Ambac Reports Third Quarter 2025 Results
-
Total P&C premium production increased 32% for the quarter to
$343 million -
Insurance Distribution Segment
-
Total revenue grew to
$43 million for the quarter, an increase of 80% - Organic revenue growth equaled 40.0%
-
Net loss to Shareholders of
$(5) million for the quarter -
Adjusted EBITDA of
$10 million for the quarter, up 272% -
Adjusted EBITDA to Shareholders of
$6 million for the quarter, up 183%
-
Total revenue grew to
-
Specialty P&C Insurance ("Everspan")-
Gross and net premiums written of
$97 million and$18 million were down 16% and 46%, respectively -
Net loss to Shareholders was
$0.1 million
-
Gross and net premiums written of
-
AFG completed the repurchase of 3.1 million shares during October at an average price of
$8.48 (1). These repurchases represented 6.7% of shares outstanding and 6.5% of basic weighted shares outstanding as last reported
(1) Represents total cost including broker commissions divided by shares repurchased
LeBlanc 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."
|
|
||||||||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
(in thousands, except per share data)1 |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
||
|
Total revenues from continuing operations |
|
|
66,606 |
|
|
|
70,005 |
|
|
(5 |
)% |
|
|
184,319 |
|
|
|
170,593 |
|
|
8 |
% |
|
Total expenses from continuing operations |
|
|
98,685 |
|
|
|
90,762 |
|
|
(9 |
)% |
|
|
254,479 |
|
|
|
209,338 |
|
|
(22 |
)% |
|
Pretax income (loss) from continuing operations |
|
|
(32,079 |
) |
|
|
(20,757 |
) |
|
(55 |
)% |
|
|
(70,160 |
) |
|
|
(38,745 |
) |
|
(81 |
)% |
|
Provision (benefit) for income taxes from continuing operations |
|
|
(1,241 |
) |
|
|
(867 |
) |
|
NM |
|
|
|
(4,030 |
) |
|
|
(767 |
) |
|
NM |
|
|
Net income (loss) from continuing operations |
|
|
(30,838 |
) |
|
|
(19,890 |
) |
|
(55 |
)% |
|
|
(66,130 |
) |
|
|
(37,978 |
) |
|
(74 |
)% |
|
Net income (loss) from continuing operations attributable to |
|
|
(31,730 |
) |
|
|
(18,117 |
) |
|
(75 |
)% |
|
|
(68,422 |
) |
|
|
(37,119 |
) |
|
(84 |
)% |
|
Net income (loss) from discontinued operations |
|
|
(80,890 |
) |
|
|
(9,386 |
) |
|
NM |
|
|
|
(163,288 |
) |
|
|
28,936 |
|
|
NM |
|
|
Net income (loss) attributable to |
|
|
(112,620 |
) |
|
|
(27,503 |
) |
|
NM |
|
|
|
(231,710 |
) |
|
|
(8,183 |
) |
|
NM |
|
|
Net income (loss) attributable to stockholders per diluted share 3 |
|
$ |
(2.35 |
) |
|
$ |
(0.63 |
) |
|
NM |
|
|
$ |
(5.11 |
) |
|
$ |
(0.23 |
) |
|
NM |
|
|
Non-GAAP |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
EBITDA to shareholders 2 |
|
|
(20,075 |
) |
|
|
(10,465 |
) |
|
(92 |
)% |
|
|
(35,418 |
) |
|
|
(26,573 |
) |
|
(33 |
)% |
|
Adjusted EBITDA to shareholders2 |
|
|
(2,856 |
) |
|
|
1,905 |
|
|
NM |
|
|
|
(8,734 |
) |
|
|
1,678 |
|
|
NM |
|
|
Adjusted net income (loss) attributable to shareholders |
|
|
(9,957 |
) |
|
|
(1,654 |
) |
|
NM |
|
|
|
(26,546 |
) |
|
|
(2,929 |
) |
|
NM |
|
|
Per Share |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Adjusted net income (loss) to shareholders per diluted share 2 |
|
$ |
(0.21 |
) |
|
$ |
(0.03 |
) |
|
NM |
|
|
$ |
(0.56 |
) |
|
$ |
(0.06 |
) |
|
NM |
|
|
Adjusted EBITDA to shareholders per diluted share2 |
|
$ |
(0.06 |
) |
|
$ |
0.04 |
|
|
NM |
|
|
$ |
(0.09 |
) |
|
$ |
0.04 |
|
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Weighted-average diluted shares outstanding |
|
|
48,106 |
|
|
|
47,689 |
|
|
|
|
|
47,862 |
|
|
|
46,581 |
|
|
|
||
|
(1) |
|
Some financial data in this press release may not add up due to rounding |
|
(2) |
|
See Non-GAAP Financial Data section of this press release for further information |
|
(3) |
|
Per diluted share includes the impact of adjusting redeemable noncontrolling interests to current redemption value |
Third Quarter 2025 Summary*
Total revenue from continuing operations for the third quarter of 2025 was
Total expenses from continuing operations for the third quarter of 2025 were
Net loss from continuing operations to
Adjusted EBITDA from continuing operations to
* For definition of each non-GAAP measures referred to above, as well as reconciliation of such non-GAAP measures to their most directly comparable GAAP measures, see "Non-GAAP Financial Measures" below.
