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NEW YORK - Ambac Financial Group, Inc. (NYSE:AMBC), currently trading near its 52-week low of $7.04, has announced the extension of its sale agreement for Ambac Assurance Corporation (AAC) and Ambac UK (AUK) to funds managed by Oaktree Capital Management, L.P. The extension moves the closing date from April 4, 2025, to July 3, 2025, as the company awaits the final regulatory approval expected in the second quarter. According to InvestingPro analysis, the stock appears undervalued at current levels, with shares down over 55% in the past year.
Claude LeBlanc, President and CEO of Ambac, confirmed that the company has fulfilled all pre-closing conditions as per the purchase agreement and is prepared to finalize the sale promptly once the last regulatory consent is secured. The process of obtaining this regulatory nod is ongoing, with both Oaktree and the regulator actively engaged in discussions. The company, with a market capitalization of approximately $328 million, has maintained a current ratio of 1.02, indicating adequate liquidity to meet its short-term obligations.
Ambac, a specialty property and casualty insurance distribution and underwriting firm based in New York City, is in the process of divesting AAC and AUK as part of its strategic business operations. Despite reporting revenue growth of 90.76% in the last twelve months, the company faces profitability challenges, with analysts expecting negative earnings for the current fiscal year. The company’s common stock is listed on the New York Stock Exchange and is subject to substantial restrictions on the transferability of its shares. Specifically, any transfer that would result in a person or group owning 5% or more of Ambac’s common stock, or an increase in an existing 5% ownership, is prohibited unless it falls under certain exceptions.
This news comes with a cautionary note that forward-looking statements included in the press release are not guarantees of future performance and may differ materially from expectations. These statements, which are based on beliefs about future events, are subject to uncertainties and factors that could cause actual results to vary significantly.
The information provided in this article is based on a press release statement from Ambac Financial Group, Inc. Investors and stakeholders are advised that the company regularly communicates its business updates, including quarterly financial results and other related information, through its website.
In other recent news, Ambac Financial Group reported its fourth-quarter 2024 earnings, revealing a net loss that did not meet analyst expectations. The company posted an earnings per share (EPS) of -$0.12, falling short of the forecasted $0.00. Revenue was also below predictions, coming in at $18.93 million against an anticipated $24.83 million. Despite the overall loss, Ambac’s consolidated Property and Casualty (P&C) business showed robust performance, generating nearly $900 million in premiums, marking a 74% increase from the previous year. Total revenues for the company rose by 93% to $99 million compared to 2023.
In terms of strategic moves, Ambac highlighted the sale of its legacy financial guarantee business to Oaktree for $420 million. The company is focusing on growth in its Specialty P&C business, with plans to revisit its 2025 guidance following the closure of its legacy business sale. Analysts noted the company’s efforts to drive total and organic revenue growth, with Ambac setting a target of achieving $80-90 million in adjusted EBITDA by 2028. The company also reported a strong pipeline of internal and external program opportunities, with Everspan’s gross premium written growing to over $380 million, up 40% from the prior year.
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