Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today
announced fourth quarter 2008 net loss of $2,340.8 million, or a
net loss of $8.14 on a per share basis. This compares to fourth
quarter 2007 net loss of $3,273.9 million, or net loss of $32.03 on
a per share basis. The fourth quarter 2008 results reflect ($594.4)
million net change in fair value of credit derivatives. The fourth
quarter 2007 results reflected a net change in fair value of credit
derivatives amounting to ($5,175.5) million. Other differences in
results were due to: (i) the deferred tax asset valuation allowance
increased significantly in the fourth quarter 2008 resulting from
management�s revised estimate (ii) increased loss provisioning in
the fourth quarter 2008 primarily related to residential
mortgage-backed securities (RMBS) insurance transactions; and (iii)
mark-to-market losses and realized losses on terminations related
to derivative products (interest rate, foreign exchange and total
return swaps) within the financial services segment in the fourth
quarter 2008. Those differences were partially offset by increased
accelerated premiums earned resulting from refundings in the
financial guarantee segment and net realized gains on investment
agreement terminations within the financial services segment.
Quarter Summary
The deferred tax asset valuation allowance amounts to $2,053.0
million at December 31, 2008, representing an increase of $1,534.0
million from September 30, 2008. Over the past 24 months, Ambac has
recorded significant mark-to-market losses on its CDS portfolio and
has incurred losses in its insured�RMBS portfolio. The actual loss
experience for these mortgage-related securities has been greater
than originally anticipated. As such, during the quarter, for the
purposes of estimating future taxable income available to utilize
net operating losses, management revised its estimate of potential
future increases in loss reserves to conservatively reflect the
potential impact that further deterioration in Ambac�s insured
portfolio would have on future taxable income. The revised estimate
resulted in an increase in the valuation allowance.
Net loss provisioning of $916.4 million was recorded for the
quarter primarily relating to the RMBS insurance portfolio. The
quarterly provision was offset by a benefit resulting from an
increase in estimated recoveries from substantiated representation
and warranty breaches in certain second-lien RMBS transactions.
Net change in fair value of credit derivatives amounted to
($594.4) million. However, estimated impairment losses in this
portfolio did not change significantly. As previously announced on
November 19, 2008, four CDO of ABS transactions with an aggregate
of approximately $3.5 billion notional outstanding were settled
with counterparties in exchange for a total cash payment by Ambac
Assurance Corporation (AAC) of $1.0 billion.
As previously announced on November 6, 2008, Ambac received
approval from the Wisconsin Office of the Commissioner of Insurance
(OCI) to utilize the resources of AAC to resolve the ratings-driven
liquidity gap in the financial services business and, as of this
date, all collateral requirements of that business have been
met.
Ambac�s President and Chief Executive Officer, David Wallis,
commented, �While our financial results continue to be affected by
the disappointing housing market and other economic conditions, I
am encouraged by the progress made in relation to some of our
strategic initiatives. We continue to place significant emphasis on
de-risking our portfolio. The successful commutation of $3.5
billion of CDO of ABS exposures, including two CDO-squared deals,
was constructive and we will continue to pursue this de-risking
approach. Equally encouraging have been the remediation efforts on
our mortgage exposure which continues to reveal opportunities to
recover losses in that portfolio. In relation to new business, we
are progressing towards the launch of our municipal-only financial
guarantor � Everspan Financial Guarantee Corp., and expect to begin
doing business out of this company during the second quarter. We
believe that these strategic initiatives will add greater stability
to our business, and make Ambac more resistant to external
pressures.�
Mr. Wallis continued, �In the face of the most difficult
recession in many decades, Ambac continues to meet its financial
obligations. Our business model is proving to be solid and flexible
and I am cautiously optimistic that the Federal economic recovery
programs announced to date will help the markets to begin the
gradual road back to recovery.�
Financial
Results
Net Loss Per Share
Net loss per share is computed in conformity with U.S. generally
accepted accounting principles (GAAP). However, many research
analysts and investors do not limit their analysis of our earnings
to a strictly GAAP basis. In order to assist investors in their
understanding of quarterly results, Ambac provides additional
information.
