Ambac Financial Q3 revenue falls on reduced earned premiums

Reuters
2025.11.10 21:38
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Ambac Financial reported a 5% decline in Q3 revenue due to reduced earned premiums. The company repurchased 3.1 million shares, reflecting confidence in its strategic direction. Despite adverse loss experiences in its Specialty P&C Insurance segment, Ambac expects improved combined ratios by 2027 and sees growth potential with its Pivix partnership. Analysts maintain a "buy" rating on the stock, with a median 12-month price target of $12.50, indicating a potential upside of 32.2% from its recent closing price of $8.48.

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Overview

  • Ambac Q3 revenue from continuing operations fell 5% due to reduced earned premiums
  • The insurance holding firm repurchased 3.1 mln shares, representing 6.7% of shares outstanding

Outlook

  • Company expects Everspan’s combined ratios to improve between 2026 and 2027
  • Company sees significant growth potential with Pivix partnership expansion

Result Drivers

  • INSURANCE DISTRIBUTION GROWTH - Strong revenue growth in Insurance Distribution segment driven by organic growth and acquisition of Beat
  • ADVERSE LOSS EXPERIENCE - Specialty P&C Insurance segment affected by adverse loss experience, leading to exit from commercial auto program
  • SHARE REPURCHASE - Company repurchased 3.1 mln shares in October, reflecting confidence in strategic direction

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Gross $43.22

Written mln

Premium

Q3 -$9.96 -$8.05

Adjusted mln mln (1

Net Analyst)

Income

Q3 Net -$112.62

Income mln

Q3 $9.86

EBITDA mln

Q3 -$5.75

Pretax mln

Profit

Analyst Coverage

  • The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 2 “strong buy” or “buy”, no “hold” and no “sell” or “strong sell”
  • The average consensus recommendation for the property & casualty insurance peer group is “buy”
  • Wall Street’s median 12-month price target for Ambac Financial Group Inc is $12.50, about 32.2% above its November 7 closing price of $8.48

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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