Overview

* Ambac Q2 total revenue rises 8% to $55 mln, driven by Beat acquisition

* Net loss from continuing operations widens to $21 mln due to higher expenses

* Wisconsin OCI recommends approval for sale of Legacy Financial Guarantee business

Outlook

* Ambac sees expanding pipeline of start-up and M&A opportunities

* Company anticipates stabilizing market conditions in Employer Stop Loss segment

* Ambac expects sale of Legacy Financial Guarantee business to boost P&C growth

Result Drivers

* BEAT ACQUISITION - Revenue growth driven by Beat Capital acquisition, offsetting reductions in earned premium at Everspan

* P&C PREMIUM INCREASE - Specialty P&C premium production surged 110%, attributed to scaling of business and Beat acquisition

* ORGANIC GROWTH CHALLENGES - Organic growth negatively impacted by Employer Stop Loss

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Gross $33.04

Written mln

Premium

Q2 Miss -$10.55 -$10.10

Adjusted mln mln (1

Net Analyst)

Income

Q2 Net -$72.70

Income mln

Q2 $4.70

EBITDA mln

Q2 -$10.17

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the property & casualty insurance peer group is "buy"

* Wall Street's median 12-month price target for Ambac Financial Group Inc ( AMBC ) is $12.50, about 31.7% above its August 6 closing price of $8.54

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)