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Ambac Reports Third Quarter 2025 Results
•Total P&C premium production increased 32% for the quarter to $343 million
•Insurance Distribution Segment
◦Total revenue grew to $43 million for the quarter, an increase of 80%
◦Organic revenue growth equaled 40.0%
◦Net loss to Shareholders of $(5) million for the quarter
◦Adjusted EBITDA of $10 million for the quarter, up 272%
◦Adjusted EBITDA to Shareholders of $6 million for the quarter, up 183%
•Specialty P&C Insurance ("Everspan")
◦Gross and net premiums written of $97 million and $18 million were down 16% and 46%, respectively
◦Net loss to Shareholders was $0.1 million
•AFG completed the repurchase of 3.1 million shares during October at an average price of $8.48(1). These repurchases represented 6.7% of shares outstanding and 6.5% of basic weighted shares outstanding as last reported
(1) Represents total cost including broker commissions divided by shares repurchased
NEW YORK, NY, November 10, 2025 (BUSINESS WIRE) -- Ambac Financial Group, Inc. (NYSE: AMBC) ("Ambac" or "AFG"), an insurance holding company, today reported its results for the Third Quarter 2025.
Claude LeBlanc, President and Chief Executive Officer, stated, "Having successfully completed the sale of our legacy financial guarantee business in late September, our sole focus is now on the growth and profitability of our specialty P&C businesses, including a seamless integration of recently acquired ArmadaCare. Bolstered by our 2024 acquisition of Beat, our insurance distribution business delivered strong reported and organic growth this quarter, reinforcing our strategic momentum and driving higher operating and earnings margins. Adverse loss experience in the quarter unfavorably affected Everspan's results, validating the decision to exit a commercial auto program last year to protect the long-term performance of our book. We expect Everspan's combined ratios will improve as the platform reaches scale between 2026 and 2027. We remain highly confident in Ambac's strategic direction and future prospects, as demonstrated by our repurchase of over 3 million of our shares in October."
LeBlanc continued, “During the third quarter we were also excited to expand our partnership with Pivix--an MGA we believe holds significant growth potential--and, more recently, to announce the launch of 1889 Specialty, our latest de-novo MGA venture."
    

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Ambac's Third Quarter 2025 Summary Results
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per share data)1
20252024% Change 20252024% Change
Total revenues from continuing operations 66,606 70,005 (5)%184,319 170,593 8%
Total expenses from continuing operations 98,685 90,762 (9)%254,479 209,338 (22)%
Pretax income (loss) from continuing operations(32,079)(20,757)(55)%(70,160)(38,745)(81)%
Provision (benefit) for income taxes from continuing operations(1,241)(867)NM(4,030)(767)NM
Net income (loss) from continuing operations(30,838)(19,890)(55)%(66,130)(37,978)(74)%
Net income (loss) from continuing operations attributable to Ambac shareholders, net of tax(31,730)(18,117)(75)%(68,422)(37,119)(84)%
Net income (loss) from discontinued operations(80,890)(9,386)NM(163,288)28,936 NM
Net income (loss) attributable to Ambac shareholders(112,620)(27,503)NM(231,710)(8,183)NM
Net income (loss) attributable to stockholders per diluted share 3
$(2.35)$(0.63)NM$(5.11)$(0.23)NM
Non-GAAP
EBITDA to shareholders 2
(20,075)(10,465)(92)%(35,418)(26,573)(33)%
Adjusted EBITDA to shareholders2
(2,856)1,905 NM(8,734)1,678 NM
Adjusted net income (loss) attributable to shareholders(9,957)(1,654)NM(26,546)(2,929)NM
Per Share
Adjusted net income (loss) to shareholders per diluted share 2
$(0.21)$(0.03)NM$(0.56)$(0.06)NM
Adjusted EBITDA to shareholders per diluted share2
$(0.06)$0.04 NM$(0.09)$0.04 NM
Weighted-average diluted shares outstanding
48,106 47,689 47,862 46,581 
(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


Third Quarter 2025 Summary*
Total revenue from continuing operations for the third quarter of 2025 was $67 million, a decrease of 5% compared to the $70 million in the same prior-year period. This decrease was mostly due to a managed reduction in earned premiums at Everspan, and the impact of a $4.9 million realized gain on an FX hedge and a $7.5 million gain on the sale of CNIC in the third quarter of 2024. These items more than offset strong revenue growth in our Insurance Distribution segment which experienced 40.0% organic revenue growth this quarter.
