AMBAC FINANCIAL GROUP INC
For the period ended Dec 31, 2024. Filed Mar 6, 2025.
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FY2024 · Filed Mar 6, 2025
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Investments and Investment Policy
As of December 31, 2024, the consolidated investments of Ambac's continuing operations had an aggregate fair value of approximately $312,915 thousand. Investments are primarily managed by third party investment management firms overseen internally. All investments are made in accordance with the general objectives, policies, and guidelines for investments approved by the Board of Directors of the applicable subsidiary. These policies and guidelines include liquidity, credit quality, diversification and duration objectives and are periodically reviewed and revised as appropriate.
As of December 31, 2024, the Everspan group investment portfolio had an aggregate fair value of approximately $192,747 thousand. The investment objective is to achieve the highest risk-adjusted after-tax return on a diversified investment portfolio consistent with the respective company's risk tolerance while employing active asset/liability management practices to satisfy all operating and strategic liquidity needs. In addition to internal investment policies and guidelines, the investment portfolio of each company is subject to limits on the types and quality of investments imposed by applicable insurance laws and regulations of the jurisdictions in which it is licensed. The Board of Directors of each respective subsidiary approves any changes to the respective investment policies.
As of December 31, 2024, AFG (parent company only, excluding investments in subsidiaries) investment portfolio had an aggregate carrying value of approximately $92,556 thousand, including $64,439 thousand of short-term investments carried at fair value. The primary investment objective is to preserve capital for strategic uses while maximizing income. The investment portfolio is subject to internal investment guidelines. Such guidelines set forth minimum credit rating requirements and credit risk concentration limits.
As of December 31, 2024, the Insurance Distribution investment portfolio had an aggregate fair value of approximately $27,611 thousand, primarily consisting of money market funds.
The following table provide certain information concerning the consolidated investments of Ambac:
| 2024 | 2023 | |||
|---|---|---|---|---|
| Investment Category($ in thousands)December 31, | CarryingValue | WeightedAverageYield (1) | CarryingValue | WeightedAverageYield (1) |
| Corporate securities | $89,192 | 3.3% | $87,991 | 3.3% |
| U.S. government obligations | 40,995 | 3.3% | 38,522 | 2.8% |
| Municipal obligations | 14,083 | 3.1% | 8,711 | 2.0% |
| Asset-backed securities | 8,203 | 4.9% | — | —% |
| Residential mortgage-backed securities | 2,446 | 5.0% | — | —% |
| Commercial mortgage-backed securities | 2,101 | 5.8% | — | —% |
| Short-term investments | 127,601 | 3.7% | 200,510 | 5.3% |
| Total fixed maturity-available-for-sale | 284,621 | 3.5% | 335,734 | 4.4% |
| Other investments (2) | 28,294 | —% | 18,317 | —% |
| Total | $312,915 | 3.5% | $354,051 | 4.4% |
(1) Yields are stated on a pre-tax basis, based on average amortized cost for both long and short term fixed-maturity investments.
(2) Other investments consist of equity interests in development stage insurance MGA's and pooled investment funds. Refer to Note 6. Investments of the Consolidated Financial Statements included in Part II, Item 8 in this Annual Report on Form 10-K for further information about Other investments.
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