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Ambac Financial Group Inc. Q2 2008 Earnings Call TranscriptAug. 25, 2008 • 1 Comment
Tue, Aug. 12, 11:59 AM
- Q2 operating loss of $113.3M or $2.51 per share vs. a profitable Q2 one year ago. The loss comes as the company takes a charge for interest accrued on unpaid claims.
- Net premiums earned of $65M vs. $87.7M a year ago. Net investment income of $80.1M vs. $58.4M a year ago.
- The fund "strategic priorities" (acquisitions), Ambac (AMBC -2.9%) is considering the sale of $350M of junior surplus notes issued to the company by the Segregated Account when it emerged from bankruptcy.
- Previously: Ambac Financial EPS of -$4.61
Mon, Aug. 11, 5:39 PM
Sun, Aug. 10, 5:35 PM
Fri, Jul. 25, 10:00 AM
- The LTGO - limited tax general obligation - bond settlement is comprised of new LTGO notes equivalent to 34% of the LTGO allowed claim and a 20% share of notes remaining in a litigation reserve related to Detroit's pension bond litigation.
- Ambac (AMBC) expects to continue to pay claims of scheduled principal and interest on the bonds insured by Ambac Assurance.
- Source: Press Release
Mon, May. 12, 4:20 PM
Sun, May. 11, 5:35 PM
Tue, Apr. 22, 9:56 AM
- Ambac (AMBC +9.9%) has its tail in the air after the Wisconsin Commissioner of Insurance - clearly more comfortable with the loss outlook for the company - amends the confirmed Plan of Rehabilitation of the Segregate Account. In English, the initial cash payment for permitted policy claims will be boosted to 45% from 25%, effective July 20 (if approved by the Rehabilitation Court).
- Total catch-up payments of Deferred Amounts would be about $1.1B (on balances as of Dec. 31), and payments on Surplus Nots would be about $415M.
- Press release
Wed, Apr. 16, 9:23 AM
- "People effectively carry a branch in their pocket," says Bank of America (BAC) CEO Brian Moynihan on the earnings call (live now on Seeking Alpha), noting mobile banking customers grew 19% Y/Y to 15M and 10% of deposits now take place on mobile devices. Consumer banking costs fell 4% from last year, he notes. CFO Bruce Thompson: “We continue to reduce production staffing levels in the quarter consistent with the volumes.”
- Inquiring minds want to know more about the $2.4B boost to litigation reserves, and management is fairly tight-lipped, saying they're about addressing previously disclosed mortgage-related issues. Ambac (AMBC) shareholders looking for movement in their case against BofA may be disappointed as Thompson says the reserve increase isn't about a pending settlement with the monolines.
- Presentation slides
- Earlier BofA earnings coverage
- Just ahead of the open, shares -1.6%.
Wed, Apr. 9, 11:44 AM
- The agreement with Assured Guaranty (AGO +2.2%), Ambac (AMBC +1.2%), and National Public Finance (MBI +1.8%) is an important one as - in what would have been a precedent-setting move - Detroit had asked a court to treat its general-obligation debt as unsecured and allow a recovery of just a few cents on the dollar, while treating debt owed to pensions
- Instead, $287.5M of $388M of debt in question will be reinstated at par, and the remaining paper will be assigned to establishing an income stabilization fund for the city's "most vulnerable retirees."
- ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, HYMB, MLN, CMF, SHM, BABZ, BABS, XMPT, PRB, SUB, PZT, SMB, NYF, SHYD, CXA, PWZ, PVI, SMMU, INY, MUAF, MUAE, MUAD, VRD, MUAC, MUAG, MUAH, GMMB, RVNU
Tue, Apr. 8, 9:46 PM
- An agreement between Detroit and bond insurers Assured Guaranty (AGO), Ambac (AMBC), and National Public Finance Guaranty (MBI) would be a critical step as the city winds its way through Chapter 9 bankruptcy. Detroit emergency manager Kevin Orr has deemed about $410M of previously sacrosanct general-obligation debt as unsecured, a decision bond insurers - who would be on the hook for millions if the paper sees just the 15% recovery Orr has proposed - are howling about.
- "Time is growing shorter," said Michigan Governor Rick Snyder in an interview today. "A lot of work is going on in the mediation process, with great urgency ... [the] best case" is for parties to reach a settlement. A deal, says the Journal, could be struck as early as tomorrow.
- Muni ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, HYMB, MLN, CMF, SHM, BABZ, BABS, XMPT, PRB, SUB, PZT, SMB, NYF, SHYD, CXA, PWZ, PVI, SMMU, INY, MUAF, MUAE, MUAD, VRD, MUAC, MUAG, MUAH, GMMB, RVNU
- Also watching with interest: Syncora Holdings (SYCRF).
Tue, Mar. 18, 8:51 AM
- Throwing a wrench into Detroit's plan to exit bankruptcy, bond insurer Financial Guaranty Insurance sues, saying the deal illegally discriminates against a major group of creditors - those who poured in $1.4B for worker pensions in 2005.
- Those investors purchased "certificates of participation," which was the first paper Detroit defaulted on ahead of its bankruptcy. The city calls the 2005 deal a "sham transaction" and its exit plan would give those investors one of the lowest recovery rates. Financial Guaranty says Detroit "seeks to turn a crooked eye to history."
- The suit is about more than a higher payout to those investors. It could lead to a fight to claw back that $1.4B from Detroit's pension system. Current and future retirees make up Detroit's largest and second-largest unsecured creditors.
- Watching: MBI, AGO, AMBC, SYCRF.
Tue, Mar. 4, 4:16 PM
- MBIA (MBI +11.3%) led the way, though management remains circumspect about when its National subsidiary might attain the credit rating necessary to begin writing insurance again - a major catalyst to the bulls on the stock.
- CEO Jay Brown on the earnings call (transcript): "All I can say is that we continue to have a positive and active dialogue with the agencies and that we're hopeful that they will rate National in the AA range in the near term ... The decision and the timing remains solely in their hands, and I am not in a position to offer any additional insight to offer at this time."
- Others: Ambac (AMBC +4.2%), Assured Guaranty (AGO +5.6%).
Tue, Mar. 4, 9:16 AM
- Calling Ambac Financial's (AMBC) Q4 results benign, BTIG's Mark Palmer nevertheless cashes in his chips on the name, downgrading to Hold after a 65% run higher following the company's exit from bankruptcy last spring.
- Higher in the minutes following last night's earnings report, shares are off 3.3% remarket
Mon, Mar. 3, 4:51 PM
- Net premiums earned of $84.5M falls 18.4% from a year ago (when still in bankruptcy). Net investment income of $68.1M falls 26.7%. Net change in fair value of credit derivatives of $110.5M gain vs. a loss of $22M a year ago. Operating earnings of $292M vs. $218.2M. Operating earnings per share of $6.34 vs. $0.72.
- CC tomorrow at 8 ET
- Press release, Q4 results
- Annual meeting set for May 22
- AMBC +2.9% AH
Mon, Mar. 3, 4:26 PM
Mon, Mar. 3, 12:10 AM
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