Total expenses from continuing operations for the third quarter of 2025 were $99 million, an increase of 9% compared to the $91 million in the same prior-year period. This increase was primarily due to an increase in G&A expenses, intangible amortization and interest expense, most of which related to the acquisition and growth of Beat. G&A expenses also included costs associated with the exit from the financial guarantee business and the acquisition of ArmadaCare. These increases more than offset lower nominal losses, loss adjustment and acquisition expenses at Everspan.
Net loss from continuing operations to Ambac shareholders for the third quarter of 2025 increased by $(14) million to $(32) million compared to the $(18) million in the same prior-year period. The increase was driven by the factors highlighted above.
Adjusted EBITDA from continuing operations to Ambac shareholders for the third quarter of 2025 was $(3) million compared to $2 million in the same prior-year period driven by lower Adjusted EBITDA at Everspan, the FX hedge gain realized in 3Q 2024 and expenses incurred related to M&A and legacy litigation, which collectively more than offset the improved results in Insurance Distribution.



* 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.
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Earnings Call and Webcast
On November 11, 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 third 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 or (201) 493-6779.
The webcast will be archived on Ambac's website. A replay of the call will be available through November 25, 2025, and can be accessed by dialing (Domestic) (844) 512-2921 or (International) (412) 317-6671; and using ID#13755834
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 September 30,Nine Months Ended September 30,
($ in thousands)20252024% Change20252024% Change
Total revenues$43,222 $23,995 80 %$117,261 $55,166 113 %
Pretax income (loss)$(5,747)$(7,949)28 %$(18,159)$(2,851)(537)%
Pretax income (loss) to shareholders$(6,639)$(6,176)(7)%$(20,451)$(1,994)(926)%
EBITDA$9,855 $2,425 306 %$26,640 $9,825 171 %
EBITDA to shareholders1
$5,928 $1,868 217 %$15,508 $7,918 96 %
Adjusted EBITDA$9,955 $2,673 272 %$26,647 $10,067 165 %
Adjusted EBITDA to shareholders1
$5,988 $2,116 183 %$15,599 $8,160 91 %
Pretax income margin to shareholders2
(13.3)%(33.1)%598 bps(15.5)%(5.2)%(1981)bps
Adjusted EBITDA margin to shareholders1,3
13.9 %8.8 %580 bps13.3 %14.8 %(101)bps
Organic Growth 40.0 %12.6 %26.1 %N/A
(1) After the impact of noncontrolling interests
(2)Represents Pretax income divided by total revenues
(3) See Non-GAAP Financial Data section of this press release for further information

Specialty Property & Casualty Insurance Segment
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)20252024% Change20252024% Change
Gross premium written$97,185 $115,154 (16)%$280,347 $322,782 (13)%
Net premiums written$17,777 $32,754 (46)%$50,988 $91,290 (44)%
Net premiums earned$17,027 $27,441 (38)%$48,908 $80,074 (39)%
Total revenue$22,774 $40,132 (43)%$65,335 $101,502 (36)%
Net income (loss) from continuing operations$(53)$7,990 (101)%$1,799 $8,632 (79)%
Adjusted EBITDA to shareholders$49 $1,591 (97)%$2,319 $2,439 (5)%
Loss Ratio 84.5 %74.4 %(1010) bps73.3 %78.4 %510  bps
Expense Ratio28.4 %26.1 %(230) bps34.1 %24.4 %(970) bps
Combined Ratio112.9 %100.5 %(1240) bps107.4 %102.8 %(460) bps
(1) See Non-GAAP Financial Data section of this press release for further information
AFG Corporate (holding company only)
AFG on a standalone basis, excluding its ownership interests in its Specialty P&C Insurance and Insurance Distribution subsidiaries, had net assets of $256 million as of September 30, 2025. Assets included cash and liquid securities of $227 million and other investments of $30 million.
