Insurance holding company Ambac's Q2 revenue up on Beat acquisition, loss widens on higher costs
Overview
Ambac Q2 total revenue rises 8% to $55 mln, driven by Beat acquisition
Net loss from continuing operations widens to $21 mln due to higher expenses
Wisconsin OCI recommends approval for sale of Legacy Financial Guarantee business
Outlook
Ambac sees expanding pipeline of start-up and M&A opportunities
Company anticipates stabilizing market conditions in Employer Stop Loss segment
Ambac expects sale of Legacy Financial Guarantee business to boost P&C growth
Result Drivers
BEAT ACQUISITION - Revenue growth driven by Beat Capital acquisition, offsetting reductions in earned premium at Everspan
P&C PREMIUM INCREASE - Specialty P&C premium production surged 110%, attributed to scaling of business and Beat acquisition
ORGANIC GROWTH CHALLENGES - Organic growth negatively impacted by Employer Stop Loss
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Gross Written Premium |
| $33.04 mln |
|
Q2 Adjusted Net Income | Miss | -$10.55 mln | -$10.10 mln (1 Analyst) |
Q2 Net Income |
| -$72.70 mln |
|
Q2 EBITDA |
| $4.70 mln |
|
Q2 Pretax Profit |
| -$10.17 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 31.7% above its August 6 closing price of $8.54
Press Release: ID:nBw1gwVBVa
