Ambac Financial Group reported a net loss from continuing operations of $21 million for the second quarter of 2025, compared to a loss of $15 million in the same period last year.
The loss was primarily attributed to increased intangible amortization and interest expense tied to the company's acquisition of Beat Capital.
Total revenue from continuing operations reached $55 million, up 8% from $51 million in the second quarter of 2024. The increase was led by contributions from Beat Capital, which offset declines from program exits at Everspan and lower corporate investment income compared to the prior year. Revenue was also affected by $2.5 million in net foreign exchange losses.
Expenses from continuing operations totaled $78 million for the quarter, up from $66 million a year earlier. The increase was largely driven by general and administrative costs, intangible amortization, and interest expense related to the Beat acquisition.
These cost increases were partially offset by lower losses and loss adjustment expenses at Everspan, stemming from previously announced program exits, as well as reduced transaction-related costs.
Comparatively, in the first quarter, Ambac's P&C business showed significant expansion, with total premium production rising 70% year-over-year to $318 million. Revenue from continuing P&C operations during that quarter increased 27% to $63 million.
Claude LeBlanc (pictured above), Ambac’s president and CEO, said premium production for the P&C business rose 110% to over $340 million, while revenue reached $54 million, up 21% from the second quarter of 2024.
“Organic growth was negatively impacted by Employer Stop Loss; however, we are seeing signs of the market stabilizing and turning more favorable,” LeBlanc said. “As we look ahead we are seeing an expanding pipeline of start-up and M&A opportunities aligned with our strategy and business model."
The company’s insurance distribution segment, Cirrata, reported revenue of $33 million in the second quarter, a year-over-year increase of 148%. Cirrata posted a net loss of $8 million and adjusted EBITDA of $5 million, up 91% from the prior year. Adjusted EBITDA to shareholders rose 28% to $3 million.
Everspan, Ambac’s specialty property and casualty insurance segment, reported a combined ratio of 107%, an improvement of 270 basis points from the prior year. The loss ratio fell 17 percentage points to 67.8%.
Adjusted EBITDA from continuing operations to shareholders was a loss of $5 million for the quarter, compared to a loss of less than $1 million in the same period in 2024. The decline was driven by corporate-level losses, which offset positive earnings contributions from both Cirrata and Everspan.
The consolidated adjusted EBITDA margin before accounting for non-controlling interests was negative 4.6%, compared to negative 0.4% in the year-ago quarter.
Meanwhile, Ambac and Oaktree Capital agreed in July to extend the closing deadline for the sale of Ambac Assurance Corporation and Ambac UK to December 31, 2025. The delay allows time for final regulatory review and approval by the Wisconsin Office of the Commissioner of Insurance.
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