-Agency RMBS [Member] | Investment by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 0 | 700,316 | 736,017 | 696,713 | 696,713 | |
Included in earnings | 7,910 | 34,727 | 33,499 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 8,940 | (52,138) | 26,871 | |||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 79,319 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | (6,495) | 713,297 | 24,952 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||
Balance, end of period | 0 | 710,671 | 0 | 710,671 | 736,017 | 696,713 |
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 | 0 | 0 | ||||
Asset-backed Securities [Member] | Investment by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 68,802 | 65,366 | 72,540 | 65,990 | 65,990 | |
Included in earnings | 376 | 420 | 1,115 | 1,129 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 3,218 | (383) | (666) | (1,217) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (302) | (265) | (895) | (764) | ||
Balance, end of period | 72,094 | 65,138 | 72,094 | 65,138 | 72,540 | 65,990 |
Interest Rate Swap [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 61,374 | |||||
Included in earnings | (13,824) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (4,138) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Balance, end of period | 43,412 | 43,412 | 61,374 | |||
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 | 13,824 | |||||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 46,939 | 61,735 | ||||
Included in earnings | (2,330) | 1,852 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (1,197) | (1,537) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||
Balance, end of period | 43,412 | 62,050 | 43,412 | 62,050 | ||
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 | 2,330 | (1,852) | ||||
Credit Derivative [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (566) | |||||
Included in earnings | (313) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (296) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Balance, end of period | (1,175) | (1,175) | (566) | |||
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 | 609 | |||||
Credit Derivative [Member] | Credit Derivative [Member] | Derivatives by Class [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (1,326) | (9,006) | ||||
Included in earnings | 250 | 179 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (99) | (134) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||
Balance, end of period | (1,175) | (8,961) | (1,175) | (8,961) | ||
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 | (151) | (37) | ||||
Level 3 [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 11,110,155 | 12,044,498 | 12,561,185 | 11,369,112 | 11,369,112 | |
Included in earnings | (36,221) | 66,569 | (84,608) | 410,104 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (122,362) | 332,207 | (435,776) | 934,431 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 79,319 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (73,053) | (211,027) | (1,156,973) | 459,940 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | (5,309) | 0 | ||||
Balance, end of period | 7,169,406 | 12,232,247 | 7,169,406 | 12,232,247 | 12,561,185 | 11,369,112 |
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 | 36,696 | (58,097) | 129,521 | (327,787) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 3,709,113 | 3,709,113 | ||||
Level 3 [Member] | Investments Contract [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, end of period | 2,785,608 | 2,785,608 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | |||||
Level 3 [Member] | Loans [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, end of period | 11,557,788 | 11,557,788 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | (5,946,465) | |||||
Level 3 [Member] | Long-term Debt [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, end of period | (2,946,384) | (2,946,384) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 2,237,352 | |||||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (100,282) | (100,282) | ||||
Included in earnings | 53,329 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (100,042) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | (100,282) | |||||
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 | (5,640) | |||||
Level 3 [Member] | Investments [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 68,802 | 765,682 | 808,557 | 762,703 | 762,703 | |
Included in earnings | 376 | 8,330 | 35,842 | 34,628 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 3,218 | 8,557 | (52,804) | 25,654 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 35,781 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 79,319 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (302) | (6,760) | (714,192) | 25,716 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 22,078 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | (5,309) | 0 | ||||
Balance, end of period | 72,094 | 775,809 | 72,094 | 775,809 | 808,557 | 762,703 |
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 | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | 0 | ||||
Level 3 [Member] | Other Assets [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 5,255 | 6,691 | 5,979 | 7,382 | 7,382 | |
Included in earnings | (368) | (354) | (1,092) | (1,045) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | 0 | ||||
Balance, end of period | 4,887 | 6,337 | 4,887 | 6,337 | 5,979 | 7,382 |
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 | 368 | 354 | 1,092 | 1,045 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | 0 | ||||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 60,808 | |||||
Included in earnings | (14,137) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (4,434) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | 42,237 | 53,089 | 42,237 | 53,089 | 60,808 | |
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 | 14,433 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | 0 | ||||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 45,613 | 52,729 | ||||
Included in earnings | (2,080) | 2,031 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (1,296) | (1,671) | ||||
