Ambac Financial Group, Inc. (ABK)

Ambac Financial Group, Inc., through its subsidiaries, provides financial guarantee products and other financial services to clients in the public and private sectors worldwide. It operates in two segments, Financial Guarantee and Financial Services. The Financial Guarantee segment provides financial guarantee insurance and other credit enhancement products, such as credit derivatives for public finance and structured finance obligations. It also provides credit protection in credit derivative form, as well as guarantees or provides credit protection on obligations already carrying insurance from other financial guarantors. This segment sells its products in the U.S. public finance market, the U.S. structured finance and asset-backed market, and the international finance market. The Financial Services segment provides financial and investment products, including investment agreements, funding conduits, interest rate, total return, and currency swaps, principally to clients of the financial guarantee business, which include municipalities and other public entities, health care organizations, investor-owned utilities, and asset-backed issuers. The company was founded in 1971 and is headquartered in New York, New York.

For the nine months ended 30 September 2006, Ambac Financial Group, Inc.'s revenues increased 15% to $1.42B. Net income increased 23% to $673.2M. Revenues reflect an increase in net premiums earned and higher premium earnings from U.S. public finance & U.S. structured finance. Net income also reflects the presence of net realized investment gains, lower corporate expense and a decrease in financial loss & loss expenses.