Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | May 10, 2021 | Apr. 30, 2013 | |
Entity Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Mar. 31, 2021 | ||
Entity Ex Transition Period | false | ||
Entity File Number | 1-10777 | ||
Entity Registrant Name | AMBAC FINANCIAL GROUP, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-3621676 | ||
Entity Address, Address Line One | One World Trade Center | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10007 | ||
City Area Code | (212) | ||
Local Phone Number | 658-7470 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Bankruptcy Proceedings, Reporting Current | true | ||
Entity Common Stock, Shares Outstanding | 46,197,103 | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q1 | ||
Entity Central Index Key | 0000874501 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common stock par value $0.01 per share | ||
Trading Symbol | AMBC | ||
Security Exchange Name | NYSE | ||
Warrants [Member] | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Warrants | ||
Trading Symbol | AMBC WS | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Fixed maturity securities, at fair value | $ 2,858 | |
Total investments (net of allowance for credit losses of $0 and $0) | 3,458 | $ 3,544 |
Cash and cash equivalents | 23 | 20 |
Restricted Cash | 16 | 13 |
Premiums Receivable, Net | 356 | 370 |
Reinsurance Recoverables, Including Reinsurance Premium Paid | 33 | 33 |
Deferred ceded premium | 74 | 70 |
Subrogation recoverable | 2,076 | 2,156 |
Derivative assets | 74 | 93 |
Intangible assets | 391 | 409 |
Other assets | 115 | 114 |
Total assets | 12,840 | 13,220 |
Liabilities: | ||
Unearned premiums | 438 | 456 |
Loss and loss expense reserves | 1,662 | 1,759 |
Ceded premiums payable | 24 | 27 |
Long-term debt | 2,661 | 2,739 |
Accrued interest payable | 516 | 517 |
Derivative Liability | 86 | 114 |
Other liabilities | 123 | 106 |
Total liabilities | 11,697 | 12,074 |
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 | 0 | 0 |
Additional paid-in capital | 246 | 242 |
Accumulated other comprehensive income | 61 | 79 |
Retained earnings | 761 | 759 |
Treasury stock, shares at cost: 0 and 8,202 | (5) | (1) |
Total Ambac Financial Group, Inc. stockholders’ equity | 1,063 | 1,080 |
Noncontrolling interest | 60 | 60 |
Total stockholders’ equity | 1,123 | 1,140 |
Total liabilities and stockholders’ equity | 12,840 | 13,220 |
Deferred Income Tax Liabilities, Net | 20 | 24 |
Taxes Payable, Current | 2 | 6 |
Available-for-sale Securities, Amortized Cost Basis | 2,739 | 2,807 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Premium Receivable, Allowance for Credit Loss | 13 | 17 |
Debt Securities, Available-for-sale, Amortized Cost | 2,739 | |
Xchange | ||
Liabilities: | ||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 20 | |
Redeemable Noncontrolling Interest, Equity, Carrying Amount | 7 | |
Short-term Investments [Member] | ||
Assets: | ||
Fixed maturity securities, at fair value | 397 | 492 |
Stockholders’ equity: | ||
Available-for-sale Securities, Amortized Cost Basis | 398 | 492 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Fixed Income Securities [Member] | ||
Assets: | ||
Fixed maturity securities, at fair value | 2,341 | 2,317 |
Stockholders’ equity: | ||
Available-for-sale Securities, Amortized Cost Basis | 2,221 | 2,175 |
Available-for-sale Securities | 2,341 | 2,317 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Short-term Investments [Member] | ||
Stockholders’ equity: | ||
Available-for-sale Securities | 397 | 492 |
Other Investments [Member] | ||
Stockholders’ equity: | ||
Available-for-sale Securities | 600 | 595 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Assets: | ||
Fixed maturity securities, at fair value | 120 | 140 |
Stockholders’ equity: | ||
Debt Securities, Available-for-sale, Amortized Cost | 15 | 15 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | Short-term Investments [Member] | ||
Assets: | ||
Fixed maturity securities, at fair value | 105 | 125 |
Stockholders’ equity: | ||
Available-for-sale Securities, Amortized Cost Basis | 105 | 125 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Collateral Pledged [Member] | Short-term Investments | ||
Stockholders’ equity: | ||
Available-for-sale Securities, Amortized Cost Basis | 105 | 125 |
Collateralized Securities | Fixed Income Securities [Member] | ||
Stockholders’ equity: | ||
Available-for-sale Securities | 15 | 15 |
Collateralized Securities | Short-term Investments [Member] | ||
Stockholders’ equity: | ||
Available-for-sale Securities | $ 105 | $ 125 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale, Amortized Cost | $ 2,739 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | $ 0 |
Premium Receivable, Allowance for Credit Loss | $ 13 | $ 17 |
Preferred stock, par value | $ 0.01 | |
Preferred stock, shares authorized | 20,000,000 | |
Preferred Stock, Shares Issued | 0 | |
Common stock, par value | $ 0.01 | |
Common stock, shares authorized | 130,000,000 | |
Common stock, shares issued | 46,477,067 | 45,865,081 |
Common stock, shares outstanding | 46,197,102 | |
Treasury stock, shares | 279,965 | 55,942 |
Equity investments in pooled funds [Member] | ||
Other Investment Not Readily Marketable, Fair Value | $ 600 | $ 544 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Long-term debt | $ 4,264 | $ 4,324 |
Consolidated Statements of Tota
Consolidated Statements of Total Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Net premiums earned | $ 14 | $ 10 |
Net investment income: | ||
Securities available-for-sale and short-term | 22 | 31 |
Net investment income (loss) | 49 | (21) |
Available-for-sale Securities, Gross Realized Gain (Loss), Excluding Other than Temporary Impairments | 2 | 8 |
Realized Investment Gains (Losses) | 2 | 8 |
Change in fair value of credit derivatives: | ||
Derivative, Gain (Loss) on Derivative, Net | 25 | (70) |
Net realized gains (losses) on extinguishment of debt | 33 | |
Other Operating Income (Expense), Net | 5 | 0 |
Income (loss) on variable interest entities | 0 | 3 |
Total revenues | 129 | (70) |
Expenses: | ||
Losses and loss expenses (benefit) | 8 | 117 |
Intangible amortization | 19 | 13 |
Operating expenses | 33 | 24 |
Interest expense | 50 | 63 |
Total expenses | 110 | 217 |
Pre-tax income (loss) | 19 | (287) |
Provision (benefit) for income taxes | 2 | (7) |
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | 0 | |
Net income (loss) | 17 | (280) |
Net income (loss) attributable to common stockholders | 17 | (280) |
Other comprehensive income (loss), after tax: | ||
Net income (loss) | 17 | (280) |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (24) | (146) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 6 | (46) |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | (1) | 3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | (2) |
Total other comprehensive income (loss), net of income tax | (18) | (191) |
Total comprehensive income (loss) | (1) | (470) |
Less: comprehensive (gain) loss attributable to the noncontrolling interest | ||
Total comprehensive income (loss) attributable to common stockholders | (2) | $ (470) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest | $ 0 | |
Earnings Per Share, Basic | $ 0.08 | $ (6.07) |
Earnings Per Share, Diluted | $ 0.08 | $ (6.07) |
Weighted Average Number of Shares Outstanding, Basic | 46,314,049 | 46,060,324 |
Weighted Average Number of Shares Outstanding, Diluted | 46,858,064 | 46,060,324 |
Consolidated Statements of To_2
Consolidated Statements of Total Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Unrealized (loss) gain on securities, taxes | $ (2) | $ 0 |
Gain (loss) on foreign currency translation, taxes | 0 | 0 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, Tax | 0 | 1 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Plan Amendments, Tax Effect | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2019 | $ 1,536 | $ 1,203 | $ 42 | $ 0 | $ 0 | $ 232 | $ 0 | $ 60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss) | (470) | (280) | (191) | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation | 3 | 0 | 0 | 0 | 0 | 3 | 0 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (3) | (1) | 0 | 0 | 0 | 0 | (1) | 0 |
Ending balance at Mar. 31, 2020 | 1,062 | 917 | (149) | 0 | 0 | 235 | (2) | 60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (191) | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | Accounting Standards Update 2016-13 [Member] | (4) | (4) | ||||||
Beginning balance at Dec. 31, 2020 | 1,140 | 759 | 79 | 0 | 0 | 242 | (1) | 60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Total comprehensive income (loss) | (2) | |||||||
Stock-based compensation | 4 | 0 | 0 | 0 | 0 | 4 | 0 | 0 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | (6) | (2) | 0 | 0 | 0 | 0 | (4) | 0 |
Ending balance at Mar. 31, 2021 | 1,123 | 761 | 61 | 0 | 0 | 246 | (5) | 60 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (18) | 17 | $ (18) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Noncontrolling Interest, Change in Redemption Value | $ (13) | $ (13) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 17 | $ (280) |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization of bond premium and discount | (3) | (4) |
Share-based compensation | 4 | 3 |
Deferred income taxes | (3) | (6) |
Current income taxes | (3) | (5) |
Unearned premiums, net | (22) | (7) |
Losses and loss expenses, net | (17) | 77 |
Ceded premiums payable | (2) | (1) |
Premium receivables | 14 | 13 |
Accrued interest payable | 23 | 23 |
Amortization of intangible assets | 19 | 13 |
Net realized investment gains | (2) | (8) |
Net realized gains (losses) on extinguishment of debt | (33) | |
Variable interest entity activities | 0 | (3) |
Derivative assets and liabilities | (22) | 32 |
Other, net | (10) | 64 |
Net cash used in operating activities | (40) | (87) |
Cash flows from investing activities: | ||
Proceeds from sales of bonds | 44 | 221 |
Proceeds from matured bonds | 39 | 49 |
Purchases of bonds | (128) | (150) |
Proceeds from sales of other invested assets | 48 | 243 |
Purchases of other invested assets | (41) | (195) |
Change in short-term investments | 94 | 67 |
Change in cash collateral receivable | 11 | (56) |
Proceeds from paydowns of consolidated VIE assets | 50 | 66 |
Other, net | (1) | (1) |
Net cash provided by investing activities | 116 | 244 |
Cash flows from financing activities: | ||
Paydowns of Ambac note | (16) | (77) |
Tax payments related to shares withheld for share-based compensation plans | (6) | (3) |
Payments of consolidated VIE liabilities | (48) | (66) |
Net cash used in financing activities | (69) | (146) |
Effect of foreign exchange on cash, cash equivalents and restricted cash | 0 | 0 |
Net cash flow | 6 | 10 |
Cash, cash equivalents, and restricted cash at beginning of period | 35 | 81 |
Cash, cash equivalents, and restricted cash at end of period | 42 | 91 |
Net income attributable to common shareholders | 17 | $ (280) |
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | $ 0 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020. 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 AFG and all other entities in which AFG (directly or through its subsidiaries) has a controlling financial interest, including variable interest entities (“VIEs”) for which AFG or an AFG 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. See 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, 2020. 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 months ended March 31, 2021, may not be indicative of the results that may be expected for the year ending December 31, 2021. The December 31, 2020, 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. Foreign Currency: 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) and $1 for the three months ended March 31, 2021 and 2020, 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. Revenue Recognition: Revenues for the MGA/U business operations are recognized in accordance with the Revenue from Contracts with Customers Topic of the ASC. The following steps are applied to recognize revenue: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. A performance obligation is satisfied either at a point in time or over time depending on the nature of the product or service provided, and the specific terms of the contract with customers. MGA/U performance obligations consist of placing policies with insurers and, for certain products, providing claims servicing. Revenue from limited and short-term medical policies sold through affinity groups ("Affinity") are recognized up front as no further performance obligations exist after policy placement. Revenue from employer stop loss policies ("ESL") is apportioned to policy placement, recognized upfront, and claims servicing, recognized over the claim period, based on the relative stand-alone selling price of the respective performance obligations. Revenue consists of base and profit-sharing commissions. Base commissions, associated with policy placement and claims servicing, are estimated by applying the contractual commission percentages to estimated gross premiums written. Profit-sharing commissions represent variable consideration associated with policy placement only and are estimated based on expected loss ratios and the estimated gross premium for base commissions. Base and profit-sharing commissions are estimated with a constraint applied such that a significant reversal of revenue in the future is not probable. MGA/U revenue is reported in other income (expense) on the Consolidated Statement of Total Comprehensive Income. Contract assets represent the Company's right to future consideration for services it has already transferred to the customer, which is also conditional on future performance. Once the right to consideration becomes unconditional, it is reported as a receivable. Contract liabilities represent the Company's obligation to transfer services for which it has already received consideration from the customer. Contract assets and contract liabilities are reported as other assets and other liabilities, respectively, on the Consolidated Balance Sheet. Redeemable Noncontrolling Interest: The acquisition by AFG of 80% of the ownership interests of Xchange, is further described in Note 3. Business Combinations in the Notes to Consolidated Financial Statements included in Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Under the terms of the acquisition agreement, Ambac received a call option to purchase the remaining 20% of Xchange from the minority owners (i.e., noncontrolling interests) and the minority owners received a put option to sell the remaining 20% to Ambac. The call and put options are exercisable after different time periods elapse. Because the exercise of the put option is outside the control of Ambac, in accordance with the Distinguishing Liabilities from Equity Topic of the ASC, Ambac reports redeemable noncontrolling interests in the mezzanine section of its consolidated balance sheet. The redeemable noncontrolling interest is remeasured each period as the greater of: i. the carrying value under ASC 810, which attributes a portion of consolidated net income (loss) to the redeemable noncontrolling interest; and ii. the redemption value of the put option under ASC 480 as if it were exercisable at the end of the reporting period. Any increase (decrease) in the carrying amount of the redeemable noncontrolling interest as a result of adjusting to the redemption value of the put option is recorded as an offset to retained earnings. The impact of such differences on earnings per share are presented in Note 5. Net Income Per Share . Following is a rollforward of redeemable noncontrolling interest. Three Months Ended March 31, 2021 Beginning balance $ 7 Net income attributable to redeemable noncontrolling interest (ASC 810) — Adjustment to redemption value (ASC 480) $ 13 Ending balance $ 20 Supplemental Disclosure of Cash Flow Information Three Months Ended March 31, 2021 2020 Cash paid during the period for: Income taxes $ 8 $ 2 Interest on long-term debt 25 31 Non-cash financing activities: Decrease in long-term debt as a result of surplus notes exchanges $ 71 $ — March 31, 2021 2020 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 $ 23 $ 58 Restricted cash 16 31 Variable Interest Entity restricted cash 2 2 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows $ 42 $ 91 Reclassifications and Rounding Reclassifications may have been made to prior years' amounts to conform to the current year's presentation. Certain amounts and tables in the consolidated financial statements and associated notes may not add due to rounding. Adopted Accounting Standards: Effective January 1, 2021, the Company adopted the following accounting standard: Simplifying Income Tax Accounting In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes . The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards. The ASU removes certain exceptions in the guidance related to investments, intra-period allocations and interim period allocations. It further adds new guidance related to the allocation of consolidated income taxes and evaluating a step-up in the tax basis of goodwill. The ASU did not have a consequential impact on Ambac's financial statements. Future Application of Accounting Standards: Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides companies with optional guidance to ease the potential accounting burden related to transitioning away from reference rates, such as LIBOR, that are expected to be discontinued as a result of initiatives undertaken by various jurisdictions around the world. For example, under current GAAP, contract modifications which change a reference rate are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU can be applied prospectively as of the beginning of the interim period that includes or is subsequent to March 12, 2020, or any date thereafter, but does not apply to contract modifications and other transactions entered into or evaluated after December 31, 2022. Management has not determined when it will adopt this ASU, and the impact on Ambac's financial statements is being evaluated. |
Noncontrolling Interest Disclosure | Redeemable Noncontrolling Interest: The acquisition by AFG of 80% of the ownership interests of Xchange, is further described in Note 3. Business Combinations in the Notes to Consolidated Financial Statements included in Part II, Item 8 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. Under the terms of the acquisition agreement, Ambac received a call option to purchase the remaining 20% of Xchange from the minority owners (i.e., noncontrolling interests) and the minority owners received a put option to sell the remaining 20% to Ambac. The call and put options are exercisable after different time periods elapse. Because the exercise of the put option is outside the control of Ambac, in accordance with the Distinguishing Liabilities from Equity Topic of the ASC, Ambac reports redeemable noncontrolling interests in the mezzanine section of its consolidated balance sheet. The redeemable noncontrolling interest is remeasured each period as the greater of: i. the carrying value under ASC 810, which attributes a portion of consolidated net income (loss) to the redeemable noncontrolling interest; and ii. the redemption value of the put option under ASC 480 as if it were exercisable at the end of the reporting period. Any increase (decrease) in the carrying amount of the redeemable noncontrolling interest as a result of adjusting to the redemption value of the put option is recorded as an offset to retained earnings. The impact of such differences on earnings per share are presented in Note 5. Net Income Per Share . Following is a rollforward of redeemable noncontrolling interest. Three Months Ended March 31, 2021 Beginning balance $ 7 Net income attributable to redeemable noncontrolling interest (ASC 810) — Adjustment to redemption value (ASC 480) $ 13 Ending balance $ 20 |
Comprehensive Income
Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021: Beginning Balance $ 166 $ 5 $ (92) $ — $ 79 Other comprehensive income (loss) before reclassifications (21) — 6 — (15) Amounts reclassified from accumulated other comprehensive income (loss) (3) — — (1) (3) Net current period other comprehensive income (loss) (24) — 6 (1) (18) Balance at March 31, 2021 $ 142 $ 5 $ (86) $ (1) $ 61 Three Months Ended March 31, 2020: Beginning Balance $ 151 $ 8 $ (116) $ (2) $ 42 Other comprehensive income (loss) before reclassifications (139) (2) (46) — (187) Amounts reclassified from accumulated other comprehensive income (loss) (7) — — 3 (4) Net current period other comprehensive income (loss) (146) (2) (46) 3 (191) Balance at March 31, 2020 $ 5 $ 6 $ (162) $ 2 $ (149) (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. 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 Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Three Months Ended March 31, 2021 2020 Unrealized Gains (Losses) on Available-for-Sale Securities $ (2) $ (8) Net realized investment gains (losses) (1) 1 Provision for income taxes $ (3) $ (7) Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ — $ — Other income Actuarial (losses) — — Other income — — Total before tax — — Provision for income taxes $ — $ — Net of tax and noncontrolling interest Credit risk changes of fair value option liabilities $ (1) $ 4 Credit risk changes of fair value option liabilities — (1) Provision for income taxes $ (1) $ 3 Net of tax and noncontrolling interest Total reclassifications for the period $ (3) $ (4) Net of tax and noncontrolling interest |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 5. NET INCOME PER SHARE As of March 31, 2021, 46,197,102 shares of AFG's common stock (par value $0.01) and warrants entitling holders to acquire up to 4,877,693 shares of new common stock at an exercise price of $16.67 per share were issued and outstanding. Common shares outstanding increased by 387,963 during the three months ended March 31, 2021, primarily due to settlements of employee restricted and performance stock units. The numerator of the basic and diluted earnings per share computation represents net income (loss) attributable to common stockholders adjusted by the retained earnings impact of the noncontrolling adjustment to redemption value under ASC 480. The redemption value adjustment is further described Redeemable Noncontrolling Interest section of Note 2. Basis of Presentation and Significant Accounting Policies, The following table provides a reconciliation of net income attributable to common stockholders to the numerator in the basic and diluted earnings per share calculation, together with the resulting earnings per share amounts: Three Months Ended March 31, 2021 2020 Net income (loss) attributable to common stockholders $ 17 $ (280) Adjustment to redemption value (ASC 480) $ (13) — Numerator of basic and diluted EPS $ 4 $ (280) Per Share: Basic $ 0.08 $ (6.07) Diluted $ 0.08 $ (6.07) The denominator of the basic earnings per share computation represents the weighted average common shares outstanding plus vested restricted stock units (together, "Basic Weighted Average Shares Outstanding"). The denominator of diluted earnings per share adjusts the basic weighted average shares outstanding for all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants, unvested restricted stock units and performance stock units granted under existing compensation plans. The following table provides a reconciliation of the weighted average shares denominator used for basic net income per share to the denominator used for diluted net income per share: Three Months Ended March 31, 2021 2020 Basic weighted average shares outstanding denominator 46,314,049 46,060,324 Effect of potential dilutive shares (1) : Stock options — — Warrants 214,904 — Restricted stock units 121,215 — Performance stock units (2) 207,896 — Diluted weighted average shares outstanding denominator 46,858,064 46,060,324 Anti-dilutive shares excluded from the above reconciliation: Stock options — 16,667 Warrants — 4,877,749 Restricted stock units 165,529 236,189 Performance stock units (2) — 738,039 (1) For the three months ended March 31, 2020, 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) Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. 