Slides
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Quarterly Financial Summary and Operating Supplement Third Quarter 2025
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2 In this presentation, we have included statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “plan,” “believe,” “anticipate,” “intend,” “planned,” “potential” and similar expressions, or future or conditional verbs such as “will,” “should,” “would,” “could,” and “may,” or the negative of those expressions or verbs, identify forward-looking statements. We caution readers that these statements are not guarantees of future performance. Forward-looking statements are not historical facts, but instead represent only our beliefs regarding future events, which may by their nature be inherently uncertain and some of which may be outside our control. These statements may relate to plans and objectives with respect to the future, among other things which may change. We are alerting you to the possibility that our actual results may differ, possibly materially, from the expected objectives or anticipated results that may be suggested, expressed or implied by these forward-looking statements. Important factors that could cause our results to differ, possibly materially, from those indicated in the forward-looking statements include, among others, those discussed under “Risk Factors” Any or all of management’s forward-looking statements here or in other publications may turn out to be incorrect and are based on management’s current belief or opinions. Ambac Financial Group’s (“AFG”) and its subsidiaries’ (collectively, “Ambac” or the “Company”) actual results may vary materially, and there are no guarantees about the performance of Ambac’s securities. Among events, risks, uncertainties or factors that could cause actual results to differ materially are: (1) the high degree of volatility in the price of AFG’s common stock; (2) uncertainty concerning the Company’s ability to achieve value for holders of its securities from the specialty property and casualty insurance business, the insurance distribution business, or related businesses; (3) greater than expected underwriting losses in the Company’s specialty property and casualty insurance business resulting in inadequacy of loss and loss expense reserves and the possibility that changes in reserves may result in further volatility of earnings or financial results; (4) credit risk throughout Ambac’s business, including but not limited to issuers of securities in our investment portfolios, and exposures to reinsurers; (5) our inability to achieve investment objectives; (6) the Company’s inability to generate the significant amount of cash needed to service its debt and financial obligations, and its inability to refinance its indebtedness; (7) the Company’s indebtedness could adversely affect the Company’s financial condition and operating flexibility; (8) Ambac may not be able to obtain financing, refinance its outstanding indebtedness, or raise capital on acceptable terms or at all due to its outstanding indebtedness and financial condition; (9) failure of specialty insurance program partners to properly market, underwrite or administer policies; (10) inability to obtain reinsurance coverage on economic terms; (11) loss of key relationships for production of business in specialty property and casualty and insurance distribution businesses or the inability to secure such additional relationships to produce expected results; (12) the impact of catastrophic public health, environmental or natural events, or global or regional conflicts; (13) the risk that Ambac’s risk management policies and practices do not anticipate certain risks and/or the magnitude of potential for loss; (14) restrictive covenants in agreements and instruments that impair Ambac’s ability to pursue or achieve its business strategies; (15) disagreements or disputes with Ambac's insurance regulators; (16) risks attendant to the change in composition of securities in Ambac’s investment portfolio; (17) adverse impacts from changes in prevailing interest rates; (18) events or circumstances that result in the impairment of our intangible assets and/or goodwill that was recorded in connection with Ambac’s acquisitions; (19) the risk of litigation, regulatory inquiries, investigations, claims or proceedings, and the risk of adverse outcomes in connection therewith; (20) the Company’s ability to adapt to the rapid pace of regulatory change; (21) actions of stakeholders whose interests are not aligned with broader interests of Ambac's stockholders; (22) system security risks, data protection breaches and cyber attacks; (23) failures in services or products provided by third parties; (24) political developments that disrupt the economies where the Company has insured exposures; (25) our inability to attract and retain qualified executives, senior managers and other employees, or the loss of such personnel; (26) fluctuations in foreign currency exchange rates; (27) failure to realize our business expansion plans or failure of such plans to create value; (28) greater competition for our specialty property and casualty insurance business and/or our insurance distribution business; (29) loss or lowering of the AM Best rating for our property and casualty insurance company subsidiaries; (30) disintermediation within the insurance industry or greater competition from technology-based insurance solutions or non-traditional insurance markets; (31) changes in law or in the functioning of the healthcare market that impair the business model of our accident and health managing general underwriter; (32) difficulties in integrating acquired businesses into our business; and (33) other risks and uncertainties that have not been identified at this time. Forward Looking Statement
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3 To be the leading MGA specialty insurance platform, delivering innovative solutions through expertise, technology and trusted partnerships. The new Ambac is a pure-play specialty insurance platform. Our Vision The New Ambac
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4 Closed on the sale of the Legacy Financial Guarantee business on September 29, 2025 for $420 million in cash Operating Highlights Closed the acquisition of ArmadaCare, a specialty A&H MGA, for $250 million in cash and new debt, on October 31, 2025 Converted Ambac's investment in Pivix Specialty Insurance Services, Inc. ("Pivix") to a controlling equity stake on September 1, 2025 Implementing corporate expense reduction measures Repurchased 3,142,554 of shares in the open market during October 2025 representing 6.5% of Basic weighted average shares outstanding 21 3 54 6 Launched 1889 Specialty, an MGA specializing in management liability and professional lines for financial institutions, in October 2025
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5 Premium production was up 32% to $343 million • Insurance distribution premiums produced were up 69% to $245 million • Everspan gross premium written of $97 million were down 16% due to the non- renewal of certain programs in 2024 Third Quarter Financial Highlights (3Q25 vs. 3Q24) Net Income (Loss) to Shareholders from Continuing Operations of $(31.7) million and $(18.1) million Consolidated Adjusted Net Income (Loss) to Shareholders from Continuing Operations of $(10.0) million vs. $(1.7) million Consolidated Adjusted EBITDA to Shareholders of $(2.9) million vs. $1.9 million Insurance Distribution Revenue was up 80% Organic growth was 40% Net Income to Shareholders was $(5.4) million vs $(5.3) million Adjusted Net Income (Loss) to Shareholders was $(0.8) million vs $(1.0) million Adjusted EBITDA to Shareholders was $6.0 million vs. $2.1 million Insurance DistributionConsolidated FinancialsPremium Production 1. Changes in performance compared to third quarter of 2024
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6 1. Refer to slide 44 for EBITDA reconciliation to Net income (loss) and slide 47 for Adjusted EBITDA reconciliation Three Months Ended September 30, 2025 2024 ($ in millions) Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Gross premiums written $ 97.2 $ 97.2 $ 115.2 $ 115.2 Net premiums written 17.8 17.8 32.8 32.8 Total revenues 22.8 $ 43.2 $ 0.6 66.6 40.1 $ 24.0 $ 5.9 70.0 Total expenses 22.8 49.0 26.9 98.7 31.2 31.9 27.6 90.8 Pretax income (loss) — (5.7) (26.3) (32.1) 8.9 (7.9) (21.7) (20.8) Net income (loss) to attributable to shareholders (1) (0.1) (5.4) (26.3) (31.7) 8.0 (5.3) (20.8) (18.1) EBITDA(1) $ — $ 9.9 $ (26.0) $ (16.1) $ 8.9 $ 2.4 $ (21.3) $ (9.9) EBITDA attributable to shareholders(1) $ — $ 5.9 $ (26.0) $ (20.1) $ 8.9 $ 1.9 $ (21.3) $ (10.5) Adjusted EBITDA(1) $ — $ 10.0 $ (8.9) $ 1.1 $ 1.6 $ 2.7 $ (1.8) $ 2.5 Adjusted EBITDA attributable to shareholders (1) $ — $ 6.0 $ (8.9) $ (2.9) $ 1.6 $ 2.1 $ (1.8) $ 1.9 Ambac’s Operating Segment Highlights (Third Quarter)
