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The '''Ambac Financial Group, Inc.''', generally known as Ambac (originally the '''American Municipal Bond Assurance Corporation'''), is an American [[holding company]]. Its subsidiaries provide financial guarantee products such as [[bond insurance]] to clients in both the public and private sectors globally. Ambac Assurance is a guarantor of public finance and structured finance obligations. Its common stock and common stock purchase warrants are listed on the [[New York Stock Exchange|NYSE]]<ref>{{Cite web|url=https://ir.ambac.com/news-releases/news-release-details/ambac-transfer-listing-nyse|title=Ambac to Transfer Listing to NYSE|website=Ambac Financial Group, Inc.|language=en|access-date=2020-02-06}}</ref> under the symbols {{NasdaqSymbol|AMBC}} and {{NasdaqSymbol|AMBCW}} respectively. Ambac is regulated by the [[insurance commission]] of Wisconsin. It has its headquarters in [[Lower Manhattan]], [[New York City]].<ref>"[http://www.ambac.com/contactus.asp Contact Us] {{Webarchive|url=https://web.archive.org/web/20100920071132/http://ambac.com/contactus.asp |date=2010-09-20 }}." Ambac Financial Group. Retrieved on December 11, 2009.</ref><ref>{{Cite web|url=http://www.ambac.com/aboutus.asp#|title=Ambac: About US|last=|first=|date=|website=Ambac Corporate Website|access-date=}}</ref>
'''Ambac Financial Group, Inc.''', generally known as Ambac, is an American [[holding company]] that owns and operates specialty property and casualty insurance businesses. Ambac has two active operating divisions—Everspan and Cirrata. Everspan is a specialty program insurer that focuses on diverse classes of commercial and personal liability risks, and Cirrata is an insurance distribution platform consisting of a diverse portfolio of MGA/MGUs<ref>{{Cite web |title=Meet Ambac |url=https://www.ambac.com |url-status=live}}</ref>. Originally a provider of financial guarantee products such as [[bond insurance]] to clients in both the public and private sectors globally, Ambac placed its legacy financial guarantee businesses (Ambac Assurance Corp. and Ambac UK) in run-off in 2008. Ambac is listed on the [[New York Stock Exchange|NYSE]]<ref>{{Cite web|url=https://ir.ambac.com/news-releases/news-release-details/ambac-transfer-listing-nyse|title=Ambac to Transfer Listing to NYSE|website=Ambac Financial Group, Inc.|language=en|access-date=2020-02-06}}</ref> under the symbol {{NasdaqSymbol|AMBC}}. Ambac is regulated by the [[insurance commission]] of Wisconsin. It has its headquarters in [[Lower Manhattan]], [[New York City]].<ref>"[http://www.ambac.com/contactus.asp Contact Us] {{Webarchive|url=https://web.archive.org/web/20100920071132/http://ambac.com/contactus.asp |date=2010-09-20 }}." Ambac Financial Group. Retrieved on December 11, 2009.</ref><ref>{{Cite web|url=http://www.ambac.com/aboutus.asp#|title=Ambac: About US|last=|first=|date=|website=Ambac Corporate Website|access-date=}}</ref>

Ambac Financial Group's subsidiaries include Ambac Assurance Corporation and Everspan Financial Insurance Company.<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/874501/000087450119000023/a01-007ambcx20181231x10k.htm|title=SEC 2018 Form 10-K|last=|first=|date=February 28, 2019|website=|access-date=}}</ref>


