Ambac financial reports Impact of material developments
(RTTNews) – Ambac Financial Group, Inc. (AMBC) said its subsidiary, Ambac Assurance Corporation or AAC, has provided updates regarding the implementation of the restructuring of a significant portion of its exposure in Puerto Rico. and the estimated impact of recent litigation developments on its recoverable warranty representation and subrogation. Both of these developments are expected to have a significant effect on the company’s consolidated financial results in the first quarter.
Ambac is expected to record a gain in the order of $210-250 million from the restructuring of a significant portion of AAC’s remaining exposures in Puerto Rico. Management estimates the estimated reduction in AAFC’s estimated R&W subrogation recoveries to be between $175 and $205 million.
Separately, Ambac Financial Group, Inc. said its board of directors has approved a stock buyback program, under which the company can opportunistically repurchase up to $20 million of common stock from the company at the discretion of management during the period ending March 31, 2024.
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