2017 Q2 Form 10-Q Financial Statement
#000087450117000060 Filed on May 10, 2017
Income Statement
| Concept | 2017 Q2 | 2017 Q1 |
|---|---|---|
| Revenue | $85.16M | $81.56M |
| YoY Change | -23.0% | 226.24% |
| Cost Of Revenue | ||
| YoY Change | ||
| Gross Profit | ||
| YoY Change | ||
| Gross Profit Margin | ||
| Selling, General & Admin | ||
| YoY Change | ||
| % of Gross Profit | ||
| Research & Development | ||
| YoY Change | ||
| % of Gross Profit | ||
| Depreciation & Amortization | $33.70M | $37.80M |
| YoY Change | -14.25% | -26.17% |
| % of Gross Profit | ||
| Operating Expenses | $130.9M | $200.7M |
| YoY Change | 802.76% | -860.23% |
| Operating Profit | ||
| YoY Change | ||
| Interest Expense | -$28.20M | -$31.60M |
| YoY Change | -8.14% | 3.95% |
| % of Operating Profit | ||
| Other Income/Expense, Net | ||
| YoY Change | ||
| Pretax Income | $13.99M | -$105.9M |
| YoY Change | -77.25% | -920.62% |
| Income Tax | $6.900M | $19.60M |
| % Of Pretax Income | 49.31% | |
| Net Earnings | $7.110M | -$125.4M |
| YoY Change | -87.87% | -1434.48% |
| Net Earnings / Revenue | 8.35% | -153.8% |
| Basic Earnings Per Share | $0.16 | -$2.77 |
| Diluted Earnings Per Share | $0.16 | -$2.77 |
| COMMON SHARES | ||
| Basic Shares Outstanding | 45.23M shares | 45.22M shares |
| Diluted Shares Outstanding |
Balance Sheet
| Concept | 2017 Q2 | 2017 Q1 |
|---|---|---|
| SHORT-TERM ASSETS | ||
| Cash & Short-Term Investments | ||
| YoY Change | ||
| Cash & Equivalents | $54.00M | $119.0M |
| Short-Term Investments | ||
| Other Short-Term Assets | ||
| YoY Change | ||
| Inventory | ||
| Prepaid Expenses | ||
| Receivables | ||
| Other Receivables | ||
| Total Short-Term Assets | ||
| YoY Change | ||
| LONG-TERM ASSETS | ||
| Property, Plant & Equipment | ||
| YoY Change | ||
| Goodwill | ||
| YoY Change | ||
| Intangibles | ||
| YoY Change | ||
| Long-Term Investments | $32.42M | $31.20M |
| YoY Change | 17.37% | 17.87% |
| Other Assets | $5.000M | $5.000M |
| YoY Change | 0.0% | -16.67% |
| Total Long-Term Assets | ||
| YoY Change | ||
| TOTAL ASSETS | ||
| Total Short-Term Assets | ||
| Total Long-Term Assets | ||
| Total Assets | $23.01B | $22.76B |
| YoY Change | -0.84% | -4.03% |
| SHORT-TERM LIABILITIES | ||
| YoY Change | ||
| Accounts Payable | ||
| YoY Change | ||
| Accrued Expenses | $399.0M | $400.0M |
| YoY Change | 4.72% | 6.67% |
| Deferred Revenue | ||
| YoY Change | ||
| Short-Term Debt | $0.00 | $0.00 |
| YoY Change | ||
| Long-Term Debt Due | ||
| YoY Change | ||
| Total Short-Term Liabilities | $431.0M | $442.0M |
| YoY Change | -17.59% | -10.71% |
| LONG-TERM LIABILITIES | ||
| Long-Term Debt | $12.89B | $12.58B |
| YoY Change | 2.65% | -4.07% |
| Other Long-Term Liabilities | $2.228B | $2.376B |
| YoY Change | -12.87% | -6.9% |
| Total Long-Term Liabilities | $15.12B | $14.96B |
| YoY Change | 0.03% | -4.53% |
| TOTAL LIABILITIES | ||
| Total Short-Term Liabilities | $431.0M | $442.0M |
| Total Long-Term Liabilities | $15.12B | $14.96B |
| Total Liabilities | $21.33B | $21.14B |
| YoY Change | -0.34% | -3.8% |
| SHAREHOLDERS EQUITY | ||
| Retained Earnings | ||
| YoY Change | ||
| Common Stock | ||
| YoY Change | ||
| Preferred Stock | ||
| YoY Change | ||
| Treasury Stock (at cost) | ||
| YoY Change | ||
| Treasury Stock Shares | ||
| Shareholders Equity | $1.674B | $1.625B |
| YoY Change | ||
| Total Liabilities & Shareholders Equity | $23.01B | $22.76B |
| YoY Change | -0.84% | -4.03% |
Cashflow Statement
| Concept | 2017 Q2 | 2017 Q1 |
|---|---|---|
| OPERATING ACTIVITIES | ||
| Net Income | $7.110M | -$125.4M |
| YoY Change | -87.87% | -1434.48% |
| Depreciation, Depletion And Amortization | $33.70M | $37.80M |
| YoY Change | -14.25% | -26.17% |
| Cash From Operating Activities | -$160.7M | -$4.800M |
| YoY Change | -450.11% | -100.58% |
| INVESTING ACTIVITIES | ||
| Capital Expenditures | ||
| YoY Change | ||
| Acquisitions | ||
| YoY Change | ||
| Other Investing Activities | $183.1M | $232.5M |
| YoY Change | -1068.78% | -128.57% |
| Cash From Investing Activities | $183.1M | $232.5M |
| YoY Change | -1068.78% | -128.57% |
| FINANCING ACTIVITIES | ||
| Cash Dividend Paid | ||
| YoY Change | ||
| Common Stock Issuance & Retirement, Net | ||
| YoY Change | ||
| Debt Paid & Issued, Net | ||
| YoY Change | ||
| Cash From Financing Activities | -85.30M | -200.3M |
