Correcting and replacing Consolidated Balance Sheets table.NEW YORK--(BUSINESS WIRE)--Oct. 31, 1996--In BW1046 (AMBAC AMBAC American Municipal Bond Assurance Corporation AMBAC Active Mass Balance Auto-Control (Gundam anime) ), AMBAC Inc. announces third quarter net income of $43.8 million, down 12% due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain in prior period; correcting Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. . Corrected release follows. -0- ( BW)(AMBAC)(ABK ABK Abkuerzung (German: Abbreviation) ABK Anybody Killa (musician) ABK Ahli Bank of Kuwait ABK American Bank of Kosovo ABK Aphakic Bullous Keratopathy (ophthalmology) ) AMBAC Inc. announces third quarter net income of $43.8 million, down 12% due to one-time gain in prior period Business Editors NEW YORK--(BUSINESS WIRE)--Oct. 31, 1996-- - Third quarter core earnings up 16%, 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 21% - AMBAC Inc. (NYSE NYSE See: New York Stock Exchange : ABK) today announced third quarter 1996 net income of $43.8 million, or $1.26 per share, a decrease of 12% from $49.5 million, or $1.41 per share in the third quarter of 1995. The decrease in net income was the result of a 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 $19.1 million (which had a net income per common share effect of $0.34) recognized in the third quarter of 1995 from the sale of 1.1 million shares of HCIA HCIA Hungarian Chemical Industry Association HCIA Hazardous Chemicals Information Act HCIA Hague Convention on Intercountry Adoption Inc., a former 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. of the Company. Excluding the realized gain in the third quarter of 1995, third quarter 1996 net income increased 16% over the corresponding period of 1995. This increase was attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increased premiums earned for the period and higher net investment income, partially offset by higher net 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 and higher expenses. Net income for the first nine months of 1996 was $224.3 million, or $6.42 per share, an increase of 87% from $119.8 million, or $3.41 per share in the first nine months of 1995. The increase in net income in 1996 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results was largely due to the second quarter realized gain of $155.6 million from the sale of the Company's remaining holdings of HCIA, (which had a net income per common share effect of $2.88). Excluding the effects of the respective gains from the sales of HCIA stock in the second quarter of 1996 and the third quarter of 1995, net income for the first nine months of 1996 increased 15% over the corresponding period of 1995. This increase in year-to-date net income is primarily the result of higher premiums earned and net investment income as well as 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 net realized losses on sales of securities and higher expenses. Commenting on the results, AMBAC Chairman, President and Chief Executive Officer, Phillip Phillip is a variant of the name Philip. It may refer to: Given name:
Core earnings(1) for the third quarter of 1996 were $43.3 million, an increase of 16% from $37.3 million in the third 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. Core earnings for the first nine months of 1996 were $125.7 million, an increase of 17% from $107.4 million in the first nine months of 1995. Core earnings, which the Company reports as analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. 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. Operating earnings(1) for the third quarter of 1996 were $47.3 million, an increase of 21% from $39.2 million in the third quarter of 1995. Operating earnings for the first nine months of 1996 were $140.0 million, an increase of 23% from $114.1 million in the first nine 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. 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. $8.3 billion in par value bonds during the third quarter of 1996, an increase of 41% from the $5.9 billion insured in the third quarter of 1995. Par value written for the third quarter of 1996 comprised $6.8 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 $1.5 billion from structured finance insurance, versus $5.2 billion and $0.7 billion, respectively, in the third 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 third quarter of 1996 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 37%, versus approximately 29% in the third 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 third quarter of 1996 were $67.6 million, an increase of 55% from the $43.5 million written in the third quarter of 1995. This increase was primarily due to increased premium writings in the municipal new issue and secondary markets as well as increased structured finance premiums written. Gross premiums written for the first nine months of 1996 were $176.0 million, an increase of 47% from the $120.1 million written in the first nine 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 third quarter of 1996 was $16.7 million, more than double the $7.2 million written in the third quarter of 1995. The net aggregate present value of estimated future installment premiums was $137.2 million and $110.0 million as of September September: see month. 