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, certain highly liquid pooled fund investments, 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 maturity 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 maturity 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 Fair Value Measurement Topic of the ASC permits, as a practical expedient, the estimation of fair value of certain investments in funds using the net asset value per share of the investment or its equivalent (“NAV”). Investments in funds valued using NAV are not categorized as Level 1, 2 or 3 under the fair value hierarchy. The following table sets forth the carrying amount and fair value of Ambac’s financial assets and liabilities as of March 31, 2021 and December 31, 2020, 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: March 31, 2021: Level 1 Level 2 Level 3 Financial assets: Fixed maturity securities: Municipal obligations $ 366 $ 366 $ — $ 366 $ — Corporate obligations 1,108 1,108 2 1,106 — Foreign obligations 97 97 97 — — U.S. government obligations 108 108 108 — — Residential mortgage-backed securities 269 269 — 269 — Collateralized debt obligations 97 97 — 97 — Other asset-backed securities 295 295 — 219 76 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 105 105 105 — — Short term investments 397 397 311 86 — Other investments (1) 600 600 99 — — Cash, cash equivalents and restricted cash 39 39 38 2 — Derivative assets: Interest rate swaps—asset position 73 73 — 7 66 Futures contracts 1 1 1 — — Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-Loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,103 3,103 — — 3,103 Fixed maturity securities: Municipal obligations 133 133 — 133 — Restricted cash 2 2 2 — — Loans 2,948 2,948 — — 2,948 Derivative assets: Currency swaps-asset position 38 38 — 38 — Total financial assets $ 9,799 $ 9,799 $ 778 $ 2,323 $ 6,197 Financial liabilities: Long term debt, including accrued interest $ 3,177 $ 3,032 $ — $ 3,011 $ 20 Derivative liabilities: Interest rate swaps—asset position 85 85 — 85 — Liabilities for net financial guarantees written (2) (751) 279 — — 279 Variable interest entity liabilities: Long-term debt (includes $4,264 at fair value) 4,427 4,451 — 4,290 160 Derivative liabilities: Interest rate swaps—liability position 1,739 1,739 — 1,739 — Total financial liabilities $ 8,677 $ 9,586 $ — $ 9,126 $ 460 Carrying Total Fair Fair Value Measurements Categorized as: December 31, 2020: Level 1 Level 2 Level 3 Financial assets: Fixed maturity securities: Municipal obligations $ 358 $ 358 $ — $ 358 $ — Corporate obligations 1,077 1,077 4 1,073 — Foreign obligations 98 98 98 — — U.S. government obligations 106 106 106 — — Residential mortgage-backed securities 302 302 — 302 — Collateralized debt obligations 74 74 — 74 — Other asset-backed securities 303 303 — 225 78 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 125 125 125 — — Short term investments 492 492 415 76 — Other investments (1) 595 597 91 — 53 Cash, cash equivalents and restricted cash 33 33 32 2 — Derivative assets: Interest rate swaps—asset position 93 93 — 9 85 Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,215 3,215 — — 3,215 Fixed maturity securities: Municipal obligations 139 139 — 139 — Restricted cash 2 2 2 — — Loans 2,998 2,998 — — 2,998 Derivative assets: Currency swaps—asset position 41 41 — 41 — Total financial assets $ 10,071 $ 10,073 $ 888 $ 2,299 $ 6,433 Financial liabilities: Long term debt, including accrued interest $ 3,255 $ 3,071 $ — $ 2,670 $ 401 Derivative liabilities: Interest rate swaps—liability position 114 114 — 114 — Liabilities for net financial guarantees written (2) (740) 539 — — 539 Variable interest entity liabilities: Long-term debt (includes $4,324 at fair value) 4,493 4,504 — 4,349 155 Derivative liabilities: Interest rate swaps—liability position 1,835 1,835 — 1,835 — Total financial liabilities $ 8,958 $ 10,063 $ — $ 8,968 $ 1,095 (1) Excluded from the fair value measurement categories in the table above are investment funds of $501 and $453 as of March 31, 2021 and December 31, 2020, respectively, which are measured using NAV 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 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 maturity securities, equity interests in pooled investment funds, derivative instruments, certain 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. Fixed Maturity Securities: The fair values of fixed maturity investment securities are based primarily on market prices received from broker quotes or alternative pricing sources. Because many fixed maturity 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 maturity 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 March 31, 2021, approximately 3%, 95% and 2% of the fixed maturity investment portfolio (excluding variable interest entity investments) was valued using broker quotes, alternative pricing sources and internal valuation models, respectively. At December 31, 2020, approximately 2%, 95% and 3% of the fixed maturity investment portfolio (excluding variable interest entity investments) was valued using broker quotes, alternative pricing sources and internal valuation models, respectively. Ambac performs various review and validation procedures to quoted and modeled prices for fixed maturity 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), internally modeled prices and/or other relevant data, 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 maturity securities classified as Level 3 is included below: Other asset-backed securities: This security is a subordinated tranche of a securitization collateralized by Ambac-insured military housing bonds. The fair value classified as Level 3 was $76 and $78 at March 31, 2021 and December 31, 2020, 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 March 31, 2021 and December 31, 2020 include the following: March 31, 2021: a. Coupon rate: 5.98% b. Average Life: 14.66 years c. Yield: 10.75% December 31, 2020: a. Coupon rate: 5.97% b. Average Life: 14.83 years c. Yield: 10.50% 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 NAV as a practical expedient as permitted under the Fair Value Measurement Topic of the ASC. Refer to Note 9. Investments for additional information about such investments in pooled funds that are reported at fair value using NAV as a practical expedient. At December 31, 2020, other investments also included Ambac's equity interest in the Corolla Trust, a non-consolidated VIE created in connection with Ambac's monetization of AAC junior surplus notes. This equity interest was carried under the equity method and its fair value was internally calculated using a market approach classified as Level 3. As further described in Note 1. Background and Business Description, on January 22, 2021, AAC completed the Corolla Note Exchange transaction whereby it acquired 100% of the outstanding obligations and the owner trust certificate of, and subsequently dissolved, the Corolla Trust. Derivative Instruments: Ambac’s derivative instruments primarily comprise interest rate swaps, 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 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 and other liabilities. Factors considered in estimating the amount of any Ambac credit valuation adjustment ("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. The aggregated Ambac CVA impact reduced the fair value of derivative liabilities by less than a million dollars at both March 31, 2021 and December 31, 2020, respectively Interest rate swaps that are not centrally cleared are valued using vendor-developed models that incorporate interest rates and yield curves that are observable and regularly quoted. These models provide the net present value of the derivatives based on contractual terms and observable market data. Generally, the need for counterparty (or Ambac) CVAs on interest rate derivatives is mitigated by the existence of collateral posting agreements under which adequate collateral has been posted. Certain of these 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 determination of their fair value. Ambac's credit derivatives ("CDS") are valued using an internal model that uses traditional financial guarantee CDS pricing to calculate the fair value of the derivative contract based on the reference obligation's current pricing, remaining life and credit rating and Ambac's own credit risk. The model calculates the difference between the 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. Unobservable inputs used include Ambac's internal reference obligation credit ratings and remaining life, estimates of fees that would be charged to assume the credit derivative obligation and Ambac's CVA. Ambac is party to only one remaining credit derivative with an internal credit rating of AA at March 31, 2021. Ambac has not made any significant changes to its modeling techniques or related model inputs for the periods presented. 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 marketplace, 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. Long-term Debt: Long-term debt includes AAC surplus notes and junior surplus notes, the Ambac Note and Tier 2 Notes issued in connection with the Rehabilitation Exit Transactions and the Ambac UK debt issued in connection with the Ballantyne commutation. The fair values of surplus notes, the Ambac Note and Tier 2 Notes are classified as Level 2. The fair value of junior surplus notes and Ambac UK debt are classified as Level 3. Other Financial Assets and Liabilities: Included in Other assets are Loans and Ambac’s equity interest in an Ambac sponsored VIE established to provide certain financial guarantee clients with funding for their debt obligations. The fair values of these financial 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 FG VIEs consolidated under the Consolidation Topic of the ASC consist primarily of fixed maturity securities and loans held by the VIEs, derivative instruments and notes issued by the VIEs which are reported as long-term debt. As described in Note 3. Variable Interest Entities , these FG VIEs are securitization entities which have liabilities and/or assets guaranteed by AAC or Ambac UK. The fair values of FG VIE long-term debt are based on price quotes received from independent market sources when available. Such quotes are considered Level 2 and generally consider a variety of factors, including recent trades of the same and similar securities. For those instruments where quotes were not available or cannot be reasonably corroborated, fair values are based on internal valuation models. Comparable to the sensitivities of investments in fixed maturity 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 FG VIE long-term debt. FG VIE derivative asset and liability fair values are determined using vendor-developed valuation models, which incorporated observable market data related to specific derivative contractual terms including interest rates, foreign exchange rates and yield curves. The fair value of FG VIE fixed maturity securities and loan assets are based on Level 2 market price quotes received from independent market sources when available. Typically, FG VIE asset fair values are not readily available from market quotes and are estimated internally. Internal valuation of each FG VIE’s fixed maturity securities or loan assets are derived from the fair values of the notes issued by the respective VIE and the VIE’s derivatives, determined as described above, adjusted for the fair values of Ambac’s financial guarantees associated with the VIE. The fair value of financial guarantees consist of: (i) estimated future premium cash flows discounted at a rate consistent with that implicit in the fair value of the VIE’s liabilities and (ii) estimates of future claim payments discounted at a rate that includes Ambac’s own credit risk. Estimated future premium payments to be paid by the VIEs were discounted at a weighted average rate of 2.8% and 2.4% at March 31, 2021 and December 31, 2020, respectively. At March 31, 2021, the range of these discount rates was between 2.3% and 3.5%. Additional Fair Value Information for Financial Assets and Liabilities Accounted for at Fair Value: The following tables present the changes in the Level 3 fair value category for the periods presented in 2021 and 2020. 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 (1) Other (2) Derivatives Investments Loans Total Three Months Ended March 31, 2021: Balance, beginning of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ 6,376 Total gains/(losses) realized and unrealized: Included in earnings — — (17) (138) 9 (145) Included in other comprehensive income (2) — — 26 24 49 Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements — — (2) — (84) (86) Balance, end of period $ 76 $ 1 $ 65 $ 3,103 $ 2,948 $ 6,194 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 $ — $ — $ (17) $ (138) $ 9 $ (145) The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (2) $ — $ — $ 26 $ 24 $ 49 Three Months Ended March 31, 2020: Balance, beginning of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ 6,207 Total gains/(losses) realized and unrealized: Included in earnings — — 12 30 88 130 Included in other comprehensive income (6) — — (181) (190) (377) Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements — — (1) — (74) (76) Balance, end of period $ 66 $ 3 $ 77 $ 2,806 $ 2,932 $ 5,884 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 $ — $ — $ 12 $ 30 $ 88 $ 130 The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (6) $ — $ — $ (181) $ (190) $ (377) (1) Investments classified as Level 3 consist of a single other asset-backed security. (2) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. The table below provides roll-forward information by class of derivatives measured using significant unobservable inputs. Level 3 - Derivatives by Class Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Interest Credit Total Interest Credit Total Balance, beginning of period $ 85 $ — $ 84 $ 67 $ — $ 66 Total gains/(losses) realized and unrealized: Included in earnings (17) — (17) 13 (1) 12 Included in other comprehensive income — — — — — — Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements (2) — (2) (1) — (1) Balance, end of period $ 66 $ — $ 65 $ 79 $ (2) $ 77 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 $ (17) $ — $ (17) $ 13 $ (2) $ 12 The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (17) $ — $ (17) $ — $ — $ — Invested assets and VIE long-term debt are transferred into Level 3 when internal valuation models that include significant unobservable inputs are used to estimate fair value. All such securities that have internally modeled fair values have been classified as Level 3. Derivative instruments are transferred into Level 3 when the use of unobservable inputs becomes significant to the overall valuation. There were no transfers of financial instruments into or out of Level 3 in the periods disclosed. 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 Net Gains Income Other Three Months Ended March 31, 2021: Total gains (losses) included in earnings for the period $ — $ (17) $ (129) $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — (17) (129) — Three Months Ended March 31, 2020: Total gains (losses) included in earnings for the period $ — $ 12 $ 118 $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 12 118 — |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 9. INVESTMENTS Ambac’s non-VIE invested assets are primarily comprised of fixed maturity securities classified as available-for-sale and interests in pooled investment funds, which are reported within Other investments on the Consolidated Balance Sheets. Interests in pooled investment funds in the form of common stock or in-substance common stock are classified as trading securities, while limited partner interests in such funds are reported using the equity method. Other investments also included equity interests held by AFG, including the equity Certificates in Corolla Trust, an unconsolidated trust created in connection with its sale of Segregated Account junior surplus notes on August 28, 2014. As further described in Note 1. Background and Business Description, on January 22, 2021, AAC completed the Corolla Note Exchange transaction whereby it acquired 100% of the outstanding obligations and the Certificates of, and subsequently dissolved, the Corolla Trust. There are no equity interests held by AFG as of March 31, 2021. Disclosures in this Note for the periods ended March 31, 2021 and December 31, 2020, are in accordance with the new CECL standard adopted January 1, 2020, which is more fully described in 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, 2020, Fixed Maturity Securities: The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at March 31, 2021 and December 31, 2020, were as follows: Amortized Allowance for Credit Losses Gross Gross Estimated March 31, 2021: Fixed maturity securities: Municipal obligations $ 329 $ — $ 38 $ — $ 366 Corporate obligations (1) 1,106 — 14 13 1,108 Foreign obligations 98 — — 1 97 U.S. government obligations 109 — 1 2 108 Residential mortgage-backed securities 219 — 50 — 269 Collateralized debt obligations 97 — — — 97 Other asset-backed securities (2) 262 — 33 — 295 2,221 — 136 17 2,341 Short-term 398 — — — 397 2,619 — 136 17 2,738 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 105 — — — 105 120 — — — 120 Total available-for-sale investments $ 2,739 $ — $ 136 $ 17 $ 2,858 Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2020: Fixed maturity securities: Municipal obligations $ 321 $ — $ 37 $ — $ 358 Corporate obligations (1) 1,059 — 24 6 1,077 Foreign obligations 97 — 1 — 98 U.S. government obligations 105 — 2 1 106 Residential mortgage-backed securities 256 — 46 — 302 Collateralized debt obligations 74 — — — 74 Other asset-backed securities (2) 263 — 40 — 303 2,175 — 149 8 2,317 Short-term 492 — — — 492 2,667 — 149 8 2,809 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 125 — — — 125 140 — — — 140 Total available-for-sale investments $ 2,807 $ — $ 149 $ 8 $ 2,949 (1) Includes Ambac's holdings of the secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. (2) Consists primarily of Ambac's holdings of the military housing and student loan securities. The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at March 31, 2021, by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 617 $ 618 Due after one year through five years 906 912 Due after five years through ten years 455 459 Due after ten years 183 209 2,160 2,197 Residential mortgage-backed securities 219 269 Collateralized debt obligations 97 97 Other asset-backed securities 262 295 Total $ 2,739 $ 2,858 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 Maturity Securities: The following table shows gross unrealized losses and fair values of Ambac’s available-for-sale investments, excluding VIE investments, which at March 31, 2021 and December 31, 2020, did not have an allowance for credit losses under the CECL standard. This information is aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2021 and December 31, 2020: Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross March 31, 2021: Fixed maturity securities: Municipal obligations $ 19 $ — $ 16 $ — $ 35 $ — Corporate obligations 339 13 — — 339 13 Foreign obligations 70 1 — — 70 1 U.S. government obligations 25 2 — — 25 2 Residential mortgage-backed securities 15 — 2 — 17 — Collateralized debt obligations 13 — 13 — 26 — Other asset-backed securities — — — — — — 481 17 31 — 512 17 Short-term 157 — — — 157 — Total securities $ 638 $ 17 $ 31 $ — $ 669 $ 17 December 31, 2020: Fixed maturity securities: Municipal obligations $ 25 $ — $ 6 $ — $ 31 $ — Corporate obligations 543 6 — — 543 6 Foreign obligations 3 — — — 3 — U.S. government obligations 17 1 — — 17 1 Residential mortgage-backed securities 14 — — — 14 — Collateralized debt obligations 27 — 15 — 42 — Other asset-backed securities — — 4 — 4 — 629 7 25 — 654 8 Short-term 187 — — — 187 — Total securities $ 816 $ 7 $ 25 $ — $ 841 $ 8 Management has determined that the securities in the above table do not have credit impairment as of March 31, 2021 and December 31, 2020, based upon (i) no actual or expected principal and interest payment defaults on these securities; (ii) analysis of the creditworthiness of the issuer and financial guarantor, as applicable, and (iii) for debt securities that are non-highly rated beneficial interests in securitized financial assets, analysis of whether there was an adverse change in projected cash flows. Management's evaluation as of March 31, 2021, includes the expectation that all principal and interest payments on securities guaranteed by AAC or Ambac UK will be made timely and in full. Ambac’s assessment about whether a security is credit impaired reflects management’s current judgment regarding facts and circumstances specific to the security and other factors. If that judgment changes, Ambac may record a charge for credit impairment in future periods. Realized Gains and Losses including Impairments: The following table details amounts included in net realized gains (losses) and impairments included in earnings for the affected periods: Three Months Ended March 31, 2021 2020 Gross realized gains on securities $ 7 $ 6 Gross realized losses on securities (1) — Foreign exchange (losses) gains (4) 2 Credit impairments — — Intent / requirement to sell impairments — — Net realized gains (losses) $ 2 $ 8 Ambac had zero allowance for credit losses at March 31, 2021 and 2020. Ambac did not purchase any financial assets with credit deterioration for the three months ended March 31, 2021 and 2020. Counterparty Collateral, Deposits with Regulators and Other Restrictions: Ambac routinely pledges and receives collateral related to certain transactions. Securities held directly in Ambac’s investment portfolio with a fair value of $120 and $140 at March 31, 2021 and December 31, 2020, 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 maturity securities pledged as collateral, at fair value” and "Short-term investments pledged as collateral, at fair value.". Refer to Note 10. Derivative Instruments for further information on cash collateral. There was no cash or securities received from other counterparties that were re-pledged by Ambac. Securities carried at $8 and $8 at March 31, 2021 and December 31, 2020, respectively, were deposited by Ambac's insurance subsidiaries with governmental authorities or designated custodian banks as required by laws affecting insurance companies. Invested assets carried at $1 and $1 at March 31, 2021 and December 31, 2020, were deposited as security in connection with a letter of credit issued for an office lease. Securities with a fair value of $163 and $178 at March 31, 2021 and December 31, 2020, respectively, were pledged as collateral and as sources of funding to repay the Secured Notes issued by Ambac LSNI. The securities may not be transferred or re-pledged by Ambac LSNI. Collateral may be sold to fund redemptions of the Secured Notes. AAC also pledged for the benefit of the holders of Secured Notes (other than AAC) the proceeds of interest payments and partial redemptions of the Secured Notes held by AAC. The amount of such proceeds held by AAC was $12 and $9 at March 31, 2021 and December 31, 2020, respectively, and is included in Restricted cash on the Consolidated Balance Sheet. AAC may, from time to time, sell all or a portion of the Secured Notes it owns. In the event that AAC sells any of the Secured Notes it owns, the proceeds must be used to redeem a like amount of the Ambac Note at par. The price at which AAC sells the Secured Notes may differ from the price at which it redeems the Secured Notes. Guaranteed Securities: Ambac’s fixed maturity portfolio includes securities covered by guarantees issued by AAC 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 and weighted-average underlying rating of insured securities in Ambac's investment portfolio at March 31, 2021 and December 31, 2020, respectively: Municipal Corporate (2) Mortgage Total Weighted (1) March 31, 2021: Ambac Assurance Corporation $ 323 $ 464 $ 465 $ 1,252 CCC+ National Public Finance Guarantee Corporation 4 — — 4 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 328 $ 464 $ 465 $ 1,257 CCC+ December 31, 2020: Ambac Assurance Corporation $ 320 $ 465 $ 481 $ 1,266 CCC+ National Public Finance Guarantee Corporation 6 — — 6 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 327 $ 465 $ 481 $ 1,273 CCC+ (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Represents Ambac's holdings of secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. These secured notes are insured by AAC. Other Investments: Ambac's investment portfolio includes interests in various pooled investment funds. Fair value and additional information about investments in pooled funds, by investment type, is summarized in the table below. Except as noted in the table, fair value as reported is determined using net asset value ("NAV") as a practical expedient. Redemption of certain funds valued using NAV may be subject to withdrawal limitations and/or redemption fees which could vary with the timing and notification of withdrawal provided by the investor. In addition to these investments, Ambac has unfunded commitments of $102 to private credit and private equity funds at March 31, 2021. Fair Value Class of Funds March 31, December 31, Redemption Frequency Redemption Notice Period Real estate properties (1) $ 16 $ 16 quarterly 10 business days Hedge funds (2) 210 196 quarterly or semi-annually 90 days High yields and leveraged loans (3) (10) 77 78 daily 0 - 30 days Private credit (4) 67 65 quarterly if permitted 180 days if permitted Insurance-linked investments (5) 3 3 see footnote (5) see footnote (5) Equity market investments (6) (10) 82 73 daily or quarterly 0 - 90 days Investment grade floating rate income (7) 98 73 weekly 0 days Private equity (8) 14 13 quarterly if permitted 90 days if permitted Emerging markets debt (9) (10) 33 25 daily 0 days Total equity investments in pooled funds $ 600 $ 543 (1) Investments consist of UK property to generate income and capital growth. (2) This class seeks to generate superior risk-adjusted returns through selective asset sourcing, active trading and hedging strategies across a range of asset types. (3) This class of funds includes investments in a range of instruments including high-yield bonds, leveraged loans, CLOs, ABS and floating rate notes to generate income and capital appreciation. (4) This class aims to obtain high long-term returns primarily through credit and preferred equity investments with low liquidity and defined term. (5) This class seeks to generate returns from insurance markets through investments in catastrophe bonds, life insurance and other insurance linked investments. This investment is restricted in connection with the unwind of certain insurance linked exposures. Ambac has redeemed its investment to the extent permitted by the fund. (6) This class of funds aim to achieve long term growth through diversified exposure to global equity-markets. (7) This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes. (8) This class seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. (9) This class seeks long-term income and growth through investments in the bonds of issuers in emerging markets. (10) These categories include fair value amounts totaling $99 and $89 at March 31, 2021 and December 31, 2020, respectively, that are readily determinable and are priced through pricing vendors, including for High yield and leveraged loans products: $0 and $3; for Equity market investments: $66 and $60; and for Emerging markets debt $33 and $25. Ambac held direct equity interests as of December 31, 2020, including in an unconsolidated trust created in connection with the 2014 sale of Segregated Account junior surplus notes, which was accounted for under the equity method. Investment Income (Loss): Net investment income (loss) was comprised of the following for the affected periods: Three Months Ended March 31, 2021 2020 Fixed maturity securities $ 23 $ 30 Short-term investments — 2 Investment expense (1) (2) Securities available-for-sale and short-term 22 31 Other investments 27 (52) Total net investment income (loss) $ 49 $ (21) Net investment income (loss) from Other investments primarily represents changes in fair value on securities classified as trading or accounted for under the fair value option and income from investment limited partnerships accounted for under the equity method. 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 March 31, 2021 2020 Net gains (losses) recognized during the period on trading securities $ 7 $ (32) Less: net gains (losses) recognized during the reporting period on trading securities sold during the period — (3) Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 6 $ (29) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | 10. 