Ambac Financial Group, Inc. Announces Second Quarter 2012 ResultsAmbac Financial Group, Inc. Announces Second Quarter 2012 Results
NEW YORKAmbac Financial Group, Inc.$811.1 million$2.68$102.4
million$0.34
Second Quarter 2012 Summary
Relative to the second quarter of 2011,
-
Net premiums earned increased $3.8 million to $103.0 million
-
Net investment income declined $1.8 million to $93.8 million
-
Net realized investment gains (losses) increased $69.6 million to a
gain of $67.1 million
-
Net realized gains (losses) on the extinguishment of debt declined
$180.9 million to a loss of $177.7 million
-
Derivative product losses increased $58.5 million to $124.1 million
-
Financial guarantee net loss and loss expenses increased $545.0
million to $741.4 million
As of June 30, 2012, unrestricted cash, short-term securities and bonds
at Ambac, the holding company, totaled $33.9 million, a decline of $0.1
million from March 31, 2012.
Financial Results
Net Premiums Earned
Net premiums earned for the second quarter of 2012 were $103.0 million,
up 4% from $99.3 million earned in the second quarter of 2011. Net
premiums earned include accelerated premiums, resulting from refundings,
calls, and other policy accelerations recognized during the quarter.
Accelerated premiums were $35.9 million in the second quarter of 2012,
up 217% from $11.3 million in the second quarter of 2011. The increase
in accelerated premiums was primarily driven by an increase in the
overall volume of calls of Ambac insured debt within the public finance
market due to low interest rates. Normal net premiums earned, which
exclude accelerated premiums, were $67.1 million in the second quarter
of 2012, down 24% from $88.0 million in the second quarter of 2011. The
decline in normal net premiums earned was primarily due to the continued
run-off of the insured portfolio as a result of transaction
terminations, refundings, and scheduled maturities.
Net Investment Income
For the combined financial guarantee, financial services, and corporate
investment portfolios, net investment income for the second quarter of
2012 was $93.8 million, a decrease of 2% from $95.6 million earned in
the second quarter of 2011. Financial Guarantee net investment income
rose 2% from $88.0 million to $90.0 million, benefitting from a higher
average invested asset base and higher yielding assets in the portfolio
for the three months ended June 30, 2012. Compared to the second quarter
of 2011, the 2012 Financial Guarantee invested asset base has benefited
from the reinvestment of interest and principal receipts, and premiums
collected, as well as the impact of the moratorium on segregated account
claims payments, partially offset by payments made to commute certain
financial guarantee exposures and to repurchase surplus notes. Higher
average yields on the portfolio resulted from the ongoing shift in the
portfolio mix away from tax-exempt municipals toward taxable securities,
including Ambac-insured securities. Financial Services investment income
for the three months ended June 30, 2012 was $3.8 million, a decline of
50% from $7.6 million for the second quarter of 2011. The decline in
Financial Services investment income was driven primarily by the effects
of a smaller portfolio of investments as Ambac’s investment agreement
obligations continue to run off.
Net Realized Investment Gains (Losses)
Net realized investment gains for the second quarter of 2012 were $67.1
million, an increase of $69.6 million over net realized investment
losses of $2.5 million during the second quarter of 2011. The realized
investment gains in the second quarter of 2012 were largely the result
of portfolio repositioning and relative value trades executed in
response to market conditions.
Net Realized Gains (Losses) on Extinguishment of Debt
Net realized losses on the extinguishment of debt were $177.7 million
for the second quarter of 2012 as compared to gains of $3.1 million
during the second quarter of 2011. During June 2012, Ambac Assurance
exercised options to repurchase surplus notes having an aggregate par
value of $789.2 million for a cash payment of $188.4 million. Certain of
these options were free-standing derivatives for accounting purposes and
were carried at fair value as assets on the Company’s balance sheet. The
$177.7 million net realized loss on extinguishment of debt represents
the difference between the consideration paid and the net carrying value
of the stand-alone derivative assets and the repurchased surplus notes
and accrued interest liabilities. The remaining options to acquire
surplus notes have expired.
Other Income
Other income for the three months ended June 30, 2012 was $36.1 million,
as compared to $9.2 million for the three months ending June 30, 2011.
The increase was primarily driven by mark-to-market gains of $39.0
million relating to Ambac’s option to call certain bank surplus notes
that were free-standing derivatives for accounting purposes, as
discussed above. As these options were exercised in June 2012, only
changes in fair value of these options through the date of exercise are
included in other income.
