Ambac(US:AMBC)2024-11-12 21:15Financial Performance - Ambac reported a net loss of $(28) million or $(0.63) per diluted share for Q3 2024, with an adjusted net loss of $(19) million or $(0.46) per diluted share, impacted by approximately $20 million in transaction costs and acquisition-related expenses[2]. - Adjusted Net Income (Loss) for Q3 2024 was $(19.5) million, or $(0.46) per diluted share, compared to $93.6 million, or $2.00 per diluted share, for Q3 2023[22]. - The net loss attributable to common shareholders was $28 million, offset by net unrealized investment gains of $37 million and foreign exchange translation gains of $57 million[18]. - EBITDA for Q3 2024 was $6.3 million, significantly down from $90.8 million in Q3 2023[28]. - Net income attributable to common stockholders was a loss of $28 million in Q3 2024, compared to a profit of $66 million in Q3 2023[43]. - The company reported a net loss per diluted share of $0.63 in Q3 2024, compared to a profit of $1.41 in Q3 2023[43]. - Net income for the quarter was a loss of $29.3 million, compared to a profit of $66.3 million in the prior year[48]. Revenue and Premiums - Total Property & Casualty (P&C) premium production reached $260 million, an increase of 86% compared to Q3 2023[7]. - Insurance Distribution segment ("Cirrata") generated total revenue of $24 million, up 64% year-over-year[2]. - Total revenue for the Specialty P&C Insurance segment increased by 86% to $260.1 million in Q3 2024 compared to $139.7 million in Q3 2023[9]. - Total revenues and other income rose to $114 million in Q3 2024, up from $74 million in Q3 2023, a 54% increase[43]. - Net premiums earned increased to $33 million in Q3 2024 from $18 million in Q3 2023, representing an 83% growth[43]. - Net premiums earned increased by 5.7% to $33.1 million, with a notable rise in Specialty Property & Insurance Casualty segment[48]. Expenses and Liabilities - General and administrative expenses increased to $55 million in Q3 2024, compared to $49 million in Q3 2023, a rise of 12.2%[43]. - Total liabilities rose to $7,383 million as of September 30, 2024, compared to $6,748 million as of June 30, 2024, an increase of 9.4%[45]. - Losses and loss adjustment expenses totaled $37.6 million, indicating a rise in claims[48]. Stockholder Equity and Share Repurchase - Stockholders' equity increased to $1.47 billion ($30.89 per share) as of September 30, 2024, compared to $1.37 billion ($30.25 per share) as of June 30, 2024[18]. - The company authorized a share repurchase program of up to $50 million, with an initial plan to repurchase no more than $15 million before the sale of Ambac Assurance Corporation[36]. - Total stockholders' equity was reported at $1,465.3 million, with a per share value of $30.89 as of September 30, 2024, up from $1,368.1 million and $30.25 per share at June 30, 2024[35]. Investment and Assets - The company reported a net investment loss of $2.7 million for the nine months ended September 30, 2024[29]. - Net investment income grew to $38 million in Q3 2024, compared to $30 million in Q3 2023, reflecting a 27% increase[43]. - Total assets increased to $9,256 million as of September 30, 2024, up from $8,184 million as of June 30, 2024, a growth of 13.1%[45]. - Cash and cash equivalents increased to $70 million as of September 30, 2024, up from $35 million as of June 30, 2024[45]. Business Strategy and Outlook - The acquisition of Beat Capital Partners is expected to drive the distribution business to exceed $1 billion in premium placed by 2025[2]. - The company is in the process of selling its legacy financial guarantee business, pending regulatory and shareholder approval[37]. - Future outlook includes a focus on market expansion and new product development strategies[48]. - Forward-looking statements indicate potential risks including volatility in stock price and uncertainties in achieving value from its business segments[39]. Changes in Financial Metrics - Non-GAAP financial measures will be revised in 2025 due to changes in the business profile[21]. - The company plans to enhance transparency by providing non-GAAP financial measures to better reflect core operating performance[20]. - The weighted-average diluted shares outstanding increased to 47.7 million in Q3 2024 from 46.8 million in Q3 2023[24]. - The weighted-average number of common shares outstanding was 47,688,986 in Q3 2024, compared to 45,635,373 in Q3 2023[43]. - Adjusted book value increased to $1.39 billion, or $29.28 per share, as of September 30, 2024, compared to $1.32 billion, or $29.23 per share, at June 30, 2024[34].