==History and Credit ratings==
==History and Credit ratings==
Ambac, originally American Municipal Bond Assurance Corporation, was founded in 1971 in Milwaukee, Wisconsin as a subsidiary of [[Mortgage Guaranty Insurance Corporation|MGIC Investment Corp]].<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/874501/000119312507272160/dex9901.htm|title=SEC Form 8-k|last=Ambac Financial Group|date=December 27, 2007|website=|access-date=}}</ref> to insure the principal and interest of municipal bonds against default. In 1985, Citibank (the principal subsidiary of Citicorp) acquired majority control of Ambac Inc., parent company of AMBAC. Other investors, including Xerox Corp., Ambac management, and Stephens Inc., an investment banking firm, held the remaining equity. In 1989, Citibank gained sole ownership of the municipal bond insurer, purchasing the remaining shares it had not already secured from its former partners. Citibank, trying to exit the business initiated the IPO of Ambac in 1990 and sold all its remaining shares in the Company in February 1992.<ref name=":0">{{Cite web|url=http://www.fundinguniverse.com/company-histories/ambac-financial-group-inc-history/|title=International Directory of Company Histories, Vol. 65. St. James Press, 2004.|last=|first=|date=2004|website=|access-date=}}</ref> In 1997, the company changed its name to reflect its expansion into new areas of business. Ambac Inc. was renamed Ambac Financial Group, Inc. The municipal insurance subsidiary was renamed Ambac Assurance.
Ambac, originally American Municipal Bond Assurance Corporation, was founded in 1971 in Milwaukee, Wisconsin as a subsidiary of [[Mortgage Guaranty Insurance Corporation|MGIC Investment Corp]].<ref>{{Cite web|url=https://www.sec.gov/Archives/edgar/data/874501/000119312507272160/dex9901.htm|title=SEC Form 8-k|last=Ambac Financial Group|date=December 27, 2007|website=|access-date=}}</ref> to insure the principal and interest of municipal bonds against default. In 1985, Citibank (the principal subsidiary of Citicorp) acquired majority control of Ambac Inc., parent company of AMBAC. Other investors, including Xerox Corp., Ambac management, and Stephens Inc., an investment banking firm, held the remaining equity. In 1989, Citibank gained sole ownership of the municipal bond insurer, purchasing the remaining shares it had not already secured from its former partners. Citibank, trying to exit the business initiated the IPO of Ambac in 1990 and sold all its remaining shares in the Company in February 1992.<ref name=":0">{{Cite web|url=http://www.fundinguniverse.com/company-histories/ambac-financial-group-inc-history/|title=International Directory of Company Histories, Vol. 65. St. James Press, 2004.|last=|first=|date=2004|website=|access-date=}}</ref> In 1997, the company changed its name to reflect its expansion into new areas of business. Ambac Inc. was renamed Ambac Financial Group, Inc. The municipal insurance subsidiary was renamed Ambac Assurance.


Ambac and other [[bond guarantor]]s such as [[MBIA]] were hit hard by the [[2007 subprime mortgage financial crisis]] and on January 18, 2008, its [[Fitch Ratings|Fitch]] [[Bond credit rating|credit rating]] was lowered from AAA (the highest) to AA when its plans to raise two billion dollars in new capital failed.<ref>[https://www.bloomberg.com/apps/news?pid=20601087&sid=asLtTQyLRQQs&refer=home "Ambac's Insurance Unit Cut to AA From AAA by Fitch Ratings"] article by Christine Richard Jan. 19 ([[Bloomberg L.P|Bloomberg]])</ref> [[Moody's]] and [[Standard & Poor's|S&P]], however, chose to affirm Ambac's AAA with their agencies after it succeeded in raising $1.5 billion in new capital in March 2008.<ref>[http://www.marketwatch.com/news/story/moodys-sp-confirm-ambacs-aaa/story.aspx?guid=%7B508E2E56-59E2-45F1-85CD-DB189396B438%7D "Moody's, S&P confirm Ambac's AAA ratings"] article by Alistair Barr March 12, 2008 ([[MarketWatch]])</ref> In early 2008, the spectre of the major bond guarantors failing to be able to pay off insurance claims on a trillion dollars of securities backed by sub-prime mortgages and other [[securitization|securitized]] debt led to attempts to shore them up with infusions of capital.<ref>[https://www.nytimes.com/2008/01/24/business/24bonds.html "Next on the Worry List: Shaky Insurers of Bonds"] ''[[The New York Times]]'' January 24, 2008.</ref> On June 19, 2008 Moody's downgraded Ambac's credit rating three notches to Aa3.<ref>{{cite web
Ambac and other [[bond guarantor]]s such as [[MBIA]] were hit hard by the [[2007 subprime mortgage financial crisis]].<ref>[http://www.marketwatch.com/news/story/moodys-sp-confirm-ambacs-aaa/story.aspx?guid=%7B508E2E56-59E2-45F1-85CD-DB189396B438%7D "Moody's, S&P confirm Ambac's AAA ratings"] article by Alistair Barr March 12, 2008 ([[MarketWatch]])</ref> Ambac's credit ratings declined during 2008–2010, and on November 8, 2010, Ambac filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy protection.<ref>{{cite web|title=Ambac Chapter 11 Voluntary Petition|url=https://www.pacermonitor.com/view/DUBXR6I/Ambac_Financial_Group,_Inc.__nysbke-10-15973__0001.0.pdf|website=PacerMonitor|accessdate=16 May 2016}}</ref><ref>{{cite web
|url=http://www.foxbusiness.com/story/markets/industries/finance/stocks-focus-friday/-1081423944
|author =MarketWatch
|author-link =MarketWatch
|title=Stocks In Focus For Friday
|publisher=[[Fox Business]]
}}</ref>

