Ambac Financial Group (ABK) Reports EPS of $7.58, Including Large Mark-to-Market Gains

November 4, 2009 8:41 AM EST

Ambac Financial Group, Inc. (NYSE: ABK) reported Q3 EPS of $7.58, versus a loss of $8.45 last year. The third quarter 2009 results reflect significant unrealized mark-to-market gains in the credit derivatives portfolio and gains resulting from reinsurance cancellations during the quarter.

Ambac's President and Chief Executive Officer, David Wallis, commented, "Our GAAP financial results tend to fluctuate based upon risk perception and its impact on mark-to-market changes. However, I remain optimistic about our remediation efforts. We continue to make progress in de-risking the balance sheet via negotiated reinsurance buy-backs, CDO of ABS commutations, settlements related to defaulted RMBS transactions as well as expanded analysis of expected recoveries relating to RMBS representation and warranty breaches."

Net change in fair value of credit derivatives amounted to positive $2,132.9 million.

Net loss and loss expenses incurred amounted to $459.2 million for the quarter, relating to other asset-backed securities transactions and a municipal transportation credit.

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