Ambac Financial Group Inc (AMBC) 2022 Q4 法說會逐字稿

Greetings, and welcome to the Ambac Financial Group, Inc. Fourth Quarter 2022 Earnings Call. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎來到 Ambac Financial Group, Inc. 2022 年第四季度財報電話會議。 （操作員說明）提醒一下，正在錄製此會議。

It is now my pleasure to turn the call over to Charles Sebaski, Head of Investor Relations.

現在我很高興將電話轉給投資者關係主管 Charles Sebaski。

Thank you. Good morning, and welcome to Ambac's Fourth Quarter 2022 Call to discuss financial results. Speaking today will be Claude LeBlanc, President and CEO; and David Trick, Chief Financial Officer. They will discuss the financial results of our business and the current market environment. And after prepared remarks, we'll take your questions.

謝謝。早上好，歡迎來到 Ambac 的 2022 年第四季度電話會議，討論財務業績。今天發言的是總裁兼首席執行官 Claude LeBlanc；首席財務官 David Trick。他們將討論我們業務的財務業績和當前的市場環境。在準備好的評論之後，我們將回答您的問題。

Our call today includes forward-looking statements. The company cautions investors that any forward-looking statement involves risks and uncertainties and is not a guarantee of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements due to a variety of factors. These factors are described under the forward-looking statements in our earnings press release and our most recent 10-Q and 10-K filed with the SEC. We do not undertake any obligation to update forward-looking statements.

我們今天的電話會議包括前瞻性陳述。公司提醒投資者，任何前瞻性陳述都涉及風險和不確定性，並不是對未來業績的保證。由於多種因素，實際結果可能與前瞻性陳述中明示或暗示的結果存在重大差異。這些因素在我們的收益新聞稿和我們最近向美國證券交易委員會提交的 10-Q 和 10-K 報告中的前瞻性陳述中進行了描述。我們不承擔任何更新前瞻性陳述的義務。

Also, in our prepared remarks or responses to questions, we may mention some non-GAAP financial measures. Reconciliations to those non-GAAP measures are included in our recent earnings press release, operating supplements and other materials available in the Investor Relations section of our website at ambac.com.

此外，在我們準備好的評論或對問題的回答中，我們可能會提到一些非 GAAP 財務措施。我們最近發布的收益新聞稿、運營補充資料和我們網站 ambac.com 投資者關係部分提供的其他材料中包含與這些非 GAAP 措施的對賬。

I would now like to turn the call over to Mr. Claude LeBlanc.

我現在想把電話轉給 Claude LeBlanc 先生。

Thank you, Chuck, and welcome to everyone joining today's call. Yesterday, we posted a separate presentation to our website that I will be referencing during today's call entitled 2022 Year-end Review. I'm going to start on Slide 3 of this presentation.

謝謝查克，歡迎大家加入今天的電話會議。昨天，我們在我們的網站上發布了一個單獨的演示文稿，我將在今天題為“2022 年終回顧”的電話會議中引用該演示文稿。我將從本演示文稿的幻燈片 3 開始。

2022 was a transformational year for Ambac, a year during which we resolved a number of our most significant challenges and at the same time, materially progress our new business strategy. Today, I am pleased to report that Ambac is in its strongest financial position since the 2007 financial crisis.

2022 年對 Ambac 來說是轉型的一年，這一年我們解決了一些最重大的挑戰，同時實質性地推進了我們的新業務戰略。今天，我很高興地宣布，Ambac 正處於自 2007 年金融危機以來最強勁的財務狀況。

In 2022, we successfully resolved all of our remaining legacy RMBS rep and warranty litigations recovering nearly $2 billion through settlements and we completed the restructuring of our largest and most distressed financial guarantee exposures, notably PRIFA, CCDA and HTA, Puerto Rico exposures, amongst others.

2022 年，我們成功解決了所有剩餘的 RMBS 代表和保修遺留訴訟，通過和解收回了近 20 億美元，我們完成了對最大和最困難的財務擔保風險敞口的重組，特別是 PRIFA、CCDA 和 HTA、波多黎各風險敞口等.

As a result of these successes, in addition to our active asset liability management activities, which resulted in the capture of over $150 million of discount, we reduced our outstanding debt by $1.8 billion and increased our book value by $214 million or $5.43 per share.

由於這些成功，除了我們積極的資產負債管理活動獲得了超過 1.5 億美元的折扣外，我們還減少了 18 億美元的未償債務，並將賬面價值增加了 2.14 億美元或每股 5.43 美元。

In our Specialty P&C businesses, we expanded our platform through both organic growth and acquisitions, producing in excess of $280 million of premiums. Everspan continued to increase its market share, generating gross written premiums of $146 million for the year. In addition, we successfully recruited top industry talent to our businesses, all of which positions Ambac very well for strong future expansion and earnings growth.

