AMBAC Inc. Announces Second Quarter Net Income of $135.9 Million, up 267%.--(BUSINESS WIRE)-- Second Quarter Net Income Includes Gain on Sale of HCIA HCIA Hungarian Chemical Industry Association HCIA Hazardous Chemicals Information Act HCIA Hague Convention on Intercountry Adoption Second Quarter Core Earnings Up 18%, Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before Up 29% NEW YORK--August 1, 1996--AMBAC Inc. (NYSE NYSE See: New York Stock Exchange : ABK ABK Abkuerzung (German: Abbreviation) ABK Anybody Killa (musician) ABK Ahli Bank of Kuwait ABK American Bank of Kosovo ABK Aphakic Bullous Keratopathy (ophthalmology) ) today announced second quarter 1996 net income of $135.9 million, or $3.89 per share, an increase of 267% from $37.0 million, or $1.05 per share in the second quarter of 1995. The increase in net income was primarily the result of the net realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of $155.6 million from the Company's sale of its affiliate Affiliate Relationship between two companies when one company owns substantial interest, but less than a majority of the voting stock of another company, or when two companies are both subsidiaries of a third company. See: Subsidiaries, parent company. , HCIA Inc. This gain was partially offset by realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. on sales of securities in its investment portfolio of $22.1 million. The net effect of these actions is a net realized gain of $133.5 million, which had a net income per common share effect of $2.47. The increase in net income was also the result of increased premiums earned for the period, higher investment income and higher financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , partially offset by higher expenses. Net income for the first six months of 1996 was $180.5 million, or $5.16 per share, an increase of 157% from $70.3 million, or $2.00 per share in the first six months of 1995. Commenting on the results, AMBAC AMBAC American Municipal Bond Assurance Corporation AMBAC Active Mass Balance Auto-Control (Gundam anime) Chairman, President and Chief Executive Officer, Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
Financial Guarantee Insurance The Company provides financial guarantee insurance through its principal operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , AMBAC Indemnity Recompense for loss, damage, or injuries; restitution or reimbursement. An indemnity contract arises when one individual takes on the obligation to pay for any loss or damage that has been or might be incurred by another individual. Corporation (AMBAC Indemnity), which is a leading insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. of municipal and structured finance transactions. AMBAC Indemnity insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. $9.2 billion in par value bonds during the second quarter of 1996, more than doubling the $4.5 billion insured in the second quarter of 1995. Par value written for the second quarter of 1996 comprised $7.1 billion from municipal bond insurance Municipal bond insurance An insurance policy which guarantees payment on municipal bonds in the event of default . municipal bond insurance A guarantee from a third party that principal and interest will be paid to a bondholder. and $2.1 billion from structured finance insurance, versus $4.0 billion and $0.5 billion, respectively, in the second quarter of 1995. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. estimates based on industry sources, AMBAC Indemnity's new issue municipal market share for the second quarter of 1996 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 27% versus approximately 24% in the second quarter of 1995. Gross premiums written When a non-life insurance company closes a contract to provide insurance against loss, the revenues (premiums) expected to be received over the life of the contract are called gross premiums written. for the second quarter of 1996 were $58.1 million, an increase of 60% from the $36.4 million written in the second quarter of 1995. This increase was primarily due to a significant increase in new issue municipal premiums written, partially offset by a decline in secondary market premiums written. Gross premiums written for the first six months of 1996 were $108.4 million, an increase of 42% from the $76.6 million written in the first six months of 1995. While most of AMBAC Indemnity's premiums written are collected up-front up-front or up·front Informal adj. 1. Straightforward; frank. 2. Paid or due in advance: up-front cash. adv. at policy issuance, a growing portion of premiums are collected on an installment Regular, partial portion of the same debt, paid at successive periods as agreed by a debtor and creditor. An installment loan is designed to be repaid in certain specified, ordinarily equal amounts over a designated period, such as a year or a number of months. basis. The present value of estimated future installment premiums written in the second quarter of 1996 was $22.0 million, an increase of 93% from the $11.4 million written in the second quarter of 1995. The net aggregate present value of estimated future installment premiums was $128.0 million and $110.0 million as of June June: see month. 30, 1996 and December December: see month. 