Shares of bond insurer Ambac Financial (ABK) are up 26 cents, or 40%, at 90 cents, after the company this afternoon reported fourth quarter net income of $558.1 million, or $1.93 per share, a vast improvement over the year-earlier Q4 loss of $2.3 billion, or $8.14 per share.
There is only one lone estimate, according to Thomson Reuters, although three brokers — FBR Capital, JP Morgan, and Wall Street Strategies — are listed as covering the stock. The lone estimate is for a loss per share of�$3.34.
In its press release, the company said credit derivatives improved in value by $133.2 million. Ambac benefitted from legislation passed in the quarter that led to a tax benefit of $472 million, it said.
Net premiums declined 19% in the quarter to $228 million. Net investment income rose 8%, year over year, to $118.7 million.
There were no qualitative commens regarding the results in the press release, and the company is not hosting a conference call.
Peer MBIA (MBI) is up 45 cents, or 6%, at $8.
Correction: As one astute reader pointed out, it appears that the single estimate was for a loss per share of $3.34, rather than for a profit of $3.34, as previously stated.
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