Ambac Financial Posts Q1 2025 P&C Revenue Growth Amid Specialty Segment Pressure
Ambac Financial Group, Inc. reported a significant increase in total revenue from its continuing property and casualty (P&C) operations in the first quarter of 2025, achieving $63 million, a 27% rise year-over-year. The company also noted a 70% increase in total P&C premium production, reaching $318 million, highlighting growth driven partly by its acquisition of Beat. However, the Specialty P&C Insurance segment, known as Everspan, experienced a decline in gross written premiums by 10% to $86.9 million and saw its combined ratio increase to 102.1% from 98.4% in the prior year quarter, indicating underwriting challenges in this division.
Net premiums written and earned in the Everspan segment declined by 31% and 39% respectively, but the loss ratio improved significantly by 880 basis points to 66.9%, partially offsetting negative underwriting results. Despite these operational pressures, Everspan maintained net income close to the prior year, reporting $1.4 million for the quarter. Meanwhile, the Insurance Distribution segment, Cirrata, experienced robust revenue growth of 129% to $41 million but recorded a net loss of $2 million, a reversal from a $3.9 million profit the previous year.
Ambac’s overall net loss from continuing operations widened to $16 million in Q1 2025, primarily due to intangible amortization and interest expenses linked to the acquisition of Beat. Total expenses also increased by 48% to $78 million as a result of higher general and administrative costs and fees associated with the acquisition. Investment assets held by the company decreased to $291 million from $312 million year-over-year.
Strategically, Ambac's management emphasized the ongoing diversification of its specialty P&C portfolio aimed at long-term growth and resilience against market cyclicality. The company sees potential in specialty niche markets and reports positive early performance indicators from newly launched managing general agents (MGAs), with some achieving profitability.
Additionally, Ambac is progressing with the divestiture of its Legacy business, pending final regulatory approval in Wisconsin. This transaction aligns with the company's strategic focus on building a leading specialty P&C franchise. The company's CEO highlighted confidence in the firm's positioning to continue growth despite short-term market challenges, underscoring the impact of the Beat acquisition on expanding its operational capabilities and product offerings.