SOUTHAMPTON, N.Y., June 05, 2024 (GLOBE NEWSWIRE) -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating potential claims related to the below-listed proposed mergers. Kuehn Law may seek additional disclosures or other relief on behalf of the shareholders of these companies. Kuehn Law is investigating whether the Boards of the below companies 1) acted to maximize shareholder value, 2) failed to disclose material information, and 3) conducted a fair process: Ambac Financial Group signed a de ...

One stock that might be an intriguing choice for investors right now is Ambac Financial Group, Inc. (AMBC) . This is because this security in the Insurance - Property and Casualty space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably t ...

Have you been paying attention to shares of Ambac Financial Group (AMBC) ? Shares have been on the move with the stock up 22.5% over the past month. The stock hit a new 52-week high of $18.45 in the previous session. Ambac Financial Group has gained 11.2% since the start of the year compared to the 2.7% move for the Zacks Finance sector and the 14.2% return for the Zacks Insurance - Property and Casualty industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surpr ...

Financial Data and Key Metrics Changes - For Q1 2024, the company reported net income of $20 million, compared to a net loss of $33 million in Q1 2023, and adjusted net income of $38 million versus an adjusted net loss of $14 million in the prior year [6][11] - Book value per share increased to $30.19 from $30.13 at the end of Q4 2023, with adjusted book value rising to $29.03 per share from $28.74 [17] Business Line Data and Key Metrics Changes - The specialty P&C Insurance platform generated $187 million in premiums for the quarter, a 45% increase year-over-year [6] - Everspan generated gross written premiums of $96 million, an 86% increase from the previous year, and achieved its first underwriting profit with a combined ratio of 98% [8][14] - Cirrata placed over $90 million in premiums, up 17% year-over-year, and generated $5 million in EBITDA, reflecting a 10% increase from Q1 2023 [9][15] Market Data and Key Metrics Changes - The specialty P&C market reached nearly $90 billion in premiums for 2023, indicating strong growth potential [7] - The company noted a shift in its business mix, with commercial auto premiums decreasing from 93% to 8% of net premiums written at Everspan, highlighting diversification efforts [8] Company Strategy and Development Direction - The company aims to scale production in its P&C business to over $1.5 billion, targeting over $100 million in EBITDA within three years [18] - Ongoing investments are being made to enhance Specialty P&C capabilities and support MGA partners, positioning the company for long-term growth [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities across the Specialty P&C platform and indicated that 2024 is expected to be a year of transformational change [18] - The company is progressing discussions regarding strategic options for its legacy financial guaranty business and anticipates providing updates by the next earnings call [10][18] Other Important Information - Consolidated investment income for Q1 2024 was $42 million, up from $34 million in Q1 2023, driven by higher yields on fixed income securities [16] - The legacy financial guarantee segment generated net income of $20 million, a significant improvement from a net loss of $36 million in the prior year [16] Q&A Session Summary Question: Can you elaborate on the adverse development at Everspan this quarter? - The adverse development was primarily related to the nonstandard auto program, with delays in data affecting the results. Management remains optimistic about the program's future performance [20][21] Question: How do sliding scale commissions work? - Sliding scale commissions adjust acquisition costs based on loss performance, providing a protective mechanism for newer programs. This structure is maintained throughout the life of the program [22][25] Question: Can you provide details on resolving the Italian ABS exposure? - The company upgraded its exposure to Italy following positive credit developments and performance in line with expectations, leading to a reduction in adverse credit exposure [26][27] Question: What is the timeline for the strategic alternatives process? - Management confirmed that the timeline for updates on strategic options remains on track, with strong interest in the portfolio and company [29][30] Question: Are there opportunities for additional risk management or capital structure actions? - The company is maintaining a business-as-usual approach while exploring de-risking transactions and improving the quality of its book value [31][32]