| YoY Change | 162.46% | 886.7% |
| NET CHANGE | ||
| Cash From Operating Activities | -160.7M | -4.800M |
| Cash From Investing Activities | 183.1M | 232.5M |
| Cash From Financing Activities | -85.30M | -200.3M |
| Net Change In Cash | -62.90M | 27.40M |
| YoY Change | 1043.64% | -549.18% |
| FREE CASH FLOW | ||
| Cash From Operating Activities | -$160.7M | -$4.800M |
| Capital Expenditures | ||
| Free Cash Flow | ||
| YoY Change |
Facts In Submission
| Frame | Concept Type | Concept / XBRL Key | Value | Unit |
|---|---|---|---|---|
| CY2016Q4 | ambc |
Balance Of Rmbs Subrogation Recoveries Net Of Reinsurance
BalanceOfRmbsSubrogationRecoveriesNetOfReinsurance
|
-1878740000 | USD |
| CY2017Q1 | ambc |
Balance Of Rmbs Subrogation Recoveries Net Of Reinsurance
BalanceOfRmbsSubrogationRecoveriesNetOfReinsurance
|
-1864943000 | USD |
| CY2015Q3 | ambc |
Cash Received From Delaware Trust
CashReceivedFromDelawareTrust
|
146000000 | USD |
| CY2016Q4 | ambc |
Derivatives Credit Risk Valuation Adjustment Derivative Liabilities Other Than Credit Derivatives
DerivativesCreditRiskValuationAdjustmentDerivativeLiabilitiesOtherThanCreditDerivatives
|
44943000 | USD |
| CY2017Q1 | ambc |
Derivatives Credit Risk Valuation Adjustment Derivative Liabilities Other Than Credit Derivatives
DerivativesCreditRiskValuationAdjustmentDerivativeLiabilitiesOtherThanCreditDerivatives
|
42894000 | USD |
| CY2016Q4 | ambc |
Estimated Future Premium Payments Weighted Average Discounted Rate
EstimatedFuturePremiumPaymentsWeightedAverageDiscountedRate
|
0.026 | |
| ambc |
Fair Value Measurement Process Description For Credit Derivatives Hypothetical Incremental Fee
FairValueMeasurementProcessDescriptionForCreditDerivativesHypotheticalIncrementalFee
|
0.0005 | ||
| ambc |
Fair Value Measurement Process Description For Credit Derivatives Hypothetical Incremental Fee With Credit Deterioration
FairValueMeasurementProcessDescriptionForCreditDerivativesHypotheticalIncrementalFeeWithCreditDeterioration
|
0.0015 | ||
| CY2016Q4 | ambc |
Fair Value Of Securities Deposited With Governmental Authorities
FairValueOfSecuritiesDepositedWithGovernmentalAuthorities
|
5872000 | USD |
| CY2017Q1 | ambc |
Fair Value Of Securities Deposited With Governmental Authorities
FairValueOfSecuritiesDepositedWithGovernmentalAuthorities
|
5859000 | USD |
| CY2016Q4 | ambc |
Fair Valueof Securities Placedin Trust
FairValueofSecuritiesPlacedinTrust
|
360759000 | USD |
| CY2017Q1 | ambc |
Fair Valueof Securities Placedin Trust
FairValueofSecuritiesPlacedinTrust
|
355223000 | USD |
| CY2015Q3 | ambc |
Numberof Rmbs Sold
NumberofRMBSSold
|
17 | |
| CY2017Q1 | ambc |
Possible Increasein Loss Reserves Relatedto Puerto Rico
PossibleIncreaseinLossReservesRelatedtoPuertoRico
|
1600000000 | USD |
| CY2017Q1 | ambc |
Post Determination Net Operating Loss
PostDeterminationNetOperatingLoss
|
-32084000 | USD |
| CY2017Q1 | ambc |
Remaining Warrant Buy Back Authorized Dollars
RemainingWarrantBuyBackAuthorizedDollars
|
11939000 | USD |
| CY2015Q3 | ambc |
Securities Issuedby Delaware Trust
SecuritiesIssuedbyDelawareTrust
|
146000000 | USD |
| CY2017Q1 | ambc |
Tier Abc Credit
TierABCCredit
|
5000000 | USD |
| CY2017Q1 | ambc |
Tier Ab Credit
TierABCredit
|
10000000 | USD |
| CY2015Q4 | ambc |
Tolling Paymentto Afg
TollingPaymenttoAFG
|
71454000 | USD |
| CY2016Q4 | ambc |
Tolling Paymentto Afg
TollingPaymenttoAFG
|
100145000 | USD |
| ambc |
Warrants Repurchased Average Costper Warrant
WarrantsRepurchasedAverageCostperWarrant
|
8.21 | ||
| CY2017Q1 | dei |
Amendment Flag
AmendmentFlag
|
false | |
| CY2017Q1 | dei |
Current Fiscal Year End Date
CurrentFiscalYearEndDate
|
--03-31 | |
| CY2017Q1 | dei |
Document Fiscal Period Focus
DocumentFiscalPeriodFocus
|
Q1 | |
| CY2017Q1 | dei |
Document Fiscal Year Focus
DocumentFiscalYearFocus
|
2017 | |
| CY2017Q1 | dei |
Document Period End Date
DocumentPeriodEndDate
|
2017-03-31 | |
| CY2017Q1 | dei |
Document Type
DocumentType
|
10-Q | |
| CY2017Q1 | dei |
Entity Central Index Key
EntityCentralIndexKey
|
0000874501 | |
| CY2017Q2 | dei |
Entity Common Stock Shares Outstanding
EntityCommonStockSharesOutstanding
|
45228945 | shares |
| CY2017Q1 | dei |
Entity Current Reporting Status
EntityCurrentReportingStatus
|
Yes | |
| CY2017Q1 | dei |
Entity Filer Category
EntityFilerCategory
|
Large Accelerated Filer | |
| CY2017Q1 | dei |
