Ambac Launches Specialty System Insurance plan Enterprise Everspan Group Assigned AM Ideal Fiscal Energy Rating of ‘A-’ (Superb)

NEW YORK–(Business enterprise WIRE)–Feb 10, 2021–

Ambac Financial Team, Inc. (NYSE: AMBC) (“Ambac’), a economic products and services keeping company, today announced that it has introduced Everspan Team, a specialty, participatory fronting software insurance policy organization. Before now, A.M. Finest issued a Monetary Toughness Score (“FSR”) of ‘A-’ (Great) for Everspan Group’s main insurance policy companies, Everspan Indemnity Insurance Corporation, an surplus and surplus lines insurance provider and Everspan Insurance coverage Firm, an admitted provider. With money in extra of $100 million, Everspan Group will function as a Money Size Class Course VIII (as classified by AM Most effective) property and casualty insurance provider and is expected to start creating new specialty systems in the first 50 {f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} of 2021.

This push launch features multimedia. See the full launch here: https://www.businesswire.com/information/household/20210210005618/en/

(Graphic: Business enterprise Wire)

AM Best’s ratings mirror Everspan Group’s balance sheet power, which AM Greatest categorizes as incredibly sturdy, as well as its adequate running functionality, constrained small business profile, and proper enterprise chance management.

Claude LeBlanc, Ambac’s President, and CEO of Ambac and Everspan Group, mentioned “The launch of Everspan Group demonstrates a milestone celebration and the main foundation for Ambac’s specialty method coverage method. Everspan Group’s advanced participatory fronting design positions us to be a major marketplace for coverage distributors. Mr. LeBlanc ongoing, “Our broader specialty insurance policy method is focused on developing and obtaining focused most effective in class enterprises with high quality progress-oriented enterprise products and confirmed management groups. With the launch of Everspan Group and the new acquisition of Xchange, Ambac is progressing its objective of establishing funds economical specialty insurance coverage organizations that we believe that will build extended expression value for our shareholders.”

Ambac shaped Everspan Team in reaction to market dynamics and need for capability. Everspan Team will go after a sustainable, long-term assets and casualty, participatory fronting strategy by underwriting diverse courses of risks. Everspan Group will resource company mostly as a result of taking care of general brokers, program administrators, brokers, regional insurers, reinsurers, and the insurance policies-linked securities marketplace and could keep up to 30{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} of underwriting hazard for each program.

Wyatt Blackburn, President of Everspan Team, stated “Everspan Group’s potent funds situation and target on underwriting results, calculated threat retention, very long-phrase associations, and avoidance of channel conflicts, will differentiate our platform in the specialty application industry.” Mr. Blackburn ongoing, “Everspan Group’s seasoned govt crew, with an set up track document in the specialty program marketplace, merged with general public corporation guidance, together with deep operational and credit history abilities, will make it possible for Everspan Team to supply money energy, balance, dedication, and continuity to our business companions.”

Ambac’s system diversification technique

Ambac has introduced its platform diversification, a few pillar method into (I) specialty application insurance policies, (II) running standard company/underwriting, and (III) other insurance plan and coverage similar enterprises that satisfy preestablished conditions and that we count on will produce very long-time period stockholder price with interesting hazard-adjusted returns. Everspan Group signifies the graduation of business enterprise beneath Pillar I of Ambac’s platform diversification strategy.

Please go to www.everspangroup.com to access the A.M. Finest information release about Everspan Team.