30, 1996 and December December: see month. 31, 1995, respectively. AMBAC Indemnity reported adjusted gross premiums, which are defined as up-front premiums plus the present value of estimated future installment premiums, of $77.7 million in the third quarter of 1996, up 66% from $46.7 million in the comparable prior period. Adjusted gross premiums for the first nine months of 1996 were $205.8 million, a 58% improvement from $130.5 million in the first nine months of 1995. Ceded premiums written for the third quarter of 1996 were $9.8 million, versus the $7.4 million written in the third quarter of 1995. The 32% increase in ceded premiums is primarily due to the increase in gross premiums written. Ceded premiums written for the first nine months of 1996 were $29.3 million, versus $4.3 million written in the first nine months of 1995. Year-to-date 1995 ceded premiums written were reduced by $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 in the second quarter of 1995. Excluding the 1995 return premiums, ceded premiums written for the first nine months of 1996 increased 31% from the corresponding period of 1995 primarily due to increased gross premiums written. Net premiums written for the third quarter of 1996 were $57.8 million, an increase of 60% from the $36.2 million written in the third quarter of 1995. Net premiums written for the first nine months of 1996 were $146.8 million, versus $115.8 million written in the first nine months of 1995, a 27% increase. Net premiums earned for the third quarter of 1996 were $33.7 million, an increase of 29% from the $26.2 million earned in the third quarter of 1995. This increase was primarily the result of higher premiums earned from refundings and calls in the third quarter of 1996 and the growth in premiums earned from the underlying book of business during the period. Net premiums earned for the third quarter of 1996 included $7.1 million from refundings, calls and other accelerations (which had a net income per common share effect of $0.12) compared to the third quarter of 1995, which included $3.2 million of net premiums earned from refundings, calls and other accelerations (which had a net income per common share effect of $0.05). Net premiums earned for the first nine months of 1996 were $101.6 million, an increase of 30% from the $78.3 million earned in the first nine months of 1995. Net investment income for the third quarter of 1996 was $36.9 million, an increase of 11% from $33.2 million in the third 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 nine months of 1996 was $107.2 million, an increase of 10% from $97.2 million in the first nine months of 1995. AMBAC Indemnity's investments in tax-exempt securities Tax-exempt security An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district. were 76% of the total market value of the portfolio as of September 30, 1996, as compared to 75% at September 30, 1995. 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 third quarter of 1996 were $8.6 million, an increase of 5% from $8.2 million in the third quarter of 1995. This increase was primarily the result of higher gross underwriting expenses and increased amortization of deferred acquisition costs. Underwriting and operating expenses for the first nine months of 1996 were $27.7 million, an increase of 9% from $25.4 million in the first nine 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 for the third quarter of 1996 was $1.1 million, versus $0.9 million in the third quarter of 1995. Financial services revenues for the third quarter of 1996 were $3.9 million, versus $2.6 million in the third quarter of 1995. The increase was primarily due to revenues on interest rate swaps during the third quarter of 1996. Financial services expenses for the third quarter of 1996 were $2.8 million versus $1.7 million in the third 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, as well as increased operating expenses at each of the financial services traditional subsidiaries. Financial services operating income for the first nine months of 1996 was $8.7 million on revenues of $16.0 million and expenses of $7.3 million, as compared to operating income of $1.7 million on revenues of $7.2 million and expenses of $5.5 million for the corresponding period in 1995. Corporate Items Interest expense for the third quarter of 1996 was $5.2 million, a decrease of 4% from $5.4 million in the third quarter of 1995. Other income (deductions) increased to $2.2 million in the third quarter of 1996 from $0.5 million in the comparable period of 1995 due to additional investment income generated by the holding company. Income taxes for the third quarter of 1996 were at an effective rate of 19.9%, versus 24.4% in 1995. The Company's effective income tax rate was higher in the third quarter of 1995 primarily due to the $19.1 million realized gain on the sale of HCIA stock during that quarter. The effective income tax rate for the first nine months of 1996 was 27.5%, compared to 21.0% for the comparable period of 1995. This increase was primarily due to the realized gain from the sale of HCIA stock in the second quarter of 1996. Balance Sheet Analysis Total assets as of September 30, 1996 were $5.73 billion, an increase of 8% from $5.31 billion at December 31, 1995. This increase was primarily due to continued growth of the Company's financial guarantee insurance and financial services operations and the sale of HCIA in the second quarter of 1996, partially offset by a decline in market value of the investment portfolio resulting from the increase in interest rates during the nine month period ended September 30, 1996. As of September 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 $1.54 billion, an increase of 10% from year end 1995. This increase is primarily due to the Company's 1996 year-to-date operating results, including 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 10% to $43.94 at September 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 )(2) per common share increased 6% to $60.05 from $56.47 at December 31, 1995. 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 announced that it has increased the regular quarterly cash dividend by 10% from $0.15 to $0.165 per share of common stock. The dividend is payable on December 4, 1996 to stockholders of record on November November: see month. 11, 1996. 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, Fitch Investors Service Fitch Investors Service A financial services company best known for the bond ratings it provides investors. , L.P. and Nippon Nippon (nĭp`ŏn, nĭpŏn`), name for Japan, derived from Dai Nippon, meaning Great Japan. The expression comes from the Chinese ideograph for the place where the sun comes from, or Land of the Rising Sun. Investors Service, Inc. (1) Core earnings and operating earnings are not substitutes 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 but are important measures used by management, equity analysts and investors to measure the financial results of the Company. (2) Adjusted book value (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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , is used by management, equity analysts and investors as a 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 af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. effect of: the net unearned premium reserve; deferred acquisition costs; the present value of estimated 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. -0-
AMBAC Inc. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For The Periods Ended September 30, 1996 and 1995
(Dollars in Thousands Except Common Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- --------------------
1996 1995 1996 1995
--------------------- --------------------
Financial guarantee
insurance operations:
Gross prems. written $67,613 $43,531 $176,015 $120,129
Ceded prems. written (9,813) (7,369) (29,261) (4,314)
------- ------- -------- -------
Net prems. written 57,800 36,162 146,754 115,815
Incr. in unearned prem. (24,055) (9,929) (45,171) (37,518)
------- ------- ------- -------
Net prems. earned 33,745 26,233 101,583 78,297
Net investment income 36,887 33,192 107,212 97,239
Net realized losses (5,381) (2,455) (25,125) (9,331)
Other income 1,305 1,498 4,933 4,687
------- ------- ------- -------
Tot fin. guar. ins. rev. 66,556 58,468 188,603 170,892
------- ------- ------- -------
Losses & loss
adjustment expenses 1,301 841 3,811 2,210
Underwriting & oprtg. exp. 8,646 8,208 27,745 25,383
------- ------- ------- -------
Tot fin. guar. ins. exp. 9,947 9,049 31,556 27,593
------- ------- ------- -------
Financial guarantee
ins. operating income 56,609 49,419 157,047 143,299
Financial services
operating income 1,133 935 8,745 1,710
Equity in income of
affiliate - 868 627 2,961
Interest expense (5,248) (5,417) (15,673) (15,625)
Other inc. (deductions),net 2,191 545 3,110 109
Other net realized gains - 19,103 155,613 19,103
------- ------- ------- -------
Income bef. inc. taxes 54,685 65,453 309,469 151,557
------- ------- ------- -------
Income tax expense:
Current taxes 9,994 13,355 89,907 24,585
Deferred taxes 863 2,613 (4,766) 7,201
------- ------- ------- -------
Total income taxes 10,857 15,968 85,141 31,786
------- ------- ------- -------
Net income $43,828 $49,485 $224,328 $119,771