Earnings Call and Webcast
On
The webcast will be archived on
Additional information is included in an operating supplement and presentations at
Results of Operations by Segment
Insurance Distribution Segment
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
($ in thousands) |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
||||
|
Total revenues |
|
$ |
43,222 |
|
|
$ |
23,995 |
|
|
80 |
% |
|
$ |
117,261 |
|
|
$ |
55,166 |
|
|
113 |
% |
||
|
Pretax income (loss) |
|
$ |
(5,747 |
) |
|
$ |
(7,949 |
) |
|
28 |
% |
|
$ |
(18,159 |
) |
|
$ |
(2,851 |
) |
|
(537 |
)% |
||
|
Pretax income (loss) to shareholders |
|
$ |
(6,639 |
) |
|
$ |
(6,176 |
) |
|
(7 |
)% |
|
$ |
(20,451 |
) |
|
$ |
(1,994 |
) |
|
(926 |
)% |
||
|
EBITDA |
|
$ |
9,855 |
|
|
$ |
2,425 |
|
|
306 |
% |
|
$ |
26,640 |
|
|
$ |
9,825 |
|
|
171 |
% |
||
|
EBITDA to shareholders1 |
|
$ |
5,928 |
|
|
$ |
1,868 |
|
|
217 |
% |
|
$ |
15,508 |
|
|
$ |
7,918 |
|
|
96 |
% |
||
|
Adjusted EBITDA |
|
$ |
9,955 |
|
|
$ |
2,673 |
|
|
272 |
% |
|
$ |
26,647 |
|
|
$ |
10,067 |
|
|
165 |
% |
||
|
Adjusted EBITDA to shareholders1 |
|
$ |
5,988 |
|
|
$ |
2,116 |
|
|
183 |
% |
|
$ |
15,599 |
|
|
$ |
8,160 |
|
|
91 |
% |
||
|
Pretax income margin to shareholders2 |
|
|
(13.3 |
)% |
|
|
(33.1 |
)% |
|
598 bps |
|
|
(15.5 |
)% |
|
|
(5.2 |
)% |
|
(1981) bps |
||||
|
Adjusted EBITDA margin to shareholders1,3 |
|
|
13.9 |
% |
|
|
8.8 |
% |
|
580 bps |
|
|
13.3 |
% |
|
|
14.8 |
% |
|
(101) bps |
||||
|
Organic Growth |
|
|
40.0 |
% |
|
|
12.6 |
% |
|
|
|
|
26.1 |
% |
|
|
N/A |
|
|
|
||||
|
(1) |
|
After the impact of noncontrolling interests |
|
(2) |
|
Represents Pretax income divided by total revenues |
|
(3) |
|
See Non-GAAP Financial Data section of this press release for further information |
Specialty Property & Casualty Insurance Segment
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||
|
($ in thousands) |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
||||
|
Gross premium written |
|
$ |
97,185 |
|
|
$ |
115,154 |
|
|
(16 |
)% |
|
$ |
280,347 |
|
|
$ |
322,782 |
|
|
(13 |
)% |
||
|
Net premiums written |
|
$ |
17,777 |
|
|
$ |
32,754 |
|
|
(46 |
)% |
|
$ |
50,988 |
|
|
$ |
91,290 |
|
|
(44 |
)% |
||
|
Net premiums earned |
|
$ |
17,027 |
|
|
$ |
27,441 |
|
|
(38 |
)% |
|
$ |
48,908 |
|
|
$ |
80,074 |
|
|
(39 |
)% |
||
|
Total revenue |
|
$ |
22,774 |
|
|
$ |
40,132 |
|
|
(43 |
)% |
|
$ |
65,335 |
|
|
$ |
101,502 |
|
|
(36 |
)% |
||
|
Net income (loss) from continuing operations |
|
$ |
(53 |
) |
|
$ |
7,990 |
|
|
(101 |
)% |
|
$ |
1,799 |
|
|
$ |
8,632 |
|
|
(79 |
)% |
||
|
Adjusted EBITDA to shareholders |
|
$ |
49 |
|
|
$ |
1,591 |
|
|
(97 |
)% |
|
$ |
2,319 |
|
|
$ |
2,439 |
|
|
(5 |
)% |
||
|
Loss Ratio |
|
|
84.5 |
% |
|
|
74.4 |
% |
|
(1010) bps |
|
|
73.3 |
% |
|
|
78.4 |
% |
|
510 bps |
||||
|
Expense Ratio |
|
|
28.4 |
% |
|
|
26.1 |
% |
|
(230) bps |
|
|
34.1 |
% |
|
|
24.4 |
% |
|
(970) bps |
||||
|
Combined Ratio |
|
|
112.9 |
% |
|
|
100.5 |
% |
|
(1240) bps |
|
|
107.4 |
% |
|
|
102.8 |
% |
|
(460) bps |
||||
|
(1) |
|
See Non-GAAP Financial Data section of this press release for further information |
AFG Corporate (holding company only)
AFG on a standalone basis, excluding its ownership interests in its
Consolidated
Stockholders’ equity attributable to common shareholders at
Share Repurchase
Subsequent to
Calculation of Earnings Per Share
Diluted net income per share is computed by dividing net income attributable to shareholders, including adjustments to the redemption value of redeemable noncontrolling interests, by the basic weighted-average shares outstanding plus all potentially dilutive common shares outstanding during the period. The following table provides a reconciliation of net income attributable to shareholders to the numerator in the diluted earnings per share calculation, together with the resulting earnings per share amounts:
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
(in thousands, except per share data) |
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Net income (loss) from continuing operations attributable to shareholders |
$ |
(31,730 |
) |
|
$ |
(18,117 |
) |
|
$ |
(68,422 |
) |
|
$ |
(37,119 |
) |
|
Adjustment for Redeemable NCI |
|
(569 |
) |
|
|
(2,402 |
) |
|
$ |
(12,993 |
) |
|
$ |
(2,533 |
) |
|
Numerator of diluted EPS |
$ |
(32,299 |
) |
|
$ |
(20,519 |
) |
|
$ |
(81,415 |
) |
|
$ |
(39,652 |
) |
|
Per Share — Diluted |
$ |
(0.67 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.85 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) attributable to |
$ |
(112,620 |
) |
|
$ |
(27,503 |
) |
|
$ |
(231,710 |
) |
|
$ |
(8,183 |
) |
|
Adjustment for Redeemable NCI |
|
(569 |
) |
|
|
(2,402 |
) |
|
|
(12,993 |
) |
|
|
(2,533 |
) |
|
Numerator of diluted EPS |
$ |
(113,189 |
) |
|
$ |
(29,905 |
) |
|