Financial Performance & Strategic Priorities - Ambac Financial Group (AFG) reported net income attributable to common stockholders of $20.1 million in 1Q24, compared to a net loss of $(33.4) million in 1Q23[50] - Adjusted net income for 1Q24 was $38.5 million, compared to an adjusted net loss of $(13.8) million in 1Q23[50] - Ambac's Specialty P&C platform aims to grow Gross Premium Written (GPW) to over $400 million in 2024 and target mid-teens Return on Equity (ROE) at scale[6] - Cirrata targets over $300 million in premiums placed and over $60 million in revenue in 2024, striving for double-digit organic growth and over 20% EBITDA margins[6] Everspan: Specialty P&C Program Insurer - Everspan's Gross Premium Written (GPW) in 1Q24 was $96 million, up 86% compared to 1Q23[21] - Everspan achieved a quarterly pre-tax profit of $2 million in 1Q24, compared to a $(1) million loss in 1Q23[21] - Everspan's Combined Ratio in 1Q24 was 98.4%, improved from 121.9% in 1Q23[21, 24] Cirrata: Insurance Distribution - Cirrata placed $90 million of premium in 1Q24, a 17% increase over 1Q23[29] - Cirrata's total revenue in 1Q24 was $18 million, an increase of $3 million over 1Q23[29] - Cirrata's pre-tax income was $3.8 million with a 21.5% margin in 1Q24[29] Legacy Financial Guarantee - Legacy Financial Guarantee insured net par decreased 2.6% to $19.0 billion in 1Q24[37]