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7 1. Refer to slide 45 for EBITDA reconciliation to Net income (loss) and slide 48 for Adjusted EBITDA reconciliation Nine Months Ended September 30, 2025 2024 ($ in millions) Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Gross premiums written $ 280.3 $ 280.3 $ 322.8 $ 322.8 Net premiums written 51.0 51.0 91.3 91.3 Total revenues 65.3 $ 117.3 $ 1.7 184.3 101.5 $ 55.2 $ 13.9 170.6 Total expenses 63.3 135.4 55.8 254.5 91.8 58.0 59.5 209.3 Pretax income (loss) 2.1 (18.2) (54.1) (70.2) 9.7 (2.9) (45.5) (38.7) Net income (loss) attributable to shareholders (1) 1.8 (16.5) (53.7) (68.4) 8.6 (1.2) (44.5) (37.1) EBITDA(1) $ 2.1 $ 26.6 $ (53.0) $ (24.3) $ 9.7 $ 9.8 $ (44.1) $ (24.7) EBITDA attributable to shareholders $ 2.1 $ 15.5 $ (53.0) $ (35.4) $ 9.7 $ 7.9 $ (44.1) $ (26.6) Adjusted EBITDA $ 2.3 $ 26.6 $ (26.7) $ 2.3 $ 2.4 $ 10.1 $ (8.9) $ 3.6 Adjusted EBITDA attributable to shareholders (1) $ 2.3 $ 15.6 $ (26.7) $ (8.7) $ 2.4 $ 8.2 $ (8.9) $ 1.7 Ambac’s Operating Segment Highlights (YTD)
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Insurance Distribution Segment
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9 1. EBITDA is prior to the impact of noncontrolling interests, relating to subsidiaries where Ambac does not own 100%, of $(3.9) million the three months ended September 30, 2025. 2. Refer to slide 47 for Adjusted EBITDA reconciliation 3. EBITDA Margin calculated as EBITDA/Total (Segment) Revenue Cirrata Third Quarter Highlights: Insurance Distribution $145 $205 $231 $250 $245 A&H Specialty Auto Other professional Niche Specialty Risks Property Marine & Energy Professional D&O Reinsurance Surety Misc. Specialty 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 -$100 $0 $100 $200 $300 • Premium placed increased 69% to $245 million • Total revenue up 80% to $43 million over prior year • Organic growth of 40% • Net loss of $(5) million generating a margin of (10)% • Adjusted EBITDA of $10 million1,2 generating a margin1 of 23% • Adjusted EBITDA to shareholders of $6 million2,3 generating a margin3 of 14% Net Income (loss), EBITDA1,2 & Adjusted EBITDA ($ in millions) Net Income EBITDA Adjusted EBITDA 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 -$10 $0 $10 $20 Premium Placed by Line ($ in millions)
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10 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 Gross premiums placed by line of business: .................................................................................................................................. A&H ........................................................................................................................................................................................................... $ 29.0 $ 27.3 $ 45.8 $ 24.8 $ 24.4 $ 125.9 $ 130.6 $ 120.4 Specialty Auto .......................................................................................................................................................................................... 39.7 24.0 23.0 12.3 45.3 93.0 62.4 10.6 Other professional .................................................................................................................................................................................. 32.6 34.0 22.0 32.7 15.5 64.8 12.5 — Niche Specialty Risks ............................................................................................................................................................................. 37.9 40.9 32.7 33.9 22.3 56.2 — — Property .................................................................................................................................................................................................... 45.3 82.1 47.8 43.9 21.0 65.0 — — Marine & Energy ..................................................................................................................................................................................... 7.9 13.7 16.4 10.8 3.6 24.9 19.4 0.8 Professional D&O ................................................................................................................................................................................... 1.2 0.8 — 0.1 0.4 — 0.4 — — Reinsurance ............................................................................................................................................................................................. 7.1 13.4 17.9 7.9 2.1 10.0 — — Surety ....................................................................................................................................................................................................... 26.5 (1.7) 8.7 26.2 1.5 27.7 — — Misc. Specialty ........................................................................................................................................................................................ 18.0 15.4 16.2 11.9 9.2 25.4 5.7 3.6 Total ......................................................................................................................................................................................................... $ 245.4 $ 249.9 $ 230.6 $ 204.9 $ 144.9 $ 493.4 $ 230.6 $ 135.5 Commission income .................................................................................................................................................................................. $ 36.1 $ 30.3 $ 36.8 $ 38.0 $ 23.1 $ 92.0 $ 51.3 $ 30.7 Servicing and other fees ........................................................................................................................................................................... 4.9 4.5 5.0 4.1 2.3 6.4 — — Investment income .................................................................................................................................................................................... 0.4 0.3 0.4 0.4 0.3 0.8 0.1 — Other ............................................................................................................................................................................................................ 1.9 (2.1) (1.1) 1.6 (1.6) 0.1 0.2 0.7 Total revenues .......................................................................................................................................................................................... 43.2 33.0 41.0 44.1 24.0 99.2 51.5 31.4 Commission expense ................................................................................................................................................................................ 11.2 7.4 10.4 13.7 9.5 40.9 29.5 17.6 General and administrative expenses .................................................................................................................................................... 22.2 20.9 18.6 20.6 12.1 38.7 10.6 6.3 Total expenses included for EBITDA ................................................................................................................................................. 33.4 28.3 28.9 34.2 21.6 79.6 40.1 23.9 EBITDA ...................................................................................................................................................................................................... 9.9 4.7 12.1 9.8 2.4 19.6 11.5 7.5 EBITDA margin (1) ..................................................................................................................................................................................... 22.8 % 14.2 % 29.5 % 22.3 % 10.2 % 19.8 % 22.3 % 23.8 % Interest expense ........................................................................................................................................................................................ 6.2 5.6 5.5 5.6 3.7 9.4 — — Intangible amortization .............................................................................................................................................................................. 9.3 9.3 8.8 8.9 6.4 17.6 4.2 2.9 Depreciation ................................................................................................................................................................................................ 0.1 — 0.1 0.3 0.2 0.5 — — GAAP Pretax income (loss) .................................................................................................................................................................. (5.7) (10.2) (2.2) (5.0) (7.9) (7.8) 7.3 4.5 Pretax income margin (2) ........................................................................................................................................................................... (13.3) % (30.8) % (5.5) % (11.3) % (33.1) % (7.9) % 14.2 % 14.4 % Net income (loss) ..................................................................................................................................................................................... $ (4.5) $ (8.0) $ (1.7) $ (4.8) $ (7.1) $ (6.9) $ 7.1 $ 4.5 1. EBITDA Margin calculated as EBITDA/Total (Segment) Revenue 2. Pretax Income Margin calculated as GAAP Pretax Income/Total (Segment) Revenue Insurance Distribution Segment Quarterly Information