$ |
(244,703 |
) |
|
$ |
(10,716 |
) |
|
Per Share — Diluted |
$ |
(2.35 |
) |
|
$ |
(0.63 |
) |
|
$ |
(5.11 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
WASO-Diluted |
|
48,106 |
|
|
|
47,689 |
|
|
|
47,862 |
|
|
|
46,581 |
|
Consolidated Statements of Income (Loss) (Unaudited)
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
($ in thousands, except share data) |
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Revenues: |
|
|
|
|
|
|
|
|
||||||||
|
Commissions |
|
$ |
36,059 |
|
|
$ |
23,064 |
|
|
$ |
103,152 |
|
|
$ |
54,014 |
|
|
Servicing and other fees |
|
|
4,855 |
|
|
|
2,266 |
|
|
|
14,291 |
|
|
|
2,266 |
|
|
Net premiums earned |
|
|
17,027 |
|
|
|
27,441 |
|
|
|
48,908 |
|
|
|
80,074 |
|
|
Program fees |
|
|
3,590 |
|
|
|
3,622 |
|
|
|
10,739 |
|
|
|
9,517 |
|
|
Investment income |
|
|
2,666 |
|
|
|
3,488 |
|
|
|
8,090 |
|
|
|
10,891 |
|
|
Other |
|
|
2,408 |
|
|
|
10,124 |
|
|
|
(862 |
) |
|
|
13,831 |
|
|
Total revenues |
|
|
66,606 |
|
|
|
70,005 |
|
|
|
184,319 |
|
|
|
170,593 |
|
|
Expenses: |
|
|
|
|
|
|
|
|
||||||||
|
Commissions |
|
|
11,167 |
|
|
|
9,499 |
|
|
|
28,935 |
|
|
|
27,209 |
|
|
Losses and loss adjustment expenses |
|
|
14,386 |
|
|
|
20,421 |
|
|
|
35,860 |
|
|
|
62,800 |
|
|
Policy acquisition costs |
|
|
3,491 |
|
|
|
5,993 |
|
|
|
11,031 |
|
|
|
15,816 |
|
|
General and administrative |
|
|
53,710 |
|
|
|
44,000 |
|
|
|
132,781 |
|
|
|
89,436 |
|
|
Intangible amortization and depreciation |
|
|
9,746 |
|
|
|
7,104 |
|
|
|
28,663 |
|
|
|
10,332 |
|
|
Interest |
|
|
6,185 |
|
|
|
3,745 |
|
|
|
17,209 |
|
|
|
3,745 |
|
|
Total expenses |
|
|
98,685 |
|
|
|
90,762 |
|
|
|
254,479 |
|
|
|
209,338 |
|
|
Pretax income (loss) from continuing operations |
|
|
(32,079 |
) |
|
|
(20,757 |
) |
|
|
(70,160 |
) |
|
|
(38,745 |
) |
|
Provision (benefit) for income taxes from continuing operations |
|
|
(1,241 |
) |
|
|
(867 |
) |
|
|
(4,030 |
) |
|
|
(767 |
) |
|
Net income (loss) from continuing operations |
|
|
(30,838 |
) |
|
|
(19,890 |
) |
|
|
(66,130 |
) |
|
|
(37,978 |
) |
|
Net income (loss) from discontinued operations |
|
|
(80,890 |
) |
|
|
(9,386 |
) |
|
|
(163,288 |
) |
|
|
28,936 |
|
|
Net income (loss) |
|
|
(111,728 |
) |
|
|
(29,276 |
) |
|
|
(229,418 |
) |
|
|
(9,042 |
) |
|
Net (gain) loss attributable to noncontrolling interest |
|
|
(892 |
) |
|
|
1,773 |
|
|
|
(2,292 |
) |
|
|
859 |
|
|
Net income (loss) attributable to shareholders |
|
$ |
(112,620 |
) |
|
$ |
(27,503 |
) |
|
$ |
(231,710 |
) |
|
$ |
(8,183 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) from continuing operations attributable to shareholders |
|
$ |
(31,730 |
) |
|
$ |
(18,117 |
) |
|
$ |
(68,422 |
) |
|
$ |
(37,119 |
) |
|
Net income (loss) from discontinued operations attributable to shareholders |
|
|
(80,890 |
) |
|
|
(9,386 |
) |
|
|
(163,288 |
) |
|
|
28,936 |
|
|
Net income (loss) attributable to shareholders |
|
$ |
(112,620 |
) |
|
$ |
(27,503 |
) |
|
$ |
(231,710 |
) |
|
$ |
(8,183 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) from continuing operations per share attributable to shareholders |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(0.67 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.85 |
) |
|
Diluted |
|
$ |
(0.67 |
) |
|
$ |
(0.43 |
) |
|
$ |
(1.70 |
) |
|
$ |
(0.85 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) per share attributable to shareholders |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(2.35 |
) |
|
$ |
(0.63 |
) |
|
$ |
(5.11 |
) |
|
$ |
(0.23 |
) |
|
Diluted |
|
$ |
(2.35 |
) |
|
$ |
(0.63 |
) |
|
$ |
(5.11 |
) |
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
48,106,069 |
|
|
|
47,688,986 |
|
|
|
47,862,071 |
|
|
|
46,580,518 |
|
|
Diluted |
|
|
48,106,069 |
|
|
|
47,688,986 |
|
|
|
47,862,071 |
|
|
|
46,580,518 |
|
Consolidated Balance Sheets (Unaudited)
|
($ in thousands, except share data) |
|
2025 |
|
2025 |
||||
|
Assets: |
|
|
|
|
||||
|
Investments: |
|
|
|
|
||||
|
Fixed maturity securities, at fair value (amortized cost: |
|
$ |
131,101 |
|
|
$ |
161,335 |
|
|
Short-term investments, at fair value (amortized cost: |
|
|
295,825 |
|
|
|
102,720 |
|
|
Other investments (includes |
|
|
28,302 |
|
|
|
28,193 |
|
|
Total investments (net of allowance for credit losses of |
|
|
455,228 |
|
|
|
292,248 |
|
|
Cash and cash equivalents (including |
|
|
51,767 |
|
|
|
46,383 |
|
|
Premium receivables (net of allowance for credit losses of |
|
|
74,760 |
|
|
|
71,875 |
|
|
Commission and fees receivable |
|
|
75,480 |
|
|
|
72,619 |
|
|
Reinsurance recoverable on paid and unpaid losses (net of allowance for credit losses of |
|
|
440,462 |
|
|
|
376,445 |
|
|
Deferred ceded premium |
|
|
160,906 |
|
|
|
155,582 |
|
|
Policy acquisition costs |
|
|
9,284 |
|
|
|
9,407 |
|
|
Intangible assets, less accumulated amortization |
