- Total revenue from continuing P&C operations increased
27% for the quarter to $63 million
- Total P&C premium production increased 70% for the
quarter to $318 million
Ambac Financial Group, Inc. (NYSE: AMBC) ("Ambac" or "AFG"), an
insurance holding company, today reported its results for the First
Quarter 2025.
First Quarter 2025 vs. First Quarter 2024 Segment
Highlights
- Insurance Distribution ("Cirrata")
- Total revenue grew to $41 million for the quarter, an increase
of 129%
- Net loss to Shareholders of $(2) million for the quarter, down
145%, with a (4.3)% margin vs. 21.2%
- Adjusted EBITDA of $12 million for the quarter, up 136%, with a
29.5% margin vs. 28.7%
- Adjusted EBITDA to Shareholders of $7 million for the quarter,
up 69%, with a 17.3% margin vs. 23.5%
- Specialty P&C Insurance ("Everspan")
- Loss ratio of 66.9% improved by -880 bps and Combined ratio of
102.1% up 370 bps
- Net income to Shareholders of over $1 million for the quarter,
down slightly
- Adjusted EBITDA to Shareholders of under $2 million for the
quarter, down slightly
Claude LeBlanc, President and Chief Executive Officer, stated,
"Our P&C business had a strong start to the year, with premium
production up 70% to $318 million and revenue up 27% to $63
million, both compared to the first quarter of 2024, bolstered by
our acquisition of Beat. Our increasingly diversified portfolio is
being built for long-term growth and to withstand market
cyclicality, such as the headwinds experienced in property and ESL
this quarter. We are positioned to continue growing our business by
focusing on specialty niches, and I am encouraged by the early
indications from the MGAs we launched last year, a few of which are
already profitable and all of which are trending towards consistent
profitability."
LeBlanc continued, “In addition, as previously announced, we
have completed all of our pre-closing conditions related to the
sale of our Legacy business, which remains subject only to
Wisconsin regulatory approval. We eagerly await the close of this
transaction as we look ahead to our future as a leading specialty
P&C franchise."
Ambac's First Quarter 2025
Summary Results
Three months ended March
31,
($ in thousands, except per share
data)1
2025
2024
% Change
Total revenues from continuing
operations
62,756
49,551
27%
Total expenses from continuing
operations
77,863
52,790
47%
Pretax income (loss) from continuing
operations
(15,107
)
(3,239
)
366%
Provision (benefit) for income taxes from
continuing operations
(617
)
130
(575)%
Net income (loss) from continuing
operations
(14,490
)
(3,369
)
330%
Net income (loss) from continuing
operations attributable to Ambac shareholders
(16,144
)
(4,070
)
297%
Net income (loss) from discontinued
operations
(30,247
)
24,140
(225)%
Net income (loss) attributable to Ambac
shareholders
(46,391
)
20,070
(331)%
Net income (loss) attributable to common
stockholders per diluted share 3
$
(1.22
)
$
0.44
(377)%
Non-GAAP
EBITDA to shareholders 2
(5,477
)
(1,627
)
237%
Adjusted EBITDA to shareholders2
(1,287
)
384
(435)%
Adjusted net income (loss) attributable to
shareholders
(6,037
)
(329
)
1735%
Per Share
Adjusted net income (loss) to shareholders
per diluted share 2
$
(0.13
)
$
(0.01
)
NM
Adjusted EBITDA to shareholders per
diluted share2
$
(0.03
)
$
0.01
(400)%
Weighted-average diluted shares
outstanding (in millions)
47,313
45,827
(1)
Some financial data in this press release
may not add up due to rounding
(2)
See Non-GAAP Financial Data section of
this press release for further information
(3)
Per diluted share includes the impact of
adjusting redeemable noncontrolling interests to current redemption
value
First Quarter 2025 Summary*
Total revenue from continuing operations for the first quarter
of 2025 was $63 million, an increase of 27% compared to the
$50 million in the same prior-year period. This increase was
primarily due to the inclusion of Beat Capital, which more than
offset a managed reduction to earned premium at Everspan following
last year's decision to exit several programs. Organic growth at
Cirrata met headwinds in certain A&H lines, which more than
offset organic expansion across other programs.