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11 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 Net income (loss) (Continuing Operations) .......................................................................................................................................... $ (4.5) (8.0) $ (1.7) $ (4.8) $ (7.1) $ (6.9) $ 7.1 $ 4.5 Adjustments: Add: Acquisition and integration related expenses ................................................................................................................................ — 0.4 — — — — — — Add: Intangible amortization ...................................................................................................................................................................... 9.3 9.3 8.8 8.9 6.4 17.6 4.2 2.9 Add: Equity-based compensation expense ............................................................................................................................................. 0.1 0.1 — — — — — — Add: Severance and restructuring expense ............................................................................................................................................ — — — — 0.2 0.2 — — Add: Other non-operating (income) losses ............................................................................................................................................. — (0.6) — — — — — — Adjusted net income (loss) before tax and NCI ................................................................................................................................... 4.9 1.2 7.0 4.1 (0.4) 11.0 11.3 7.4 Income tax effects .......................................................................................................................................................................................... (2.1) (1.9) — — — — — — Adjusted net income (loss) before NCI .................................................................................................................................................. 2.8 (0.7) 7.0 4.1 (0.4) 11.0 11.3 7.4 Net (income) loss attributable to noncontrolling interest .......................................................................................................................... (3.6) (2.3) (4.5) (4.5) (0.6) (6.4) (2.1) (1.5) Adjusted net income (loss) attributable to shareholders .................................................................................................................. $ (0.8) $ (3.0) $ 2.5 $ (0.4) $ (1.0) $ 4.5 $ 9.2 $ 6.0 Net income (loss) margin .......................................................................................................................................................................... (10.4) % (24.0) % (4.3) % (10.9) % (29.4) % (6.9) % 13.8 % 14.4 % Adjusted net income (loss) margin ........................................................................................................................................................ 6.5 % (2.1) % 17.2 % 9.3 % (1.6) % 11.1 % 21.9 % 23.7 % Adjusted net income (loss) attributable to shareholders margin .................................................................................................. (1.8) % (9.0) % 6.2 % (1.0) % (4.0) % 4.6 % 17.8 % 19.0 % Insurance Distribution Segment Quarterly Information (Continued)
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12 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 Net income (loss) (Continuing Operations) ........................................................................................................................................ $ (4.5) $ (8.0) $ (1.7) $ (4.8) $ (7.1) $ (6.9) $ 7.1 $ 4.5 Adjustments: .............................................................................................................................................................................................. Add: Interest expense ........................................................................................................................................................................... 6.2 5.6 5.5 5.6 3.7 9.4 — — Add: Income tax expense ..................................................................................................................................................................... (1.2) (2.2) (0.5) (0.2) (0.9) (0.9) 0.2 — Add: Depreciation ................................................................................................................................................................................... 0.1 — 0.1 0.3 0.2 0.5 — — Add: Intangible amortization ................................................................................................................................................................. 9.3 9.3 8.8 8.9 6.4 17.6 4.2 2.9 EBITDA ...................................................................................................................................................................................................... 9.9 4.7 12.1 9.8 2.4 19.6 11.5 7.5 Add: Impact of noncontrolling interests ................................................................................................................................................. (3.9) (2.2) (5.0) (4.5) (0.6) (6.4) (2.1) (1.5) EBITDA attributable to shareholders ................................................................................................................................................ 5.9 2.5 7.1 5.3 1.9 13.2 9.4 6.0 Net income margin ....................................................................................................................................................................................... (10.4) % (24.2) % (4.3) % (10.9) % (29.4) % (6.9) % 13.8 % 14.4 % Net income margin attributable to shareholders ..................................................................................................................................... (12.5) % (23.4) % (8.3) % (13.6) % (22.1) % (7.3) % 11.3 % 11.6 % EBITDA margin ............................................................................................................................................................................................. 22.8 % 14.2 % 29.5 % 22.3 % 10.1 % 19.8 % 22.3 % 23.8 % EBITDA margin attributable to shareholders ........................................................................................................................................... 13.7 % 7.6 % 17.2 % 12.0 % 7.8 % 13.3 % 18.2 % 19.1 % Add: Acquisition and integration related expenses .............................................................................................................................. — 0.4 — — — — — — Add: Equity-based compensation expense .......................................................................................................................................... 0.1 0.1 — — — — — — Add: Severance and restructuring expense .......................................................................................................................................... — — — — 0.2 0.2 — — Add: Other non-operating (income) losses ........................................................................................................................................... — (0.6) — — — — — — Adjusted EBITDA ....................................................................................................................................................................................... $ 10.0 $ 4.6 $ 12.1 $ 9.8 $ 2.7 $ 19.9 $ 11.5 $ 7.5 NCI impact .................................................................................................................................................................................................... $ (4.0) $ (2.1) $ (5.0) $ (4.5) $ (0.6) $ (6.4) $ — $ — Adjusted EBITDA attributable to shareholders ................................................................................................................................. 6.0 2.5 7.1 5.3 2.1 13.4 9.4 6.0 Adjusted EBITDA Margin ........................................................................................................................................................................... 23.0 % 13.9 % 29.5 % 22.3 % 11.1 % 20.0 % 22.3 % 23.8 % Adjusted EBITDA Margin attributable to shareholders ........................................................................................................................... 13.9 % 7.6 % 17.3 % 12.0 % 8.8 % 13.6 % 18.2 % 19.1 % Insurance Distribution Segment Quarterly Information (Continued)
