Ambac Financial Sells Guaranty Business for $420 Million

By Tamara Parker • Wednesday, June 05 15:27 • Permanent Link

Ambac Financial Group, Inc. has announced the sale of its legacy financial guarantee business, Ambac Assurance Corporation and Ambac UK, to funds managed by Oaktree Capital Management, L.P. for $420 million in cash. Additionally, Oaktree will receive warrants to acquire up to 9.9% of Ambac common stock at a strike price of $18.50.

This move marks the final step in Ambac's transformation into a specialty property and casualty insurance platform, as stated by Ambac President and CEO Claude LeBlanc. The transaction's closing is subject to customary conditions, including regulatory approvals in the U.S. and U.K. and approval by Ambac's shareholders, and is expected to take place in the fourth quarter of 2024 or first quarter of 2025.

In the three years since Ambac announced its vision and strategy to transform into a specialty property and casualty insurance platform, significant progress has been made. The company is now focused solely on building a profitable P&C platform that will continue to deliver long-term value for its shareholders.

The conference call for investors, led by Ambac CEO Claude LeBlanc and CFO David Trick, is scheduled for Wednesday, June 5, 2024, at 8:30 a.m. ET.

Ambac's common stock trades on the New York Stock Exchange under the symbol "AMBC". The company is dedicated to providing timely and accurate information to the investing public, consistent with its legal and regulatory obligations.

These developments signal a major shift in Ambac's business focus and strategy, marking a significant milestone in the company's evolution. Today the company's shares have moved -19.6% to a price of $13.86. For the full picture, make sure to review Ambac Financial's 8-K report.

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