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Consolidated Ambac Financial Group, Inc. Stockholders' Equity and NCI Impact to EPS
Stockholders’ equity attributable to common shareholders at September 30, 2025, was $843,384, or $18.06 per share compared to $859,839 or $18.53 per share as of June 30, 2025. The decline was primarily a result of the net loss from continuing operations attributable to common shareholders of $(31) million partially offset by an increase to equity from the warrant issuance of $17,000.
Share Repurchase
Subsequent to September 30, 2025, AFG repurchased in the open market over 3.1 million shares of its outstanding common stock through a 10B5-1 program. These repurchases represented 6.7% of shares outstanding and 6.5% of basic weighted shares outstanding as last reported.
Calculation of Earnings Per Share
Diluted net income per share is computed by dividing net income attributable to shareholders, including adjustments to the redemption value of redeemable noncontrolling interests, by the basic weighted-average shares outstanding plus all potentially dilutive common shares outstanding during the period. The following table provides a reconciliation of net income attributable to shareholders to the numerator in the diluted earnings per share calculation, together with the resulting earnings per share amounts:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per share data)
2025202420252024
Net income (loss) from continuing operations attributable to shareholders$(31,730)$(18,117)$(68,422)$(37,119)
Adjustment for Redeemable NCI(569)(2,402)$(12,993)$(2,533)
Numerator of diluted EPS$(32,299)$(20,519)$(81,415)$(39,652)
Per Share — Diluted$(0.67)$(0.43)$(1.70)$(0.85)
Net income (loss) attributable to Ambac shareholders$(112,620)$(27,503)$(231,710)$(8,183)
Adjustment for Redeemable NCI(569)(2,402)(12,993)(2,533)
Numerator of diluted EPS$(113,189)$(29,905)$(244,703)$(10,716)
Per Share — Diluted$(2.35)$(0.63)$(5.11)$(0.23)
WASO-Diluted48,106 47,689 47,862 46,581 
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AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Income (Loss) (Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands, except share data)2025202420252024
Revenues:
Commissions$36,059 $23,064 $103,152 $54,014 
Servicing and other fees4,855 2,266 14,291 2,266 
Net premiums earned17,027 27,441 48,908 80,074 
Program fees3,590 3,622 10,739 9,517 
Investment income2,666 3,488 8,090 10,891 
Other2,408 10,124 (862)13,831 
Total revenues66,606 70,005 184,319 170,593 
Expenses:
Commissions11,167 9,499 28,935 27,209 
Losses and loss adjustment expenses14,386 20,421 35,860 62,800 
Policy acquisition costs3,491 5,993 11,031 15,816 
General and administrative53,710 44,000 132,781 89,436 
Intangible amortization and depreciation9,746 7,104 28,663 10,332 
Interest6,185 3,745 17,209 3,745 
Total expenses98,685 90,762 254,479 209,338 
Pretax income (loss) from continuing operations(32,079)(20,757)(70,160)(38,745)
Provision (benefit) for income taxes from continuing operations(1,241)(867)(4,030)(767)
Net income (loss) from continuing operations(30,838)(19,890)(66,130)(37,978)
Net income (loss) from discontinued operations(80,890)(9,386)(163,288)28,936 
Net income (loss)(111,728)(29,276)(229,418)(9,042)
Net (gain) loss attributable to noncontrolling interest(892)1,773 (2,292)859 
Net income (loss) attributable to shareholders$(112,620)$(27,503)$(231,710)$(8,183)
Net income (loss) from continuing operations attributable to shareholders$(31,730)$(18,117)$(68,422)$(37,119)
Net income (loss) from discontinued operations attributable to shareholders(80,890)(9,386)(163,288)28,936 
Net income (loss) attributable to shareholders$(112,620)$(27,503)$(231,710)$(8,183)
Net income (loss) from continuing operations per share attributable to shareholders
Basic$(0.67)$(0.43)$(1.70)$(0.85)
Diluted$(0.67)$(0.43)$(1.70)$(0.85)
Net income (loss) per share attributable to shareholders
Basic$(2.35)$(0.63)$(5.11)$(0.23)
Diluted$(2.35)$(0.63)$(5.11)$(0.23)
Weighted average number of common shares outstanding:
Basic48,106,069 47,688,986 47,862,071 46,580,518 
Diluted48,106,069 47,688,986 47,862,071 46,580,518 
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AMBAC FINANCIAL GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Unaudited)