31, 1995, respectively. Ceded premiums written for the second quarter of 1996 were $9.8 million, versus the ($6.5) million written in the second quarter of 1995. Ceded premiums written in the second quarter of 1995 included the collection of $18.1 million in return premiums from the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. contracts. Excluding these return premiums, ceded premiums written in the second quarter of 1996 decreased by 16% compared to the second quarter of 1995. The decrease was due to lower premiums ceded under facultative facultative /fac·ul·ta·tive/ (fak´ul-ta?tiv) not obligatory; pertaining to the ability to adjust to particular circumstances or to assume a particular role. fac·ul·ta·tive adj. 1. reinsurance agreements in the second quarter of 1996. Ceded premiums written for the first six months of 1996 were $19.4 million, versus ($3.1) million written in the first six months of 1995. Net premiums written for the second quarter of 1996 were $48.3 million, an increase of 13% from the $42.9 million written in the second quarter of 1995. The increase in net premiums written in the second quarter of 1996 over the comparable prior period is less significant than the increase in gross premiums written. This is because net premiums written in the second quarter of 1995 reflect return premiums from the cancellation of reinsurance contracts in that period. Net premiums written for the first six months of 1996 were $89.0 million, versus $79.7 million written in the first six months of 1995. Net premiums earned for the second quarter of 1996 were $39.6 million, an increase of 42% from the $27.8 million earned in the second quarter of 1995. This increase was primarily the result of higher premiums earned from refundings and calls in the second quarter of 1996 and the growth in premiums earned from the underlying book of business during the period. Net premiums earned for the second quarter of 1996 included $13.8 million from refundings, calls and other accelerations (which had a net income per common share effect of $0.22) compared to the second quarter of 1995, which included $5.4 million of net premiums earned from refundings, calls and other accelerations (which had a net income per common share effect of $0.08). Net premiums earned for the first six months of 1996 were $67.8 million, an increase of 30% from the $52.1 million earned in the first six months of 1995. Net investment income for the second quarter of 1996 was $35.5 million, an increase of 10% from $32.3 million in the second quarter of 1995. The increase was primarily due to the growth of the investment portfolio partially offset by lower yields. Net investment income for the first six months of 1996 was $70.3 million, an increase of 10% from $64.0 million in the first six months of 1995. AMBAC Indemnity's investments in tax- tax- pref. Variant of taxo-. exempt securities Exempt securities Instruments exempt from the registration requirements of the Securities Act of 1933 or the margin requirements of the SEC Act of 1934. Such securities include government bonds, agencies, munis, commercial paper, and private placements. were 76% of the total market value of the portfolio as of June 30, 1996, as compared to 78% at June 30, 1995. Net realized losses from investment sales for the second quarter of 1996 was ($22.1) million (net income per common share effect of $0.41) as compared to ($2.2) million (net income per common share effect of $0.04) in the comparable period of 1995. The net realized losses in the second quarter of 1996 were generated to partially offset the realized gain from the sale of HCIA. Underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the second quarter of 1996 were $10.4 million, an increase of 14% from $9.1 million in the second quarter of 1995. This increase was primarily the result of a non-recurring severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when charge of $1.0 million (net income per common share effect of $0.02) as well as increased amortization of deferred acquisition costs. Underwriting and operating expenses for the first six months of 1996 were $19.1 million, an increase of 11% from $17.2 million in the first six months of 1995. Financial Services Through its financial services subsidiaries, the Company provides investment contracts, interest rate swaps Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and investment management principally to states, municipalities and municipal authorities. Financial services operating income (loss) for the second quarter of 1996 was $2.7 million, versus ($0.8) million in the second quarter of 1995. Financial services revenues for the second quarter of 1996 were $5.1 million, versus $1.1 million in the second quarter of 1995. The increase was primarily due to revenues on interest rate swaps during the second quarter of 1996. In the comparable prior period, market fears of broad based tax reform caused the Company to recognize net unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. in the swap portfolio. Financial services expenses for the second quarter of 1996 were $2.4 million versus $1.8 million in the second quarter of 1995. The increased expenses were primarily due to start-up Start-up The earliest stage of a new business venture. costs associated with the new investment management business which began in late 1995. Financial services operating income for the first six months of 1996 was $7.6 million on revenues of $12.1 million and expenses of $4.5 million, as compared to operating income of $0.8 million on revenues of $4.5 million and expenses of $3.7 million for the corresponding period in 1995. Corporate Items As previously announced, on May 6, 1996 the Company sold its 4,159,505 shares of HCIA common stock in a secondary public offering yielding net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). to the Company of $202.6 million. The sale resulted in a net realized gain of $155.6 million pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. tax, $100.6 