AMBAC FINANCIAL GROUP INC FILES (8-K) Disclosing Regulation FD Disclosure

Item 7.01. Regulation FD Disclosure.
On November 23, 2021, the trial court in the litigation captioned Ambac
Assurance Corporation and The Segregated Account of Ambac Assurance Corporation
v. Countrywide Home Loans, Inc., Countrywide Securities Corp., Countrywide
Financial Corp. (n.k.a. Bank of America Home Loans) and Bank of America Corp.
(Supreme Court of the State of New York, County of New York (Case No.
651612/2010)) set September 7, 2022 as the starting date of the trial in the
case.

Forward-Looking Statements
In this report, statements that may constitute "forward-looking statements"
within the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as "estimate," "project," "plan,"
"believe," "anticipate," "intend," "planned," "potential" and similar
expressions, or future or conditional verbs such as "will," "should," "would,"
"could," and "may," or the negative of those expressions or verbs, identify
forward-looking statements. We caution readers that these statements are not
guarantees of future performance. Forward-looking statements are not historical
facts but instead represent only our beliefs regarding future events, which may
by their nature be inherently uncertain and some of which may be outside our
control. These statements may relate to plans and objectives with respect to the
future, among other things which may change. We are alerting you to the
possibility that our actual results may differ, possibly materially, from the
expected objectives or anticipated results that may be suggested, expressed or
implied by these forward-looking statements. Important factors that could cause
our results to differ, possibly materially, from those indicated in the
forward-looking statements include, among others, those discussed under "Risk
Factors" in our most recent SEC filed quarterly or annual report.
Any or all of management's forward-looking statements here or in other
publications may turn out to be incorrect and are based on management's current
belief or opinions. AFG's and its subsidiaries' ("Ambac") actual results may
vary materially, and there are no guarantees about the performance of Ambac's
securities. Among events, risks, uncertainties or factors that could cause
actual results to differ materially are: (1) the highly speculative nature of
AFG's common stock and volatility in the price of AFG's common stock; (2)
Ambac's inability to realize the expected recoveries, including RMBS litigation
recoveries, included in its financial statements which would have a materially
adverse effect on Ambac Assurance Corporation's ("AAC") financial condition and
may lead to regulatory intervention; (3) failure to recover claims paid on
Puerto Rico exposures or realization of losses in amounts higher than expected;
(4) increases to loss and loss expense reserves; (5) inadequacy of reserves
established for losses and loss expenses and possibility that changes in loss
reserves may result in further volatility of earnings or financial results; (6)
uncertainty concerning the Company's ability to achieve value for holders of its
securities, whether from AAC and its subsidiaries or from transactions or
opportunities apart from AAC and its subsidiaries, including new business
initiatives relating to the specialty property and casualty program insurance
business, the managing general agency/underwriting business, or related
businesses; (7) potential of rehabilitation proceedings against AAC; (8)
increased fiscal stress experienced by issuers of public finance obligations or
an increased incidence of Chapter 9 filings or other restructuring proceedings
by public finance issuers, including an increased risk of loss on revenue bonds
of distressed public finance issuers due to judicial decisions adverse to
revenue bond holders; (9) our inability to mitigate or remediate losses, commute
or reduce insured exposures or achieve recoveries or investment objectives, or
the failure of any transaction intended to accomplish one or more of these
objectives to deliver anticipated results; (10) insufficiency or unavailability
of collateral to pay secured obligations; (11) credit risk throughout Ambac's
business, including but not limited to credit risk related to residential
mortgage-backed securities, student loan and other asset securitizations, public
finance obligations and exposures to reinsurers; (12) the impact of catastrophic
environmental or natural events, including catastrophic public health events
like the COVID-19 pandemic, on significant portions of our insured and
investment portfolios; (13) credit risks related to large single risks, risk
concentrations and correlated risks; (14) the risk that Ambac's risk management
policies and practices do not anticipate certain risks and/or the magnitude of
potential for loss; (15) risks associated with adverse selection as Ambac's
insured portfolio runs off; (16) Ambac's substantial indebtedness could
adversely affect its financial condition and operating flexibility; (17) Ambac
may not be able to obtain financing or raise capital on acceptable terms or at
all due to its substantial indebtedness and financial condition; (18) Ambac may
not be able to generate the significant amount of cash needed to service its
debt and financial

                                       2
--------------------------------------------------------------------------------

obligations, and may not be able to refinance its indebtedness; (19) restrictive
covenants in agreements and instruments may impair Ambac's ability to pursue or
achieve its business strategies; (20) adverse effects on operating results or
the Company's financial position resulting from measures taken to reduce risks
in its insured portfolio; (21) disagreements or disputes with Ambac's insurance
regulators; (22) default by one or more of Ambac's portfolio investments,
insured issuers or counterparties; (23) loss of control rights in transactions
for which we provide insurance due to a finding that Ambac has defaulted; (24)
adverse tax consequences or other costs resulting from the characterization of
the AAC's surplus notes or other obligations as equity; (25) risks attendant to
the change in composition of securities in the Ambac's investment portfolio;
(26) adverse impacts from changes in prevailing interest rates; (27) our results
of operation may be adversely affected by events or circumstances that result in
the impairment of our intangible assets and/or goodwill that was recorded in
connection with Ambac's acquisition of 80% of the membership interests of
Xchange; (28) risks associated with the expected discontinuance of the London
Inter-Bank Offered Rate; (29) factors that may negatively influence the amount
of installment premiums paid to the Ambac; (30) market risks impacting assets in
the Ambac's investment portfolio or the value of our assets posted as collateral
in respect of interest rate swap transactions; (31) risks relating to
determinations of amounts of impairments taken on investments; (32) the risk of
litigation and regulatory inquiries or investigations, and the risk of adverse
outcomes in connection therewith, which could have a material adverse effect on
Ambac's business, operations, financial position, profitability or cash flows;
(33) actions of stakeholders whose interests are not aligned with broader
interests of the Ambac's stockholders; (34) system security risks, data
protection breaches and cyber attacks; (35) changes in accounting principles or
practices that may impact Ambac's reported financial results; (36) regulatory
oversight of Ambac Assurance UK Limited ("Ambac UK") and applicable regulatory
restrictions may adversely affect our ability to realize value from Ambac UK or
the amount of value we ultimately realize; (37) operational risks, including
with respect to internal processes, risk and investment models, systems and
employees, and failures in services or products provided by third parties; (38)
Ambac's financial position that may prompt departures of key employees and may
impact the its ability to attract qualified executives and employees; (39)
fluctuations in foreign currency exchange rates could adversely impact the
insured portfolio in the event of loss reserves or claim payments denominated in
a currency other than US dollars and the value of non-US dollar denominated
securities in our investment portfolio; (40) disintermediation within the
insurance industry or greater competition that negatively impacts our managing
general agency/underwriting business; (41) changes in law or in the functioning
of the healthcare market that impair the business model of our accident and
health managing general underwriter; (42) greater competition for our specialty
property & casualty program insurance business; and (43) other risks and
uncertainties that have not been identified at this time.