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 March 31, 2021 and December 31, 2020: Gross Gross Net Amounts Gross Amount Net March 31, 2021: Derivative Assets: Interest rate swaps $ 73 $ — $ 73 $ — $ 73 Futures contracts 1 — 1 — 1 Total non-VIE derivative assets $ 74 $ — $ 74 $ — $ 74 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 85 — 85 85 1 Total non-VIE derivative liabilities $ 86 $ — $ 86 $ 85 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 38 $ — $ 38 $ — $ 38 Total VIE derivative assets $ 38 $ — $ 38 $ — $ 38 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,739 $ — $ 1,739 $ — $ 1,739 Total VIE derivative liabilities $ 1,739 $ — $ 1,739 $ — $ 1,739 Gross Gross Net Amounts Gross Amount Net December 31, 2020: Derivative Assets: Interest rate swaps $ 93 $ — $ 93 $ — $ 93 Total non-VIE derivative assets $ 93 $ — $ 93 $ — $ 93 Derivative Liabilities: Interest rate swaps 114 — 114 113 1 Total non-VIE derivative liabilities $ 114 $ — $ 114 $ 113 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 41 $ — $ 41 $ — $ 41 Total VIE derivative assets $ 41 $ — $ 41 $ — $ 41 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,835 $ — $ 1,835 $ — $ 1,835 Total VIE derivative liabilities $ 1,835 $ — $ 1,835 $ — $ 1,835 Amounts representing 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 Unaudited Consolidated Balance Sheets. The amounts representing the right to reclaim cash collateral and posted margin, recorded in “Other assets” were $4 and $1 as of March 31, 2021 and December 31, 2020, respectively. There were no amounts held representing an obligation to return cash collateral as of March 31, 2021 and December 31, 2020. The following tables summarize the location and amount of gains and losses of derivative contracts in the Unaudited Consolidated Statements of Total Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) Three Months Ended March 31, 2021 2020 Non-VIE derivatives: Credit derivatives Net gains (losses) on derivative contracts $ — $ (1) Interest rate swaps Net gains (losses) on derivative contracts 17 (29) Futures contracts Net gains (losses) on derivative contracts 8 (40) Total Non-VIE derivatives $ 25 $ (70) Variable Interest Entities: Currency swaps Income (loss) on variable interest entities $ (2) $ 10 Interest rate swaps Income (loss) on variable interest entities 97 47 Total Variable Interest Entities 96 57 Total derivative contracts $ 121 $ (13) 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. Credit derivatives issued are insured by AAC. The outstanding credit derivative transaction at March 31, 2021, does not 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. Our credit derivatives were written on a “pay-as-you-go” basis. Similar to an insurance policy, 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. The principal notional outstanding for credit derivative contracts was $247 and $257 as of March 31, 2021 and December 31, 2020, respectively, all of which had internal Ambac ratings of AA in both periods. Interest Rate Derivatives: Ambac, through its subsidiary Ambac Financial Services (“AFS”), uses interest rate swaps, US Treasury futures contracts and other derivatives, to provide a partial economic hedge against the effects of rising interest rates elsewhere in the Company, including on Ambac’s financial guarantee exposures. Additionally, AFS provided interest rate swaps to states, municipalities and their authorities, asset-backed issuers and other entities in connection with their financings. As of March 31, 2021 and December 31, 2020, the notional amounts of AFS’s derivatives are as follows: Notional Type of Derivative March 31, December 31, Interest rate swaps—pay-fixed/receive-variable $ 987 $ 726 US Treasury futures contracts—short 470 240 Interest rate swaps—receive-fixed/pay-variable 190 195 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 March 31, 2021 and December 31, 2020, were as follows: Notional Type of VIE Derivative March 31, December 31, Interest rate swaps—receive-fixed/pay-variable $ 1,243 $ 1,233 Interest rate swaps—pay-fixed/receive-variable 1,143 1,151 Currency swaps 302 308 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 direct customer 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 AAC is no longer rated by an independent rating agency, counterparties have the right to terminate the swap positions. As of March 31, 2021 and December 31, 2020, the net liability fair value of derivative instruments with contingent features linked to Ambac’s own credit risk was $85 and $113, respectively, related to which Ambac had posted cash and securities as collateral with a fair value of $103 and $130, respectively. All such ratings-based contingent features have been triggered requiring maximum collateral levels to be posted by Ambac while preserving counterparties’ rights to terminate the contracts. Assuming all such contracts terminated at fair value on |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES AFG files a consolidated Federal income tax return with its subsidiaries. AFG 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 2016 United Kingdom 2017 Italy 2016 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 its deferred tax operating assets and therefore maintains a full valuation allowance. Consolidated Pretax Income (Loss) U.S. and foreign components of pre-tax income (loss) were as follows: Three Months Ended March 31, 2021 2020 U.S. $ 17 $ (257) Foreign 2 (30) Total $ 19 $ (287) Provision (Benefit) for Income Taxes The components of the provision for income taxes were as follows: Three Months Ended March 31, 2021 2020 Current taxes U. S. federal $ — $ — U.S. state and local 2 — Foreign 3 (2) Current taxes 5 (2) Deferred taxes Foreign (3) (5) Deferred taxes (3) (5) Provision for income taxes $ 2 $ (7) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 17: 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 31, 2020, and should be read in conjunction with the complete descriptions provided in the aforementioned Form 10-K. Litigation Against Ambac 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). Plaintiffs, the corporate developers of various military housing projects, filed a second amended complaint on December 17, 2018, against AAC, a former employee of AAC, and certain unaffiliated persons and entities, asserting claims for (i) violation of 18 U.S.C §§ 1962(c) and 1962(d) (civil Racketeer Influenced and Corrupt Organizations Act (“RICO”) and conspiracy to commit civil RICO), (ii) breach of fiduciary duty, (iii) aiding and abetting breach of fiduciary duty, (iv) fraudulent misrepresentation, (v) fraudulent concealment and (vi) conspiracy to commit fraud. On September 26, 2019, the court issued a decision denying a motion to dismiss filed by defendants and sua sponte reconsidering its previous denial of defendants’ motion to transfer venue to the Southern District of New York (“SDNY”). On October 10, 2019, after the case was transferred to the SDNY, the defendants filed motions in the SDNY to vacate or reconsider the decision by the Northern District of California on the defendants’ motion to dismiss. On March 31, 2021, the court granted defendants’ motions for reconsideration and, upon reconsideration, dismissed the claims against AAC and its former employee for breach of fiduciary duty and for aiding and abetting breach of AAC’s or its former employee’s fiduciary duty; dismissed two plaintiffs’ RICO claims against AAC and its former employee; and in all other respects denied defendants’ motions. Defendants served answers to the second amended complaint on April 21, 2021. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00003, filed Jan. 16, 2020). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the team of mediators designated in the Commonwealth’s restructuring cases (the “Mediation Team“), on January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by the Puerto Rico Infrastructure Financing Authority (“PRIFA”) and the PRIFA bond trustee, all of which defendants filed proofs of claim against the Commonwealth relating to PRIFA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. Oral argument on the Oversight Board’s motion for summary judgment was held on September 23, 2020. On January 20, 2021, the District Court granted defendants’ request for deferral of the adjudication of the summary judgment motion until defendants have the opportunity to conduct certain discovery. Discovery is ongoing. On May 5, 2021, monoline defendants Assured Guaranty Corporation, Assured Guaranty Municipal Corporation, and National Public Finance Guarantee Corporation (“Assured and National”) announced an agreement with the Oversight Board with respect to the treatment of bonds issued by the Puerto Rico Highways and Transportation Authority ("PRHTA") and the Puerto Rico Convention Center District Authority (“PRCCDA”) (the “PRHTA/PRCCDA Settlement”). Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00004, filed Jan. 16, 2020). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the Mediation Team, on January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by PRCCDA and the PRCCDA bond trustee, all of which defendants filed proofs of claim against the Commonwealth relating to PRCCDA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. Oral argument on the Oversight Board’s motion for summary judgment was held on September 23, 2020. On January 20, 2021, the District Court granted defendants’ request for deferral of the adjudication of the summary judgment motion until defendants have the opportunity to conduct certain discovery. Discovery is ongoing. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00005, filed Jan. 16, 2020). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the Mediation Team, on January 16, 2020, the Oversight Board filed an adversary proceeding against monoline insurers insuring bonds issued by PRHTA, certain PRHTA bondholders, and the PRHTA fiscal agent for bondholders, all of which defendants filed proofs of claim against the Commonwealth relating to PRHTA bonds. The complaint seeks to disallow defendants’ proofs of claim against the Commonwealth in their entirety, including for lack of secured status. Oral argument on the Oversight Board’s motion for summary judgment was held on September 23, 2020. On January 20, 2021, the District Court granted defendants’ request for deferral of the adjudication of the summary judgment motion until defendants have the opportunity to conduct certain discovery. Discovery is ongoing. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. Financial Oversight and Management Board for Puerto Rico v. Ambac Assurance Corp., et al. (United States District Court, District of Puerto Rico, No. 20-ap-00007, filed Jan. 16, 2020). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the Mediation Team, on January 16, 2020, the Oversight Board and the Committee filed an adversary proceeding against monoline insurers insuring bonds issued by PRHTA, certain PRHTA bondholders, and the PRHTA fiscal agent for bondholders, all of which defendants filed proofs of claim against PRHTA relating to PRHTA bonds. The complaint seeks to disallow portions of defendants’ proofs of claim against the PRHTA, including for lack of secured status. On March 10, 2020, the District Court stayed this case. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. AAC’s estimates of projected losses for RMBS transactions consider, among other things, the RMBS transactions’ payment waterfall structure, including the application of interest and principal payments and recoveries, and depend in part on our interpretations of contracts and other bases of our legal rights. From time to time, bond trustees and other transaction participants have employed different contractual interpretations and have commenced, or threatened to commence, litigation to resolve these differences. It is not possible to predict whether additional disputes will arise, nor the outcomes of any potential litigation. It is possible that there could be unfavorable outcomes in this or other disputes or proceedings and that our interpretations may prove to be incorrect, which could lead to changes to our estimate of loss reserves. AAC has periodically received various regulatory inquiries and requests for information with respect to investigations and inquiries that such regulators are conducting. AAC has complied with all such inquiries and requests for information. The Company is involved from time to time in various routine legal proceedings, including proceedings related to litigation with present or former employees. Although the Company’s litigation with present or former employees is routine and incidental to the conduct of its business, such litigation can result in large monetary awards when a civil jury is allowed to determine compensatory and/or punitive damages for, among other things, termination of employment that is wrongful or in violation of implied contracts. From time to time, Ambac is subject to allegations concerning its corporate governance that may lead to litigation, including derivative litigation, and while the monetary impacts may not be material, the matters may distract management and the Board of Directors from their principal focus on Ambac's business, strategy and objectives. 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 the Company which are probable and reasonably estimable, and management's estimated range of loss for such matters, are either not applicable or are not material to the operating results or financial position of the Company. For the litigation matters the Company 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. Puerto Rico In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17-bk-03283), Ambac Assurance Corporation’s Motion to Strike Certain Provisions of the Plan Support Agreement By and Among the Financial Oversight and Management Board for Puerto Rico, Certain GO Holders, and Certain PBA Holders (Dkt. No. 13573, filed July 7, 2020) (“Amended Motion to Strike PSA”). On June 16, 2019, the Oversight Board announced that it had entered into a PSA with certain general obligation and PBA bondholders that includes a proposed resolution of claim objections to and issues surrounding both general obligation and PBA bonds. On July 16, 2019, AAC filed a motion to strike certain provisions of the PSA that it believes violate PROMESA, including the potential payment of a breakup fee to creditors who have supported the PSA (Dkt. No. 8020) (Original Motion to Strike PSA). On February 9, 2020, the Oversight Board executed the Amended PSA and on March 10, 2020, the District Court denied the Original Motion to Strike PSA without prejudice given the execution of the Amended PSA. On July 7, 2020, AAC filed the Amended Motion to Strike PSA seeking similar relief with respect to the Amended PSA. On February 23, 2021, the Oversight Board announced that it entered into a further revised PSA (the “Second Amended PSA”), and that all parties to the Amended PSA had jointly terminated the Amended PSA, and on March 31, 2021, the District Court denied the Amended Motion to Strike PSA without prejudice given the execution of the Second Amended PSA. In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17-bk-03283), Ambac Assurance Corporation's Motion and Memorandum of Law in Support of Its Motion Concerning Application of the Automatic Stay to the Revenues Securing PRIFA Rum Tax Bonds (Dkt. No. 7176, filed May 30, 2019) (“PRIFA Stay Motion”). On May 30, 2019, AAC filed a motion seeking an order that the automatic stay does not apply to certain lawsuits AAC seeks to bring or to continue relating to bonds issued by PRIFA, or, in the alternative, for relief from the automatic stay to pursue such lawsuits or for adequate protection of AAC's collateral. On July 2, 2020, the District Court denied the motion to lift the stay on certain grounds. Briefing regarding additional grounds on which AAC and other movants seek stay relief concluded on August 5, 2020; on September 9, 2020, the District Court denied the motion to lift the stay on the additional grounds. On September 23, 2020, AAC and the other movants appealed this decision to the First Circuit. On March 3, 2021, the First Circuit affirmed the District Court’s opinions denying the motion to lift the stay. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17-bk-03283), Motion of Assured Guaranty Corp., Assured Municipal Corp., Ambac Assurance Corporation, National Public Finance Guarantee Corporation, and Financial Guaranty Insurance Company for Relief from the Automatic Stay, or, in the Alternative, Adequate Protection (Dkt. No. 10102, filed January 16, 2020) (“PRHTA Stay Motion”). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the Mediation Team, on January 16, 2020, AAC, together with Assured Guaranty Corp., Assured Municipal Corp., National Public Finance Guarantee Corporation, and Financial Guaranty Insurance Company filed a motion seeking an order that the automatic stay does not apply to movants’ enforcement of the application of pledged revenues to the PRHTA bonds or the enforcement of movants’ liens on revenues pledged to such bonds, or, in the alternative, for adequate protection of movants’ interests in the revenues pledged to PRHTA bonds. On July 2, 2020, the District Court denied the motion to lift the stay on certain grounds. Briefing regarding additional grounds on which AAC and other movants seek stay relief concluded on August 5, 2020; on September 9, 2020, the District Court denied the motion to lift the stay on the additional grounds. On September 23, 2020, AAC and the other movants appealed this decision to the First Circuit. On March 3, 2021, the First Circuit affirmed the District Court’s opinions denying the motion to lift the stay. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17-bk-03283), Ambac Assurance Corporation, Financial Guaranty Insurance Company, Assured Guaranty Corp., Assured Municipal Corp., and the Bank of New York Mellon’s Motion Concerning Application of the Automatic Stay to the Revenues Securing the CCDA Bonds (Dkt. No. 10104, filed January 16, 2020) (“PRCCDA Stay Motion”). Pursuant to an order of the District Court setting out an agreed schedule for litigation submitted by the Mediation Team, on January 16, 2020, AAC, together with Financial Guaranty Insurance Company, Assured Guaranty Corp., Assured Municipal Corp., and the PRCCDA bond trustee, filed a motion seeking an order either (i) that the automatic stay does not apply to movants’ enforcement of their rights to revenues pledged to PRCCDA bonds by bringing an enforcement action against PRCCDA; or, in the alternative, (ii) lifting the automatic stay to enable movants to pursue an enforcement action against PRCCDA; or, in the further alternative, (iii) ordering adequate protection of movants’ interests in the PRCCDA pledged to PRCCDA bonds. On July 2, 2020, the District Court denied the motion to lift the stay on certain grounds, but found that the movants had stated a colorable claim that a certain account was the “Transfer Account” on which movants hold a lien. Briefing regarding additional grounds on which AAC and other movants seek stay relief concluded on August 5, 2020; on September 9, 2020, the District Court denied the motion to lift the stay on the additional grounds, and found that a final determination on issues related to the identity of the Transfer Account would be made in the decision on the motions for summary judgment issued in the CCDA-related adversary proceeding, No. 20-ap-00004. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. Ambac Assurance Corporation v. Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Oriental Financial Services LLC; Popular Securities LLC; Raymond James & Associates, Inc., RBC Capital Markets LLC; Samuel A. Ramirez & Co. Inc., Santander Securities LLC; UBS Financial Services Inc.; and UBS Securities LLC (Commonwealth of Puerto Rico, Court of First Instance, San Juan Superior Court, Case No. SJ-2020-CV-01505, filed February 19, 2020). On February 19, 2020, AAC filed a complaint in the Commonwealth of Puerto Rico, Court of First Instance, San Juan Superior Court, against certain underwriters of Ambac-insured bonds issued by PRIFA and PRCCDA, with causes of action under the Puerto Rico civil law doctrines of actos proprios and Unilateral Declaration of Will. AAC alleges defendants engaged in inequitable conduct in underwriting Ambac-insured bonds issued by PRIFA and PRCCDA, including failing to investigate and adequately disclose material information in the official statements for the bonds that defendants provided to AAC regarding systemic deficiencies in the Commonwealth’s financial reporting. AAC seeks damages in compensation for claims paid by AAC on its financial guaranty insurance policies insuring such bonds, pre-judgment and post-judgment interest, and attorneys’ fees. On March 20, 2020, defendants removed this case to the Title III Court. On April 20, 2020, AAC moved to remand the case back to the Court of First Instance. On July 29, 2020, the District Court granted AAC’s motion to remand the case to the Commonwealth court. AAC filed an amended complaint in the Commonwealth court on October 28, 2020. In the Amended Complaint, AAC added claims on bonds issued by the Commonwealth, PBA and PRHTA and added defendants that had underwritten these bonds. Defendants filed motions to dismiss on December 8 and 14, 2020; briefing on the motions to dismiss was completed on March 5, 2021. Ambac Assurance Corporation v. Autopistas Metropolitanas de Puerto Rico, LLC (United States District Court, District of Puerto Rico, No. 3:20-cv-01094, filed February 19, 2020). On February 19, 2020, AAC filed a complaint in the U.S. District Court for the District of Puerto Rico, against Autopistas Metropolitanas de Puerto Rico, LLC (“Metropistas”), which holds a concession from PRHTA for two Puerto Rico highways, PR-5 and PR-22, in connection with a 10-year extension of the concession that was entered into in April 2016. The complaint includes claims for fraudulent conveyance and unjust enrichment, alleging that the consideration paid by Metropistas for the extension was less than reasonably equivalent value and most of the benefit of such payment was received by the Commonwealth instead of PRHTA. AAC also seeks a declaratory judgment that it has a valid and continuing lien on certain toll revenues that are being collected by Metropistas. On June 16, 2020, the Title III Court ordered AAC to withdraw its complaint. AAC withdrew its complaint on June 23, 2020, and noticed an appeal from the Title III Court’s order to withdraw on June 30, 2020. AAC’s opening appeal brief was filed before the First Circuit on October 19, 2020; briefing was completed on February 12, 2021 and oral argument was held on March 8, 2021. In re Financial Oversight and Management Board for Puerto Rico (United States District Court, District of Puerto Rico, No. 1:17-bk-03283), Urgent Motion for Bridge Order, and Motion for Appointment as Trustees Under 11 U.S.C. § 926, of Ambac Assurance Corporation, Assured Guaranty Corp., Assured Guaranty Municipal Corp., Financial Guaranty Insurance Company, and National Public Finance Guarantee Corporation (Dkt. No. 13708, filed July 17, 2020) (“PRHTA Trustee Motion”). On July 17, 2020, AAC, together with Assured Guaranty Corporation, Assured Guaranty Municipal Corporation, and Financial Guaranty Insurance Company, filed a motion seeking appointment as trustees under Section 926 of the Bankruptcy Code to pursue certain avoidance actions on behalf of PRHTA against the Commonwealth of Puerto Rico. The PRHTA Trustee Motion attached a proposed complaint detailing the avoidance claims that movants would pursue. On August 11, 2020, the District Court denied the PRHTA Trustee Motion; on August 24, 2020, movants noticed an appeal of the denial of the PRHTA Trustee Motion to the First Circuit. Movants’ opening brief before the First Circuit was filed on February 17, 2021; briefing is expected to conclude on May 24, 2021. On May 5, 2021, Assured and National announced an agreement with the Oversight Board with respect to the PRHTA/PRCCDA Settlement. Per the terms of the agreement, AAC anticipates the Oversight Board, Assured, and National will seek to stay this case with respect to Assured and National as a result of the PRHTA/PRCCDA Settlement. 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 March 19, 2020, intervenor Transworld Systems Inc. filed a motion to dismiss this action by the Consumer Financial Protection Bureau (“CFPB”) against fifteen National Collegiate Student Loan Trusts, regarding alleged improprieties and deficiencies in servicing practices for lack of subject matter jurisdiction. On July 10, 2020, AAC and several other intervenors filed a motion to dismiss the action for lack of subject matter jurisdiction and for failure to state a claim. Additionally, on July 2, 2020, the CFPB submitted an application for entry of default against the Trusts. On March 26, 2021, the court granted intervenors’ motion to dismiss for failure to state a claim and denied the motion to dismiss for lack of subject matter jurisdiction. The court also denied as moot the CFPB’s application for entry of default against the Trusts. The CFPB filed an amended complaint on April 30, 2021. RMBS Litigation In connection with AAC’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 transactions and for failure to comply with the obligation by the sponsors to repurchase ineligible loans, AAC has filed various lawsuits: • 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). Oral argument on AAC’s appeal of the court’s dismissal on December 4, 2020, of its fraud claim was held on April 20, 2021. We can provide no assurance as to the outcome of the appeal. Investors should not assume that AAC's fraud claim will be reinstated. • 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 “SDNY Action”)); In the matter of HarborView Mortgage Loan Trust 2005-10 (Minnesota state court, Docket No. 27-TR-CV-17-32 (the “Minnesota Action”)). On March 9, 2021, AAC filed its opening brief for its appeal of the granting by the court in the SDNY Action of U.S. Bank’s motion for summary judgment with respect to AAC’s repayment right in the trust waterfall. |
Intangible Assets (Notes)
Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Statement of Financial Position [Abstract] | |
Intangible Assets Disclosure [Text Block] | 7. INTANGIBLE ASSETS Insurance intangible asset: The insurance intangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below. March 31, December 31, Gross carrying value of insurance intangible asset $ 1,282 $ 1,281 Accumulated amortization of insurance intangible asset 927 908 Net insurance intangible asset $ 356 373 Other Intangible Assets: In connection with the acquisition of Xchange the fair value of identifiable intangible assets were recorded. The majority of these intangible assets relate to existing relationships Xchange maintained with a variety of brokers and distributors across its product lines. The gross carrying value of the identifiable intangibles, accumulated amortization and net identifiable intangibles is $36, $1 and $35, respectively at March 31, 2021 and $36, $— and $36, respectively at December 31, 2020. The overall weighted average useful life of the identified amortizable intangible assets acquired is 14.0 years. Amortization Expense: Amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss), as shown below. Three Months Ended March 31, 2021 2020 Insurance amortization expense $ 19 $ 13 Other amortization expense 1 — Total $ 19 $ 13 The estimated future amortization expense for intangible assets is as follows: Amortization expense Insurance Intangible Asset (1) (2) Other Intangible Assets Total 2021 (Nine months) $ 28 $ 2 $ 30 2022 35 3 37 2023 31 3 34 2024 29 3 31 2025 26 3 29 Thereafter 207 22 229 (1) The insurance intangible asset will be amortized using a level-yield method based on par exposure of the related financial guarantee insurance or reinsurance contracts. 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 borrowers have the right to call or prepay certain obligations. If those obligations are retired early, amortization expense may differ in the period of call or refinancing. from the amounts provided in the table above. (2) The weighted-average insurance intangible amortization period is 7.4 years. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | Consolidation: The consolidated financial statements include the accounts of AFG and all other entities in which AFG (directly or through its subsidiaries) has a controlling financial interest, including variable interest entities (“VIEs”) for which AFG or an AFG 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. See Note 3. Variable Interest Entities , for a |
