Strong Premium Growth Amidst …
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Premiums: $318 million, up 70% from the prior period last year.
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Revenue: $63 million, up 27% from the prior period last year.
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Net Loss from Continuing Operations: $16 million or $0.58 per share.
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Adjusted EBITDA from Continuing Operations: Loss of $1 million.
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Total Expenses from Continuing Operations: $78 million, up from $53 million in the first quarter of 2024.
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Cirrata Revenue: $41 million, up 129% compared to the first quarter of 2024.
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Cirrata Adjusted EBITDA: $12 million on a 29.5% margin.
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Everspan Gross Premiums Written: $87 million, down 10% from the prior year.
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Everspan Loss Ratio: Improved by 880 basis points.
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Everspan Combined Ratio: 102% for the quarter.
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AFG Cash, Investments, and Net Receivables: Approximately $104 million or $2.25 per share.
Release Date: May 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Ambac Financial Group Inc (NYSE:AMBC) reported a strong start to 2025 with $318 million in premium, up 70% from the previous year.
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The acquisition of Beat significantly contributed to revenue growth, adding over $20 million in the quarter, representing a 40% increase from the prior year.
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Cirrata, a segment of Ambac, generated over $230 million in premium for the quarter, marking a 156% increase.
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Two of the six new MGAs launched in 2024 achieved profitability within the first 12 months, ahead of the typical 18 to 24 months timeline.
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Everspan’s loss ratio improved by nearly 9%, indicating better underwriting performance and management of capital allocation.
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Ambac Financial Group Inc (NYSE:AMBC) reported a net loss from continuing operations of $16 million or $0.58 per share for the first quarter of 2025.
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Organic growth excluding the Beat acquisition faced a 2% contraction due to a pullback in ESL and short-term medical business.
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Everspan’s gross premiums written decreased by 10% from the prior year, impacting overall revenue.
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The expense ratio for Everspan increased, resulting in a combined ratio of 102% for the quarter.
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The pending sale of the legacy business is still awaiting regulatory approval, which is outside of Ambac’s control and affects their transformation plans.
Q: When you’re ramping up these MGAs, how important is staffing to the top-line growth? And what are you seeing in the market in terms of recruiting, hiring, and retaining experienced people? A: Claude LeBlanc, President and CEO, explained that staffing is crucial for individual MGAs and is also considered on a shared service basis. The business model’s attractiveness and strong recruitment efforts have been effective in attracting top talent, including producers and underwriters, with a deep pipeline of opportunities.
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Q: Could you provide an update on your mix of property versus casualty and how that’s impacting the outlook for growth? A: David Trick, CFO, stated that while property is a critical part of the platform, the liability side, or casualty-focused business, will be the primary source of growth. Despite some softening in property pricing, returns remain attractive, and diversification in property segments and the A&H space is emphasized.
Q: Can you comment on the competitive environment? A: Claude LeBlanc noted that competition is growing in certain market areas. However, Ambac’s differentiation through capacity relationships and a unique business model helps attract top talent. The company is vigilant about the increasing competition from other business models.
Q: What are the strategic focuses to enhance organic growth? A: Claude LeBlanc highlighted enhancing risk capacity for syndicates, product expansion and diversification, and distribution expansion to drive synergies across the platform as key strategic focuses to materially enhance organic growth.
Q: How is Everspan performing, and what are the expectations moving forward? A: David Trick mentioned that Everspan’s gross premiums written were down 10% from the prior year, but the loss ratio improved by 880 basis points. The expense ratio is expected to trend more favorably as the business scales, with a focus on rebalancing capital allocation and expanding market opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
