Ambac Financial Reports Impact Of Material Developments

(RTTNews) - Ambac Financial Group, Inc. (AMBC) said its subsidiary, Ambac Assurance Corporation or AAC, has provided updates regarding the implementation of the restructuring of a significant portion of its Puerto Rico exposure and the estimated impact of recent litigation developments on its representation and warranty subrogation recoverable. Both developments are expected to have a material effect on the company's first quarter consolidated financial results.

Ambac is expected to record a gain in the range of $210 to $250 million from the restructuring of a significant portion of AAC's remaining Puerto Rico exposures. The management believes that the estimated reduction to AAC's estimated R&W subrogation recoveries is in the range of $175 to $205 million.

Separately, Ambac Financial Group, Inc. said its Board has approved a share repurchase program, under which the company may opportunistically repurchase up to $20 million of the company's common shares at management's discretion over the period ending on March 31, 2024.