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, 2020. 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 months ended March 31, 2021, may not be indicative of the results that may be expected for the year ending December 31, 2021. The December 31, 2020, consolidated balance sheet was derived from audited financial statements. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency: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) and $1 for the three months ended March 31, 2021 and 2020, 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 and Rounding Reclassifications may have been made to prior years' amounts to conform to the current year's presentation. Certain amounts and tables in the consolidated financial statements and associated notes may not add due to rounding. |
New Accounting Pronouncements and Changes in Accounting Principles | Adopted Accounting Standards: Effective January 1, 2021, the Company adopted the following accounting standard: |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Future Application of Accounting Standards: Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides companies with optional guidance to ease the potential accounting burden related to transitioning away from reference rates, such as LIBOR, that are expected to be discontinued as a result of initiatives undertaken by various jurisdictions around the world. For example, under current GAAP, contract modifications which change a reference rate are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The amendments in this ASU provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU can be applied prospectively as of the beginning of the interim period that includes or is subsequent to March 12, 2020, or any date thereafter, but does not apply to contract modifications and other transactions entered into or evaluated after December 31, 2022. Management has not determined when it will adopt this ASU, and the impact on Ambac's financial statements is being evaluated. |
Insurance Premiums Revenue Recognition, Policy | Revenue Recognition: Revenues for the MGA/U business operations are recognized in accordance with the Revenue from Contracts with Customers Topic of the ASC. The following steps are applied to recognize revenue: identify the contract(s) with the customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the entity satisfies a performance obligation. A performance obligation is satisfied either at a point in time or over time depending on the nature of the product or service provided, and the specific terms of the contract with customers. MGA/U performance obligations consist of placing policies with insurers and, for certain products, providing claims servicing. Revenue from limited and short-term medical policies sold through affinity groups ("Affinity") are recognized up front as no further performance obligations exist after policy placement. Revenue from employer stop loss policies ("ESL") is apportioned to policy placement, recognized upfront, and claims servicing, recognized over the claim period, based on the relative stand-alone selling price of the respective performance obligations. Revenue consists of base and profit-sharing commissions. Base commissions, associated with policy placement and claims servicing, are estimated by applying the contractual commission percentages to estimated gross premiums written. Profit-sharing commissions represent variable consideration associated with policy placement only and are estimated based on expected loss ratios and the estimated gross premium for base commissions. Base and profit-sharing commissions are estimated with a constraint applied such that a significant reversal of revenue in the future is not probable. MGA/U revenue is reported in other income (expense) on the Consolidated Statement of Total Comprehensive Income. Contract assets represent the Company's right to future consideration for services it has already transferred to the customer, which is also conditional on future performance. Once the right to consideration becomes unconditional, it is reported as a receivable. Contract liabilities represent the Company's obligation to transfer services for which it has already received consideration from the customer. Contract assets and contract liabilities are reported as other assets and other liabilities, respectively, on the Consolidated Balance Sheet. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental Disclosure of Cash Flow Information Three Months Ended March 31, 2021 2020 Cash paid during the period for: Income taxes $ 8 $ 2 Interest on long-term debt 25 31 Non-cash financing activities: Decrease in long-term debt as a result of surplus notes exchanges $ 71 $ — March 31, 2021 2020 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 $ 23 $ 58 Restricted cash 16 31 Variable Interest Entity restricted cash 2 2 Total cash, cash equivalents, and restricted cash shown on the Consolidated Statements of Cash Flows $ 42 $ 91 |
Redeemable Noncontrolling Interest | Following is a rollforward of redeemable noncontrolling interest. Three Months Ended March 31, 2021 Beginning balance $ 7 Net income attributable to redeemable noncontrolling interest (ASC 810) — Adjustment to redemption value (ASC 480) $ 13 Ending balance $ 20 |
Special Purpose Entities, Inclu
Special Purpose Entities, Including Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entity [Line Items] | |
Components of VIE Gain (Loss) [Table Text Block] | The following schedule details the components of Income (loss) on variable interest entities for the affected periods: Three Months Ended March 31, 2021 2020 Net change in fair value of VIE assets and liabilities reported under the fair value option $ (1) $ — Less: Credit risk changes of fair value option long-term debt reported through other comprehensive income (loss) 1 (4) Net change in fair value of VIE assets and liabilities reported in earnings (1) (4) Investment income on available-for-sale securities 2 2 Net realized investment gains (losses) on available-for-sale securities 1 8 Interest expense on long-term debt carried at par less unamortized cost (1) (2) Income (loss) on variable interest entities $ — $ 3 |
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 March 31, 2021 and December 31, 2020: Carrying Value of Assets and Liabilities Maximum (1) Insurance (2) Insurance (3) Net Derivative (4) March 31, 2021: Global structured finance: Mortgage-backed—residential $ 4,065 $ 1,951 $ 513 $ — Other consumer asset-backed 981 23 239 — Other commercial asset-backed 23 3 1 — Other 958 — 13 7 Total global structured finance 6,027 1,977 766 7 Global public finance 21,330 266 291 — Total $ 27,357 $ 2,243 $ 1,057 $ 6 December 31, 2020: Global structured finance: Mortgage-backed—residential $ 4,308 $ 2,024 $ 580 $ — Other consumer asset-backed 1,050 24 239 — Other commercial asset-backed 24 3 1 — Other 970 — 13 8 Total global structured finance 6,352 2,051 834 8 Global public finance 21,646 263 287 — Total $ 27,998 $ 2,314 $ 1,122 $ 8 (1) Maximum exposure to loss represents the maximum future payments of principal and interest on insured obligations and derivative contracts. 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 included in “Premium receivables” and “Subrogation recoverable” for financial guarantee insurance contracts on Ambac’s Consolidated Balance Sheets. (3) Insurance liabilities represent the amount included 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. |
Schedule of Variable Interest Entities Assets and Liabilities [Table Text Block] | The following table summarizes the carrying values of assets and liabilities, along with other supplemental information related to VIEs that are consolidated as a result of financial guarantees of Ambac UK and AAC: March 31, 2021 December 31, 2020 Ambac UK Ambac Assurance Total VIEs Ambac UK Ambac Assurance Total VIEs ASSETS: Fixed maturity securities, at fair value: Corporate obligations, fair value option $ 3,103 $ — $ 3,103 $ 3,215 $ — $ 3,215 Municipal obligations, available-for-sale (1) — 133 133 — 139 139 Total FG VIE fixed maturity securities, at fair value 3,103 133 3,236 3,215 139 3,354 Restricted cash 1 1 2 1 1 2 Loans, at fair value (2) 2,948 — 2,948 2,998 — 2,998 Derivative assets 38 — 38 41 — 41 Other assets — 1 1 — 2 2 Total FG VIE assets $ 6,090 $ 135 $ 6,225 $ 6,255 $ 143 $ 6,398 LIABILITIES: Long-term debt: Long-term debt, at fair value (3) $ 4,264 $ — $ 4,264 $ 4,324 $ — $ 4,324 Long-term debt, at par less unamortized discount — 163 163 — 169 169 Total long-term debt 4,264 163 4,427 4,324 169 4,493 Derivative liabilities 1,739 — 1,739 1,835 — 1,835 Total FG VIE liabilities $ 6,003 $ 163 $ 6,166 $ 6,159 $ 169 $ 6,328 Number of FG VIEs consolidated 5 1 6 5 1 6 (1) Available-for-sale FG VIE fixed maturity securities consist of municipal obligations with an amortized cost basis of $109 and $113, and aggregate gross unrealized gains of $23 and $27 at March 31, 2021 and December 31, 2020, respectively. All such securities had contractual maturities due after ten years as of March 31, 2021. (2) The unpaid principal balances of loan assets carried at fair value were $2,519 as of March 31, 2021 and $2,546 as of December 31, 2020. (3) The unpaid principal balances of long-term debt carried at fair value were $3,758 as of March 31, 2021 and $3,769 as of December 31, 2020. |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021: Beginning Balance $ 166 $ 5 $ (92) $ — $ 79 Other comprehensive income (loss) before reclassifications (21) — 6 — (15) Amounts reclassified from accumulated other comprehensive income (loss) (3) — — (1) (3) Net current period other comprehensive income (loss) (24) — 6 (1) (18) Balance at March 31, 2021 $ 142 $ 5 $ (86) $ (1) $ 61 Three Months Ended March 31, 2020: Beginning Balance $ 151 $ 8 $ (116) $ (2) $ 42 Other comprehensive income (loss) before reclassifications (139) (2) (46) — (187) Amounts reclassified from accumulated other comprehensive income (loss) (7) — — 3 (4) Net current period other comprehensive income (loss) (146) (2) (46) 3 (191) Balance at March 31, 2020 $ 5 $ 6 $ (162) $ 2 $ (149) (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. |
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 Amount Reclassified from Accumulated Other Comprehensive Income Affected Line Item in the Three Months Ended March 31, 2021 2020 Unrealized Gains (Losses) on Available-for-Sale Securities $ (2) $ (8) Net realized investment gains (losses) (1) 1 Provision for income taxes $ (3) $ (7) Net of tax and noncontrolling interest Amortization of Postretirement Benefit Prior service cost $ — $ — Other income Actuarial (losses) — — Other income — — Total before tax — — Provision for income taxes $ — $ — Net of tax and noncontrolling interest Credit risk changes of fair value option liabilities $ (1) $ 4 Credit risk changes of fair value option liabilities — (1) Provision for income taxes $ (1) $ 3 Net of tax and noncontrolling interest Total reclassifications for the period $ (3) $ (4) Net of tax and noncontrolling interest |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share | The following table provides a reconciliation of the weighted average shares denominator used for basic net income per share to the denominator used for diluted net income per share: Three Months Ended March 31, 2021 2020 Basic weighted average shares outstanding denominator 46,314,049 46,060,324 Effect of potential dilutive shares (1) : Stock options — — Warrants 214,904 — Restricted stock units 121,215 — Performance stock units (2) 207,896 — Diluted weighted average shares outstanding denominator 46,858,064 46,060,324 Anti-dilutive shares excluded from the above reconciliation: Stock options — 16,667 Warrants — 4,877,749 Restricted stock units 165,529 236,189 Performance stock units (2) — 738,039 (1) For the three months ended March 31, 2020, 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) Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period. |
Financial Guarantee Insurance C
Financial Guarantee Insurance Contracts (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Insurance [Line Items] | |
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table [Table Text Block] | at March 31, 2021 and December 31, 2020: March 31, 2021: December 31, 2020: Present Value of Expected Unearned Gross Loss and Present Value of Expected Unearned Gross Loss and Balance Sheet Line Item Claims and Recoveries Claims and Recoveries Loss and loss expense reserves $ 1,831 $ (102) $ (67) $ 1,662 $ 2,060 $ (229) $ (72) $ 1,759 Subrogation recoverable 99 (2,175) — (2,076) 100 (2,256) — (2,156) Totals $ 1,930 $ (2,277) $ (67) $ (414) $ 2,160 $ (2,486) $ (72) $ (397) |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for intangible assets is as follows: Amortization expense Insurance Intangible Asset (1) (2) Other Intangible Assets Total 2021 (Nine months) $ 28 $ 2 $ 30 2022 35 3 37 2023 31 3 34 2024 29 3 31 2025 26 3 29 Thereafter 207 22 229 (1) The insurance intangible asset will be amortized using a level-yield method based on par exposure of the related financial guarantee insurance or reinsurance contracts. 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 borrowers have the right to call or prepay certain obligations. If those obligations are retired early, amortization expense may differ in the period of call or refinancing. from the amounts provided in the table above. (2) The weighted-average insurance intangible amortization period is 7.4 years. |
Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) | Below is the gross premium receivable roll-forward (direct and assumed contracts) for the affected periods: Three Months Ended March 31, 2021 2020 Beginning premium receivable $ 370 $ 416 Adjustment to initially apply ASU 2016-13 — (3) Premium receipts (12) (12) Adjustments for changes in expected and contractual cash flows (1) (8) 10 Accretion of premium receivable discount 2 2 Changes to allowance for credit losses 4 (2) Other adjustments (including foreign exchange) — (8) Ending premium receivable (2) $ 356 $ 403 (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 March 31, 2021 and 2020, premium receivables include British |
Effect of Reinsurance on Premiums Written and Earned | The effect of reinsurance on premiums written and earned was as follows: Three Months Ended March 31, 2021 2020 Written Earned Written Earned Direct $ (2) $ 17 $ 11 $ 13 Assumed — — — 1 Ceded 7 3 (1) 3 Net premiums $ (9) $ 14 $ 12 $ 10 |
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: Three Months Ended March 31, 2021 2020 United States $ 7 $ 7 United Kingdom 3 4 Other international 3 — Total $ 14 $ 10 |
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 March 31, 2021: Future Premiums Collected (1) Future (2) Three months ended: June 30, 2021 $ 8 $ 8 September 30, 2021 9 8 December 31, 2021 8 8 Twelve months ended: December 31, 2022 34 31 December 31, 2023 33 29 December 31, 2024 32 28 December 31, 2025 30 26 Five years ended: December 31, 2030 129 110 December 31, 2035 90 71 December 31, 2040 42 29 December 31, 2045 19 11 December 31, 2050 7 4 December 31, 2055 1 — Total $ 443 $ 364 (1) Future premiums to be collected are undiscounted, gross of allowance for credit losses, and are used to derive the discounted premium receivable asset recorded on Ambac's balance sheet. (2) 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 |
Premiums Receivable by Risk Classification Code [Table Text Block] | Below is the amortized cost basis of premium receivables by risk classification code and asset class as of March 31, 2021 and December 31, 2020: Surveillance Categories as of March 31, 2021 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 152 $ 13 $ — $ — $ — $ 165 Other 2 — — — — 2 Total Public Finance 154 13 — — — 167 Structured Finance: Mortgage-backed and home equity 2 — 1 3 14 20 Structured insurance 14 — — — — 14 Student loan 2 — 2 10 — 14 Other 7 — — — — 7 Total Structured Finance 25 — 3 13 14 55 International: Sovereign/sub-sovereign 86 12 — 12 — 111 Investor-owned and public utilities 30 — — — — 30 Other 6 — — — — 6 Total International 123 12 — 12 — 148 Total (1) $ 302 $ 25 $ 3 $ 25 $ 14 $ 369 Surveillance Categories as of December 31, 2020 Type of Guaranteed Bond I IA II III IV Total Public Finance: Housing revenue $ 155 $ 13 $ — $ — $ — $ 168 Other 2 15 — — — 17 Total Public Finance 157 27 — — — 185 Structured Finance: Mortgage-backed and home equity 3 — 1 3 15 22 Structured insurance 14 — — — — 14 Student loan 3 — 2 11 — 16 Other 7 — — — — 7 Total Structured Finance 27 — 3 14 15 59 International: Sovereign/sub-sovereign 82 13 — 13 — 108 Investor-owned and public utilities 31 — — — — 31 Other 5 — — — — 5 Total International 118 13 — 13 — 144 Total (1) $ 302 $ 40 $ 3 $ 27 $ 15 $ 387 (1) The underwriting origination dates for all policies included are greater than five years prior to the current reporting date. |
Premium Receivable, Allowance for Credit Loss [Table Text Block] | Below is a rollforward of the premium receivable allowance for credit losses as of March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Beginning balance (1) $ 17 $ 9 Current period provision (2) (4) 5 Write-offs of the allowance — — Recoveries of previously written-off amounts — — Ending balance $ 13 $ 14 (1) At December 31, 2019, $9 of premiums receivable were deemed uncollectible as determined under prior GAAP rules. (2) The three months ended March 31, 2020, includes $3 from the adoption of CECL. |
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance | Below is the loss and loss reserve expense roll-forward, net of subrogation recoverable and reinsurance, for the affected periods: Three Months Ended March 31, 2021 2020 Beginning gross loss and loss expense reserves $ (397) $ (482) Reinsurance recoverable 33 26 Beginning balance of net loss and loss expense reserves (430) (508) Losses and loss expenses (benefit): Current year — 27 Prior years 8 90 Total (1) (2) 8 117 Loss and loss expenses paid (recovered): Current year — — Prior years 25 39 Total 25 39 Foreign exchange effect — — Ending net loss and loss expense reserves (447) (430) Reinsurance recoverable (3) 33 35 Ending gross loss and loss expense reserves $ (414) $ (395) (1) Total losses and loss expenses (benefit) includes $(1) and $(10) for the three months ended March 31, 2021 and 2020, respectively, related to ceded reinsurance. (2) Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties ("R&W's) by transaction sponsors within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated R&W's for the three months ended March 31, 2021 and 2020, was $3 and $(36), respectively. (3) 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 $0 and $1 as of March 31, 2021 and 2020, respectively, related to previously presented loss and loss expenses and subrogation. |
Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable | The tables below summarize information related to policies currently included in Ambac’s loss and loss expense reserves or subrogation recoverable at March 31, 2021 and December 31, 2020. 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 March 31, 2021 and December 31, 2020,was 1.8% and 1.1%, respectively. Surveillance Categories as of March 31, 2021 I IA II III IV V Total Number of policies 36 25 17 15 131 5 229 Remaining weighted-average contract period (in years) (1) 10 18 8 16 13 7 15 Gross insured contractual payments outstanding: Principal $ 738 $ 1,158 $ 599 $ 1,421 $ 3,124 $ 47 $ 7,087 Interest 255 1,078 479 199 1,376 25 3,413 Total $ 994 $ 2,236 $ 1,078 $ 1,620 $ 4,500 $ 72 $ 10,500 Gross undiscounted claim liability $ 3 $ 49 $ 41 $ 581 $ 1,498 $ 72 $ 2,245 Discount, gross claim liability — (4) (1) (138) (224) (5) (372) Gross claim liability before all subrogation and before reinsurance 3 46 40 443 1,274 67 1,872 Less: Gross RMBS subrogation (2) — — — — (1,749) — (1,749) Discount, RMBS subrogation — — — — 2 — 2 Discounted RMBS subrogation, before reinsurance — — — — (1,748) — (1,748) Less: Gross other subrogation (3) — — — (36) (510) (12) (559) Discount, other subrogation — — — 2 25 2 30 Discounted other subrogation, before reinsurance — — — (34) (485) (10) (530) Gross claim liability, net of all subrogation and discounts, before reinsurance 3 46 40 409 (959) 56 (405) Less: Unearned premium revenue (2) (14) (5) (16) (29) (1) (67) Plus: Loss expense reserves 2 — 1 5 49 — 57 Gross loss and loss expense reserves $ 2 $ 32 $ 36 $ 398 $ (938) $ 56 $ (414) Reinsurance recoverable reported on Balance Sheet (4) $ — $ 7 $ 10 $ 24 $ (8) $ — $ 33 (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 $33 related to future loss and loss expenses and $0 related to presented loss and loss expenses and subrogation. Surveillance Categories as of December 31, 2020 I IA II III IV V Total Number of policies 40 25 15 15 132 5 232 Remaining weighted-average contract period (in years) (1) 10 18 8 16 14 7 14 Gross insured contractual payments outstanding: Principal $ 842 $ 1,375 $ 595 $ 1,469 $ 3,246 $ 47 $ 7,573 Interest 279 1,011 484 215 1,427 26 3,443 Total $ 1,121 $ 2,386 $ 1,079 $ 1,685 $ 4,673 $ 72 $ 11,016 Gross undiscounted claim liability $ 3 $ 49 $ 40 $ 541 $ 1,690 $ 72 $ 2,395 Discount, gross claim liability — (2) (1) (85) (213) (3) (303) Gross claim liability before all subrogation and before reinsurance 3 47 40 456 1,477 69 2,092 Less: Gross RMBS subrogation (2) — — — — (1,753) — (1,753) Discount, RMBS subrogation — — — — 3 — 3 Discounted RMBS subrogation, before reinsurance — — — — (1,751) — (1,751) Less: Gross other subrogation (3) — — — (36) (706) (12) (755) Discount, other subrogation — — — 1 18 1 20 Discounted other subrogation, before reinsurance — — — (35) (689) (11) (735) Gross claim liability, net of all subrogation and discounts, before reinsurance 3 47 39 421 (963) 58 (394) Less: Unearned premium revenue (2) (16) (5) (17) (30) (1) (72) Plus: Loss expense reserves 1 2 1 5 59 — 68 Gross loss and loss expense reserves $ 2 $ 32 $ 35 $ 409 $ (933) $ 57 $ (397) Reinsurance recoverable reported on Balance Sheet (4) $ — $ 6 $ 9 $ 24 $ (6) $ — $ 33 (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 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 $33 related to future loss and loss expenses and $1 related to presented loss and loss expenses and subrogation. |
Summary of Rollforward of RMBS Subrogation, by Estimation Approach | Below is the rollforward of RMBS R&W subrogation for the affected periods: Three Months Ended March 31, 2021 2020 Discounted R&W subrogation (gross of reinsurance) at beginning of period $ 1,751 $ 1,727 All other changes (1) (3) $ 36 Discounted R&W subrogation (gross of reinsurance) at end of period $ 1,748 $ 1,764 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020, 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: March 31, 2021: Level 1 Level 2 Level 3 Financial assets: Fixed maturity securities: Municipal obligations $ 366 $ 366 $ — $ 366 $ — Corporate obligations 1,108 1,108 2 1,106 — Foreign obligations 97 97 97 — — U.S. government obligations 108 108 108 — — Residential mortgage-backed securities 269 269 — 269 — Collateralized debt obligations 97 97 — 97 — Other asset-backed securities 295 295 — 219 76 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 105 105 105 — — Short term investments 397 397 311 86 — Other investments (1) 600 600 99 — — Cash, cash equivalents and restricted cash 39 39 38 2 — Derivative assets: Interest rate swaps—asset position 73 73 — 7 66 Futures contracts 1 1 1 — — Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-Loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,103 3,103 — — 3,103 Fixed maturity securities: Municipal obligations 133 133 — 133 — Restricted cash 2 2 2 — — Loans 2,948 2,948 — — 2,948 Derivative assets: Currency swaps-asset position 38 38 — 38 — Total financial assets $ 9,799 $ 9,799 $ 778 $ 2,323 $ 6,197 Financial liabilities: Long term debt, including accrued interest $ 3,177 $ 3,032 $ — $ 3,011 $ 20 Derivative liabilities: Interest rate swaps—asset position 85 85 — 85 — Liabilities for net financial guarantees written (2) (751) 279 — — 279 Variable interest entity liabilities: Long-term debt (includes $4,264 at fair value) 4,427 4,451 — 4,290 160 Derivative liabilities: Interest rate swaps—liability position 1,739 1,739 — 1,739 — Total financial liabilities $ 8,677 $ 9,586 $ — $ 9,126 $ 460 Carrying Total Fair Fair Value Measurements Categorized as: December 31, 2020: Level 1 Level 2 Level 3 Financial assets: Fixed maturity securities: Municipal obligations $ 358 $ 358 $ — $ 358 $ — Corporate obligations 1,077 1,077 4 1,073 — Foreign obligations 98 98 98 — — U.S. government obligations 106 106 106 — — Residential mortgage-backed securities 302 302 — 302 — Collateralized debt obligations 74 74 — 74 — Other asset-backed securities 303 303 — 225 78 Fixed maturity securities, pledged as collateral: U.S. government obligations 15 15 15 — — Short-term 125 125 125 — — Short term investments 492 492 415 76 — Other investments (1) 595 597 91 — 53 Cash, cash equivalents and restricted cash 33 33 32 2 — Derivative assets: Interest rate swaps—asset position 93 93 — 9 85 Other assets - equity in sponsored VIE 1 1 — — 1 Other assets-loans 3 3 — — 3 Variable interest entity assets: Fixed maturity securities: Corporate obligations 3,215 3,215 — — 3,215 Fixed maturity securities: Municipal obligations 139 139 — 139 — Restricted cash 2 2 2 — — Loans 2,998 2,998 — — 2,998 Derivative assets: Currency swaps—asset position 41 41 — 41 — Total financial assets $ 10,071 $ 10,073 $ 888 $ 2,299 $ 6,433 Financial liabilities: Long term debt, including accrued interest $ 3,255 $ 3,071 $ — $ 2,670 $ 401 Derivative liabilities: Interest rate swaps—liability position 114 114 — 114 — Liabilities for net financial guarantees written (2) (740) 539 — — 539 Variable interest entity liabilities: Long-term debt (includes $4,324 at fair value) 4,493 4,504 — 4,349 155 Derivative liabilities: Interest rate swaps—liability position 1,835 1,835 — 1,835 — Total financial liabilities $ 8,958 $ 10,063 $ — $ 8,968 $ 1,095 (1) Excluded from the fair value measurement categories in the table above are investment funds of $501 and $453 as of March 31, 2021 and December 31, 2020, respectively, which are measured using NAV 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. |
