In This Article:
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Premiums: Nearly $900 million, up 74% from 2023.
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Revenue: $236 million, an increase of 89% from the prior year.
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Net Loss: $548 million or $10.23 per diluted share for Q4 2024.
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Net Loss from Continuing Operations: $22 million or $0.70 per share.
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Adjusted Net Loss: $6 million or $0.12 per diluted share for Q4 2024.
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Adjusted EBITDA Margin: 20% for 2024, with 500 basis points of margin headwinds.
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Organic Growth: 5.4% for the year.
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Everspan Gross Premium: Over $380 million, up 40% from the prior year.
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Everspan Combined Ratio: 101.6% for the year, a 500 basis points improvement over 2023.
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Adjusted EBITDA to Ambac Common Shareholders: $5.3 million for Q4 and $13.2 million for the year.
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Discontinued Operations Loss: $570 million loss on sale of the legacy financial guarantee business.
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Cash and Investments: Approximately $119 million or $2.56 per share as of the end of Q4 2024.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ambac Financial Group Inc (NYSE:AMBC) achieved significant growth in its P&C business, generating nearly $900 million in premiums, up 74% from 2023.
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The acquisition of Beat has been transformative, providing immediate scale and enhancing the distribution platform.
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Successfully sold the legacy financial guarantee business to Oaktree for $420 million, allowing focus on scaling the specialty P&C business.
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Everspan's gross premium grew by 40% to over $380 million, with a combined ratio improvement of nearly 500 basis points over 2023.
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Cirrata generated nearly $100 million in revenue for 2024, up 93%, with a strong adjusted EBITDA margin of 20%.
Negative Points
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Ambac Financial Group Inc (NYSE:AMBC) reported a net loss of $548 million for the fourth quarter of 2024, primarily due to a $570 million loss on the sale of the legacy business.
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The insurance distribution segment faced challenges with de novo startup expenses impacting adjusted EBITDA by approximately $3.8 million.
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The employer stop loss and short-term medical lines experienced market deterioration, affecting the distribution business.
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Everspan's net premiums written were negative $3 million in the quarter due to non-renewal of a reinsurance program.
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The expense ratio increased to 44.6% in the fourth quarter of 2024, driven by changes to sliding scale commissions.
Q & A Highlights
Q: On the distribution side, you mentioned specific lines like short-term medical and employer stop loss were weaker. Do you expect this trend to persist, and how should we think about the prospects for these lines? A: Claude LeBlanc, President and CEO, explained that the employer stop loss sector has seen widespread deterioration, which is considered a macro trend. However, there could be stabilization in the near future. For short-term medical, challenges were noted under the past administration, but there is optimism for a return to steady state with the new administration. Overall, growth is significant across various areas in A&H, with ESL being the biggest challenge.