|
|
339,197 |
|
|
|
353,904 |
|
|
|
|
|
445,382 |
|
|
|
451,808 |
|
|
Other assets |
|
|
95,424 |
|
|
|
99,698 |
|
|
Assets of discontinued operations |
|
|
— |
|
|
|
6,592,417 |
|
|
Total assets |
|
$ |
2,147,890 |
|
|
$ |
8,522,386 |
|
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
||||
|
Liabilities: |
|
|
|
|
||||
|
Unearned premiums |
|
$ |
197,133 |
|
|
$ |
191,060 |
|
|
Loss and loss adjustment expense reserves |
|
|
437,539 |
|
|
|
383,969 |
|
|
Ceded premiums payable |
|
|
87,635 |
|
|
|
90,557 |
|
|
Deferred program fees and reinsurance commissions |
|
|
7,754 |
|
|
|
7,346 |
|
|
Deferred taxes |
|
|
68,865 |
|
|
|
72,003 |
|
|
Short-term debt |
|
|
— |
|
|
|
150,000 |
|
|
Accrued interest payable |
|
|
— |
|
|
|
2,944 |
|
|
Commission payable |
|
|
109,317 |
|
|
|
96,875 |
|
|
Other liabilities |
|
|
92,226 |
|
|
|
95,900 |
|
|
Liabilities of discontinued operations |
|
|
— |
|
|
|
6,213,024 |
|
|
Total liabilities |
|
|
1,000,469 |
|
|
|
7,303,678 |
|
|
|
|
|
|
|
||||
|
Redeemable noncontrolling interest |
|
|
188,247 |
|
|
|
190,347 |
|
|
Stockholders’ equity: |
|
|
|
|
||||
|
Preferred stock, par value |
|
|
— |
|
|
|
— |
|
|
Common stock, par value |
|
|
489 |
|
|
|
489 |
|
|
Additional paid-in capital |
|
|
367,077 |
|
|
|
347,939 |
|
|
Accumulated other comprehensive income (loss) |
|
|
11,780 |
|
|
|
(66,013 |
) |
|
Retained earnings |
|
|
491,733 |
|
|
|
607,548 |
|
|
|
|
|
(27,695 |
) |
|
|
(30,124 |
) |
|
|
|
|
843,384 |
|
|
|
859,839 |
|
|
Nonredeemable noncontrolling interest |
|
|
115,790 |
|
|
|
168,522 |
|
|
Total stockholders’ equity |
|
|
959,174 |
|
|
|
1,028,361 |
|
|
Total liabilities, redeemable noncontrolling interest and stockholders’ equity |
|
$ |
2,147,890 |
|
|
$ |
8,522,386 |
|
Non-GAAP Financial Data
In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin, Organic Revenue Growth Rate (Insurance Distribution segment only), Adjusted Net Income and Adjusted Net Income Margin. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial results.
We present non-GAAP supplemental financial information because we believe such information is of interest to the investment community, and that it provides greater transparency and enhanced visibility into the underlying drivers and performance of our businesses on a basis that may not be otherwise apparent on a GAAP basis. We view these non-GAAP financial measures as important indicators when assessing and evaluating our performance on a segmented and consolidated basis and they are presented to improve the comparability of our results between periods by eliminating the impact of the items that may not be representative of our core operating performance. These non-GAAP financial measures are not substitutes for the Company’s GAAP reporting, should not be viewed in isolation and may differ from similar reporting provided by other companies, which may define non-GAAP measures differently
The following paragraphs define each non-GAAP financial measure. A tabular reconciliation of the non-GAAP financial measure and the most comparable GAAP financial measure is also presented below.
Non-GAAP Financial Measures
Organic Revenue Growth & Rate (Insurance Distribution Only.) — Organic revenue is based on commissions and fees for the relevant period by excluding (i) the first twelve months of commissions and fees generated from acquisitions and (ii) commissions and fees from divestitures (iii) and other items such as contingent commissions and the impact of changes in foreign exchange rates.
Organic revenue growth is the change in organic revenue period-to-period, with prior period results adjusted to (i) include commissions and fees that were excluded from organic revenue in the prior period and reached the twelve-month owned mark in the current period, and (ii) exclude commissions and fees related to divestitures from organic revenue.
EBITDA — EBITDA is net income (loss) from continuing operations before interest expense, income taxes, depreciation and amortization of intangible assets.
EBITDA Margin — EBITDA divided by total revenues.
Adjusted EBITDA and Adjusted EBITDA Margin — We define Adjusted EBITDA as net income (loss) from continuing operations before interest expense, income taxes, depreciation, amortization of intangible assets, change in fair value of contingent consideration and certain items of income and expense, including share-based compensation expense, acquisition and integration related expenses, severance, and other exceptional or non-recurring items, including those related to raising capital. We believe that adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of income and expenses that may obfuscate business performance, and that the presentation of this measure enhances an investor's understanding of our financial performance.