Ambac's ratings continued to decline during 2008–2010. Moody's Investors Service lowered the rating of the senior unsecured debt of Ambac Financial Group Inc. (Ambac Financial) to C from Ca and placed the Caa2 insurance financial strength ratings (IFSR) of Ambac Assurance Corporation (AAC) on review for possible upgrade on 3/26/2010.<ref>{{Cite web |url=http://www.ambac.com/pdfs/RA/2010/March/Moody%27s%20downgrades%20Ambac%20debt%20to%20C%20and%20reviews%20Caa2%20rating%20for%20upgrade%20%2803-26-10%29.pdf |title=Archived copy |access-date=2010-04-08 |archive-url=https://web.archive.org/web/20101206104325/http://www.ambac.com/pdfs/RA/2010/March/Moody's%20downgrades%20Ambac%20debt%20to%20C%20and%20reviews%20Caa2%20rating%20for%20upgrade%20(03-26-10).pdf |archive-date=2010-12-06 |url-status = dead}}</ref> On March 25, 2010, Standard & Poor's Ratings Services revised its counterparty credit, financial strength and financial enhancement ratings on Ambac
Assurance Corp. (Ambac) to 'R' from 'CC'.<ref>{{Cite web |url=http://www.ambac.com/pdfs/RA/2010/March/Ambac%20Assurance%20Corp.%20Ratings%20Revised%20to%20%27R%27%20Following%20Regulatory%20Directive%20%2803-25-2010%29.pdf |title=Archived copy |access-date=2010-04-08 |archive-url=https://web.archive.org/web/20101206100323/http://www.ambac.com/pdfs/RA/2010/March/Ambac%20Assurance%20Corp.%20Ratings%20Revised%20to%20'R'%20Following%20Regulatory%20Directive%20(03-25-2010).pdf |archive-date=2010-12-06 |url-status = dead}}</ref> An 'R' rating is a non-investment grade rating.<ref>[[Standard & Poor's#Long-term credit ratings]]</ref> On June 8, 2010 Ambac announced that it would likely seek a pre-packaged bankruptcy as it was unable to pay dividends from its bond insurance unit to the holding company. Since that time Ambac has dropped appreciably in share price to approximately 0.50 per share as of the end of August 2010.<ref>{{Cite web |url=http://www.marksmarketanalysis.com/2010/06/abc-ambac-likely-to-file-bankruptcy.html |title=Mark's Market Analysis |access-date=2010-08-26 |archive-url=https://archive.today/20110714040153/http://www.marksmarketanalysis.com/2010/06/abc-ambac-likely-to-file-bankruptcy.html |archive-date=2011-07-14 |url-status = dead}}</ref>

