Ambac Q1 2023 Earnings Report
Key Takeaways
Ambac Financial Group reported a net loss of $(33) million, or $(0.73) per diluted share, and an adjusted net loss of $(14) million, or $(0.30) per diluted share. However, the Specialty P&C businesses, Everspan and Cirrata, experienced significant growth in gross written premium and premiums placed, respectively.
Net loss of $(33) million or $(0.73) per diluted share; Adjusted net loss of $(14) million or $(0.30) per diluted share.
Specialty P&C Insurance (Everspan) gross written premium increased by 116% to $52 million.
Insurance Distribution (Cirrata) premiums placed increased by 72% to $77 million.
Book Value per share and Adjusted Book Value per share were largely in line with the prior quarter, down 1% and 1%, respectively.
Ambac
Ambac
Forward Guidance
Ambac expects that overall U.S. casualty insurance pricing is keeping up with loss cost trends in the lines they are writing and is supportive of strong growth in the program sector, which they expect will continue to provide a tailwind to their business this year.
Positive Outlook
- Strong performance in Specialty P&C businesses.
- Significant growth in premium production for Everspan and Cirrata.
- U.S. casualty insurance pricing keeping up with loss cost trends.
- Supportive environment for growth in the program sector.
- Expected continued tailwind to the business this year.
Challenges Ahead
- Net loss attributable to common stockholders.
- Adjusted net loss reported.
- Decrease in net premiums earned compared to the prior year.
- Negative impact from lower discount rates on RMBS reserves.
- Increase in general and administrative expenses.