Adjusted Net Income and Adjusted Net Income Margin — We define Adjusted net income as net income (loss) from continuing operations attributable to
Results of Operations by Segment (Continued)
|
Three Months Ended |
|
|
|
Insurance Distribution |
|
Corporate & Other |
|
Consolidated |
||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||
|
Gross premiums written |
|
$ |
97,185 |
|
|
|
|
|
|
$ |
97,185 |
|
||||
|
Net premiums written |
|
|
17,777 |
|
|
|
|
|
|
|
17,777 |
|
||||
|
Total revenues from Continuing Operations |
|
|
22,774 |
|
|
|
43,222 |
|
|
|
610 |
|
|
|
66,606 |
|
|
Total expenses from Continuing Operations |
|
|
22,819 |
|
|
|
48,969 |
|
|
|
26,897 |
|
|
|
98,685 |
|
|
Pretax income (loss) |
|
|
(45 |
) |
|
|
(5,747 |
) |
|
|
(26,287 |
) |
|
|
(32,079 |
) |
|
Provision (benefit) for income taxes |
|
|
8 |
|
|
|
(1,241 |
) |
|
|
(8 |
) |
|
|
(1,241 |
) |
|
Net income (loss) from Continuing Operations |
|
$ |
(53 |
) |
|
$ |
(4,506 |
) |
|
$ |
(26,279 |
) |
|
$ |
(30,838 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Interest expense |
|
|
|
$ |
6,185 |
|
|
|
|
$ |
6,185 |
|
||||
|
Add: Income tax expense |
|
|
8 |
|
|
|
(1,241 |
) |
|
|
(8 |
) |
|
|
(1,241 |
) |
|
Add: Depreciation |
|
|
— |
|
|
|
145 |
|
|
|
328 |
|
|
|
473 |
|
|
Add: Intangible amortization |
|
|
|
|
9,272 |
|
|
|
|
|
9,272 |
|
||||
|
EBITDA from Continuing Operations |
|
$ |
(45 |
) |
|
$ |
9,855 |
|
|
$ |
(25,958 |
) |
|
$ |
(16,148 |
) |
|
EBITDA from Continuing Operations attributable to
|
|
$ |
(45 |
) |
|
$ |
5,928 |
|
|
$ |
(25,958 |
) |
|
$ |
(20,075 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
229 |
|
|
$ |
229 |
|
|
Add: Equity-based compensation expense |
|
|
94 |
|
|
|
100 |
|
|
|
5,953 |
|
|
|
6,147 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
8,875 |
|
|
|
8,875 |
|
|
Add: Other non-operating (income) losses |
|
|
— |
|
|
|
— |
|
|
|
2,008 |
|
|
|
2,008 |
|
|
Adjusted EBITDA from Continuing Operations |
|
|
49 |
|
|
|
9,955 |
|
|
|
(8,893 |
) |
|
|
1,111 |
|
|
Adjusted EBITDA from Continuing Operations attributable to
|
|
$ |
49 |
|
|
$ |
5,988 |
|
|
$ |
(8,893 |
) |
|
$ |
(2,856 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) (Continuing Operations) |
|
$ |
(53 |
) |
|
$ |
(4,506 |
) |
|
$ |
(26,279 |
) |
|
$ |
(30,838 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
|
— |
|
|
|
— |
|
|
|
229 |
|
|
|
229 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
9,272 |
|
|
|
— |
|
|
|
9,272 |
|
|
Add: Equity-based compensation expense |
|
|
94 |
|
|
|
100 |
|
|
|
5,953 |
|
|
|
6,147 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
— |
|
|
|
8,875 |
|
|
|
8,875 |
|
|
Add: Other non-operating (income) losses |
|
|
— |
|
|
|
— |
|
|
|
2,008 |
|
|
|
2,008 |
|
|
Adjusted net income (loss) before tax and NCI |
|
|
41 |
|
|
|
4,866 |
|
|
|
(9,214 |
) |
|
|
(4,307 |
) |
|
Income tax effects |
|
|
— |
|
|
|
(2,067 |
) |
|
|
— |
|
|
|
(2,067 |
) |
|
Adjusted net income (loss) before NCI |
|
|
41 |
|
|
|
2,799 |
|
|
|
(9,214 |
) |
|
|
(6,374 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(3,583 |
) |
|
|
— |
|
|
|
(3,583 |
) |
|
Adjusted net income (loss) attributable to shareholders |
|
$ |
41 |
|
|
$ |
(784 |
) |
|
$ |
(9,214 |
) |
|
$ |
(9,957 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) margin |
|
|
(0.2 |
)% |
|
|
(10.4 |
)% |
|
|
NM |
|
|
|
(46.3 |
)% |
|
Adjusted EBITDA Margin |
|
|
0.2 |
% |
|
|
23.0 |
% |
|
|
NM |
|
|
|
1.7 |
% |
|
Adjusted EBITDA Margin to |
|
|
0.2 |
% |
|
|
13.9 |
% |
|
|
NM |
|
|
|
(4.3 |
)% |
|
Adjusted Net income (loss) after NCI margin |
|
|
0.2 |
% |
|
|
(1.8 |
)% |
|
|
NM |
|
|
|
(14.9 |
)% |
|
Three Months Ended |
|
|
|
Insurance Distribution |
|
Corporate & Other |
|
Consolidated |
||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||
|
Gross premiums written |
|
$ |
115,154 |
|
|
|
|
|
|
$ |
115,154 |
|
||||
|
Net premiums written |
|
|
32,754 |
|
|
|
|
|
|
|
32,754 |
|
||||
|
Total revenues from Continuing Operations |
|
|
40,132 |
|
|
|
23,995 |
|
|
|
5,878 |
|
|
|
70,005 |
|
|
Total expenses from Continuing Operations |
|
|
31,198 |
|
|
|
31,944 |
|
|
|
27,620 |
|
|
|
90,762 |
|
|
Pretax income (loss) |
|
|
8,934 |
|
|
|
(7,949 |
) |
|
|
(21,742 |
) |
|
|
(20,757 |
) |
|
Provision (benefit) for income taxes |
|
|
944 |
|
|
|
(883 |
) |
|
|
(928 |
) |
|
|
(867 |
) |
|
Net income (loss) from Continuing Operations |
