Ambac Financial Reports Q1 2025 Results Advancing Specialty P&C Growth
Ambac Financial Group, Inc., a New York-based insurance holding company with a focus on specialty property and casualty (P&C) insurance and insurance distribution, reported its financial results for Q1 2025.
Total revenues from continuing operations increased by 27% to $63 million compared to Q1 2024, primarily driven by the acquisition of Beat Capital and robust premium production growth in specialty P&C. Specialty P&C insurance gross premiums written were $86.9 million, down 10%, while net premiums earned declined 39%, reflecting a managed reduction in certain programs. Insurance distribution revenues more than doubled to nearly $41 million, boosted by acquisitions and premium placements increasing 156% year-over-year.
Despite revenue growth, Ambac’s total expenses from continuing operations rose 48% to $78 million, influenced by higher general and administrative costs linked to acquisitions, professional fees, intangible amortization, and interest expenses. Ambac posted a net loss from continuing operations of $14.5 million and a net loss attributable to Ambac shareholders of $46.4 million for Q1 2025, compared to a net loss of $3.4 million and net income of $20.1 million respectively in Q1 2024. The adjusted EBITDA from continuing operations was negative $1.3 million, reflecting operational pressures offset by contribution from Cirrata, Ambac’s accident and health managing general underwriter. The company completed pre-closing conditions for the sale of its Legacy financial guarantee business, awaiting only Wisconsin regulatory approval.
Ambac’s strategic focus remains on expanding its specialty niche insurance platform and growing its profitable managing general agencies (MGAs). The insurance distribution segment experienced a 2.1% organic revenue decline, offset by acquisition-driven growth of 129%. The Specialty P&C segment saw an improved loss ratio of 66.9% but higher expense ratio of 35.2%, contributing to a combined ratio above 100%.
Ambac repurchased approximately 265,000 shares in Q1, with $35.2 million remaining in repurchase authorization. The company manages significant assets totaling over $8.2 billion and liabilities of $7 billion, with a stockholders’ equity of approximately $852 million. Market risks include credit exposures, regulatory approvals, and integration of acquisitions. Ambac’s forthcoming earnings call will provide further details on Q1 results and strategic initiatives. This comprehensive earnings report highlights the company’s transitional phase focusing on specialty P&C insurance growth and portfolio diversification, alongside the planned divestiture of its legacy financial guarantee operations.