Ambac missed an interest payment on its debt on November 1, 2010<ref>{{cite web
|url=http://www.marketwatch.com/story/ambac-misses-interest-payment-may-file-bankruptcy-2010-11-01
|author1=Spence, John |author2=Barr, Alistair |title=Ambac plunges on bankruptcy warning
|publisher=[[MarketWatch]]
|date=November 1, 2010
|accessdate=November 2, 2010
|archiveurl= https://web.archive.org/web/20101102225312/http://www.marketwatch.com/story/ambac-misses-interest-payment-may-file-bankruptcy-2010-11-01| archivedate= 2 November 2010 <!--DASHBot-->|url-status = live}}</ref> and filed for [[Chapter 11, Title 11, United States Code|Chapter 11]] bankruptcy protection on November 8, 2010.<ref>{{cite web|title=Ambac Chapter 11 Voluntary Petition|url=https://www.pacermonitor.com/view/DUBXR6I/Ambac_Financial_Group,_Inc.__nysbke-10-15973__0001.0.pdf|website=PacerMonitor|accessdate=16 May 2016}}</ref><ref>{{cite web
|url=https://www.wsj.com/articles/SB10001424052748703514904575602911478916800?mod=googlenews_wsj
|url=https://www.wsj.com/articles/SB10001424052748703514904575602911478916800?mod=googlenews_wsj
|author1=Morath, Eric |author2=Holm, Erik |title=Ambac Files for Bankruptcy
|author1=Morath, Eric |author2=Holm, Erik |title=Ambac Files for Bankruptcy
Line 48: Line 29:
|date=November 8, 2010
|date=November 8, 2010
|accessdate=November 8, 2010
|accessdate=November 8, 2010
|archiveurl= https://web.archive.org/web/20101112014240/http://online.wsj.com/article/SB10001424052748703514904575602911478916800.html?mod=googlenews_wsj| archivedate= 12 November 2010 <!--DASHBot-->|url-status = live}}</ref> Ambac exited Chapter 11 on May 1, 2013, issuing 45 million new common shares and approximately 5 million new warrants to holders of allowed claims.
|archiveurl= https://web.archive.org/web/20101112014240/http://online.wsj.com/article/SB10001424052748703514904575602911478916800.html?mod=googlenews_wsj| archivedate= 12 November 2010 <!--DASHBot-->|url-status = live}}</ref> Ambac exited Chapter 11 on May 1, 2013.


After serving as interim President and CEO, and then Executive Chairman in 2015, the Board formally appointed Tavakoli to the position of President and CEO in January 2016. Tavakoli helped lead a turnaround during his tenure that included "substantial progress" in areas such as "risk and loss analytics, operational efficiency, asset management, shareholder communication, and loss management, including our major loss recovery cases."<ref>{{cite press release
After serving as interim President and CEO, and then Executive Chairman in 2015, the Board formally appointed Nader Tavakoli to the position of President and CEO in January 2016. Tavakoli helped lead a turnaround during his tenure that included "substantial progress" in areas such as "risk and loss analytics, operational efficiency, asset management, shareholder communication, and loss management, including our major loss recovery cases."<ref>{{cite press release
|url= https://globenewswire.com/news-release/2016/01/04/799105/0/en/Ambac-Announces-Leadership-Changes.html
|url= https://globenewswire.com/news-release/2016/01/04/799105/0/en/Ambac-Announces-Leadership-Changes.html
|title=Ambac Announces Leadership Changes
|title=Ambac Announces Leadership Changes
Line 66: Line 47:
}}</ref>
}}</ref>


