May 28, 2008 / 8:44 PM / 10 years ago

Ambac shares fall after April write-down disclosure

NEW YORK, May 28 (Reuters) - Shares of bond insurer Ambac Financial Group Inc ABK.N fell sharply to a record low on Wednesday, after it released data showing it took a large write-down on investments last month.

Ambac said it marked down the value of a derivatives portfolio linked to mortgage securities by $228 million in April. Net investment income was $42.2 million, offset by a $53.4 million decline in the market value of other investments.

Net earned premiums were $56.4 million for the month.

Ambac’s shares fell as low as $2.88 in intraday trading, before paring some of their losses to close 9 percent lower, or down 29 cents, at $2.94 on the New York Stock Exchange.

The bond insurance sector was hit hard by its expansion into guaranteeing repackaged subprime mortgages and other risky securities.

Ambac’s stock has fallen dramatically since a year ago, when the shares were trading around $92.

(Reporting by Lilla Zuill; Editing by Tim Dobbyn)

((;+1 646 223 6281)) Keywords: AMBAC/SHARES

C Reuters 2008. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN28337138

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below