Ambac(US:AMBC)2025-11-10 21:57Financial Position - Total assets decreased to $2,147,890 thousand as of September 30, 2025, from $8,058,378 thousand at December 31, 2024, reflecting a significant reduction[10] - Total liabilities decreased to $1,000,469 thousand from $6,862,857 thousand, indicating a significant reduction[10] - Stockholders' equity decreased to $959,174 thousand from $1,054,661 thousand, a decline of approximately 9%[10] - The balance of stockholders' equity decreased to $959,174 thousand as of September 30, 2025, down from $1,670,034 thousand at the same date in 2024[17] - Total financial liabilities were $152,877 million as of September 30, 2025, with no short-term debt reported[84] Revenue and Income - Total revenues for the three months ended September 30, 2025, were $66,606,000, a decrease from $70,005,000 in the same period of 2024, representing a decline of approximately 6.3%[12] - Net income attributable to shareholders for the three months ended September 30, 2025, was a loss of $112,620,000 compared to a loss of $27,503,000 in 2024, indicating a significant increase in losses[12] - Total revenues from continuing operations for the nine months ended September 30, 2025, were $184,319, an increase from $170,593 for the same period in 2024, representing an 8.0% growth[60] - Total revenues for the nine months ended September 30, 2025, were $121,050, down 19.7% from $150,687 in 2024[66] - The company reported a total of $4,855,000 in revenue recognized in accordance with ASC 606 for the three months ended September 30, 2025[124] Expenses - Total expenses for the three months ended September 30, 2025, were $98,685,000, up from $90,762,000 in 2024, reflecting an increase of about 8.5%[12] - Total expenses from continuing operations rose to $254,479 for the nine months ended September 30, 2025, up from $209,338 in 2024, reflecting a 21.5% increase[60] - Total expenses for the three months ended September 30, 2025, were $88,425, significantly higher than $49,906 in the same period of 2024[66] Investments and Cash Flow - Total investments increased to $455,228 thousand, up from $312,915 thousand year-over-year, indicating a growth of approximately 45.5%[10] - Cash and cash equivalents rose to $51,767 thousand, compared to $47,275 thousand in the previous year, showing an increase of about 5.3%[10] - Cash flows from operating activities from continuing operations resulted in a net cash outflow of $51,617 thousand for 2025, compared to a net cash inflow of $76,394 thousand in 2024[19] - The company generated $407,300 thousand from the sale of a subsidiary in 2025, significantly higher than $14,119 thousand in 2024[19] Premiums and Receivables - Premium receivables increased to $74,760 thousand, up from $57,222 thousand, representing a growth of approximately 30.7%[10] - The company reported net premiums earned of $17,027,000 for the three months ended September 30, 2025, down from $27,441,000 in 2024, a decrease of approximately 38%[12] - Net premiums earned for the Specialty Property & Casualty Insurance segment were $17.027 million in Q3 2025, compared to $27.441 million in Q3 2024, reflecting a decrease of about 38%[58] - Total net premiums earned for the nine months ended September 30, 2025, were $50,987,000, compared to $48,908,000 for the same period in 2024, representing an increase of approximately 2.2%[100] Goodwill and Intangible Assets - The company reported a significant increase in goodwill to $445,382 thousand from $418,234 thousand, indicating a growth of about 6.5%[10] - Total intangible assets as of September 30, 2025, amounted to $394,343,000, an increase from $371,680,000 as of December 31, 2024, reflecting a growth of 6.1%[120] Legal and Regulatory Matters - Everspan may face disputes regarding the scope of coverage under its policies, which could lead to liabilities beyond those anticipated or reserved[150] - Allegations of bad faith in claims handling could result in extensive litigation, potentially impacting Everspan's financial condition[151] - Legal accruals for litigation against Ambac are either not applicable or not material to its financial position, but adverse outcomes could be significant[154] - The COFINA Case involves allegations against Ambac and others regarding improper use of their role in bond restructuring, with claims for breach of contract and bad faith refusal to pay[156] Shareholder Actions - Ambac's share repurchase program allows for the repurchase of up to $50,000,000 of common shares, with $8,449,000 remaining in unused authorization as of the latest report[135] - The company repurchased 292,191 shares in 2025 at an average price of $11.30 per share, with a total cost of $3,301,000[137] Accounting and Standards - The company is evaluating the impact of new accounting standards (ASU 2025-06 and ASU 2024-03) on its financial statements, with effective dates after December 15, 2027[52][53] - The fair value of fixed maturity investment securities is primarily based on market prices from independent pricing sources, with many classified as Level 2 due to infrequent trading[87] Risk Management - The company recorded an allowance for credit losses of less than a million as of September 30, 2025, indicating effective risk management practices[112] - The top five reinsurers accounted for 60.2% of total reinsurance recoverables on paid and unpaid losses, with General Reinsurance Company being the largest at $148,776[111]