Derivative Products
For the second quarter of 2012, the derivatives product business
produced a net loss of $124.1 million compared to net loss of $65.6
million for the second quarter of 2011. The derivative products
portfolio has been positioned to record gains in a rising interest rate
environment in order to provide a hedge against the impact of rising
rates on certain exposures within the financial guarantee insurance
portfolio. As a result of declining interest rates, mark-to-market
movements on these hedges contributed losses of $96.8 million during the
second quarter of 2012, compared to losses of $63.2 million during the
second quarter of 2011. Additionally, customer related swaps contributed
$27.3 million of losses in the second quarter of 2012 versus $2.4
million of losses for the second quarter of 2011. These losses primarily
resulted from adverse changes in interest rates, projected inflation
rates and foreign exchange rates, which influence the fair value of
certain customer swaps, net of the impact of changes to Ambac’s own
credit risk. The results include positive valuation adjustments
pertaining to Ambac’s own credit risk of $28.9 million for the second
quarter of 2012 and $4.6 million for the second quarter of 2011.
Financial Guarantee Loss Reserves
Loss and loss expenses for the second quarter of 2012 was $741.4 million
as compared to $196.4 million for the second quarter of 2011. The net
loss for the three months ended June 30, 2012, was driven by higher
estimated losses in the first-lien and second-lien RMBS portfolio, as
well as on certain structured insurance, asset backed and municipal
credits.
Loss and loss expenses paid, including commutations, net of recoveries
from all policies, amounted to a net recovery of $18.4 million during
the second quarter of 2012 versus a $23.4 million net recovery for the
same period in 2011. The amount of actual claims paid during each period
was impacted by the payment moratorium imposed on March 24, 2010, by the
court overseeing the rehabilitation of the Segregated Account. Claims
presented to Ambac Assurance and unpaid during the second quarter of
2012 amounted to $491.2 million versus $345.0 million during the same
period in 2011. Since the establishment of the Segregated Account in
March 2010, a total of $3,653.6 million of claims have been presented
and remain unpaid.
Loss reserves (gross of reinsurance and net of subrogation recoveries)
for all RMBS insurance exposures as of June 30, 2012, were $4,769.8
million, including claims on RMBS exposures that have been presented
since March 24, 2010, and unpaid as a result of the claims moratorium.
RMBS reserves as of June 30, 2012, are net of $2,770.2 million of
estimated representation and warranty breach remediation recoveries. The
estimate of remediation recoveries related to material representation
and warranty breaches is up 4% from $2,655.4 million reported as of
March 31, 2012. Ambac has initiated and will continue to initiate
lawsuits and other methods to achieve compliance with the repurchase
obligations in the securitization documents with respect to sponsors who
disregard their obligations to repurchase loans.
Expenses
Underwriting and operating expenses rose in the second quarter of 2012
to $33.6 million from $15.5 million during the second quarter of 2011.
The increase in underwriting and operating expenses is primarily related
to higher compensation, premises, premium taxes and legal fees. The
increase in premises related expense is attributable to the benefit
realized in the second quarter of 2011 from the termination and
settlement of the Company’s lease on its headquarters. The increase in
compensation expense is due to stock compensation forfeitures in the
second quarter of 2011. Interest expense for the combined Financial
Guarantee and Financial Services sectors was largely unchanged during
the period.
Reorganization Items, Net
For purposes of presenting an entity’s financial evolution during a
Chapter 11 reorganization, the financial statements for periods
including and after filing the Chapter 11 petition distinguish
transactions and events that are directly associated with the
reorganization from the ongoing operations of the business.
Reorganization items in three months ended June 30, 2012 were $0.8
million, down from $6.5 million for the three months ended June 30,
2011, primarily due to lower professional fees incurred following the
confirmation of the bankruptcy plan of reorganization.
Balance Sheet and Liquidity
Total assets declined during the second quarter of 2012 to $26.6 billion
from $27.4 billion at March 31, 2012. The decrease in total assets was
primarily due to declines in (i) the consolidated non-VIE investment
portfolio to $6.7 billion from $6.9 billion, (ii) VIE assets to $16.6
billion from $16.9 billion, (iii) insurance premium receivables to $1.8
billion from $1.9 billion, and (iv) derivative assets to $133 million
from $273 million.