Total expenses from continuing operations for the first quarter
of 2025 were $78 million, an increase of 48% compared to the $53
million in the same prior-year period. The increase was primarily
due to an increase in G&A expenses from the inclusion of Beat,
professional and advisor fees related to transactions, and
intangible amortization and interest expense, both of which relate
to the Beat acquisition. These increases more than offset the lower
losses and loss adjustment expenses at Everspan from the exit of
several retained programs.
Net loss from continuing operations to Ambac shareholders for
the first quarter of 2025 increased by $12 million to $(16) million
compared to the $(4) million in the same prior-year period. The
increase was driven by increased intangible amortization and
interest expense related to the acquisition of Beat.
Adjusted EBITDA from continuing operations to Ambac shareholders
for the first quarter of 2025 was $(1) million compared to $0
million in the same prior-year period. For the quarter, Cirrata's
$3 million increase in Adjusted EBITDA over the same prior-year
period was more than offset by elevated holding company expenses,
which included an allocation adjustment related to discontinued
operations, a portion of which will unwind in connection with the
closing of the sale of the Legacy business, and a slight
contraction at Everspan. For the quarter, the consolidated Adjusted
EBITDA margin, prior to any reduction for non-controlling
interests, was 5.9% compared to 2.6% in the same prior-year
period.
* For definition of each non-GAAP measures referred to above, as
well as reconciliation of such non-GAAP measures to their most
directly comparable GAAP measures, see "Non-GAAP Financial
Measures" below.
Earnings Call and Webcast
On May 13, 2025, at 8:30am ET, Claude LeBlanc, President and
Chief Executive Officer, and David Trick, Executive Vice President
and Chief Financial Officer, will discuss Ambac's first quarter
2025 results during a conference call. A live audio webcast of the
call will be available through the Investor Relations section of
Ambac’s website,
https://ambac.com/investor-relations/events-and-presentations/.
Participants may also listen via telephone by dialing (877)
407-9716 (Domestic) or (201) 493-6779 (International).
The webcast will be archived on Ambac's website. A replay of the
call will be available through May 27, 2025, and can be accessed by
dialing (Domestic) (844) 512-2921 or (International) (412)
317-6671; and using ID#13753308
Additional information is included in an operating supplement
and presentations at Ambac's website at www.ambac.com.
Results of Operations by Segment
Insurance Distribution Segment
Three Months Ended March
31,
($ in thousands)
2025
2024
% Change
Total revenues
$
40,998
$
17,865
129%
Pretax income (loss)
$
(2,243
)
$
3,973
(156)%
Pretax income (loss) to shareholders
$
(3,897
)
$
3,270
(219)%
EBITDA to shareholders
$
7,083
$
4,202
69%
Adjusted EBITDA
$
12,112
$
5,122
136%
Adjusted EBITDA to shareholders
$
7,112
$
4,202
69%
Pretax income margin to shareholders1
(5.5
)%
22.2
%
(1248) bps
Adjusted EBITDA margin to
shareholders2
17.3
%
23.5
%
(264) bps
Organic Growth
(2.1
)%
7.7
%
(1)
Represents Pretax income divided by total
revenues
(2)
See Non-GAAP Financial Data section of
this press release for further information
Specialty Property & Casualty Insurance
Segment
Three Months Ended March
31,
($ in thousands)
2025
2024
% Change
Gross premium written
$
86,915
$
96,422
(10)%
Net premiums written
$
18,005
$
26,247
(31)%
Net premiums earned
$
15,678
$
25,579
(39)%
Total revenue
$
21,171
$
29,542
(28)%
Net income (loss) from continuing
operations
$
1,425
$
1,715
(17)%
Adjusted EBITDA to shareholders
$
1,589
$
1,872
(15)%
Loss Ratio
66.9
%
75.7
%
-880 bps
Expense Ratio
35.2
%
22.7
%
1250 bps
Combined Ratio
102.1
%
98.4
%
370 bps
(1)
See Non-GAAP Financial Data section of
this press release for further information
AFG Corporate (holding company only)
AFG on a standalone basis, excluding its ownership interests in
its Specialty P&C Insurance, Insurance Distribution, and Legacy
Financial Guarantee subsidiaries, had net assets of $104 million as
of March 31, 2025. Assets included cash and liquid securities of
$54 million and other investments of $29 million.