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13 2024 • Acquires a 60% stake in Beat Capital Partners, a London-based MGA incubator • Launch of six (6) new startups 2025 YTD • Acquires ArmadaCare, a fully integrated specialty A&H MGA • Launched three (3) new startups 2021 • Launch of distribution strategy • Acquires an 80% stake in Xchange Benefits, an A&H MGA 2022 • Acquires an 85% stake in All Trans, a full-service commercial auto MGU • Acquires an 80% stake in Capacity Marine, an intermediary specializing in marine and international risk 2023 • Acquires an 80% stake in Riverton Insurance Agency, which offers niche professional liability insurance programs Insurance Distribution EBITDA Margin 19% 24% 22% 20% 27%(1) Ambac's Insurance Distribution business has delivered consistent growth 1. ProForma EBITDA margin for Insurance Distribution and ArmadaCare, before the impact of new management incentive plan $117 $135 $181 $493 $933 $148$26 $31 $52 $99 $161$136 $202 Insurance Distribution Premiums PlacedArmadaCare Premiums PlacedInsurance Distribution RevenueProForma Insurance Distribution Revenue 2021 2022 2023 2024 LTM 3Q 25 Build and Buy Strategy in Action 2024-Present2022-20242021-2022
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14 Property, Liability, Motor NA Property Accident & Health Multiline P&C Upstream / Downstream Energy Credit & Risk Transfer Solutions Energy / Property Professional Indemnity D&O & Credit Accident & Health Specialty Commercial Auto Professional Liability Marine Financial & Professional Lines Property, Liability Environmental Liability Excess & Surplus Lines Professional Liability Management & Professional Liability Commercial Property Accident & Health Energy / Property A Diversified MGA platform helping cushion the impact of market cycles United States 1. Acquired October 31, 2025 1 Specialty Distribution with a Global Reach London / Bermuda
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15 Company Overview • Founded in 2004 • Headquartered in Hunt Valley, MD • Fully integrated MGU nationally focused on delivering supplemental health and benefit products that primarily target c-suite executives and other key talent • In addition to being an MGU and Program manager, ArmadaCare is also a third-party claims administrator (TPA) and operates an ancillary business which provides clients a tool to help navigate the healthcare system Key Stats Highly Diversified Client Mix Concentration Mix by Industry $148M Annual Premiums in Force (APIF) – as of 9/30/25 8% ’22-’24 Premium CAGR 46% ’22-’24 Avg. EBITDA Margin(1) 109% January 2025 Premium Retention(2) Concentration Mix by Industry 1. Before the impact of new management incentive plan 2. Reflects January 2025 renewals as of 01/09/2025. Retention includes impact of rate changes 9% 8% 8% 8% 7% 6%5%5%4% 4% 36% Retail Financial Services Manufacturing Healthcare Services Construction Business Services/Consulting Technology Real Estate Food & Beverage Entertainment/Recreation Other ArmadaCare, a Market-Leading A&H MGA, Strengthens and Complements Ambac's Current MGA/MGU Capabilities
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16 Why We Like ArmadaCare Synergy Opportunities Differentiated Product & Service Offering Significant Barriers to Entry World-Class Service Complementary Product Offering ArmadaCare brings a differentiated product offering, further enhancing Ambac’s A&H portfolio Access to Distribution Relationships ArmadaCare’s network of 49,000 marketable brokers expand distribution and product suite Client Cross-Sell Complementary products and strong distribution relationships drive strong cross- sell opportunities with Ambac’s existing A&H portfolio ArmadaCare has Significant Synergy Potential 1 2 3 +
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17 Nine Months Ended September 30, 2025 Twelve Months Ended December 31, 2024 ($ in millions) Insurance Distribution ArmadaCare Other Adjustments ProForma(2) Insurance Distribution ArmadaCare Other Adjustments ProForma(2) Revenues: Commissions $ 103.2 $ 31.8 $ 135.0 $ 92.0 $ 36.7 $ 128.7 Servicing and other fees 14.3 1.6 15.9 6.4 2.1 8.5 Investment income 1.1 1.1 0.8 — 0.8 Other (1.3) 0.1 (1.3) 0.1 0.2 0.3 Total revenues $ 117.3 $ 33.4 $ 150.7 $ 99.2 $ 39.0 — $ 138.2 Expenses: Commissions $ 28.9 $ 1.9 30.8 40.9 2.1 43.0 Compensation expense 43.6 10.9 54.5 28.4 14.3 42.6 Non Compensation expense 18.1 4.2 22.3 10.4 5.3 15.7 Intangible amortization and depreciation (3) 27.6 7.8 35.4 18.1 10.6 28.7 Interest expense (4) 17.2 — (10.9) 6.3 9.4 — 0.1 9.5 Total expenses $ 135.4 $ 17.1 $ (3.1) $ 149.4 $ 107.0 $ 21.7 $ 10.7 $ 139.4 Pretax income (loss) (18.1) 16.3 3.1 1.3 (7.8) 17.3 (10.7) (1.2) Income tax expense (benefit) (3.9) — (3.9) (0.9) — (0.9) Net income (loss) $ (14.2) $ 16.3 $ 3.1 $ 5.2 $ (6.9) $ 17.3 $ (10.7) $ (0.3) Net (income) loss attributable to NCI (2.3) — (2.3) (0.4) — $ (0.4) Net income (loss) attributable to Ambac shareholders $ (16.5) $ 16.3 $ 3.1 $ 2.9 $ (7.2) $ 17.3 $ (10.7) $ (0.6) EBITDA $ 26.7 $ 16.3 $ — $ 43.0 $ 19.7 $ 17.3 $ — $ 37.0 EBITDA attributable to Ambac shareholders $ 15.6 16.3 — $ 31.7 $ 13.2 $ 17.3 $ — $ 30.5 Adjusted EBITDA $ 26.8 $ 16.3 — $ 43.1 $ 19.9 $ 17.3 $ — $ 37.2 Adjusted EBITDA attributable to Ambac shareholders $ 15.7 $ 16.3 — $ 32.0 $ 13.4 17.3 — 30.7 1. All financial results are unaudited 2. Excludes any estimated expense or revenue synergies 3. Intangible amortization for ArmadaCare is estimated and subject to change 4. Assumes AAC sale occurred prior to the acquisition of Beat and therefore no short-term borrowing to finance the Beat acquisition occurred and the acquisition of ArmadaCare and the related financing occurred on 1/1/24. ArmadaCare + Cirrata Historical ProForma(1) Armada Care + Cirrata Proforma Financial Statements as of September 30, 2025 and December 31, 2024
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18 Majority Third-Party Capacity, Long-Term, Scalable and Diversified 1. Includes all capacity providers, including managements’ interest in Lloyds Syndicates, excluding Ambac’s balance sheet Duration of Capacity Providers 5+ Years 4 Years 3 Years 1-2 Years —% 10% 20% 30% 40% 50% Capacity Sources (re)insurers Top 25 Global Reinsurers Pension/Private Equity Individuals/Names/Private Capital Cirrata has +1.5 Billion of Third-Party Capacity1 for 2025
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19 Historical Trends1 • The MGA market doubled in size between 2019-2024 supported by the strong growth of the Excess & Surplus (E&S) insurance market • Premium growth has been driven primarily by MGAs unaffiliated with an insurance carrier • In 2024, the U.S. market was estimated to have approximately 1,100 MGAs with 850 identified in statutory filings and another 250 estimated to fall below the filing threshold • Management-owned MGAs constitute 43% of the market, creating significant opportunity for M&A Premium by Affiliation1, 2 ($ in billions) ’24 Premium Market Share by Size of Nonaffiliated MGA1 U.S. MGA Breakdown by Ownership Structure1 Category 2019 2020 2021 2022 2023 2024 5YR CAGR Nonaffiliated 16.2 15.9 25.5 32.7 36.4 43 21.6% Affiliated 24.5 26.1 24.8 31.9 34.8 41.4 11.1% Crop 4.7 4.9 6.4 8.3 7.8 7.5 9.8% Total 45.4 46.9 56.7 72.9 79.1 91.8 15.1% Ambac’s Insurance Distribution business is uniquely positioned to capitalize on secular growth in the MGA and E&S Markets 1. Conning, Managing General Agents: Built for What’s Next 10 Largest MGAs, 20% MGAs Ranked 11-50, 27% Other MGAs, 53% Management Owned, 43% Private Equity Owned, 23% Other, 18% Broker Owned, 6% Insurer Owned, 9% Fragmented MGA Sector Presents Compelling Opportunity $82B $114B+ 2024 DPW U.S. MGA Market1 16% Average Annual Growth 43% Management Owned $91.8B 2024 DPW 15.4% YoY Growth 43% Management Owned
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Specialty Property and Casualty Segment