($ in thousands, except share data)September 30,
2025		June 30,
2025
Assets:
Investments:
Fixed maturity securities, at fair value (amortized cost: $132,617 and $163,183)$131,101 $161,335 
Short-term investments, at fair value (amortized cost: $295,815 and $102,719)295,825 102,720 
Other investments (includes $7,684 and $7,486 at fair value)28,302 28,193 
Total investments (net of allowance for credit losses of $0 and $0)455,228 292,248 
Cash and cash equivalents (including $24,247 and $17,669 of restricted cash)51,767 46,383 
Premium receivables (net of allowance for credit losses of $200 and $142)74,760 71,875 
Commission and fees receivable75,480 72,619 
Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of $338 and $338)440,462 376,445 
Deferred ceded premium160,906 155,582 
Policy acquisition costs9,284 9,407 
Intangible assets, less accumulated amortization339,197 353,904 
Goodwill445,382 451,808 
Other assets95,424 99,698 
Assets of discontinued operations— 6,592,417 
Total assets$2,147,890 $8,522,386 
Liabilities and Stockholders’ Equity:
Liabilities:
Unearned premiums$197,133 $191,060 
Loss and loss adjustment expense reserves437,539 383,969 
Ceded premiums payable87,635 90,557 
Deferred program fees and reinsurance commissions7,754 7,346 
Deferred taxes68,865 72,003 
Short-term debt— 150,000 
Accrued interest payable— 2,944 
Commission payable109,317 96,875 
Other liabilities92,226 95,900 
Liabilities of discontinued operations— 6,213,024 
Total liabilities1,000,469 7,303,678 
Redeemable noncontrolling interest188,247 190,347 
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 20,000,000 shares authorized shares; issued and outstanding shares—none— — 
Common stock, par value $0.01 per share; 130,000,000 shares authorized; issued shares: 48,876,882 and 48,875,167489 489 
Additional paid-in capital367,077 347,939 
Accumulated other comprehensive income (loss)11,780 (66,013)
Retained earnings491,733 607,548 
Treasury stock, shares at cost: 2,175,418 and 2,368,194(27,695)(30,124)
Total Ambac Financial Group, Inc. stockholders’ equity 843,384 859,839 
Nonredeemable noncontrolling interest115,790 168,522 
Total stockholders’ equity 959,174 1,028,361 
Total liabilities, redeemable noncontrolling interest and stockholders’ equity$2,147,890 $8,522,386 
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Non-GAAP Financial Data
In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, Organic Revenue Growth Rate (Insurance Distribution segment only), Adjusted Net Income and Adjusted Net Income Margin. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial results.
We present non-GAAP supplemental financial information because we believe such information is of interest to the investment community, and that it provides greater transparency and enhanced visibility into the underlying drivers and performance of our businesses on a basis that may not be otherwise apparent on a GAAP basis. We view these non-GAAP financial measures as important indicators when assessing and evaluating our performance on a segmented and consolidated basis and they are presented to improve the comparability of our results between periods by eliminating the impact of the items that may not be representative of our core operating performance. These non-GAAP financial measures are not substitutes for the Company’s GAAP reporting, should not be viewed in isolation and may differ from similar reporting provided by other companies, which may define non-GAAP measures differently
The following paragraphs define each non-GAAP financial measure. A tabular reconciliation of the non-GAAP financial measure and the most comparable GAAP financial measure is also presented below.
Non-GAAP Financial Measures
Organic Revenue Growth & Rate (Insurance Distribution Only.) — Organic revenue is based on commissions and fees for the relevant period by excluding (i) the first twelve months of commissions and fees generated from acquisitions and (ii) commissions and fees from divestitures (iii) and other items such as contingent commissions and the impact of changes in foreign exchange rates.
Organic revenue growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period and reached the twelve-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue.