With the leadership of Mr. LeBlanc, on February 12, 2018 Ambac Assurance's Segregated Account exited rehabilitation through a holistic restructuring transaction and is now paying all claims in full in cash.<ref>{{Cite news|url=https://www.wsj.com/articles/ambac-approved-to-exit-insurance-rehabilitation-1516657091|title=Ambac Approved to Exit Insurance Rehabilitation|last=Scurria|first=Andrew|date=2018-01-22|work=Wall Street Journal|access-date=2019-03-10|language=en-US|issn=0099-9660}}</ref><ref>{{Cite web|url=http://ir.ambac.com/news-releases/news-release-details/ambac-assurances-segregated-account-rehabilitation-completed|title=Ambac Assurance's Segregated Account Rehabilitation Completed|website=Ambac Financial Group, Inc.|language=en|access-date=2019-03-10}}</ref>
Under the leadership of Mr. LeBlanc, on February 12, 2018, Ambac Assurance's Segregated Account exited rehabilitation through a holistic restructuring transaction and began paying all claims in full in cash.<ref>{{Cite news|url=https://www.wsj.com/articles/ambac-approved-to-exit-insurance-rehabilitation-1516657091|title=Ambac Approved to Exit Insurance Rehabilitation|last=Scurria|first=Andrew|date=2018-01-22|work=Wall Street Journal|access-date=2019-03-10|language=en-US|issn=0099-9660}}</ref><ref>{{Cite web|url=http://ir.ambac.com/news-releases/news-release-details/ambac-assurances-segregated-account-rehabilitation-completed|title=Ambac Assurance's Segregated Account Rehabilitation Completed|website=Ambac Financial Group, Inc.|language=en|access-date=2019-03-10}}</ref>

⚫
In May 2020, Ambac Financial Group, Inc. confirmed that Ambac Assurance has lodged a lawsuit for the District of Puerto Rico in the United States District Court against the Puerto Rico Financial Oversight & Management Board.<ref>{{Cite web|last=|first=|date=26 May 2020|title=Ambac Files Complaint Against the Financial Oversight & Management Board for Puerto Rico, Alleging PROMESA Violates U.S. Constitution's Uniform Bankruptcy Law Requirement|url=https://www.businesswire.com/news/home/20200526005879/en/Ambac-Files-Complaint-Financial-Oversight-Management-Board|url-status=live|archive-url=https://web.archive.org/web/20200625103601/https://www.businesswire.com/news/home/20200526005879/en/Ambac-Files-Complaint-Financial-Oversight-Management-Board |archive-date=2020-06-25 |access-date=25 June 2020|website=businesswire}}</ref>

In October 2022, Bank of America agreed to pay $1.84 billion to resolve claims by Ambac that mortgage-backed securities it insured before the financial crisis were backed by poorly underwritten loans. <ref>{{Cite news |last=Eisen |first=Ben |date=October 7, 2022 |title=Bank of America to Pay $1.84 Billion to Settle Last Major Mortgage-Crisis Suit |url=https://www.wsj.com/articles/ambac-settles-with-bank-of-america-for-1-84-billion-11665145905 |url-status=live |work=The Wall Street Journal}}</ref>


== Property and Casualty Insurance ==
⚫
In May 2020, Ambac Financial Group, Inc. has confirmed that Ambac Assurance has lodged a lawsuit for the District of Puerto Rico in the United States District Court against the Puerto Rico Financial Oversight & Management Board.<ref>{{Cite web|last=|first=|date=26 May 2020|title=Ambac Files Complaint Against the Financial Oversight & Management Board for Puerto Rico, Alleging PROMESA Violates U.S. Constitution's Uniform Bankruptcy Law Requirement|url=https://www.businesswire.com/news/home/20200526005879/en/Ambac-Files-Complaint-Financial-Oversight-Management-Board|url-status=live|archive-url=https://web.archive.org/web/20200625103601/https://www.businesswire.com/news/home/20200526005879/en/Ambac-Files-Complaint-Financial-Oversight-Management-Board |archive-date=2020-06-25 |access-date=25 June 2020|website=businesswire}}</ref>
In 2020, Ambac announced its strategy for transforming the company into a specialty property and casualty insurance platform including a program insurance carrier and an insurance distribution division consisting of managing general agents (MGAs), managing general underwriters (MGUs), and brokers<ref>{{Cite web |title=Ambac Annual Report |url=https://s202.q4cdn.com/597253230/files/doc_financials/2020/ar/2020-Ambac-Annual-Report-FINAL.pdf}}</ref>. In December 2020 it launched that strategy with the purchase of 80% of Xchange Benefits, a managing general underwriter.<ref>{{Cite web|title=Ambac To Acquire Property & Casualty Managing General Underwriter Xchange; Provides Update on Strategy|url=https://ambac.com/news/news-details/2020/Ambac-To-Acquire-Property--Casualty-Managing-General-Underwriter-Xchange-Provides-Update-on-Strategy/default.aspx|access-date=2021-05-04|website=ambac.com|language=en-US}}</ref> In February 2021, Ambac launched a specialty program insurance carrier, Everspan Group, which included Everspan Indemnity Company, an excess and surplus lines carrier, and Everspan Insurance Company, an admitted carrier.<ref>{{Cite web|title=Ambac Launches Specialty Program Insurance Business Everspan Group Assigned AM Best Financial Strength Rating of 'A-' (Excellent)|url=https://ambac.com/news/news-details/2021/Ambac-Launches-Specialty-Program-Insurance-Business-Everspan-Group-Assigned-AM-Best-Financial-Strength-Rating-of-A--Excellent/default.aspx|access-date=2021-05-04|website=ambac.com|language=en-US}}</ref> Everspan was assigned a Financial Strength Rating of A- ("Excellent) by AM Best.<ref>{{Cite web |title=AM Best Assigns Credit Ratings to Everspan Indemnity Insurance Company and Everspan Insurance Company |url=https://news.ambest.com/pr/PressContent.aspx?altsrc=2&refnum=30374 |url-status=live}}</ref>