Capital Activity
During the first quarter of 2025 we repurchased 264,791 shares
at an average price of $11.79 per share. There is approximately
$35.2 million remaining on the current repurchase
authorization.
Consolidated Ambac Financial Group, Inc. Stockholders' Equity
and NCI Impact to EPS
Stockholders’ equity at March 31, 2025, was $852 million, or
$18.36 per share compared to $857 million or $18.43 per share as of
December 31, 2024. The net loss attributable to common shareholders
of $(46) million was offset by net unrealized investment gains of
$19 million and foreign exchange translation gains of $36
million.
Calculation of Earnings Per Share
Diluted net income per share is computed by dividing net income
attributable to shareholders, including adjustments to the
redemption value of redeemable noncontrolling interests, by the
basic weighted-average shares outstanding plus all potentially
dilutive common shares outstanding during the period. The following
table provides a reconciliation of net income attributable to
shareholders to the numerator in the diluted earnings per share
calculation, together with the resulting earnings per share
amounts:
($ in thousands, except share
data)
Three Months Ended March
31,
2025
2024
Net income (loss) from continuing
operations attributable to shareholders
$
(16,144
)
$
(4,070
)
Adjustment for Redeemable NCI
$
(11,183
)
$
53
Numerator of diluted EPS
$
(27,327
)
$
(4,017
)
Per Share — Diluted
$
(0.58
)
$
(0.09
)
Net income (loss) attributable to Ambac
shareholders
$
(46,391
)
$
20,070
Adjustment for Redeemable NCI
(11,183
)
53
Numerator of diluted EPS
$
(57,574
)
$
20,123
Per Share — Diluted
$
(1.22
)
$
0.44
WASO-Diluted
47,313
45,827
AMBAC FINANCIAL GROUP, INC.
AND SUBSIDIARIES Consolidated Statements of Income (Loss)
(Unaudited)
Three Months Ended
March 31,
($ in thousands, except share
data)
2025
2024
Revenues:
Net premiums earned
$
15,678
$
25,579
Commission income
36,771
17,729
Servicing and other fees
4,964
—
Program fees
3,652
2,567
Net investment income
2,815
3,640
Other revenue
(1,124
)
36
Total revenues and other income
62,756
49,551
Expenses:
Losses and loss adjustment expenses
10,496
19,355
Policy acquisition costs
3,841
4,424
Commission expense
10,365
9,822
General and administrative expenses
38,531
17,575
Intangible amortization and
depreciation
9,176
1,614
Interest expense
5,454
—
Total expenses
77,863
52,790
Pretax income (loss) from continuing
operations
(15,107
)
(3,239
)
Provision (benefit) for income taxes from
continuing operations
(617
)
130
Net income (loss) from continuing
operations
$
(14,490
)
$
(3,369
)
Net income (loss) from discontinued
operations
(30,247
)
24,140
Net income (loss)
(44,737
)
20,771
Less: net (gain) loss attributable to
noncontrolling interest
(1,654
)
(701
)
Net income (loss) attributable to Ambac
shareholders
$
(46,391
)
$
20,070
Net income (loss) from continuing
operations per share attributable to Ambac shareholders
Basic
$
(0.58
)
$
(0.09
)
Diluted
$
(0.58
)
$
(0.09
)
Net income (loss) from discontinued
operations per share attributable to Ambac shareholders
Basic
$
(0.64
)
$
0.53
Diluted
$
(0.64
)
$
0.53
Net income (loss) per share
attributable to Ambac shareholders
Basic
$
(1.22
)
$
0.44
Diluted
$
(1.22
)
$
0.44
Weighted-average number of common
shares outstanding:
Basic
47,313,012
45,827,076
Diluted
47,313,012
45,827,076
AMBAC FINANCIAL GROUP, INC.