Earnings measures reported by research analysts exclude the net
(loss)/income impact of net gains and losses from sales of
investment securities and mark-to-market gains and losses on
credit, total return and non-trading derivative contracts that are
not impaired (collectively �net security gains and losses�) and
certain other items. Certain research analysts and investors
further exclude the net income impact of accelerated premiums
earned on guaranteed obligations that have been refunded and other
accelerated earnings (�accelerated earnings�). Table I, below,
provides fourth quarter and full year comparisons of losses for
2008 and 2007.
�
Table I
Earnings Per Share
� �
Fourth Quarter Full Year
2008
�
2007
2008
�
2007
Net loss per share ($8.14 ) ($32.03 ) ($22.31 ) ($31.56 ) Effect of
net security losses (gains)
$1.35 �
$25.82 �
(0.06 )
$31.33 �
Operating loss (a)(b) ($6.79 )
($6.21 ) ($22.37 ) ($0.23
) Effect of accelerated earnings
($0.18
) ($0.18 )
($0.98 ) ($0.76
) Core loss (b)
($6.97 )
($6.39 ) ($23.35
) ($0.99 ) �
(a) Consensus earnings
that are reported by earnings estimate services, such as First
Call, are on this basis.
�
(b) Operating and core
loss are non-GAAP measures. See footnote 1, below.
�
Net Premiums Earned
Net premiums earned for the fourth quarter of 2008 were $228.1
million, up 9% from $209.6 million earned in the fourth quarter of
2007. Normal earned premiums in the fourth quarter 2008 of $146.9
million were 18% lower than $179.8 million reported in the fourth
quarter 2007, primarily due to reduced premiums written in 2008,
the high level of public finance refunding activity in 2008 and the
Assured Guaranty Re cede which took place in December 2007.
Net premiums earned include accelerated premiums, which result
from refundings, calls and other accelerations recognized during
the quarter. Accelerated premiums were $81.2 million in the fourth
quarter of 2008, up 172% from the comparable period in 2007. During
the fourth quarter of 2008 and 2007, approximately 85% and 89%,
respectively, of the accelerated premiums related to U.S. public
finance transactions.
A breakout of net premiums earned by market sector�for 2008 and
2007 are included in Table II. Normal net premiums earned exclude
accelerated premiums that result from refundings, calls and other
accelerations.
�
Table II
Net Premiums Earned
� �
$-millions Fourth Quarter Full Year � �
% � �
% 2008 2007 Change
2008 2007 Change Public Finance $ 46.4 $ 58.4
- 21 % $ 203.8 $ 234.9 - 13 % Structured Finance 60.0 72.9 - 18 %
261.0 291.7 - 11 % International
40.5
48.5 - 17 %
176.2 185.9 - 5
% Total Normal Premiums 146.9 179.8 - 18 % 641.0 712.5 - 10 %
Accelerated Premiums
81.2 29.8 + 172 %
381.8 129.0 + 196 % Total
$
228.1 $ 209.6 + 9 %
$1,022.8
$ 841.5 + 22 % �
Net Investment Income
Net investment income for the fourth quarter of 2008 was $109.5
million, representing a decrease of 8% from $119.3 million in the
comparable period of 2007. This decrease was due primarily to
liquidations in the portfolio to pay commutations on CDO of ABS
transactions and RMBS claim payments. Net investment income was
also negatively impacted by a partial re-balancing of the portfolio
to short-term securities and the effects of intercompany loans.
Those negative impacts were partially offset by positive cash flow
from the ongoing collection of financial guarantee premiums and
fees, coupon receipts on invested assets, and the impact from $1.3
billion of capital contributed by Ambac Financial Group, Inc. from
the capital raise in March 2008.
Net Change in Fair Value of Credit Derivatives
Realized gain/losses and other settlements from credit
derivative contracts represents the normal accretion into income of
premiums received for transactions executed in credit derivative
format, offset by loss payments on such transactions. Net realized
gains/(losses) and other settlements from credit derivative
contracts in the fourth quarter of 2008 amounted to ($988.5)
million representing the previously reported $1.0 billion payment
to commute certain CDO transactions in November 2008 and $2.2
million of interest payments on those CDO transactions prior to
commutation, offset by $13.7 million of premiums received during
the quarter. In the fourth quarter 2007, premiums received amounted
to $23.5 million while no loss payments were made.