million after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. , (net income per common share effect of $2.88). Interest expense for the second quarter of 1996 was $5.2 million, unchanged from the second quarter of 1995. Other income (deductions) increased to $1.4 million in the second quarter of 1996 from ($0.2) million in the comparable period of 1995 due to additional investment income generated by the holding company from the proceeds of the HCIA sale. Income taxes for the second quarter of 1996 were at an effective rate of 31.3%, versus 19.2% in 1995. The increase in the Company's effective income tax rate in the second quarter of 1996 was primarily the result of the realized gain on the sale of its HCIA holdings. Supplemental Analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. Financial Data Core earnings for the second quarter of 1996 were $41.8 million, an increase of 18% from $35.5 million in the second quarter of 1995. The increase in core earnings was primarily the result of continued growth in net premiums earned and net investment income from financial guarantee insurance operations, as well as increased operating income from financial services. Core earnings for the first six months of 1996 were $82.4 million, an increase of 18% from $70.0 million in the first six months of 1995. Core earnings, which the Company reports as analytical data, exclude the effect on consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net income from net realized gains and losses, net insurance premiums earned from refundings and calls and certain non-recurring items. Core earnings is not a substitute for net income computed in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), but is an important measure used by management, equity analysts and investors to measure the financial results of the Company. Operating earnings for the second quarter of 1996 were $49.6 million, an increase of 29% from $38.5 million in the first quarter of 1995. Operating earnings for the first six months of 1996 were $92.7 million, an increase of 24% from $74.9 million in the first six months of 1995. The Company defines operating earnings as net income, less the effect of net realized gains and losses and certain non-recurring items. Similar to core earnings, operating earnings is used by management, equity analysts and investors to measure the financial results of the Company, but is not a substitute for net income computed in accordance with GAAP. Balance Sheet Analysis Total assets as of June 30, 1996 were $5.69 billion, an increase of 7% from $5.31 billion at December 31, 1995. This increase was primarily due to continuing growth of the Company's financial guarantee insurance operations and the sale of HCIA, partially offset by a decline in market value of the investment portfolio resulting from the increase in interest rates during the six month period ended June 30, 1996. As of June 30, 1996, the Company's stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $1.47 billion, an increase of 5% from year end 1995, primarily due to the sale of HCIA, partially offset by the decline in market value of the investment portfolio. Book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: increased 6% to $42.26 at June 30, 1996, from $40.04 at December 31, 1995. Adjusted book value (ABV ABV Above ABV Alcohol By Volume ABV Abuja, Nigeria (airport code) ABV Assault Breacher Vehicle ABV Accredited Business Valuation specialist ABV Auxiliary Building Ventilation ABV Annual Buy Value ABV Air Bleed Valve ) per common share increased 3% to $57.89 from $56.47 at December 31, 1995. ABV, which is not promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under GAAP, is used by management, equity analysts and investors as a conservative and useful measurement of the Company's intrinsic value Intrinsic Value 1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. with no benefit given for ongoing business activity. Management derives adjusted book value by beginning with stockholders' equity (book value) and adding or subtracting the after-tax effect of: the net unearned premium reserve; deferred acquisition costs; the present value of net future installment premiums; the unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on the investment in HCIA (prior to sale on May 6, 1996); and the unrealized gain or loss on investment contract liabilities. The definition of ABV used by the Company may differ from definitions of ABV used by other public financial guarantors and should be considered in such context. The adjustments described above will not be realized until future periods and may differ materially from the amounts used in determining ABV. Regular Quarterly Cash Dividend Declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. The Board of Directors of AMBAC Inc. today declared the regular quarterly cash dividend of $0.15 per share of common stock. The dividend is payable on September September: see month. 4, 1996 to stockholders of record on August 12, 1996. -0- AMBAC Inc., headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , is a holding company that provides through its affiliates financial guarantee insurance and financial services to clients in both the public and private sectors. The Company's principal operating subsidiary, AMBAC Indemnity Corporation, a leading insurer of municipal and structured finance obligations, has been assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. triple-A claims-paying ability ratings from Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc., Standard & Poor's Ratings Group and Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. , L.P.
