Ambac Financial Group (OSG) Q4 2024 earnings summary

Executive summary

• Specialty P&C premium rose 88% to $265 million in Q4 2024 and 74% to $876 million for 2024, with consolidated revenue up 89% to $236 million for the year, driven by acquisitions and organic growth.

• Acquired Beat Capital Partners and launched six new MGAs in 2024, expanding scale and capabilities in MGA and delegated authority platform.

• Sold legacy financial guarantee business to Oaktree for $420 million, resulting in a $570 million loss and consolidated net loss of $548 million for Q4.

• Substantially completed separation of legacy and P&C businesses, including financial and technology platforms.

• Adjusted EBITDA to Ambac common stockholders was $5 million for Q4 and $13 million for 2024, with only 5 months of consolidated Beat results included.

Financial highlights

• P&C business generated nearly $900 million in premiums, up 74% year-over-year, and $236 million in revenue, up 89%.

• Cirrata revenue reached $99 million for 2024, up 93%, with Adjusted EBITDA of $20 million and margin of 20%.

• Everspan gross premium written grew to $383 million, up 40% year-over-year; combined ratio improved to 101.6% for the year.

• Q4 2024 net loss was $548 million, or $10.23 per diluted share, primarily due to a $570 million loss on sale of discontinued operations.

• Net loss from continuing operations attributable to common shareholders was $22 million for Q4 and $59 million for the year.

Outlook and guidance

• 2028 Adjusted EBITDA to Ambac target is $80–$90 million, up from $18 million in 2024, driven by organic growth, acquisitions, and Everspan contribution.

• 2025 guidance to be revisited after closing the legacy business sale; management expects a strong pipeline for organic and strategic growth.