During the second quarter of 2012, the fair value of the financial
guarantee non-VIE investment portfolio fell by $80.6 million to $6.1
billion (amortized cost of $5.6 billion) as of June 30, 2012. The
portfolio consists primarily of high quality municipal and corporate
bonds, asset backed securities, U.S. Treasuries, Agency RMBS, as well as
non-agency RMBS, including Ambac Assurance guaranteed RMBS. The fair
value of the financial services investment portfolio declined $176.6
million to $587.1 million during the second quarter.
Liabilities subject to compromise totaled approximately $1.7 billion at
June 30, 2012. The amount of liabilities subject to compromise
represents Ambac’s estimate at June 30, 2012, of known or potential
pre-petition claims to be addressed in connection with the Chapter 11
reorganization. As of June 30, 2012, liabilities subject to compromise
consist of the following (in thousands):
|
|
Debt obligations and accrued interest payable
|
|
|
$1,690,312
|
|
|
Other
|
|
|
17,099
|
|
|
Consolidated liabilities subject to compromise
|
|
|
$1,707.411
|
|
|
|
|
|
|
Overview of Ambac Assurance Statutory Results
As of June 30, 2012, Ambac Assurance reported policyholder surplus of
$100.0 million, down from $232.9 million as of March 31, 2012. The
Segregated Account reported statutory policyholder surplus of $(333.2)
million as of June 30, 2012, down from $105.1 million as of March 31,
2012. The decline in Ambac Assurance’s policyholder surplus was due to
(i) contributions to contingency reserves of $233.2 million as a result
of adverse development of non-defaulted policies that remain in the
general account of Ambac Assurance; (ii) insurance losses of $222.2
million; (iii) net intercompany loan impairments of $131.0 million,
primarily from the interest rate swap business; and (iv) the
extinguishment of $789.2 million of surplus notes for a cash payment of
$188.4 million. These declines were partially offset by (a) net
investment income, (b) earned premiums, and © a $463.3 million
reduction in the liabilities assumed by Ambac Assurance from the
Segregated Account for losses on policies allocated to the Segregated
Account. The reduction of these liabilities is pursuant to a prescribed
accounting practice issued by the Wisconsin Office of the Commissioner
of Insurance, which maintains Ambac Assurance’s policyholder surplus at
a minimum level of $100 million.
Ambac Assurance’s claims-paying resources amounted to approximately $6.2
billion as of June 30, 2012, down $215.5 million from $6.4 billion at
March 31, 2012. This excludes Ambac Assurance UK Limited’s claims-paying
resources of approximately $1.1 billion. The decrease in claims paying
resources was primarily attributable to the repurchase of surplus notes
and a lower present value of future installment premiums as of June 30,
2012.
About Ambac
Ambac filed for a voluntary petition for relief under Chapter 11 of the
United States Bankruptcy Code (“Bankruptcy Code”) in the United States
Bankruptcy Court for the Southern District of New York (“Bankruptcy
Court”) on November 8, 2010. The Bankruptcy Court entered an order
confirming Ambac’s plan of reorganization on March 14, 2012. However,
Ambac is not currently able to estimate when it will be able to
consummate such plan. Until the plan of reorganization is consummated
and Ambac emerges from bankruptcy, Ambac will continue to operate in the
ordinary course of business as “debtor-in-possession” in accordance with
the applicable provisions of the Bankruptcy Code and the orders of the
Bankruptcy Court. Currently, Ambac’s common stock trades in the
over-the-counter market under ticker symbol ABKFQ. Upon consummation of
the plan of reorganization, Ambac’s existing common stock will be
cancelled and extinguished and the holders thereof will not be entitled
to receive, and will not retain, any property or interest on account of
such common stock.
Additional information regarding Ambac’s second quarter 2012 financial
results, including its quarterly report on Form 10-Q for the quarter
ended June 30, 2012, can be found on Ambac’s website at www.ambac.com
under the Investor Relations tab.
Forward-Looking Statements
This release contains statements that may constitute "forward-looking
statements" within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Any or all of
management’s forward-looking statements here or in other publications
may turn out to be incorrect and are based on Ambac management’s current
belief or opinions. Ambac’s actual results may vary materially, and
there are no guarantees about the performance of Ambac’s securities.