======== ======= ======== ========
Per share amounts -
Net income per common share $1.26 $1.41 $6.42 $3.41
===== ===== ===== =====
Weighted average no. of
common shs. outstanding 34,905,558 35,130,021 34,958,306 35,108,662
========== ========== ========== ==========
AMBAC Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, 1996 and December 31, 1995
(Dollars in Thousands Except Common Share Data)
September 30, December 31,
1996 1995
----------- ------------
(unaudited)
ASSETS
Investments:
Bonds, at fair value
(amortized cost of $4,846,229 in 1996
and $4,082,791 in 1995) $4,909,604 $4,264,904
Short-term investments, at cost
(approximates fair value) 179,252 176,689
----------- -----------
Total investments 5,088,856 4,441,593
Cash 13,307 12,167
Sec. purchased under agreements to resell 217,055 240,280
Receivable for municipal investment contracts - 204,797
Receivable for securities 23,049 14,523
Investment in affiliates - 45,019
Deferred acquisition costs 90,022 82,620
Prepaid reinsurance 166,588 153,372
Other assets 65,050 58,538
----------- -----------
Total assets $5,726,807 $5,309,279
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Unearned premiums $961,413 $903,026
Losses and loss adjustment expenses 60,170 65,996
Ceded reinsurance balances payable 11,280 14,654
Obligations under municipal investment
contracts 2,389,271 2,185,746
Obligations under municipal investment
repurchase contracts 288,014 241,112
Deferred income taxes 54,785 103,697
Current income taxes 31,013 5,125
Debentures 223,782 223,732
Accrued interest payable 40,346 25,494
Accounts payable and other liabilities 50,262 44,578
Payable for securities 80,736 92,131
----------- -----------
Total liabilities 4,191,072 3,905,291
----------- -----------
Stockholders' equity:
Preferred stock - -
Common stock, Class A - -
Common stock 353 353
Additional paid-in capital 493,917 492,495
Unrealized gains on investments, net of tax 33,013 102,470
Retained earnings 1,027,317 819,479
Common stock held in treasury at cost (18,865) (10,809)
----------- -----------
Total stockholders' equity 1,535,735 1,403,988
----------- -----------
Total liabilities and stockholders' equity $5,726,807 $5,309,279
=========== ===========
Number of common shares outstanding
(net of treasury shares) 34,952,571 35,063,573
=========== ===========
Book value per common share $43.94 $40.04
=========== ===========
Adjusted book value per common share $60.05 $56.47
=========== ===========
AMBAC Inc. and Subsidiaries
Components of Core Earnings
(Unaudited)
For The Periods Ended September 30, 1996 and 1995
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
1996 1995 1996 1995
------------------ ------------------
Net income $43,828 $49,485 $224,328 $119,771
Adjustments:
Net realized (gains) losses 3,495 (10,281) (84,336) (5,651)
------- ------- ------- --------
Operating earnings 47,323 39,204 139,992 114,120
Refundings, calls and
other accelerations (4,028) (1,881) (14,264) (6,751)
------- ------- ------- --------
Core earnings $43,295 $37,323 $125,728 $107,369
======= ======= ======= ========
AMBAC Inc. and Subsidiaries
Components of Adjusted Book Value Per Share (1)
September 30, 1996 and December 31, 1995
September 30, December 31,
1996 1995
------------ ------------
(unaudited)
Book value (2) $43.94 $40.04
After-tax value of:
Net unearned premium reserve less
deferred acquisition costs 13.10 12.35
Present value of installment premiums 2.55 2.05
Unrealized gain on investment in HCIA - 2.77
Unrealized gain (loss) on investment
contract liabilities 0.46 (0.74)
------ ------
Adjusted book value (2) $60.05 $56.47
====== ======
(1) Numbers may not add due to rounding.
(2) Includes unrealized gains on investments, net of tax of $0.95
and $2.92 as of September 30, 1996 and December 31, 1995,
respectively.
AMBAC Indemnity Corporation
Selected Statutory Data
September 30, 1996 and December 31, 1995
(Dollars in Thousands, Except Ratios)
September 30, December 31,
1996 1995
----------- ------------
(unaudited)
Balance Sheet:
Contingency reserve $547,939 $495,793
Capital and surplus 870,392 862,976
---------- ----------
Qualified statutory capital 1,418,331 1,358,769
Unearned premium reserve 969,011 904,873
Losses and loss adjustment
expenses 23,311 39,249
---------- ----------
Policyholders' reserves 2,410,653 2,302,891
Present value of installment premiums 137,244 110,000
Third party capital support (1) 300,000 300,000
---------- ----------
Total $2,847,897 $2,712,891
Net insurance in force $215,354,067 $199,078,405
Capital ratio (2) 152:1 147:1
Financial resources ratio (3) 76:1 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 present value of installment premiums.
CONTACT: AMBAC Inc. 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 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 Website: http://www.ambac.com |
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