Net unrealized gains on Ambac�s CDO portfolio amounted to $394.1
million in the fourth quarter 2008, compared to net unrealized
losses of ($5,199.0) million in the fourth quarter 2007. The net
unrealized gains during the fourth quarter 2008 resulted primarily
from reclassification of $1.0 billion to realized losses in
connection with the CDO commutation settlements described above
plus a gain on those settlements and the larger discounting effect
of wider AAC credit spreads, partially offset by (i) lower values
on the reference obligations across all asset classes; and (ii)
internal ratings downgrades of the CDO of ABS portfolio. The net
effect of adjusting the fair value of credit derivative liabilities
to reflect AAC�s own credit risk, as required under SFAS 157,
resulted in an approximate $3.2 billion reduction of the change in
unrealized losses in the fourth quarter of 2008.
Ambac reports credit impairments on CDO of ABS transactions
where we believe we may have to pay claims in the future. Ambac�s
estimate of credit impairment did not change significantly from
September 30, 2008. Ambac�s impairment estimate was favorably
impacted by the commutations executed on poorly performing
transactions during the quarter.
Financial Guarantee Loss Reserves
Total net loss and loss expenses were $916.4 million in the
fourth quarter 2008, up from net expense of $208.5 million in the
fourth quarter of 2007, primarily driven by increased RMBS losses
and one non-RMBS structured finance loss in the fourth quarter
2008. Continued deterioration in the performance of the underlying
RMBS loans was observed, most prominently in the second-lien and
Alt-A portfolios. The losses related to second lien transactions
are net of remediation benefits recorded for substantiated
representation and warranty breaches in certain transactions
amounting to approximately $348 million in the fourth quarter 2008,
bringing total estimated remediation benefits to $859.5 million at
December 31, 2008. Such recoveries are expected to take several
years for ultimate collection.
A roll forward of case basis reserves and active credit reserves
(ACR) from September 30, 2008 to December 31, 2008 is shown in
Table III.
Table III
Insurance Loss Reserves Roll
Forward
� �
$-millions � �
4(th) Qtr Loss Case and
Loss Reserves ACR Total Expenses
Balance at September 30, 2008 $ 900.7 $ 600.3 $ 1,501.0 $ -
Additions to reserves 478.7 437.7 916.4 916.4 Transfers from ACR to
Case 68.8 (68.8) - - Less: claims paid
(287.7)
- (287.7) - Balance at
December 31, 2008
$ 1,160.5 $ 969.2
$2,129.7 $ 916.4
The increase in case reserves was primarily driven by
deteriorating performance in certain underperforming second-lien
and other RMBS transactions partially offset by the impact of
expected future remediation benefits. Total net claims paid during
the quarter amounted to $287.7 million and were almost entirely
related to second-lien RMBS transactions.
Active credit reserves are established for probable and
estimable losses due to credit deterioration on adversely
classified insured transactions that have not yet defaulted. The
ACR increase was primarily driven by deteriorating performance in
real estate-related transactions partially offset by transfers of
reserves to case basis as a result of defaults on certain
second-lien RMBS that occurred during the quarter.
Case reserves and ACR for all RMBS insurance exposures at
December 31, 2008 total $1,728.4 million, of which $1,163.5 million
relate to the second-lien portfolio.
Financial Services
The financial services segment comprises the investment
agreement business and the derivative products business. Gross
interest income less gross interest expense from investment and
payment agreements plus results from the derivative products
business, excluding net realized investment gains and losses and
unrealized gains and losses on total return swaps and non-trading
derivative contracts, was ($19.5) million in the fourth quarter of
2008, down from $2.5 million in the fourth quarter of 2007. The
decrease resulted primarily�from the increase in certain variable
rate municipal bond rates, which has caused a corresponding
increase in Ambac�s payment obligations on related interest rate
swaps, partially offset by increased net investment income from the
investment agreement business.
