Insurance holding company Ambac Financial Group, Inc. has reported organic revenue growth of 40% in its Insurance Distribution segment, as total revenue grew by 80% to $43 million for the quarter, compared to $24 million in Q3’24.
For the Insurance Distribution segment, the net loss to shareholders is reported at $5 million for the quarter, compared to a net loss of $7 million in Q3’24.
Meanwhile, in the segment, adjusted EBITDA for the quarter is up by 272% to $10 million for the quarter, compared to $2.4 million in Q3’24. Adjusted EBITDA to shareholders grew by 183% to $6 million for the quarter, compared to $2.1 million in Q3’24.
However, the firm reported a 5% dip in total revenues to $67 million for the third quarter of 2025, from continuing operations, compared to $70 million in Q3’24.
This decrease was mostly due to a managed reduction in earned premiums at Everspan, Ambac’s Specialty P&C Insurance unit, along with the impact of a $4.9 million realised gain on an FX hedge and a $7.5 million gain on the sale of CNIC in Q3’24.
The firm explained, “These items more than offset strong revenue growth in our Insurance Distribution segment, which experienced 40% organic revenue growth this quarter.”
For the quarter, Everspan’s gross and net premiums written of $97.1 million and $18 million were down 16% and 46%, respectively, from $115 million and $32.7 million in Q3’24. Net loss to Shareholders was $0.1 million
Ambac shareholders saw a net loss from continuing operations increase of $14 million to $32 million in Q3’25, compared to the $18 million last year.
These losses were driven by an increase of 9% in total expenses for Q3’25 reported at $99 million, compared to $91 million last year. This rise was primarily due to an increase in G&A expenses, intangible amortisation and interest expense, most of which related to the acquisition and growth of Beat, explained Ambac.
G&A expenses also included costs associated with leaving the financial guarantee business and the acquisition of ArmadaCare. These increases more than offset lower nominal losses, loss adjustment and acquisition expenses at Everspan.
Lastly, adjusted EBITDA from continuing operations to Ambac shareholders for Q3’25 was a loss of $3 million compared to a gain of $2 million last year, driven by lower adjusted EBITDA at Everspan, the FX hedge gain realised in Q3’24 and expenses incurred related to M&A and legacy litigation, which collectively more than offset the improved results in Insurance Distribution.
The firm completed the repurchase of 3.1 million shares during October at an average price of $8.48, representing 6.7% of shares outstanding and 6.5% of basic weighted shares outstanding as last reported
Claude LeBlanc, President and Chief Executive Officer, stated, “Having successfully completed the sale of our legacy financial guarantee business in late September, our sole focus is now on the growth and profitability of our specialty P&C businesses, including a seamless integration of recently acquired ArmadaCare. Bolstered by our 2024 acquisition of Beat, our insurance distribution business delivered strong reported and organic growth this quarter, reinforcing our strategic momentum and driving higher operating and earnings margins.
“Adverse loss experience in the quarter unfavourably affected Everspan’s results, validating the decision to exit a commercial auto program last year to protect the long-term performance of our book. We expect Everspan’s combined ratios will improve as the platform reaches scale between 2026 and 2027. We remain highly confident in Ambac’s strategic direction and future prospects, as demonstrated by our repurchase of over 3 million of our shares in October.”
He continued, “During the third quarter we were also excited to expand our partnership with Pivix–an MGA we believe holds significant growth potential–and, more recently, to announce the launch of 1889 Specialty, our latest de-novo MGA venture.”
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