Total Specialty P&C Insurance Production Specialty P&C Insurance production, which includes gross premiums written by Ambac's Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment. Specialty P&C Insurance revenues are dependent on gross premiums written, as specialty program insurance companies earn premiums based on the portion of gross premiums written retained (i.e. net premiums written) and fees on gross premiums written that are ceded to reinsurers. Insurance Distribution revenues are dependent on premium volume, as Managing General Agents/Underwriters and brokers receive commissions based on the amount of premiums placed (i.e. gross premiums written on behalf of insurance carriers) with insurance carriers.
EBITDA — EBITDA is net income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization of intangible assets.
EBITDA Margin — EBITDA divided by total revenues.
Adjusted EBITDA and Adjusted EBITDA Margin — We define Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income taxes, depreciation, amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration related expenses, severance, and other exceptional or non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance.
Adjusted Net Income and Adjusted Net Income Margin — We define Adjusted net income as net income (loss) from continuing operations attributable to Ambac adjusted for amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration related expenses, severance and non-recurring income and loss items that, in the opinion of management, significantly affect the period-over-period assessment of operating results, and the related tax effect of those adjustments. Per share amounts exclude any impact of revaluing non-controlling interests
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as otherwise reported under GAAP earnings per share. We believe that adjusted net income is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance.
Results of Operations by Segment (Continued)
Three Months Ended September 30, 2025Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$97,185 $97,185 
Net premiums written17,777 17,777 
Total revenues from Continuing Operations22,774 43,222 610 66,606 
Total expenses from Continuing Operations22,819 48,969 26,897 98,685 
Pretax income (loss)(45)(5,747)(26,287)(32,079)
Provision (benefit) for income taxes8 (1,241)(8)(1,241)
Net income (loss) from Continuing Operations$(53)$(4,506)$(26,279)$(30,838)
Adjustments to EBITDA
Add: Interest expense$6,185 $6,185 
Add: Income tax expense8 (1,241)(8)(1,241)
Add: Depreciation— 145 328 473 
Add: Intangible amortization9,272 9,272 
EBITDA from Continuing Operations$(45)$9,855 $(25,958)$(16,148)
EBITDA from Continuing Operations attributable to
Ambac shareholders		$(45)$5,928 $(25,958)$(20,075)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $— $229 $229 
Add: Equity-based compensation expense94 100 5,953 6,147 
Add: Severance and restructuring expense— — 8,875 8,875 
Add: Other non-operating (income) losses— — 2,008 2,008 
Adjusted EBITDA from Continuing Operations49 9,955 (8,893)1,111 
Adjusted EBITDA from Continuing Operations attributable to
Ambac shareholders		$49 $5,988 $(8,893)$(2,856)
Net income (loss) (Continuing Operations)$(53)$(4,506)$(26,279)$(30,838)
Adjustments:
Add: Acquisition and integration related expenses— — 229 229 
Add: Intangible amortization— 9,272 — 9,272 
Add: Equity-based compensation expense94 100 5,953 6,147 
Add: Severance and restructuring expense— — 8,875 8,875 
Add: Other non-operating (income) losses— — 2,008 2,008 
Adjusted net income (loss) before tax and NCI41 4,866 (9,214)(4,307)
Income tax effects— (2,067)— (2,067)
Adjusted net income (loss) before NCI41 2,799 (9,214)(6,374)
Net (income) loss attributable to noncontrolling interest— (3,583)— (3,583)
Adjusted net income (loss) attributable to shareholders$41 $(784)$(9,214)$(9,957)