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21 Everspan: Specialty P&C Program Insurer • GPW $97 million down (16)% vs. 3Q2024 • GPW in 3Q2025 from affiliated MGAs of $1 million • 52% of 3Q2025 GPW is E&S lines • Loss ratio of 84.5% compared to 74.4% for 3Q2024 • 3Q2025 loss ratio includes 23.2% of prior accident year reserve development primarily related to programs non-renewed in 2024 • Combined ratio of 112.9% vs. 100.5% for 3Q2024 GPW by Line of Business Gross Premiums Written (GPW) and Number of Programs 3Q2025 3Q2024 19% 6% 32% 7% 13% 15% 8% Commercial auto liability Commercial auto physical damage General liability Excess liability Workers Compensation Non-standard auto Surety Professional Lines Other 11% 18% 27% 6% 14% 16% 7% 2% Commercial auto liability Commercial auto physical damage General liability Excess liability Workers Compensation Non-standard auto Surety Professional Lines Other (GPW in millions) (Program #) 24 27 26 24 25 Gross Premium Written Number of Programs 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 0 50 100 150 200 20 25
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22 $13 $146 $273 $383 $280 $3 $29 $80 $89 $51 19.6% 19.5% 29.2% 23.2% 18.2% Gross Net Net Premium Retention Ratio 2021 2022 2023 2024 YTD 2025 $— $80 $160 $240 $320 $400 $480 15% 18% 20% 23% 25% 28% 30% Gross and Net Premiums Written
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23 1. Expense ratio includes program fee revenue as a reduction to net acquisition costs 2. Total Net Loss Ratio is total net losses incurred (case + IBNR + ULAE) divided by net premiums earned 3. Combined Ratio is sum of expense ratio and total net loss ratio 331.9% 160.8% 147.8% 124.3% 121.9% 112.7% 106.5% 100.3% 98.4% 109.4% 100.5% 96.5% 102.1% 106.7% 112.9% Net Loss Ratio Expense Ratio Combined Ratio 1Q2022 2Q2022 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 2Q2025 3Q2025 —% 50.0% 100.0% 150.0% 200.0% 250.0% 300.0% 350.0% Historical Underwriting Ratios
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24 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 Gross written premiums by line of business: Commercial auto liability .................................................................................................................................................... $ 18.5 $ 31.3 $ 16.9 $ 9.9 $ 12.3 $ 78.2 $ 121.9 $ 117.2 Commercial auto physical damage .................................................................................................................................. — 0.1 0.7 0.4 0.4 1.5 12.1 12.6 General liability .................................................................................................................................................................... 6.0 5.7 9.9 22.8 20.2 77.8 27.1 6.0 Excess liability ..................................................................................................................................................................... 30.6 31.3 35.4 25.3 31.4 95.8 40.5 4.8 Workers Compensation ..................................................................................................................................................... 6.7 6.4 7.6 7.2 6.3 28.3 19.5 — Non-standard auto .............................................................................................................................................................. — — — (18.8) 16.0 20.2 20.1 — Surety .................................................................................................................................................................................. 12.6 4.9 2.8 2.0 18.1 34.8 26.3 4.4 Professional Lines .............................................................................................................................................................. 14.6 9.8 10.0 10.1 8.1 41.5 3.1 — Other ..................................................................................................................................................................................... 8.0 6.8 3.5 1.2 2.1 4.7 2.6 1.3 Gross written premiums .................................................................................................................................................... $ 97.2 $ 96.2 $ 86.9 $ 60.0 $ 115.2 $ 382.8 $ 273.3 $ 146.4 Net written premiums by line of business Commercial auto liability .................................................................................................................................................... $ 1.2 $ 0.3 $ 2.6 $ 0.5 $ 0.5 $ 5.9 $ 24.6 $ 23.9 Commercial auto physical damage .................................................................................................................................. — — 0.3 0.1 0.1 0.4 2.5 2.6 General liability .................................................................................................................................................................... 1.7 1.5 1.7 4.1 3.7 14.8 6.8 1.5 Excess liability ..................................................................................................................................................................... 4.2 4.3 5.5 3.1 5.1 14.6 6.0 0.5 Workers Compensation ..................................................................................................................................................... 6.7 6.4 7.6 7.2 6.3 28.3 19.5 — Non-standard auto .............................................................................................................................................................. — — — (18.8) 16.0 20.2 20.1 — Professional Lines .............................................................................................................................................................. 1.7 0.8 (0.7) 1.0 0.8 4.2 0.3 — Other ..................................................................................................................................................................................... 2.3 2.0 1.0 0.2 0.1 0.3 — — Net written premiums ......................................................................................................................................................... $ 17.8 $ 15.2 $ 18.0 $ (2.6) $ 32.8 $ 88.7 $ 79.8 $ 28.6 Specialty Property & Casualty Insurance Segment Information
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25 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 Net premiums earned .............................................................................................................................................................. $ 17.0 $ 16.2 $ 15.7 $ 18.9 $ 27.4 $ 99.0 $ 51.9 $ 13.9 Net investment income ............................................................................................................................................................ 1.6 1.7 1.8 1.9 1.7 6.4 3.8 1.6 Program fees ............................................................................................................................................................................. 3.6 3.5 3.7 4.0 3.6 13.5 8.4 3.1 Total revenues 22.8 21.4 21.2 24.8 40.1 126.3 64.1 18.5 Expenses: Loss and loss adjustment expenses ................................................................................................................................... 14.4 11.0 10.5 9.8 20.4 72.6 36.7 9.1 Amortization of deferred acquisition costs, net ................................................................................................................. 3.5 3.7 3.8 7.8 6.0 23.7 10.6 2.5 General and administrative expenses ................................................................................................................................ 4.9 6.1 5.3 4.6 4.8 17.8 16.5 13.2 Total expenses ..................................................................................................................................................................... 22.8 20.8 19.7 22.3 31.2 114.1 63.7 24.8 Pretax income (loss) ............................................................................................................................................................. — 0.6 1.5 2.6 8.9 12.2 0.4 (6.3) Net Income (loss) ................................................................................................................................................................... $ (0.1) $ 0.4 $ 1.4 $ 1.8 $ 8.0 $ 10.5 $ 0.3 $ (6.3) EBITDA & Adjusted EBITDA ............................................................................................................................................... $ — $ 0.6 $ 1.5 $ 2.6 $ 8.9 $ 12.2 $ 0.4 $ (6.3) Specialty Property & Casualty Insurance Segment Information (Continued)