In December 2020 Ambac launched its new business strategy with the purchase of 80% of Xchange, a managing general underwriter.<ref>{{Cite web|title=Ambac To Acquire Property & Casualty Managing General Underwriter Xchange; Provides Update on Strategy|url=https://ambac.com/news/news-details/2020/Ambac-To-Acquire-Property--Casualty-Managing-General-Underwriter-Xchange-Provides-Update-on-Strategy/default.aspx|access-date=2021-05-04|website=ambac.com|language=en-US}}</ref> In February 2021, Ambac launched a specialty program insurance business, Everspan Group, which includes Everspan Indemnity Company, an excess and surplus lines carrier and Everspan Insurance Company, an admitted carrier.<ref>{{Cite web|title=Ambac Launches Specialty Program Insurance Business Everspan Group Assigned AM Best Financial Strength Rating of 'A-' (Excellent)|url=https://ambac.com/news/news-details/2021/Ambac-Launches-Specialty-Program-Insurance-Business-Everspan-Group-Assigned-AM-Best-Financial-Strength-Rating-of-A--Excellent/default.aspx|access-date=2021-05-04|website=ambac.com|language=en-US}}</ref>
Ambac acquired All Trans Risk Solutions, a managing general agency, and Capacity Marine Corporation, a wholesale broker, in November 2022<ref>{{Cite web |title=Ambac Acquires Specialty Insurance MGU All Trans Risk Solutions, LLC And Wholesale Broker Capacity Marine Corporation |url=https://ambac.com/newsroom/news/news-details/2022/Ambac-Acquires-Specialty-Insurance-MGU-All-Trans-Risk-Solutions-LLC-and-Wholesale-Broker-Capacity-Marine-Corporation/default.aspx |url-status=live}}</ref>. In August 2023, it acquired Riverton Insurance Agency Corp<ref>{{Cite web |title=Ambac Acquires Riverton Insurance Agency Corp. |url=https://ambac.com/newsroom/news/news-details/2023/Ambac-Acquires-Riverton-Insurance-Agency-Corp/default.aspx |url-status=live}}</ref>. Those businesses, along with Xchange Benefits, comprise the insurance distribution division, Cirrata.<ref>{{Cite web |title=Our Businesses |url=https://ambac.com/our-businesses/default.aspx |url-status=live}}</ref>


