Ambac Reports First Quarter 2025 Results

   -- Total revenue from continuing P&C operations increased 27% for the 
      quarter to $63 million 
 
   -- Total P&C premium production increased 70% for the quarter to $318 
      million 
NEW YORK--(BUSINESS WIRE)--May 12, 2025-- 

Ambac Financial Group, Inc. $(AMBC)$ ("Ambac" or "AFG"), an insurance holding company, today reported its results for the First Quarter 2025.

First Quarter 2025 vs. First Quarter 2024 Segment Highlights

   -- Insurance Distribution ("Cirrata") 
 
          -- Total revenue grew to $41 million for the quarter, an increase of 
             129% 
 
          -- Net loss to Shareholders of $(2) million for the quarter, down 
             145%, with a (4.3)% margin vs. 21.2% 
 
          -- Adjusted EBITDA of $12 million for the quarter, up 136%, with a 
             29.5% margin vs. 28.7% 
 
          -- Adjusted EBITDA to Shareholders of $7 million for the quarter, up 
             69%, with a 17.3% margin vs. 23.5% 
 
   -- Specialty P&C Insurance ("Everspan") 
 
          -- Loss ratio of 66.9% improved by -880 bps and Combined ratio of 
             102.1% up 370 bps 
 
          -- Net income to Shareholders of over $1 million for the quarter, 
             down slightly 
 
          -- Adjusted EBITDA to Shareholders of under $2 million for the 
             quarter, down slightly 

Claude LeBlanc, President and Chief Executive Officer, stated, "Our P&C business had a strong start to the year, with premium production up 70% to $318 million and revenue up 27% to $63 million, both compared to the first quarter of 2024, bolstered by our acquisition of Beat. 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 continued, "In addition, as previously announced, we have completed all of our pre-closing conditions related to the sale of our Legacy business, which remains subject only to Wisconsin regulatory approval. We eagerly await the close of this transaction as we look ahead to our future as a leading specialty P&C franchise."

 
              Ambac's First Quarter 2025 Summary Results 
                            Three months ended March 31, 
                        ------------------------------------ 
 ($ in thousands, 
 except per share 
 data)(1)                       2025                2024      % Change 
---------------------       ------------          ---------   -------- 
  Total revenues from 
   continuing 
   operations                     62,756             49,551        27% 
  Total expenses from 
   continuing 
   operations                     77,863             52,790        47% 
  Pretax income (loss) 
   from continuing 
   operations                    (15,107)            (3,239)      366% 
  Provision (benefit) 
   for income taxes 
   from continuing 
   operations                       (617)               130     $(575.SI)$% 
  Net income (loss) 
   from continuing 
   operations                    (14,490)            (3,369)      330% 
  Net income (loss) 
   from continuing 
   operations 
   attributable to 
   Ambac shareholders            (16,144)            (4,070)      297% 
  Net income (loss) 
   from discontinued 
   operations                    (30,247)            24,140     (225)% 
  Net income (loss) 
   attributable to 
   Ambac shareholders            (46,391)            20,070     (331)% 
  Net income (loss) 
   attributable to 
   common stockholders 
   per diluted share 
   (3)                   $         (1.22)      $       0.44     (377)% 
  Non-GAAP 
  EBITDA to 
   shareholders (2)               (5,477)            (1,627)      237% 
  Adjusted EBITDA to 
   shareholders(2)                (1,287)               384     (435)% 
  Adjusted net income 
   (loss) attributable 
   to shareholders                (6,037)              (329)     1735% 
  Per Share 
  Adjusted net income 
   (loss) to 
   shareholders per 
   diluted share (2)     $         (0.13)      $      (0.01)        NM 
  Adjusted EBITDA to 
   shareholders per 
   diluted share(2)      $         (0.03)      $       0.01     (400)% 
 
  Weighted-average 
   diluted shares 
   outstanding (in 
   millions)                      47,313             45,827 
----------------------      ------------          ---------   -------- 
 