Entity Incorporation Date Of Incorporation
EntityIncorporationDateOfIncorporation
|
1991-04-29 | |
| CY2017Q1 | dei |
Entity Registrant Name
EntityRegistrantName
|
AMBAC FINANCIAL GROUP INC | |
| CY2017Q1 | dei |
Entity Voluntary Filers
EntityVoluntaryFilers
|
No | |
| CY2017Q1 | dei |
Entity Well Known Seasoned Issuer
EntityWellKnownSeasonedIssuer
|
Yes | |
| CY2017Q1 | dei |
Trading Symbol
TradingSymbol
|
AMBC | |
| invest |
Investment Warrants Expiration Date
InvestmentWarrantsExpirationDate
|
2023-04-30 | ||
| CY2016Q4 | us-gaap |
Collateral Already Posted Aggregate Fair Value
CollateralAlreadyPostedAggregateFairValue
|
128754000 | USD |
| CY2017Q1 | us-gaap |
Collateral Already Posted Aggregate Fair Value
CollateralAlreadyPostedAggregateFairValue
|
119342000 | USD |
| CY2016Q4 | us-gaap |
Derivative Collateral Obligation To Return Cash
DerivativeCollateralObligationToReturnCash
|
0 | USD |
| CY2017Q1 | us-gaap |
Derivative Collateral Obligation To Return Cash
DerivativeCollateralObligationToReturnCash
|
0 | USD |
| CY2016Q4 | us-gaap |
Derivative Credit Risk Valuation Adjustment Derivative Liabilities
DerivativeCreditRiskValuationAdjustmentDerivativeLiabilities
|
1924000 | USD |
| CY2017Q1 | us-gaap |
Derivative Credit Risk Valuation Adjustment Derivative Liabilities
DerivativeCreditRiskValuationAdjustmentDerivativeLiabilities
|
1810000 | USD |
| CY2016Q4 | us-gaap |
Derivative Net Liability Position Aggregate Fair Value
DerivativeNetLiabilityPositionAggregateFairValue
|
82944000 | USD |
| CY2017Q1 | us-gaap |
Derivative Net Liability Position Aggregate Fair Value
DerivativeNetLiabilityPositionAggregateFairValue
|
79893000 | USD |
| CY2016Q4 | us-gaap |
Equity Method Investments
EquityMethodInvestments
|
30003000 | USD |
| CY2017Q1 | us-gaap |
Equity Method Investments
EquityMethodInvestments
|
31201000 | USD |
| CY2016 | us-gaap |
Financial Guarantee Insurance Contracts Premium Received Over Contract Period Premium Receivable Weighted Average Collection Period1
FinancialGuaranteeInsuranceContractsPremiumReceivedOverContractPeriodPremiumReceivableWeightedAverageCollectionPeriod1
|
P9Y | |
| CY2017Q1 | us-gaap |
Financial Guarantee Insurance Contracts Premium Received Over Contract Period Premium Receivable Weighted Average Collection Period1
FinancialGuaranteeInsuranceContractsPremiumReceivedOverContractPeriodPremiumReceivableWeightedAverageCollectionPeriod1
|
P9Y3M18D | |
| CY2011Q3 | us-gaap |
Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
|
3650000000 | USD |
| CY2017Q1 | us-gaap |
Number Of Reportable Segments
NumberOfReportableSegments
|
2 | Segment |
| CY2017Q1 | us-gaap |
Operating Loss Carryforwards
OperatingLossCarryforwards
|
4057680000 | USD |
| CY2016Q4 | us-gaap |
Secured Debt
SecuredDebt
|
102403000 | USD |
| CY2017Q1 | us-gaap |
Secured Debt
SecuredDebt
|
92311000 | USD |
| CY2016Q4 | us-gaap |
Variable Interest Entity Consolidated Carrying Amount Assets
VariableInterestEntityConsolidatedCarryingAmountAssets
|
13367834000 | USD |
| CY2017Q1 | us-gaap |
Variable Interest Entity Consolidated Carrying Amount Assets
VariableInterestEntityConsolidatedCarryingAmountAssets
|
13762688000 | USD |
| CY2016Q4 | us-gaap |
Variable Interest Entity Consolidated Carrying Amount Liabilities
VariableInterestEntityConsolidatedCarryingAmountLiabilities
|
13235425000 | USD |
| CY2017Q1 | us-gaap |
Variable Interest Entity Consolidated Carrying Amount Liabilities
VariableInterestEntityConsolidatedCarryingAmountLiabilities
|
13631197000 | USD |
| CY2017Q1 | us-gaap |
Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
|
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:12px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;font-weight:bold;">Future Application of Accounting Standards:</font></div><div style="line-height:120%;padding-bottom:4px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;font-style:italic;font-weight:bold;">Premium Amortization on Callable Debt Securities</font></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;">In March 2017, the FASB issued ASU 2017-08, </font><font style="font-family:inherit;font-size:9pt;color:#000000;font-style:italic;">Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities</font><font style="font-family:inherit;font-size:9pt;color:#000000;">. The ASU shortens the amortization period for the premium on callable debt securities to the