Ambac reports 110% increase in Q2’25 total P&C premium production

Insurance holding company Ambac Financial Group, Inc. has announced its financial results for the second quarter of 2025, reporting total revenues from continuing operations of $55 million, an 8% increase from the $51 million in Q2 2025, and a 110% increase in total P&C premium production, compared to the same period last year.

Growth in total revenue was primarily attributed to the inclusion of Beat Capital, which more than offset a managed reduction to earned premium at Everspan following last year’s decision to exit several programs and a reduction in corporate revenue primarily related to an investment gain realized last year.

However, revenue in the quarter was negatively impacted by $2.5 million of net foreign exchange losses.

Total P&C premium production increased to $346 million in the quarter. Ambac’s Specialty P&C Insurance (Everspan) business reported gross premiums written of $96.2 million in Q2 2025, a 13% decrease compared to Q2 2024. Net premiums written were $15.2 million in the quarter, 53% down compared to last year’s Q2.

Total revenues also experienced a decrease in the quarter, to $21.4 million, down 33% from Q2 2024. The segment’s net income from continuing operations stood at $428 million in the quarter, increasing 140% compared to the same period last year.

The Insurance Distribution segment (Cirrata) reported a total revenue growth of 148% to $33.04 million for Q2 2025, compared to last year’s Q2. However, there was a net loss of $7.9 million for the quarter, down from $13.2 million in Q2 2024.

Organic growth at Cirrata continued to be affected by Employer Stop Loss and short-term medical, which more than offset organic expansion across other programs.

Net loss from continuing operations to Ambac shareholders for Q2 2025 increased by $6 million to a loss of $21 million compared to the $15million loss in the same prior-year period.

According to the firm, the increase was driven by increased intangible amortization and interest expense related to the acquisition of Beat.

Total expenses from continuing operations for Q2 2025 were $78 million, an increase of 18% compared to the $66 million in the same prior-year period. The increase was primarily due to an increase in G&A expenses, intangible amortization and interest expense, all of which relate to the Beat acquisition.

These increases more than offset the decline in transaction-related expenses and the lower losses and loss adjustment expenses at Everspan, which resulted from the exit of several retained programs.

Claude LeBlanc, President and Chief Executive Officer, stated: “Our P&C business continues to scale, with premium production up 110% to over $340 million and revenue up 21% to $54 million, both compared to the second quarter of 2024, bolstered by our acquisition of Beat. Organic growth was negatively impacted by Employer Stop Loss; however, we are seeing signs of the market stabilizing and turning more favourable.

“Including Beat, organic growth would have been 12% compared to our reported 2% contraction. I am very pleased with the overall performance and growth of our businesses. As we look ahead we are seeing an expanding pipeline of start-up and M&A opportunities aligned with our strategy and business model.”

LeBlanc continued: “During July the Wisconsin OCI recommended the approval of the sale of our Legacy Financial Guarantee business and set the Form A hearing date for September 3rd. We look forward to closing this transaction and accelerating the growth and profitability of our P&C businesses.”

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