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 2021 and 2020. 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 (1) Other (2) Derivatives Investments Loans Total Three Months Ended March 31, 2021: Balance, beginning of period $ 78 $ 1 $ 84 $ 3,215 $ 2,998 $ 6,376 Total gains/(losses) realized and unrealized: Included in earnings — — (17) (138) 9 (145) Included in other comprehensive income (2) — — 26 24 49 Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements — — (2) — (84) (86) Balance, end of period $ 76 $ 1 $ 65 $ 3,103 $ 2,948 $ 6,194 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 $ — $ — $ (17) $ (138) $ 9 $ (145) The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (2) $ — $ — $ 26 $ 24 $ 49 Three Months Ended March 31, 2020: Balance, beginning of period $ 72 $ 3 $ 66 $ 2,957 $ 3,108 $ 6,207 Total gains/(losses) realized and unrealized: Included in earnings — — 12 30 88 130 Included in other comprehensive income (6) — — (181) (190) (377) Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements — — (1) — (74) (76) Balance, end of period $ 66 $ 3 $ 77 $ 2,806 $ 2,932 $ 5,884 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 $ — $ — $ 12 $ 30 $ 88 $ 130 The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (6) $ — $ — $ (181) $ (190) $ (377) (1) Investments classified as Level 3 consist of a single other asset-backed security. (2) Other assets carried at fair value and classified as Level 3 relate to an equity interest in an Ambac sponsored VIE. The table below provides roll-forward information by class of derivatives measured using significant unobservable inputs. Level 3 - Derivatives by Class Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Interest Credit Total Interest Credit Total Balance, beginning of period $ 85 $ — $ 84 $ 67 $ — $ 66 Total gains/(losses) realized and unrealized: Included in earnings (17) — (17) 13 (1) 12 Included in other comprehensive income — — — — — — Purchases — — — — — — Issuances — — — — — — Sales — — — — — — Settlements (2) — (2) (1) — (1) Balance, end of period $ 66 $ — $ 65 $ 79 $ (2) $ 77 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 $ (17) $ — $ (17) $ 13 $ (2) $ 12 The amount of total gains/(losses) included in other comprehensive income attributable to the change in unrealized gains or losses relating to assets and liabilities still held at the reporting date $ (17) $ — $ (17) $ — $ — $ — |
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 Net Gains Income Other Three Months Ended March 31, 2021: Total gains (losses) included in earnings for the period $ — $ (17) $ (129) $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — (17) (129) — Three Months Ended March 31, 2020: Total gains (losses) included in earnings for the period $ — $ 12 $ 118 $ — Changes in unrealized gains (losses) relating to financial instruments still held at the reporting date — 12 118 — |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments | The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at March 31, 2021 and December 31, 2020, were as follows: Amortized Allowance for Credit Losses Gross Gross Estimated March 31, 2021: Fixed maturity securities: Municipal obligations $ 329 $ — $ 38 $ — $ 366 Corporate obligations (1) 1,106 — 14 13 1,108 Foreign obligations 98 — — 1 97 U.S. government obligations 109 — 1 2 108 Residential mortgage-backed securities 219 — 50 — 269 Collateralized debt obligations 97 — — — 97 Other asset-backed securities (2) 262 — 33 — 295 2,221 — 136 17 2,341 Short-term 398 — — — 397 2,619 — 136 17 2,738 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 105 — — — 105 120 — — — 120 Total available-for-sale investments $ 2,739 $ — $ 136 $ 17 $ 2,858 Amortized Allowance for Credit Losses Gross Gross Estimated December 31, 2020: Fixed maturity securities: Municipal obligations $ 321 $ — $ 37 $ — $ 358 Corporate obligations (1) 1,059 — 24 6 1,077 Foreign obligations 97 — 1 — 98 U.S. government obligations 105 — 2 1 106 Residential mortgage-backed securities 256 — 46 — 302 Collateralized debt obligations 74 — — — 74 Other asset-backed securities (2) 263 — 40 — 303 2,175 — 149 8 2,317 Short-term 492 — — — 492 2,667 — 149 8 2,809 Fixed maturity securities pledged as collateral: U.S. government obligations 15 — — — 15 Short-term 125 — — — 125 140 — — — 140 Total available-for-sale investments $ 2,807 $ — $ 149 $ 8 $ 2,949 (1) Includes Ambac's holdings of the secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. (2) Consists primarily of Ambac's holdings of the military housing and student loan securities. |
Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments Held by Successor Ambac, by Contractual Maturity | The amortized cost and estimated fair value of available-for-sale investments, excluding VIE investments, at March 31, 2021, by contractual maturity, were as follows: Amortized Estimated Due in one year or less $ 617 $ 618 Due after one year through five years 906 912 Due after five years through ten years 455 459 Due after ten years 183 209 2,160 2,197 Residential mortgage-backed securities 219 269 Collateralized debt obligations 97 97 Other asset-backed securities 262 295 Total $ 2,739 $ 2,858 |
Summary of Gross Unrealized Losses and Fair Values of Ambac's Available-for-Sale Investments | The following table shows gross unrealized losses and fair values of Ambac’s available-for-sale investments, excluding VIE investments, which at March 31, 2021 and December 31, 2020, did not have an allowance for credit losses under the CECL standard. This information is aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2021 and December 31, 2020: Less Than 12 Months 12 Months or More Total Fair Value Gross Fair Value Gross Fair Value Gross March 31, 2021: Fixed maturity securities: Municipal obligations $ 19 $ — $ 16 $ — $ 35 $ — Corporate obligations 339 13 — — 339 13 Foreign obligations 70 1 — — 70 1 U.S. government obligations 25 2 — — 25 2 Residential mortgage-backed securities 15 — 2 — 17 — Collateralized debt obligations 13 — 13 — 26 — Other asset-backed securities — — — — — — 481 17 31 — 512 17 Short-term 157 — — — 157 — Total securities $ 638 $ 17 $ 31 $ — $ 669 $ 17 December 31, 2020: Fixed maturity securities: Municipal obligations $ 25 $ — $ 6 $ — $ 31 $ — Corporate obligations 543 6 — — 543 6 Foreign obligations 3 — — — 3 — U.S. government obligations 17 1 — — 17 1 Residential mortgage-backed securities 14 — — — 14 — Collateralized debt obligations 27 — 15 — 42 — Other asset-backed securities — — 4 — 4 — 629 7 25 — 654 8 Short-term 187 — — — 187 — Total securities $ 816 $ 7 $ 25 $ — $ 841 $ 8 |
Summary of Amounts Included in Net Realized (Losses) Gains and Other-Than-Temporary Impairments | The following table details amounts included in net realized gains (losses) and impairments included in earnings for the affected periods: Three Months Ended March 31, 2021 2020 Gross realized gains on securities $ 7 $ 6 Gross realized losses on securities (1) — Foreign exchange (losses) gains (4) 2 Credit impairments — — Intent / requirement to sell impairments — — Net realized gains (losses) $ 2 $ 8 |
Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities | The following table represents the fair value and weighted-average underlying rating of insured securities in Ambac's investment portfolio at March 31, 2021 and December 31, 2020, respectively: Municipal Corporate (2) Mortgage Total Weighted (1) March 31, 2021: Ambac Assurance Corporation $ 323 $ 464 $ 465 $ 1,252 CCC+ National Public Finance Guarantee Corporation 4 — — 4 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 328 $ 464 $ 465 $ 1,257 CCC+ December 31, 2020: Ambac Assurance Corporation $ 320 $ 465 $ 481 $ 1,266 CCC+ National Public Finance Guarantee Corporation 6 — — 6 BBB- Assured Guaranty Municipal Corporation 1 — — 1 C Total $ 327 $ 465 $ 481 $ 1,273 CCC+ (1) Ratings are based on the lower of Standard & Poor’s or Moody’s rating. If unavailable, Ambac’s internal rating is used. (2) Represents Ambac's holdings of secured notes issued by Ambac LSNI in connection with the Rehabilitation Exit Transactions. These secured notes are insured by AAC. |
Equity Method Investments [Table Text Block] | Ambac has unfunded commitments of $102 to private credit and private equity funds at March 31, 2021. Fair Value Class of Funds March 31, December 31, Redemption Frequency Redemption Notice Period Real estate properties (1) $ 16 $ 16 quarterly 10 business days Hedge funds (2) 210 196 quarterly or semi-annually 90 days High yields and leveraged loans (3) (10) 77 78 daily 0 - 30 days Private credit (4) 67 65 quarterly if permitted 180 days if permitted Insurance-linked investments (5) 3 3 see footnote (5) see footnote (5) Equity market investments (6) (10) 82 73 daily or quarterly 0 - 90 days Investment grade floating rate income (7) 98 73 weekly 0 days Private equity (8) 14 13 quarterly if permitted 90 days if permitted Emerging markets debt (9) (10) 33 25 daily 0 days Total equity investments in pooled funds $ 600 $ 543 (1) Investments consist of UK property to generate income and capital growth. (2) This class seeks to generate superior risk-adjusted returns through selective asset sourcing, active trading and hedging strategies across a range of asset types. (3) This class of funds includes investments in a range of instruments including high-yield bonds, leveraged loans, CLOs, ABS and floating rate notes to generate income and capital appreciation. (4) This class aims to obtain high long-term returns primarily through credit and preferred equity investments with low liquidity and defined term. (5) This class seeks to generate returns from insurance markets through investments in catastrophe bonds, life insurance and other insurance linked investments. This investment is restricted in connection with the unwind of certain insurance linked exposures. Ambac has redeemed its investment to the extent permitted by the fund. (6) This class of funds aim to achieve long term growth through diversified exposure to global equity-markets. (7) This class of funds includes investments in high quality floating rate debt securities including ABS and corporate floating rate notes. (8) This class seeks to generate long-term capital appreciation through investments in private equity, equity-related and other instruments. (9) This class seeks long-term income and growth through investments in the bonds of issuers in emerging markets. |
Summary of Net Investment Income | Net investment income (loss) was comprised of the following for the affected periods: Three Months Ended March 31, 2021 2020 Fixed maturity securities $ 23 $ 30 Short-term investments — 2 Investment expense (1) (2) Securities available-for-sale and short-term 22 31 Other investments 27 (52) Total net investment income (loss) $ 49 $ (21) Net investment income (loss) from Other investments primarily represents changes in fair value on securities classified as trading or accounted for under the fair value option and income from investment limited partnerships accounted for under the equity method. 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 March 31, 2021 2020 Net gains (losses) recognized during the period on trading securities $ 7 $ (32) Less: net gains (losses) recognized during the reporting period on trading securities sold during the period — (3) Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date $ 6 $ (29) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and December 31, 2020: Gross Gross Net Amounts Gross Amount Net March 31, 2021: Derivative Assets: Interest rate swaps $ 73 $ — $ 73 $ — $ 73 Futures contracts 1 — 1 — 1 Total non-VIE derivative assets $ 74 $ — $ 74 $ — $ 74 Derivative Liabilities: Credit derivatives $ — $ — $ — $ — $ — Interest rate swaps 85 — 85 85 1 Total non-VIE derivative liabilities $ 86 $ — $ 86 $ 85 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 38 $ — $ 38 $ — $ 38 Total VIE derivative assets $ 38 $ — $ 38 $ — $ 38 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,739 $ — $ 1,739 $ — $ 1,739 Total VIE derivative liabilities $ 1,739 $ — $ 1,739 $ — $ 1,739 Gross Gross Net Amounts Gross Amount Net December 31, 2020: Derivative Assets: Interest rate swaps $ 93 $ — $ 93 $ — $ 93 Total non-VIE derivative assets $ 93 $ — $ 93 $ — $ 93 Derivative Liabilities: Interest rate swaps 114 — 114 113 1 Total non-VIE derivative liabilities $ 114 $ — $ 114 $ 113 $ 1 Variable Interest Entities Derivative Assets: Currency swaps $ 41 $ — $ 41 $ — $ 41 Total VIE derivative assets $ 41 $ — $ 41 $ — $ 41 Variable Interest Entities Derivative Liabilities: Interest rate swaps $ 1,835 $ — $ 1,835 $ — $ 1,835 Total VIE derivative liabilities $ 1,835 $ — $ 1,835 $ — $ 1,835 |
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 Unaudited Consolidated Statements of Total Comprehensive Income (Loss) for the three months ended March 31, 2021 and 2020: Location of Gain (Loss) Amount of Gain (Loss) Recognized in Consolidated Statement of Total Comprehensive Income (Loss) Three Months Ended March 31, 2021 2020 Non-VIE derivatives: Credit derivatives Net gains (losses) on derivative contracts $ — $ (1) Interest rate swaps Net gains (losses) on derivative contracts 17 (29) Futures contracts Net gains (losses) on derivative contracts 8 (40) Total Non-VIE derivatives $ 25 $ (70) Variable Interest Entities: Currency swaps Income (loss) on variable interest entities $ (2) $ 10 Interest rate swaps Income (loss) on variable interest entities 97 47 Total Variable Interest Entities 96 57 Total derivative contracts $ 121 $ (13) |
Summary of Notional Amounts of AFS's Trading Derivative Products | As of March 31, 2021 and December 31, 2020, the notional amounts of AFS’s derivatives are as follows: Notional Type of Derivative March 31, December 31, Interest rate swaps—pay-fixed/receive-variable $ 987 $ 726 US Treasury futures contracts—short 470 240 Interest rate swaps—receive-fixed/pay-variable 190 195 |
Variable Interest Entity, Primary Beneficiary [Member] | |
Summary of Notional Amounts of AFS's Trading Derivative Products | The notional for VIE derivatives outstanding as of March 31, 2021 and December 31, 2020, were as follows: Notional Type of VIE Derivative March 31, December 31, Interest rate swaps—receive-fixed/pay-variable $ 1,243 $ 1,233 Interest rate swaps—pay-fixed/receive-variable 1,143 1,151 Currency swaps 302 308 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 2016 United Kingdom 2017 Italy 2016 |
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 March 31, 2021 2020 U.S. $ 17 $ (257) Foreign 2 (30) Total $ 19 $ (287) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows: Three Months Ended March 31, 2021 2020 Current taxes U. S. federal $ — $ — U.S. state and local 2 — Foreign 3 (2) Current taxes 5 (2) Deferred taxes Foreign (3) (5) Deferred taxes (3) (5) Provision for income taxes $ 2 $ (7) |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Amortization Expense | Amortization expense is included in the Consolidated Statements of Total Comprehensive Income (Loss), as shown below. Three Months Ended March 31, 2021 2020 Insurance amortization expense $ 19 $ 13 Other amortization expense 1 — Total $ 19 $ 13 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense for intangible assets is as follows: Amortization expense Insurance Intangible Asset (1) (2) Other Intangible Assets Total 2021 (Nine months) $ 28 $ 2 $ 30 2022 35 3 37 2023 31 3 34 2024 29 3 31 2025 26 3 29 Thereafter 207 22 229 (1) The insurance intangible asset will be amortized using a level-yield method based on par exposure of the related financial guarantee insurance or reinsurance contracts. 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 borrowers have the right to call or prepay certain obligations. If those obligations are retired early, amortization expense may differ in the period of call or refinancing. from the amounts provided in the table above. (2) The weighted-average insurance intangible amortization period is 7.4 years. |
Insurance Intangible Asset [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets | The insurance intangible asset and accumulated amortization are included in the Consolidated Balance Sheets, as shown below. March 31, December 31, Gross carrying value of insurance intangible asset $ 1,282 $ 1,281 Accumulated amortization of insurance intangible asset 927 908 Net insurance intangible asset $ 356 373 |
Background and Business Descrip
Background and Business Description - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2021 | Feb. 11, 2021 | Jan. 19, 2021 | |
Background And Basis Of Presentation [Line Items] | |||||
Entity Incorporation, Date of Incorporation | Apr. 29, 1991 | ||||
Net realized gains (losses) on extinguishment of debt | $ 33,000,000 | ||||
Realized Investment Gains (Losses) | 2,000,000 | $ 8,000,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||||
Parent | |||||
Background And Basis Of Presentation [Line Items] | |||||
Realized Investment Gains (Losses) | $ 4,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 | |||||
Background And Basis Of Presentation [Line Items] | |||||
Note Holders | 1 | ||||
One Dollar Outstanding | $ 1 | $ 1 | |||
Payment Amount in Exchange | 0.8581 | ||||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 | Corolla Notes | |||||
Background And Basis Of Presentation [Line Items] | |||||
Payment Amount in Exchange | 0.9125 | ||||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 | Corolla Certificate | |||||
Background And Basis Of Presentation [Line Items] | |||||
Payment Amount in Exchange | 0.6400 | ||||
Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 | |||||
Background And Basis Of Presentation [Line Items] | |||||
Long-term Debt, Gross | 853,000,000 | ||||
Long-term Debt, Gross and Accrued and Unpaid Interest | 1,414,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 | Corolla Notes | |||||
Background And Basis Of Presentation [Line Items] | |||||
Long-term Debt Issued in Exchange Transaction | 267,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 | Lease Reducing Notes | |||||
Background And Basis Of Presentation [Line Items] | |||||
Long-term Debt Issued in Exchange Transaction | $ 13,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1% Surplus Notes, General Account, Due 2020 | Parent Company [Member] | |||||
Background And Basis Of Presentation [Line Items] | |||||
Long-term Debt, Gross | 83,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1 % Surplus Notes Due 2020 | |||||
Background And Basis Of Presentation [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% | ||||
Ambac Assurance Corporation [Member] | Lease Reducing Notes | 5.1% Junior Surplus Notes, General Account Due 2020 | |||||
Background And Basis Of Presentation [Line Items] | |||||
Long-term Debt Reduced in Exchange | $ 15,000,000 | ||||
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes Due 2020 | |||||
Background And Basis Of Presentation [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.10% |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies FX gain (loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign Currency Transaction Gain (Loss), before Tax | $ (5) | $ 1 |
Gain (Loss) on Investments [Member] | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ (4) | $ 2 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | |||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 60 | $ 60 | |
Preferred Stock, Shares Issued | 0 | ||
Net Income (Loss) Attributable to Nonredeemable Noncontrolling Interest | $ 0 | ||
Noncontrolling Interest, Change in Redemption Value | 13 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||
Business Combination, Redeemable Noncontrolling Percentage | 20.00% | ||
Xchange | |||
Derivative [Line Items] | |||
Redeemable Noncontrolling Interest, Equity, Carrying Amount | $ 7 | ||
Redeemable Noncontrolling Interest, Equity, Redemption Value | 20 | ||
Retained Earnings [Member] | |||
Derivative [Line Items] | |||
Noncontrolling Interest, Change in Redemption Value | $ 13 |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies Supplemental Cash Flow information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reduction in Long-term Debt Through Long-term Debt Exchange | $ 71 | |||
Income Taxes Paid | 8 | $ 2 | ||
Cash and cash equivalents | 23 | 58 | $ 20 | |
Restricted Cash | 16 | 31 | 13 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 42 | 91 | 35 | $ 81 |
Long-term Debt [Member] | ||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 25 | 31 | ||
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Restricted Cash | $ 2 | $ 2 | $ 2 |
Special Purpose Entities, Inc_2
Special Purpose Entities, Including Variable Interest Entities - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)Entity | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)Entity | |
Variable Interest Entities [Line Items] | |||
Variable Interest Entity Change in Fair Value of Assets and Liabilities | $ (1,000,000) | $ 0 | |
Realized Investment Gains (Losses) | 2,000,000 | 8,000,000 | |
Other Operating Income (Expense), Net | 5,000,000 | 0 | |
Fair value of special purpose entities | 1,000,000 | $ 1,000,000 | |
Variable Interest Entity, Measure of Activity, Income or Loss before Tax | 0 | 3,000,000 | |
Long-term debt | $ 2,661,000,000 | 2,739,000,000 | |
Sponsored Variable Interest Entities [Member] | |||
Variable Interest Entities [Line Items] | |||
Total principal amount of debt outstanding | $ 410,000,000 | ||
Consolidated Entities [Member] | |||
Variable Interest Entities [Line Items] | |||
Number Of Consolidated Variable Interest Entities | Entity | 6 | 6 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Reclassification Adjustment from AOCI for Derecognition, before Tax | $ 1,000,000 | (4,000,000) | |
VIE Change in FV of Assets Liabilities, Net of Credit Risk Change | (1,000,000) | (4,000,000) | |
Interest Expense, Long-term Debt | (1,000,000) | $ (2,000,000) | |
Long-term debt | $ 4,427,000,000 | $ 4,493,000,000 | |
Consolidated Variable Interest Entities [Member] | |||
Variable Interest Entities [Line Items] | |||
Number of DeConsolidated Variable Interest Entities | 0 | 0 | |
Ambac UK [Member] | Consolidated Entities [Member] | |||
Variable Interest Entities [Line Items] | |||
Number Of Consolidated Variable Interest Entities | Entity | 5 | 5 | |
Ambac UK [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Long-term debt | $ 4,264,000,000 | $ 4,324,000,000 | |
Ambac Assurance [Member] | |||
Variable Interest Entities [Line Items] | |||
Carry Value Secured Notes from LSNI | 464,000,000 | 465,000,000 | |
Fixed Income Investments [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Variable Interest Entities [Line Items] | |||
Gross Investment Income, Operating | 2,000,000 | $ 2,000,000 | |
Realized Investment Gains (Losses) | 1,000,000 | $ 8,000,000 | |
Ambac Note Post Exit From Rehabilitation [Member] | Ambac Assurance Corporation [Member] | |||
Variable Interest Entities [Line Items] | |||
Long-term debt | $ 1,626,000,000 | $ 1,641,000,000 | |
5.1% Junior Surplus Notes, General Account Due 2020 | Ambac Assurance Corporation [Member] | |||
Variable Interest Entities [Line Items] | |||
Note Holders | 1 | ||
5.1% Junior Surplus Notes, General Account Due 2020 | Ambac Assurance Corporation [Member] | Corolla Notes | |||
Variable Interest Entities [Line Items] | |||
Note Holders | 1 |
Special Purpose Entities, Inc_3
Special Purpose Entities, Including Variable Interest Entities - Summary of Fair Value of Fixed Income Securities, by Asset-Type, Held by Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 2,739 | |
Investments: | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 136 | $ 149 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 17 | $ 8 |
Special Purpose Entities, Inc_4
Special Purpose Entities, Including Variable Interest Entities - Supplemental Information about Loans Held as Assets and Long-Term Debt Associated with Consolidated Variable Interest Entities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Line Items] | ||
Long-term debt | $ 2,661 | $ 2,739 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entities [Line Items] | ||
Long-term debt | 4,427 | 4,493 |
Long-term debt, Estimated fair value | 4,264 | 4,324 |
Loans Unpaid Principal Balance | 2,519 | 2,546 |
Long Term Debt Unpaid Principal Balance | $ 3,758 | $ 3,769 |
Special Purpose Entities, Inc_5
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 (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | $ 27,357 | $ 27,998 |
Insurance Assets | 2,243 | 2,314 |
Insurance Liabilities | 1,057 | 1,122 |
Derivative Liabilities | 6 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entities [Line Items] | ||
Derivative Liabilities | 8 | |
Global Public Finance [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 21,330 | 21,646 |
Insurance Assets | 266 | 263 |
Insurance Liabilities | 291 | 287 |
Derivative Liabilities | 0 | 0 |
Global Structured Finance [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 6,027 | 6,352 |
Insurance Assets | 1,977 | 2,051 |
Insurance Liabilities | 766 | 834 |
Derivative Liabilities | 7 | 8 |
Global Structured Finance [Member] | Residential Mortgage-Backed Securities [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 4,065 | 4,308 |
Insurance Assets | 1,951 | 2,024 |
Insurance Liabilities | 513 | 580 |
Derivative Liabilities | 0 | 0 |
Global Structured Finance [Member] | Other Consumer Asset-Backed [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 981 | 1,050 |
Insurance Assets | 23 | 24 |
Insurance Liabilities | 239 | 239 |
Derivative Liabilities | 0 | 0 |
Global Structured Finance [Member] | Other Commercial Asset-Backed [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 23 | 24 |
Insurance Assets | 3 | 3 |
Insurance Liabilities | 1 | 1 |
Derivative Liabilities | 0 | 0 |
Global Structured Finance [Member] | Other [Member] | ||
Variable Interest Entities [Line Items] | ||
Maximum Exposure To Loss | 958 | 970 |
Insurance Assets | 0 | 0 |
Insurance Liabilities | 13 | 13 |
Derivative Liabilities | $ 7 | $ 8 |
Variable Interest Entities Spec
Variable Interest Entities Special Purpose Entities, including Variable Interest Entities - Summary of Assets and Liabilities (Details) $ in Millions | Mar. 31, 2021USD ($)Entity | Dec. 31, 2020USD ($)Entity | Mar. 31, 2020USD ($) |
Debt Securities, Available-for-sale, Amortized Cost | $ 2,739 | ||
Fixed maturity securities, at fair value | 2,858 | ||
Restricted Cash | 16 | $ 13 | $ 31 |
Derivative assets | 74 | 93 | |
Other assets | 115 | 114 | |
Total assets | 12,840 | 13,220 | |
Interest Payable | 516 | 517 | |
Long-term debt | 2,661 | 2,739 | |
Derivative Liability | 86 | 114 | |
Other Liabilities | 123 | 106 | |
Liabilities | 11,697 | 12,074 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 136 | 149 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Fixed maturity securities, at fair value | 3,236 | 3,354 | |
Restricted Cash | 2 | 2 | $ 2 |
Financing Receivable, after Allowance for Credit Loss | 2,948 | 2,998 | |
Derivative assets | 38 | 41 | |
Other assets | 1 | 2 | |
Total assets | 6,225 | 6,398 | |
Long-term debt | 4,264 | 4,324 | |
Long-term Debt, at par less amortized discount | 163 | 169 | |
Long-term debt | 4,427 | 4,493 | |
Derivative Liability | 1,739 | 1,835 | |
Liabilities | 6,166 | 6,328 | |
Variable Interest Entity, Primary Beneficiary [Member] | Corporate Debt Securities [Member] | |||
Fixed maturity securities, at fair value | 3,103 | 3,215 | |
Variable Interest Entity, Primary Beneficiary [Member] | Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale, Amortized Cost | 109 | 113 | |
Fixed maturity securities, at fair value | 133 | 139 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 23 | 27 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac UK [Member] | |||
Fixed maturity securities, at fair value | 3,103 | 3,215 | |
Restricted Cash | 1 | 1 | |
Financing Receivable, after Allowance for Credit Loss | 2,948 | 2,998 | |
Derivative assets | 38 | 41 | |
Other assets | 0 | 0 | |
Total assets | 6,090 | 6,255 | |
Long-term debt | 4,264 | 4,324 | |
Long-term Debt, at par less amortized discount | 0 | 0 | |
Long-term debt | 4,264 | 4,324 | |
Derivative Liability | 1,739 | 1,835 | |
Liabilities | 6,003 | 6,159 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac UK [Member] | Corporate Debt Securities [Member] | |||
Fixed maturity securities, at fair value | 3,103 | 3,215 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac UK [Member] | Municipal Bonds [Member] | |||
Fixed maturity securities, at fair value | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac Assurance [Member] | |||
