Ambac(US:AMBC)2025-03-06 21:30Revenue and Growth - Total revenues for the year ended December 31, 2024, were $235,815, an increase from $124,728 in 2023, representing a growth of 88.9%[272] - Gross premiums written for Specialty Property & Casualty Insurance segment increased to $382,771 in 2024 from $273,287 in 2023, reflecting a growth of 40%[272] - Net premiums earned for 2024 increased by $47,094 or 90.7%, totaling $99,005, compared to $51,911 in 2023 and $13,869 in 2022, driven by growth in net premiums written[324] - Premiums placed for the year ended December 31, 2024, were $493,372, an increase of $262,766 or 114% compared to 2023[352] - Total Insurance Distribution revenue for 2024 reached $99,236 million, representing a 48.1% growth from $51,546 million in 2023[418] - Organic Revenue for 2024 was $49,761 million, with a growth rate of 5.4% compared to $47,057 million in 2023[418] Income and Losses - Net income for the year ended December 31, 2024, was a loss of $58,921, compared to a loss of $23,232 in 2023, indicating a worsening of 153%[272] - The company reported a net loss of $556,088 in 2024, significantly impacted by discontinued operations, compared to a net income of $4,951 in 2023[318] - Net loss from continuing operations for 2024 was $58,921, compared to $23,232 in 2023 and $35,244 in 2022, primarily due to higher acquisition costs of $26,821 and restructuring costs of $7,600[316] - The company reported a total loss from continuing operations of $(62,509) million in 2024, compared to $(58,921) million in 2023[420] Acquisitions and Disposals - AFG entered into a stock purchase agreement to sell AAC for $420 in cash, with a warrant for 9.9% of AFG's common stock at an exercise price of $18.50[273] - AFG acquired approximately 60% of Beat for total consideration of approximately $281,493, with $252,264 paid in cash[276] - The sale of Consolidated National Insurance Company resulted in a gain of approximately $7,504, with no adverse impact on the group's operations[277] - Investing activities for 2024 included net cash used in the acquisition of Beat of $243,776[378] Reserves and Loss Estimates - Loss and loss adjustment expense reserves totaled $349,062 as of December 31, 2024, compared to $78,797 in 2023, indicating a significant increase in reserves[284] - The company recorded a range of estimated losses, with low-end losses being approximately $33,400 million below recorded gross reserves and high-end losses exceeding recorded gross reserves by approximately $4,500 million[289] - The estimated loss reserves for financial guarantee insurance policies could be understated due to unforeseen market conditions, with a possible increase in loss reserves estimated at approximately $265,000 million[306] - The company’s loss reserves are based on significant estimates regarding the probability of default and expected loss severity, which can be impacted by economic and market conditions[299] Financial Performance Metrics - EBITDA for the year ended December 31, 2024, was $19,653, an increase of $8,170 or 71% compared to 2023[354] - Adjusted EBITDA is defined as net income from continuing operations before interest, taxes, depreciation, amortization, and certain exceptional items, providing a clearer view of operating performance[413] - The adjusted EBITDA margin for 2024 is 4.1%, down from 20.1% in 2023, reflecting challenges in maintaining profitability[414] - The net income margin for 2024 stands at 8.3%, a recovery from a negative margin of 609.2% in 2023[414] Expenses and Liabilities - General and administrative expenses totaled $129,166 in 2024, significantly up from $66,985 in 2023, primarily due to acquisitions and growth in the Insurance Distribution segment[343] - Interest expense for 2024 was $9,379, related to short-term debt for the Beat acquisition, with no interest expense in 2023 and 2022[344] - Total liabilities decreased by approximately $133,770 from December 31, 2023, to $6,862,857 as of December 31, 2024[382] Investments and Assets - Cash and short-term investments as of December 31, 2024, were $74,423, down from $96,563 in 2023[363] - Total assets decreased by approximately $369,942 from December 31, 2023, to $8,058,378 at December 31, 2024, with a decrease of $1,249,256 related to discontinued operations[382] - The total fixed maturity available-for-sale investments decreased from $335,734 thousand in 2023 to $284,621 thousand in 2024, representing a decline of approximately 15.2%[89] Employee and Corporate Governance - As of December 31, 2024, Ambac had 195 employees in the United States and 185 employees in the United Kingdom and Bermuda, with a voluntary turnover rate of approximately 6.5%[90] - The company has established a Disclosure Committee to assist the CEO and CFO in maintaining effective disclosure controls and procedures[77] - Ambac's focus on employee retention includes compensation components such as long-term incentive plan awards and performance metrics as part of the annual short-term incentive bonus offering[91]