UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-10777 AMBAC FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) (State of incorporation) Delaware 13-3621676 (I.R.S. employer identification no.) One Wo ...

Ambac Reports First Quarter 2025 Results NEW YORK, NY, May 12, 2025 (BUSINESS WIRE) -- 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 Exhibit 99.1 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 compa ...

Core Viewpoint - Ambac Financial Group, Inc. (NYSE: AMBC) is currently trading at a substantial undervalue following a reported loss from the disposal of its legacy financial guarantee business, with expectations of receiving close to $420 million from the sale of these business units [1]. Company Summary - The company has reported a loss due to the disposal of its legacy financial guarantee business [1]. - If the company successfully sells these business units, it is projected to receive approximately $420 million [1]. Investment Strategy - The analysis emphasizes a focus on value investments, particularly in companies trading at around 10 times earnings and offering dividend yields [1]. - The research primarily targets small-cap and mid-cap companies across various regions including the United States, Canada, South America, the UK, France, and Germany [1].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 1-10777 AMBAC FINANCIAL GROUP, INC. (Exact name of Registrant as specified in its charter) | Delaware | | 13-3621676 | | --- | --- | --- | | (State of incorporation) ...

Group 1 - Ambac Financial Group (NYSE: AMBC) has shown material improvements that are expected to enhance its balance sheet and reduce risk [1] - The investment approach focuses on long-term ownership rather than short-term price predictions, emphasizing valuations over target prices [1] - The analyst has shifted from a broader range of ratings to a simplified approach of "Buy or Don't Buy," with future articles likely to reflect either Buy or Hold recommendations [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article expresses the analyst's personal opinions and is not influenced by any business relationships with the companies discussed [2]

Financial Data and Key Metrics Changes - Ambac reported a net loss of $548 million or $10.23 per diluted share for Q4 2024, compared to a net loss of $16 million or $0.24 per diluted share in Q4 2023 [28] - Consolidated adjusted net loss was $6 million or $0.12 per diluted share for Q4 2024, compared to adjusted net income of $4 million or $0.10 per diluted share in Q4 2023 [30] - The company recorded a $570 million loss on the sale of its legacy financial guarantee business [23] Business Line Data and Key Metrics Changes - The P&C business generated nearly $900 million in premiums, up 74% from 2023, and produced $236 million in revenue, up 89% from the prior year [7] - Cirrata generated nearly $100 million in revenue for 2024, up 93%, and earned approximately $20 million of adjusted EBITDA [15] - Everspan's gross premium written grew to over $380 million, up 40% from the prior year, with a combined ratio of 101.6%, improving nearly 500 basis points over 2023 [20][21] Market Data and Key Metrics Changes - The overall E&S market continues to perform well, with high-single to double-digit rate increases in U.S. casualty lines [12] - The property market showed some softening in Q4, but terms and conditions have held [13] - Professional and financial lines are experiencing softness, particularly in large account and public market D&O [14] Company Strategy and Development Direction - The company is focused on the future growth of its Specialty P&C business and delivering value for shareholders [11] - Ambac aims to achieve strong organic growth and generate $80 million to $90 million of adjusted EBITDA to common shareholders by 2028 [44] - The acquisition of Beat is expected to deliver strong organic growth and enhance the distribution platform [8] Management's Comments on Operating Environment and Future Outlook - Management noted that the areas of softening in the market, such as Employer Stop Loss and short-term medical, may stabilize in the near future [50] - The focus remains on profitability for Everspan, with effective loss ratios in the mid-60s aligning with long-term goals [55] - Management expressed optimism about the prospects for Ambac's future, particularly following the separation from the legacy financial guarantee business [43] Other Important Information - The company has substantially completed the separation of its legacy and P&C businesses, preparing for the close of the legacy sale [11] - Cirrata's premiums increased by 309% to $205 million, with total revenue rising by 257% to $44 million compared to Q4 2023 [31] Q&A Session Summary Question: Distribution business performance and outlook - Management indicated that softening in Employer Stop Loss and short-term medical is a macro trend, but stabilization is expected [50][51] Question: Sustainability of Everspan's combined ratio - Management stated that while there is variability, the performance aligns with long-term objectives, aiming for effective loss ratios in the mid-60s [55][56]