PART I. FINANCIAL INFORMATION [Item 1. Unaudited Consolidated Financial Statements](index=5&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) Presents Ambac Financial Group's unaudited consolidated financial statements for Q1 2024, detailing balance sheets, income, equity, and cash flows Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | **Total Assets** | **$8,429** | **$8,428** | | Total Investments | $2,682 | $2,664 | | Variable Interest Entity Assets | $4,331 | $4,394 | | **Total Liabilities** | **$6,993** | **$6,997** | | Long-term Debt | $512 | $508 | | Variable Interest Entity Liabilities | $4,340 | $4,404 | | **Total Stockholders' Equity** | **$1,418** | **$1,415** | Consolidated Statement of Total Comprehensive Income (Loss) Highlights (Unaudited) | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | Total Revenues | $103 | $58 | | Total Expenses | $77 | $86 | | Pretax Income (Loss) | $26 | $(29) | | **Net Income (Loss) Attributable to Common Stockholders** | **$20** | **$(33)** | | **Diluted EPS** | **$0.43** | **$(0.73)** | Consolidated Statement of Cash Flows Highlights (Unaudited) | Metric | Three Months Ended March 31, 2024 (in millions) | Three Months Ended March 31, 2023 (in millions) | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $18 | $77 | | Net Cash Provided by Investing Activities | $51 | $441 | | Net Cash Used in Financing Activities | $(47) | $(276) | | **Net Cash Flow** | **$21** | **$243** | [Note 1. Background and Business Description](index=10&type=section&id=Note%201.%20Background%20and%20Business%20Description) Ambac Financial Group operates three main segments: Legacy Financial Guarantee, Specialty P&C Insurance, and Insurance Distribution - The company's operations are divided into three main segments: Legacy Financial Guarantee Insurance, Specialty Property & Casualty Insurance, and Insurance Distribution[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - The Legacy Financial Guarantee business, comprising AAC and Ambac UK, has been in run-off since 2008[19](index=19&type=chunk) - The Specialty Property & Casualty Insurance business operates through Everspan carriers, which hold an A.M. Best rating of 'A-' (Excellent)[20](index=20&type=chunk) [Note 3. Segment Information](index=12&type=section&id=Note%203.%20Segment%20Information) Q1 2024 pretax income: Legacy Financial Guarantee **$25 million** (vs. **$32 million** loss in Q1 2023), Specialty P&C **$2 million**, Insurance Distribution **$4 million** Pretax Income (Loss) by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 Pretax Income (Loss) (in millions) | Q1 2023 Pretax Income (Loss) (in millions) | | :--- | :--- | :--- | | Legacy Financial Guarantee Insurance | $25 | $(32) | | Specialty Property & Casualty Insurance | $2 | $(1) | | Insurance Distribution | $4 | $4 | | Corporate & Other | $(5) | $0 | | **Consolidated** | **$26** | **$(29)** | Total Assets by Segment | Segment | Total Assets as of March 31, 2024 (in millions) | Total Assets as of March 31, 2023 (in millions) | | :--- | :--- | :--- | | Legacy Financial Guarantee Insurance | $7,454 | $7,503 | | Specialty Property & Casualty Insurance | $608 | $349 | | Insurance Distribution | $156 | $140 | | Corporate & Other | $211 | $227 | | **Consolidated** | **$8,429** | **$8,219** | [Note 4. Investments](index=13&type=section&id=Note%204.%20Investments) Total available-for-sale investments were **$2.095 billion** with **$75 million** unrealized losses; net investment income rose to **$42 million** in Q1 2024 Available-for-Sale Investments (Excluding VIEs) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Amortized Cost | $2,135 | $2,197 | | Gross Unrealized Gains | $37 | $40 | | Gross Unrealized Losses | $(75) | $(71) | | **Estimated Fair Value** | **$2,095** | **$2,162** | - Gross unrealized losses of **$75 million** on available-for-sale securities as of March 31, 2024, were primarily caused by the impact of increasing interest rates and market spreads. Management has determined these securities are not credit impaired[51](index=51&type=chunk)[52](index=52&type=chunk) Net Investment Income Composition (Q1) | Source | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Fixed maturity securities | $23 | $17 | | Short-term investments | $5 | $6 | | Other investments | $13 | $13 | | Investment expense | $(1) | $(2) | | **Total Net Investment Income** | **$42** | **$34** | - The investment portfolio includes **$406 million** (fair value) of securities insured by AAC or Ambac UK as of March 31, 2024[63](index=63&type=chunk)[64](index=64&type=chunk) [Note 6. Insurance Contracts](index=20&type=section&id=Note%206.%20Insurance%20Contracts) Q1 2024 net premiums written were **$28 million**, earned **$33 million**; loss reserves decreased to **$721 million**, with a **$1 million** net benefit for losses Net Premiums (Q1) | Metric | 2024 (in millions) | 2023 (in millions) | | :--- | :--- | :--- | | Net Premiums Written | $28 | $18 | | Net Premiums Earned | $33 | $14 | Loss and Loss Expense Reserves (Net) | Metric | March 31, 2024 (in millions) | December 31, 2023 (in millions) | | :--- | :--- | :--- | | Gross Loss and Loss Expense Reserves | $721 | $756 | - Favorable development in prior years' loss reserves for Q1 2024 was primarily driven by the positive impact of discount rates on the structured finance portfolio and assumption changes in the public finance and international portfolios within the legacy financial guarantee segment[119](index=119&type=chunk) [Note 12. Net Income Per Share](index=29&type=section&id=Note%2012.%20Net%20Income%20Per%20Share) Q1 2024 basic EPS was **$0.44** and diluted EPS was **$0.43**, a significant improvement from a **$0.73** loss per share in Q1 2023 Earnings Per Share (EPS) Comparison (Q1) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Basic EPS | $0.44 | $(0.73) | | Diluted EPS | $0.43 | $(0.73) | Weighted Average Shares Outstanding (Q1 2024) | Calculation | Shares | | :--- | :--- | | Basic | 45,827,076 | | Diluted | 46,348,776 | [Note 14. Commitments and Contingencies](index=30&type=section&id=Note%2014.