Ambac Financial Q4 Profit Soars - Quick Facts

(RTTNews) - Ambac Financial Group Inc. (AMBC) Monday said fourth-quarter attributable net income surged to $453.6 million, or $9.73 per share from $68.6 million, or $1.49 per share, in the fourth quarter of 2013.

Operating earnings were $10.22 per share, while it totaled $6.34 per share in the fourth quarter of 2013. On average, three analysts polled by Thomson Reuters expected earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Net premiums earned dropped to $34.0 million from $84.5 million in the prior year, amid the runoff of the insured portfolio via transaction terminations, calls and scheduled maturities. Analysts expected revenues of $144.6 million.

Nader Tavakoli, Interim President and CEO, said, "During the quarter, our gross loss reserves significantly improved, decreasing by 31% sequentially from $5.5 billion to $3.8 billion. This decrease reflected the impact of our successful pay-down of Ambac Assurance's deferred obligations by a further $1.1 billion, benefits in most sectors throughout the insured portfolio and an increase in our estimated R&W subrogation recoveries."