==See also==
==See also==

Revision as of 15:49, 15 May 2024

Ambac Financial Group, Inc.
Company typePublic
IndustryFinancial services
FoundedNew York City, U.S. (1971)
HeadquartersNew York City, U.S.
RevenueIncrease US$3.91 Billion (FY 2009)[1]
Increase US$725 Million (FY 2009)[1]
Decrease US$-14.6 Million (FY 2009)[1]
Total assetsIncrease US$18.9 Billion (FY 2009)[2]
Total equityIncrease US$-2.29 Billion (FY 2009)[2]
Number of employees
113
SubsidiariesAmbac Assurance Corporation
Everspan Financial Insurance Company
Websiteambac.com

Ambac Financial Group, Inc., generally known as Ambac, is an American holding company that owns and operates specialty property and casualty insurance businesses. Ambac has two active operating divisions—Everspan and Cirrata. Everspan is a specialty program insurer that focuses on diverse classes of commercial and personal liability risks, and Cirrata is an insurance distribution platform consisting of a diverse portfolio of MGA/MGUs[3]. Originally a provider of financial guarantee products such as bond insurance to clients in both the public and private sectors globally, Ambac placed its legacy financial guarantee businesses (Ambac Assurance Corp. and Ambac UK) in run-off in 2008. Ambac is listed on the NYSE[4] under the symbol AMBC. Ambac is regulated by the insurance commission of Wisconsin. It has its headquarters in Lower Manhattan, New York City.[5][6]

History and Credit ratings

Ambac, originally American Municipal Bond Assurance Corporation, was founded in 1971 in Milwaukee, Wisconsin as a subsidiary of MGIC Investment Corp.[7] to insure the principal and interest of municipal bonds against default. In 1985, Citibank (the principal subsidiary of Citicorp) acquired majority control of Ambac Inc., parent company of AMBAC. Other investors, including Xerox Corp., Ambac management, and Stephens Inc., an investment banking firm, held the remaining equity. In 1989, Citibank gained sole ownership of the municipal bond insurer, purchasing the remaining shares it had not already secured from its former partners. Citibank, trying to exit the business initiated the IPO of Ambac in 1990 and sold all its remaining shares in the Company in February 1992.[8] In 1997, the company changed its name to reflect its expansion into new areas of business. Ambac Inc. was renamed Ambac Financial Group, Inc. The municipal insurance subsidiary was renamed Ambac Assurance.

Ambac and other bond guarantors such as MBIA were hit hard by the 2007 subprime mortgage financial crisis.[9] Ambac's credit ratings declined during 2008–2010, and on November 8, 2010, Ambac filed for Chapter 11 bankruptcy protection.[10][11] Ambac exited Chapter 11 on May 1, 2013.

After serving as interim President and CEO, and then Executive Chairman in 2015, the Board formally appointed Nader Tavakoli to the position of President and CEO in January 2016. Tavakoli helped lead a turnaround during his tenure that included "substantial progress" in areas such as "risk and loss analytics, operational efficiency, asset management, shareholder communication, and loss management, including our major loss recovery cases."[12]

Tavakoli was succeeded by current CEO Claude LeBlanc in 2017.[13]

Under the leadership of Mr. LeBlanc, on February 12, 2018, Ambac Assurance's Segregated Account exited rehabilitation through a holistic restructuring transaction and began paying all claims in full in cash.[14][15]

In May 2020, Ambac Financial Group, Inc. confirmed that Ambac Assurance has lodged a lawsuit for the District of Puerto Rico in the United States District Court against the Puerto Rico Financial Oversight & Management Board.[16]

In October 2022, Bank of America agreed to pay $1.84 billion to resolve claims by Ambac that mortgage-backed securities it insured before the financial crisis were backed by poorly underwritten loans. [17]

Property and Casualty Insurance

In 2020, Ambac announced its strategy for transforming the company into a specialty property and casualty insurance platform including a program insurance carrier and an insurance distribution division consisting of managing general agents (MGAs), managing general underwriters (MGUs), and brokers[18]. In December 2020 it launched that strategy with the purchase of 80% of Xchange Benefits, a managing general underwriter.[19] In February 2021, Ambac launched a specialty program insurance carrier, Everspan Group, which included Everspan Indemnity Company, an excess and surplus lines carrier, and Everspan Insurance Company, an admitted carrier.[20] Everspan was assigned a Financial Strength Rating of A- ("Excellent) by AM Best.[21]