%20Commitments%20and%20Contingencies) The company is involved in pending legal cases, including Monterey Bay Military Housing and National Collegiate Student Loan Trusts Litigation, with no material accruals - In the Monterey Bay Military Housing case, defendants filed motions for summary judgment on March 22, 2024[181](index=181&type=chunk)[183](index=183&type=chunk) - In the National Collegiate Student Loan Trusts Litigation, parties continue to negotiate a resolution as of April 25, 2024[183](index=183&type=chunk) - Management is unable to make a meaningful estimate of the amount or range of loss for certain litigation matters but believes it has substantial defenses[188](index=188&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=38&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 2024 net income of **$21 million** (vs. **$33 million** loss in Q1 2023) driven by improved loss expenses and premium growth; net par exposure declined to **$19.0 billion** - AFG (the holding company) holds **$209 million** in net assets as of March 31, 2024, to support growth, acquisitions, and capital management[197](index=197&type=chunk)[198](index=198&type=chunk) Financial Guarantee Net Par Outstanding | Metric | March 31, 2024 (in billions) | December 31, 2023 (in billions) | Change | | :--- | :--- | :--- | :--- | | Total Net Par | $19.031 | $19.541 | (2)% | | Adversely Classified Credits (ACC) | $2.776 | $3.504 | (21)% | | Watch List | $2.679 | $2.181 | 23% | - The decrease in total and ACC net par outstanding was due to active de-risking, maturities, and an upgrade of one credit with **$563 million** in net par from ACC to Watch List[211](index=211&type=chunk) [Results of Operations](index=43&type=section&id=Results%20of%20Operations) Q1 2024 net income of **$20 million** (vs. **$33 million** loss in Q1 2023) driven by increased gross premiums, reduced loss expenses, and higher net investment income - Gross premiums written increased by **$37 million** to **$98 million** in Q1 2024, driven by new and existing programs in the Specialty Property & Casualty Insurance segment[223](index=223&type=chunk)[225](index=225&type=chunk) - Losses and loss adjustment expenses recorded a benefit of **$1 million** in Q1 2024, compared to an expense of **$18 million** in Q1 2023. The variance was driven by positive impacts from discount rates in the legacy financial guarantee's RMBS portfolio[239](index=239&type=chunk)[240](index=240&type=chunk) - Net investment income increased by **$8 million** year-over-year, primarily due to higher portfolio yields and fair value gains on trading securities[230](index=230&type=chunk)[232](index=232&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) AFG maintains **$209 million** in net assets for liquidity; AAC's dividend payments and surplus note payments require OCI approval and remain uncertain - AFG, the holding company, has net assets of **$209 million** as of March 31, 2024, and is primarily dependent on these assets for liquidity, with secondary reliance on distributions from subsidiaries[263](index=263&type=chunk) - AAC's ability to pay dividends to AFG is uncertain. Payments of principal and interest on AAC's surplus notes require approval from the Office of the Commissioner of Insurance (OCI), which has generally been declined since 2010, with two exceptions[264](index=264&type=chunk)[267](index=267&type=chunk) - Total accrued and unpaid interest for surplus notes was **$487 million** at March 31, 2024[246](index=246&type=chunk) [Balance Sheet](index=50&type=section&id=Balance%20Sheet) Total assets stable at **$8.4 billion**; stockholders' equity increased to **$1.418 billion**; loss reserves decreased to **$721 million** due to Legacy Financial Guarantee developments - Total stockholders' equity increased by **$3 million** to **$1,418 million** as of March 31, 2024, primarily due to total comprehensive income of **$5 million** for the quarter[277](index=277&type=chunk) - Loss and loss expense reserves, net of subrogation recoverables and before reinsurance, decreased from **$756 million** at year-end 2023 to **$721 million** at March 31, 2024[286](index=286&type=chunk) - The RMBS portfolio comprises **60%** of the company's ever-to-date insurance claims recorded[288](index=288&type=chunk) [Non-GAAP Financial Measures](index=55&type=section&id=Non-GAAP%20Financial%20Measures) Q1 2024 non-GAAP results: EBITDA **$55 million**, Adjusted Net Income **$38 million** ($0.82/share), and Adjusted Book Value per share **$29.03** Non-GAAP Financial Highlights (Q1 2024) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | EBITDA (in millions) | $55 | $(5) | | Adjusted Net Income (in millions) | $38 | $(14) | | Adjusted Net Income Per Share | $0.82 | $(0.30) | Adjusted Book Value Per Share | Date | Adjusted Book Value Per Share | | :--- | :--- | | March 31, 2024 | $29.03 | | December 31, 2023 | $28.74 | PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Details on legal proceedings are referenced to Note 14 of the financial statements, with no material accruals for current cases - For details on legal proceedings, the report directs readers to Note 14 of the Unaudited Consolidated Financial Statements[323](index=323&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the 2023 Annual Report on Form 10-K - There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K[324](index=324&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2024, Ambac purchased **42,016 shares** for tax withholdings; the **$35 million** share repurchase program expired March 31, 2024 - In Q1 2024, the company purchased **42,016 shares** at an average price of **$16.24** to satisfy employee tax withholding obligations on vested restricted stock units[326](index=326&type=chunk) - The company's share repurchase program expired on March 31, 2024. Over the life of the program, **$18.7 million** was used to repurchase **1,930,384 shares** at an average price of **$9.70**[327](index=327&type=chunk)[328](index=328&type=chunk)