Balance, end of period | 42,237 | 53,089 | 42,237 | 53,089 | ||
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 | 2,179 | (1,889) | ||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
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 | 113,996 | (323,192) | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Investments Contract [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 2,914,145 | |||||
Included in earnings | (80,974) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (97,199) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (17,595) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | 2,718,377 | 2,718,377 | 2,914,145 | |||
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 | 80,974 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 0 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Loans [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 11,529,384 | |||||
Included in earnings | (204,561) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (371,610) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (443,657) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | 4,563,091 | 4,563,091 | 11,529,384 | |||
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 | 70,659 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | 5,946,465 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Long-term Debt [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | (2,517,638) | (2,804,218) | (2,757,688) | (2,582,220) | (2,582,220) | |
Included in earnings | 3,101 | (62,887) | 180,314 | (143,194) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 28,064 | (84,793) | 85,837 | (233,187) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 17,841 | 5,514 | 22,905 | (12,217) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | 0 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | 0 | ||||
Balance, end of period | (231,280) | (2,946,384) | (231,280) | (2,946,384) | (2,757,688) | (2,582,220) |
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 | (3,101) | 62,887 | (37,637) | 143,194 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Deconsolidation Of Vies | (2,237,352) | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Loans Receivable [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 10,658,963 | 10,658,963 | ||||
Included in earnings | 515,904 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 913,477 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 530,556 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | 10,658,963 | |||||
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 | (515,904) | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Loans Receivable [Member] | Loans [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 10,751,199 | 11,301,298 | ||||
Included in earnings | (29,439) | 137,513 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (122,908) | 327,087 | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (89,296) | (208,110) | ||||
Balance, end of period | 4,563,091 | 11,557,788 | 4,563,091 | 11,557,788 | ||
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 | 29,439 | (137,513) | ||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 2,622,566 | $ 2,622,566 | ||||
Included in earnings | (49,518) | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 228,487 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Purchases | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Sales | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 15,927 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Into Level Three | 0 | |||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Transfers Out Of Level Three | 0 | |||||
Balance, end of period | $ 2,622,566 | |||||
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 | 49,518 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | Investments Contract [Member] | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | 2,756,924 | 2,722,316 | ||||
Included in earnings | (7,811) | (18,064) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (30,736) | 81,356 | ||||
Balance, end of period | 2,718,377 | 2,785,608 | $ 2,718,377 | $ 2,785,608 | ||
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 | $ 7,811 | $ 18,064 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Gains and Losses (Realized and Unrealized) Relating to Level 3 Assets and Liabilities Included in Earnings (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | $ (105,221) | $ 323,192 | ||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (113,996) | 323,192 | ||
Net Investment Income [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | $ 376 | $ 8,330 | 35,842 | |
Total gains or losses included in earnings for the period | 34,628 | |||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 0 | 0 | 0 | 0 |
Realized Gains Or (Losses) and Other Settlements On Credit Derivative Contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | 99 | 134 | 296 | 1,467 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 0 | 0 | 0 | 0 |
Unrealized Gains Or (Losses) On Credit Derivative Contracts [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | 151 | 45 | (609) | 6,388 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 151 | 37 | (609) | (75) |
Interest Rate Swap [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | (2,330) | 1,852 | (13,824) | 45,474 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (2,330) | 1,852 | (13,824) | 5,715 |
Income Loss On Variable Interest Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | (34,149) | 56,562 | ||
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (34,149) | 56,562 | ||
Other Income or (Loss) [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Total gains or losses included in earnings for the period | (368) | (354) | (1,092) | (1,045) |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | $ (368) | $ (354) | $ (1,092) | $ (1,045) |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 3,647,729 | $ 5,271,818 | |
Gross Unrealized Gains | 241,436 | 145,386 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,618 | 108,043 | |
Estimated Fair Value | 3,867,547 | 5,309,161 | |
Non - credit other - than - temporary Impairments | 0 | 23,832 | |