Net income (loss) margin(0.2)%(10.4)%NM(46.3)%
Adjusted EBITDA Margin0.2 %23.0 %NM1.7 %
Adjusted EBITDA Margin to Ambac shareholders0.2 %13.9 %NM(4.3)%
Adjusted Net income (loss) after NCI margin0.2 %(1.8)%NM(14.9)%
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Three Months Ended September 30, 2024Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$115,154 $115,154 
Net premiums written32,754 32,754 
Total revenues from Continuing Operations40,132 23,995 5,878 70,005 
Total expenses from Continuing Operations31,198 31,944 27,620 90,762 
Pretax income (loss)8,934 (7,949)(21,742)(20,757)
Provision (benefit) for income taxes944 (883)(928)(867)
Net income (loss) from Continuing Operations
$7,990 $(7,066)$(20,814)$(19,890)
Adjustments to EBITDA
Add: Interest expense$3,745 $3,745 
Add: Income tax expense— (883)(928)(867)
Add: Depreciation206 475 681 
Add: Intangible amortization6,423 6,423 
EBITDA from Continuing Operations
$8,934 $2,425 $(21,267)$(9,908)
EBITDA from Continuing Operations attributable to
Ambac shareholders
$8,934 $1,868 $(21,267)$(10,465)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses— $— $14,854 14,854 
Add: Equity-based compensation expense157 — 2,376 2,533 
Add: Severance and restructuring expense— 248 1,653 1,901 
Add: Other non-operating (income) losses(7,500)— 582 (6,918)
Adjusted EBITDA from Continuing Operations
1,591 2,673 (1,802)2,462 
Adjusted EBITDA from Continuing Operations attributable to
Ambac shareholders
$1,591 $2,116 $(1,802)$1,905 
Net income (loss) (Continuing Operations)$7,990 $(7,066)$(20,814)$(19,890)
Adjustments:
Add: Acquisition and integration related expenses— — 14,854 14,854 
Add: Intangible amortization— 6,423 — 6,423 
Add: Equity-based compensation expense157 — 2,376 2,533 
Add: Severance and restructuring expense— 248 1,653 1,901 
Add: Other non-operating (income) losses(7,500)— 582 (6,918)
Adjusted net income (loss) before tax and NCI647 (395)(1,349)(1,097)
Income tax effects— — — — 
Adjusted net income (loss) before NCI647 (395)(1,349)(1,097)
Net (income) loss attributable to noncontrolling interest— (557)— (557)
Adjusted net income (loss) attributable to shareholders$647 $(952)$(1,349)$(1,654)
Net income (loss) margin19.9 %(29.4)%NM(28.4)%
Adjusted EBITDA Margin4.0 %11.1 %NM3.5 %
Adjusted EBITDA Margin to Ambac shareholders4.0 %8.8 %NM2.7 %
Adjusted Net income (loss) after NCI margin1.6 %(4.0)%NM(2.4)%
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Results of Operations by Segment (Continued)
Nine Months Ended September 30, 2025Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$280,347 $280,347 
Net premiums written50,988 50,988 
Total revenues from Continuing Operations65,335 117,261 1,723 184,319 
Total expenses from Continuing Operations63,258 135,420 55,801 254,479 
Pretax income (loss)2,077 (18,159)(54,078)(70,160)
Provision (benefit) for income taxes278 (3,922)(386)(4,030)
Net income (loss) from Continuing Operations$1,799 $(14,237)$(53,692)$(66,130)
Adjustments to EBITDA
Add: Interest expense$— $17,209 $— $17,209 
Add: Income tax expense278 (3,922)(386)(4,030)
Add: Depreciation— 343 1,074 1,417 
Add: Intangible amortization— 27,247 — 27,247 
EBITDA from Continuing Operations$2,077 $26,640 $(53,004)$(24,286)
EBITDA from Continuing Operations attributable to
Ambac shareholders		$2,077 $15,508 $(53,004)$(35,418)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $375 $1,310 $1,685 
Add: Equity-based compensation expense241 167 9,422 9,830 
Add: Severance and restructuring expense— 60 13,612 13,672 
Add: Other non-operating (income) losses— (591)2,008 1,417 
Adjusted EBITDA from Continuing Operations2,319 26,647 (26,652)2,314 
Adjusted EBITDA from Continuing Operations attributable to
Ambac shareholders		$2,319 $15,599 $(26,652)$(8,734)
Net income (loss) (Continuing Operations)$1,799 $(14,241)$(53,689)$(66,130)
Adjustments:
