Ambac Q4 2024 Earnings Report
Key Takeaways
Ambac Financial Group reported a net loss of $(548) million, or $(10.23) per diluted share, including a loss on disposal of $(570) million from the Legacy Financial Guarantee business sale. However, the P&C operating businesses had record performances, with total P&C premium production growing to $265 million, an 88% increase year-over-year. Cirrata's revenue grew by 257% and Everspan's net income increased significantly.
Ambac advanced its strategic transformation by entering the final stages of the sale of its Legacy Financial Guarantee business.
Total P&C premium production grew to $265 million, an 88% increase over the fourth quarter of 2023.
Cirrata's total revenue grew to $44 million, an increase of 257% over last year.
Everspan's combined ratio improved to 96.5%, and net income from continuing operations was $2 million.
Ambac
Ambac
Forward Guidance
Ambac anticipates closing the Legacy sale in late Q1 or early Q2 2025, pending Wisconsin regulatory approval, and expects a strong year for both organic and strategic growth anchored in strategic acquisitions and organic growth, driven primarily by the launch of new MGAs.
Positive Outlook
- Substantially completed separation of legacy and P&C businesses' financial and technology platforms.
- Expects closing of the Legacy sale in late Q1 or early Q2 2025.
- Pipeline for organic and strategic growth remains very strong.
- Focus on growth strategy anchored in strategic acquisitions and organic growth.
- Commitment to technology, efficiency, and talent positions Ambac well to enhance value for shareholders.
Challenges Ahead
- Sale remains subject to Wisconsin regulatory approval.
- Inability to obtain reinsurance coverage or charge rates for insurance on expected terms.
- Greater than expected underwriting losses in the Company’s specialty property and casualty insurance business.
- Failure of specialty insurance program partners to properly market, underwrite or administer policies.
- Loss of key relationships for production of business in specialty property and casualty and insurance distribution businesses or the inability to secure such additional relationships to produce expected results.