 
(1)    Some financial data in this press release may not add up due to 
       rounding 
(2)    See Non-GAAP Financial Data section of this press release for further 
       information 
(3)    Per diluted share includes the impact of adjusting redeemable 
       noncontrolling interests to current redemption value 
 
 

First Quarter 2025 Summary*

Total revenue from continuing operations for the first quarter of 2025 was $63 million, an increase of 27% compared to the $50 million in the same prior-year period. This increase was primarily due to the inclusion of Beat Capital, which more than offset a managed reduction to earned premium at Everspan following last year's decision to exit several programs. Organic growth at Cirrata met headwinds in certain A&H lines, which more than offset organic expansion across other programs.

Total expenses from continuing operations for the first quarter of 2025 were $78 million, an increase of 48% compared to the $53 million in the same prior-year period. The increase was primarily due to an increase in G&A expenses from the inclusion of Beat, professional and advisor fees related to transactions, and intangible amortization and interest expense, both of which relate to the Beat acquisition. These increases more than offset the lower losses and loss adjustment expenses at Everspan from the exit of several retained programs.

Net loss from continuing operations to Ambac shareholders for the first quarter of 2025 increased by $12 million to $(16) million compared to the $(4) million in the same prior-year period. The increase was driven by increased intangible amortization and interest expense related to the acquisition of Beat.

Adjusted EBITDA from continuing operations to Ambac shareholders for the first quarter of 2025 was $(1) million compared to $0 million in the same prior-year period. For the quarter, Cirrata's $3 million increase in Adjusted EBITDA over the same prior-year period was more than offset by elevated holding company expenses, which included an allocation adjustment related to discontinued operations, a portion of which will unwind in connection with the closing of the sale of the Legacy business, and a slight contraction at Everspan. For the quarter, the consolidated Adjusted EBITDA margin, prior to any reduction for non-controlling interests, was 5.9% compared to 2.6% in the same prior-year period.

* For definition of each non-GAAP measures referred to above, as well as reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.

Earnings Call and Webcast

On May 13, 2025, at 8:30am ET, Claude LeBlanc, President and Chief Executive Officer, and David Trick, Executive Vice President and Chief Financial Officer, will discuss Ambac's first quarter 2025 results during a conference call. A live audio webcast of the call will be available through the Investor Relations section of Ambac's website, https://ambac.com/investor-relations/events-and-presentations/. Participants may also listen via telephone by dialing (877) 407-9716 (Domestic) or (201) 493-6779 (International).

The webcast will be archived on Ambac's website. A replay of the call will be available through May 27, 2025, and can be accessed by dialing (Domestic) (844) 512-2921 or (International) (412) 317-6671; and using ID#13753308

Additional information is included in an operating supplement and presentations at Ambac's website at www.ambac.com.

Results of Operations by Segment

Insurance Distribution Segment

 
                                Three Months Ended March 31, 
                            ------------------------------------ 
 ($ in thousands)             2025         2024        % Change 
------------------------     ------       ------      ---------- 
 Total revenues             $40,998      $17,865            129% 
 Pretax income (loss)       $(2,243)     $ 3,973          (156)% 
 Pretax income (loss) to 
  shareholders              $(3,897)     $ 3,270          (219)% 
 EBITDA to shareholders     $ 7,083      $ 4,202             69% 
 Adjusted EBITDA            $12,112      $ 5,122            136% 
 Adjusted EBITDA to 
  shareholders              $ 7,112      $ 4,202             69% 
 Pretax income margin to 
  shareholders(1)              (5.5)%       22.2%     (1248) bps 
 Adjusted EBITDA margin to 
  shareholders(2)              17.3%        23.5%      (264) bps 
 Organic Growth                (2.1)%        7.7% 
--------------------------   ------       ------      ---------- 
 
 
(1)    Represents Pretax income divided by total revenues 
(2)    See Non-GAAP Financial Data section of this press release for further 
       information 
 
 

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