|
$ |
7,990 |
|
|
$ |
(7,066 |
) |
|
$ |
(20,814 |
) |
|
$ |
(19,890 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Interest expense |
|
|
|
$ |
3,745 |
|
|
|
|
$ |
3,745 |
|
||||
|
Add: Income tax expense |
|
|
— |
|
|
|
(883 |
) |
|
|
(928 |
) |
|
|
(867 |
) |
|
Add: Depreciation |
|
|
|
|
206 |
|
|
|
475 |
|
|
|
681 |
|
||
|
Add: Intangible amortization |
|
|
|
|
6,423 |
|
|
|
|
|
6,423 |
|
||||
|
EBITDA from Continuing Operations |
|
$ |
8,934 |
|
|
$ |
2,425 |
|
|
$ |
(21,267 |
) |
|
$ |
(9,908 |
) |
|
EBITDA from Continuing Operations attributable to |
|
$ |
8,934 |
|
|
$ |
1,868 |
|
|
$ |
(21,267 |
) |
|
$ |
(10,465 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
|
— |
|
|
$ |
— |
|
|
$ |
14,854 |
|
|
|
14,854 |
|
|
Add: Equity-based compensation expense |
|
|
157 |
|
|
|
— |
|
|
|
2,376 |
|
|
|
2,533 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
248 |
|
|
|
1,653 |
|
|
|
1,901 |
|
|
Add: Other non-operating (income) losses |
|
|
(7,500 |
) |
|
|
— |
|
|
|
582 |
|
|
|
(6,918 |
) |
|
Adjusted EBITDA from Continuing Operations |
|
|
1,591 |
|
|
|
2,673 |
|
|
|
(1,802 |
) |
|
|
2,462 |
|
|
Adjusted EBITDA from Continuing Operations attributable to |
|
$ |
1,591 |
|
|
$ |
2,116 |
|
|
$ |
(1,802 |
) |
|
$ |
1,905 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) (Continuing Operations) |
|
$ |
7,990 |
|
|
$ |
(7,066 |
) |
|
$ |
(20,814 |
) |
|
$ |
(19,890 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
|
— |
|
|
|
— |
|
|
|
14,854 |
|
|
|
14,854 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
6,423 |
|
|
|
— |
|
|
|
6,423 |
|
|
Add: Equity-based compensation expense |
|
|
157 |
|
|
|
— |
|
|
|
2,376 |
|
|
|
2,533 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
248 |
|
|
|
1,653 |
|
|
|
1,901 |
|
|
Add: Other non-operating (income) losses |
|
|
(7,500 |
) |
|
|
— |
|
|
|
582 |
|
|
|
(6,918 |
) |
|
Adjusted net income (loss) before tax and NCI |
|
|
647 |
|
|
|
(395 |
) |
|
|
(1,349 |
) |
|
|
(1,097 |
) |
|
Income tax effects |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted net income (loss) before NCI |
|
|
647 |
|
|
|
(395 |
) |
|
|
(1,349 |
) |
|
|
(1,097 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(557 |
) |
|
|
— |
|
|
|
(557 |
) |
|
Adjusted net income (loss) attributable to shareholders |
|
$ |
647 |
|
|
$ |
(952 |
) |
|
$ |
(1,349 |
) |
|
$ |
(1,654 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) margin |
|
|
19.9 |
% |
|
|
(29.4 |
)% |
|
|
NM |
|
|
|
(28.4 |
)% |
|
Adjusted EBITDA Margin |
|
|
4.0 |
% |
|
|
11.1 |
% |
|
|
NM |
|
|
|
3.5 |
% |
|
Adjusted EBITDA Margin to |
|
|
4.0 |
% |
|
|
8.8 |
% |
|
|
NM |
|
|
|
2.7 |
% |
|
Adjusted Net income (loss) after NCI margin |
|
|
1.6 |
% |
|
|
(4.0 |
)% |
|
|
NM |
|
|
|
(2.4 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Results of Operations by Segment (Continued)
|
Nine Months Ended |
|
|
|
Insurance Distribution |
|
Corporate & Other |
|
Consolidated |
||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||
|
Gross premiums written |
|
$ |
280,347 |
|
|
|
|
|
|
$ |
280,347 |
|
||||
|
Net premiums written |
|
|
50,988 |
|
|
|
|
|
|
|
50,988 |
|
||||
|
Total revenues from Continuing Operations |
|
|
65,335 |
|
|
|
117,261 |
|
|
|
1,723 |
|
|
|
184,319 |
|
|
Total expenses from Continuing Operations |
|
|
63,258 |
|
|
|
135,420 |
|
|
|
55,801 |
|
|
|
254,479 |
|
|
Pretax income (loss) |
|
|
2,077 |
|
|
|
(18,159 |
) |
|
|
(54,078 |
) |
|
|
(70,160 |
) |
|
Provision (benefit) for income taxes |
|
|
278 |
|
|
|
(3,922 |
) |
|
|
(386 |
) |
|
|
(4,030 |
) |
|
Net income (loss) from Continuing Operations |
|
$ |
1,799 |
|
|
$ |
(14,237 |
) |
|
$ |
(53,692 |
) |
|
$ |
(66,130 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Interest expense |
|
$ |
— |
|
|
$ |
17,209 |
|
|
$ |
— |
|
|
$ |
17,209 |
|
|
Add: Income tax expense |
|
|
278 |
|
|
|
(3,922 |
) |
|
|
(386 |
) |
|
|
(4,030 |
) |
|
Add: Depreciation |
|
|
— |
|
|
|
343 |
|
|
|
1,074 |
|
|
|
1,417 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
27,247 |
|
|
|
— |
|
|
|
27,247 |
|
|
EBITDA from Continuing Operations |
|
$ |
2,077 |
|
|
$ |
26,640 |
|
|
$ |
(53,004 |
) |
|
$ |
(24,286 |
) |
|
EBITDA from Continuing Operations attributable to |
|
$ |
2,077 |
|
|
$ |
15,508 |
|
|
$ |
(53,004 |
) |
|
$ |
(35,418 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
$ |
— |
|
|
$ |
375 |
|
|
$ |
1,310 |
|
|
$ |
1,685 |
