Ambac completes $420 million sale of legacy financial guarantee units

Published 29/09/2025, 21:18
Ambac completes $420 million sale of legacy financial guarantee units

NEW YORK - Ambac Financial Group, Inc. (NYSE:AMBC) announced Monday it has completed the sale of its legacy financial guarantee businesses to funds managed by Oaktree Capital Management, L.P. for $420 million in cash. The transaction value represents nearly 93% of Ambac’s current market capitalization of $451 million, according to InvestingPro data.

The transaction includes the divestiture of Ambac Assurance Corporation and Ambac Assurance UK Limited, following approval from the Wisconsin Office of the Commissioner of Insurance earlier in the day.

"This transaction marks a defining moment in our company’s history, enabling us to focus exclusively on long-term growth and value creation," said Ambac President and Chief Executive Officer Claude LeBlanc in a press release statement.

The sale transforms Ambac into what the company describes as a "pure-play MGA and specialty insurance platform," building on the foundation established since launching its specialty insurance business in 2020.

Greg Share, Managing Director for Oaktree’s Global Opportunities strategy, stated the transaction supports Ambac’s transition to a specialty insurance business model.

Moelis & Company LLC served as exclusive financial advisor to Ambac, while Debevoise & Plimpton LLP provided legal counsel. BlackRock’s Financial Markets Advisory team acted as valuation advisor to Oaktree, with Kirkland & Ellis LLP serving as legal counsel.

Oaktree Capital Management currently manages $209 billion in assets as of June 30, 2025, according to the announcement.

Ambac Financial Group, headquartered in New York City, operates specialty insurance underwriting and distribution businesses in the U.S. and U.K. The company’s common stock trades on the New York Stock Exchange.

In other recent news, Ambac Financial Group reported a net loss for the second quarter of 2025, with both earnings per share (EPS) and revenue missing analyst expectations. The company posted an EPS of -$0.22, which was below the forecasted -$0.18, representing a 22.22% negative surprise. Additionally, revenue reached $33 million, falling short of the projected $35 million, resulting in a 5.71% negative surprise. These results have raised concerns among investors regarding the company’s performance. The earnings miss was followed by a decrease in Ambac’s stock price. Analysts have yet to provide any updates regarding potential upgrades or downgrades following these results. Investors will likely be watching closely for any future developments or guidance from the company.

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