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Mar 31, 2025
Ambac Q1 2025 Earnings Report
Ambac reported a wider net loss in Q1 2025 driven by higher expenses and discontinued operations despite strong premium production growth.
Key Takeaways
Ambac delivered strong premium production and top-line growth in Q1 2025, but merger-related expenses, increased intangible amortization, and the impact from discontinued operations led to a net loss of $46.4 million.
Total revenue from continuing operations rose 27% YoY to $62.8 million.
Specialty P&C premium production reached $318 million, up 70% YoY.
Net loss attributable to shareholders was $46.4 million or $(1.22) per share.
Adjusted EBITDA was $(1.3) million, driven by higher corporate expenses and merger costs.
Forward Guidance
Ambac expects continued premium production momentum and margin stabilization, while working to finalize the sale of its Legacy business.
Positive Outlook
- Premium production grew 70% YoY to $318M.
- Adjusted EBITDA margin improved to 5.9%.
- Completed pre-closing steps for Legacy sale; awaiting regulatory approval.
- Revenue from Cirrata more than doubled YoY.
- Certain MGAs launched last year reached profitability.
Challenges Ahead
- Net loss of $46.4M due to discontinued operations and expense growth.
- Adjusted net income margin declined to -2.9%.
- Corporate overhead and integration costs pressured profitability.
- Losses from discontinued operations totaled $30.2M.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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