Ambac(US:AMBC)2024-05-06 20:11Financial Performance - Ambac reported a net income of $20.1 million or $0.43 per diluted share for Q1 2024, a significant increase from a net loss of $33.4 million in Q1 2023[3] - Adjusted net income for Q1 2024 was $38.5 million, compared to a loss of $13.8 million in Q1 2023, marking a 379% improvement[3] - Net income attributable to common stockholders for Q1 2024 was $20 million, compared to a net loss of $33 million in Q1 2023, representing a significant turnaround[38] - EBITDA for Q1 2024 was $54.5 million, compared to a loss of $(5.1) million for Q1 2023[27] - The company reported a pretax income of $26 million for Q1 2024, a significant improvement from a pretax loss of $29 million in Q1 2023[38] - The company reported a pretax income of $25.5 million in Q1 2024, a significant recovery from a pretax loss of $28.8 million in Q1 2023[42] - Net income for Q1 2024 was $20.8 million, compared to a net loss of $32.7 million in Q1 2023, indicating a turnaround in profitability[42] Premiums and Revenues - Gross written premiums reached $98.1 million, up 62% from $60.7 million in Q1 2023, while net premiums earned increased by 139% to $33.1 million[3] - Total revenues and other income increased to $103 million in Q1 2024, up from $58 million in Q1 2023, reflecting a growth of approximately 77.6%[38] - Net premiums earned rose to $33 million in Q1 2024, compared to $14 million in Q1 2023, marking an increase of 135.7%[38] - Total revenues and other income reached $102.6 million in Q1 2024, up from $57.5 million in Q1 2023, marking an increase of 78.3%[42] Investment Income - Net investment income rose to $41.7 million, a 22% increase from $34.1 million in Q1 2023, driven by higher yields[3] - The company reported a decrease in net investment gains of $(0.6) million in Q1 2024, compared to gains of $4.4 million in Q1 2023[24] - Net investment income rose to $41.7 million in Q1 2024, compared to $34.1 million in Q1 2023, reflecting a growth of 22.4%[42] Expenses and Cost Management - General and administrative expenses for Q1 2024 were $36 million, unchanged from the prior year, with expenses related to P&C growth initiatives offsetting reductions elsewhere[18] - Total expenses decreased to $77 million in Q1 2024 from $86 million in Q1 2023, a reduction of approximately 10.5%[38] - General and administrative expenses totaled $35.2 million in Q1 2024, a decrease from $36.0 million in Q1 2023, showing cost management efforts[42] Equity and Assets - The company’s stockholders' equity increased to $1.37 billion, or $30.19 per share, up from $1.36 billion or $30.13 per share at the end of 2023[20] - Total Ambac Financial Group, Inc. stockholders' equity was $1,365.2 million as of March 31, 2024, compared to $1,361.7 million at December 31, 2023[29] - Adjusted book value increased to $1.31 billion, or $29.03 per share, at March 31, 2024, from $1.30 billion, or $28.74 per share, at December 31, 2023[29] - The company's total assets remained stable at $8,429 million as of March 31, 2024, compared to $8,428 million at the end of 2023[40] Segment Performance - The Specialty P&C segment (Everspan) achieved a combined ratio of 98.4%, improving from 121.9% in the same quarter last year[3] - Total Specialty P&C Insurance production was $187 million, reflecting a 45% increase compared to Q1 2023[8] - The Legacy Financial Guarantee segment generated net income of $20 million, with net premiums earned slightly increasing to $7.5 million[11] Other Notable Information - The company is actively reviewing its Legacy Financial Guarantee business and is in discussions with interested parties, expecting to provide updates in the next reporting period[3] - Watch List and Adversely Classified Credits (WLACC) decreased by 4.0% to $5.5 billion in Q1 2024 from December 31, 2023[22] - Cash and cash equivalents increased to $44 million in Q1 2024, up from $28 million in Q4 2023[40] - The company's long-term debt stood at $512 million as of March 31, 2024, slightly up from $508 million at the end of 2023[40] - The loss and loss adjustment expense reserves decreased to $851 million in Q1 2024 from $893 million in Q4 2023, indicating improved reserve management[40] - The commission income remained stable at $17.7 million in Q1 2024, consistent with $14.5 million in Q1 2023, indicating steady performance in this segment[42] - The company plans to discuss Q1 2024 results in a conference call on May 7, 2024[30] - The company is committed to providing timely and accurate information to the investing public through its website[32]