earliest call date. Under current GAAP, a reporting entity generally amortizes the premium as yield adjustment over the contractual life (i.e. maturity) of the debt security and if that debt security is called, the entity would record a loss equal to the unamortized premium. The ASU does not change the accounting for callable debt securities held at a discount, which will continue to be amortized to maturity. ASU 2017-08 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. The ASU must be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We have not determined whether Ambac will early adopt this ASU and are evaluating the impact on Ambac's financial statements.</font></div><div style="line-height:120%;padding-bottom:4px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;font-style:italic;font-weight:bold;">Net Periodic Pension and Postretirement Costs</font></div><div style="line-height:120%;padding-bottom:0px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;">In March 2017, the FASB issued ASU 2017-07, </font><font style="font-family:inherit;font-size:9pt;color:#000000;font-style:italic;">Compensation-Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost</font><font style="font-family:inherit;font-size:9pt;color:#000000;">. The objective of the ASU is to increase transparency in the reporting of net pension cost and net postretirement cost (collectively "net benefit cost"). The ASU requires that the service cost component of net benefit cost be reported on the same line item as other compensation costs arising from services rendered by employees. It further requires that the other components of net benefit costs (i.e. interest costs, amortization of prior service cost, etc.) be presented separately from the service cost component and outside the subtotal of income from operations, if one is presented. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years, with early adoption permitted. Ambac will adopt this ASU on January 1, 2018. The adoption of this ASU is not expected to have a consequential impact on Ambac's financial statements.</font></div></div> | |
| CY2017Q1 | us-gaap |
Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
|
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;text-align:justify;font-size:9pt;"><font style="font-family:Times New Roman;font-size:9pt;font-style:normal;font-weight:bold;text-decoration:none;">Reclassifications:</font></div><div style="line-height:120%;padding-bottom:12px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;">Certain reclassifications may have been made to prior years' amounts to conform to the current year's presentation.</font></div></div> | |
| CY2017Q1 | us-gaap |
Schedule Of Liability For Unpaid Claims And Claims Adjustment Expense
ScheduleOfLiabilityForUnpaidClaimsAndClaimsAdjustmentExpense
|
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:4px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;">Below is the loss and loss expense reserve roll-forward, net of subrogation recoverable and reinsurance, for the affected periods:</font></div><div style="line-height:120%;padding-bottom:4px;padding-top:0px;text-align:left;font-size:10pt;"><div style="padding-left:0px;text-indent:0px;line-height:normal;padding-top:10px;"><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:99.80506822612085%;border-collapse:collapse;text-align:left;"><tr><td colspan="8" rowspan="1"></td></tr><tr><td style="width:73%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td><td style="width:11%;" rowspan="1" colspan="1"></td><td style="width:1%;" rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="7" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Three Months Ended March 31,</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">2017</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="3" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="text-align:center;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">2016</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Beginning gross loss and loss expense reserves</font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">3,696,038</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">$</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">2,858,813</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Reinsurance