Fixed maturity securities, at fair value | 133 | 139 | |
Restricted Cash | 1 | 1 | |
Financing Receivable, after Allowance for Credit Loss | 0 | 0 | |
Derivative assets | 0 | 0 | |
Other assets | 1 | 2 | |
Total assets | 135 | 143 | |
Long-term debt | 0 | 0 | |
Long-term Debt, at par less amortized discount | 163 | 169 | |
Long-term debt | 163 | 169 | |
Derivative Liability | 0 | 0 | |
Liabilities | 163 | 169 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac Assurance [Member] | Corporate Debt Securities [Member] | |||
Fixed maturity securities, at fair value | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | Ambac Assurance [Member] | Municipal Bonds [Member] | |||
Fixed maturity securities, at fair value | $ 133 | $ 139 | |
Consolidated Entities [Member] | |||
Number Of Consolidated Variable Interest Entities | Entity | 6 | 6 | |
Consolidated Entities [Member] | Ambac UK [Member] | |||
Number Of Consolidated Variable Interest Entities | Entity | 5 | 5 | |
Consolidated Entities [Member] | Ambac Assurance [Member] | |||
Number Of Consolidated Variable Interest Entities | Entity | 1 | 1 |
Comprehensive Income - Schedule
Comprehensive Income - Schedule of Changes in Balances of Each Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | $ 79 | $ 42 |
Other comprehensive income before reclassifications | 15 | 187 |
Amounts reclassified from accumulated other comprehensive income | (3) | (4) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (18) | (191) |
Ending Balance | 61 | (149) |
Income Tax Expense (Benefit) | 2 | (7) |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 166 | 151 |
Other comprehensive income before reclassifications | 21 | 139 |
Amounts reclassified from accumulated other comprehensive income | (3) | (7) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (24) | (146) |
Ending Balance | 142 | 5 |
Accumulated Translation Adjustment [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | (92) | (116) |
Other comprehensive income before reclassifications | (6) | 46 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 6 | (46) |
Ending Balance | (86) | (162) |
Accumulated Gain (Loss), Financial Liability, Fair Value Option, Attributable to Parent [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 0 | (2) |
Other comprehensive income before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | (1) | 3 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1) | 3 |
Ending Balance | (1) | 2 |
Other Postretirement Benefits Plan [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | 5 | 8 |
Other comprehensive income before reclassifications | 0 | 2 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0 | (2) |
Ending Balance | 5 | 6 |
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) | (1) | 1 |
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 | 0 | 0 |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 0 | 0 |
Income Tax Expense (Benefit) | $ 0 | $ 0 |
Comprehensive Income - Schedu_2
Comprehensive Income - Schedule of Amounts Reclassed Out of Each Component of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Income tax expense (benefit) | $ (2) | $ 7 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, Unrealized Gain (Loss) Arising During Period, after Tax | (1) | 3 |
Net of tax and noncontrolling interest | 4 | (280) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3) | (4) |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net realized investment gains | (2) | (8) |
Net of tax and noncontrolling interest | (3) | (7) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3) | (7) |
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 | 1 | (3) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1) | 3 |
Other Comprehensive Income (Loss), Financial Liability, Fair Value Option, before Tax, after Reclassification Adjustment | (1) | 4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax and noncontrolling interest | (3) | (4) |
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) | 1 | (1) |
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) | 0 | 1 |
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 | 0 | 0 |
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 |
Prior service cost | 0 | 0 |
Actuarial gains (losses) | 0 | 0 |
Total before tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 0 | $ 0 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | May 01, 2013 | Apr. 30, 2013 | |
Schedule Of Earnings Per Share [Line Items] | ||||
Common stock, shares outstanding | 46,197,102 | |||
Par value of common stock issued | $ 0.01 | $ 0.01 | ||
Exercise price of common stock | $ 16.67 | |||
Warrants outstanding | 4,877,693 | |||
Earnings Per Share, Basic | $ 0.08 | $ (6.07) | ||
Earnings Per Share, Diluted | $ 0.08 | $ (6.07) | ||
Noncontrolling Interest, Change in Redemption Value | $ (13) | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ 4 | $ (280) | ||
Common Stock [Member] | ||||
Schedule Of Earnings Per Share [Line Items] | ||||
Number of new common stock issued | 387,963 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Common Shares Used for Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average number of common shares used for basic earnings per share | 46,314,049 | 46,060,324 |
Effect of potential dilutive shares: | ||
Weighted average number of common shares and potential dilutive shares used for diluted earnings per share | 46,858,064 | 46,060,324 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 4,877,749 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 16,667 |
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 | 165,529 | 236,189 |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 738,039 |
Warrants [Member] | ||
Effect of potential dilutive shares: | ||
Effect of potential dilutive shares | 214,904 | 0 |
Share-based Payment Arrangement, Option [Member] | ||
Effect of potential dilutive shares: | ||
Effect of potential dilutive shares | 0 | 0 |
Restricted Stock Units (RSUs) [Member] | ||
Effect of potential dilutive shares: | ||
Effect of potential dilutive shares | 121,215 | 0 |
Performance Shares [Member] | ||
Effect of potential dilutive shares: | ||
Effect of potential dilutive shares | 207,896 | 0 |
Net Income Per Share Schedule o
Net Income Per Share Schedule of Basic and Dilutive Securities for EPS (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Weighted Average Number of Shares Outstanding, Basic | 46,314,049 | 46,060,324 |
Weighted Average Number of Shares Outstanding, Diluted | 46,858,064 | 46,060,324 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 165,529 | 236,189 |
Share-based Payment Arrangement, Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 16,667 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 4,877,749 |
Performance Shares [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 738,039 |
Performance Shares [Member] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 207,896 | 0 |
Restricted Stock Units (RSUs) [Member] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 121,215 | 0 |
Financial Guarantee Insurance_2
Financial Guarantee Insurance Contracts - Additional Information (Details) $ in Thousands, € in Millions, £ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020 | Dec. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Mar. 31, 2020GBP (£) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Insurance [Line Items] | |||||||||
Reinsurance Recoverable Credit Exposure | $ 4,000 | $ 1,000 | |||||||
Public Finance Puerto Rico Net Par Outstanding | 1,067,000 | ||||||||
Schedule Of Insured Financial Obligations With Credit Deterioration Reductions Of Gross Claim Liability Rmbs Subrogation | 1,748,000 | 1,751,000 | |||||||
Financial Guarantee Insurance Contracts, Premium Receivable | $ 356,000 | $ 403,000 | $ 370,000 | $ 416,000 | |||||
Estimated Future Premium Payments Weighted Average Discounted Rate | 2.20% | 2.20% | 2.20% | 2.20% | |||||
Reinsurance Payable | $ 24,000 | $ 27,000 | |||||||
Weighted average period of future premiums | 8 years 3 months 18 days | 8 years 3 months 18 days | |||||||
Uncollectable premium receivables | $ 13,000 | $ 17,000 | |||||||
Accelerated premium revenue for retired obligations | 0 | 187 | |||||||
Reinsurance recoveries of losses included in losses and loss expenses | (1,000) | (10,000) | |||||||
Losses and loss expense reserves ceded to reinsurers | 33,000 | 35,000 | 33,000 | 26,000 | |||||
Subrogation recoveries, net of reinsurance | (1,722,000) | (1,725,000) | |||||||
Amortization of intangible assets | 19,000 | 13,000 | |||||||
Intangible assets | 391,000 | 409,000 | |||||||
Possible Increase in Loss Reserves Related to Puerto Rico | 660,000 | ||||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | 1,123,000 | 1,062,000 | $ 1,140,000 | $ 1,536,000 | |||||
Stockholders Equity After Possible Increase in Domestic Public Finance Loss Reserves | 463,000 | ||||||||
Stockholders Equity After Possible Inability to Realize R&W Subrogation Recoveries | (598,000) | ||||||||
March 2021 Ameerican Rescue Plan Amount | $ 1,900,000,000 | ||||||||
Loss Reserves [Member] | |||||||||
Insurance [Line Items] | |||||||||
Weighted average risk-free rate used to discount loss reserves | 1.80% | 1.10% | |||||||
United Kingdom, Pounds | |||||||||
Insurance [Line Items] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable | $ 122,000 | 128,000 | £ 89 | £ 103 | |||||
Euro Member Countries, Euro | |||||||||
Insurance [Line Items] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable | 21,000 | $ 24,000 | € 18 | € 22 | |||||
Commonwealth of Puerto Rico [Member] | |||||||||
Insurance [Line Items] | |||||||||
Domestic Public Finance Losses | $ 9,000 |
Financial Guarantee Insurance_3
Financial Guarantee Insurance Contracts - Summary of Gross Premium Receivable Roll-Forward (Direct and Assumed Contracts) (Details) $ in Thousands, € in Millions, £ in Millions | 3 Months Ended | ||||||||
Mar. 31, 2021USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021EUR (€) | Mar. 31, 2020USD ($) | Mar. 31, 2020GBP (£) | Mar. 31, 2020EUR (€) | Dec. 31, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Insurance [Line Items] | |||||||||
Allowance for Doubtful Accounts, Premiums and Other Receivables | $ 13,000 | $ 14,000 | $ 17,000 | $ 9,000 | |||||
Financial Guarantee Insurance Contracts, Accelerated Premium Revenue, Amount | 0 | 187 | |||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Beginning premium receivable | 370,000 | 416,000 | |||||||
Premium receipts | 12,000 | 12,000 | |||||||
Adjustments for changes in expected and contractual cash flows | (8,000) | 10,000 | |||||||
Accretion of premium receivable discount | 2,000 | 2,000 | |||||||
Uncollectable premiums | 4,000 | (2,000) | |||||||
Other adjustments (including foreign exchange) | 0 | (8,000) | |||||||
Ending premium receivable | 356,000 | 403,000 | |||||||
Premium Receivable, Allowance for Credit Loss | 13,000 | 17,000 | |||||||
Premium Receivable, Credit Loss Expense (Reversal) | (4,000) | 5,000 | |||||||
Premium Receivable, Allowance for Credit Loss, Writeoff | 0 | 0 | |||||||
Premium Receivable, Allowance for Credit Loss, Recovery | 0 | 0 | |||||||
Financing Receivable, Past Due | 69 | 74 | |||||||
Financing Receivable, 90 Days or More Past Due, Still Accruing | 63 | 98 | |||||||
Premiums Receivable, Gross | 369,000 | 387,000 | |||||||
Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 167,000 | 185,000 | |||||||
Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 55,000 | 59,000 | |||||||
International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 148,000 | 144,000 | |||||||
I/SL [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 302,000 | 302,000 | |||||||
I/SL [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 154,000 | 157,000 | |||||||
I/SL [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 25,000 | 27,000 | |||||||
I/SL [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 123,000 | 118,000 | |||||||
IA [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 25,000 | 40,000 | |||||||
IA [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 13,000 | 27,000 | |||||||
IA [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
IA [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 13,000 | |||||||
II [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 3,000 | 3,000 | |||||||
II [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
II [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 3,000 | 3,000 | |||||||
II [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
III [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 25,000 | 27,000 | |||||||
III [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
III [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 13,000 | 14,000 | |||||||
III [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 13,000 | |||||||
IV [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 15,000 | |||||||
IV [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
IV [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 15,000 | |||||||
IV [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
United Kingdom, Pounds | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Ending premium receivable | 122,000 | £ 89 | 128,000 | £ 103 | |||||
Euro Member Countries, Euro | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Ending premium receivable | 21,000 | € 18 | 24,000 | € 22 | |||||
Accounting Standards Update 2016-13 [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (4,000) | ||||||||
Premiums Receivable [Member] | Accounting Standards Update 2016-13 [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (3,000) | ||||||||
Other Public Finance Sectors [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 17,000 | |||||||
Other Public Finance Sectors [Member] | I/SL [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 2,000 | |||||||
Other Public Finance Sectors [Member] | IA [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 15,000 | |||||||
Other Public Finance Sectors [Member] | II [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Public Finance Sectors [Member] | III [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Public Finance Sectors [Member] | IV [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other International [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 6,000 | 5,000 | |||||||
Other International [Member] | I/SL [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 6,000 | 5,000 | |||||||
Other International [Member] | IA [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other International [Member] | II [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other International [Member] | III [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other International [Member] | IV [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Mortgage Backed And Home Equity [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 20,000 | 22,000 | |||||||
Mortgage Backed And Home Equity [Member] | I/SL [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 3,000 | |||||||
Mortgage Backed And Home Equity [Member] | IA [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Mortgage Backed And Home Equity [Member] | II [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 1,000 | 1,000 | |||||||
Mortgage Backed And Home Equity [Member] | III [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 3,000 | 3,000 | |||||||
Mortgage Backed And Home Equity [Member] | IV [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 15,000 | |||||||
Structured Insurance [Domain] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 14,000 | |||||||
Structured Insurance [Domain] | I/SL [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 14,000 | |||||||
Structured Insurance [Domain] | IA [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Insurance [Domain] | II [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Insurance [Domain] | III [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Structured Insurance [Domain] | IV [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Student Loans [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 14,000 | 16,000 | |||||||
Student Loans [Member] | I/SL [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 3,000 | |||||||
Student Loans [Member] | IA [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Student Loans [Member] | II [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 2,000 | 2,000 | |||||||
Student Loans [Member] | III [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 10,000 | 11,000 | |||||||
Student Loans [Member] | IV [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Structured Finance [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||||
Other Structured Finance [Member] | I/SL [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 7,000 | 7,000 | |||||||
Other Structured Finance [Member] | IA [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Structured Finance [Member] | II [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Structured Finance [Member] | III [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Other Structured Finance [Member] | IV [Member] | Structured Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Sovereign And Sub Sovereign [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 111,000 | 108,000 | |||||||
Sovereign And Sub Sovereign [Member] | I/SL [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 86,000 | 82,000 | |||||||
Sovereign And Sub Sovereign [Member] | IA [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 13,000 | |||||||
Sovereign And Sub Sovereign [Member] | II [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Sovereign And Sub Sovereign [Member] | III [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 12,000 | 13,000 | |||||||
Sovereign And Sub Sovereign [Member] | IV [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Investor Owned And Public Utilities [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 30,000 | 31,000 | |||||||
Investor Owned And Public Utilities [Member] | I/SL [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 30,000 | 31,000 | |||||||
Investor Owned And Public Utilities [Member] | IA [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Investor Owned And Public Utilities [Member] | II [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Investor Owned And Public Utilities [Member] | III [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Investor Owned And Public Utilities [Member] | IV [Member] | International Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Housing Revenue [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 165,000 | 168,000 | |||||||
Housing Revenue [Member] | I/SL [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 152,000 | 155,000 | |||||||
Housing Revenue [Member] | IA [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 13,000 | 13,000 | |||||||
Housing Revenue [Member] | II [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Housing Revenue [Member] | III [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | 0 | 0 | |||||||
Housing Revenue [Member] | IV [Member] | Public Finance [Member] | |||||||||
Financial Guarantee Insurance Contracts, Premium Receivable [Roll Forward] | |||||||||
Premiums Receivable, Gross | $ 0 | $ 0 |
Financial Guarantee Insurance_4
Financial Guarantee Insurance Contracts - Effect of Reinsurance on Premiums Written and Earned (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||
Direct Premiums Written | $ (2) | $ 11 |
Assumed Reinsurance Premiums Written | 0 | 0 |
Ceded Reinsurance Premiums Written | 7 | (1) |
Premiums written, net of reinsurance | 9 | (12) |
Direct Premiums Earned | 17 | 13 |
Assumed Reinsurance Premiums Earned | 0 | 1 |
Ceded Reinsurance Premiums Earned | 3 | 3 |
Reinsurance on premiums earned, Net | $ 14 | $ 10 |
Financial Guarantee Insurance_5
Financial Guarantee Insurance Contracts - Summarized Future Gross Undiscounted Premiums Expected to be Collected, and Future Expected Premiums Earned, Net of Reinsurance (Details) $ in Millions | Mar. 31, 2021USD ($) |
Future premiums expected to be collected, September 30, 2021 | $ 9 |
Future premiums expected to be collected, December 31, 2021 | 8 |
Future premiums expected to be collected, December 31, 2022 | 34 |
Future premiums expected to be collected, December 31, 2023 | 33 |
Future premiums expected to be collected, December 31, 2024 | 32 |
Future premiums expected to be collected, December 31, 2025 | 30 |
Future premiums expected to be collected, December 31, 2030 | 129 |
Future premiums expected to be collected, December 31, 2035 | 90 |
Future premiums expected to be collected, December 31, 2040 | 42 |
Future premiums expected to be collected, December 31, 2045 | 19 |
Future premiums expected to be collected, December 31, 2050 | 7 |
Future premiums expected to be collected, December 31, 2055 | 1 |
Future premiums expected to be collected, Total | 443 |
Future expected premiums to be earned, net of reinsurance, June 30, 2021 | 8 |
Future expected premiums to be earned, net of reinsurance, September 30, 2021 | 8 |
Future expected premiums to be earned, net of reinsurance, December 31, 2021 | 8 |
Future expected premiums to be earned, net of reinsurance, December 31, 2022 | 31 |
Future expected premiums to be earned, net of reinsurance, December 31, 2023 | 29 |
Future expected premiums to be earned, net of reinsurance, December 31, 2024 | 28 |
Future expected premiums to be earned, net of reinsurance, December 31, 2025 | 26 |
Future expected premiums to be earned, net of reinsurance, December 31, 2030 | 110 |
Future expected premiums to be earned, net of reinsurance, December 31, 2035 | 71 |
Future expected premiums to be earned, net of reinsurance, December 31, 2040 | 29 |
Future expected premiums to be earned, net of reinsurance, December 31, 2045 | 11 |
Future expected premiums to be earned, net of reinsurance, December 31, 2050 | 4 |
Future expected premiums to be earned, net of reinsurance, December 31, 2055 | 0 |
Future expected premiums to be earned, net of reinsurance, Total | $ 364 |
Financial Guarantee Insurance_6
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts - Components of Loss and Loss Expense Reserves and Subrogation Recoverable (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 0 | $ 1 | $ 1 | |
Loss Reserves Ceded To Reinsurers | 33 | 35 | 33 | $ 26 |
Policyholder Benefits and Claims Incurred, Ceded | 1 | 10 | ||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | (447) | $ (430) | (430) | $ (508) |
Loss and loss expense reserves | 1,662 | 1,759 | ||
Subrogation recoverable | (2,076) | (2,156) | ||
Claim liability reported on Balance Sheet, before reinsurance | (414) | (397) | ||
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 | 1,831 | 2,060 | ||
Subrogation recoverable | 99 | 100 | ||
Claim liability reported on Balance Sheet, before reinsurance | 1,930 | 2,160 | ||
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 | (102) | (229) | ||
Subrogation recoverable | (2,175) | (2,256) | ||
Claim liability reported on Balance Sheet, before reinsurance | (2,277) | (2,486) | ||
Unearned Premium Reserve [Member] | ||||
Components of Loss and Loss Expense Reserves and Subrogation Recoverable [Line Items] | ||||
Loss and loss expense reserves | (67) | (72) | ||
Subrogation recoverable | 0 | 0 | ||
Claim liability reported on Balance Sheet, before reinsurance | $ (67) | $ (72) |
Financial Guarantee Insurance_7
Financial Guarantee Insurance Contracts - Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Beginning gross loss and loss expense reserves | $ (397) | $ (482) | |||
Less reinsurance on loss and loss expense reserves | 33 | 26 | |||
Beginning balance of net loss and loss expense reserves | (430) | (508) | |||
Current Year Claims and Claims Adjustment Expense | 0 | 27 | |||
Prior Year Claims and Claims Adjustment Expense | 8 | 90 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims | 8 | 117 | |||
Claim and loss expense payments, net of subrogation and reinsurance | 0 | 0 | |||
Claim and loss expense (payments) recoveries, net of subrogation and reinsurance | (25) | (39) | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Claims Paid | 25 | 39 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Foreign Currency Translation Gain (Loss) | 0 | 0 | |||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | (430) | (508) | $ (447) | $ (430) | $ (430) |
Add reinsurance on loss and loss expense reserves | 33 | 35 | |||
Ending gross loss and loss expense reserves | (414) | (395) | |||
Policyholder Benefits and Claims Incurred, Ceded | 1 | 10 | |||
Net Incurred RMBS Subrogation Recoveries | $ (3) | $ 36 | |||
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 0 | $ 1 | $ 1 |
Financial Guarantee Insurance_8
Financial Guarantee Insurance Contracts - Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)Policies | Dec. 31, 2020USD ($)Policies | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Loss Reserves Ceded To Reinsurers | $ 33 | $ 33 | $ 35 | $ 26 |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 0 | $ 1 | $ 1 | |
Number of policies | Policies | 229 | 232 | ||
Remaining weighted-average contract period (in years) | 15 years | 14 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 7,087 | $ 7,573 | ||
Interest | 3,413 | 3,443 | ||
Total | 10,500 | 11,016 | ||
Gross undiscounted claim liability | 2,245 | 2,395 | ||
Discount, gross claim liability | 372 | 303 | ||
Gross claim liability before all subrogation and before reinsurance | 1,872 | 2,092 | ||
Less: | ||||
Gross RMBS subrogation | (1,749) | (1,753) | ||
Discount, RMBS subrogation | 2 | 3 | ||
Discounted RMBS subrogation, before reinsurance | (1,748) | (1,751) | ||
Less: | ||||
Gross other subrogation | (559) | (755) | ||
Discount, other subrogation | 30 | 20 | ||
Discounted other subrogation, before reinsurance | (530) | (735) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | (405) | (394) | ||
Less: Unearned premium reserves | (67) | (72) | ||
Plus: Loss adjustment expenses reserves | 57 | 68 | ||
Claim liability reported on Balance Sheet, before reinsurance | (414) | (397) | ||
Reinsurance recoverable reported on Balance Sheet | $ 33 | $ 33 | ||
I/SL [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 36 | 40 | ||
Remaining weighted-average contract period (in years) | 10 years | 10 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 738 | $ 842 | ||
Interest | 255 | 279 | ||
Total | 994 | 1,121 | ||
Gross undiscounted claim liability | 3 | 3 | ||
Discount, gross claim liability | 0 | 0 | ||
Gross claim liability before all subrogation and before reinsurance | 3 | 3 | ||
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 | 3 | ||
Less: Unearned premium reserves | (2) | (2) | ||
Plus: Loss adjustment expenses reserves | 2 | 1 | ||
Claim liability reported on Balance Sheet, before reinsurance | 2 | 2 | ||
Reinsurance recoverable reported on Balance Sheet | $ 0 | $ 0 | ||
IA [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 25 | 25 | ||
Remaining weighted-average contract period (in years) | 18 years | 18 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 1,158 | $ 1,375 | ||
Interest | 1,078 | 1,011 | ||
Total | 2,236 | 2,386 | ||
Gross undiscounted claim liability | 49 | 49 | ||
Discount, gross claim liability | 4 | 2 | ||
Gross claim liability before all subrogation and before reinsurance | 46 | 47 | ||
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 | 46 | 47 | ||