Financial Performance - Ambac reported a net income of $20.1 million or $0.43 per diluted share for Q1 2024, a significant increase from a net loss of $33.4 million in Q1 2023[3] - Adjusted net income for Q1 2024 was $38.5 million, compared to a loss of $13.8 million in Q1 2023, marking a 379% improvement[3] - Net income attributable to common stockholders for Q1 2024 was $20 million, compared to a net loss of $33 million in Q1 2023, representing a significant turnaround[38] - EBITDA for Q1 2024 was $54.5 million, compared to a loss of $(5.1) million for Q1 2023[27] - The company reported a pretax income of $26 million for Q1 2024, a significant improvement from a pretax loss of $29 million in Q1 2023[38] - The company reported a pretax income of $25.5 million in Q1 2024, a significant recovery from a pretax loss of $28.8 million in Q1 2023[42] - Net income for Q1 2024 was $20.8 million, compared to a net loss of $32.7 million in Q1 2023, indicating a turnaround in profitability[42] Premiums and Revenues - Gross written premiums reached $98.1 million, up 62% from $60.7 million in Q1 2023, while net premiums earned increased by 139% to $33.1 million[3] - Total revenues and other income increased to $103 million in Q1 2024, up from $58 million in Q1 2023, reflecting a growth of approximately 77.6%[38] - Net premiums earned rose to $33 million in Q1 2024, compared to $14 million in Q1 2023, marking an increase of 135.7%[38] - Total revenues and other income reached $102.6 million in Q1 2024, up from $57.5 million in Q1 2023, marking an increase of 78.3%[42] Investment Income - Net investment income rose to $41.7 million, a 22% increase from $34.1 million in Q1 2023, driven by higher yields[3] - The company reported a decrease in net investment gains of $(0.6) million in Q1 2024, compared to gains of $4.4 million in Q1 2023[24] - Net investment income rose to $41.7 million in Q1 2024, compared to $34.1 million in Q1 2023, reflecting a growth of 22.4%[42] Expenses and Cost Management - General and administrative expenses for Q1 2024 were $36 million, unchanged from the prior year, with expenses related to P&C growth initiatives offsetting reductions elsewhere[18] - Total expenses decreased to $77 million in Q1 2024 from $86 million in Q1 2023, a reduction of approximately 10.5%[38] - General and administrative expenses totaled $35.2 million in Q1 2024, a decrease from $36.0 million in Q1 2023, showing cost management efforts[42] Equity and Assets - The company’s stockholders' equity increased to $1.37 billion, or $30.19 per share, up from $1.36 billion or $30.13 per share at the end of 2023[20] - Total Ambac Financial Group, Inc. stockholders' equity was $1,365.2 million as of March 31, 2024, compared to $1,361.7 million at December 31, 2023[29] - Adjusted book value increased to $1.31 billion, or $29.03 per share, at March 31, 2024, from $1.30 billion, or $28.74 per share, at December 31, 2023[29] - The company's total assets remained stable at $8,429 million as of March 31, 2024, compared to $8,428 million at the end of 2023[40] Segment Performance - The Specialty P&C segment (Everspan) achieved a combined ratio of 98.4%, improving from 121.9% in the same quarter last year[3] - Total Specialty P&C Insurance production was $187 million, reflecting a 45% increase compared to Q1 2023[8] - The Legacy Financial Guarantee segment generated net income of $20 million, with net premiums earned slightly increasing to $7.5 million[11] Other Notable Information - The company is actively reviewing its Legacy Financial Guarantee business and is in discussions with interested parties, expecting to provide updates in the next reporting period[3] - Watch List and Adversely Classified Credits (WLACC) decreased by 4.0% to $5.5 billion in Q1 2024 from December 31, 2023[22] - Cash and cash equivalents increased to $44 million in Q1 2024, up from $28 million in Q4 2023[40] - The company's long-term debt stood at $512 million as of March 31, 2024, slightly up from $508 million at the end of 2023[40] - The loss and loss adjustment expense reserves decreased to $851 million in Q1 2024 from $893 million in Q4 2023, indicating improved reserve management[40] - The commission income remained stable at $17.7 million in Q1 2024, consistent with $14.5 million in Q1 2023, indicating steady performance in this segment[42] - The company plans to discuss Q1 2024 results in a conference call on May 7, 2024[30] - The company is committed to providing timely and accurate information to the investing public through its website[32]

Ambac Financial Group, Inc. (NYSE:AMBC) Q4 2023 Results Conference Call February 28, 2024 8:30 AM ET Company Participants Charles Sebaski - Head of IR Claude LeBlanc - President and CEO David Trick - EVP, CFO and Treasurer Conference Call Participants Dennis Chua - Repertoire Partners Operator Greetings, and welcome to the Ambac Financial Group, Inc. Fourth Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Cha ...

Exhibit 99.1 Ambac Reports Fourth Quarter 2023 Results NEW YORK, NY, February 27, 2024 (BUSINESS WIRE) -- Ambac Financial Group, Inc. (NYSE: AMBC) ("Ambac" or "AFG"), a financial services holding company, today reported its results for the fourth quarter and year ended December 31, 2023. • Net loss of $(16) million or $(0.24) per diluted share and Adjusted net income of $10 million or $0.32 per diluted share in the fourth quarter of 2023 • Legacy Financial Guarantee segment generated net loss of $(12) milli ...

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, 2023 ☐ 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. | --- | --- | --- | --- | |--------------------------------------------------------------|----------------|------------------|---- ...