AMBAC FINANCIAL GROUP INC Files 10-Q for Q1 2024

TL;DR

<b>AMBAC FINANCIAL GROUP INC has filed its Q1 2024 10-Q report.</b>

AI Summary

AMBAC FINANCIAL GROUP INC (OSG) filed a Quarterly Report (10-Q) with the SEC on May 6, 2024. AMBAC FINANCIAL GROUP INC filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's primary SIC code is SURETY INSURANCE [6351]. AMBAC FINANCIAL GROUP INC is incorporated in Delaware. The company's fiscal year ends on December 31.

Why It Matters

For investors and stakeholders tracking AMBAC FINANCIAL GROUP INC, this filing contains several important signals. This filing provides investors with the latest financial performance and operational details for AMBAC FINANCIAL GROUP INC. Understanding the Q1 2024 results is crucial for assessing the company's current financial health and future prospects.

Risk Assessment

Risk Level: low — AMBAC FINANCIAL GROUP INC shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain immediate, significant financial or operational changes that would elevate the risk profile.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to understand AMBAC FINANCIAL GROUP INC's performance and potential challenges.

Key Numbers

• 2024-03-31 — Reporting Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-06 — Filing Date (FILED AS OF DATE)
• 6351 — Standard Industrial Classification (SIC Code for Surety Insurance)
• DE — State of Incorporation (Incorporated in Delaware)
• 1231 — Fiscal Year End (Year-end closing date)

Key Players & Entities

• AMBAC FINANCIAL GROUP INC (company) — FILER
• 0000874501-24-000128 (filing_id) — ACCESSION NUMBER
• 20240331 (date) — CONFORMED PERIOD OF REPORT
• 20240506 (date) — FILED AS OF DATE
• 6351 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (state) — STATE OF INCORPORATION
• 1231 (date) — FISCAL YEAR END
• 10-Q (form_type) — FORM TYPE

FAQ

Industry Context

AMBAC FINANCIAL GROUP INC operates within the surety insurance industry, providing financial guarantees for various contractual obligations.

Regulatory Implications

As a surety insurer, the company is subject to state-specific insurance regulations and federal financial reporting requirements under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the balance sheet for changes in investments and liabilities.
2. Review any disclosures related to contingent liabilities or legal proceedings.
3. Compare key financial metrics to prior periods to identify trends.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-06: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing an update from the previous 10-K filing.

Key Financial Figures

• $0.01 — hich registered Common stock par value $0.01 per share AMBC New York Stock Exchange

Filing Documents

• ambc-20240331.htm (10-Q) — 3784KB
• a02-032ambcxex101x1q24x10q.htm (EX-10.1) — 27KB
• a02-032ambcxex102x1q24x10q.htm (EX-10.2) — 28KB
• a02-032ambcxex103x1q24x10q.htm (EX-10.3) — 70KB
• a02-032ambcxex104x1q24x10q.htm (EX-10.4) — 71KB
• a02-032ambcxex31x1x1q2410q.htm (EX-31.1) — 9KB
• a02-032ambcxex31x2x1q24x10q.htm (EX-31.2) — 9KB
• a02-032ambcxex32x1x1q24x10q.htm (EX-32.1) — 8KB
• ambc-20240331_g1.jpg (GRAPHIC) — 27KB
• ambc-20240331_g2.jpg (GRAPHIC) — 23KB
• ambc-20240331_g3.jpg (GRAPHIC) — 23KB
• ambc-20240331_g4.jpg (GRAPHIC) — 28KB
• ambc-20240331_g5.jpg (GRAPHIC) — 29KB
• 0000874501-24-000128.txt (&nbsp;) — 21008KB
• ambc-20240331.xsd (EX-101.SCH) — 104KB
• ambc-20240331_cal.xml (EX-101.CAL) — 105KB
• ambc-20240331_def.xml (EX-101.DEF) — 1017KB
• ambc-20240331_lab.xml (EX-101.LAB) — 1180KB
• ambc-20240331_pre.xml (EX-101.PRE) — 1183KB
• ambc-20240331_htm.xml (XML) — 4008KB

FINANCIAL INFORMATION PART I (CONTINUED)

