Ambac Financial Group, Inc. (AMBC) Q3 2025 Earnings Call Transcript

Net loss from continuing operations $32 million or $0.67 per diluted share in Q3 2025 compared to a loss of $18 million or $0.43 per share in Q3 2024. The higher loss was driven by a $15 million combined increase in intangible amortization, interest, and G&A expenses, coupled with the impact of Everspan's prior period $7.5 million gain on the sale of CNIC.

Adjusted EBITDA from continuing operations A loss of $3 million in Q3 2025 compared to a sub-$2 million gain in Q3 2024. The reduction was due to a $4.8 million FX gain in Q3 2024, a $1.5 million reduction in Everspan adjusted EBITDA, and $1.2 million of corporate expenses mostly related to M&A and legacy litigation.

Insurance Distribution segment revenue Increased by 80% to $43 million in Q3 2025 compared to Q3 2024. This growth was driven by strong organic growth (40%) and the inclusion of an additional month of Beat results.

Insurance Distribution segment adjusted EBITDA $6 million for Q3 2025 at a 13.9% margin, up 183% compared to $2.1 million at an 8.8% margin in Q3 2024. The increased margin was due to strong organic growth and higher profit commissions and fees.

Everspan net written and net earned premium $18 million and $17 million respectively in Q3 2025, down from $33 million and $27 million in Q3 2024. The decline was due to the proactive nonrenewal of certain personal and commercial auto programs.

Everspan loss ratio Increased to 84.5% in Q3 2025 from 74.4% in Q3 2024. Adverse development accounted for over 23 percentage points of this quarter's loss ratio, mostly due to development in runoff commercial auto programs.

Corporate G&A expenses $26.6 million in Q3 2025 compared to $27.2 million in Q3 2024. Adjusted G&A expenses were $9.3 million in Q3 2025 compared to $8.5 million in Q3 2024. The difference was due to equity compensation and costs associated with the exit from the legacy business and expense reduction initiatives.