Corporate Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Estimated Fair Value | 2,718,377 | 2,914,145 | |
Short-Term [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 562,111 | 557,476 | |
Gross Unrealized Gains | 5 | 3 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 56 | 209 | |
Estimated Fair Value | 562,060 | 557,270 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,001,432 | 4,614,623 | |
Gross Unrealized Gains | 241,431 | 145,383 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,562 | 107,834 | |
Estimated Fair Value | 3,221,301 | 4,652,172 | |
Non - credit other - than - temporary Impairments | 0 | 23,832 | |
Fixed Income Securities [Member] | Securities Pledged as Collateral [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 84,186 | 99,719 | |
Gross Unrealized Gains | 0 | 0 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 | |
Estimated Fair Value | 84,186 | 99,719 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 858,255 | 845,778 | |
Gross Unrealized Gains | 114,008 | 3,456 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1,799 | 69,400 | |
Estimated Fair Value | 970,464 | 779,834 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | Corporate Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 1,324,241 | 858,774 | |
Gross Unrealized Gains | 12,077 | 6,772 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16,950 | 5,471 | |
Estimated Fair Value | 1,319,368 | 860,075 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | Foreign Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 34,045 | 26,245 | |
Gross Unrealized Gains | 220 | 409 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 258 | 111 | |
Estimated Fair Value | 34,007 | 26,543 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | U.S. Government Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 93,574 | 86,900 | |
Gross Unrealized Gains | 413 | 261 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1,780 | 1,753 | |
Estimated Fair Value | 92,207 | 85,408 | |
Non - credit other - than - temporary Impairments | 0 | ||
Fixed Income Securities [Member] | U.S. Government Obligations [Member] | Securities Pledged as Collateral [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 84,186 | 99,719 | |
Gross Unrealized Gains | 0 | 0 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 | |
Estimated Fair Value | 84,186 | 99,719 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 230,473 | 2,214,512 | |
Gross Unrealized Gains | 48,350 | 67,303 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 48 | 30,482 | |
Estimated Fair Value | 278,775 | 2,251,333 | |
Non - credit other - than - temporary Impairments | 0 | 23,832 | |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 87,642 | 50,754 | |
Gross Unrealized Gains | 83 | 283 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 4 | $ 4 | 0 |
Estimated Fair Value | 87,721 | 51,037 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 373,202 | 531,660 | |
Gross Unrealized Gains | 66,280 | 66,899 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 723 | 617 | |
Estimated Fair Value | 438,759 | 597,942 | |
Non - credit other - than - temporary Impairments | 0 | 0 | |
Fixed Income Investments And Other Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 3,563,543 | 5,172,099 | |
Gross Unrealized Gains | 241,436 | 145,386 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,618 | 108,043 | |
Estimated Fair Value | 3,783,361 | 5,209,442 | |
Non - credit other - than - temporary Impairments | $ 0 | $ 23,832 |
Investments - Summary of Amor_2
Investments - Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments Held by Successor Ambac, by Contractual Maturity (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost, Due in one year or less | $ 724,270 | |
Amortized Cost, Due after one year through five years | 1,139,043 | |
Amortized Cost, Due after five years through ten years | 288,308 | |
Amortized Cost, Due after ten years | 804,791 | |
Amortized Cost, Total | 2,956,412 | |
Amortized Cost | 3,647,729 | $ 5,271,818 |
Estimated Fair Value, Due in one year or less | 723,823 | |
Estimated Fair Value, Due after one year through five years | 1,142,011 | |
Estimated Fair Value, Due after five years through ten years | 283,434 | |
Estimated Fair Value, Due after ten years | 913,024 | |
Estimated Fair Value due, Total | 3,062,292 | |
Fixed income securities | 3,867,547 | 5,309,161 |
Fixed Income Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,001,432 | 4,614,623 |
Fixed income securities | 3,221,301 | 4,652,172 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 230,473 | 2,214,512 |
Fixed income securities | 278,775 | 2,251,333 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 87,642 | 50,754 |
Fixed income securities | 87,721 | 51,037 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 373,202 | 531,660 |
Fixed income securities | $ 438,759 | $ 597,942 |
Investments - Summary of Gross
Investments - Summary of Gross Unrealized Losses and Fair Values of Ambac's Available-for-Sale Investments (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | $ 706,726 | $ 1,988,778 | |
Less than 12 Months, Gross Unrealized Loss | 13,110 | 86,480 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 271,046 | 633,662 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 8,508 | 21,563 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 977,772 | 2,622,440 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,618 | 108,043 | |
Below Investment Grade Securities and Non-Rated Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Below Investment Grade Securities And Non Rated Securities Continuous Unrealized Loss Position Fair Value | 90,814 | 1,855,694 | |
Below Investment Grade Securities And Non Rated Securities Continuous Unrealized Loss Position Aggregate Losses | 1,405 | 100,503 | |
Short-Term [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 201,107 | 251,926 | |
Less than 12 Months, Gross Unrealized Loss | 56 | 209 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 201,107 | 251,926 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 56 | 209 | |
Fixed Income Investments And Other Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,618 | 108,043 | |