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26 Year ended December 31, ($ in millions) 3Q2025 2Q2025 1Q2025 4Q2024 3Q2024 2024 2023 2022 NWP / GWP ................................................................................................................................................................ 18.3 % 15.8 % 20.7 % (4.3) % 28.4 % 23.2 % 29.2 % 19.5 % AY loss ratio ................................................................................................................................................................ 61.3 % 66.8 % 65.9 % 43.3 % 74.2 % 68.6 % 70.4 % 65.2 % Prior accident years development ........................................................................................................................... 23.2 % 1.0 % 1.1 % 8.6 % 0.2 % 4.7 % 0.3 % 0.2 % Loss ratio ..................................................................................................................................................................... 84.5 % 67.8 % 66.9 % 51.9 % 74.4 % 73.4 % 70.7 % 65.4 % Net acquisition cost .................................................................................................................................................... 27.4 % 25.4 % 24.5 % 26.5 % 23.8 % 24.7 % 23.5 % 19.6 % Expense ratio slide commission ............................................................................................................................. (6.9) % (2.6) % — % 14.9 % (1.9) % (0.8) % (3.2) % (1.3) % G&A expense ratio ..................................................................................................................................................... 7.9 % 16.0 % 10.7 % 3.1 % 4.2 % 4.3 % 15.4 % 72.8 % Expense ratio (1) .......................................................................................................................................................... 28.4 % 38.9 % 35.2 % 44.6 % 26.1 % 28.2 % 35.8 % 91.1 % Combined ratio ........................................................................................................................................................... 112.9 % 106.7 % 102.1 % 96.5 % 100.5 % 101.6 % 106.5 % 156.5 % Ambac stockholders’ equity (2) .................................................................................................................................. $ 139.6 $ 140.9 $ 137.2 $ 133.3 $ 133.9 $ 133.3 $ 121.7 $ 110.4 Number of programs .................................................................................................................................................. 25 24 26 27 24 27 23 14 Statutory net income (loss) ....................................................................................................................................... $ 0.1 $ 0.6 $ 0.5 $ 6.7 $ 7.6 $ 13.5 $ (7.1) $ (8.0) Statutory surplus ......................................................................................................................................................... $ 126.5 $ 126.5 $ 125.7 $ 125.2 $ 116.8 $ 125.2 $ 108.1 $ 107.5 1. Expense Ratio is defined as acquisition costs and general and administrative expenses, reduced by program fees, divided by net premiums earned 2. Represents Ambac’s stockholders equity in the Specialty Property and Casualty Insurance segment, including intercompany eliminations Specialty Property & Casualty Insurance Segment Information (Continued)
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Corporate
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28 $10.7 $20.5 $27.3 $14.6 $14.7 $13.5 $26.6 $7.9 $3.2 $8.5 $8.8 $10.6 $8.3 $9.3 $44.5 $54.6 $71.0 $73.2 $77.1 $70.1 $69.3 $31.8 $28.2 $28.3 $28.3 $31.0 $36.1 $37.0 Reported Corporate Expenses Adjusted Corporate Expenses(1) TTM Reported Corporate Expenses TTM Adjusted Corporate Expenses 1Q24 2Q24(2)(3) 3Q24(3) 4Q24 1Q25 2Q25 3Q25 $— $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 3Q25 Reported Corporate Expenses $14.7 $2.8 $3.7 $0.4 $2.7 $2.3 Corporate G&A Expense Trend 1. In addition to reporting the Company’s financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures including Adjusted EBITDA. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial statements prepared in accordance with GAAP. Adjusted Corporate Expenses is a portion of Adjusted EBITDA. (see slide 46 for more detail) 2. Adjusted Corporate expense includes a benefit of $4.0 due to expense reimbursement by AAC 3. Reported Corporate expenses for 2Q24 and 3Q24 include restructuring and acquisition costs related to sale of AAC and purchase of Beat $3.5 $2.0$0.8 $0.4 $0.5 $2.1 Compensation Professional Fees Premises Director's Fees Software costs Other 3Q25 Adjusted Corporate Expenses
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29 ($ in millions unless otherwise noted) 2025 2026 Gross Cost Reduction Impact on Corporate Adjusted EBITDA Completion Status Executive Management (#)(1) 7 4 $2.7 $2.3 Executive Management Compensation Reduction(1) $11.5 $9.2 2.3 0.2 Board Compensation Reduction 2.7 2.4 0.3 — Closing/Relocation of Corporate Headquarters 4.5 0.5 4.0 2.0 Advisory and Other 5.5 1.4 4.1 4.1 Litigation 1.4 0.2 1.2 1.2 Software consolidation 2.9 0.1 2.8 0.8 Total 17.4 10.6 Select Corporate Cost Reduction Initiatives (all amounts are estimates) Not Completed Completed1. Compensation includes annualized Base Salary, Target Bonus and incentive awards granted
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30 Shares Outstanding August 5, 2025 46,401,736 Basic WASO for quarter ended September 30, 2025 48,106,069 Shares Outstanding November 7, 2025 43,812,035(1) Estimated Proforma Basic WASO(2) October 1, 2025 through November 7, 2025 46,121,158(2) • Ambac reduced shares outstanding through open market repurchases by 3.1 million since September 30, 2025 • Open market repurchases were executed at an average price of $8.48 • Remaining repurchase capacity as of November 7, 2025, is $8.4 million 1. Includes shares newly outstanding related to the accelerated settlement of directors deferred RSUs in connection with the change of control triggered by the sale of AAC. 2. Actual amount will differ due to application of formulaic timing adjustments. Share Repurchase Activity
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31 September 30, 2025 December 31, 2024 Assets: Total investments $ 245,681 $ 92,556 Cash and cash equivalents 11,010 9,983 Investment in subsidiaries 705,979 935,447 Other assets 32,518 19,861 Total assets $ 995,188 $ 1,057,847 Liabilities and Stockholders’ Equity: Liabilities: Accounts payable $ 9,240 $ 4,587 Other liabilities 24,018 (1,402) Total liabilities 33,258 3,185 Nonredeemable noncontrolling interest 115,790 197,755 Stockholders' equity 843,384 856,907 Total liabilities, nonredeemable noncontrolling interest and stockholders' equity $ 995,188 $ 1,057,847 AFG Only Balance Sheet Summary
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Appendix
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33 Three Months Ended Year Ended December 31, (in millions, except per share data) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 2024 2023 2022 Summary GAAP Financial Data: Net premiums earned .............................................................................................................................................. $ 17.0 $ 16.2 $ 15.7 $ 18.9 $ 27.4 $ 99.0 $ 51.9 $ 13.9 Commissions ............................................................................................................................................................ 36.1 30.3 36.8 38.0 23.1 92.0 51.3 30.7 Servicing and other fees ......................................................................................................................................... 4.9 4.5 5.0 4.1 2.3 6.4 — — Program fees ............................................................................................................................................................ 3.6 3.5 3.7 4.0 3.6 13.5 8.4 3.1 Investment income ................................................................................................................................................... 2.7 2.6 2.8 3.6 3.5 14.4 13.2 4.5 Other .......................................................................................................................................................................... 2.4 (2.1) (1.1) (3.4) 10.1 10.5 (0.1) 1.5 Losses and loss adjustment expenses (benefit) ................................................................................................. 14.4 11.0 10.5 9.8 20.4 72.6 36.7 9.1 Commissions ............................................................................................................................................................ 11.2 7.4 10.4 13.7 9.5 40.9 29.5 17.6 General and administrative ..................................................................................................................................... 53.7 40.5 38.5 39.7 44.0 129.2 67.0 56.3 Intangible amortization ............................................................................................................................................ 