About Ambac

Ambac Fiscal Team, Inc. (“Ambac” or “AFG”), headquartered in New York Metropolis, is a money providers keeping firm whose principal subsidiaries, Ambac Assurance Corporation and Ambac Assurance United kingdom Confined, are economical promise insurance firms currently in runoff. Ambac is also in the course of action of attaining and/or developing new firms, which include its subsidiaries Everspan Insurance plan Firm and Everspan Indemnity Insurance coverage Corporation, and Xchange Advantages, LLC and Xchange Affinity Underwriting Company, LLC. Ambac’s widespread inventory trades on the New York Stock Trade below the symbol “AMBC”. The Amended and Restated Certification of Incorporation of Ambac is made up of substantial limitations on the ability to transfer Ambac’s widespread stock. Matter to minimal exceptions, any attempted transfer of common stock shall be prohibited and void to the extent that, as a consequence of this kind of transfer (or any sequence of transfers of which these kinds of transfer is a section), any person or team of folks shall become a holder of 5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} or far more of Ambac’s widespread inventory or a holder of 5{f13b67734a7459ff15bce07f17c500e58f5449212eae0f7769c5b6fbcf4cc0c4} or a lot more of Ambac’s frequent inventory will increase its possession fascination. Ambac is fully commited to furnishing well timed and accurate details to the investing community, regular with our authorized and regulatory obligations. To that conclusion, we use our web page to convey info about our firms, which include the predicted launch of quarterly monetary benefits, quarterly money, statistical and enterprise-connected information and facts. For much more facts, please go to www.ambac.com.

About Everspan Team

Everspan Team is a specialty house and casualty insurance policies system comprised of Everspan Insurance policy Company, an admitted insurer and Everspan Indemnity Insurance coverage Company, a surplus traces insurance company. Everspan Team strategies to operate nationwide on an admitted and non-admitted foundation. The firms which comprise the Everspan Team are wholly-owned subsidiaries of Ambac Economic Team, Inc. (NYSE:AMBC), a economic services keeping company. For additional details be sure to refer to www.everspangroup.com.

Forward-Hunting Statements:

In this push release, statements that might represent “forward-wanting statements” inside the meaning of the safe harbor provisions of the Non-public Securities Litigation Reform Act of 1995. Phrases these kinds of as “estimate,” “expect,” “project,” “plan,” “believe,” “anticipate,” “intend,” “planned,” “potential” and equivalent expressions, or foreseeable future or conditional verbs such as “will,” “should,” “would,” “could,” and “may,” or the adverse of all those expressions or verbs, detect ahead-looking statements. We caution audience that these statements are not guarantees of long term functionality. Forward-hunting statements are not historic facts but instead symbolize only our beliefs relating to long run occasions, which might by their mother nature be inherently unsure and some of which might be exterior our regulate. These statements may well relate to programs and aims with regard to the long term, among other matters which may well adjust. We are alerting you to the risk that our true outcomes may possibly vary, probably materially, from the envisioned targets or predicted results that may well be proposed, expressed or implied by these forward-on the lookout statements. Vital things that could bring about our effects to vary, quite possibly materially, from individuals indicated in the ahead-wanting statements contain, among the many others, those reviewed underneath “Risk Factors” in our most modern SEC submitted quarterly or yearly report.

