Ambac Financial Group, parent of bond insurer Ambac Assurance Corp., announced a net loss of $1.66 billion in the first quarter driven by losses on subprime-related securities the monoline guarantees, including nearly a billion dollars in actual payments the company expects to make.

Ambac said the first quarter results include $1.73 billion in mark-to-market losses for credit default swap exposures — used to insured CDOs of ABS — held by the company, as well as a more than $1 billion loss provision related to direct exposure to RMBS.

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