Ambac(US:AMBC)2025-02-26 22:25Revenue 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]