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Dec 31, 2024
Ambac Q4 2024 Earnings Report
Ambac reported its financial results for the fourth quarter of 2024, highlighting significant growth in Specialty P&C Insurance premiums and Insurance Distribution revenue, alongside a net loss primarily due to the adoption of discontinued operations accounting standards.
Key Takeaways
Ambac Financial Group, Inc. reported a consolidated net loss of $(548) million for the fourth quarter of 2024, primarily driven by a $(570) million loss on disposal due to the adoption of discontinued operations accounting standards for its legacy business. Despite this, the company saw substantial growth in its P&C operating businesses, with total P&C premium production increasing by 88% to $265 million and Insurance Distribution revenue growing by 257% to $44 million.
Total P&C premium production grew to $265 million in Q4 2024, an 88% increase over Q4 2023.
Insurance Distribution ('Cirrata') total revenue increased by 257% to $44 million for the quarter.
The company reported a consolidated net loss of $(548) million, or $(10.23) per diluted share, primarily due to a $(570) million loss on disposal related to the legacy business sale.
Specialty P&C Insurance ('Everspan') combined ratio improved by 380 bps to 96.5% over Q4 2023.
Ambac
Ambac
Ambac Revenue by Segment
Revenue by Segment
Specialty Property & Casualty Insurance Revenue
CapyFin.comInsurance Distribution Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
Ambac anticipates the completion of the Legacy sale in early to next quarter, positioning the company for continued growth in its P&C operating businesses and maintaining a strong pipeline for organic and strategic growth in 2025.
Positive Outlook
- Anticipated completion of the Legacy sale in early to next quarter, subject to Wisconsin regulatory approval.
- Continued focus on growth strategy anchored in strategic acquisitions and organic growth.
- Strong pipeline for organic and strategic growth in 2025.
- Commitment to technology, efficiency, and talent to drive innovation and market expansion.
- Positioned to enhance value for shareholders.
Challenges Ahead
- The close of the Legacy sale remains subject to Wisconsin regulatory approval.
- Potential for actual results to differ materially from expected objectives due to various risk factors.
- High degree of volatility in the price of AFG's common stock.
- Risks associated with the Legacy Financial Guarantee business if the sale is not consummated.
- Potential for adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed Sale Transactions.