Add: Acquisition and integration related expenses— 375 1,310 1,685 
Add: Intangible amortization— 27,336 — 27,336 
Add: Equity-based compensation expense241 167 9,422 9,830 
Add: Severance and restructuring expense— 60 13,612 13,672 
Add: Other non-operating (income) losses— (591)2,008 1,417 
Adjusted net income (loss) before tax and NCI2,041 13,106 (27,339)(12,192)
Income tax effects(15)(3,959)15 (3,959)
Adjusted net income (loss) before NCI2,026 9,147 (27,324)(16,151)
Net (income) loss attributable to noncontrolling interest— (10,395)— (10,395)
Adjusted net income (loss) attributable to shareholders$2,026 $(1,248)$(27,324)$(26,546)
Net income (loss) margin7.9 %(32.9)%NM(99.3)%
Adjusted EBITDA Margin3.5 %22.7 %NM1.3 %
Adjusted EBITDA Margin to Ambac shareholders3.5 %13.3 %NM(4.7)%
Adjusted Net income (loss) after NCI margin8.9 %(2.9)%NM(39.9)%
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Nine Months Ended September 30, 2024Specialty Property & Casualty InsuranceInsurance DistributionCorporate & OtherConsolidated
($ in thousands)
Gross premiums written$322,782 $322,782 
Net premiums written91,290 91,290 
Total revenues from Continuing Operations101,502 55,166 13,925 170,593 
Total expenses from Continuing Operations91,847 58,017 59,474 209,338 
Pretax income (loss)9,655 (2,851)(45,549)(38,745)
Provision (benefit) for income taxes1,023 (756)(1,034)(767)
Net income (loss) from Continuing Operations
$8,632 $(2,095)$(44,515)$(37,978)
Adjustments to EBITDA
Add: Interest expense$— $3,745 $— $3,745 
Add: Income tax expense1,023 (756)(1,034)(767)
Add: Depreciation— 230 1,401 1,631 
Add: Intangible amortization— 8,701 — 8,701 
EBITDA from Continuing Operations
$9,655 $9,825 $(44,148)$(24,668)
EBITDA from Continuing Operations attributable to
Ambac shareholders
$9,655 $7,918 $(44,148)$(26,575)
Adjustments to Adjusted EBITDA
Add: Acquisition and integration related expenses$— $— $25,827 $25,827 
Add: Equity-based compensation expense282 — 6,252 6,534 
Add: Severance and restructuring expense— 248 6,990 7,238 
Add: Other non-operating (income) losses(7,500)— (3,845)(11,345)
Adjusted EBITDA from Continuing Operations
2,439 10,067 (8,921)3,585 
Adjusted EBITDA from Continuing Operations attributable to
Ambac shareholders
$2,439 $8,160 $(8,921)$1,678 
Net income (loss) (Continuing Operations)$8,631 $(1,983)$(44,515)$(37,868)
Adjustments:
Add: Acquisition and integration related expenses— — 25,827 25,827 
Add: Intangible amortization— 8,701 — 8,701 
Add: Equity-based compensation expense282 — 6,252 6,534 
Add: Severance and restructuring expense— 248 6,990 7,238 
Add: Other non-operating (income) losses(7,500)— (3,845)(11,345)
Adjusted net income (loss) before tax and NCI1,416 6,854 (9,292)(1,022)
Income tax effects— — — — 
Adjusted net income (loss) before NCI1,416 6,854 (9,292)(1,022)
Net (income) loss attributable to noncontrolling interest— (1,907)— (1,907)
Adjusted net income (loss) attributable to shareholders$1,416 $4,947 $(9,292)$(2,929)
Net income (loss) margin8.5 %(3.8)%NM(22.3)%
Adjusted EBITDA Margin2.4 %18.2 %NM2.1 %
Adjusted EBITDA Margin to Ambac shareholders2.4 %14.8 %NM1.0 %
Adjusted Net income (loss) after NCI margin1.4 %9.0 %NM(1.7)%

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Organic Growth
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)20252024% Growth20252024% Growth
Total Insurance Distribution revenue (1)
$43,222 $23,995 80 %$117,261 $55,166 113 %
Less: Acquired revenues(6,206)(43,955)— 
Less: Profit commission and contingent commission income(1,940)(1,319)(8,897)(3,642)
Total Organic Revenue & Growth Percentage34,035 24,312 40.0 %67,052 53,160 26.1 %
(1)Total Insurance Distribution revenue includes investment income
Total Specialty P&C Insurance Production
Specialty P&C Insurance production, which includes gross premiums written by Ambac's Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment.
