Shares of bond insurer Ambac Financial Group (ABK) are off 14 cents, or 10%, at $1.32 after the company this morning reported a Q1 net loss per share of $2.39, more than double the $1.36 net loss reported a year earlier.
The Q1 loss was largely a result of consolidating $495 million worth of “variable interest entities” as the result of adopting newly issued accounting standards.
Without that charge, it’s fair to say the company’s net loss would have narrowed in the quarter, to roughly 67 cents per share.
Premia earned in the quarter fell by 36% to $125.2 million. Cash and equivalents was roughly in line with the prior year, at $115 million.
The total deficit for the company narrowed to $1.5 billion from $1.6 billion a year earlier, and book value improved from a negative $7.95 to a negative $7.39.