9.3 9.7 8.8 8.9 6.4 17.6 4.2 2.9 Interest ....................................................................................................................................................................... 6.2 5.6 5.5 5.6 3.7 9.4 — — Pretax income (loss) from continuing operations ......................................................................................... (32.1) (23.0) (15.1) (21.1) (20.8) (59.8) (24.2) (35.7) Net income (loss) from continuing operations ............................................................................................... (30.8) (20.8) (14.5) (20.9) (19.9) (58.9) (23.2) (35.2) Net income (loss) from discontinued operations .................................................................................................. (80.9) (52.2) (30.2) (526.1) (9.4) (497.2) 28.2 557.4 Net income (loss) attributable to shareholders .............................................................................................. (112.6) (72.7) (46.4) (548.3) (27.5) (556.4) 3.6 522.4 Net income (loss) per diluted share ....................................................................................................................... $ (2.35) $ (1.54) $ (1.22) $ (10.23) $ (0.63) $ (10.71) $ 0.18 $ 11.31 Weighted average number of diluted shares outstanding (in thousands) ........................................................ 48.106 48.117 47.313 48.129 47.689 46.970 45.637 45.720 Non-GAAP Measurements: EBITDA (1) ................................................................................................................................................................. $ (16.1) $ (7.7) $ (0.5) $ (5.9) $ (9.9) $ (30.5) $ (19.0) $ (31.9) Impact of noncontrolling interest ........................................................................................................................... (3.9) (2.2) (5.0) (4.5) (0.6) (6.4) (2.1) (1.5) EBITDA to shareholders ......................................................................................................................................... (20.1) (9.9) (5.5) (10.4) (10.5) (37.0) (20.8) (33.4) Adjusted EBITDA to Ambac stockholders ............................................................................................................ (2.9) (4.6) (1.3) 0.5 1.9 2.2 (7.7) (22.0) Adjusted net income (loss) ..................................................................................................................................... (6.4) (8.2) (1.5) (1.1) (1.1) (2.2) (6.0) (21.0) Adjusted net income (loss) to shareholders ........................................................................................................ (10.0) (10.6) (6.0) (5.7) (1.7) (8.6) (8.1) (22.4) Adjusted net income (loss) per diluted share ...................................................................................................... $ (0.21) $ (0.22) $ (0.13) $ (0.12) $ (0.03) $ (0.18) $ (0.18) $ (0.49) Consolidated Comprehensive Income Data
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34 Earnings Measures by Reporting Segment (Third Quarter) Three Months Ended September 30, 2025 2024 ($ in millions) SPC ID CORP CONS SPC ID CORP CONS Revenues: Commissions $ 36.1 $ 36.1 $ 23.1 $ 23.1 Servicing and other fees 4.9 4.9 2.3 2.3 Net premiums earned $ 17.0 17.0 $ 27.4 27.4 Program fees 3.6 3.6 3.6 3.6 Investment income 1.6 0.4 $ 0.6 2.7 1.7 0.3 $ 1.5 3.5 Other 0.5 1.9 — 2.4 7.4 (1.6) 4.4 10.1 Total revenues from continuing operations 22.8 43.2 0.6 66.6 40.1 24.0 5.9 70.0 Expenses: Commissions 11.2 11.2 9.5 9.5 Loss and loss adjustment expenses 14.4 14.4 20.4 20.4 Policy acquisition costs 3.5 3.5 6.0 6.0 Compensation expense 2.7 15.6 14.7 33.1 2.8 9.3 6.5 18.6 Non Compensation expense 2.2 6.6 11.8 20.6 2.0 2.8 20.6 25.4 Intangible amortization and depreciation — 9.4 0.3 9.7 — 6.6 0.5 7.1 Interest expense — 6.2 6.2 — 3.7 3.7 Total expenses from continuing operations 22.8 49.0 26.9 98.7 31.2 31.9 27.6 90.8 Segment pretax income (loss) — (5.7) (26.3) (32.1) 8.9 (7.9) (21.7) (20.8) Segment income tax expense (benefit) — (1.2) — (1.2) 0.9 (0.9) (0.9) (0.9) Segment net income (loss) (0.1) (4.5) (26.3) (30.8) 8.0 (7.1) (20.8) (19.9) Segment net (income) loss attributable to NCI — (0.9) (0.9) — 1.8 1.8 Net income (loss) attributable to shareholders $ (0.1) $ (5.4) $ (26.3) (31.7) $ 8.0 $ (5.3) $ (20.8) (18.1) Reconciliation to consolidated net income (loss) attributable to shareholders Discontinued operations (80.9) (9.4) Net income (loss) attributable to shareholders $ (112.6) $ (27.5) SPC = Specialty Property & Casualty Insurance, ID = Insurance Distribution, CORP = Corporate & Other and CONS = Consolidated
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35 Nine Months Ended September 30, 2025 2024 ($ in millions) SPC ID CORP CONS SPC ID CORP CONS Revenues: Commissions $ 103.2 $ 103.2 $ 54.0 $ 54.0 Servicing and other fees 14.3 14.3 2.3 2.3 Net premiums earned $ 48.9 48.9 $ 80.1 80.1 Program fees 10.7 10.7 9.5 9.5 Investment income 5.2 1.1 $ 1.7 8.1 4.5 0.4 $ 5.9 10.9 Other 0.5 (1.3) — (0.9) 7.4 (1.5) 8.0 13.8 Total revenues from continuing operations 65.3 117.3 1.7 184.3 101.5 55.2 13.9 170.6 Expenses: Commissions 28.9 28.9 27.2 27.2 Loss and loss adjustment expenses 35.9 35.9 62.8 62.8 Policy acquisition costs 11.0 11.0 15.8 15.8 Compensation expense 8.9 43.6 26.3 78.8 7.7 13.5 18.7 39.8 Non Compensation expense 7.5 18.1 28.4 54.0 5.6 4.7 39.4 49.6 Intangible amortization and depreciation 27.6 1.1 28.7 8.9 1.4 10.3 Interest expense 17.2 17.2 3.7 3.7 Total expenses from continuing operations 63.3 135.4 55.8 254.5 91.8 58.0 59.5 209.3 Segment pretax income (loss) 2.1 (18.2) (54.1) (70.2) 9.7 (2.9) (45.5) (38.7) Segment income tax expense (benefit) 0.3 (3.9) (0.4) (4.0) 1.0 (0.8) (1.0) (0.8) Segment net income (loss) 1.8 (14.2) (53.7) (66.1) 8.6 (2.1) (44.5) (38.0) Segment net (income) loss attributable to NCI — (2.3) (2.3) — 0.9 — 0.9 Net income (loss) attributable to shareholders $ 1.8 $ (16.5) $ (53.7) (68.4) 8.6 (1.2) (44.5) (37.1) Reconciliation to consolidated net income (loss) attributable to shareholders Discontinued operations (163.3) 28.9 Net income (loss) attributable to shareholders $ (231.7) $ (8.2) SPC = Specialty Property & Casualty Insurance, ID = Insurance Distribution, CORP = Corporate & Other and CONS = Consolidated Earnings Measures by Reporting Segment (Nine Months Ended 9/30)
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36 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 December 31, (in millions, except per share data) 2024 2023 2022 Summary GAAP Financial Data: Total investments ............................................................................................................................................. $ 455.2 $ 292.2 $ 291.4 $ 312.9 $ 334.3 $ 312.9 $ 354.1 $ 334.4 Premium receivables ....................................................................................................................................... 74.8 71.9 64.6 57.2 114.3 57.2 45.9 15.7 Intangible assets .............................................................................................................................................. 339.2 353.9 345.1 344.8 373.7 344.8 61.4 60.7 Goodwill ............................................................................................................................................................. 445.4 451.8 429.3 418.2 433.7 418.2 69.7 60.9 Unearned premiums ........................................................................................................................................ 197.1 191.1 181.4 182.4 216.0 182.4 154.9 85.4 Loss and loss expense reserves ................................................................................................................... 437.5 384.0 373.1 349.1 323.2 349.1 197.1 89.9 Short-term debt ................................................................................................................................................ — 150.0 150.0 150.0 148.2 150.0 — — Accrued interest payable ................................................................................................................................ — 2.9 2.7 2.6 2.6 2.6 — — Ambac stockholders' equity............................................................................................................................ 843.4 859.8 852.2 856.9 1,465.3 856.9 1,361.7 1,252.3 Number of shares outstanding (net of treasury shares) ............................................................................ 46.701 46.400 46.427 46.507 47.443 46.507 45.195 44.974 Ambac Financial Group, Inc. book value per share ................................................................................... $ 18.06 $ 18.53 $ 18.36 $ 18.43 $ 30.89 $ 18.43 $ 30.13 $ 27.85 Consolidated Quarterly Balance Sheet Data
