Ambac’s insurance distribution segment reports 40% rise in organic revenue growth for Q3’25

Core Insights - Ambac Financial Group, Inc. reported a significant organic revenue growth of 40% in its Insurance Distribution segment, contributing to an overall revenue increase of 80% to $43 million for the quarter compared to $24 million in Q3'24 [1] Financial Performance - The Insurance Distribution segment recorded a net loss to shareholders of $5 million for the quarter, an improvement from a net loss of $7 million in Q3'24 [2] - Adjusted EBITDA for the Insurance Distribution segment surged by 272% to $10 million, up from $2.4 million in Q3'24, while adjusted EBITDA to shareholders increased by 183% to $6 million from $2.1 million [2] - Total revenues from continuing operations dipped by 5% to $67 million in Q3'25, down from $70 million in Q3'24, primarily due to reduced earned premiums at Everspan and the impact of previous gains [3][4] - Everspan's gross and net premiums written decreased by 16% and 46%, respectively, totaling $97.1 million and $18 million compared to $115 million and $32.7 million in Q3'24 [4] - The net loss to shareholders from continuing operations increased by $14 million to $32 million in Q3'25, compared to $18 million last year [4] Expense Analysis - Total expenses rose by 9% to $99 million in Q3'25 from $91 million the previous year, driven by increases in G&A expenses, intangible amortization, and interest expenses related to acquisitions [5] - G&A expenses included costs associated with exiting the financial guarantee business and the acquisition of ArmadaCare, which offset lower nominal losses and acquisition expenses at Everspan [6] Strategic Developments - Adjusted EBITDA from continuing operations to Ambac shareholders was a loss of $3 million in Q3'25, compared to a gain of $2 million last year, influenced by lower adjusted EBITDA at Everspan and expenses related to M&A and legacy litigation [7] - The company repurchased 3.1 million shares in October at an average price of $8.48, representing 6.7% of shares outstanding [8] - The CEO emphasized the focus on growth and profitability in specialty P&C businesses following the sale of the legacy financial guarantee business, highlighting strong performance in the insurance distribution segment [8] - The company anticipates improved combined ratios for Everspan as it scales between 2026 and 2027 and is optimistic about future prospects, reinforced by share repurchases [9] - Ambac expanded its partnership with Pivix and announced the launch of 1889 Specialty, a new MGA venture, indicating strategic growth initiatives [9]