recoverable</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">30,767</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">44,059</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Beginning balance of net loss and loss expense reserves</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">3,665,271</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">2,814,754</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Losses and loss expenses (benefit):</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Current year</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">1,543</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">768</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Prior year</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">133,468</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">(106,049</font></div></td><td style="vertical-align:bottom;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Total </font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">(1) (2)</sup></font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">135,011</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">(105,281</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Loss and loss expenses (recovered) paid:</font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="3" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Current year</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">696</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">—</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Prior year</font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">9,749</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">(916,206</font></div></td><td style="vertical-align:bottom;padding-right:2px;padding-top:2px;padding-bottom:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:12px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Total</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">10,445</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">(916,206</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Foreign exchange effect</font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">5,827</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;border-bottom:1px solid #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">(10,081</font></div></td><td style="vertical-align:bottom;border-bottom:1px solid #000000;padding-right:2px;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">)</font></div></td></tr><tr><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;padding-left:6px;text-indent:-6px;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Ending net loss and loss expense reserves</font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">3,795,664</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">3,615,598</font></div></td><td style="vertical-align:bottom;background-color:#cceeff;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">Reinsurance recoverable </font><font style="font-family:inherit;font-size:8pt;"><sup style="vertical-align:top;line-height:120%;font-size:5pt">(3)</sup></font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">34,691</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td colspan="2" style="vertical-align:bottom;padding-left:2px;padding-top:2px;padding-bottom:2px;" rowspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;">27,478</font></div></td><td style="vertical-align:bottom;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr><tr><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">Ending gross loss and loss expense reserves</font><font style="font-family:inherit;font-size:8pt;font-weight:bold;"><sup style="vertical-align:top;line-height:120%;font-size:5pt"> (4)</sup></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">3,830,355</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-left:2px;padding-top:2px;padding-bottom:2px;padding-right:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="overflow:hidden;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"> </font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;padding-left:2px;padding-top:2px;padding-bottom:2px;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">$</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;padding-top:2px;padding-bottom:2px;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:right;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;font-weight:bold;">3,643,076</font></div></td><td