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Mar 31, 2022
Ambac Q1 2022 Earnings Report
Reported net income of $2 million and adjusted earnings of $14 million, reflecting progress in strategic initiatives.
Key Takeaways
Ambac Financial Group reported a net income of $2 million and adjusted earnings of $14 million for Q1 2022. Specialty P&C insurance production increased by 71% year-over-year, and Puerto Rico principal and interest exposure was reduced by $450 million.
Net income attributable to common stockholders was $2 million, or $0.04 per diluted share.
Adjusted earnings were $14 million, or $0.30 per diluted share.
Specialty P&C insurance production totaled $69 million, up 71% from Q1 2021.
Puerto Rico principal and interest exposure was reduced by $450 million, or 25%, from December 31, 2021.
Ambac
Ambac
Ambac Revenue by Segment
Revenue by Segment
Specialty Property & Casualty Insurance Revenue
CapyFin.comInsurance Distribution Revenue
CapyFin.com Forward Guidance
Ambac is focused on growing its specialty P&C distribution and underwriting platform and managing its legacy financial guaranty business.
Positive Outlook
- Continued growth in the Specialty P&C Insurance and Insurance Distribution businesses.
- Reduction of insured principal and interest exposure to Puerto Rico.
- Pursuing full recovery on all RMBS cases.
- Interest rate derivatives portfolio is positioned to benefit from rising interest rates.
- Board of Directors authorized a $20 million share repurchase program.
Challenges Ahead
- Impact of a recent New York Court of Appeals decision on the recorded amount of estimated recoveries from RMBS representation and warranty litigation.
- Decrease in book value per share and adjusted book value per share.
- Decrease in net investment income.
- Increase in losses and loss expenses.
- The marginal increase in expenses was driven by growth in the Specialty P&C Insurance, Insurance Distribution and Legacy Financial Guarantee Insurance segments partially offset by lower Corporate & Other expenses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income