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Dec 31, 2020
Ambac Q4 2020 Earnings Report
Reported a net loss of $14 million and adjusted earnings of $4 million.
Key Takeaways
Ambac Financial Group reported a Net Loss attributable to common stockholders of $14 million or $0.31 per diluted share and Adjusted Earnings of $4 million or $0.08 per diluted share for the quarter ended December 31, 2020. Book Value per Share increased $0.98 to $23.57 and Adjusted Book Value per Share increased $0.61 to $20.05 from September 30, 2020 to December 31, 2020.
Net Loss of $14 million or $0.31 per diluted share and Adjusted Earnings of $4 million or $0.08 per diluted share for the Quarter Ended December 31, 2020
Book Value per Share increased $0.98 to $23.57
Adjusted Book Value per Share increased $0.61 to $20.05 from September 30, 2020 to December 31, 2020
Fourth quarter 2020 results were not impacted by the previously announced acquisition of 80% of the membership interests of each of Xchange Benefits, LLC and Xchange Affinity Underwriting Agency, LLC
Forward Guidance
Ambac executed under its platform diversification, three pillar strategy which consists of (I) specialty program insurance, (II) managing general agency/underwriting, and (III) other insurance and insurance related businesses, that meet preestablished criteria and that are expected to generate long-term stockholder value with attractive risk-adjusted returns.
Positive Outlook
- Ambac launched Everspan Group, a specialty participatory fronting program insurance business
- Everspan Group's receipt of an AM Best Financial Strength Rating of A-(Excellent)
- Ambac acquired 80% of the membership interests of Xchange
- Xchange is a specialty property and casualty Managing General Underwriter
- AAC reduced its nominal debt and accrued interest outstanding by approximately $76 million.
Challenges Ahead
- the highly speculative nature of AFG’s common stock and volatility in the price of AFG’s common stock
- Ambac's inability to realize the expected recoveries, including RMBS litigation recoveries, included in its financial statements which would have a materially adverse effect on Ambac Assurance Corporation's (\"AAC\") financial condition and may lead to regulatory intervention
Historical Earnings Impact
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Avg. Return Before/After Earnings
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