NU Online News Service, May 18, 12:50 p.m. EDT
Ambac Financial Group, Inc. reported a 2010 first quarter net loss of more than $690 million--almost double the loss it experienced for the same period last year--and reiterated its expectation that it may seek bankruptcy.
The New York surety insurer's reported net loss amounted to $2.39 a share, compared to a net loss of $392 million or net loss of $1.36 a share for the 2009 first quarter.
Ambac said under new accounting standards adopted Jan. 1, it had to record a $495 million loss as the result of the consolidation of mortgage related insurance exposures.
Ambac said it placed the exposures into a segregated account on March 24 at the behest of the Office of the Commissioner of Insurance for Wisconsin for rehabilitation.
The carrier said the loss is considered non-recurring, and excluding the segregated account, the company's loss would have been $195 million, or 68 cents a share.
Net premiums earned were down 36 percent, or close to $72 million, to $125 million.
Net premiums earned during the period were negatively impacted by no new business written and the high level of refunding and terminations over the past two years, plus the consolidation of mortgage related insurance exposures, Ambac said.
The company said net investments grew 17 percent, or close to $17 million, to $118 million.
Ambac said it has "insufficient capital to finance its debt service and operating expense requirements beyond the second quarter of 2011 and may need to seek bankruptcy protection."
The company did not hold a conference call with financial analysts.
Ambac said its board will hold an annual stockholders meeting on July 14 at 1 p.m. in New York.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