Fixed Income Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 505,619 | 1,736,852 | |
Less than 12 Months, Gross Unrealized Loss | 13,054 | 86,271 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 271,046 | 633,662 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 8,508 | 21,563 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 776,665 | 2,370,514 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,562 | 107,834 | |
Fixed Income Securities [Member] | Municipal Bonds [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 33,030 | 667,335 | |
Less than 12 Months, Gross Unrealized Loss | 346 | 68,578 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 27,415 | 32,525 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1,453 | 822 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 60,445 | 699,860 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1,799 | 69,400 | |
Fixed Income Securities [Member] | Corporate Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 418,960 | 292,028 | |
Less than 12 Months, Gross Unrealized Loss | 11,456 | 3,377 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 105,164 | 87,272 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 5,494 | 2,094 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 524,124 | 379,300 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 16,950 | 5,471 | |
Fixed Income Securities [Member] | U.S. Government Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 22,855 | 74,188 | |
Less than 12 Months, Gross Unrealized Loss | 1,084 | 1,653 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 52,693 | 5,525 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 696 | 100 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 75,548 | 79,713 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 1,780 | 1,753 | |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 1,035 | 668,524 | |
Less than 12 Months, Gross Unrealized Loss | 48 | 12,524 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 418,617 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 17,958 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,035 | 1,087,141 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 48 | 30,482 | |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | $ 2,996 | ||
Less than 12 Months, Gross Unrealized Loss | 4 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 2,996 | ||
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 4 | $ 4 | 0 |
Fixed Income Securities [Member] | Other Asset-Backed Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 9,974 | 26,655 | |
Less than 12 Months, Gross Unrealized Loss | 25 | 58 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 79,442 | 88,023 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 698 | 559 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 89,416 | 114,678 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 723 | 617 | |
Fixed Income Securities [Member] | Foreign Government Debt Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Less than 12 Months, Fair Value | 16,769 | 8,122 | |
Less than 12 Months, Gross Unrealized Loss | 91 | 81 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,332 | 1,700 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 167 | 30 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 23,101 | 9,822 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 258 | 111 | |
Securities Pledged as Collateral [Member] | Fixed Income Securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 0 | 0 | |
Securities Pledged as Collateral [Member] | Fixed Income Securities [Member] | U.S. Government Obligations [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | $ 0 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Investment [Line Items] | ||||||
Securities fair value | $ 5,893 | $ 5,893 | $ 5,974 | |||
Fair Value of Securities Placed in Trust | 0 | 0 | 346,212 | |||
Successor [Member] | ||||||
Investment [Line Items] | ||||||
Other investments | 411,604 | 411,604 | 431,630 | |||
Unrealized losses on securities | 13,110 | 13,110 | 86,480 | |||
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments | 21,618 | 21,618 | 108,043 | |||
Below Investment Grade Securities and Non-Rated Securities [Member] | Successor [Member] | ||||||
Investment [Line Items] | ||||||
Fair value of below investment grade securities and non-rated securities | 90,814 | 90,814 | 1,855,694 | |||
Gross unrealized loss | 1,405 | 1,405 | 100,503 | |||
Gains (losses) on securities held as of reporting date [Member] | Successor [Member] | ||||||
Investment [Line Items] | ||||||
Other investments | 6,402 | $ (105) | 11,134 | $ 6,990 | ||
Ambac Assurance [Member] | ||||||
Investment [Line Items] | ||||||
Unsettled Amounts Secured Notes from LSNI | $ 32,894 | |||||
Ambac UK [Member] | ||||||
Investment [Line Items] | ||||||
Asset Backed Securities Fair Value Disclosure | 141,373 | 141,373 | 170,280 | |||
Interest Rate Contract [Member] | Successor [Member] | ||||||
Investment [Line Items] | ||||||
Other investments | $ 179,856 | $ 179,856 | 136,603 | |||
Reported Value Measurement [Member] | Interest Rate Contract [Member] | Successor [Member] | ||||||
Investment [Line Items] | ||||||
Other investments | $ 2,914 | $ 2,823 |
Investments - Summary of Amount
Investments - Summary of Amounts Included in Net Realized (Losses) Gains and Other-Than-Temporary Impairments (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment [Line Items] | ||||
Gross realized gains on securities | $ 30,909 | $ 14,430 | $ 83,937 | $ 25,374 |
Gross realized losses on securities | (2,171) | (4,932) | 5,200 | 16,160 |
Foreign exchange (losses) gains | (5,211) | 19,142 | ||
Net realized (losses) gains | 30,201 | 6,150 | 82,211 | 5,434 |
Net other-than-temporary impairments | (266) | (13,510) | (1,579) | (19,215) |
Gain (Loss) on Investments [Member] | ||||
Investment [Line Items] | ||||
Foreign exchange (losses) gains | $ 1,463 | $ (3,348) | $ 3,474 | $ (3,780) |
Investments - Summary of Roll-F
Investments - 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 (Detail) - Successor [Member] - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance at beginning | $ 14,186 | $ 66,940 | $ 67,085 | $ 52,070 |