AND SUBSIDIARIES Consolidated Balance Sheets
(Unaudited)
($ in thousands, except share
data)
March 31, 2025
December 31,
2024
Assets:
Investments:
Fixed maturity securities, at fair value
(amortized cost: $164,688 and $162,124)
$
161,569
$
157,020
Short-term investments, at fair value
(amortized cost: $101,604 and $127,588)
101,610
127,601
Other investments (includes $7,420 and
$7,499 at fair value)
28,214
28,294
Total investments (net of allowance for
credit losses of $0 and $0)
291,393
312,915
Cash and cash equivalents
34,064
29,606
Restricted cash
17,596
17,669
Cash and cash equivalents (including
$17,596 and $17,669 of restricted cash)
51,660
47,275
Premium receivables (net of allowance for
credit losses of $142 and $142)
64,563
57,222
Commission and fees receivable
55,377
55,377
Deferred acquisition costs
9,615
8,572
Reinsurance recoverable on paid and unpaid
losses (net of allowance for credit losses of $100 and $100)
351,110
306,191
Deferred ceded premium
144,914
148,300
Intangible assets, less accumulated
amortization
345,061
344,775
Goodwill
429,314
418,234
Other assets
107,829
92,317
Assets held-for-sale
6,392,004
6,267,200
Total assets
$
8,253,282
$
8,058,378
Liabilities and Stockholders’
Equity:
Liabilities:
Unearned premiums
$
181,387
$
182,446
Loss and loss adjustment expense
reserves
373,105
349,062
Ceded premiums payable
81,358
53,002
Deferred program fees and reinsurance
commissions
7,176
7,500
Deferred taxes
69,742
70,135
Short-term debt
150,000
150,000
Accrued interest payable
2,695
2,560
Other liabilities
91,429
89,036
Liabilities held-for-sale
5,887,685
5,887,685
Total liabilities
7,041,817
6,862,857
Redeemable noncontrolling interest
185,417
140,860
Stockholders’ equity:
Preferred stock, par value $0.01 per
share; 20,000,000 shares authorized shares; issued and outstanding
shares—none
—
—
Common stock, par value $0.01 per share;
130,000,000 shares authorized; issued shares: 48,875,167 and
48,875,167
489
489
Additional paid-in capital
333,356
331,007
Accumulated other comprehensive income
(loss)
(133,168
)
(188,436
)
Retained earnings
681,489
742,185
Treasury stock, shares at cost: 2,447,746
and 2,368,194
(29,945
)
(28,339
)
Total Ambac Financial Group, Inc.
stockholders’ equity
852,221
856,906
Nonredeemable noncontrolling interest
173,827
197,755
Total stockholders’ equity
1,026,048
1,054,661
Total liabilities, redeemable
noncontrolling interest and stockholders’ equity
$
8,253,282
$
8,058,378
Non-GAAP Financial Data
In addition to reporting the Company’s quarterly financial
results in accordance with GAAP, the Company is reporting non-GAAP
financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDA
Margin, Organic Revenue Growth Rate (Insurance Distribution segment
only), Adjusted Net Income and Adjusted Net Income Margin. These
amounts are derived from our consolidated financial information,
but are not presented in our consolidated financial results.
We present non-GAAP supplemental financial information because
we believe such information is of interest to the investment
community, and that it provides greater transparency and enhanced
visibility into the underlying drivers and performance of our
businesses on a basis that may not be otherwise apparent on a GAAP
basis. We view these non-GAAP financial measures as important
indicators when assessing and evaluating our performance on a
segmented and consolidated basis and they are presented to improve
the comparability of our results between periods by eliminating the
impact of the items that may not be representative of our core
operating performance. These non-GAAP financial measures are not
substitutes for the Company’s GAAP reporting, should not be viewed
in isolation and may differ from similar reporting provided by
other companies, which may define non-GAAP measures
differently.
The following paragraphs define each non-GAAP financial measure.
A tabular reconciliation of the non-GAAP financial measure and the
most comparable GAAP financial measure is also presented below.
Non-GAAP Financial Measures
Organic Revenue Growth & Rate (Insurance Distribution
Only.) — Organic revenue is based on commissions and fees for
the relevant period by excluding (i) the first twelve months of
commissions and fees generated from acquisitions and (ii)
commissions and fees from divestitures (iii) and other items such
as contingent commissions and the impact of changes in foreign
exchange rates.
