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Dec 31, 2022

Ambac Q4 2022 Earnings Report

Reported net income of $175 million and adjusted earnings of $190 million, reduced debt and accrued interest by $1.8 billion, and saw specialty P&C Insurance premium production increase by 172%.

Key Takeaways

Ambac Financial Group, Inc. reported a strong fourth quarter with net income of $175 million and adjusted earnings of $190 million. The company reduced debt and accrued interest by $1.8 billion and experienced significant growth in its Specialty P&C Insurance business. Book value and adjusted book value per share also saw substantial increases.

Net income attributable to common stockholders was $175 million, or $3.86 per diluted share.

Adjusted earnings were $190 million, or $4.18 per diluted share.

Debt and accrued interest reduced by $1.8 billion.

Specialty P&C Insurance premium production increased 172% to $90 million.

Total Revenue
$219M
Previous year: $53M
+313.4%
EPS
$4.18
Previous year: -$0.16
-2712.5%
Gross Profit
$17M
Previous year: $53M
-67.9%
Cash and Equivalents
$44M
Previous year: $17M
+158.8%
Total Assets
$7.97B
Previous year: $12.3B
-35.2%

Ambac

Ambac

Forward Guidance

Ambac is well-positioned to progress its strategic priorities for 2023 and beyond, focusing on growing its Specialty P&C businesses and continuing to manage its legacy business.

Positive Outlook

  • Settlement of legacy RMBS litigations for approximately $2 billion.
  • Resolution of HTA, the final remaining Puerto Rico exposure.
  • Significant reduction of financial leverage by redeeming and repurchasing $1.8 billion of debt and accrued interest.
  • 24% growth in book value in the quarter.
  • Continued material progress and growth of Specialty P&C businesses.