Market Exclusive

Ambac Financial Group, Inc. (NASDAQ:AMBC) Files An 8-K Other Events

Ambac Financial Group, Inc. (NASDAQ:AMBC) Files An 8-K Other EventsItem 8.01. Other Events.

On March 25, 2017, Ambac Assurance UK Limited (“Ambac UK”), a subsidiary of Ambac Financial Group, Inc. (“Ambac”), agreed in principle to a confidential settlement of litigation brought in the name of Ballantyne Re plc (“Ballantyne”) against J.P. Morgan Investment Management (“JPMIM”) relating to the management of Ballantyne’s investment accounts, which were funded with the proceeds of notes issued in 2006 in connection with a structured reinsurance transaction and guaranteed in part by Ambac UK.
to the settlement, which remains subject to final documentation, Ballantyne will receive a payment in return for releases of all claims asserted by Ballantyne and Ambac UK in the litigation. As a result of the settlement and based on similar assumptions utilized as of December 31, 2016, Ambac is expected to realize a benefit through losses and loss expenses of approximately $92 million in the first quarter of 2017. The benefit from this settlement will result from the reduction of loss and loss expense reserves previously established in relation to Ballantyne, and not from a direct cash payment to Ambac UK.
The financial impact of the settlement will be described in Ambac’s first quarter 2017 earnings release and Form 10-Q filed with the SEC.
Ambac Financial Group, Inc. (NASDAQ:AMBC) Recent Trading Information
Ambac Financial Group, Inc. (NASDAQ:AMBC) closed its last trading session up +0.15 at 17.88 with 282,288 shares trading hands.
Exit mobile version