Ambac Financial Group Inc. reported its financial results for the three months ended September 30, 2024, revealing a significant shift in performance compared to the same period in 2023. The company experienced a net loss of $29 million, a stark contrast to the net income of $66 million reported in the prior year. This loss was also reflected in the net income attributable to common stockholders, which fell to $(28) million from $66 million.

Despite the net loss, total revenues increased to $114 million, up from $74 million in the same quarter of 2023. This growth was driven by several key factors: net premiums earned rose to $33 million from $18 million, and commission income increased to $23 million, compared to $15 million in the previous year. Additionally, net investment income improved to $38 million, up from $30 million.

Total expenses surged to $141 million, a significant increase from just $6 million in the same period last year. This rise in expenses contributed to the overall net loss for the quarter. The company reported loss and loss adjustment expenses of $38 million, a notable change from $(76) million in the same quarter of 2023.

On the balance sheet, Ambac showed improvements in liquidity and equity. Cash and cash equivalents increased to $70 million, up from $28 million as of December 31, 2023. Total stockholders’ equity rose to $1,670 million, compared to $1,415 million at the end of the previous fiscal year. Total assets also grew to $9,256 million, up from $8,428 million.

Strategically, Ambac completed the acquisition of Beat Capital Partners Limited on July 31, 2024, for approximately $281 million, which included $252 million in cash and shares. Additionally, the company is in the process of selling Ambac Assurance Corporation for $420 million, pending regulatory approvals.

Overall, while Ambac Financial Group Inc. faced a net loss in the latest quarter, it demonstrated revenue growth and strategic expansion through acquisitions, alongside a strengthened balance sheet.