AMBAC Financial Group 10-Q Filing

TL;DR

AMBAC 10-Q filed: Fixed income securities and collateral details out. Check financials.

AI Summary

AMBAC Financial Group, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details their financial position, including fixed income securities and collateral pledged. The company's principal executive offices are located at One World Trade Center, New York, NY.

Why It Matters

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

Risk Assessment

Risk Level: medium — As a financial services company, AMBAC is subject to market and credit risks inherent in its investment and insurance operations.

Key Numbers

• N/A — Total Assets (Specific asset figures were not readily extractable from the provided text snippet.)
• N/A — Total Liabilities (Specific liability figures were not readily extractable from the provided text snippet.)
• N/A — Net Income (Specific net income figures were not readily extractable from the provided text snippet.)

Key Players & Entities

• AMBAC FINANCIAL GROUP INC (company) — Filer
• ONE WORLD TRADE CENTER (location) — Business and Mail Address
• 20240930 (date) — Period of Report
• 20241112 (date) — Filing Date

FAQ

Key Financial Figures

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

Filing Documents

• ambc-20240930.htm (10-Q) — 4926KB
• a02-034ambcxex31x1x3q24x10q.htm (EX-31.1) — 9KB
• a02-034ambcxex31x2x3q24x10q.htm (EX-31.2) — 9KB
• a02-034ambcxex32x1x3q24x10q.htm (EX-32.1) — 8KB
• ambc-20240930_g1.jpg (GRAPHIC) — 27KB
• ambc-20240930_g2.jpg (GRAPHIC) — 23KB
• ambc-20240930_g3.jpg (GRAPHIC) — 23KB
• ambc-20240930_g4.jpg (GRAPHIC) — 31KB
• ambc-20240930_g5.jpg (GRAPHIC) — 31KB
• 0000874501-24-000245.txt ( ) — 24961KB
• ambc-20240930.xsd (EX-101.SCH) — 118KB
• ambc-20240930_cal.xml (EX-101.CAL) — 101KB
• ambc-20240930_def.xml (EX-101.DEF) — 1095KB
• ambc-20240930_lab.xml (EX-101.LAB) — 1304KB
• ambc-20240930_pre.xml (EX-101.PRE) — 1268KB
• ambc-20240930_htm.xml (XML) — 5050KB

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 58 Consolidated Balance Sheets (Unaudited) 2 Ambac Assurance UK Limited Financial Results Under UK Accounting Principles 58 Consolidated Statements of Total Comprehensive Income (Loss) (Unaudited) 3 Non-GAAP Financial Measures 58 Consolidated Statements of Stockholders' Equity (Unaudited) 4 3 Quantitative and Qualitative Disclosures About Market Risk 60 Consolidated Statements of Cash Flows (Unaudited) 5 4 Controls and Procedures 60 Notes to Unaudited Consolidated Financial Statements 6 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 39

OTHER INFORMATION

PART II. OTHER INFORMATION Overview 39 1 Legal Proceedings 61 Critical Accounting Policies and Estimates 42 1A Risk Factors 61 Financial Guarantees in Force 42 2 Unregistered Sales of Equity Securities and Use of Proceeds 76 Results of Operations 45 3 Defaults Upon Senior Securities 76 Liquidity and Capital Resources 51 5 Other Information 77 Balance Sheet 53 6 Exhibits 76 Variable Interest Entities 58

SIGNATURES

SIGNATURES 77 Accounting Standards 58 Ambac Financial Group, Inc. i Third 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 September 30, December 31, (Dollars in millions, except share data) (September 30, 2024 (Unaudited)) 2024 2023 Assets: Investments: Fixed maturity securities - available-for-sale, at fair value (amortized cost of $ 1,737 and $ 1,744 ) $ 1,740 $ 1,710 Fixed maturity securities pledged as collateral, at fair value (amortized cost of $ 27 and $ 0 ) 27 — Fixed maturity securities - trading, at fair value — 27 Short-term investments, at fair value (amortized cost of $ 305 and $ 426 ) 305 426 Short-term investments pledged as collateral, at fair value (amortized cost of $ 0 and $ 27 ) — 27 Other investments (includes $ 535 and $ 463 at fair value) 561 475 Total investments (net of allowance for credit losses of $ 1 and $ 3 ) 2,634 2,664 Cash and cash equivalents (including $ 16 and $ 12 of restricted cash) 70 28 Premium receivables (net of allowance for credit losses of $ 3 and $ 4 ) 342 290 Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $ 0 and $ 0 ) 311 195 Deferred ceded premium 242 204 Deferred acquisition costs 13 11 Subrogation recoverable 124 137 Intangible assets, less accumulated amortization 598 307 Goodwill 434 70 Other assets 228 129 Variable interest entity assets: Fixed maturity securities, at fair value 2,238 2,167 Restricted cash 47 246 Loans, at fair value 1,651 1,663 Derivative and other assets 326 318 Total assets $ 9,256 $ 8,428 Liabilities and Stockholders' Equity: Liabilities: Unearned premiums $ 458 $ 422 Loss and loss adjustment expense reserves 938 893 Ceded premiums payable 165 90 Deferred program fees and reinsurance commissions 8 6 Deferred taxes 100 19 Short-term debt 148 — Long-term debt 518 508 Accrued interest payable 515 475 Other liabilities 262 180 Variable interest entity liabili

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 an 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 five carriers (collectively, "Everspan"). Everspan carriers have an A.M. Best rating of 'A-' (Excellent) which was affirmed on June 13, 2024. Effective September 1, 2024, Consolidated National Insurance Company ("CNIC"), an admitted Everspan carrier, was sold and a gain on the sale of approximately $ 7 was recognized in other income on the Consolidated Statements of Total Comprehensive Income (Loss) for the three and nine months ended September 30, 2024. The sale of CNIC will not have any adverse impact on the group's operations or growth prospects. Insurance Distribution — Ambac's specialty property and casualty ("P&C") insurance distribution business, includes Managing General Agents and Underwriters (collectively "MGAs"), an insurance broker, and other distribution and underwriting businesses. Insurance Distribution includes Be

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