Organic revenue growth is the change in organic revenue
period-to-period, with prior period results adjusted to (i) include
commissions and fees that were excluded from organic revenue in the
prior period and reached the twelve-month owned mark in the current
period, and (ii) exclude commissions and fees related to
divestitures from organic revenue.
Total Specialty P&C Insurance Production Specialty P&C
Insurance production, which includes gross premiums written by
Ambac's Specialty P&C Insurance segment and premiums placed by
the Insurance Distribution segment. Specialty P&C Insurance
revenues are dependent on gross premiums written, as specialty
program insurance companies earn premiums based on the portion of
gross premiums written retained (i.e. net premiums written) and
fees on gross premiums written that are ceded to reinsurers.
Insurance Distribution revenues are dependent on premium volume, as
Managing General Agents/Underwriters and brokers receive
commissions based on the amount of premiums placed (i.e. gross
premiums written on behalf of insurance carriers) with insurance
carriers.
EBITDA — EBITDA is net
income (loss) before interest expense, income taxes, depreciation
and amortization of intangible assets.
Adjusted EBITDA and Adjusted EBITDA Margin — We define
Adjusted EBITDA as net income (loss) from continuing operations
before interest expense, income taxes, depreciation, amortization
of intangible assets, change in fair value of contingent
consideration and certain items of income and expense, including
share-based compensation expense, acquisition and integration
related expenses, severance, and other exceptional or non-recurring
items, including those related to raising capital. We believe that
adjusted EBITDA is an appropriate measure of operating performance
because it eliminates the impact of income and expenses that may
obfuscate business performance, and that the presentation of this
measure enhances an investor's understanding of our financial
performance.
Adjusted Net Income and Adjusted Net Income Margin — We
define Adjusted net income as net income (loss) from continuing
operations attributable to Ambac adjusted for amortization of
intangible assets, change in fair value of contingent consideration
and certain items of income and expense, including share-based
compensation expense, acquisition and integration related expenses,
severance and non-recurring income and loss items that, in the
opinion of management, significantly affect the period-over-period
assessment of operating results, and the related tax effect of
those adjustments. Per share amounts exclude any impact of
revaluing non-controlling interests as otherwise reported under
GAAP earnings per share. We believe that adjusted net income is an
appropriate measure of operating performance because it eliminates
the impact of income and expenses that may obfuscate business
performance.
Results of Operations by Segment (Continued)
Three Months Ended March 31,
2025
Specialty Property &
Casualty Insurance
Insurance Distribution
Corporate & Other
Consolidated
($ in
thousands)
Gross premiums written
$
86,915
$
86,915
Net premiums written
18,005
18,005
Total revenues from Continuing
Operations
21,171
40,998
587
62,756
Total expenses from Continuing
Operations
19,668
43,241
14,954
77,863
Pretax income (loss)
1,503
(2,243
)
(14,367
)
(15,107
)
Provision (benefit) for income taxes
78
(500
)
(195
)
(617
)
Net income (loss) from Continuing
Operations
$
1,425
$
(1,743
)
$
(14,172
)
$
(14,490
)
Adjustments to EBITDA
Add: Interest expense
$
5,454
$
5,454
Add: Income tax expense
78
(500
)
(195
)
(617
)
Add: Depreciation
—
109
305
414
Add: Intangible amortization
8,763
8,763
EBITDA from Continuing
Operations
$
1,503
$
12,083
$
(14,063
)
$
(477
)
EBITDA from Continuing Operations
attributable to
Ambac shareholders
$
1,503
$
7,083
$
(14,063
)
$
(5,477
)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related
expenses
$
—
$
—
$
682
$
682
Add: Equity-based compensation expense
86
—
1,574
1,660
