Ambac’s Everspan has reportedly produced a 98.4% combined ratio in Q1 of 2024, much improved compared to the 121.9% disclosed in the opening quarter of 2023.
At the same time, Everspan’s gross premium written (GPW) and net premium written (NPW) grew substantially in Q1 of 2024 as it continued to add new programs and existing programs scale.
Net premiums earned (NPE) growth also outpaced that of NPW as a result of the impact of assumed reinsurance transactions closed in the second half of 2023.
As per Ambac, Everspan’s pretax income in Q1 of 2024 was $1.8 million, marking a massive 333% improvement over Q1 of 2023.
Turning now to Ambac’s Legacy Financial Guarantee segment, pretax income was $24.8 million, up 177% over the same period last year. This segment’s net premiums earned in Q1 of 2024 were $7.5 million, up slightly from $6.9 million in the opening quarter of 2023.
According to Ambac, this increase was a result of the favourable impact of proactive de-risking transactions in the quarter on both normal and accelerated premiums earned more than offsetting the impact of insured portfolio run-off.
Meanwhile, net investment income in the Legacy Financial Guarantee segment was $38 million, up 21.9% over Q1 of 2023 on higher yields and gains on securities classified as trading.
Claude LeBlanc, President and Chief Executive Officer, commented, “Ambac had a solid start to 2024, with all three business segments generating positive net income for the quarter.
“Our specialty P&C platform continues to deliver on its vision to be the premier destination for MGAs and program partners, as evidenced by the 45% growth in premium production over the prior year. This growth has not been at the expense of disciplined underwriting.”
