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Financial Guarantee Insurance Contracts (Tables)
 6 Months Ended
Jun. 30, 2021
Insurance [Line Items]  
Schedule of Loss And Loss Expense Reserves And Subrogation Recoverable Table [Table Text Block] at June 30, 2021 and December 31, 2020:
June 30, 2021:December 31, 2020:
Balance Sheet Line Item
Claims and
Loss Expenses (1)
RecoveriesUnearned
Premium
Revenue		Gross Loss
and
Loss Expense
Reserves		Claims and
Loss Expenses		RecoveriesUnearned
Premium
Revenue		Gross Loss
and
Loss Expense
Reserves
Loss and loss expense reserves$1,881 $(180)$(59)$1,641 $2,060 $(229)$(72)$1,759 
Subrogation recoverable90 (2,188)— (2,097)100 (2,256)— (2,156)
Totals$1,971 $(2,368)$(59)$(456)$2,160 $(2,486)$(72)$(397)
(1)Includes loss and loss expense reserves for the specialty property and casualty business.
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 AssetsTotal
2021 (Six months)$19 $1 $20 
202234 3 37 
202331 3 34 
202428 3 31 
202526 3 28 
Thereafter205 22 228 
(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 and other intangible amortization periods are 7.4 years and 6.7 years, respectively.
Premiums Receivable by Risk Classification Code [Table Text Block] Below is the amortized cost basis of financial guarantee premium receivables by risk classification code and asset class as of June 30, 2021 and December 31, 2020:
Surveillance Categories as of June 30, 2021
Type of Guaranteed BondIIAIIIIIIVTotal
Public Finance:
Housing revenue$153 $4 $5 $— $— $162 
Other2 — — — — 2 
Total Public Finance155 4 5 — — 164 
Structured Finance:
Mortgage-backed and home equity2 — 1 3 13 19 
Structured insurance11 — — — — 11 
Student loan2 — 2 10 — 13 
Other7 — — — — 7 
Total Structured Finance21 — 2 12 13 49 
International:
Sovereign/sub-sovereign87 7 — 12 — 106 
Investor-owned and public utilities29 — — — — 29 
Other6 — — — — 6 
Total International122 7 — 12 — 141 
Total (1) (2)
$299 $11 $7 $24 $13 $355 
Surveillance Categories as of December 31, 2020
Type of Guaranteed BondIIAIIIIIIVTotal
Public Finance:
Housing revenue$155 $13 $— $— $— $168 
Other2 15 — — — 17 
Total Public Finance157 27 — — — 185 
Structured Finance:
Mortgage-backed and home equity3 — 1 3 15 22 
Structured insurance14 — — — — 14 
Student loan3 — 2 11 — 16 
Other7 — — — — 7 
Total Structured Finance27 — 3 14 15 59 
International:
Sovereign/sub-sovereign82 13 — 13 — 108 
Investor-owned and public utilities31 — — — — 31 
Other5 — — — — 5 
Total International118 13 — 13 — 144 
Total (2)
$302 $40 $3 $27 $15 $387 
(1)    Excludes specialty property and casualty premium receivables of $1.
(2)    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 June 30, 2021 and 2020:
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Beginning balance (1)
$13 $14 $17 $9 
Current period
provision (2)
(1)2 (5)7 
Write-offs of the allowance(1)— (1)— 
Recoveries of previously written-off amounts— — — — 
Ending balance$11 $16 $11 $16 
(1)At December 31, 2019, $9 of premiums receivable were deemed uncollectible as determined under prior GAAP rules.
(2)The three and six months ended June 30, 2020, includes $3 from the adoption of CECL.
Summary of Loss Reserve Roll-Forward, Net of Subrogation Recoverable and Reinsurance
Below is the loss and loss reserve expense roll-forward, net of subrogation recoverable and reinsurance, for the affected periods:
Six Months Ended June 30,20212020
Beginning gross loss and loss expense reserves$(397)$(482)
Reinsurance recoverable33 26 
Beginning balance of net loss and loss expense reserves(430)(508)
Losses and loss expenses (benefit):
Current year— 16 
Prior years
(18)116 
Total (1) (2)
(18)132 
Loss and loss expenses paid (recovered):
Current year— — 
Prior years38 61 
Total
38 61 
Foreign exchange effect
— — 
Ending net loss and loss expense reserves
(486)(437)
Reinsurance recoverable (3)
30 35 
Ending gross loss and loss expense reserves$(456)$(401)
(1)Total losses and loss expenses (benefit) includes $2 and $(11) for the six months ended June 30, 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 six months ended June 30, 2021 and 2020, was $10 and $(30), 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 $1 and $1 as of June 30, 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 June 30, 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 June 30, 2021 and December 31, 2020,was 1.5% and 1.1%, respectively.
Surveillance Categories as of June 30, 2021
IIAIIIIIIVVTotal
Number of policies40 27 20 16 134 5 242 
Remaining weighted-average contract period (in years) (1)
1014141513713
Gross insured contractual payments outstanding:
Principal$894 $508 $705 $1,389 $3,009 $40 $6,545 
Interest328 716 425 185 1,350 24 3,028 
Total$1,222 $1,224 $1,130 $1,574 $4,359 $65 $9,573 
Gross undiscounted claim liability$4 $13 $59 $559 $1,539 $65 $2,239 
Discount, gross claim liability— (1)(3)(114)(198)(4)(320)
Gross claim liability before all subrogation and before reinsurance
4 12 56 445 1,341 60 1,919 
Less:
Gross RMBS subrogation (2)
— — — — (1,742)— (1,742)
Discount, RMBS subrogation— — — — 2 — 2 
Discounted RMBS subrogation, before reinsurance
— — — — (1,741)— (1,741)
Less:
Gross other subrogation (3)
— (6)— (35)(601)(12)(654)
Discount, other subrogation— — — 2 23 2 27 
Discounted other subrogation, before reinsurance
— (6)— (33)(578)(10)(627)
Gross claim liability, net of all subrogation and discounts, before reinsurance
4 6 56 413 (977)50 (449)
Less: Unearned premium revenue(2)(4)(9)(15)(28)(1)(59)
Plus: Loss expense reserves2 — 1 4 45 — 52 
Gross loss and loss expense reserves$3 $2 $47 $402 $(960)$49 $(456)
Reinsurance recoverable reported on Balance Sheet (4)
$1 $1 $13 $23 $(8)$— $30 
(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 $30 related to future loss and loss expenses and $1 related to presented loss and loss expenses and subrogation.
Surveillance Categories as of December 31, 2020
IIAIIIIIIVVTotal
Number of policies40 25 15 15 132 5 232 
Remaining weighted-average contract period (in years) (1)
101881614714
Gross insured contractual payments outstanding:
Principal$842 $1,375 $595 $1,469 $3,246 $47 $7,573 
Interest279 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 reserves1 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:
Six Months Ended June 30,20212020
Discounted R&W subrogation (gross of reinsurance) at beginning of period$1,751 $1,727 
All other changes (1)
(10)30 
Discounted R&W subrogation (gross of reinsurance) at end of period$1,741 $1,757 
(1)All other changes which may impact RMBS R&W subrogation recoveries include changes in actual or projected collateral performance, changes in the creditworthiness of a sponsor and/or the projected timing of recoveries.