Wisconsin regulator sets hearing date for Ambac Assurance sale

Published 17/07/2025, 19:18
Wisconsin regulator sets hearing date for Ambac Assurance sale

NEW YORK - Wisconsin’s insurance regulator has scheduled a hearing on September 3, 2025, regarding Ambac Financial Group’s (NYSE:AMBC) proposed sale of Ambac Assurance Corporation (AAC), the company announced Thursday. The company, currently valued at $376 million in market capitalization, has seen its stock decline 42% year-to-date.

The Wisconsin Office of the Commissioner of Insurance (OCI) will hold the hearing at 9 a.m. CT, with a pre-hearing conference set for August 4, 2025, at 3 p.m. CT.

"We are pleased that a hearing date has been set, one of the final steps in the Wisconsin regulatory approval process," said Claude LeBlanc, Ambac President and CEO, in the press release. "We are eager to complete the Sale and cement our transformation into a pure-play specialty P&C insurance platform."

Ambac Financial Group, headquartered in New York City, describes itself as an insurance holding company with a growing specialty property and casualty distribution and underwriting platform, alongside a legacy financial guaranty business in run-off. Despite revenue growth of 125% in the last twelve months, InvestingPro analysis reveals the company’s overall financial health score as ’Fair’, with additional insights available in the comprehensive Pro Research Report covering 1,400+ US equities.

The company’s stock trades on the New York Stock Exchange under the symbol AMBC. According to the announcement, Ambac’s certificate of incorporation contains restrictions on stock transfers, generally prohibiting transactions that would result in any person or group becoming a holder of 5% or more of the company’s common stock.

The announcement did not disclose the buyer of Ambac Assurance Corporation or the financial terms of the proposed transaction.

In other recent news, Ambac Financial Group reported its first-quarter 2025 earnings with a net loss from continuing operations of $16 million, translating to a loss of $0.58 per share. This was a larger loss than anticipated, as the consensus forecast was a $0.07 loss per share, while actual earnings per share were -$0.13. Despite this, Ambac’s revenue exceeded expectations, reaching $41 million compared to the projected $36 million, marking a 27% year-over-year increase driven by strong performance in the Dorado segment. In addition, Ambac announced an extension of the deadline for the sale of its legacy financial guarantee businesses to Oaktree Capital Management, moving the date to December 31, 2025. The $420 million transaction is pending final regulatory approval. Truist Securities initiated coverage on Ambac Financial with a Buy rating, setting a price target of $10. The firm highlighted Ambac’s strong balance sheet and potential for mergers and acquisitions within the P&C insurance distribution sector. Truist also noted the company’s strategic efforts to increase ownership stakes in insurance distribution partnerships, projecting significant growth in the coming years.

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