Ambac Financial Group has reported a net loss of $392.2m or $1.36 per share in the first quarter of 2009, compared to a net loss of $1.66 billion or $11.69 per share in the first quarter of 2008.
Net premiums earned for the first quarter of 2009 were $196.8m, up 5%, compared to $186.9m in the first quarter of 2008. Normal earned premiums amounted to $155.8m in the first quarter 2009, compared to $172.9m in the first quarter 2008.
According to the company, net investment income excluding variable interest entities for the first quarter of 2009 was $97.5m, representing a decrease of 19% from $120m in the comparable period of 2008. The decrease was primarily due to lower invested assets driven by reductions in the portfolio to pay commutations on CDO of ABS transactions and RMBS claim payments, partially offset by $1.3 billion in funds received via the capital raise in March 2008, $800m from the issuance of AAC preferred stock in December 2008 and January 2009.
avid Wallis, president and CEO at Ambac, said: The credit environment remains adverse, although perhaps the rate of degradation is slowing. Looking forward, I believe that the resilience of our business model combined with the efforts of our entire staff positions us well in relation to the ultimate goal of restoring value for our key stakeholders.
