Ambac Financial Group Inc. reversed a fourth-quarter loss thanksto lower losses from claims and expenses, and higher income frominvestments.
|The New York-based guarantee insurer, which is currently underbankruptcy protection, reported Q4 net income of $145 million,compared to a prior-year net loss of $963 million.
|For the year, the net loss decreased from $1.96 billion in 2011to net loss of $257 million.
|Improvements in the company's performance in part came from anincrease in net investment income of 1 percent to $93 million. Thecompany reported a net benefit in loss and loss expenses for Q4 of$36.7 million compared to $803.6 million net loss in 2011. The netbenefit resulted from lower estimated losses for second lien,residential-mortgage-backed securities and certain student-loantransactions.
|Ambac said reorganization costs under the Chapter 11 bankruptcyfor Q4 were close to $3 million compared to $10 million for theprior year due to lower professional fees it had to pay followingadoption of its reorganization plan in March of 2012.
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