By Chris Munro

May 12 - (The Insurer) - Total premium production across Ambac’s operations surged by 70% to $317.5 million in Q1 2025 while adjusted Ebitda at its Cirrata insurance distribution business more than doubled to $12.1 million and specialty P&C carrier Everspan’s combined ratio deteriorated 3.7 points to 102.1%.

Across Ambac, the company posted an adjusted Ebitda loss from continuing operations to its shareholders for the first quarter of 2025 of $1 million compared with nil in the prior year period.

The New York-based business saw its net loss from continuing operations to its shareholders deepen by $12 million year on year to $16 million in Q1 2025.

As Ambac explained, that increased net loss came about mainly due to greater intangible amortization and interest expense related to its acquisition of Beat Capital last year.

Fuelled by the integration of last year’s Beat deal, Cirrata’s insurance distribution premiums placed increased 156% year on year to $230.6 million in 2025’s first quarter.

That increase more than offset a 10% year on year decline in fronting carrier Everspan’s gross premiums written (GPW) to $86.9 million. The decrease, Ambac explained, followed last year’s decision to exit several unnamed programs.

Cirrata’s adjusted Ebitda totalled $12.1 million for the first quarter of 2025, up 136% from the prior year period, while the unit’s adjusted Ebitda margin improved by 80 basis points year on year to 29.5%.

The insurance distribution unit’s total revenue increased by 129% from 2024’s first quarter to $41 million.

“Organic growth at Cirrata met headwinds in certain A&H lines, which more than offset organic expansion across other programs,” explained Ambac.

At Everspan, net premiums written $(NPW.SI)$ fell by 31% year on year to $18.0 million.

The 3.7 point increase in the unit’s combined ratio to 102.1% came about as a rise in its expense ratio – from 22.7% to 35.2% - more than offset an 8.8 point improvement in its loss ratio from 75.7% to 66.9%.

Ambac’s president and CEO Claude LeBlanc said the company “had a strong start to the year”.

“Our increasingly diversified portfolio is being built for long-term growth and to withstand market cyclicality, such as the headwinds experienced in property and ESL this quarter.

“We are positioned to continue growing our business by focusing on specialty niches, and I am encouraged by the early indications from the MGAs we launched last year, a few of which are already profitable and all of which are trending towards consistent profitability,” LeBlanc added.

In the results print, LeBlanc gave an update on the sale of Ambac’s legacy financial guarantee business to funds managed by Oaktree Capital Management.

According to the executive, Ambac has completed all of the pre-closing conditions related to the sale of its legacy financial guarantee business, with only Wisconsin regulatory approval now needed.

“We eagerly await the close of this transaction as we look ahead to our future as a leading specialty P&C franchise,” said LeBlanc.