Any or all of management’s ahead-wanting statements below or in other publications may perhaps flip out to be incorrect and are dependent on management’s present belief or thoughts. Ambac’s true final results could change materially, and there are no assures about the performance of Ambac’s securities. Between functions, pitfalls, uncertainties or aspects that could cause true results to vary materially are: (1) the remarkably speculative character of AFG’s popular inventory and volatility in the selling price of AFG’s popular stock (2) uncertainty about the Company’s ability to achieve value for holders of its securities, no matter whether from Ambac Assurance Corporation (“Ambac Assurance”) and its subsidiaries or from transactions or chances apart from Ambac Assurance and its subsidiaries, which include new small business initiatives (3) alterations in Ambac’s approximated representation and warranty recoveries or decline reserves about time (4) failure to recuperate claims paid out on Puerto Rico exposures or incurrence of losses in quantities greater than anticipated (5) adverse outcomes on AFG’s share value ensuing from foreseeable future offerings of financial debt or fairness securities that rank senior to AFG’s frequent inventory (6) possible of rehabilitation proceedings against Ambac Assurance (7) dilution of recent shareholder value or adverse effects on AFG’s share value ensuing from the issuance of extra shares of widespread inventory (8) inadequacy of reserves set up for losses and loss expenditures and probability that adjustments in decline reserves may well end result in further volatility of earnings or fiscal final results (9) increased fiscal strain knowledgeable by issuers of public finance obligations or an enhanced incidence of Chapter 9 filings or other restructuring proceedings by community finance issuers, including an enhanced chance of loss on income bonds of distressed community finance issuers because of to judicial selections adverse to income bond holders (10) Ambac’s incapacity to know the expected recoveries provided in its money statements (11) insufficiency or unavailability of collateral to fork out secured obligations (12) credit history hazard in the course of Ambac’s organization, such as but not minimal to credit rating chance associated to household home finance loan-backed securities, scholar loan and other asset securitizations, public finance obligations (like obligations of the Commonwealth of Puerto Rico and its instrumentalities and businesses) and exposures to reinsurers (13) credit score risks related to massive one hazards, hazard concentrations and correlated challenges (14) the hazard that Ambac’s possibility administration procedures and practices do not foresee specific challenges and/or the magnitude of likely for decline (15) hazards involved with adverse range as Ambac’s insured portfolio operates off (16) adverse outcomes on functioning success or the Company’s money position ensuing from steps taken to reduce risks in its insured portfolio (17) disagreements or disputes with Ambac’s coverage regulators (18) our incapacity to mitigate or remediate losses, commute or decrease insured exposures or obtain recoveries or expenditure objectives, or the failure of any transaction intended to execute a single or a lot more of these targets to deliver expected effects (19) Ambac’s substantial indebtedness could adversely have an impact on its fiscal affliction and operating versatility (20) Ambac may well not be able to attain funding or elevate funds on appropriate conditions or at all thanks to its considerable indebtedness and economic ailment (21) Ambac may well not be able to crank out the substantial amount of money of hard cash required to service its financial debt and monetary obligations, and may possibly not be capable to refinance its indebtedness (22) restrictive covenants in agreements and instruments may possibly impair Ambac’s capacity to go after or achieve its small business methods (23) reduction of control rights in transactions for which we present coverage due to a obtaining that Ambac has defaulted (24) the impression of catastrophic environmental or organic functions, which includes catastrophic public health situations like the COVID-19 pandemic, on major portions of our insured and expense portfolios (25) adverse tax effects or other charges ensuing from the characterization of Ambac Assurance’s surplus notes or other obligations as equity (26) hazards attendant to the transform in composition of securities in Ambac’s financial investment portfolio (27) changes in prevailing fascination costs (28) the expected discontinuance of the London Inter-Financial institution Offered Charge (29) elements that may affect the amount of installment premiums paid out to Ambac (30) default by one or extra of Ambac’s portfolio investments, insured issuers or counterparties (31) marketplace risks impacting assets in Ambac’s financial commitment portfolio or the worth of our belongings posted as collateral in regard of fascination rate swap transactions (32) challenges relating to determinations of quantities of impairments taken on investments (33) the risk of litigation and regulatory inquiries or investigations, and the threat of adverse outcomes in relationship therewith, which could have a materials adverse effect on Ambac’s business enterprise, operations, fiscal situation, profitability or hard cash flows (34) actions of stakeholders whose pursuits are not aligned with broader passions of Ambac’s stockholders (35) technique protection risks, data protection breaches and cyber assaults (36) changes in accounting rules or practices that may well impact Ambac’s reported economical success (37) the financial and regulatory influence of “Brexit” (38) operational dangers, which includes with respect to inner procedures, danger and expense types, systems and staff members, and failures in services or solutions provided by third events (39) Ambac’s financial place that could prompt departures of key staff and may well influence its capacity to appeal to qualified executives and workers (40) fluctuations in international forex exchange rates could adversely impact the insured portfolio in the function of reduction reserves or declare payments denominated in a forex other than US bucks and the value of non-US greenback denominated securities in our expenditure portfolio (41) conclusions produced
by Ambac Assurance’s most important insurance policy regulator for the reward of policyholders that could end result in material adverse effects for holders of Ambac’s securities or holders of securities issued or incurred by Ambac Assurance and (42) other dangers and uncertainties that have not been discovered at this time.

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Contact: Lisa A. Kampf

Running Director, Investor Relations, Ambac

(212) 208-3177

lkampf@ambac.com

Everspan Team

contact@everspangroup.com

+1 855 355 0327

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Source: Ambac Monetary Group, Inc.

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PUB: 02/10/2021 09:36 AM/DISC: 02/10/2021 09:36 AM

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