Ambac Finl Group Inc Stock Price, News & Analysis

Ambac Financial Group (NYSE: AMBC) has announced a partnership with Pivix Specialty Insurance Services, a new managing general agency (MGA) focusing on the excess and surplus (E&S) lines market. Pivix, led by Mike Miller, former president of Scottsdale Insurance, offers property and casualty coverages for targeted segments, including SMEs.

The partnership aligns with Ambac's goal to become the premier destination for MGAs and underwriting talent. Pivix was founded by Miller along with Ken Levine, Joe Griffith, and Sandy Vertuno, all former Nationwide executives. Ambac's distribution division, Cirrata, includes majority-owned MGAs and MGUs, reflecting the company's vision to build a premier insurance distribution platform.

Beat Capital Partners, a subsidiary of Ambac Financial Group, Inc. (NYSE: AMBC), announces the launch of proRISE Insurance Services on Oct. 1. proRISE specializes in management and professional liability insurance for small and medium-sized enterprises (SMEs). Led by industry veteran Doug Karpp, proRISE offers a range of products including private and non-profit directors and officers, employment practices liability, fiduciary liability, crime, and professional liability insurance.

Backed by A+ rated capacity, proRISE writes on behalf of a consortium led by Beat Syndicate 4242 at Lloyd's. The company will distribute its products through wholesale brokers. This launch aligns with Ambac's organic growth strategy, which aims to launch 8-10 new MGAs over multiple years.

Ambac Financial Group (NYSE: AMBC) reported its second quarter 2024 results. Key highlights include a net loss under $1 million or $0.02 per diluted share and an adjusted net income of $8 million or $0.18 per diluted share.

Insurance Distribution generated net income of $1 million and EBITDA of $2 million on $53 million of premiums placed. Specialty P&C Insurance reported gross premiums written of $111 million, up 109% from Q2 2023, and total P&C premium production of $165 million, a 75% increase.

Ambac completed the acquisition of a 60% controlling stake in Beat Capital Partners for $278 million, effective July 31, 2024. The company also agreed to sell its Legacy Financial Guarantee Business for $420 million to Oaktree Capital Management.

Other notable metrics include a 94% improvement in net income attributable to common stockholders, which stood at $(0.7) million compared to $(13.1) million in Q2 2023. EBITDA increased by 125% to $26.6 million. Gross written premiums and net premiums earned grew by 107% and 113%, respectively.

Ambac Financial Group (NYSE: AMBC) has completed its acquisition of Beat Capital Partners, a London-based insurance underwriting and managing general agency (MGA) incubation platform. Ambac purchased a 60% controlling stake in Beat, which will continue to be led by its existing management team. This acquisition doubles the size of Ambac's property and casualty insurance operation, projecting approximately $1.4 billion in premiums on an annualized basis for 2024. The deal adds immediate scale and diversification to Ambac's Cirrata Group, increasing the number of MGAs to 16. The partnership aims to strengthen Ambac's position in specialty P&C strategy and drive long-term growth and value creation for shareholders.

Ambac Financial Group, Inc. (NYSE: AMBC), a financial services holding company, has announced the release of its second quarter 2024 results on August 5, 2024, after market close. The company will host a conference call on August 6, 2024, at 8:00 a.m. ET to discuss the results.

President and CEO Claude LeBlanc and EVP and CFO David Trick will lead the call. Investors can access the call via a live audio webcast on Ambac's website or by dialing in. A replay will be available until August 20, 2024. This announcement provides shareholders and analysts with a timeline for accessing Ambac's latest financial performance data and insights from top executives.

Tara Hill Insurance Services, a program administrator under Ambac Financial Group (NYSE: AMBC), has appointed Richard Edsall as Senior Vice President. Edsall, formerly with Argo Pro, will manage Tara Hill's new excess & surplus (E&S) portfolio, which targets private management liability and professional liability for small to mid-sized risks. Tara Hill CEO Peter McKeegan highlighted Edsall's strong underwriting background and strategic skills. Additionally, Brian McKeegan joins as a Senior Underwriter from Berkley Professional Liability.

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.