|
|
Add: Equity-based compensation expense |
|
|
241 |
|
|
|
167 |
|
|
|
9,422 |
|
|
|
9,830 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
60 |
|
|
|
13,612 |
|
|
|
13,672 |
|
|
Add: Other non-operating (income) losses |
|
|
— |
|
|
|
(591 |
) |
|
|
2,008 |
|
|
|
1,417 |
|
|
Adjusted EBITDA from Continuing Operations |
|
|
2,319 |
|
|
|
26,647 |
|
|
|
(26,652 |
) |
|
|
2,314 |
|
|
Adjusted EBITDA from Continuing Operations attributable to |
|
$ |
2,319 |
|
|
$ |
15,599 |
|
|
$ |
(26,652 |
) |
|
$ |
(8,734 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) (Continuing Operations) |
|
$ |
1,799 |
|
|
$ |
(14,241 |
) |
|
$ |
(53,689 |
) |
|
$ |
(66,130 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
|
— |
|
|
|
375 |
|
|
|
1,310 |
|
|
|
1,685 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
27,336 |
|
|
|
— |
|
|
|
27,336 |
|
|
Add: Equity-based compensation expense |
|
|
241 |
|
|
|
167 |
|
|
|
9,422 |
|
|
|
9,830 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
60 |
|
|
|
13,612 |
|
|
|
13,672 |
|
|
Add: Other non-operating (income) losses |
|
|
— |
|
|
|
(591 |
) |
|
|
2,008 |
|
|
|
1,417 |
|
|
Adjusted net income (loss) before tax and NCI |
|
|
2,041 |
|
|
|
13,106 |
|
|
|
(27,339 |
) |
|
|
(12,192 |
) |
|
Income tax effects |
|
|
(15 |
) |
|
|
(3,959 |
) |
|
|
15 |
|
|
|
(3,959 |
) |
|
Adjusted net income (loss) before NCI |
|
|
2,026 |
|
|
|
9,147 |
|
|
|
(27,324 |
) |
|
|
(16,151 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(10,395 |
) |
|
|
— |
|
|
|
(10,395 |
) |
|
Adjusted net income (loss) attributable to shareholders |
|
$ |
2,026 |
|
|
$ |
(1,248 |
) |
|
$ |
(27,324 |
) |
|
$ |
(26,546 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) margin |
|
|
7.9 |
% |
|
|
(32.9 |
)% |
|
|
NM |
|
|
|
(99.3 |
)% |
|
Adjusted EBITDA Margin |
|
|
3.5 |
% |
|
|
22.7 |
% |
|
|
NM |
|
|
|
1.3 |
% |
|
Adjusted EBITDA Margin to |
|
|
3.5 |
% |
|
|
13.3 |
% |
|
|
NM |
|
|
|
(4.7 |
)% |
|
Adjusted Net income (loss) after NCI margin |
|
|
8.9 |
% |
|
|
(2.9 |
)% |
|
|
NM |
|
|
|
(39.9 |
)% |
|
Nine Months Ended |
|
|
|
Insurance Distribution |
|
Corporate & Other |
|
Consolidated |
||||||||
|
($ in thousands) |
|
|
|
|
|
|
|
|
||||||||
|
Gross premiums written |
|
$ |
322,782 |
|
|
|
|
|
|
$ |
322,782 |
|
||||
|
Net premiums written |
|
|
91,290 |
|
|
|
|
|
|
|
91,290 |
|
||||
|
Total revenues from Continuing Operations |
|
|
101,502 |
|
|
|
55,166 |
|
|
|
13,925 |
|
|
|
170,593 |
|
|
Total expenses from Continuing Operations |
|
|
91,847 |
|
|
|
58,017 |
|
|
|
59,474 |
|
|
|
209,338 |
|
|
Pretax income (loss) |
|
|
9,655 |
|
|
|
(2,851 |
) |
|
|
(45,549 |
) |
|
|
(38,745 |
) |
|
Provision (benefit) for income taxes |
|
|
1,023 |
|
|
|
(756 |
) |
|
|
(1,034 |
) |
|
|
(767 |
) |
|
Net income (loss) from Continuing Operations |
|
$ |
8,632 |
|
|
$ |
(2,095 |
) |
|
$ |
(44,515 |
) |
|
$ |
(37,978 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Interest expense |
|
$ |
— |
|
|
$ |
3,745 |
|
|
$ |
— |
|
|
$ |
3,745 |
|
|
Add: Income tax expense |
|
|
1,023 |
|
|
|
(756 |
) |
|
|
(1,034 |
) |
|
|
(767 |
) |
|
Add: Depreciation |
|
|
— |
|
|
|
230 |
|
|
|
1,401 |
|
|
|
1,631 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
8,701 |
|
|
|
— |
|
|
|
8,701 |
|
|
EBITDA from Continuing Operations |
|
$ |
9,655 |
|
|
$ |
9,825 |
|
|
$ |
(44,148 |
) |
|
$ |
(24,668 |
) |
|
EBITDA from Continuing Operations attributable to |
|
$ |
9,655 |
|
|
$ |
7,918 |
|
|
$ |
(44,148 |
) |
|
$ |
(26,575 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjustments to Adjusted EBITDA |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
25,827 |
|
|
$ |
25,827 |
|
|
Add: Equity-based compensation expense |
|
|
282 |
|
|
|
— |
|
|
|
6,252 |
|
|
|
6,534 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
248 |
|
|
|
6,990 |
|
|
|
7,238 |
|
|
Add: Other non-operating (income) losses |
|
|
(7,500 |
) |
|
|
— |
|
|
|
(3,845 |
) |
|
|
(11,345 |
) |
|
Adjusted EBITDA from Continuing Operations |
|
|
2,439 |
|
|
|
10,067 |
|
|
|
(8,921 |
) |
|
|
3,585 |
|
|
Adjusted EBITDA from Continuing Operations attributable to |
|
$ |
2,439 |
|
|
$ |
8,160 |
|
|
$ |
(8,921 |
) |
|
$ |
1,678 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) (Continuing Operations) |
|
$ |
8,631 |
|
|
$ |
(1,983 |
) |
|
$ |
(44,515 |
) |
|
$ |
(37,868 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
|
