Ambac Financial Group late Tuesday estimated that it will report a first-quarter net loss between $650 million and $750 million, according to documents filed to the Securities and Exchange Commission.
Ambac, the parent of troubled municipal bond insurer Ambac Assurance Corp., provided the estimate in lieu of submitting its 10Q and quarterly earnings statement, which it is still finalizing.
The size of that quarterly loss — which it said is primarily related to the value of derivatives — compares with a net loss of $392.2 million for the same period a year ago.
Ambac Financial attributed the delay in submitting official earnings to complexities surrounding the creation of a segregated account for its more toxic holdings. The separate account was initiated in late March at the behest of Ambac Assurance’s regulator, the Wisconsin Office of the Commissioner of Insurance.
Ambac Financial delayed similar statements for the previous two quarters.