Loading...
•
Sep 30, 2024
Ambac Q3 2024 Earnings Report
Reported a net loss for Q3 2024, driven by transaction costs and acquisition-related interest expenses, but saw strong growth in P&C premium production and insurance distribution revenue.
Key Takeaways
Ambac Financial Group reported a net loss of $(28) million for the third quarter of 2024, or $(0.63) per diluted share. However, the company experienced significant growth in its P&C premium production, which increased by 86% year-over-year, and a 64% increase in insurance distribution revenue. The Specialty P&C Insurance segment also showed improvement with a better combined ratio.
Net loss of $(28) million or $(0.63) per diluted share; Adjusted net loss of $(19) million or $(0.46) per diluted share
Total P&C Premium Production increased 86% from Q3 2023, reaching $260 million.
Insurance Distribution revenue grew 64.0% over last year, totaling $24 million.
Specialty P&C Insurance combined ratio improved by 600 bps to 100.5%, with total revenue growing 158% to $40 million.
Revenue by Segment
Forward Guidance
Ambac anticipates closing the sale of its Legacy Financial Guarantee business later this year or early next year and emerging as a pure-play P&C franchise in 2025.
Positive Outlook
- Distribution business is expected to exceed $1 billion of premium placed in 2025.
- Beat acquisition has expanded the pipeline for new MGA opportunities.
- Underwriting trend at Everspan is improving, with a goal of achieving an attractive return profile.
- Acceleration of the $50 million share buy-back program has been approved.
- Positive feedback from investors regarding the shift to a pure-play P&C franchise.
Challenges Ahead
- Dependence on gross premiums written as specialty program insurance companies earn premiums based on the portion of gross premiums written retained.
- Insurance Distribution revenues are dependent on premium volume.
- The Legacy Financial Guarantee Segment experienced a pre-tax loss of $9.4 million in the third quarter of 2024, primarily as a result incurred losses driven by a decline in discount rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...