The interest rate swap and investment agreement businesses are
being run-off. Since the end of 2007 approximately $5.6 billion of
swap notional, not including the notional of related hedge
positions, has been terminated. The investment and payment
agreement portfolio has been reduced by approximately $2.5 billion
during the fourth quarter and $5.1 billion for the year, to $2.8
billion at December 31, 2008, through negotiated terminations,
terminations contractually triggered by rating downgrades of Ambac
Assurance, and scheduled amortization.
Balance Sheet and
Liquidity
Ambac�s total assets at December 31, 2008 amounted to $17.0
billion, down 28% from $23.6 billion at December 31, 2007 primarily
due to a decline in the value of the investment portfolio. The fair
value of the investment portfolio declined from $18.4 billion
(amortized cost of $18.5 billion) at December 31, 2007 to $10.3
billion (amortized cost of $12.8 billion) at December 31, 2008. The
reasons for the decline in fair value are as follows: (i)
commutation and claims payments made during the year on
underperforming CDOs of ABS and second-lien RMBS amounting to $2.4
billion during 2008; (ii) terminations of investment agreement
liabilities during 2008 amounting to approximately $5.1 billion;
and (iii) decline in fair value of securities, most prominently the
mortgage and asset-backed securities portfolio caused by the
deteriorating global housing market.
Ambac�s total liabilities at December 31, 2008 amounted to $20.7
billion, down 3% from $21.3 billion at December 31, 2007. Loss and
loss expense reserves increased approximately $1.8 billion year
over year, primarily related to deteriorating RMBS exposures while
derivative liabilities increased approximately $3.1 billion year
over year, primarily related to mark-to-market losses in the CDO
portfolio. Those increases were more than offset by: (i) a decline
in obligations under investment and payment agreements from $8.6
billion at December 31, 2007 to $3.2 billion driven primarily by
terminations and scheduled pay downs of investment agreements in
2008; and (ii) a decline in unearned premiums driven by normal
amortization of premiums and significant accelerations from
refundings.
At December 31, 2008, Ambac�s total stockholders� equity
amounted to a deficit of ($3.8) billion. The deficit was driven by
the current year net loss and the increase in unrealized losses in
the investment portfolio. On a statutory basis, Ambac has positive
surplus as regards policyholders amounting to $1.6 billion. Ambac�s
statutory financial statements will be filed on March 2, 2009.
Ambac�s financial guarantee investment portfolio has a fair
value of $7.7 billion (amortized cost of $9.4 billion) at December
31, 2008, and includes $1.3 billion of short-term securities. The
portfolio consists of high quality municipal bonds, Treasuries,
U.S. Agencies and Agency MBS as well as mortgage and asset-backed
securities purchased from the investment agreement (IA) business.
In November, Ambac received permission from the OCI to use its
resources to allow the investment agreement and derivative products
businesses to meet collateral and termination requirements
triggered by AAC�s downgrade to Baa1 by Moody�s. As of December 31,
2008, AAC had purchased approximately $2.6 billion of securities,
primarily Alt-A RMBS, from the IA business. At December 31, 2008,
over 90% of the difference between fair value and amortized cost in
the financial guarantee investment portfolio is related to mortgage
and asset-backed securities.
Ambac�s total financial guarantee net par exposure has decreased
17% from $524.0 billion at December 31, 2007 to $434.3 billion at
December 31, 2008, driven by normal amortization, refundings and
commutations. The Structured Finance and International Finance net
par exposure has declined $47 billion, or 19%, during the year.
Cash and intercompany receivables at the holding company
amounted to $233.0 million at quarter end which approximates 2.0
times annual debt service requirements of the holding company. AAC
is not permitted to make dividend payments to the holding company
in 2009 without first receiving permission from OCI.
Ambac�s claims paying resources at December 31, 2008 amounted to
$13.5 billion. AAC is currently rated A (negative outlook) and Baa1
(developing outlook) by S&P and Moody�s, respectively.
