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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