Ambac acquired All Trans Risk Solutions, a managing general agency, and Capacity Marine Corporation, a wholesale broker, in November 2022[22]. In August 2023, it acquired Riverton Insurance Agency Corp[23]. Those businesses, along with Xchange Benefits, comprise the insurance distribution division, Cirrata.[24]

See also

References

  1. ^ a b c Ambac Financial Group (ABK) annual SEC income statement filing via Wikinvest
  2. ^ a b Ambac Financial Group (ABK) annual SEC balance sheet filing via Wikinvest
  3. ^ "Meet Ambac".{{cite web}}: CS1 maint: url-status (link)
  4. ^ "Ambac to Transfer Listing to NYSE". Ambac Financial Group, Inc. Retrieved 2020-02-06.
  5. ^ "Contact Us Archived 2010-09-20 at the Wayback Machine." Ambac Financial Group. Retrieved on December 11, 2009.
  6. ^ "Ambac: About US". Ambac Corporate Website.
  7. ^ Ambac Financial Group (December 27, 2007). "SEC Form 8-k".
  8. ^ "International Directory of Company Histories, Vol. 65. St. James Press, 2004". 2004.
  9. ^ "Moody's, S&P confirm Ambac's AAA ratings" article by Alistair Barr March 12, 2008 (MarketWatch)
  10. ^ "Ambac Chapter 11 Voluntary Petition" (PDF). PacerMonitor. Retrieved 16 May 2016.
  11. ^ Morath, Eric; Holm, Erik (November 8, 2010). "Ambac Files for Bankruptcy". The Wall Street Journal. Archived from the original on 12 November 2010. Retrieved November 8, 2010.
  12. ^ "Ambac Announces Leadership Changes" (Press release). Globe Newswire. January 4, 2016. Retrieved May 31, 2017.
  13. ^ "Ambac Appoints Claude LeBlanc as President and Chief Executive Officer" (Press release). Globe Newswire. December 12, 2016. Retrieved May 31, 2017.
  14. ^ Scurria, Andrew (2018-01-22). "Ambac Approved to Exit Insurance Rehabilitation". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-03-10.
  15. ^ "Ambac Assurance's Segregated Account Rehabilitation Completed". Ambac Financial Group, Inc. Retrieved 2019-03-10.
  16. ^ "Ambac Files Complaint Against the Financial Oversight & Management Board for Puerto Rico, Alleging PROMESA Violates U.S. Constitution's Uniform Bankruptcy Law Requirement". businesswire. 26 May 2020. Archived from the original on 2020-06-25. Retrieved 25 June 2020.
  17. ^ Eisen, Ben (October 7, 2022). "Bank of America to Pay $1.84 Billion to Settle Last Major Mortgage-Crisis Suit". The Wall Street Journal.{{cite news}}: CS1 maint: url-status (link)
  18. ^ "Ambac Annual Report" (PDF).
  19. ^ "Ambac To Acquire Property & Casualty Managing General Underwriter Xchange; Provides Update on Strategy". ambac.com. Retrieved 2021-05-04.
  20. ^ "Ambac Launches Specialty Program Insurance Business Everspan Group Assigned AM Best Financial Strength Rating of 'A-' (Excellent)". ambac.com. Retrieved 2021-05-04.
  21. ^ "AM Best Assigns Credit Ratings to Everspan Indemnity Insurance Company and Everspan Insurance Company".{{cite web}}: CS1 maint: url-status (link)
  22. ^ "Ambac Acquires Specialty Insurance MGU All Trans Risk Solutions, LLC And Wholesale Broker Capacity Marine Corporation".{{cite web}}: CS1 maint: url-status (link)
  23. ^ "Ambac Acquires Riverton Insurance Agency Corp".{{cite web}}: CS1 maint: url-status (link)
  24. ^ "Our Businesses".{{cite web}}: CS1 maint: url-status (link)

External links

  • Official website
  • Business data for Ambac Financial Group, Inc.:
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