**Ambac Financial Group Rebrands as Octave Specialty Group, Reports Year-End Results**
Octave Specialty Group, Inc., formerly Ambac Financial Group, Inc., reported a net loss from continuing operations of $95.8 million for the year ended December 31, 2025, compared to a net loss of $58.9 million in the prior year. Total revenues for 2025 were $251.2 million, an increase from $235.8 million in 2024. The company attributed the increased net loss to higher restructuring costs of $15.5 million, increased intangible amortization of $20.4 million, and higher interest expense of $9.3 million, partially offset by higher Insurance Distribution revenue and gains on the sale of subsidiaries. The company completed the sale of its Legacy Financial Guarantee business on September 29, 2025, and rebranded as Octave Specialty Group, Inc.
The company operates through two segments: Insurance Distribution and Specialty Property & Casualty Insurance. The Insurance Distribution segment placed premiums of $951.8 million in 2025, up from $493.4 million in 2024, driven by organic growth and acquisitions, including ArmadaCorp Capital, LLC. However, the segment reported a pretax loss of $20.5 million in 2025, compared to a loss of $7.8 million in 2024, primarily due to higher intangible amortization and interest expense. The Specialty Property & Casualty Insurance segment generated gross written premiums of $360.4 million in 2025, a decrease from $382.8 million in 2024, with net premiums written decreasing to $73.9 million from $88.7 million. This segment reported a pretax income of $3.3 million in 2025, compared to $12.2 million in 2024, with the decrease primarily due to the gain on sale of CNIC recognized in 2024.
Key operational developments included the acquisition of ArmadaCorp Capital, LLC on October 31, 2025, for $250 million, funded in part by $120 million of new credit facilities. The company also exercised an option to convert its $3.5 million convertible note investment in Pivix Specialty Insurance Services, Inc. into common stock, resulting in an approximately 74% controlling stake. The company's Specialty Property & Casualty Insurance business, Everspan, had 25 programs with 21 MGA/Us as of December 31, 2025, compared to 27 programs in the prior year. Everspan retained approximately 20.5% of gross written premium in 2025, compared to 23.2% in 2024.
Looking ahead, Octave Specialty Group intends to focus on growing and expanding its Insurance Distribution business through organic growth, de-novo startups, and strategic acquisitions. The company also plans to grow its Specialty Property & Casualty Insurance business to generate underwriting profits from a diversified portfolio of commercial and personal liability risks. The company's strategies are subject to various risks, including market volatility, underwriting losses, credit risk, dependence on third parties, regulatory changes, and competition. The company's ability to execute its strategies and achieve its financial goals will depend on its ability to manage these risks effectively.
About AMBAC FINANCIAL GROUP INC
Ambac Financial Group, Inc. is a financial services holding company based in New York, specializing in insurance distribution and specialty property and casualty insurance. With a focus on the $968 billion U.S. P&C insurance market, Ambac targets growth through strategic acquisitions and partnerships, particularly in the MGA/U program market. The company aims to enhance shareholder value by expanding its diverse portfolio and leveraging technology-driven solutions.
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