Major Rating Factors:
Weak overall results on stability tests (0.0 on a scale of 0 to 10) including weak results on operational trends and fair risk adjusted capital in prior years. The largest net exposure for one risk is excessive at 116.3% of capital. Fair profitability index (3.2) with operating losses during 2019, 2020, 2021, 2023 and the first six months of 2024. Return on equity has been low, averaging 1.9% over the past five years. History of adequate reserve strength (6.0) as reserves have been consistently at an acceptable level.
Other Rating Factors:
Good liquidity (6.6) with sufficient resources (cash flows and marketable investments) to handle a spike in claims. Strong long-term capitalization index (7.1) based on excellent current risk adjusted capital (severe and moderate loss scenarios) reflecting significant improvement over results in 2021.
Stability Factors:
D - Limited diversification of general business, policy, and/or investment risk.
R - Concerns about the financial strength of its reinsurers.
T - Significant trends in critical asset, liability, income or expense items.
Principal Lines of Business:
Fin guar/surety (100.0%)
Licensed in:
All states except TN, also licensed in PR, VI
Principal Investments:
Investment grade bonds (63.9%), non investment grade bonds (15.1%), other (21.0%)
Corporate Info
Group Affiliation
Ambac Financial Group Inc
Investment Rating
Company Address
One World Trade Center
New York, NY 10007
New York, NY 10007
Phone Number
(212) 658-7470
NAIC Number
18708
Website
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