Ambac’s specialty P&C insurance production hits $165m in Q2

Ambac has revealed that specialty P&C insurance production, which includes gross written premiums (GWP) by its Specialty P&C Insurance segment and premiums placed by the Insurance Distribution segment, totalled $165 million in Q2 of 2024, an increase of 74.9% from Q2 of 2023.

The firm’s total GWP in Q2 of 2024 were $113.1 million, up 107% from $54.7 million in Q2 of 2023. Of this total figure, Ambac’s Specialty P&C Insurance segment produced GWP of $111 million. The combined ratio for Ambac’s Specialty P&C Insurance segment in Q2 of 2024 was 109.4%, an improvement from 112.7% in Q2 of 2023.

Meanwhile, Ambac’s Insurance Distribution segment generated net income of $1 million and EBITDA of $2 million on $53 million of premiums placed.

At the same time, despite recording a net loss of under $1 million for Q2 of 2024, adjusted net income in the quarter was $8 million, up from $3.4 million in Q2 of 2023. The firm’s net investment income also improved in Q2 of 2024, rising 3% to $36.2 million.

Claude LeBlanc, President and Chief Executive Officer, stated, “This quarter we substantially advanced Ambac’s transformation into a pure-play specialty P&C company, a goal we have been working towards for several years.

“We are turning the page on our past with the agreement to sell our Legacy Financial Guarantee Business for $420 million.

“We have also set the stage for our future, as a growth-orientated, capital light, insurance distribution platform with the acquisition of 60% of Beat Capital Partners for approximately $278 million.

“With this acquisition, we have cemented our position to be a premier destination for best-in-class underwriters and MGAs.”

LeBlanc continued, “In connection with these transactions, following the sale of our Legacy Financial Guarantee Business, Ambac will initiate a share repurchase program of up to $50 million.

“This share repurchase program reflects our view that the current share price of our stock does not capture the go-forward value of our P&C platform post the sale of AAC.”

Commenting on the Beat Capital acquisition earlier this month, LeBlanc said, “We are excited to complete this transaction, which materially scales our insurance distribution business and strengthens our position as a premier destination for MGAs.

“With its strong reputation, proven leadership team and the expertise of its MGA CEOs, Beat will be an important asset to our organisation as we continue to execute our specialty P&C strategy and drive long-term growth and value creation for our shareholders.”

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