Three Months Ended September 30,Nine Months Ended September 30,
($ in thousands)
20252024
% Change
20252024
% Change
Specialty Property & Casualty Insurance Gross Premiums Written$97,185 $115,154 (16)%$280,347 $322,782 (13)%
Insurance Distribution Premiums Placed245,394 144,949 69 %728,493 288,463 153 %
Specialty P&C Insurance Production$342,579 $260,103 32 %$1,008,840 $611,245 65 %
About Ambac
Ambac Financial Group, Inc. (“Ambac” or “AFG”) is an insurance holding company headquartered in New York City. Ambac consists of a diverse mix of specialty insurance underwriting and distribution businesses in the U.S. and U.K. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. For more information, please go to www.ambac.com.
The Amended and Restated Certificate of Incorporation of Ambac contains substantial restrictions on the ability to transfer Ambac’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Ambac’s common stock or a holder of 5% or more of Ambac’s common stock increases its ownership interest.
Contact
Investor Relations
(212) 208-3222
ir@ambac.com
Forward-Looking Statements
In this press release, 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 our most recent SEC filed quarterly or annual report.
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 vary materially, and there are no guarantees about the performance of Ambac’s securities. Among events, risks, uncertainties or factors that could cause actual results to differ materially are: (1) the high degree of volatility in the price of AFG’s common stock; (2)
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uncertainty concerning the Company’s ability to achieve value for holders of its securities from the specialty property and casualty insurance business, the insurance distribution business, or related businesses; (3) greater than expected underwriting losses in the Company’s specialty property and casualty insurance business resulting in inadequacy of loss and loss expense reserves and the possibility that changes in reserves may result in further volatility of earnings or financial results; (4) credit risk throughout Ambac’s business, including but not limited to issuers of securities in our investment portfolios, and exposures to reinsurers; (5) our inability to achieve investment objectives; (6) the Company’s inability to generate the significant amount of cash needed to service its debt and financial obligations, and its inability to refinance its indebtedness; (7) the Company’s indebtedness could adversely affect the Company’s financial condition and operating flexibility; (8) Ambac may not be able to obtain financing, refinance its outstanding indebtedness, or raise capital on acceptable terms or at all due to its outstanding indebtedness and financial condition; (9) failure of specialty insurance program partners to properly market, underwrite or administer policies; (10) inability to obtain reinsurance coverage on economic terms; (11) loss of key relationships for production of business in specialty property and casualty and insurance distribution businesses or the inability to secure such additional relationships to produce expected results; (12) the impact of catastrophic public health, environmental or natural events, or global or regional conflicts; (13) the risk that Ambac’s risk management policies and practices do not anticipate certain risks and/or the magnitude of potential for loss; (14) restrictive covenants in agreements and instruments that impair Ambac’s ability to pursue or achieve its business strategies; (15) disagreements or disputes with Ambac's insurance regulators; (16) risks attendant to the change in composition of securities in Ambac’s investment portfolio; (17) adverse impacts from changes in prevailing interest rates; (18) events or circumstances that result in the impairment of our intangible assets and/or goodwill that was recorded in connection with Ambac’s acquisitions; (19) the risk of litigation, regulatory inquiries, investigations, claims or proceedings, and the risk of adverse outcomes in connection therewith; (20) the Company’s ability to adapt to the rapid pace of regulatory change; (21) actions of stakeholders whose interests are not aligned with broader interests of Ambac's stockholders; (22) system security risks, data protection breaches and cyber attacks; (23) failures in services or products provided by third parties; (24) political developments that disrupt the economies where the Company has insured exposures; (25) our inability to attract and retain qualified executives, senior managers and other employees, or the loss of such personnel; (26) fluctuations in foreign currency exchange rates; (27) failure to realize our business expansion plans or failure of such plans to create value; (28) greater competition for our specialty property and casualty insurance business and/or our insurance distribution business; (29) loss or lowering of the AM Best rating for our property and casualty insurance company subsidiaries; (30) disintermediation within the insurance industry or greater competition from technology-based insurance solutions or non-traditional insurance markets; (31) changes in law or in the functioning of the healthcare market that impair the business model of our accident and health managing general underwriter; (32) difficulties in integrating acquired businesses into our business; and (33) other risks and uncertainties that have not been identified at this time.
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