Ambac Financial Group (AMBCW) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $94.69 million, or $ 2.09 a share in the quarter, against a net profit of $386.98 million, or $8.56 a share in the last year period. On an adjusted basis, net loss for the quarter stood at $12.70 million, or $0.28 a share. On an adjusted basis, loss per share was at $0.28 for the quarter.
Revenue during the quarter surged 39.10 percent to $237.49 million from $170.72 million in the previous year period. Net premium earned for the quarter dropped 56.43 percent or $64.60 million to $49.87 million.
Benefits, losses and expenses for the quarter were at $323.55 million, or 648.82 percent of premium earned from $224.85 million or 196.44 percent of premium earned in the last year period. Operating loss for the quarter was $86.06 million, compared with an operating income of $395.58 million in the previous year period.
Net investment income was at $90.87 million for the quarter, up 41.20 percent or $26.51 million from year-ago period. The company has recorded a gain on investments of $10.90 million in the quarter compared with a loss of $12.79 million for the previous year period.
Commenting on Ambac's fourth quarter 2016 results, Claude LeBlanc, president and chief executive officer, said, "Our fourth quarter results were impacted by headwinds including the effect of higher interest rates on the RMBS and student loan insured portfolios, and an increase in our public finance reserves, which was primarily related to the evolving situation in Puerto Rico. Despite these headwinds, results for the full year 2016 were positive and as a result of our strong income generation, Ambac is expected to receive $28.7 million in tolling payments from AAC in May 2017 under the company's tax-sharing agreement."
Liabilities outpace assets growthTotal assets increased 139.80 percent or $13,196.13 million to $22,635.70 million on Dec. 31, 2016. On the other hand, total liabilities were at $20,657.68 million as on Dec. 31, 2016, up 175.07 percent or $13,147.73 million from year-ago. Return on assets was negative at 0.28 percent in the quarter against a positive 4.42 percent in the last year period. Return on equity was negative at 4.79 percent in the quarter against a positive 19.76 percent in the last year period.
Investments move upInvestments stood at $9,280.93 million as on Dec. 31, 2016, up 11.57 percent or $962.66 million from year-ago. Meanwhile, yield on investments went up 21 basis points to 0.98 percent in the quarter. Liability for future policy benefits, unpaid claims and claims adjustment expense was at $4,380.77 million as on Dec. 31, 2016, up 7.16 percent or $292.66 million from year-ago.
Total debt was at $12,352.70 million as on Dec. 31, 2016, down 8.86 percent or $1,200.57 million from year-ago. Shareholders equity stood at $1,978.02 million as on Dec. 31, 2016, up 1 percent or $19.68 million from year-ago. As a result, debt to equity ratio went down 68 basis points to 6.24 percent in the quarter from 6.92 percent in the last year period.
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