Add: Severance and restructuring
expense
—
29
1,819
1,848
Adjusted EBITDA from Continuing
Operations
1,589
12,112
(9,988
)
3,713
Adjusted EBITDA from Continuing
Operations attributable to
Ambac shareholders
$
1,589
$
7,112
$
(9,988
)
$
(1,287
)
Net income (loss) (Continuing
Operations)
$
1,425
$
(1,743
)
$
(14,172
)
$
(14,490
)
Adjustments:
Add: Acquisition and integration related
expenses
—
—
682
682
Add: Intangible amortization
—
8,763
—
8,763
Add: Equity-based compensation expense
86
—
1,574
1,660
Add: Severance and restructuring
expense
—
29
1,819
1,848
Add: Other non-operating (income)
losses
—
—
—
—
Adjusted net income (loss) before tax and
NCI
1,511
7,049
(10,097
)
(1,537
)
Income tax effects
—
—
—
—
Adjusted net income (loss) before NCI
1,511
7,049
(10,097
)
(1,537
)
Net (income) loss attributable to
noncontrolling interest
—
(4,500
)
—
(4,500
)
Adjusted net income (loss) attributable
to common shareholders
$
1,511
$
2,549
$
(10,097
)
$
(6,037
)
Net income (loss) margin
6.7
%
(4.3
)%
NM
(23.1
)%
Adjusted EBITDA Margin
7.5
%
29.5
%
NM
5.9
%
Adjusted EBITDA Margin to Ambac
shareholders
7.5
%
17.3
%
NM
(2.1
)%
Adjusted Net income (loss) after NCI
margin
7.1
%
23.0
%
NM
(2.9
)%
Three Months Ended March 31,
2024
Specialty Property &
Casualty Insurance
Insurance Distribution
Corporate & Other
Consolidated
($ in
thousands)
Gross premiums written
$
96,422
$
96,422
Net premiums written
26,247
26,247
Total revenues from Continuing
Operations
29,542
17,865
2,145
49,551
Total expenses from Continuing
Operations
27,721
13,892
11,177
52,790
Pretax income (loss)
1,821
3,973
(9,032
)
(3,239
)
Provision (benefit) for income taxes
106
118
(94
)
130
Net income (loss) from Continuing
Operations
$
1,715
$
3,855
$
(8,938
)
$
(3,369
)
Adjustments to EBITDA
Add: Interest expense
$
—
$
—
Add: Income tax expense
106
118
(94
)
130
Add: Depreciation
—
10
465
475
Add: Intangible amortization
1,139
1,139
EBITDA from Continuing
Operations
$
1,821
$
5,122
$
(8,567
)
$
(1,625
)
EBITDA from Continuing Operations
attributable to
Ambac shareholders
$
1,872
$
4,202
$
(5,689
)
$
1,304
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related
expenses
$
—
$
—
$
569
$
569
Add: Equity-based compensation expense
51
—
2,129
2,180
Add: Severance and restructuring
expense
—
—
134
134
Add: Other non-operating (income)
losses
—
—
48
48
Adjusted EBITDA from Continuing
Operations
1,872
5,122
(5,689
)
1,304
Adjusted EBITDA from Continuing
Operations attributable to
Ambac shareholders
$
1,872
$
4,202
$
(5,689
)
$
384
Net income (loss) (Continuing
Operations)
$
1,715
$
3,782
$
(8,976
)
$
(3,479
)
Adjustments:
Add: Acquisition and integration related
expenses
—
—
569
569
Add: Intangible amortization
—
1,139
—
1,139
Add: Equity-based compensation expense
51
—
2,129
2,180
Add: Severance and restructuring
expense
—
—
134
134
Add: Other non-operating (income)
losses
—
—
48
48
Adjusted net income (loss) before tax and
NCI
1,766
4,921
(6,096
)
591
Income tax effects
—
—
—
—
Adjusted net income (loss) before NCI
1,766
4,921
(6,096
)
591
Net (income) loss attributable to
noncontrolling interest
—
(920
)
—
(920
)
Adjusted net income (loss) attributable
to common shareholders
$
1,766
$
4,001
$
(6,096
)
$
(329
)
Net income (loss) margin
5.8
%
21.2
%
NM
(7.0
)%
Adjusted EBITDA Margin
6.3
%
28.7
%
NM
2.6
%
Adjusted EBITDA Margin to Ambac
shareholders
6.3
%
23.5
%
NM
0.8
%
Adjusted Net income (loss) after NCI
margin
6.0
%
22.4
%
NM
(0.7
)%
Organic Growth
Three Months Ended December
31,
($ in thousands)
2025
2024
% Growth
Total Insurance Distribution revenue
(1)
$
40,998
$
17,865
129%
Less: Acquired revenues
(19,971
)
Less: Profit commission and contingent
commission income
(4,691
)
(1,182
)
Total Organic Revenue & Growth
Percentage
16,336
16,683
(2.1)%
(1)
Total Insurance Distribution revenue
includes investment income
Total Specialty P&C Insurance Production
Specialty P&C Insurance production, which includes gross
premiums written by Ambac's Specialty P&C Insurance segment and
premiums placed by the Insurance Distribution segment.
