Ambac Financial Group, Inc. Announces First Quarter Net Loss of $1,660.3 Million.
Business Wire › April 23, 2008
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Ambac Financial Group, Inc. Announces First Quarter Net Loss of $1,660.3 Million.
First Quarter Net Loss Per Share of $11.69 Reflects Mortgage-related Losses
NEW YORK -- Ambac Financial Group, Inc. (NYSE: ABK) (Ambac) today announced a first quarter 2008 net loss of $1,660.3 million, or a net loss of $11.69 on a per share basis. This compares to first quarter 2007 net income of $213.3 million, or net income per diluted share of $2.02. The decrease is primarily due to non-cash, mark-to-market losses on credit derivative exposures amounting to $1,725.2 million in the first quarter 2008 driven by the continued disruption in the global credit markets impacting the fair value of Ambac's derivatives exposures during the quarter. The decrease was also caused in part by the current quarter's loss provision on Ambac's financial guarantee direct exposures to mortgage-related securities which amounted to $1,042.8 million, as well as by other than temporary impairment charges on certain investment securities within the financial services investment portfolio. Table I summarizes the pre-tax charges recorded during the first quarter 2008 related to direct and indirect exposure to residential mortgage securities. [TABLE OMITTED] (a) Amount includes $940.4 million, pre-tax, of estimated...See the full content of this document
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