AMBAC Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For The Periods Ended June 30, 1996 and 1995
(Dollars in Thousands Except Common Share Data)
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
1996 1995 1996 1995
--------------------- --------------------
Financial guarantee
insurance operations:
Gross prems. written $58,115 $36,402 $108,402 $76,598
Ceded prems. written (9,836) 6,514 (19,448) 3,055
------- ------- -------- -------
Net prems. written 48,279 42,916 88,954 79,653
Incr. in unearned prem. (8,634) (15,069) (21,116) (27,589)
------- ------- ------- -------
Net prems. earned 39,645 27,847 67,838 52,064
Net investment income 35,498 32,292 70,325 64,047
Net realized losses (22,100) (2,202) (19,744) (6,876)
Other income 2,236 1,628 3,628 3,189
------- ------- ------- -------
55,279 59,565 122,047 112,424
------- ------- ------- -------
Losses & loss
adjustment expenses 1,700 341 2,510 1,369
Underwriting & oprtg. exp. 10,351 9,130 19,099 17,175
------- ------- ------- -------
12,051 9,471 21,609 18,544
------- ------- ------- -------
Financial guarantee
ins. operating income 43,228 50,094 100,438 93,880
Financial services
operating income (loss) 2,737 (752) 7,612 775
Equity in income of
of affiliate - 1,867 627 2,093
Interest expense (5,167) (5,221) (10,425) (10,208)
Other inc. (deductions),net 1,366 (209) 919 (436)
Other net realized gains 155,613 - 155,613 -
------- ------- ------- -------
Income bef. inc. taxes 197,777 45,779 254,784 86,104
------- ------- ------- -------
Income tax expense:
Current taxes 66,939 5,789 79,913 11,230
Deferred taxes (5,109) 3,005 (5,629) 4,588
------- ------- ------- -------
Total income taxes 61,830 8,794 74,284 15,818
------- ------- ------- -------
Net income $135,947 $36,985 $180,500 $70,286
======== ======= ======== ========
Per share amounts -
Net income per common share $3.89 $1.05 $5.16 $2.00
===== ===== ===== =====
Weighted average no. of
common shs. outstanding 34,915,449 35,091,221 34,984,680 35,090,641
========== ========== ========== ==========
-0-
AMBAC Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, 1996 and December 31, 1995
(Dollars in Thousands)
June 30, December 31,
1996 1995
----------- ------------
(unaudited)
ASSETS
Investments:
Bonds held in available-for-sale account,
at fair value (amortized cost of
$4,782,496 in 1996 and $4,082,791 in 1995) $4,814,547 $4,264,904
Short-term investments, at cost
(approximates fair value) 230,975 176,689
----------- -----------
Total investments 5,045,522 4,441,593
Cash 5,386 12,167
Sec. purchased under agreements to resell 148,586 240,280
Receivable for municipal investment contracts 47,968 204,797
Receivable for securities 65,688 14,523
Investment income due and accrued 62,684 56,370
Investment in affiliate - 45,019
Deferred acquisition costs 88,107 82,620
Prepaid reinsurance 162,166 153,372
Other assets 64,835 58,538
----------- -----------
Total assets $5,690,942 $5,309,279
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities:
Unearned premiums $932,935 $903,026
Losses and loss adjustment expenses 59,429 65,996
Ceded reinsurance balances payable 6,765 14,654
Obligations under municipal investment
contracts 2,382,653 2,185,746
Obligations under municipal investment
repurchase contracts 302,939 241,112
Deferred income taxes 42,969 103,697
Current income taxes 60,874 5,125
Debentures 223,765 223,732
Accrued interest payable 29,300 25,494
Accounts payable and other liabilities 47,121 44,578
Payable for securities 129,988 92,131
----------- -----------
Total liabilities 4,218,738 3,905,291
----------- -----------
Stockholders' equity:
Preferred stock - -
