Ambac Financial Group, Inc. (NYSE:AMBC) Q3 2022 Earnings Conference Call November 9, 2022 8:30 AM ET

Company Participants

Charles Sebaski - Head, Investor Relations

Claude LeBlanc - President and Chief Executive Officer

David Trick - Chief Financial Officer

Conference Call Participants

Dennis Chua - Repertoire Partners

Richard Burns - Private Investor

Giuliano Bologna - Compass Point

Geoffrey Dunn - Dowling & Partners

Operator

Greetings and welcome to the Ambac Financial Group, Inc. Third Quarter 2022 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Charles Sebaski, Head of Investor Relations. Thank you.

Charles Sebaski

Thank you. Good morning, and welcome to Ambac’s third quarter 2022 call to discuss financial results. Speaking today will be Claude LeBlanc, President and CEO; and David Trick, Chief Financial Officer. They will discuss the financial results of our business and the current market environment. And after prepared remarks, we will take your questions.

Our call today includes forward-looking statements. The company cautions investors that any forward-looking statements involve risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under the forward-looking statements in our earnings press release and our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements.

Also, in our prepared remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations to those non-GAAP measures are included in our recent earnings press release, operating supplement or other materials available on the Investor Relations section of our website, ambac.com.

I would now like to turn the call over to Mr. Claude LeBlanc.

Claude LeBlanc

Thank you, Chuck and welcome to everyone joining today’s call. This quarter represents a pivotal moment for Ambac, marked by the $1.84 billion settlement of our long-running RMBS litigations against Bank of America and the near-term resolution of our remaining Puerto Rico exposure, 2 of the largest outstanding obstacles impacting the pursuit of near- and long-term options to maximize value from our Legacy Financial Guarantee business.

I’m also very excited with the progress we continue to make in our core Specialty P&C business, which delivered material growth again this quarter. For the quarter ending September 30, 2022, Ambac reported a net income of $340 million or $7.41 per diluted share. Book value at quarter end was $1 billion, and adjusted book value was $1.04 billion. David will discuss our financial results in more detail shortly.