Among events, risks, uncertainties or factors that could cause actual
results to differ materially are: (1) failure to consummate a plan of
reorganization under Chapter 11, which may lead to the commencement of
liquidation proceedings pursuant to Chapter 7; (2) the impact of the
bankruptcy proceeding on the holders of Ambac securities; (3) failure to
satisfactorily resolve our dispute with the United States Internal
Revenue Service; (4) the unlikelihood that Ambac Assurance Corporation
(“Ambac Assurance”) will pay dividends to Ambac in the foreseeable
future; (5) adverse events arising from the Segregated Account
Rehabilitation Proceedings, including the failure of the injunctions
issued by the Wisconsin Rehabilitation Court to protect the Segregated
Account and Ambac Assurance from certain adverse actions; (6) litigation
arising from the Segregated Account Rehabilitation Proceedings;
(7) decisions made by the Rehabilitator for the benefit of policyholders
may result in material adverse consequences for Ambac’s securityholders;
(8) potential of a full rehabilitation proceeding against Ambac
Assurance or material changes to the Segregated Account Rehabilitation
Plan, with resulting adverse impacts; (9) inadequacy of reserves
established for losses and loss expenses, including our inability to
realize the remediation recoveries or future commutations included in
our reserves; (10) adverse developments in our portfolio of insured
public finance credits; (11) market risks impacting assets in our
investment portfolio or the value of our assets posted as collateral in
respect of investment agreements and interest rate swap and currency
swap transactions; (12) risks relating to determination of amount of
impairments taken on investments; (13) credit and liquidity risks due to
unscheduled and unanticipated withdrawals on investment agreements;
(14) market spreads and pricing on insured collateralized loan
obligations (“CLOs”) and other derivative products insured or issued by
Ambac or its subsidiaries; (15) Ambac’s financial position and the
Segregated Account Rehabilitation Proceedings may prompt departures of
key employees and may impact our ability to attract qualified executives
and employees; (16) the risk of litigation and regulatory inquiries or
investigations, and the risk of adverse outcomes in connection
therewith, which could have a material adverse effect on our business,
operations, financial position, profitability or cash flows; (17) credit
risk throughout our business, including but not limited to credit risk
related to residential mortgage-backed securities, student loan and
other asset securitizations, CLOs, public finance obligations and
exposures to reinsurers; (18) default by one or more of Ambac
Assurance’s portfolio investments, insured issuers, counterparties or
reinsurers; (19) the risk that our risk management policies and
practices do not anticipate certain risks and/or the magnitude of
potential for loss as a result of unforeseen risks; (20) factors that
may influence the amount of installment premiums paid to Ambac,
including Segregated Account Rehabilitation Proceedings; (21) changes in
prevailing interest rates; (22) the risk of volatility in income and
earnings, including volatility due to the application of fair value
accounting, required under the relevant derivative accounting guidance,
to the portion of our credit enhancement business which is executed in
credit derivative form; (23) changes in accounting principles or
practices that may impact Ambac’s reported financial results;
(24) legislative and regulatory developments; (25) operational risks,
including with respect to internal processes, risk models, systems and
employees; (26) changes in tax laws, tax disputes and other tax-related
risks; (27) other risks and uncertainties that have not been identified
at this time, and (28) the risks described in the Risk Factors section
in Part I, Item 1A of Ambac’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2011, and also disclosed from time to time by
Ambac in its subsequent reports on Form 10-Q and Form 8-K, which are
available on the Ambac website at www.ambac.com
and at the SEC’s website, www.sec.gov.
Readers are cautioned that forward-looking statements speak only as of
the date they are made and that Ambac does not undertake to update
forward-looking statements to reflect circumstances or events that arise
after the date the statements are made. You are therefore advised to
consult any further disclosures we make on related subjects in Ambac’s
reports to the SEC.