Three Months Ended March
31,
($ in thousands)
2025
2024
% Change
Specialty Property & Casualty
Insurance Gross Premiums Written
$
86,915
$
96,422
(10)%
Insurance Distribution Premiums Placed
230,606
90,096
156%
Specialty P&C Insurance Production
$
317,521
$
186,518
70%
About Ambac
Ambac Financial Group, Inc. (“Ambac” or “AFG”) is an insurance
holding company headquartered in New York City. Ambac’s core
business is a growing specialty P&C distribution and
underwriting platform. Ambac also has a legacy financial guarantee
business in run-off which we have agreed to sell to funds managed
by Oaktree Capital Management pending regulatory approval. Ambac’s
common stock trades on the New York Stock Exchange under the symbol
“AMBC”. Ambac is committed to providing timely and accurate
information to the investing public, consistent with our legal and
regulatory obligations. To that end, we use our website to convey
information about our businesses, including the anticipated release
of quarterly financial results, quarterly financial, statistical
and business-related information. For more information, please go
to www.ambac.com.
The Amended and Restated Certificate of Incorporation of Ambac
contains substantial restrictions on the ability to transfer
Ambac’s common stock. Subject to limited exceptions, any attempted
transfer of common stock shall be prohibited and void to the extent
that, as a result of such transfer (or any series of transfers of
which such transfer is a part), any person or group of persons
shall become a holder of 5% or more of Ambac’s common stock or a
holder of 5% or more of Ambac’s common stock increases its
ownership interest.
Forward-Looking Statements
In this press release, statements that may constitute
“forward-looking statements” within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Words such as “estimate,” “project,” “plan,” “believe,”
“anticipate,” “intend,” “planned,” “potential” and similar
expressions, or future or conditional verbs such as “will,”
“should,” “would,” “could,” and “may,” or the negative of those
expressions or verbs, identify forward-looking statements. We
caution readers that these statements are not guarantees of future
performance. Forward-looking statements are not historical facts,
but instead represent only our beliefs regarding future events,
which may by their nature be inherently uncertain and some of which
may be outside our control. These statements may relate to plans
and objectives with respect to the future, among other things which
may change. We are alerting you to the possibility that our actual
results may differ, possibly materially, from the expected
objectives or anticipated results that may be suggested, expressed
or implied by these forward-looking statements. Important factors
that could cause our results to differ, possibly materially, from
those indicated in the forward-looking statements include, among
others, those discussed under “Risk Factors” in our most recent SEC
filed quarterly or annual report.