style="vertical-align:bottom;border-bottom:3px double #000000;background-color:#cceeff;border-top:1px solid #000000;" rowspan="1" colspan="1"><div style="text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></td></tr></table></div><font style="font-family:inherit;font-size:9pt;"><br clear="none"/></font></div><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">(1)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:8pt;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">Total losses and loss expenses (benefit) incurred includes </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$4,112</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> and </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$9,454</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> for the </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">three months ended March 31, 2017 and 2016</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">, respectively, related to ceded reinsurance.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">(2)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:8pt;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">Ambac records the impact of estimated recoveries related to securitized loans in RMBS transactions that breached certain representations and warranties within losses and loss expenses (benefit). The losses and loss expense (benefit) incurred associated with changes in estimated representation and warranties for the </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">three months ended March 31, 2017 and 2016</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> was </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$13,797</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> and </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$(20,319)</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">, respectively.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:0px;padding-bottom:4px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">(3)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:8pt;"><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">Represents reinsurance recoverable on future loss and loss expenses. Additionally, the Balance Sheet line "Reinsurance recoverable on paid and unpaid losses" includes reinsurance recoverables (payables) of </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$(418)</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> and </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">$(162)</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;"> as of </font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">March 31, 2017 and 2016</font><font style="font-family:Times New Roman;font-size:8pt;color:#000000;">, respectively, related to previously presented loss and loss expenses and subrogation.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-bottom:16px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:24px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:8pt;padding-left:0px;"><font style="font-family:inherit;font-size:8pt;color:#000000;">(4)</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:8pt;"><font style="font-family:inherit;font-size:8pt;color:#000000;">Includes Euro denominated gross loss and loss expense reserves of </font><font style="font-family:inherit;font-size:8pt;color:#000000;">$20,984</font><font style="font-family:inherit;font-size:8pt;color:#000000;"> (</font><font style="font-family:inherit;font-size:8pt;color:#000000;">€19,639</font><font style="font-family:inherit;font-size:8pt;color:#000000;">) and </font><font style="font-family:inherit;font-size:8pt;color:#000000;">$22,321</font><font style="font-family:inherit;font-size:8pt;color:#000000;"> (</font><font style="font-family:inherit;font-size:8pt;color:#000000;">€19,600</font><font style="font-family:inherit;font-size:8pt;color:#000000;">) at </font><font style="font-family:inherit;font-size:8pt;color:#000000;">March 31, 2017 and 2016</font><font style="font-family:inherit;font-size:8pt;color:#000000;">, respectively.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:12px;text-align:justify;padding-left:0px;text-indent:0px;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;color:#000000;"></font></div></div> |