Everspan Update
Ambac continues to work diligently with rating agencies and
regulators as it prepares to launch Everspan Financial Guarantee
Corp. (Everspan), a wholly-owned subsidiary of AAC. Although
Everspan will be a subsidiary of AAC, it will be clearly insulated
from the entity. It will have segregated capital, separate risk
management and a separate Board of Directors. Douglas
Renfield-Miller, CEO of Everspan, stated, �Our experienced
management team is in place, our Board is largely identified and we
have an established infrastructure that allows us to start up
operations immediately upon receipt of capital and ratings.� Mr.
Renfield-Miller continued, �There are no current plans for Everspan
to assume any of Ambac�s legacy public finance or other exposures.
We believe Everspan�s capacity is best utilized for new business
and that the market will value a clean entity.�
Annual Meeting of
Stockholders
The Board of Directors also set the 2009 Annual Meeting of
Stockholders for Tuesday, May 5, 2009, at 11:30 a.m. in New York
City. The record date for determining stockholders entitled to
notice of, and to vote at, the annual meeting will be the close of
business, March 9, 2009.
About Ambac
Ambac Financial Group, Inc., headquartered in New York City, is
a holding company whose affiliates provide financial guarantees and
financial services to clients in both the public and private
sectors around the world. Ambac's principal operating subsidiary,
Ambac Assurance Corporation, a guarantor of public finance and
structured finance obligations, has a Baa1 rating (developing
outlook) from Moody's Investors Service, Inc. and an A rating
(negative outlook) from Standard & Poor's Ratings Services.
Ambac Financial Group, Inc. common stock is listed on the New York
Stock Exchange (ticker symbol ABK).
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 wrong and are based on
Ambac�s management 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)�changes in Ambac�s and/or Ambac Assurance�s
credit or financial strength ratings; (2)�the risk of credit and
liquidity risk due to unscheduled and unanticipated withdrawals on
investment agreements; (3)�the risk that market risks impact assets
in our investment portfolio; (4)�inadequacy of reserves established
for losses and loss expenses; (5)�credit risk throughout our
business, including credit risk related to residential
mortgage-backed securities and CDOs and large single exposures to
reinsurers; (6)�market spreads and pricing on insured
collateralized debt obligations (�CDOs�) and other derivative
products insured or issued by Ambac; (7)�the risk that holders of
debt securities or counterparties on credit default swaps or other
similar agreements seek to declare events of default or seek
judicial relief or bring claims alleging violation or breach of
covenants by Ambac or one of its subsidiaries; (8)�default by one
or more of Ambac Assurance�s�portfolio investments, insured
issuers, counterparties or reinsurers; (9)�the risk that we may be
required to raise additional capital, which could have a dilutive
effect on our outstanding equity capital and/or future earnings;
(10)�our ability or inability to raise additional capital,
including the risks that regulatory or other approvals for any plan
to raise capital are not obtained, or that various conditions to
such a plan, either imposed by third parties or imposed by Ambac or
its Board of Directors, are not satisfied and thus potentially
necessary capital raising transactions do not occur, or the risk
that for other reasons the Company cannot accomplish any
potentially necessary capital raising transactions; (11)�the risk
that Ambac�s holding company structure and certain regulatory and
other constraints, including adverse business performance, affect
Ambac�s ability to pay dividends and make other payments;
(12)�legislative and regulatory developments, including the
Troubled Asset Relief Program and other programs under the
Emergency Economic Stabilization Act and other similar programs;
(13)�changes in the economic, credit, foreign currency or interest
rate environment in the United States and abroad; (14)�changes in
capital requirements whether resulting from downgrades in our
insured portfolio or changes in rating agencies� rating criteria or
other reasons; (15)�changes in accounting principles or practices
relating to the financial guarantee industry or that may impact
Ambac�s reported financial results; (16)�the level of activity
within the national and worldwide credit markets; (17)�competitive
conditions, pricing levels and reduction in demand for financial
guarantee products; (18) changes in our business plan, our decision
to discontinue writing new business in the financial services area,
to significantly reduce new underwriting of structured finance
business and to discontinue all new underwritings of structured
finance business; (19)�the risk that our underwriting and 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)�the risk of volatility in income and
earnings, including volatility due to the application of fair value
accounting, or FAS 133, to the portion of our credit enhancement
business which is executed in credit derivative form; (21)�changes
in expectations regarding future realization of gross deferred tax
assets; (22) risks relating to the re-launch of Connie Lee as
Everspan Financial Guaranty Corp.; (23)�operational risks,
including with respect to internal processes, risk models, systems
and employees; (24)�the risk of decline in market position;
(25)�changes in prepayment speeds on insured asset-backed
securities; (26) factors that may influence the amount of
installment premiums paid to Ambac; (27)�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; (28)�changes in tax laws; (29)�the
policies and actions of the United States and other governments;
(30) other factors described in the Risk Factors section in Part I,
1A of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2007 and in Part II, Item 1A of our Quarterly Report
on Form 10-Q for the quarters ended March 31, 2008, June 30, 2008
and September 30, 2008, and also disclosed from time to time by
Ambac in its subsequent reports on Form 10-Q and Form 8-K, which
are or will be available on the Ambac website at www.ambac.com and
at the SEC�s website, www.sec.gov; and (31)�other risks and
uncertainties that have not been identified at this time. 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.