Any or all of management’s forward-looking statements here or in
other publications may turn out to be incorrect and are based on
management’s current belief or opinions. Ambac Financial Group’s
(“AFG”) and its subsidiaries’ (collectively, “Ambac” or the
“Company”) actual results may vary materially, and there are no
guarantees about the performance of Ambac’s securities. Among
events, risks, uncertainties or factors that could cause actual
results to differ materially are: (1) the high degree of volatility
in the price of AFG’s common stock; (2) failure to consummate the
proposed sale of all of the common stock of Ambac Assurance
Corporation (“AAC”) and the transactions contemplated by the
related stock purchase agreement (the “Sale Transactions”) in a
timely manner or at all; (3) disruptions from the proposed Sale
Transactions, including from litigation, that may harm Ambac’s
business, including current plans and operations; (4) potential
adverse reactions or changes to business relationships resulting
from the announcement or completion of the proposed Sale
Transactions; (5) uncertainty concerning the Company’s ability to
achieve value for holders of its securities from the specialty
property and casualty insurance business, the insurance
distribution business, or related businesses; (6) inadequacy of
reserves established for losses and loss expenses and the
possibility that changes in loss reserves may result in further
volatility of earnings or financial results; (7) risks historically
reported by the Company with respect to the legacy financial
guarantee business, which may continue to affect the Company if the
Sale Transactions are not consummated; (8) credit risk throughout
Ambac’s business, including but not limited to exposures to
reinsurers and insurance distribution partners; (9) the Company’s
inability to generate the significant amount of cash needed to
service its debt and financial obligations, and its inability to
refinance its indebtedness; (10) the Company’s substantial
indebtedness could adversely affect the Company’s financial
condition and operating flexibility; (11) the Company may not be
able to obtain financing, refinance its outstanding indebtedness,
or raise capital on acceptable terms or at all due to its
substantial indebtedness and financial condition; (12) greater than
expected underwriting losses in the Company’s specialty property
and casualty insurance business; (13) failure of specialty
insurance program partners to properly market, underwrite or
administer policies; (14) inability to obtain reinsurance coverage
or charge rates for insurance on expected terms; (15) loss of key
relationships for production of business in specialty property and
casualty and insurance distribution businesses or the inability to
secure such additional relationships to produce expected results;
(16) the impact of catastrophic public health, environmental or
natural events, or global or regional conflicts; (17) the risk that
the Company’s risk management policies and practices do not
anticipate certain risks and/or the magnitude of potential for
loss; (18) restrictive covenants in agreements and instruments that
impair Ambac’s ability to pursue or achieve its business
strategies; (19) disagreements or disputes with the Company’s
insurance regulators; (20) failure of a financial institution in
which we maintain cash and investment accounts; (21) adverse
impacts from changes in prevailing interest rates; (22) events or
circumstances that result in the impairment of our intangible
assets and/or goodwill that was recorded in connection with Ambac’s
acquisitions; (23) the risk of litigation, regulatory inquiries,
investigations, claims or proceedings, and the risk of adverse
outcomes in connection therewith; (24) the Company’s ability to
adapt to the rapid pace of regulatory change; (25) actions of
stakeholders whose interests are not aligned with broader interests
of Ambac's stockholders; (26) system security risks, data
protection breaches and cyber attacks; (27) failures in services or
products provided by third parties; (28) political developments
that disrupt the economies where the Company has insured exposures
or the markets in which our insurance programs operate; (29) our
inability to attract and retain qualified executives, senior
managers and other employees, or the loss of such personnel; (30)
fluctuations in foreign currency exchange rates; (31) failure to
realize our business expansion plans, including failure to
effectively onboard new program partners, or failure of such plans
to create value; (32) greater competition for our specialty
property and casualty insurance business and/or our insurance
distribution business; (33) loss or lowering of the AM Best rating
for our property and casualty insurance company subsidiaries; (34)
disintermediation within the insurance industry or greater
competition from technology-based insurance solutions or
non-traditional insurance markets; (35) adverse effects of market
cycles in the property and casualty insurance industry; (36)
variations in commission income resulting from timing of policy
renewals and the net effect of new and lost business production;
(37) variations in contingent commissions resulting from the
effects insurance losses; (38) reliance on a limited number of
counterparties to produce revenue in our specialty property and
casualty insurance and insurance distribution businesses; (39)
changes in law or in the functioning of the healthcare market that
impair the business model of our accident and health managing
general underwriter; (40) difficulties in identifying appropriate
acquisition or investment targets, properly evaluating the business
and prospects of acquired businesses, businesses in which we
invest, or targets, integrating acquired businesses into our
business or failures to realize expected synergies from
acquisitions or new business investments; (41) failure to realize
expected benefits from investments in technology; (42) harmful acts
and omissions of our business counterparts; and (43) other risks
and uncertainties that have not been identified at this time.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250512144340/en/
Charles J. Sebaski Managing Director, Investor Relations (212)
208-3222 csebaski@ambac.com
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