|
Ambac Financial Group, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
June 30, 2012 and December 31, 2011
|
(Dollars in Thousands Except Share Data)
|
|
|
|
June 30, 2012
|
|
December 31, 2011
|
|
|
(unaudited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
Fixed income securities, at fair value
|
|
|
|
|
(amortized cost of $4,945,921 2012 and $5,346,897 in 2011)
|
|
$5,390,290
|
|
|
$5,830,289
|
|
Fixed income securities pledged as collateral, at fair value
|
|
|
|
|
(amortized cost of $286,115 in 2012 and $261,958 in 2011)
|
|
286,660
|
|
|
263,530
|
|
Short-term investments (amortized of $1,009,868 in 2012 and
$783,015 in 2011)
|
|
1,010,059
|
|
|
783,071
|
|
Other (approximates fair value)
|
|
100
|
|
|
100
|
|
Total investments
|
|
6,687,109
|
|
|
6,876,990
|
|
|
|
|
|
|
Cash
|
|
49,012
|
|
|
15,999
|
|
Restricted cash
|
|
2,500
|
|
|
2,500
|
|
Receivable for securities
|
|
112,013
|
|
|
38,164
|
|
Investment income due and accrued
|
|
42,651
|
|
|
45,328
|
|
Premium receivables
|
|
1,829,874
|
|
|
2,028,479
|
|
Reinsurance recoverable on paid and unpaid losses
|
|
169,961
|
|
|
159,902
|
|
Deferred ceded premium
|
|
197,437
|
|
|
221,303
|
|
Subrogation recoverable
|
|
442,097
|
|
|
659,810
|
|
Deferred acquisition costs
|
|
211,907
|
|
|
223,510
|
|
Loans
|
|
10,153
|
|
|
18,996
|
|
Derivative assets
|
|
132,914
|
|
|
175,207
|
|
Other assets
|
|
103,804
|
|
|
104,300
|
|
Variable interest entity assets:
|
|
|
|
|
Fixed income securities, at fair value
|
|
2,162,062
|
|
|
2,199,338
|
|
Restricted cash
|
|
2,276
|
|
|
2,140
|
|
Investment income due and accrued
|
|
4,034
|
|
|
4,032
|
|
Loans
|
|
14,446,047
|
|
|
14,329,515
|
|
Other assets
|
|
5,940
|
|
|
8,182
|
|
Total assets
|
|
$26,611,791
|
|
|
$27,113,695
|
|
|
|
|
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Liabilities subject to compromise
|
|
$1,707,411
|
|
|
$1,707,421
|
|
Unearned premiums
|
|
3,138,275
|
|
|
3,457,157
|
|
Losses and loss expense reserve
|
|
7,607,663
|
|
|
7,044,070
|
|
Ceded premiums payable
|
|
98,279
|
|
|
115,555
|
|
Obligations under investment agreements
|
|
424,840
|
|
|
523,046
|
|
Obligations under investment repurchase agreements
|
|
18,276
|
|
|
23,500
|
|
Current taxes
|
|
96,752
|
|
|
95,709
|
|
Long-term debt
|
|
144,036
|
|
|
223,601
|
|
Accrued interest payable
|
|
192,984
|
|
|
170,169
|
|
Derivative liabilities
|
|
394,040
|
|
|
414,508
|
|
Other liabilities
|
|
94,678
|
|
|
107,441
|
|
Payable for securities purchased
|
|
5,328
|
|
|
1,665
|
|
Variable interest entity liabilities:
|
|
|
|
|
Accrued interest payable
|
|
3,645
|
|
|
3,490
|
|
Long-term debt
|
|
14,376,872
|
|
|
14,288,540
|
|
Derivative liabilities
|
|
2,063,809
|
|
|
2,087,052
|
|
Other liabilities
|
|
282
|
|
|
304
|
|
Total liabilities
|
|
30,367,170
|
|
|
30,263,228
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
|
Preferred stock
|
|
-
|
|
|
-
|
|
Common stock
|
|
3,080
|
|
|
3,080
|
|
Additional paid-in capital
|
|
2,172,027
|
|
|
2,172,027
|
|
Accumulated other comprehensive income
|
|
417,593
|
|
|
463,259
|
|
Accumulated deficit
|
|
(6,598,384
|
)
|
|
(6,039,922
|
)
|
Common stock held in treasury at cost
|
|
(410,755
|
)
|
|
(411,419
|
)
|
Total Ambac Financial Group, Inc. stockholders' deficit
|
|
(4,416,439
|
)
|
|
(3,812,975
|
)
|
|
|
|
|
|
Non-controlling interest
|
|
661,060
|
|
|
663,442
|
|
Total stockholders' deficit
|
|
(3,755,379
|
)
|
|
(3,149,533
|
)
|
Total liabilities and stockholders' deficit
|
|
$26,611,791
|
|
|
$27,113,695
|
|
|
|
|
|
|
Number of shares outstanding (net of treasury shares)
|
|
302,436,107
|
|
|
302,428,811
|
|
|
|
|
|
|
|
|
|
Ambac Financial Group, Inc. and Subsidiaries
|