Less: Unearned premium reserves | (14) | (16) | ||
Plus: Loss adjustment expenses reserves | 0 | 2 | ||
Claim liability reported on Balance Sheet, before reinsurance | 32 | 32 | ||
Reinsurance recoverable reported on Balance Sheet | $ 7 | $ 6 | ||
II [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 17 | 15 | ||
Remaining weighted-average contract period (in years) | 8 years | 8 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 599 | $ 595 | ||
Interest | 479 | 484 | ||
Total | 1,078 | 1,079 | ||
Gross undiscounted claim liability | 41 | 40 | ||
Discount, gross claim liability | 1 | 1 | ||
Gross claim liability before all subrogation and before reinsurance | 40 | 40 | ||
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 | 40 | 39 | ||
Less: Unearned premium reserves | (5) | (5) | ||
Plus: Loss adjustment expenses reserves | 1 | 1 | ||
Claim liability reported on Balance Sheet, before reinsurance | 36 | 35 | ||
Reinsurance recoverable reported on Balance Sheet | $ 10 | $ 9 | ||
III [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 15 | 15 | ||
Remaining weighted-average contract period (in years) | 16 years | 16 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 1,421 | $ 1,469 | ||
Interest | 199 | 215 | ||
Total | 1,620 | 1,685 | ||
Gross undiscounted claim liability | 581 | 541 | ||
Discount, gross claim liability | 138 | 85 | ||
Gross claim liability before all subrogation and before reinsurance | 443 | 456 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (36) | (36) | ||
Discount, other subrogation | 2 | 1 | ||
Discounted other subrogation, before reinsurance | (34) | (35) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 409 | 421 | ||
Less: Unearned premium reserves | (16) | (17) | ||
Plus: Loss adjustment expenses reserves | 5 | 5 | ||
Claim liability reported on Balance Sheet, before reinsurance | 398 | 409 | ||
Reinsurance recoverable reported on Balance Sheet | $ 24 | $ 24 | ||
IV [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 131 | 132 | ||
Remaining weighted-average contract period (in years) | 13 years | 14 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 3,124 | $ 3,246 | ||
Interest | 1,376 | 1,427 | ||
Total | 4,500 | 4,673 | ||
Gross undiscounted claim liability | 1,498 | 1,690 | ||
Discount, gross claim liability | 224 | 213 | ||
Gross claim liability before all subrogation and before reinsurance | 1,274 | 1,477 | ||
Less: | ||||
Gross RMBS subrogation | (1,749) | (1,753) | ||
Discount, RMBS subrogation | 2 | 3 | ||
Discounted RMBS subrogation, before reinsurance | (1,748) | (1,751) | ||
Less: | ||||
Gross other subrogation | (510) | (706) | ||
Discount, other subrogation | 25 | 18 | ||
Discounted other subrogation, before reinsurance | (485) | (689) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | (959) | (963) | ||
Less: Unearned premium reserves | (29) | (30) | ||
Plus: Loss adjustment expenses reserves | 49 | 59 | ||
Claim liability reported on Balance Sheet, before reinsurance | (938) | (933) | ||
Reinsurance recoverable reported on Balance Sheet | $ (8) | $ (6) | ||
V [Member] | ||||
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Number of policies | Policies | 5 | 5 | ||
Remaining weighted-average contract period (in years) | 7 years | 7 years | ||
Gross insured contractual payments outstanding: | ||||
Principal | $ 47 | $ 47 | ||
Interest | 25 | 26 | ||
Total | 72 | 72 | ||
Gross undiscounted claim liability | 72 | 72 | ||
Discount, gross claim liability | 5 | 3 | ||
Gross claim liability before all subrogation and before reinsurance | 67 | 69 | ||
Less: | ||||
Gross RMBS subrogation | 0 | 0 | ||
Discount, RMBS subrogation | 0 | 0 | ||
Discounted RMBS subrogation, before reinsurance | 0 | 0 | ||
Less: | ||||
Gross other subrogation | (12) | (12) | ||
Discount, other subrogation | 2 | 1 | ||
Discounted other subrogation, before reinsurance | (10) | (11) | ||
Gross claim liability, net of all subrogation and discounts, before reinsurance | 56 | 58 | ||
Less: Unearned premium reserves | (1) | (1) | ||
Plus: Loss adjustment expenses reserves | 0 | 0 | ||
Claim liability reported on Balance Sheet, before reinsurance | 56 | 57 | ||
Reinsurance recoverable reported on Balance Sheet | $ 0 | $ 0 |
Financial Guarantee Insurance_9
Financial Guarantee Insurance Contracts - Summary of Information Related to Policies Currently Included in Ambac's Loss Reserves or Subrogation Recoverable (Phantom) (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Insured Financial Obligations with Credit Deterioration [Line Items] | ||||
Loss Reserves Ceded To Reinsurers | $ 33 | $ 33 | $ 35 | $ 26 |
Loss and loss expense reserves | 1,662 | 1,759 | ||
Subrogation recoverable | (2,076) | (2,156) | ||
Liability for Claims | (414) | (397) | (395) | $ (482) |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 0 | $ 1 | $ 1 |
Financial Guarantee Insuranc_10
Financial Guarantee Insurance Contracts - Summary of Balance of RMBS Subrogation Recoveries and Related Claim Liabilities, by Estimation Approach (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Balance Of Rmbs Subrogation Recoveries Net Of Reinsurance | $ (1,722) | $ (1,725) | ||
Subrogation recoveries | 1,748 | 1,751 | ||
Random Samples [Member] | ||||
Schedule Of Balance Of Rmbs Subrogation Recoveries And Related Claim Liabilities By Estimation Approach [Line Items] | ||||
Subrogation recoveries | 1,748 | $ 1,764 | $ 1,751 | $ 1,727 |
Other Changes Rmbs Subrogation | $ (3) | $ 36 |
Financial Guarantee Insuranc_11
Financial Guarantee Insurance Contracts - Summary of Rollforward of RMBS Subrogation, by Estimation Approach (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Subrogation By Estimation Approach [Roll Forward] | ||
Discounted RMBS subrogation (gross of reinsurance), beginning balance | $ 1,751 | |
Changes recognized | ||
Discounted RMBS subrogation (gross of reinsurance), ending balance | 1,748 | |
Random Samples [Member] | ||
Subrogation By Estimation Approach [Roll Forward] | ||
Discounted RMBS subrogation (gross of reinsurance), beginning balance | 1,751 | $ 1,727 |
Changes recognized | ||
Other Changes Rmbs Subrogation | (3) | 36 |
Discounted RMBS subrogation (gross of reinsurance), ending balance | $ 1,748 | $ 1,764 |
Financial Guarantee Insuranc_12
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts - Summary of Percentage Ceded to Reinsurers and Reinsurance Recoverable and Rating Levels (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Insurance [Abstract] | ||||
Loss Reserves Ceded To Reinsurers | $ 33 | $ 33 | $ 35 | $ 26 |
Ceded Loss And Loss Expenses Paid Not Yet Recovered | $ 0 | $ 1 | $ 1 |
Financial Guarantee Insuranc_13
Financial Guarantee Insurance Contracts - Estimated Future Amortization Expense for Insurance Intangible Asset (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Amortization Of Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 19 | $ 13 | |
2019 | 30 | ||
2020 | 37 | ||
2021 | 34 | ||
2022 | 31 | ||
2023 | 29 | ||
Thereafter | 229 | ||
Intangible assets | $ 391 | $ 409 | |
Insurance Intangible Asset [Member] | |||
Amortization Of Intangible Assets [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 4 months 24 days | ||
Amortization of intangible assets | $ 19 | $ 13 | |
Intangible Assets, Gross (Excluding Goodwill) | 1,282 | 1,281 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 927 | 908 | |
2019 | 28 | ||
2020 | 35 | ||
2021 | 31 | ||
2022 | 29 | ||
2023 | 26 | ||
Thereafter | 207 | ||
Intangible assets | $ 356 | $ 373 |
Financial Guarantee Insuranc_14
Financial Guarantee Insurance Contracts Earned Premiums by Geographic Location (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 14 | $ 10 |
United States [Member] | Reportable Geographical Components [Member] | ||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 7 | 7 |
United Kingdom [Member] | Reportable Geographical Components [Member] | ||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | 3 | 4 |
Other International [Member] | Reportable Geographical Components [Member] | ||
Premiums Earned, Net, Financial Guarantee Insurance Contracts | $ 3 | $ 0 |
Financial Guarantee Insuranc_15
Financial Guarantee Insurance Contracts Financial Guarantee Insurance Contracts - Insurance Intangible Asset Details (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Intangible assets | $ 391 | $ 409 | |
Amortization of intangible assets | $ 19 | $ 13 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value of Ambac's Financial Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | $ 2,858 | |
Financial assets: | ||
Derivative assets | 74 | $ 93 |
Other assets | 1 | 1 |
Long-term Debt | 2,661 | 2,739 |
Financial liabilities: | ||
Derivative liabilities | 86 | 114 |
Short-term Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 397 | 492 |
Total Fair Value [Member] | ||
Financial assets: | ||
Cash | 39 | 33 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Other investments | 99 | 89 |
Cash | 39 | 33 |
Loans | 3 | 3 |
Other assets | 1 | 1 |
Total financial assets | 9,799 | 10,071 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | (751) | (740) |
Long-term debt | 3,177 | 3,255 |
Total financial liabilities | 8,677 | 8,958 |
Reported Value Measurement [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 397 | 492 |
Reported Value Measurement [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other investments | 600 | 595 |
Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 114 | |
Other Assets [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 73 | 93 |
Level 1 [Member] | ||
Financial assets: | ||
Cash | 38 | 32 |
Total financial assets | 778 | 888 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term debt | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 1 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 311 | 415 |
Level 1 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 0 | 0 |
Level 1 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 0 | 0 |
Level 1 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other investments | 99 | 91 |
Level 1 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Level 1 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Level 2 [Member] | ||
Financial assets: | ||
Cash | 2 | 2 |
Total financial assets | 2,323 | 2,299 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 0 | 0 |
Long-term debt | 3,011 | 2,670 |
Total financial liabilities | 9,126 | 8,968 |
Level 2 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 86 | 76 |
Level 2 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 0 | 0 |
Level 2 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 0 | 0 |
Level 2 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other investments | 0 | 0 |
Level 2 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 114 | |
Level 2 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 7 | 9 |
Level 3 [Member] | ||
Financial assets: | ||
Cash | 0 | 0 |
Total financial assets | 6,197 | 6,433 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 279 | 539 |
Long-term debt | 20 | 401 |
Total financial liabilities | 460 | 1,095 |
Level 3 [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 0 | 0 |
Level 3 [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 1 | 1 |
Level 3 [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 3 | 3 |
Level 3 [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other investments | 0 | 53 |
Level 3 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | |
Level 3 [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 66 | 85 |
Municipal Bonds [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 366 | 358 |
Corporate Debt Securities [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 1,108 | 1,077 |
Debt Security, Government, Non-US [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 98 |
US Government Debt Securities [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 108 | 106 |
Residential Mortgage-Backed Securities [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 269 | 302 |
Collateralized Debt Obligations [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 74 |
Asset-backed Securities [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 295 | 303 |
Fair Value, Recurring [Member] | ||
Financial assets: | ||
Total financial assets | 9,799 | 10,073 |
Financial liabilities: | ||
Liabilities for net financial guarantees written | 279 | 539 |
Long-term debt | 3,032 | 3,071 |
Total financial liabilities | 9,586 | 10,063 |
Fair Value, Recurring [Member] | Short-term Investments [Member] | ||
Financial assets: | ||
Short term investments | 397 | 492 |
Fair Value, Recurring [Member] | Equity Method Investments [Member] | ||
Financial assets: | ||
Other assets | 1 | 1 |
Fair Value, Recurring [Member] | Loans Receivable [Member] | ||
Financial assets: | ||
Loans | 3 | 3 |
Fair Value, Recurring [Member] | Other Debt Obligations [Member] | ||
Financial assets: | ||
Other investments | 600 | 597 |
Fair Value, Recurring [Member] | Asset-backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 295 | 303 |
Fair Value, Recurring [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 74 |
Fair Value, Recurring [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 269 | 302 |
Fair Value, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 108 | 106 |
Fair Value, Recurring [Member] | Debt Security, Government, Non-US [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 98 |
Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 1,108 | 1,077 |
Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 366 | 358 |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 114 | |
Fair Value, Recurring [Member] | Other Assets [Member] | Interest Rate Swap [Member] | ||
Financial assets: | ||
Derivative assets | 73 | 93 |
Fair Value, Recurring [Member] | Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 1 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 108 | 106 |
Fair Value, Recurring [Member] | Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 98 |
Fair Value, Recurring [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 2 | 4 |
Fair Value, Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 219 | 225 |
Fair Value, Recurring [Member] | Level 2 [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 97 | 74 |
Fair Value, Recurring [Member] | Level 2 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 269 | 302 |
Fair Value, Recurring [Member] | Level 2 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 1,106 | 1,073 |
Fair Value, Recurring [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 366 | 358 |
Fair Value, Recurring [Member] | Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 76 | 78 |
Fair Value, Recurring [Member] | Level 3 [Member] | Collateralized Debt Obligations [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Residential Mortgage-Backed Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Fair Value, Recurring [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Collateral Pledged [Member] | US Government Debt Securities [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 15 | |
Collateral Pledged [Member] | Short-term Investments [Member] | Reported Value Measurement [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 105 | 125 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Short-term Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 105 | 125 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 15 | |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | Short-term Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 105 | 125 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 1 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 15 | |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | Short-term Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 2 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | Short-term Investments [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Collateral Pledged [Member] | Fair Value, Recurring [Member] | Level 3 [Member] | US Government Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 3,236 | 3,354 |
Financial assets: | ||
Loans | 2,948 | 2,998 |
Derivative assets | 38 | 41 |
Long-term Debt | 4,427 | 4,493 |
Financial liabilities: | ||
Derivative liabilities | 1,739 | 1,835 |
Long-term debt | 4,264 | 4,324 |
Variable Interest Entity, Primary Beneficiary [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 3,103 | 3,215 |
Variable Interest Entity, Primary Beneficiary [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 133 | 139 |
Variable Interest Entity, Primary Beneficiary [Member] | Reported Value Measurement [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 2 | 2 |
Loans | 2,948 | 2,998 |
Financial liabilities: | ||
Long-term debt | 4,427 | 4,493 |
Variable Interest Entity, Primary Beneficiary [Member] | Reported Value Measurement [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 3,103 | 3,215 |
Variable Interest Entity, Primary Beneficiary [Member] | Reported Value Measurement [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 133 | 139 |
Variable Interest Entity, Primary Beneficiary [Member] | Reported Value Measurement [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,739 | 1,835 |
Variable Interest Entity, Primary Beneficiary [Member] | Reported Value Measurement [Member] | Currency Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 38 | 41 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 1 [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 2 | 2 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term debt | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 1 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 1 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 1 [Member] | Currency Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 2 [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Loans | 0 | 0 |
Financial liabilities: | ||
Long-term debt | 4,290 | 4,349 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 2 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 133 | 139 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 2 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,739 | 1,835 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 2 [Member] | Currency Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 38 | 41 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Loans | 2,948 | 2,998 |
Financial liabilities: | ||
Long-term debt | 160 | 155 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 3,103 | 3,215 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Level 3 [Member] | Currency Swaps [Member] | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Recurring [Member] | ||
Financial assets: | ||
Restricted Cash and Cash Equivalents, Current | 2 | 2 |
Loans | 2,948 | 2,998 |
Financial liabilities: | ||
Long-term debt | 4,451 | 4,504 |
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Recurring [Member] | Corporate Debt Securities [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 3,103 | 3,215 |
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Fixed maturity securities, at fair value | 133 | 139 |
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||
Financial liabilities: | ||
Derivative liabilities | 1,739 | 1,835 |
Variable Interest Entity, Primary Beneficiary [Member] | Fair Value, Recurring [Member] | Currency Swaps [Member] | ||
Financial assets: | ||
Derivative assets | $ 38 | $ 41 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $ 283,000 | $ 19,000 |
Derivative liabilities | $ 86,000,000 | $ 114,000,000 |
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 2.20% | 2.20% |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Derivative liabilities | $ 1,739,000,000 | $ 1,835,000,000 |
Weighted average discounted rate of estimated future premium payments to be paid by the VIEs | 2.80% | 2.40% |
Fair Value Measured at Net Asset Value Per Share [Member] | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other investments | $ 501,000,000 | $ 453,000,000 |
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 | 3.00% | 2.00% |
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% | 3.00% |
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 | 95.00% | 95.00% |
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Note Holders | 1 | |
Ambac Assurance Corporation [Member] | 5.1% Junior Surplus Notes, General Account Due 2020 | Corolla Notes | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Note Holders | 1 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Valuation Inputs for Fixed Income Securities Classified as Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Asset-backed Securities [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Coupon rate | 5.98% | 5.97% | ||
Fair Value Inputs Maturity | 14 years 7 months 28 days | 14 years 9 months 29 days | ||
Yield | 10.75% | 10.50% | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | $ 6,194 | $ 5,884 | $ 6,376 | $ 6,207 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (145) | 130 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 49 | (377) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (86) | (76) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (145) | 130 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 49 | (377) | ||
Fair Value, Inputs, Level 3 [Member] | Investments [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 76 | 66 | 78 | 72 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (2) | (6) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | 0 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (2) | (6) | ||
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 1 | 3 | 1 | 3 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Derivative [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 65 | 77 | 84 | 66 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 12 | ||
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 Issues | 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 | (2) | (1) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 12 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (17) | 0 | ||
Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 65 | 77 | 84 | 66 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 12 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (2) | (1) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 12 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Credit Derivative [Member] | Credit Derivative [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 0 | (2) | 0 | 0 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | (1) | ||
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 Issues | 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, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | (2) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 66 | 79 | $ 85 | $ 67 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 13 | ||
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 Issues | 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 | (2) | (1) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 13 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | $ (17) | $ 0 |
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 (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value of derivative liabilities | $ 85 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value of derivative liabilities | 0 | |
Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other investments | 16 | $ 16 |
Interest Rate Contract [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other investments | 77 | 78 |
Illiquid Investments [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other investments | $ 67 | $ 65 |
Asset-backed Securities [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair Value Inputs Coupon Rate | 5.98% | 5.97% |
Fair Value Inputs Maturity | 14 years 7 months 28 days | 14 years 9 months 29 days |
Fair Value Inputs Yield | 10.75% | 10.50% |
Fair Value Measurements - Inf_2
Fair Value Measurements - Information about Valuation Inputs for Variable Interest Entity Assets and Liabilities Classified as Level 3 (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Estimated Future Premium Payments Minimum Discounted Rate | 2.30% | |||
Estimated Future Premium Payments Maximum Discounted Rate | 3.50% | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | $ 6,194 | $ 5,884 | $ 6,376 | $ 6,207 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (145) | 130 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 49 | (377) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (86) | (76) | ||
Fair Value, Inputs, Level 3 [Member] | Investments [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 76 | 66 | 78 | 72 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (2) | (6) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Other Assets [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 1 | 3 | 1 | 3 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Loan Origination Commitments [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,948 | 2,932 | 2,998 | 3,108 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 9 | 88 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 24 | (190) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (84) | (74) | ||
Derivative Financial Instruments, Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 65 | 77 | 84 | 66 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 12 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (2) | (1) | ||
Investment Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 3,103 | 2,806 | $ 3,215 | $ 2,957 |
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (138) | 30 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | $ 26 | $ (181) |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Changes in Level 3 Fair Value Category (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)level3FinancialInstruments | Mar. 31, 2020USD ($)level3FinancialInstruments | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis Asset or Liability, Transfers into or out of Level 3 | level3FinancialInstruments | 0 | 0 | ||
Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | $ 66 | $ 79 | $ 85 | $ 67 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 13 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (17) | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 13 | ||
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 Issues | 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 | (2) | (1) | ||
Credit Derivative [Member] | Credit Derivative [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 0 | (2) | 0 | 0 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | (2) | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | (1) | ||
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 Issues | 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 | ||
Derivative [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 65 | 77 | 84 | 66 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 12 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (17) | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 12 | ||
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 Issues | 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 | (2) | (1) | ||
