Octave Specialty Group, Inc. · NYSE:OSG
Octave Specialty — Ambac Financial Group — Q4 2024 Earnings Presentation
17 slides from Octave Specialty's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter 2024 Investor Presentation
Fourth Quarter 2024 Investor Presentation Quarterly Highlights
Slide 2: Forward Looking Statement
Forward Looking Statement In this presentation, we have included statements that may constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “estimate,” “project,” “plan,” “believe,” “anticipate,”
Slide 3: Key Operating Highlights
Key Operating Highlights 4Q24 2024 • P&C premium up 88% to ~$265 million • P&C premium up 74% to $876 million • Cirrata revenue up 257% to $44 million • Consolidated revenue up 89% to $236 million • Cirrata $5 million of Adjusted EBITDA to Ambac • Cirrata $13 million Adjusted EBITDA to Ambac • Evers
Slide 4: Cirrata: Insurance Distribution
Cirrata: Insurance Distribution 4Q24 2024 • Premium placed increased 309% to $205 million over • Premium placed increased 114% to $493 million 4Q23 • Organic growth of 5.4% • Total revenue up 257% to $44 million over 4Q23 • Announced (6) new de novo MGAs • $2.4 million of de novo start-up losses in
Slide 5: +$1.5 Billion of Third-Party Capacity for 2025
+$1.5 Billion of Third-Party Capacity1 for 2025 1. Includes all capacity providers, including managements’ interest in Lloyds Syndicates, excluding Ambac’s balance sheet 5
Slide 6: Everspan: Specialty P&C Program Insurer
Everspan: Specialty P&C Program Insurer 4Q24 2024 • GPW $60 million, down (34)% vs. 4Q23 • GPW up 40% to $383 million vs. 2023 • 102% of GPW is E&S lines in the quarter • 68% of GPW is E&S lines YTD • Combined ratio improved 380 bps to 96.5% vs. 4Q23 • Combined ratio improved 490 bps to 101.6% vs. 2
Slide 7: Diversification & Scale Improves Underwriting
Diversification & Scale Improves Underwriting 1. Expense ratio includes program fee revenue as a reduction to net acquisition costs 2. Total Net Loss Ratio is total net losses incurred (case + IBNR + ULAE) divided by net premiums earned 7 3. Combined Ratio is sum of expense ratio and total net loss
Slide 8: Ambac's Operating Segment Highlights
Ambac’s Operating Segment Highlights Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate & Casualty Insurance Corporate & Insurance Distribution Other Consolidated Insurance Distribution Other Consolidated G
Slide 9: 2028 Adjusted EBITDA to Ambac Target
2028 Adjusted EBITDA to Ambac Target1 9
Slide 10: Ambac Non-GAAP Reconciliations
Ambac Non-GAAP Reconciliations
Slide 11: Ambac Non-GAAP Financial Data
Ambac Non-GAAP Financial Data Non-GAAP Financial Data In addition to reporting the Company’s quarterly financial results in accordance with GAAP, the Company is reporting non-GAAP financial measures: Organic Revenue Growth Rated (Insurance Distribution segment only), EBITDA, Adjusted Net Income and
Slide 12: Adjusted Net Income & Margin — Quarter
Adjusted Net Income & Margin — Quarter The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate & Casualt
Slide 13: Adjusted Net Income & Margin — Year-to-Date
Adjusted Net Income & Margin — Year-to-Date The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Year Ended December 31, 2024 Year Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate & Casualty Insurance
Slide 14: EBITDA Reconciliation — Quarter & Year-to-Date
EBITDA Reconciliation — Quarter & Year-to-Date The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate &
Slide 15: Adjusted EBITDA Reconciliation — Quarter
Adjusted EBITDA Reconciliation — Quarter The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate & Casua
Slide 16: Adjusted EBITDA Reconciliation — Year-to-Date
Adjusted EBITDA Reconciliation — Year-to-Date The following table reconciles Net income (loss) to the non-GAAP measure EBITDA as of each date presented: Year Ended December 31, 2024 Year Ended December 31, 2023 Specialty Specialty Property & Property & Casualty Insurance Corporate & Casualty Insuran
Slide 17: About Ambac
About Ambac Ambac Financial Group, Inc. (“Ambac” or “AFG”) is an insurance holding company headquartered in New York City. Ambac’s core business is a growing specialty P&C Contact distribution and underwriting platform. Ambac also has a legacy financial guarantee business in run-off which we have ag
Ambac Financial Group — Q4 2024 Earnings Presentation on 6ix