Financial Data and Key Metrics Changes - Ambac reported a consolidated net loss of $548 million or $10.23 per diluted share for Q4 2024, compared to a net loss of $16 million or $0.24 per diluted share in Q4 2023 [28] - The consolidated adjusted net loss was $6 million or $0.12 per diluted share for Q4 2024, compared to adjusted net income of $4 million or $0.10 per diluted share in Q4 2023 [30] - The company recorded a $570 million loss on the sale of its legacy financial guarantee business, now reported as discontinued operations [23] Business Line Data and Key Metrics Changes - The P&C business generated nearly $900 million in premiums, up 74% from 2023, and produced $236 million in revenue, an increase of 89% from the prior year [7] - Cirrata generated nearly $100 million in revenue for 2024, up 93%, and earned approximately $20 million of adjusted EBITDA [15] - Everspan's gross premium written grew to over $380 million, up 40% from the prior year, with a combined ratio of 101.6%, improving nearly 500 basis points over 2023 [20][39] Market Data and Key Metrics Changes - The overall E&S market continues to perform well, with high-single to double-digit rate increases in U.S. casualty lines [12] - The property market showed some softening in Q4 2024, but terms and conditions have held [13] - Professional and financial lines are experiencing softness, particularly in large account and public market D&O [14] Company Strategy and Development Direction - The company is focused on the future growth of its Specialty P&C business and delivering value for shareholders [11] - Ambac aims to achieve strong organic growth and generate $80 million to $90 million of adjusted EBITDA to common shareholders by 2028 [44] - The acquisition of Beat is expected to deliver strong organic growth and enhance the distribution platform [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in the Employer Stop Loss and short-term medical segments, despite current challenges [50][51] - The focus remains on profitability for Everspan, with effective loss ratios in the mid-60s aligning with long-term goals [55] - Management is excited about the prospects of Ambac's future and the unique value proposition it offers in the specialty MGA space [43] Other Important Information - The company has committed third-party capacity of more than $1.5 billion for 2025, with over 60% of that support being long-term [19] - The adjusted EBITDA margin for 2024 was 20%, with expectations for meaningful advancements in the future [15][16] Q&A Session Summary Question: Distribution business performance and outlook - Management noted softening in Employer Stop Loss and short-term medical segments, with expectations for stabilization in the near future [50][51] Question: Sustainability of Everspan's combined ratio - Management indicated that while there are variabilities, the performance aligns with long-term objectives, aiming for effective loss ratios in the mid-60s [55]

Fourth Quarter 2024 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 ...

Revenue and Growth - Total revenue from continuing operations increased by 89% year-over-year to $236 million[3] - Total Specialty P&C Insurance premium rose by 74% year-over-year to $876 million[3] - Specialty P&C Insurance production reached $265 million in Q4 2024, an 88% increase from Q4 2023[7] - Total Insurance Distribution revenue for the three months ended December 31, 2024, was $44,070 thousand, representing a 257% increase compared to $12,331 thousand in the same period of 2023[29] - Gross premiums written increased to $382,771,000 in 2024 from $273,287,000 in 2023, representing a growth of 40%[42] Financial Performance - Adjusted EBITDA for Ambac common stockholders was $5 million for Q4 2024, up 270% from the previous year[3] - The company reported a consolidated net loss of $(548) million or $(10.23) per diluted share for Q4 2024[3] - The net income from continuing operations attributable to Ambac shareholders was $(22) million for Q4 2024, compared to $(9) million in Q4 2023[3] - Net income from continuing operations rose significantly by 68% to $1,836 thousand in Q4 2024, compared to $1,092 thousand in Q4 2023, with an annual increase of 3025% to $10,469 thousand from $335 thousand[13] - The diluted net income per share for Q4 2024 was $0.70, compared to a loss of $0.10 in Q4 2023[20] - The company reported a net loss attributable to common shareholders of $548 million for the year ended December 31, 2024, compared to a net income of $3,632 thousand in 2023[20] - Net income from continuing operations for 2024 was a loss of $58,921,000, compared to a loss of $23,232,000 in 2023, indicating a worsening of 153.5%[42][44] Expenses and Ratios - The combined ratio improved by 380 basis points to 96.5% compared to Q4 2023[3] - The expense ratio for Q4 2024 increased to 44.6% from 32.9% in the prior year, influenced by a sliding scale commissions adjustment[16] - Corporate expenses increased to $15 million in Q4 2024 from $13 million in Q4 2023, primarily due to costs associated with the Beat acquisition[16] - Total expenses from continuing operations increased to $295,660,000 in 2024, compared to $148,949,000 in 2023, reflecting a rise of 98.7%[42][44] Business Operations and Strategy - Ambac launched six new Managing General Agents (MGAs) in 2024, exceeding previous expectations[3] - The company is in the final stages of selling its Legacy Financial Guarantee business for $420 million, with a loss on disposal of $(570) million recorded in Q4 2024[3] - The company is in the process of selling its legacy financial guarantee business, pending regulatory approval[32] - The company faced significant challenges, including a high degree of volatility in stock price and potential disruptions from proposed sale transactions, which could materially affect future performance[36] - The company highlighted risks related to credit exposure and the inability to generate sufficient cash to service its debt obligations, which could impact financial stability[36] - The company is actively pursuing business expansion plans, although it faces challenges in onboarding new program partners and achieving expected synergies from acquisitions[36] Shareholder Information - Stockholders' equity decreased to $857 million or $18.43 per share as of December 31, 2024, down from $1.47 billion or $30.89 per share as of September 30, 2024[19] - During Q4 2024, the company repurchased 962,141 shares at an average price of $12.48 per share, totaling approximately $14.8 million[18] Tax and Income Provisions - The provision for income taxes in Q4 2023 was $274,000, while in Q4 2024 it was a benefit of $157,000, indicating a shift in tax position[39] - The provision for income taxes in 2024 was a benefit of $923,000, compared to a benefit of $989,000 in 2023, a decrease of 6.7%[42][44]

Group 1 - Ambac Financial Group (NYSE: AMBC) has its roots in guarantee insurance, particularly highlighted during the 2008 financial crisis which resulted in significant claims [1] - The company was initially covered in March, indicating a focus on its historical performance and implications for future investment [1] Group 2 - The article emphasizes a long-term investment perspective, focusing on owning stocks for years rather than short-term price predictions [3] - The author has transitioned from a more cautious approach, previously writing many Sell pieces, to a simplified strategy of "Buy or Don't Buy" as of March 2024 [3]