Additions for credit impairments recognized on: | ||||
Securities not previously impaired | 226 | 3,274 | ||
Securities previously impaired | 97 | 11,596 | ||
Reductions for credit impairments previously recognized on: | ||||
Securities that matured or were sold during the period | 53,222 | 0 | ||
Balance at end | $ 14,186 | $ 66,940 | $ 67,085 | $ 52,070 |
Investments - Summary of Source
Investments - Summary of Sources of Collateral Received and Various Investment Agreement in which Collateral Pledged (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Investment [Line Items] | ||
Fair Value Of Securities Deposited With Governmental Authorities | $ 5,893 | $ 5,974 |
Fair Value of Securities Placed in Trust | 0 | 346,212 |
Market Value of Secured Note Collateral | 221,676 | |
Successor [Member] | Cash and Securities Pledged Directly from Investment Portfolio [Member] | ||
Investment [Line Items] | ||
Fair Value of Cash and Securities Pledged to Derivative Counterparties | $ 95,074 | $ 120,645 |
Investments - Summary of Fair V
Investments - Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Standard & Poor's, AA Rating [Member] | Assured Guaranty Municipal Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 5,998 | $ 5,998 |
Standard & Poor's, A- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 16,306 | 20,733 |
Standard & Poor's, CC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 3,468,993 | |
Standard & Poor's, CC Rating [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2,242,116 | 3,442,262 |
Standard & Poor's, CCC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2,264,420 | |
Municipal Bonds [Member] | Standard & Poor's, AA Rating [Member] | Assured Guaranty Municipal Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 5,998 | 5,998 |
Municipal Bonds [Member] | Standard & Poor's, A- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 16,306 | 20,733 |
Municipal Bonds [Member] | Standard & Poor's, CC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 733,446 | |
Municipal Bonds [Member] | Standard & Poor's, CC Rating [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 915,525 | 706,715 |
Municipal Bonds [Member] | Standard & Poor's, CCC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 937,829 | |
Corporate Debt Securities [Member] | Standard & Poor's, AA Rating [Member] | Assured Guaranty Municipal Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | 0 |
Corporate Debt Securities [Member] | Standard & Poor's, A- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | 0 |
Corporate Debt Securities [Member] | Standard & Poor's, CC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 32,660 | |
Corporate Debt Securities [Member] | Standard & Poor's, CC Rating [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 714,004 | 32,660 |
Corporate Debt Securities [Member] | Standard & Poor's, CCC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 714,004 | |
Mortgage and Asset-Backed Securities [Member] | Standard & Poor's, CC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 2,702,887 | |
Mortgage and Asset-Backed Securities [Member] | Standard & Poor's, CC Rating [Member] | Ambac Assurance Corporation [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 612,587 | $ 2,702,887 |
Mortgage and Asset-Backed Securities [Member] | Standard & Poor's, CCC Rating [Member] | ||
Investment [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 612,587 |
Investments - Summary of Fair_2
Investments - Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities (Phantom) (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Ambac UK [Member] | ||
Investment [Line Items] | ||
Corporate and Asset Backed Securities Fair Value Disclosure | $ 141,373 | $ 170,280 |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Investment [Line Items] | ||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ 7,014 | $ 4,919 | ||
Trading Securities, Realized Gain (Loss) | 612 | 5,024 | ||
Investment expense | (1,967) | (2,228) | $ (5,167) | $ (6,269) |
Securities available-for-sale and short-term | 49,985 | 80,999 | 222,278 | 235,092 |
Total net investment income | 58,332 | 87,177 | 235,234 | 253,896 |
Gains (losses) on securities held as of reporting date [Member] | ||||
Investment [Line Items] | ||||
Net Realized and Unrealized Gain (Loss) on Trading Securities | 9,067 | 15,130 | ||
Trading Securities, Realized Gain (Loss) | (2,067) | 8,140 | ||
Fixed Income Investments [Member] | ||||
Investment [Line Items] | ||||
Gross Investment Income, Operating | 49,372 | 81,054 | 219,222 | 236,876 |
Short-Term [Member] | ||||
Investment [Line Items] | ||||
Gross Investment Income, Operating | 2,395 | 1,986 | 7,671 | 4,124 |
Loans Receivable [Member] | ||||
Investment [Line Items] | ||||
Gross Investment Income, Operating | 185 | 187 | 552 | 361 |
Other Investments [Member] | ||||
Investment [Line Items] | ||||
Gross Investment Income, Operating | $ 8,347 | $ 6,178 | $ 12,956 | $ 18,804 |
Investments Equity Investments
Investments Equity Investments (Details) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Equity Method Investments [Line Items] | |||
Other investments | $ 411,604 | $ 431,630 | |
Real Estate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 33,030 | 33,154 | |
Hedge Funds, Multi-strategy [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 0 | 53,054 | |
Interest Rate Contract [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 179,856 | 136,603 | |
Illiquid Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 66,922 | 67,787 | |
Insurance Linked [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 32,360 | 22,666 | |
Equity [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | 60,605 | 53,675 | |
Equity investments in pooled funds [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | $ 372,773 | 366,939 | |
Readily determinable fair value [Member] | Interest Rate Contract [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Other investments | $ 2,914 | $ 2,823 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Gross Fair Values of Individual Derivative Instruments (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets, Derivative Assets | $ 73,826 | |