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37 Non-GAAP Financial Data In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: Organic Revenue Growth Rated (Insurance Distribution segment only), EBITDA, Adjusted Net Income and Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin. These amounts are derived from our consolidated financial information, but are not presented in our consolidated financial statements prepared in accordance with GAAP. We present non-GAAP supplemental financial information because we believe such information is of interest to the investment community, and that it provides greater transparency and enhanced visibility into the underlying drivers and performance of our businesses on a basis that may not be otherwise apparent on a GAAP basis. We view these non-GAAP financial measures as important indicators when assessing and evaluating our performance on a segmented and consolidated basis and they are presented to improve the comparability of our results between periods by eliminating the impact of the items that may not be representative of our core operating performance. These non-GAAP financial measures are not substitutes for the Company’s GAAP reporting, should not be viewed in isolation and may differ from similar reporting provided by other companies, which may define non-GAAP measures differently. Ambac Non-GAAP Financial Data
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38 Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Net income (loss) (Continuing Operations) $ (0.1) $ (4.5) $ (26.3) $ (30.8) $ 8.0 $ (7.1) $ (20.8) $ (19.9) Adjustments: Add: Acquisition and integration related expenses — — 0.2 0.2 — — 14.9 14.9 Add: Intangible amortization — 9.3 — 9.3 — 6.4 — 6.4 Add: Equity-based compensation expense 0.1 0.1 6.0 6.1 0.2 — 2.4 2.5 Add: Severance and restructuring expense — — 8.9 8.9 — 0.2 1.7 1.9 Add: Other non-operating (income) losses — — 2.0 2.0 (7.5) — 0.6 (6.9) Adjusted net income (loss) before tax and NCI — 4.9 (9.2) (4.3) 0.6 (0.4) (1.3) (1.1) Income tax effects — (2.1) — (2.1) — — — — Adjusted net income (loss) before NCI — 2.8 (9.2) (6.4) 0.6 (0.4) (1.3) (1.1) Net (income) loss attributable to noncontrolling interest — (3.6) — (3.6) — (0.6) — (0.6) Adjusted net income (loss) attributable to shareholders $ — $ (0.8) $ (9.2) $ (10.0) $ 0.6 $ (1.0) $ (1.3) $ (1.7) Net income (loss) margin (0.2) % (10.4) % NM (46.3) % 19.9 % (29.4) % NM (28.4) % Adjusted net income (loss) margin 0.2 % 6.5 % NM (9.6) % 1.6 % (1.6) % NM (1.6) % Adjusted net income (loss) attributable to shareholders margin 0.2 % (1.8) % NM (14.9) % 1.6 % (4.0) % NM (2.4) % The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Adjusted Net Income & Margin (quarters ended 9/30)
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39 Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Net income (loss) (1) $ (0.1) $ (4.5) $ (26.3) $ (30.8) $ 8.0 $ (7.1) $ (20.8) $ (19.9) Adjustments: Interest expense — 6.2 — 6.2 — 3.7 — 3.7 Income taxes — (1.2) — (1.2) 0.9 (0.9) (0.9) (0.9) Depreciation — 0.1 0.3 0.5 — 0.2 0.5 0.7 Amortization of intangible assets — 9.3 — 9.3 — 6.4 — 6.4 EBITDA (2) — 9.9 (26.0) (16.1) 8.9 2.4 (21.3) (9.9) Impact of noncontrolling interest — (3.9) — (3.9) — (0.6) — (0.6) EBITDA to stockholders $ — $ 5.9 $ (26.0) $ (20.1) $ 8.9 $ 1.9 $ (21.3) $ (10.5) 1. Net income (loss) is prior to the impact of noncontrolling interests. 2. EBITDA is prior to the impact of noncontrolling interests and relates to subsidiaries where Ambac does not own 100% The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: EBITDA Reconciliation (quarters ended 9/30)
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40 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Net income (loss) (1) $ 1.8 $ (14.2) $ (53.7) $ (66.1) $ 8.6 $ (2.1) $ (44.5) $ (38.0) Adjustments: Interest expense — 17.2 — 17.2 — 3.7 — 3.7 Income taxes 0.3 (3.9) (0.4) (4.0) 1.0 (0.8) (1.0) (0.8) Depreciation — 0.3 1.1 1.4 — 0.2 1.4 1.6 Amortization of intangible assets — 27.2 — 27.2 — 8.7 — 8.7 EBITDA (2) 2.1 26.6 (53.0) (24.3) 9.7 9.8 (44.1) (24.7) Impact of noncontrolling interest — (11.1) — (11.1) — (1.9) — (1.9) EBITDA to stockholders $ 2.1 $ 15.5 $ (53.0) $ (35.4) $ 9.7 $ 7.9 $ (44.1) $ (26.6) 1. Net income (loss) is prior to the impact of noncontrolling interests. 2. EBITDA is prior to the impact of noncontrolling interests and relates to subsidiaries where Ambac does not own 100% The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: EBITDA Reconciliation (nine months ended 9/30)
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41 Three Months Ended September 30, 2025 Three Months Ended September 30, 2024 Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated EBITDA $ — $ 9.9 $ (26.0) $ (16.1) $ 8.9 $ 2.4 $ (21.3) $ (9.9) Add: Impact of noncontrolling interests — (3.9) — (3.9) — (0.6) — (0.6) EBITDA attributable to shareholders — 5.9 (26.0) (20.1) 8.9 1.9 (21.3) (10.5) Net income margin (0.2) % (10.4) % NM (46.3) % 19.9 % (29.4) % NM (28.4) % Net income margin attributable to shareholders (0.2) % (12.5) % NM (47.6) % 19.9 % (22.1) % NM (25.9) % EBITDA margin (0.2) % 22.8 % NM (24.2) % 22.3 % 10.1 % NM (14.2) % EBITDA margin attributable to shareholders (0.2) % 13.7 % NM (30.1) % 22.3 % 7.8 % NM (14.9) % Add: Acquisition and integration related expenses — — 0.2 0.2 — — 14.9 14.9 Add: Equity-based compensation expense 0.1 0.1 6.0 6.1 0.2 — 2.4 2.5 Add: Severance and restructuring expense — — 8.9 8.9 — — 1.7 1.9 Add: Other non-operating (income) losses — — 2.0 2.0 (7.5) — 0.6 (6.9) Adjusted EBITDA — 10.0 (8.9) 1.1 1.6 2.7 (1.8) 2.5 Impact of noncontrolling interest — (4.0) — (4.0) — (0.6) — (0.6) Adjusted EBITDA attributable to shareholders — 6.0 (8.9) (2.9) 1.6 2.1 (1.8) 1.9 Adjusted EBITDA Margin 0.2 % 23.0 % NM 1.7 % 4.0 % 11.1 % NM 3.5 % Adjusted EBITDA Margin attributable to shareholders 0.2 % 13.9 % NM (4.3) % 4.0 % 8.8 % NM 2.7 % The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Adjusted EBITDA Reconciliation (quarters ended 9/30)
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42 Nine Months Ended September 30, 2025 Nine Months Ended September 30, 2024 Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated Specialty Property & Casualty Insurance Insurance Distribution Corporate & Other Consolidated EBITDA $ 2.1 $ 26.6 $ (53.0) $ (24.3) $ 9.7 $ 9.8 $ (44.1) $ (24.7) Add: Impact of noncontrolling interests — (11.1) — (11.1) — (1.9) — (1.9) EBITDA attributable to shareholders 2.1 15.5 (53.0) (35.4) 9.7 7.9 (44.1) (26.6) Net income margin 2.8 % (12.1) % NM (35.9) % 8.5 % (3.8) % NM (22.3) % Net income margin attributable to shareholders — % — % NM — % 8.5 % (2.2) % NM (21.8) % EBITDA margin 3.2 % 22.7 % NM (13.2) % 9.5 % 17.8 % NM (14.5) % EBITDA margin attributable to shareholders 3.2 % 13.2 % NM (19.2) % 9.5 % 14.4 % NM (15.6) % Add: Acquisition and integration related expenses — 0.4 1.3 1.7 — — 25.8 25.8 Add: Equity-based compensation expense 0.2 0.2 9.4 9.8 0.3 — 6.3 6.5 Add: Severance and restructuring expense — 0.1 13.6 13.7 — 0.2 7.0 7.2 Add: Other non-operating (income) losses — (0.6) 2.0 1.4 (7.5) — (3.8) (11.3) Adjusted EBITDA 2.3 26.6 (26.7) 2.3 2.4 10.1 (8.9) 3.6 NCI impact — (11.0) — (11.0) — (1.9) — (1.9) Adjusted EBITDA attributable to shareholders 2.3 15.6 (26.7) (8.7) 2.4 8.2 (8.9) 1.7 Adjusted EBITDA Margin 3.5 % 22.7 % NM 1.3 % 2.4 % 18.2 % NM 2.1 % Adjusted EBITDA Margin attributable to shareholders 3.5 % 13.3 % NM (4.7) % 2.4 % 14.8 % NM 1.0 % 1. Net income (loss) is prior to the impact of noncontrolling interests. 2. EBITDA is prior to the impact of noncontrolling interests and relates to subsidiaries where Ambac does not own 100% The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Adjusted EBITDA Reconciliation (nine months ended 9/30)
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43 Ambac Financial Group, Inc. (“Ambac” or “AFG”) is an insurance holding company headquartered in New York City. Ambac consists of a diverse mix of specialty insurance underwriting and distribution businesses in the U.S. and U.K. Ambac’s common stock trades on the New York Stock Exchange under the symbol “AMBC”. For more information, please go to www.ambac.com. The Amended and Restated Certificate of Incorporation of Ambac contains substantial restrictions on the ability to transfer Ambac’s common stock. Subject to limited exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a result of such transfer (or any series of transfers of which such transfer is a part), any person or group of persons shall become a holder of 5% or more of Ambac’s common stock or a holder of 5% or more of Ambac’s common stock increases its ownership interest. Contact Karen Beyer Head of Investor Relations (212) 208-3177 ir@ambac.com About Ambac