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Ambac Financial Group, Inc. (NYSE: AMBC), headquartered in New York City, is a diversified financial services holding company. Ambac operates through its subsidiaries, including Ambac Assurance Corporation and Everspan Financial Guarantee Corporation, providing financial guarantees and other financial services to public and private sectors worldwide. The company's primary segments include Legacy Financial Guarantee Insurance, Specialty Property and Casualty Insurance, and Insurance Distribution.
Ambac Assurance, along with its subsidiaries, guarantees public and structured finance obligations. The company's focus is not only on maintaining its legacy operations but also on expanding its footprint in the Specialty P&C segment through acquisitions and strategic partnerships.
In the second quarter of 2023, Ambac reported a net loss of $(13) million, equating to $(0.29) per diluted share. The Specialty P&C Insurance segment wrote gross premiums of $53 million, reflecting a 30% growth from the previous year, while the Insurance Distribution segment saw a 71% increase in premiums placed, amounting to $41 million.
Ambac is actively de-risking its Financial Guarantee Insurance portfolio, reducing net par outstanding by 9.3%. The company is also exploring new financial service opportunities, further diversifying its business operations.
With a book value per share of $27.59 and an adjusted book value per share of $26.97 at the end of Q2 2023, Ambac remains focused on strategic growth and stability. The company recently announced significant strides in its P&C growth strategy, supported by favorable market conditions in U.S. casualty insurance.
For more detailed and up-to-date information, visit the Ambac Investor Relations page.
Ambac Financial Group (NYSE: AMBC) has announced the launch of Tara Hill Insurance Services, an E&S Management and Professional Liability program administrator. Tara Hill, which will be part of Ambac's Cirrata Group, will be led by industry veteran Peter McKeegan as CEO. The company's focus will be on developing an Excess & Surplus (E&S) portfolio, targeting private Management Liability and Miscellaneous Professional Liability coverages for small to medium-sized risks, distributed exclusively through wholesale brokers.
Naveen Anand, president of Cirrata Group, expressed excitement about leveraging Cirrata’s infrastructure to support McKeegan, who has held leadership roles at several major insurance firms. McKeegan highlighted the extensive underwriting experience brought to Tara Hill, aiming to bring highly customized products to market.
Ambac Financial Group has signed an agreement to acquire 60% of Beat Capital Partners for around $282 million, with up to $40 million paid in Ambac shares. The deal is expected to close in Q3 2024, pending regulatory approvals and will be financed through available cash and committed financing. Beat, based in London, is a leading insurance underwriting and MGA incubation platform. This acquisition aims to enhance Ambac's specialty program insurance market position and accelerate its goal of generating over $100 million in annual EBITDA. Beat's management and Bain Capital will retain 20% stakes in Beat.
Ambac Financial Group (NYSE: AMBC) has finalized an agreement to sell its legacy financial guarantee businesses, Ambac Assurance (AAC) and Ambac UK (AUK), to Oaktree Capital Management for $420 million in cash. Additionally, Oaktree will receive warrants for up to 9.9% of Ambac common stock at a strike price of $18.50.
This transaction marks the completion of Ambac's transformation into a specialty property and casualty insurance platform, emphasizing long-term shareholder value. Regulatory and shareholder approvals are pending, with the closing expected between Q4 2024 and Q1 2025.
Advisors include Moelis & Company (financial), Debevoise & Plimpton (legal) for Ambac, and BlackRock Financial Markets Advisory (valuation), Kirkland & Ellis (legal) for Oaktree. A conference call with Ambac's CEO and CFO will be held on June 5, 2024.
Ambac Financial Group, Inc. reported positive first quarter 2024 results with net income of $20 million and Adjusted net income of $38 million. The Legacy Financial Guarantee segment, Specialty P&C Insurance, and Insurance Distribution all generated positive net income. Total P&C Premium Production increased by 45% from the previous year. Book value per share was $30.19, up marginally from the prior quarter. Ambac continues to focus on disciplined underwriting and growth in premium production.
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