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 83,409 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | $ 50,262 | 73,199 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | 1,968 | 1,522 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 61,331 | 82,782 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 59,363 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Assets | 0 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 81,260 | |
Net Amount, Derivative Assets | 50,262 | 73,199 |
Derivative Asset, Fair Value, Gross Asset | 50,699 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 437 | 627 |
Derivative liabilities | 61,768 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 437 | 627 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets, Derivative Assets | 54,877 | |
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 2,205,264 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 61,543 | 54,877 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | |
Derivative Assets (Liabilities), at Fair Value, Net | 1,657,173 | 2,205,264 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,657,173 | 2,205,264 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 0 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Assets | 0 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 0 | |
Net Amount, Derivative Assets | 61,543 | 54,877 |
Derivative Asset, Fair Value, Gross Asset | 61,543 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative liabilities | 1,657,173 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets, Derivative Assets | 73,826 | |
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 81,495 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 50,262 | 73,199 |
Derivative Assets (Liabilities), at Fair Value, Net | 793 | 956 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 59,728 | 80,868 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 58,935 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 79,912 | |
Net Amount, Derivative Assets | 50,262 | 73,199 |
Derivative Asset, Fair Value, Gross Asset | 50,699 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 437 | 627 |
Derivative liabilities | 60,165 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 437 | 627 |
Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 2,205,264 | |
Derivative Assets (Liabilities), at Fair Value, Net | 1,657,173 | 2,205,264 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,657,173 | 2,205,264 |
Derivative liabilities | 1,657,173 | |
Future [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 1,348 | |
Derivative Assets (Liabilities), at Fair Value, Net | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 428 | 1,348 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 428 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 1,348 | |
Derivative liabilities | 428 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Liabilities, Derivative Liabilities | 566 | |
Derivative Assets (Liabilities), at Fair Value, Net | 1,175 | 566 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,175 | 566 |
Derivative liabilities | 1,175 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets, Derivative Assets | 54,877 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 61,543 | 54,877 |
Net Amount, Derivative Assets | 61,543 | $ 54,877 |
Derivative Asset, Fair Value, Gross Asset | 61,543 | |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)Contract | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Contract | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | |||||
Value of obligation to return cash collateral, recorded in "Other liabilities" | $ 0 | $ 0 | $ 0 | ||
Net liability fair value of all derivative instruments linked to Ambac's own credit risk | 58,935,000 | 58,935,000 | 79,912,000 | ||
Fair value of posted assets as collateral | $ 84,926,000 | $ 84,926,000 | 111,391,000 | ||
Credit Derivatives [Member] | |||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | |||||
Number of credit derivative contracts | Contract | 0 | 0 | |||
Successor [Member] | |||||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | |||||
Value of right to reclaim cash collateral and posted margin, recorded in "Other assets" | $ 10,888,000 | $ 10,888,000 | $ 20,926,000 | ||
Gains in change in fair value of the call options | 353,777,000 | $ (28,482,000) | 606,464,000 | $ 11,379,000 | |
Gain (Loss) on Sale of Derivatives | $ 99,000 | $ 134,000 | $ 296,000 | $ 1,467,000 |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Location and Amount of Gains and Losses of Derivative Contracts (Detail) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | $ 353,777 | $ (28,482) | $ 606,464 | $ 11,379 |
Net Change in Fair Value of Credit Derivatives [Member] | Credit Derivatives [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 250 | 179 | (313) | 7,855 |
Derivative Products [Member] | Interest Rate Swap [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 3,157 | 3,394 | 9,320 | 40,643 |
Derivative Products [Member] | Futures Contracts [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 14,176 | 590 | ||
Derivative Products [Member] | Other Contracts [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 42,699 | (4,105) | ||
Derivative Products [Member] | ERROR in label resolution. | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 17,333 | 3,984 | 52,019 | 36,538 |
Income Loss On Variable Interest Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 336,194 | (32,645) | 554,758 | (33,014) |
Income Loss On Variable Interest Entities [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | 335,054 | (24,851) | 548,092 | (10,321) |
Income Loss On Variable Interest Entities [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Derivative instruments, gain (loss) recognized in income, net, Total | $ 1,140 | $ (7,794) | $ 6,666 | $ (22,693) |
Derivative Instruments - Summ_3
Derivative Instruments - Summary of Gross Principal Notional Outstanding for CDS Contracts (Detail) - Other Derivatives [Member] - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Ambac Rating | ||
Notional outstanding | $ 303,650 | $ 325,890 |
AAA Rating [Member] | ||
Ambac Rating | ||
Notional outstanding | 0 | 0 |