*******************
Footnote
(1) Operating earnings and core earnings are not substitutes for
net income computed in accordance with GAAP, but are useful
measures of performance used by management, equity analysts and
investors because they allow more consistent period-to-period
comparison of our earnings without the effects of net securities
gains/losses and accelerated earnings. Net securities gains/losses
excluded from operating earnings consists of investment portfolio
realized gains and losses, mark-to-market gains and losses on
credit, total return and non-trading derivative contracts in excess
of estimated impairment amounts, and certain other items. Core
earnings further exclude the impact of refundings, calls and other
accelerations. The definitions of operating earnings and core
earnings used by Ambac may differ from definitions of operating
earnings and core earnings used by other public holding companies
of financial guarantors.
�
Ambac Financial Group, Inc. and Subsidiaries
Consolidated Balance Sheets December 31, 2008 and
December 31, 2007 (Dollars in Thousands Except Share
Data) � � � � �
December 31, 2008
December 31, 2007 (unaudited)
Assets �
Investments: Fixed income
securities, at fair value (amortized cost of $11,080,723 in
2008 and $17,225,611 in 2007) $ 8,537,676
$ 17,127,485 Fixed income securities pledged as
collateral, at fair value (amortized cost of $277,291 in
2008 and $345,140 in 2007) 286,853 374,840
Short-term investments (amortized cost of $1,454,229 and
$879,039 in 2007) 1,454,229 879,067 Other
(cost of $13,956 in 2008 and $13,571 in 2007) �
14,059 �
�
14,278 �
Total investments 10,292,817
18,395,670 �
Cash 107,811 123,933
Receivable for securities sold 15,483 11,068
Investment income due and accrued 116,769
202,737 Reinsurance recoverable on paid and unpaid
losses 157,627 11,862 Prepaid reinsurance
307,906 489,028 Deferred taxes
2,127,499 2,116,380 Current taxes
192,669 - Deferred acquisition costs
207,229 255,639 Loans 798,848
867,676 Derivative assets 1,866,833
990,534 Other assets �
759,595 � �
100,484 �
Total assets $ 16,951,086 �
$ 23,565,011 � �
Liabilities and
Stockholders' Equity �
Liabilities: Unearned
premiums $ 2,397,221 $ 3,123,860
Loss and loss expense reserve 2,265,860
484,276 Ceded reinsurance balances payable
15,597 32,435 Obligations under investment and
payment agreements 3,244,098 8,570,902
Obligations under investment repurchase agreements
113,737 135,524 Securities sold under agreement to
repurchase - 100,000 Current income taxes
- 97,826 Long-term debt 1,868,690
1,669,945 Accrued interest payable 68,806
113,443 Derivative liabilities 9,769,514
6,685,528 Minority Interest 700,000 -
Other liabilities 279,616 270,734 Payable
for securities purchased �
10,256 � �
645 �
Total liabilities �
20,733,395 � �
21,285,118
� �
Stockholders' equity: Preferred stock -
- Common stock 2,944 1,092
Additional paid-in capital 2,030,031 839,952
Accumulated other comprehensive loss (1,670,198
) (22,138 ) Retained earnings
(3,550,768 ) 2,107,773 Common stock held in
treasury at cost �
(594,318 ) �
(646,786
) Total stockholders' equity �
(3,782,309
) �
2,279,893 �
Total liabilities and
stockholders' equity $ 16,951,086 �
$
23,565,011 � �
Number of shares outstanding (net of
treasury shares) �
287,239,482 � �
101,550,023 �
Book value per share �
($13.17 ) $
22.45 � � �
Ambac Financial Group, Inc. and
Subsidiaries Consolidated Statements of Operations
(Unaudited) For the Three Months and Years Ended December
31, 2008 and 2007 (Dollars in Thousands Except Share
Data) � � � � � � �
Three Months Ended Years
Ended December 31, December 31, �
2008 � �
2007 � �
2008 � �
2007 �
Revenues:
Financial Guarantee: Gross premiums written $
117,743 $ 233,766 $ 536,875
$ 1,031,402 Ceded premiums written �
(16,553 ) �
(184,516 ) �
(53,162
) �
(277,532 ) Net premiums written
$ 101,190 �
$ 49,250 �
$
483,713 �
$ 753,870 � �
Net premiums
earned $ 228,094 $ 209,641 $
1,022,757 $ 841,461 Net investment
income 112,918 122,802 494,060
465,048 Net realized investment (losses) gains
(61,456 ) 4,645 9,007 9,931 �
Change in fair value of credit derivatives: Realized
gains and losses and other settlements (988,507 )
23,514 (1,794,428 ) 76,434
Unrealized gains (losses) �
394,148 � �
(5,199,021 ) �
(2,236,694 ) �
(6,004,391 ) Net change in fair value of credit
derivatives (594,359 ) (5,175,507 )
(4,031,122 ) (5,927,957 ) �
Other
income 726 3,519 8,523 10,733
Financial Services: Investment income 50,427
110,868 255,885 445,344 Derivative
products (31,963 ) (409 )
(132,798 ) 6,877 Net realized investment
gains (losses) 160,409 (34,180 )
(236,350 ) (29,053 ) Net
mark-to-market losses on total return swap contracts
(56,766 ) (22,678 ) (130,965
) (33,301 ) Net mark-to-market losses on
non-trading derivatives (10,824 ) (9,122
) (15,792 ) (9,059 )
Corporate: Net investment income �
558 � �
903 � �
3,309 � �
5,050 � �
Total
revenues �
(202,236 ) �
(4,789,518
) �
(2,753,486 ) �
(4,214,926 )
�
Expenses: Financial Guarantee: Loss and loss
expenses 916,414 208,509 2,227,583
256,109 Underwriting and operating expenses
58,365 34,954 216,196 139,344
Interest expense on variable interest entity notes
3,185 3,455 13,488 4,622 Financial
Services: Interest on investment and payment agreements
38,012 107,923 234,977 420,005
Operating expenses 2,595 2,660 12,747
12,229 Interest 29,804 22,128
114,226 85,740 Corporate �
12,536 � �
4,164 � �
45,752 � �
13,941 � �
Total
expenses �
1,060,911 � �
383,793 � �
2,864,969 � �
931,990 � �
Loss before income
taxes (1,263,147 ) (5,173,311 )
(5,618,455 ) (5,146,916 ) Provision
(benefit) for income taxes �
1,077,670 � �
(1,899,387 ) �
(9,207 ) �
(1,898,759 ) �
Net loss �
($2,340,817
) �
($3,273,924 ) �
($5,609,248
) �
($3,248,157 ) � � �
Net loss per
share �
($8.14 ) �
($32.03 ) �
($22.31 ) �
($31.56 ) �
Net loss per
diluted share �
($8.14 ) �
($32.03
) �
($22.31 ) �
($31.56 ) � �
Weighted average number of common shares outstanding: �
Basic �
287,506,329 � �
102,201,459 � �
251,391,680 � �
102,929,122 � �
Diluted �
287,506,329 � �
102,201,459 � �
251,391,680 �
�
102,929,122 � �
Grafico Azioni AMBAC (NYSE:ABK)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni AMBAC (NYSE:ABK)
Storico
Da Lug 2023 a Lug 2024