Common stock, Class A - -
Common stock 353 353
Additional paid-in capital 493,501 492,495
Unrealized gains (losses) on investments,
net of tax 12,918 102,470
Retained earnings 989,431 819,479
Common stock held in treasury at cost (23,999) (10,809)
----------- -----------
Total stockholders' equity 1,472,204 1,403,988
----------- -----------
Total liabilities and stockholders' equity $5,690,942 $5,309,279
=========== ===========
Number of common shares outstanding
(net of treasury shares) 34,839,706 35,063,573
=========== ===========
Book value per common share $42.26 $40.04
=========== ===========
Adjusted book value per common share $57.89 $56.47
=========== ===========
-0-
AMBAC Inc. and Subsidiaries
Components of Core Earnings
(Unaudited)
For The Periods Ended June 30, 1996 and 1995
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
1996 1995 1996 1995
------------------ ------------------
Net income $135,947 $36,985 $180,500 $70,286
Adjustments:
Net realized (gains) losses (86,300) 1,466 (87,832) 4,631
------- ------- ------- -------
Operating earnings 49,647 38,451 92,668 74,917
Refundings, calls and
other accelerations (7,833) (2,915) (10,236) (4,870)
------- ------- ------- -------
Core earnings $41,814 $35,536 $82,432 $70,047
======= ======= ======= =======
-0-
AMBAC Inc. and Subsidiaries
Components of Adjusted Book Value Per Share (1)
June 30, 1996 and December 31, 1995
June 30, December 31,
1996 1995
------------ ------------
(unaudited)
Book value $42.26 $40.04
After-tax value of:
Net unearned premium reserve less
deferred acquisition costs 12.74 12.35
Present value of installment premiums 2.38 2.05
Unrealized gain on investment in HCIA - 2.77
Unrealized gain (loss) on investment
contract liabilities 0.50 (0.74)
------ ------
Adjusted book value $57.89 $56.47
====== ======
(1) Numbers may not add due to rounding.
-0-
AMBAC Indemnity Corporation
Selected Statutory Data
June 30, 1996 and December 31, 1995
(Dollars in Thousands, Except Ratios)
June 30, December 31,
1996 1995
----------- ------------
(unaudited)
Balance Sheet:
Contingency reserve $529,798 $495,793
Capital and surplus 854,479 862,976
---------- ----------
Qualified statutory capital 1,384,277 1,358,769
Unearned premium reserve 939,520 904,873
Losses and loss adjustment
expenses 28,496 39,249
---------- ----------
Policyholders' reserves 2,352,293 2,302,891
Present value of installment premiums 128,000 110,000
Third party capital support (1) 300,000 300,000
---------- ----------
Total $2,780,293 $2,712,891
========== ==========
Net insurance in force $209,314,091 $199,078,405 Capital ratio (2) 151:1 147:1 Financial resources ratio (3) 75:1 73:1
(1) Third party capital support represents a limited recourse
irrevocable line of credit with AAA/Aaa-rated Deutsche Bank,
individually and as Agent.
(2) Capital ratio is net insurance in force divided by qualified
statutory capital.
(3) Financial resources ratio is net insurance in force divided by
the aggregate of total policyholders' reserves, third party
capital support and net present value of installment premiums.
CONTACT: Investor Contact: David J David J. Haskins (b. April 24, 1957, in Northampton, England) is a British alternative rock musician. He was the bassist for the seminal gothic rock band Bauhaus. Life and work . Weissman (212) 208-3244 or Media Contact: John M. Cathey Cathey is a surname, of Scottish origins. It may derive from Clan Macfie. The spelling in English before members migrated to America was probably "Cathie" or "Cathy". (212) 208-3490 or Website: http://www.ambac.com |
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