AA Rating [Member] | ||
Ambac Rating | ||
Notional outstanding | 158,500 | 175,765 |
A Rating [Member] | ||
Ambac Rating | ||
Notional outstanding | 0 | 0 |
BBB Rating [Member] | ||
Ambac Rating | ||
Notional outstanding | 145,150 | 150,125 |
Below Investment Grade Rating [Member] | ||
Ambac Rating | ||
Notional outstanding | $ 0 | $ 0 |
Derivative Instruments - Summ_4
Derivative Instruments - Summarize Information by Major Category of CDS Contracts (Detail) - Successor [Member] $ in Thousands | Sep. 30, 2018USD ($)Transactions | Dec. 31, 2017Transactions |
Summary of information by major category of CDS contracts | ||
Number of CDS transactions | Transactions | 2 | 2 |
Fair value of derivative liabilities | $ | $ 59,363 |
Derivative Instruments - Summ_5
Derivative Instruments - Summary of Notional Amounts of AFS's Trading Derivative Products (Detail) - AFS [Member] - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest Rate Swap [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 372,586 | $ 379,497 |
Interest Rate Swaps-Pay-Fixed/Receive-Variable [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | 1,462,639 | 1,428,264 |
Futures Contracts [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 1,740,000 | $ 1,655,000 |
Derivative Instruments - Summ_6
Derivative Instruments - Summary of Notional for VIE Derivatives Outstanding (Detail) - Variable Interest Entity, Primary Beneficiary [Member] - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Interest Rate Swap [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 1,431,360 | $ 1,483,491 |
Interest Rate Swaps-Pay-Fixed/Receive-Variable [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | 1,214,375 | 2,479,244 |
Currency Swaps [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | 359,907 | 394,541 |
Credit Derivatives [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 10,487 | $ 12,100 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2015 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Aug. 03, 2018 | Jun. 30, 2018 | Feb. 12, 2018 | May 01, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600,000 | |||||||||
Secured Debt | $ 0 | $ 0 | $ 73,993 | |||||||
One Time Interest Payment on Surplus Notes | 13,501 | |||||||||
AMPS Exchange Total Surplus Notes Issued | $ 212,740 | |||||||||
Junior surplus note of Ambac Assurance Segregated Account | $ 350,000 | |||||||||
5.1% Junior Surplus Notes, General Account Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 19.50% | 19.50% | ||||||||
Debt Instrument, Face Amount | $ 367,512 | $ 367,512 | 370,237 | |||||||
Ambac Note Post Exit From Rehabilitation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 7.60% | 7.60% | ||||||||
Debt Instrument, Face Amount | $ 1,968,614 | $ 1,968,614 | ||||||||
Repayments of Debt | $ 185,738 | |||||||||
Tier 2 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | 8.50% | ||||||||
Tier 2 Note Security in RMBS Litigation Settlement Proceeds | $ 1,600,000 | $ 1,600,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 9.90% | 9.90% | ||||||||
Paid-in-Kind Interest | $ 13,204 | |||||||||
Debt Instrument, Face Amount | $ 253,204 | 253,204 | ||||||||
Secured Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 0 | $ 0 | 73,993 | |||||||
5.1% Surplus Notes, General Account, Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 10.10% | 10.10% | ||||||||
Debt Instrument Principal Amount Subject To Repurchase | 463,624 | |||||||||
Debt Instrument, Face Amount | $ 523,367 | $ 523,367 | 754,811 | |||||||
One State Street [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument Principal Amount Subject To Repurchase | 2,530 | 2,530 | ||||||||
Debt Instrument, Face Amount | $ 17,512 | 17,512 | 20,237 | |||||||
Extinguishment of Debt, Amount | $ 2,725 | $ 2,881 | ||||||||
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | 5.1% Junior Surplus Notes, Segregated Account Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.40% | 8.40% | ||||||||
Afg [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
AMPS Exchange Total Surplus Notes Issued | $ 19,440 | |||||||||
Successor [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 2,937,771 | $ 2,937,771 | 991,696 | |||||||
Net realized gains (losses) on extinguishment of debt | 0 | $ 0 | 3,121 | $ 4,920 | ||||||
Successor [Member] | Ambac Assurance Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 2,937,771 | 2,937,771 | 991,696 | |||||||
Secured Debt | 0 | 0 | 73,993 | |||||||
Successor [Member] | Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 249,597 | 249,597 | 249,036 | |||||||
Successor [Member] | Ambac Assurance Corporation [Member] | Ambac Note Post Exit From Rehabilitation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 1,968,614 | 1,968,614 | 0 | |||||||
Successor [Member] | Ambac Assurance Corporation [Member] | Tier 2 Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 245,667 | 245,667 | 0 | |||||||
Successor [Member] | Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 473,893 | $ 473,893 | 668,667 | |||||||
Successor [Member] | Variable Interest Entity [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 12,160,544 | |||||||||
Successor [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 [Member] | Ambac Assurance Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% | |||||||
Debt Instruments Maturity Year | 2,020 | 2,020 | ||||||||
Successor [Member] | 5.1% Surplus Notes, General Account, Due 2020 [Member] | Ambac Assurance Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | 5.10% | 5.10% | 5.10% | ||||||
Debt Instruments Maturity Year | 2,020 | 2,020 | ||||||||
Variable Interest Entity, Primary Beneficiary [Member] | Successor [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 5,585,860 | $ 5,585,860 | $ 12,160,544 | |||||||
Consolidated Variable Interest Entities [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Unpaid Principal Amount Of Fixed Rate Debt Accounted For Under Fair Value Option | 4,831,033 | 4,831,033 | $ 9,387,884 | |||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 397,201 | 397,201 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | 0 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | 0 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | 0 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 | $ 0 | ||||||||