Consolidated Statements of Operations
|
(Unaudited)
|
For the Three and Six Months Ended June 30, 2012 and 2011
|
(Dollars in Thousands Except Share Data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums earned
|
|
$103,042
|
|
|
$99,271
|
|
|
$197,992
|
|
|
$191,070
|
|
Net investment income
|
|
93,836
|
|
|
95,639
|
|
|
205,953
|
|
|
172,107
|
|
Other-than-temporary impairment losses:
|
|
|
|
|
|
|
|
|
Total other-than-temporary impairments
|
|
(7,492
|
)
|
|
(17,793
|
)
|
|
(11,803
|
)
|
|
(19,506
|
)
|
Portion of loss recognized in other comprehensive income
|
|
5,164
|
|
|
215
|
|
|
6,404
|
|
|
215
|
|
Net other-than temporary impairment losses recognized in earnings
|
|
(2,328
|
)
|
|
(17,578
|
)
|
|
(5,399
|
)
|
|
(19,291
|
)
|
Net realized investment gains (losses)
|
|
67,067
|
|
|
(2,528
|
)
|
|
67,459
|
|
|
(78
|
)
|
|
|
|
|
|
|
|
|
|
Change in fair value of credit derivatives:
|
|
|
|
|
|
|
|
|
Realized gains and other settlements
|
|
3,073
|
|
|
4,224
|
|
|
6,327
|
|
|
9,547
|
|
Unrealized (losses) gains
|
|
(10,488
|
)
|
|
20,063
|
|
|
(20,964
|
)
|
|
5,837
|
|
Net change in fair value of credit derivatives
|
|
(7,415
|
)
|
|
24,287
|
|
|
(14,637
|
)
|
|
15,384
|
|
Derivative products
|
|
(124,091
|
)
|
|
(65,595
|
)
|
|
(77,134
|
)
|
|
(44,591
|
)
|
Net realized (losses) gains on extinguishment of debt
|
|
(177,745
|
)
|
|
3,119
|
|
|
(177,745
|
)
|
|
3,119
|
|
Other income
|
|
36,137
|
|
|
9,227
|
|
|
100,930
|
|
|
37,530
|
|
Income (loss) on variable interest entities
|
|
5,536
|
|
|
2,353
|
|
|
20,756
|
|
|
(3,772
|
)
|
|
|
|
|
|
|
|
|
|
Total revenues before expenses and reorganization items
|
|
(5,961
|
)
|
|
148,195
|
|
|
318,175
|
|
|
351,478
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses and loss expenses
|
|
741,411
|
|
|
196,398
|
|
|
739,091
|
|
|
1,116,045
|
|
Underwriting and operating expenses
|
|
33,567
|
|
|
15,533
|
|
|
70,101
|
|
|
61,000
|
|
Interest expense
|
|
31,855
|
|
|
31,670
|
|
|
65,694
|
|
|
61,930
|
|
|
|
|
|
|
|
|
|
|
Total expenses before reorganization items
|
|
806,833
|
|
|
243,601
|
|
|
874,886
|
|
|
1,238,975
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss from continuing operations before reorganization
items
|
|
(812,794
|
)
|
|
(95,406
|
)
|
|
(556,711
|
)
|
|
(887,497
|
)
|
|
|
|
|
|
|
|
|
|
Reorganization items
|
|
767
|
|
|
6,470
|
|
|
3,228
|
|
|
31,275
|
|
|
|
|
|
|
|
|
|
|
Pre-tax loss from continuing operations
|
|
(813,561
|
)
|
|
(101,876
|
)
|
|
(559,939
|
)
|
|
(918,772
|
)
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes
|
|
(211
|
)
|
|
542
|
|
|
89
|
|
|
2,892
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
(813,350
|
)
|
|
(102,418
|
)
|
|
(560,028
|
)
|
|
(921,664
|
)
|
|
|
|
|
|
|
|
|
|
Less: net (loss) income attributable to noncontrolling interest
|
|
(2,232
|
)
|
|
14
|
|
|
(2,230
|
)
|
|
47
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common shareholders
|
|
($811,118
|
)
|
|
($102,432
|
)
|
|
($557,798
|
)
|
|
($921,711
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share attributable to Ambac Financial Group, Inc.
common shareholders
|
|
($2.68
|
)
|
|
($0.34
|
)
|
|
($1.84
|
)
|
|
($3.05
|
)
|
|
|
|
|
|
|
|
|
|
Net loss per diluted share attributable to Ambac Financial
Group, Inc. common shareholders
|
|
($2.68
|
)
|
|
($0.34
|
)
|
|
($1.84
|
)
|
|
($3.05
|
)
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
302,469,196
|
|
|
302,467,255
|
|
|
302,467,762
|
|
|
302,410,881
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
302,469,196
|
|
|
302,467,255
|
|
|
302,467,762
|
|
|
302,410,881
|
|

Source: Ambac Financial Group, Inc.
Ambac Financial Group, Inc.
Michael Fitzgerald, 212-208-3222
mfitzgerald@ambac.com