Ambac Financial Group, Inc. Announces Second
Quarter 2010 Results
August 09, 2010 05:30 PM Eastern Daylight Time
NEW YORK--(EON: Enhanced Online News)--Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today
announced a second quarter 2010 net loss of $57.6 million, or a net loss of $0.20 per share. This compares to a
second quarter 2009 net loss of $2,368.8 million, or a net loss of $8.24 per share. The second quarter 2010 results
reflect loss and loss expenses in consumer asset-backed securities, other structured finance exposures and a
transportation transaction and a net operating loss in the financial services segment, partially offset by a positive
change in fair value of credit derivatives. In 2009, Ambac’s second quarter results reflected significant loss and loss
expenses related to the insured residential mortgage-backed securities (“RMBS”) portfolio, other-than-temporary
impairment write downs of securities in its investment portfolios and an increase in its deferred tax asset valuation
Second Quarter 2010 Summary
l Net loss and loss expenses incurred amounted to $323.3 million for the current quarter, down from $1,230.8
million in the second quarter of 2009.
l Net change in fair value of credit derivatives was positive $202.2 million in the current quarter, up from $1.0
million in the second quarter 2009.
l The financial services segment recorded a $69.6 million operating loss primarily related to interest rate
movements in the derivative products business.
l Statutory surplus of Ambac Assurance Corporation (“AAC”) increased to approximately $1.5 billion at June
30, 2010 from $160.2 million at March 31, 2010, driven primarily by the CDO of ABS commutation
settlement on June 7, 2010.
Implementation of New Accounting Standards
Effective January 1, 2010, Ambac adopted Accounting Standards Update No. (“ASU”) 2009-17, “Consolidations
(Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities”. T