Ambac Financial Group, Inc. Announces Write Down Related to National Century Financial Enterprises, Inc. Sponsored Notes in Its Investment Portfolio.Business Editors NEW YORK--(BUSINESS WIRE)--Nov. 18, 2002 Ambac Financial Group Ambac Financial Group (NYSE: ABK) is an American Insurer of bonds, including municipal bonds. Ambac Financial Group, Inc. (NYSE: ABK) is a holding company whose subsidiaries provide financial guarantee products and other financial services to clients in both , Inc. (NYSE NYSE See: New York Stock Exchange : ABK) (Ambac) announced today that it will take a write down amounting to $79.4 million after tax, with a net income per diluted share effect of $0.73 related to impairment on National Century Financial Enterprises, Inc. (NCFE) notes it owns in its financial services investment portfolio. As previously announced, Ambac owns $54 million of NCFE sponsored note NPF XII, and $120.5 million of NCFE sponsored note NPF VI, both of which were rated triple-A until October 25, 2002. The write down represents 70% of the value of NPF XII and NPF VI notes that it owns. The amount of the write down is based on the most recent information available to Ambac management. Ambac has joined a group of bondholders that will seek to recover any losses through all means available; however, no estimate for recovery is included in the amount of the write down. The fair value of Ambac's investment portfolio is approximately $11.7 billion. Net unrealized gains on investments approximate $400 million after this write down. Ambac has no financial guarantee insurance or other exposure to National Century Financial Enterprises, Inc. Sponsored Programs. Ambac Financial Group, 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 whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. Ambac's principal operating subsidiary, Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. , a leading guarantor of public finance and structured finance obligations, has earned triple-A ratings, the highest ratings available 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 Services, Fitch, Inc. and Rating and Investment Information, Inc. Ambac Financial Group, Inc. common stock is listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (ticker symbol ABK). |
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