The following is a summary of the Ambac Financial Group Inc (AMBC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Ambac reported a net loss of $28 million or $0.63 per diluted share.

• Adjusted net loss for the quarter was $19 million or $0.46 per diluted share.

• Consolidated Specialty P&C Insurance platform generated $260 million in premium, an 86% increase over last year.

• Total premium production over the first three quarters totaled $611 million, a 68% increase from the prior year period.

• Q3 EBITDA for P&C businesses was approximately $20 million.

Business Progress:

• Ambac has transitioned towards becoming a pure play P&C business with the acquisition of Beat Capital.

• Launched six new MGAs in markets like E&S Casualty and Professional Liability.

• Focus on organic growth through new program launches and synergies from recent acquisitions.

• Plans to close the sale of Legacy Financial Guarantee business, aiming for Q4 of this year or Q1 of next year.

• The company is initiating a $50 million share buyback program.

Opportunities:

• Expanding distribution business and underwriting capacities will drive future organic growth starting in 2025.

• Ambac's future as a pure play specialty P&C platform is expected to generate $70 to $80 million EBITDA by 2028.

• Favorable market conditions in the U.S. Casualty lines, and potential stabilization of property insurance pricing due to recent hurricanes.

Risks:

• The company faced a net loss this quarter influenced by legal and advisory expenses and losses at the Legacy Financial Guarantee business.

• There may be volatility in expenses due to the timing, size, and profitability path of new MGAs.

• Currency exchange losses and adjustments, particularly with Beat's operations involving multiple currencies.

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