Consolidated Variable Interest Entities [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | 1.25% | 0.96% | |||||||
Consolidated Variable Interest Entities [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 8.35% | 8.35% | 8.35% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate on Ambac Note Post Exit From Rehabilitation | 5.00% | |||||||||
Interest Rate on Securities Issued by Delaware Trust | 2.80% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate on Ambac Note Post Exit From Rehabilitation | 1.00% | |||||||||
Ambac [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
One Time Interest Payment on Surplus Notes | $ 2,618 |
Long-Term Debt VIE Long-term de
Long-Term Debt VIE Long-term debt (Details) - Consolidated Variable Interest Entities [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Unpaid Principal Amount Of Fixed Rate Debt Accounted For Under Fair Value Option | $ 4,831,033 | $ 9,387,884 |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 397,201 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 | |
Minimum [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | 0.96% |
Maximum [Member] | ||
Debt Instrument, Interest Rate, Effective Percentage | 8.35% | 8.35% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2011 | |
Tax Credit Carryforward [Line Items] | ||
NOL allocated amount | $ 3,650,000 | |
Afg [Member] | ||
Tax Credit Carryforward [Line Items] | ||
NOL allocated amount | $ 1,398,610 | |
U. S. Federal Net Operating Tax [Member] | ||
Tax Credit Carryforward [Line Items] | ||
NOL allocated amount | 3,549,614 | |
Successor [Member] | ||
Tax Credit Carryforward [Line Items] | ||
TCJA Impact, Deferred Tax Asset, Compensation | $ (423) |
Income Taxes - Significant Port
Income Taxes - Significant Portions of Deferred Tax Liabilities and Deferred Tax Assets (Detail) - Successor [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Deferred Income Tax Assets and Liabilities [Line Items] | ||
Deferred Tax Assets, Tax Credit Carryforwards | $ 24,219 | $ 0 |
Deferred tax liabilities: | ||
Insurance intangible | 158,704 | 177,864 |
Deferred Tax Liabilities, Debentures | 0 | 28,387 |
Variable interest entities | 17,265 | 22,817 |
Investments | 51,704 | 28,798 |
Unearned premiums and credit fees | 50,386 | 51,485 |
Other | 9,507 | 9,402 |
Deferred Tax Liabilities, Gross, Noncurrent | 287,566 | 318,753 |
Deferred tax assets: | ||
Net operating loss and capital carryforward | 745,419 | 775,917 |
Loss reserves | 230,768 | 264,624 |
Other | 1,819 | 2,140 |
Sub total deferred tax assets | 1,010,160 | 1,048,266 |
Valuation allowance | 750,131 | 763,172 |
Total deferred tax assets | 260,029 | 285,094 |
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Employee Compensation | 7,935 | 5,585 |
Deferred Tax Liabilities, Net | $ 27,537 | $ 33,659 |
Income Taxes Income Taxes - Pro
Income Taxes Income Taxes - Provision for Income Taxes Charged To Income From Continuing Operations (Details) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Provision for Income Taxes [Line Items] | ||||
Current Federal Tax Expense (Benefit) | $ 0 | $ (617) | $ 0 | $ 0 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | (39,832) | (211,769) | 271,014 | (428,263) |
Current Income Tax Expense (Benefit) | 6,588 | 5,439 | 10,775 | 31,902 |
Deferred Foreign Income Tax Expense (Benefit) | (4,377) | 0 | (3,964) | 0 |
Deferred Income Tax Expense (Benefit) | (4,377) | 0 | (3,964) | 0 |
Income Tax Expense (Benefit) | 2,211 | 5,439 | 6,811 | 31,902 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 19,884 | 26,303 | 23,655 | 150,929 |
Pre-tax income (loss) | (19,948) | (185,466) | 294,669 | (277,334) |
Current State and Local Tax Expense (Benefit) | 424 | 0 | 2,106 | 0 |
Current Foreign Tax Expense (Benefit) | $ 6,164 | $ 6,056 | $ 8,669 | $ 31,902 |
Income Taxes Income Taxes - NOL
Income Taxes Income Taxes - NOL Usage Table (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2011 | Dec. 31, 2017 | |
Net Income Loss Reconciliation [Line Items] | |||
Tolling Payment Payable to AFG | $ 11,021 | $ 30,496 | |
NOL allocated amount | $ 3,650,000 | ||
Tier C Tolling Payments Payable to IRS | 12.50% | ||
Tier D Tolling Payments Payable to IRS | 17.50% | ||
Ambac Assurance [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
AACNetTaxableIncome | $ (131,201) | ||
NOL allocated amount | 2,151,004 | ||
Afg [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | 1,398,610 | ||
Tier A [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | $ 479,000 | ||
NOL applicable percentage | 15.00% | ||
Tier B [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | $ 1,057,000 | ||
NOL applicable percentage | 40.00% | ||
Tier C [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | $ 1,057,000 | ||
NOL applicable percentage | 10.00% | ||
Tier D [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | $ 1,057,000 | ||
NOL applicable percentage | 15.00% | ||
Domestic Tax Authority [Member] | |||
Net Income Loss Reconciliation [Line Items] | |||
NOL allocated amount | $ 3,549,614 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Before Income Taxes (Details) - Successor [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Income Before Income Tax, Domestic and Foreign [Line Items] | ||||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (39,832) | $ (211,769) | $ 271,014 | $ (428,263) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 19,884 | 26,303 | 23,655 | 150,929 |
Pre-tax income (loss) | $ (19,948) | $ (185,466) | $ 294,669 | $ (277,334) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018 | Sep. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 1,400,000 | |
Citigroup Global Markets Inc [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | $ 285,000 | |
Other Party [Domain] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | 2,550 | |
Goldman Sachs [Member] | ||
Loss Contingencies [Line Items] | ||
Loss Contingency, Damages Sought, Value | 272,000 | |
Proceeds from Legal Settlements | $ 26,721 | |
Military Housing [Domain] | ||
Loss Contingencies [Line Items] | ||
Payments for Legal Settlements | $ 20,413 |