PART I. FINANCIAL INFORMATION PART I (CONTINUED) 1 Unaudited Consolidated Financial Statements of Ambac Financial Group, Inc. and Subsidiaries U.S. Insurance Statutory Basis Financial Results 49 Consolidated Balance Sheets (Unaudited) 2 Ambac Assurance UK Limited Financial Results Under UK Accounting Principles 50 Consolidated Statements of Total Comprehensive Income (Loss) (Unaudited) 3 Non-GAAP Financial Measures 50 Consolidated Statements of Stockholders' Equity (Unaudited) 4 3 Quantitative and Qualitative Disclosures About Market Risk 51 Consolidated Statements of Cash Flows (Unaudited) 5 4 Controls and Procedures 51 Notes to Unaudited Consolidated Financial Statements 6 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 33

OTHER INFORMATION

PART II. OTHER INFORMATION Executive Summary 33 1 Legal Proceedings 52 Critical Accounting Policies and Estimates 35 1A Risk Factors 52 Financial Guarantees in Force 35 2 Unregistered Sales of Equity Securities and Use of Proceeds 52 Results of Operations 38 3 Defaults Upon Senior Securities 52 Liquidity and Capital Resources 43 5 Other Information 53 Balance Sheet 45 6 Exhibits 52 Variable Interest Entities 49

SIGNATURES

SIGNATURES 53 Accounting Standards 49 Ambac Financial Group, Inc. i First Quarter 2024 Form 10-Q Table of Contents CAUTIONARY STATEMENT PURSUANT TO THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 Management has included in Parts I and II of this Quarterly Report on Form 10-Q, statements that may constitute "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "estimate," "project," "plan," "believe," "anticipate," "intend," "planned," "potential" and similar expressions, or future or conditional verbs such as "will," "should," "would," "could," and "may," or the negative of those expressions or verbs, identify forward-looking statements. We caution readers that these statements are not guarantees of future performance. Forward-looking statements are not historical facts but instead represent only our beliefs regarding future events, which may by their nature be inherently uncertain and some of which may be outside our control. These statements may relate to plans and objectives with respect to the future, among other things which may change. We are alerting you to the possibility that our actual results may differ, possibly materially, from the expected objectives or anticipated results that may be suggested, expressed or implied by these forward-looking statements. Important factors that could cause our results to differ, possibly materially, from those indicated in the forward-looking statements include, among others, those discussed under "Risk Factors" in Part I, Item 1A of the 2023 Annual Report on Form 10-K and in Part II, Item 1A of this quarterly Report on Form 10-Q. Any or all of management's forward-looking statements here or in other publications may turn out to be incorrect and are based on management's current belief or opinions. Ambac Financial Group's ("AFG") and its subsidiaries' (collectively, "Ambac" or the "Company") actual results may v

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Financial Statements of Ambac Financial Group, Inc. and Subsidiaries

Item 1. Unaudited Financial Statements of Ambac Financial Group, Inc. and Subsidiaries AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, December 31, (Dollars in millions, except share data) (March 31, 2024 (Unaudited)) 2024 2023 Assets: Investments: Fixed maturity securities - available-for-sale, at fair value (amortized cost of $ 1,726 and $ 1,744 ) $ 1,687 $ 1,710 Fixed maturity securities pledged as collateral, at fair value (amortized cost of $ 27 and $ 0 ) 26 — Fixed maturity securities - trading, at fair value 29 27 Short-term investments, at fair value (amortized cost of $ 382 and $ 426 ) 382 426 Short-term investments pledged as collateral, at fair value (amortized cost of $ 0 and $ 27 ) — 27 Other investments (includes $ 546 and $ 463 at fair value) 558 475 Total investments (net of allowance for credit losses of $ 2 and $ 3 ) 2,682 2,664 Cash and cash equivalents (including $ 11 and $ 12 of restricted cash) 44 28 Premium receivables (net of allowance for credit losses of $ 3 and $ 4 ) 299 290 Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $ 0 and $ 0 ) 224 195 Deferred ceded premium 217 204 Deferred acquisition costs 12 11 Subrogation recoverable 130 137 Intangible assets, less accumulated amortization 293 307 Goodwill 70 70 Other assets 129 129 Variable interest entity assets: Fixed maturity securities, at fair value 2,162 2,167 Restricted cash 252 246 Loans, at fair value 1,604 1,663 Derivative and other assets 313 318 Total assets $ 8,429 $ 8,428 Liabilities and Stockholders' Equity: Liabilities: Unearned premiums $ 429 $ 422 Loss and loss adjustment expense reserves 851 893 Ceded premiums payable 110 90 Deferred program fees and reinsurance commissions 7 6 Long-term debt 512 508 Accrued interest payable 487 475 Other liabilities 259 199 Variable interest entity liabilities: Long-term debt (includes $ 2,671 and $ 2,710

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