Investor Presentation Quarterly Highlights

Fourth Quarter 2021

Ambac Financial Group One World Trade Center, 41st Floor, New York, NY 10007 All Rights Reserved | 800-221-1854 | www.ambac.com

AMBAC - COMPANY OVERVIEW

Ambac Financial Group, Inc., (AFG) is a financial services holding company whose common stock trades on the New York Stock Exchange under the symbol "AMBC"

NYSE: AMBC

$671 million market cap (1)

Access to $3.7b of net operating loss carryforwards

MISSION

  • Optimize our business and its components to achieve maximum return for shareholders
  • Aggressively pursue financially sound strategies to reduce risk and decrease the size of the financial guarantee insured portfolio

VISION

  • Transition to a growth-oriented platform sufficiently capitalized to support businesses that are synergistic with Ambac's core competencies

VALUES

  • Culture of respect, inclusion, collaboration and transparency
  • Attract, retain and reward top performers who meet standards of excellence, integrity and collaboration

(1) Common Stock Market Cap based on 46 million AMBC common shares outstanding at the closing stock price of $14.48 on February 22, 2022

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STRATEGIC PRIORITIES

Ambac's primary goal is to maximize shareholder value through the execution of key strategies for both its Specialty P&C Insurance Platform and Financial Guarantee Insurance companies

Specialty P&C Insurance Platform strategic priorities:

  • Growing and diversifying the participatory fronting platform with existing and new program partners
  • Building a leading, federation of specialty MGA/U partners through additional acquisitions and de novo builds, supported by a centralized business services unit including core technology solutions
  • Making opportunistic investments that are strategic to the overall Specialty P&C Insurance Platform

Financial Guarantee Insurance companies' strategic priorities:

  • Actively managing, de-risking and mitigating insured portfolio risk
  • Pursuing loss recovery through active litigation and other means, particularly RMBS representation and warranty litigation
  • Improving operating efficiency and optimizing our asset and liability profile
  • Exploring, at the appropriate time, strategic options to further maximize value to AFG

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STRATEGIC PRIORITIES PROGRESS - 2021 SPECIALTY P&C PROGRAM INSURANCE PLATFORM

  • Capital light
  • Complimentary
  • Recurring fee- based revenue stream
  • NOL utilization

Everspan

Cirrata

Redgrove

Participatory

• Everspan entities received an AM Best Financial

Fronting Insurance

Strength Rating of 'A-' (Excellent) in February of

2021

• Nine program partners signed to date

• Platform expanded with the acquisition of PWIC

and three additional admitted carriers

• With these acquisitions, admitted capabilities

include all 50 states

Product

• Xchange has successfully expanded its distribution

Development and

network and is progressing efforts towards carrier

diversification

Distribution Partner

• ETD distribution to AFG of approximately $6 million

• Ambac is actively exploring additional acquisitions

and/or establishment of de novo MGA platforms

Strategic Investments

• Investments in certain insurance related

businesses, including Cover Whale, an insurtech

MGA

• Actively evaluating investment opportunities that

would be strategic to the overall specialty P&C

program insurance platform

For additional information regarding Ambac's Specialty P&C program insurance platform see Featured Presentation at the link: https://ambac.com/investor-relations/events-and-presentations/presentations/default.aspx

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STRATEGIC PRIORITIES PROGRESS - 2021

FINANCIAL GUARANTEE INSURANCE COMPANIES

Actively managing, de-risking and mitigating insured portfolio risk

  • Active de-risking transactions accounted for $3 billion of the $6 billion reduction in net par in 2021 and $2 billion of the $3 billion reduction in adversely classified and watch list net par exposure
  • Ambac executed a plan support agreement with the Oversight Board, as representative of the Commonwealth of Puerto Rico, to restructure Ambac's insured PRIFA Rum Tax exposure. Ambac also joined plan support agreements that the Oversight Board had previously entered into with other major creditors that will also restructure Ambac's GO, PBA, HTA and CCDA exposures

Pursuing loss recovery through active litigation and other means, particularly RMBS representation and warranty litigation

  • Trial date for the Bank of America/Countrywide R&W case is scheduled for September 7, 2022

Improving operating efficiency and optimizing our asset and liability profile

  • Executed an exchange transaction for junior surplus notes resulting in extinguishment of $76 million in debt and accrued interest
  • Ambac Assurance Corporation issued new senior secured notes through a newly formed VIE, proceeds of which along with other sources of liquidity were used to fully redeem the outstanding Ambac LSNI notes, lowering annual net interest costs and extending the period of maturity

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Ambac Financial Group Inc. published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 February 2022 21:47:34 UTC.