Ambac(US:AMBC)2025-05-12 21:09Financial Position - Total assets increased to $8,253,282 thousand as of March 31, 2025, compared to $8,058,378 thousand as of December 31, 2024, reflecting a growth of approximately 2.4%[10] - Total liabilities increased to $7,041,817 thousand from $6,862,857 thousand, showing a rise of about 2.6%[10] - Stockholders' equity decreased to $1,026,048 thousand from $1,054,661 thousand, representing a decline of approximately 2.7%[10] - The company reported a decrease in retained earnings to $681,489 thousand from $742,185 thousand, a decline of about 8.2%[10] - Total assets held-for-sale increased to $6,392,004,000 as of March 31, 2025, from $6,267,200,000 as of December 31, 2024, representing a growth of approximately 1.99%[56] - Total liabilities held-for-sale rose to $6,003,908,000 as of March 31, 2025, compared to $5,887,685,000 as of December 31, 2024, marking an increase of about 1.99%[56] Revenue and Income - Total revenues and other income rose by 26.6% to $62,756,000 in Q1 2025 from $49,551,000 in Q1 2024[12] - Net premiums earned decreased by 38.8% to $15,678,000 in Q1 2025 from $25,579,000 in Q1 2024[12] - Commission income increased by 107.5% to $36,771,000 in Q1 2025 compared to $17,729,000 in Q1 2024[12] - Total revenues from continuing operations for Q1 2025 were $62,756 million, a 26.5% increase from $49,551 million in Q1 2024[51] - Total revenues from contracts with customers for the three months ended March 31, 2025, were $36,771, significantly higher than $17,729 in the same period of 2024, marking a growth of approximately 107%[117] Expenses and Losses - Total expenses increased by 47.5% to $77,863,000 in Q1 2025 from $52,790,000 in Q1 2024[12] - Net loss attributable to Ambac shareholders was $46,391,000 in Q1 2025, compared to a net income of $20,070,000 in Q1 2024[12] - Basic net income (loss) per share attributable to Ambac shareholders was $(1.22) in Q1 2025, down from $0.44 in Q1 2024[12] - The company reported a significant loss on discontinued operations of $30,247,000 in Q1 2025, compared to a gain of $24,140,000 in Q1 2024[12] - Consolidated pre-tax loss for the three months ended March 31, 2025, was $(15,107) thousand, compared to a loss of $(3,239) thousand in 2024[136] Cash Flow - Cash and cash equivalents rose to $51,660 thousand, up from $47,275 thousand, indicating an increase of approximately 5.0%[10] - Net cash provided by (used in) operating activities from continuing operations was $(12,612,000) in Q1 2025, compared to $7,071,000 in Q1 2024[16] - Cash, cash equivalents, and restricted cash at the end of Q1 2025 for continuing operations was $51,660,000, up from $24,690,000 at the end of Q1 2024[16] Investments - Total investments decreased to $291,393 thousand from $312,915 thousand, representing a decline of about 6.9%[10] - The amortized cost of available-for-sale investments as of March 31, 2025, was $266,292,000, with an estimated fair value of $263,179,000, indicating a slight decrease in value[59] - The fair value of Ambac's investment in a private equity fund was $7,420,000 as of March 31, 2025, down from $7,499,000 at December 31, 2024[71] Legal and Regulatory Matters - The company is currently facing risks related to high volatility in stock prices and potential disruptions from proposed sale transactions[7] - AFG's management believes it is more likely than not that the company will not generate sufficient taxable income to recover its deferred tax operating assets, thus maintaining a full valuation allowance[135] - The company is involved in various legal proceedings, including a class action lawsuit related to bond insurance claims, which may have material impacts on its financial position[144][145] Shareholder Actions - AFG's share repurchase program authorized up to $20,000 thousand in 2022, followed by an additional $15,000 thousand, with a total of 1,605,316 shares repurchased at an average price of $8.86 per share in 2023[127][129] - The total cost of shares repurchased in 2025 was $3,122 thousand for 264,791 shares, with an unused authorization amount of $35,179 thousand remaining[129] - AFG's share repurchase program is set to continue until December 31, 2026, with a new authorization of up to $50,000 thousand[128] Risk Management - The company has classified the assets and liabilities of AAC as held for sale due to a pending sale, impacting its financial results significantly[25][26] - The company holds letters of credit and collateral amounting to $66,954 from its reinsurers at March 31, 2025, to mitigate credit exposure risks[102] - The allowance for credit losses recorded by Everspan was less than $1 million at March 31, 2025, indicating effective management of credit exposure[104]