AMBAC Financial Group Files 10-Q for Q2 2024

TL;DR

AMBAC 10-Q filed: Financials updated, fixed income investments detailed. All good.

AI Summary

AMBAC Financial Group, Inc. filed its 10-Q for the period ending June 30, 2024. The filing details their financial position, including investments in fixed income securities. The company's fiscal year ends on December 31st, and its principal executive offices are located at One World Trade Center, New York, NY.

Why It Matters

This filing provides investors with an update on AMBAC's financial health and investment portfolio, crucial for understanding the company's stability and future prospects.

Risk Assessment

Risk Level: medium — The filing is a routine quarterly report, but the nature of financial services and investments carries inherent market risks.

Key Numbers

• 1231 — Fiscal Year End (Indicates the end of the company's annual accounting period.)
• 2126587470 — Business Phone (Contact number for the company's business operations.)

Key Players & Entities

• AMBAC FINANCIAL GROUP INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240805 (date) — Filing Date
• One World Trade Center (location) — Business Address

FAQ

Key Financial Figures

• $0.01 — hich registered Common stock par value $0.01 per share AMBC New York Stock Exchange
• $0 — tax provision (benefit) of $ 0 , $ 0 , $0 and $0 1 21 ( 7 ) 37 Credit risk chan

Filing Documents

• ambc-20240630.htm (10-Q) — 4595KB
• a02-033ambcxex3x1x2q24x10q.htm (EX-3.1) — 147KB
• a02-033ambcxex31x1x2q24x10q.htm (EX-31.1) — 9KB
• a02-033ambcxex31x2x2q24x10q.htm (EX-31.2) — 9KB
• a02-033ambcxex32x1x2q24x10q.htm (EX-32.1) — 8KB
• ambc-20240630_g1.jpg (GRAPHIC) — 27KB
• ambc-20240630_g2.jpg (GRAPHIC) — 23KB
• ambc-20240630_g3.jpg (GRAPHIC) — 23KB
• ambc-20240630_g4.jpg (GRAPHIC) — 30KB
• ambc-20240630_g5.jpg (GRAPHIC) — 31KB
• 0000874501-24-000172.txt ( ) — 23584KB
• ambc-20240630.xsd (EX-101.SCH) — 106KB
• ambc-20240630_cal.xml (EX-101.CAL) — 101KB
• ambc-20240630_def.xml (EX-101.DEF) — 1007KB
• ambc-20240630_lab.xml (EX-101.LAB) — 1172KB
• ambc-20240630_pre.xml (EX-101.PRE) — 1173KB
• ambc-20240630_htm.xml (XML) — 4839KB

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 55 Consolidated Balance Sheets (Unaudited) 2 Ambac Assurance UK Limited Financial Results Under UK Accounting Principles 55 Consolidated Statements of Total Comprehensive Income (Loss) (Unaudited) 3 Non-GAAP Financial Measures 55 Consolidated Statements of Stockholders' Equity (Unaudited) 4 3 Quantitative and Qualitative Disclosures About Market Risk 57 Consolidated Statements of Cash Flows (Unaudited) 5 4 Controls and Procedures 57 Notes to Unaudited Consolidated Financial Statements 6 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 37

OTHER INFORMATION

PART II. OTHER INFORMATION Overview 37 1 Legal Proceedings 58 Critical Accounting Policies and Estimates 40 1A Risk Factors 58 Financial Guarantees in Force 40 2 Unregistered Sales of Equity Securities and Use of Proceeds 60 Results of Operations 42 3 Defaults Upon Senior Securities 60 Liquidity and Capital Resources 48 5 Other Information 60 Balance Sheet 50 6 Exhibits 60 Variable Interest Entities 54

SIGNATURES

SIGNATURES 61 Accounting Standards 54 Ambac Financial Group, Inc. i Second 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

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 June 30, December 31, (Dollars in millions, except share data) (June 30, 2024 (Unaudited)) 2024 2023 Assets: Investments: Fixed maturity securities - available-for-sale, at fair value (amortized cost of $ 1,737 and $ 1,744 ) $ 1,703 $ 1,710 Fixed maturity securities pledged as collateral, at fair value (amortized cost of $ 27 and $ 0 ) 25 — Fixed maturity securities - trading, at fair value 31 27 Short-term investments, at fair value (amortized cost of $ 314 and $ 426 ) 314 426 Short-term investments pledged as collateral, at fair value (amortized cost of $ 0 and $ 27 ) — 27 Other investments (includes $ 533 and $ 463 at fair value) 558 475 Total investments (net of allowance for credit losses of $ 3 and $ 3 ) 2,632 2,664 Cash and cash equivalents (including $ 11 and $ 12 of restricted cash) 35 28 Premium receivables (net of allowance for credit losses of $ 3 and $ 4 ) 317 290 Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $ 0 and $ 0 ) 277 195 Deferred ceded premium 232 204 Deferred acquisition costs 12 11 Subrogation recoverable 128 137 Intangible assets, less accumulated amortization 285 307 Goodwill 70 70 Other assets 163 129 Variable interest entity assets: Fixed maturity securities, at fair value 2,101 2,167 Restricted cash 62 246 Loans, at fair value 1,567 1,663 Derivative and other assets 303 318 Total assets $ 8,184 $ 8,428 Liabilities and Stockholders' Equity: Liabilities: Unearned premiums $ 445 $ 422 Loss and loss adjustment expense reserves 890 893 Ceded premiums payable 140 90 Deferred program fees and reinsurance commissions 7 6 Long-term debt 515 508 Accrued interest payable 500 475 Other liabilities 203 199 Variable interest entity liabilities: Long-term debt (includes $ 2,599 and $ 2,710 at

Business

Business The following description provides an update of Note 1. Background and Business Description and Note 2. Basis of Presentation and Significant Accounting Policies in the Notes to the Consolidated Financial Statements included in Part II, Item 8 in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and should be read in conjunction with the complete descriptions provided in the Form 10-K. Capitalized terms used, but not defined herein, and in the other footnotes to the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q shall have the meanings ascribed thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Ambac Financial Group, Inc. ("AFG"), headquartered in New York City, is a specialty insurance holding company incorporated in the state of Delaware on April 29, 1991 . References to "Ambac," the "Company," "we," "our," and "us" are to AFG and its subsidiaries, as the context requires. Ambac's principal businesses include: Specialty Property & Casualty Insurance — Ambac's Specialty Property & Casualty Insurance program business. Currently includes six carriers (collectively, "Everspan"). Everspan carriers have an A.M. Best rating of 'A-' (Excellent) that was affirmed on June 13, 2024. Insurance Distribution — Ambac's specialty property and casualty ("P&C") insurance distribution business, which could include Managing General Agents and Underwriters (collectively "MGAs"), insurance brokers, and other distribution businesses. At June 30, 2024 Ambac's insurance distribution platform includes five businesses that operate in the following lines of business: accident and health, specialty commercial automobile insurance for specific "for-hire" auto clauses, marine and international risk and professional liability. Legacy Financial Guarantee Insurance — Ambac's legacy financial guarantee business includes the activities of Ambac Assurance Corporation ("AAC") and its who

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