Level 3 [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 6,194 | 5,884 | 6,376 | 6,207 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (145) | 130 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 49 | (377) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (145) | 130 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 49 | (377) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (86) | (76) | ||
Level 3 [Member] | Loans Receivable [Member] | Loans [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 2,948 | 2,932 | 2,998 | 3,108 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | 9 | 88 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 24 | (190) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 9 | 88 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | 24 | (190) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (84) | (74) | ||
Level 3 [Member] | Investments [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 76 | 66 | 78 | 72 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | (2) | (6) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | (2) | (6) | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | 0 | 0 | ||
Level 3 [Member] | Other Assets [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 1 | 3 | 1 | 3 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | 0 | 0 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | 0 | 0 | ||
Level 3 [Member] | Derivative Financial Instruments, Liabilities [Member] | Derivative Financial Instruments, Liabilities [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 65 | 77 | 84 | 66 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (17) | 12 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 0 | 0 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (17) | 12 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Settlements | (2) | (1) | ||
Level 3 [Member] | Corporate Debt Securities [Member] | Investment Contracts [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability | 3,103 | 2,806 | $ 3,215 | $ 2,957 |
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss) | (138) | 30 | ||
Fair Value, Asset (Liability), Recurring Basis, Still Held, Unrealized Gain (Loss), OCI | 26 | (181) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Earnings | (138) | 30 | ||
Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Or Liability Gain Loss Included In Other Comprehensive Income Loss | $ 26 | $ (181) |
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 (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 | $ 0 | $ 0 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | 0 | 0 |
Gain (Loss) on Derivative Instruments [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Total gains or losses included in earnings for the period | (17) | 12 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (17) | 12 |
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 | (129) | 118 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | (129) | 118 |
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 | 0 | 0 |
Fair Value Asset Or Liability Measured On Recurring Basis Change In Unrealized Gains Losses Still Held | $ 0 | $ 0 |
Investments - Summary of Amorti
Investments - Summary of Amortized Cost and Estimated Fair Value of Available-for-Sale Investments, Excluding VIE Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | $ 669 | $ 841 |
Debt Securities, Available-for-sale, Amortized Cost | 2,739 | 2,807 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 136 | 149 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 638 | 816 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 31 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Available-for-sale Securities, Current | 2,858 | 2,949 |
Fixed maturity securities, at fair value | 2,858 | |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 157 | 187 |
Debt Securities, Available-for-sale, Amortized Cost | 398 | 492 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 157 | 187 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 397 | 492 |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 512 | 654 |
Debt Securities, Available-for-sale, Amortized Cost | 2,221 | 2,175 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 136 | 149 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 481 | 629 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 31 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Fixed maturity securities, at fair value | 2,341 | 2,317 |
Fixed Income Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 35 | 31 |
Debt Securities, Available-for-sale, Amortized Cost | 329 | 321 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 38 | 37 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 19 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 16 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 366 | 358 |
Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 339 | 543 |
Debt Securities, Available-for-sale, Amortized Cost | 1,106 | 1,059 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 14 | 24 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 339 | 543 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 13 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 13 | 6 |
Fixed maturity securities, at fair value | 1,108 | 1,077 |
Fixed Income Securities [Member] | Foreign Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 70 | 3 |
Debt Securities, Available-for-sale, Amortized Cost | 98 | 97 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 70 | 3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1 | 0 |
Fixed maturity securities, at fair value | 97 | 98 |
Fixed Income Securities [Member] | US Government Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 25 | 17 |
Debt Securities, Available-for-sale, Amortized Cost | 109 | 105 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 1 | 2 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 25 | 17 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2 | 1 |
Fixed maturity securities, at fair value | 108 | 106 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 17 | 14 |
Debt Securities, Available-for-sale, Amortized Cost | 219 | 256 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 50 | 46 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 15 | 14 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 269 | 302 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 26 | 42 |
Debt Securities, Available-for-sale, Amortized Cost | 97 | 74 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 13 | 27 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 13 | 15 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 97 | 74 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Unrealized Loss Position | 0 | 4 |
Debt Securities, Available-for-sale, Amortized Cost | 262 | 263 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 33 | 40 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 295 | 303 |
Fixed Income Investments And Other Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 2,619 | 2,667 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 136 | 149 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Fixed maturity securities, at fair value | 2,738 | 2,809 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 120 | 140 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 105 | 125 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 105 | 125 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | US Treasury and Government | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 15 | 15 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Fixed maturity securities, at fair value | 15 | 15 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Asset Pledged as Collateral [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 120 | 140 |
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 | $ 0 |
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 (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | $ 2,739 | |
Fixed maturity securities, at fair value | 2,858 | |
Amortized Cost, Due in one year or less | 617 | |
Amortized Cost, Due after one year through five years | 906 | |
Amortized Cost, Due after five years through ten years | 455 | |
Amortized Cost, Due after ten years | 183 | |
Amortized Cost, Total | 2,160 | |
Estimated Fair Value, Due in one year or less | 618 | |
Estimated Fair Value, Due after one year through five years | 912 | |
Estimated Fair Value, Due after five years through ten years | 459 | |
Estimated Fair Value, Due after ten years | 209 | |
Estimated Fair Value due, Total | 2,197 | |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fixed maturity securities, at fair value | 2,341 | $ 2,317 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 219 | |
Fixed maturity securities, at fair value | 269 | 302 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 97 | |
Fixed maturity securities, at fair value | 97 | 74 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Amortized Cost | 262 | |
Fixed maturity securities, at fair value | $ 295 | $ 303 |
Investments - Summary of Gross
Investments - Summary of Gross Unrealized Losses and Fair Values of Ambac's Available-for-Sale Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 638 | $ 816 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 31 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 669 | 841 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 157 | 187 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 157 | 187 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Investments And Other Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 481 | 629 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 17 | 7 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 31 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 512 | 654 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 17 | 8 |
Fixed Income Securities [Member] | Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 19 | 25 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 16 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 35 | 31 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 339 | 543 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 13 | 6 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 339 | 543 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 13 | 6 |
Fixed Income Securities [Member] | Debt Security, Government, Non-US [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 70 | 3 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 70 | 3 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 1 | 0 |
Fixed Income Securities [Member] | US Government Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 25 | 17 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 2 | 1 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 25 | 17 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 2 | 1 |
Fixed Income Securities [Member] | Residential Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 15 | 14 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 17 | 14 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | Collateralized Debt Obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 13 | 27 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 13 | 15 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 26 | 42 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Fixed Income Securities [Member] | Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 4 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 |
Debt Securities, Available-for-sale, Unrealized Loss Position | 0 | 4 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Collateral Pledged [Member] | Fixed Income Securities [Member] | Short-term Investments [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | $ 0 | $ 0 |
Investments - Additional Inform
Investments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule of Investments [Line Items] | ||
Debt Securities, Available-for-sale, Allowance for Credit Loss | $ 0 | $ 0 |
Securities fair value | 8 | 8 |
Ambac Assurance [Member] | ||
Schedule of Investments [Line Items] | ||
Unsettled Amounts Secured Notes from LSNI | 12 | 9 |
Interest Rate Contract [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments | 77 | 78 |
Reported Value Measurement [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments | 99 | 89 |
Reported Value Measurement [Member] | Interest Rate Contract [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments | 0 | $ 3 |
Commitments [Member] | Partnership Interest [Member] | ||
Schedule of Investments [Line Items] | ||
Other investments | $ 102 |
Investments - Summary of Amount
Investments - Summary of Amounts Included in Net Realized (Losses) Gains and Other-Than-Temporary Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Investment [Line Items] | |||
Gross realized gains on securities | $ 7 | $ 6 | |
Gross realized losses on securities | (1) | 0 | |
Foreign exchange (losses) gains | (5) | 1 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Not to Sell before Recovery, Credit Loss, Previously Recorded, Expense (Reversal) | 0 | 0 | |
Debt Securities, Available-for-sale, Allowance for Credit Loss, Sell before Recovery | 0 | 0 | |
Net realized (losses) gains | 2 | 8 | |
Fair Value of Securities Deposited in Connection wtih Letter of Credit | 1 | $ 1 | |
Gain (Loss) on Investments [Member] | |||
Investment [Line Items] | |||
Foreign exchange (losses) gains | $ (4) | $ 2 |
Investments - Summary of Source
Investments - Summary of Sources of Collateral Received and Various Investment Agreement in which Collateral Pledged (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Investment [Line Items] | ||
Fair Value Of Securities Deposited With Governmental Authorities | $ 8 | $ 8 |
Fair Value of Securities Deposited in Connection wtih Letter of Credit | 1 | 1 |
Market Value of Secured Note Collateral | 163 | 178 |
Investment Portfolio [Member] | ||
Investment [Line Items] | ||
Fair Value of Cash and Securities Pledged to Derivative Counterparties | 120 | 140 |
Ambac Assurance [Member] | ||
Investment [Line Items] | ||
Unsettled Amounts Secured Notes from LSNI | 12 | 9 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | ||
Investment [Line Items] | ||
Investment Owned, at Fair Value | 4 | 6 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | Municipal Bonds [Member] | ||
Investment [Line Items] | ||
Investment Owned, at Fair Value | 4 | 6 |
National Public Finance Guarantee Corporation [Member] | Standard & Poor's, BBB- Rating [Member] | Corporate Debt Securities [Member] | ||
Investment [Line Items] | ||
Investment Owned, at Fair Value | $ 0 | $ 0 |
Investments - Summary of Fair V
Investments - Summary of Fair Value, Including Financial Guarantee, and Weighted-Average Underlying Rating, Excluding Financial Guarantee, of Insured Securities (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Standard & Poor's, BBB- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 4 | $ 6 |
Standard & Poor's, C Rating | Assured Guaranty Municipal Corporation | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | 1 |
Standard & Poor's, CCC+ Rating | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1,257 | 1,273 |
Standard & Poor's, CCC+ Rating | Ambac Assurance Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1,252 | 1,266 |
Municipal Bonds [Member] | Standard & Poor's, BBB- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 4 | 6 |
Municipal Bonds [Member] | Standard & Poor's, C Rating | Assured Guaranty Municipal Corporation | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 1 | 1 |
Municipal Bonds [Member] | Standard & Poor's, CCC+ Rating | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 328 | 327 |
Municipal Bonds [Member] | Standard & Poor's, CCC+ Rating | Ambac Assurance Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 323 | 320 |
Corporate Debt Securities [Member] | Standard & Poor's, BBB- Rating [Member] | National Public Finance Guarantee Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | 0 |
Corporate Debt Securities [Member] | Standard & Poor's, C Rating | Assured Guaranty Municipal Corporation | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 0 | 0 |
Corporate Debt Securities [Member] | Standard & Poor's, CCC+ Rating | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 464 | 465 |
Corporate Debt Securities [Member] | Standard & Poor's, CCC+ Rating | Ambac Assurance Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 464 | 465 |
Mortgage And Other Asset Backed Securities [Member] | Standard & Poor's, CCC+ Rating | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | 465 | 481 |
Mortgage And Other Asset Backed Securities [Member] | Standard & Poor's, CCC+ Rating | Ambac Assurance Corporation [Member] | ||
Schedule of Investments [Line Items] | ||
Fair value of securities that include benefit of guarantees provided by financial guarantors | $ 465 | $ 481 |
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) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investment [Line Items] | ||
Net Realized and Unrealized Gain (Loss) on Trading Securities | $ 7 | $ (32) |
Trading Securities, Realized Gain (Loss) | 0 | (3) |
Investment expense | (1) | (2) |
Securities available-for-sale and short-term | 22 | 31 |
Net investment income (loss) | 49 | (21) |
Gains (losses) on securities held as of reporting date [Member] | ||
Investment [Line Items] | ||
Other Investments Income | 6 | (29) |
Fixed Income Investments [Member] | ||
Investment [Line Items] | ||
Gross Investment Income, Operating | 23 | 30 |
Short-Term [Member] | ||
Investment [Line Items] | ||
Gross Investment Income, Operating | 0 | 2 |
Other Investments [Member] | ||
Investment [Line Items] | ||
Gross Investment Income, Operating | $ 27 | $ (52) |
Investments - Summary of Net In
Investments - Summary of Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Short-term Investments [Member] | ||
Investment [Line Items] | ||
Gross Investment Income, Operating | $ 0 | $ 2 |
Investments Investments - Equit
Investments Investments - Equity Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Real Estate [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | $ 16 | $ 16 |
Hedge Funds, Multi-strategy [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 210 | 196 |
Interest Rate Contract [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 77 | 78 |
Illiquid Investments [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 67 | 65 |
Insurance Linked [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 3 | 3 |
Equity [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 82 | 73 |
Credit Index Product [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 98 | 73 |
Private Equity Funds [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 14 | 13 |
Emerging Market Debt [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 33 | 25 |
Equity investments in pooled funds [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 600 | 543 |
Priced Through Pricing Vendors [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 99 | 89 |
Priced Through Pricing Vendors [Member] | Interest Rate Contract [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 0 | 3 |
Priced Through Pricing Vendors [Member] | Equity [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 66 | 60 |
Priced Through Pricing Vendors [Member] | Emerging Market Debt [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | 33 | $ 25 |
Commitments [Member] | Partnership Interest [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Other investments | $ 102 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Gross Fair Values of Individual Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative, Collateral, Right to Reclaim Cash | $ 4 | $ 1 |
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 74 | 93 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 86 | 114 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 85 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 113 | |
Net Amount, Derivative Assets | 74 | 93 |
Derivative Asset, Fair Value, Gross Asset | 74 | 93 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative liabilities | 86 | 114 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liabilities Net Amount | 1 | 1 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 73 | 93 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 85 | 114 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 85 | 113 |
Net Amount, Derivative Assets | 73 | 93 |
Derivative Asset, Fair Value, Gross Asset | 73 | 93 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative liabilities | 85 | 114 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liabilities Net Amount | 1 | 1 |
Other Credit Derivatives [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 0 | |
Derivative liabilities | 0 | |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | |
Derivative Liabilities Net Amount | 0 | |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 38 | 41 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,739 | 1,835 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral | 0 | |
Gross Amount of Collateral Received/Pledged Not Offset in the Consolidated Balance Sheet, Derivative Liabilities | 0 | |
Net Amount, Derivative Assets | 38 | 41 |
Derivative Asset, Fair Value, Gross Asset | 38 | 41 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative liabilities | 1,739 | 1,835 |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 |
Derivative Liabilities Net Amount | 1,739 | 1,835 |
Variable Interest Entity, Primary Beneficiary [Member] | Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Liabilities Presented in the Consolidated Balance Sheet, Derivative Liabilities | 1,739 | 1,835 |
Derivative liabilities | 1,739 | 1,835 |
Derivative Liabilities Net Amount | 1,739 | 1,835 |
Variable Interest Entity, Primary Beneficiary [Member] | Currency Swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net Amounts of Assets Presented in the Consolidated Balance Sheet, Derivative Assets | 38 | 41 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral | 0 | |
Net Amount, Derivative Assets | 38 | 41 |
Derivative Asset, Fair Value, Gross Asset | 38 | $ 41 |
Derivative Asset, Fair Value, Amount Offset Against Collateral | $ 0 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
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 | $ 4,000,000 | $ 1,000,000 | |
Value of obligation to return cash collateral, recorded in "Other liabilities" | 0 | ||
Gains in change in fair value of the call options | 25,000,000 | $ (70,000,000) | |
Net liability fair value of all derivative instruments linked to Ambac's own credit risk | 85,000,000 | 113,000,000 | |
Fair value of posted assets as collateral | $ 103,000,000 | $ 130,000,000 |
Derivative Instruments - Summ_2
Derivative Instruments - Summary of Location and Amount of Gains and Losses of Derivative Contracts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ 25 | $ (70) |
Derivative, Gain (Loss) on Derivatives, Total Net | 121 | (13) |
Net gains (losses) on derivative contracts [Domain] | Credit Derivatives [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 0 | (1) |
Net gains (losses) on derivative contracts [Domain] | Interest Rate Swap [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 17 | (29) |
Net gains (losses) on derivative contracts [Domain] | Futures Contracts [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 8 | (40) |
Income Loss On Variable Interest Entities [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 96 | 57 |
Income Loss On Variable Interest Entities [Member] | Interest Rate Swap [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | 97 | 47 |
Income Loss On Variable Interest Entities [Member] | Currency Swaps [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Derivative, Gain (Loss) on Derivative, Net | $ (2) | $ 10 |
Derivative Instruments - Summ_3
Derivative Instruments - Summary of Notional Amounts of AFS's Trading Derivative Products (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
AFS [Member] | 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 | $ 190 | $ 195 |
AFS [Member] | 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 | 987 | 726 |
AFS [Member] | Futures Contracts [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | 470 | 240 |
Other Credit Derivatives [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 247 | $ 257 |
Derivative Instruments - Summ_4
Derivative Instruments - Summary of Notional for VIE Derivatives Outstanding (Details) - Variable Interest Entity, Primary Beneficiary [Member] - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
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 | $ 1,243 | $ 1,233 |
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 | 1,143 | 1,151 |
Currency Swaps [Member] | ||
Schedule Of Loans And Allowance For Loan By Class Individually And Collectively Evaluated For Impairment [Line Items] | ||
Derivative products, Notional Amount | $ 302 | $ 308 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Minimum [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 |
Maximum [Member] | |
Tax Credit Carryforward [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 |
Income Taxes Income Taxes - Pro
Income Taxes Income Taxes - Provision for Income Taxes Charged To Income From Continuing Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Provision for Income Taxes [Line Items] | ||
Current Federal Tax Expense (Benefit) | $ 0 | $ 0 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 17 | (257) |
Current Income Tax Expense (Benefit) | 5 | (2) |
Deferred Foreign Income Tax Expense (Benefit) | (3) | (5) |
Deferred Income Tax Expense (Benefit) | (3) | (5) |
Income Tax Expense (Benefit) | 2 | (7) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 2 | (30) |
Pre-tax income (loss) | 19 | (287) |
Current State and Local Tax Expense (Benefit) | 2 | 0 |
Current Foreign Tax Expense (Benefit) | $ 3 | $ (2) |
Income Taxes Income Taxes - NOL
Income Taxes Income Taxes - NOL Usage Table (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Minimum [Member] | |
Net Income Loss Reconciliation [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2029 |
Maximum [Member] | |
Net Income Loss Reconciliation [Line Items] | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2040 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Income Before Income Tax, Domestic and Foreign [Line Items] | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 17 | $ (257) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 2 | (30) |
Pre-tax income (loss) | $ 19 | $ (287) |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Intangible assets | $ 391 | $ 409 | |
Amortization of intangible assets | 19 | $ 13 | |
2019 | 30 | ||
2020 | 37 | ||
2021 | 34 | ||
2022 | 31 | ||
2023 | 29 | ||
Thereafter | 229 | ||
Insurance Intangible Asset [Member] | |||
Intangible Assets, Gross (Excluding Goodwill) | 1,282 | 1,281 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 927 | 908 | |
Intangible assets | 356 | 373 | |
Amortization of intangible assets | 19 | 13 | |
2019 | 28 | ||
2020 | 35 | ||
2021 | 31 | ||
2022 | 29 | ||
2023 | 26 | ||
Thereafter | $ 207 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years 4 months 24 days | ||
Other Intangible Assets | |||
Intangible Assets, Gross (Excluding Goodwill) | $ 36 | 36 | |
Finite-Lived Intangible Assets, Accumulated Amortization | 1 | 0 | |
Intangible assets | 35 | $ 36 | |
Amortization of intangible assets | 1 | $ 0 | |
2019 | 2 | ||
2020 | 3 | ||
2021 | 3 | ||
2022 | 3 | ||
2023 | 3 | ||
Thereafter | $ 22 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years |