Add: Acquisition and integration related expenses |
|
|
— |
|
|
|
— |
|
|
|
25,827 |
|
|
|
25,827 |
|
|
Add: Intangible amortization |
|
|
— |
|
|
|
8,701 |
|
|
|
— |
|
|
|
8,701 |
|
|
Add: Equity-based compensation expense |
|
|
282 |
|
|
|
— |
|
|
|
6,252 |
|
|
|
6,534 |
|
|
Add: Severance and restructuring expense |
|
|
— |
|
|
|
248 |
|
|
|
6,990 |
|
|
|
7,238 |
|
|
Add: Other non-operating (income) losses |
|
|
(7,500 |
) |
|
|
— |
|
|
|
(3,845 |
) |
|
|
(11,345 |
) |
|
Adjusted net income (loss) before tax and NCI |
|
|
1,416 |
|
|
|
6,854 |
|
|
|
(9,292 |
) |
|
|
(1,022 |
) |
|
Income tax effects |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted net income (loss) before NCI |
|
|
1,416 |
|
|
|
6,854 |
|
|
|
(9,292 |
) |
|
|
(1,022 |
) |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(1,907 |
) |
|
|
— |
|
|
|
(1,907 |
) |
|
Adjusted net income (loss) attributable to shareholders |
|
$ |
1,416 |
|
|
$ |
4,947 |
|
|
$ |
(9,292 |
) |
|
$ |
(2,929 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Net income (loss) margin |
|
|
8.5 |
% |
|
|
(3.8 |
)% |
|
|
NM |
|
|
|
(22.3 |
)% |
|
Adjusted EBITDA Margin |
|
|
2.4 |
% |
|
|
18.2 |
% |
|
|
NM |
|
|
|
2.1 |
% |
|
Adjusted EBITDA Margin to |
|
|
2.4 |
% |
|
|
14.8 |
% |
|
|
NM |
|
|
|
1.0 |
% |
|
Adjusted Net income (loss) after NCI margin |
|
|
1.4 |
% |
|
|
9.0 |
% |
|
|
NM |
|
|
|
(1.7 |
)% |
|
|
|
|
|
|
|
|
|
|
||||||||
Organic Growth
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||
|
($ in thousands) |
|
|
2025 |
|
|
|
2024 |
|
|
% Growth |
|
|
2025 |
|
|
|
2024 |
|
|
% Growth |
||
|
Total Insurance Distribution revenue (1) |
$ |
43,222 |
|
|
$ |
23,995 |
|
|
80 |
% |
|
$ |
117,261 |
|
|
$ |
55,166 |
|
|
113 |
% |
|
|
Less: Acquired revenues |
|
(6,206 |
) |
|
|
|
|
|
|
(43,955 |
) |
|
|
— |
|
|
|
|||||
|
Less: Profit commission and contingent commission income |
|
(1,940 |
) |
|
|
(1,319 |
) |
|
|
|
|
(8,897 |
) |
|
|
(3,642 |
) |
|
|
|||
|
Total Organic Revenue & Growth Percentage |
|
34,035 |
|
|
|
24,312 |
|
|
40.0 |
% |
|
|
67,052 |
|
|
|
53,160 |
|
|
26.1 |
% |
|
|
(1) |
Total Insurance Distribution revenue includes investment income |
Total Specialty P&C Insurance Production
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
($ in thousands) |
|
|
2025 |
|
|
2024 |
|
% Change |
|
|
2025 |
|
|
2024 |
|
% Change |
||
|
Specialty Property & Casualty Insurance Gross Premiums Written |
|
$ |
97,185 |
|
$ |
115,154 |
|
(16 |
)% |
|
$ |
280,347 |
|
$ |
322,782 |
|
(13 |
)% |
|
Insurance Distribution Premiums Placed |
|
|
245,394 |
|
|
144,949 |
|
69 |
% |
|
|
728,493 |
|
|
288,463 |
|
153 |
% |
|
Specialty P&C Insurance Production |
|
$ |
342,579 |
|
$ |
260,103 |
|
32 |
% |
|
$ |
1,008,840 |
|
$ |
611,245 |
|
65 |
% |
About
The Amended and Restated Certificate of Incorporation of
Forward-Looking Statements
In this press release, 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
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. Ambac Financial Group’s (“AFG”) and its subsidiaries’ (collectively, “Ambac” or the “Company”) 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 high degree of volatility in the price of AFG’s common stock; (2) uncertainty concerning the Company’s ability to achieve value for holders of its securities from the specialty property and casualty insurance business, the insurance distribution business, or related businesses; (3) greater than expected underwriting losses in the Company’s specialty property and casualty insurance business resulting in inadequacy of loss and loss expense reserves and the possibility that changes in reserves may result in further volatility of earnings or financial results; (4) credit risk throughout Ambac’s business, including but not limited to issuers of securities in our investment portfolios, and exposures to reinsurers; (5) our inability to achieve investment objectives; (6) the Company’s inability to generate the significant amount of cash needed to service its debt and financial obligations, and its inability to refinance its indebtedness; (7) the Company’s indebtedness could adversely affect the Company’s financial condition and operating flexibility; (8)
View source version on businesswire.com: https://www.businesswire.com/news/home/20251110392241/en/
Investor Relations
(212) 208-3222
[email protected]
Source:
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