在我們的專業財產險業務中，我們通過有機增長和收購擴大了我們的平台，產生了超過 2.8 億美元的保費。 Everspan 繼續增加其市場份額，全年產生了 1.46 億美元的總承保保費。此外，我們成功地為我們的業務招募了頂尖的行業人才，所有這些都為 Ambac 未來的強勁擴張和盈利增長奠定了良好的基礎。

For the year ending December 31, 2022, Ambac reported net income of $522 million or $11.31 per diluted share, and adjusted earnings of $555 million or $12.01 per diluted share. Ambac ended the year with a book value of $1.25 billion, an increase of 21% and adjusted book value of $1.27 billion, an increase of 46% over year-end 2021. David will discuss our results in more detail shortly.

截至 2022 年 12 月 31 日止年度，Ambac 報告的淨收入為 5.22 億美元或稀釋後每股收益 11.31 美元，調整後收益為 5.55 億美元或稀釋後每股收益 12.01 美元。 Ambac 年底的賬面價值為 12.5 億美元，增長 21%，調整後的賬面價值為 12.7 億美元，比 2021 年底增長 46%。大衛將在稍後更詳細地討論我們的結果。

Turning now to the review of our legacy financial guaranty business on Slide 4 of the presentation. Each of AAC and AUK succeeded immaterially increasing their book value and adjusted book value and the quality thereof, one of our key strategic priorities.

現在轉向在演示文稿的幻燈片 4 上審查我們的傳統財務擔保業務。 AAC 和 AUK 都成功地增加了賬面價值並調整了賬面價值及其質量，這是我們的關鍵戰略重點之一。

In summarizing some of our key achievements for the year. First, we have monetized all of our outstanding rep and warranty receivables when considering the receipt of the Nomura settlement in January of 2023. Secondly, we reduced our Puerto Rico exposure by 77%.

總結我們今年的一些主要成就。首先，考慮到 2023 年 1 月收到野村和解協議時，我們已將所有未償還的代表和保修應收賬款貨幣化。其次，我們將波多黎各的風險敞口減少了 77%。

Next, our debt leverage is down 74%. Loss reserves are down 51%. Adverse credit exposure is down 26. And finally, net par outstanding is down 19%. Over the same period, book value per share increased 24% and adjusted book value per share increased by 50%.

接下來，我們的債務槓桿率下降了 74%。損失準備金下降了 51%。不良信用風險下降了 26%。最後，未償付淨面值下降了 19%。同期，每股賬面價值增長 24%，調整後每股賬面價值增長 50%。

Turning to Slide 5 of the presentation. As outlined last quarter, our recent accomplishments, coupled with our significant derisking and deleveraging activities, positions us to begin the process of reevaluating the amount of capital needed to support our legacy businesses as well as initiate a comprehensive review of the alternative strategic path available to maximize value.

轉到演示文稿的幻燈片 5。正如上個季度所概述的，我們最近的成就，加上我們重要的去風險和去槓桿化活動，使我們能夠開始重新評估支持我們的傳統業務所需的資本數量的過程，並啟動對可用的替代戰略路徑的全面審查價值最大化。

Our strategic review process will evaluate alternative options on both a time- and risk-adjusted basis. I would also like to point out that certain alternatives are not mutually exclusive and may be considered in connection with others.

我們的戰略審查流程將在時間和風險調整的基礎上評估備選方案。我還想指出，某些備選方案並不相互排斥，可以與其他備選方案一起考慮。

Options under active consideration include: one, the ongoing active runoff of a profitable, delevered and derisked legacy platform potentially consolidated with AUK. Two, strategic portfolio derisking transactions with the goal of freeing up capital and further increasing the value of our businesses. Three, strategic joint venture arrangements to generate increased value and financial flexibility at AAC and AFG. And lastly, a full or partial sale of the legacy business, which would consider the value for the well-preserved NOLs held by AAC.

正在積極考慮的選項包括：其一，持續積極地淘汰一個有可能與 AUK 合併的盈利、去槓桿和去風險的遺留平台。第二，以釋放資本和進一步增加我們的業務價值為目標的戰略性投資組合去風險交易。第三，戰略合資安排，以在 AAC 和 AFG 產生更高的價值和財務靈活性。最後，全部或部分出售遺留業務，這將考慮 AAC 持有的保存完好的 NOL 的價值。

As previously mentioned, managing through the operating and capital reevaluation process with our regulator will take some time, but I wanted to offer an update on our progress thus far. First, our periodic examination process with our insurance regulators is well underway, and we are working towards establishing a new capital and operating framework with our Wisconsin insurance regulator by the middle of this year.

如前所述，與我們的監管機構一起管理運營和資本重新評估過程需要一些時間，但我想提供我們迄今為止取得的進展的最新情況。首先，我們與保險監管機構的定期檢查程序正在順利進行，我們正在努力在今年年中之前與我們的威斯康星州保險監管機構建立一個新的資本和運營框架。

Second, we are working with advisers in both the U.S. and the U.K. to assist us in the evaluation of strategic options for both AAC and AUK in order to further maximize value creation and recovery for shareholders. The outcome from this analysis, combined with the outcome from the operating and capital framework in addition to other considerations, is expected to provide us with greater clarity on preferred options and the timing thereof. We will update you further once the review process is complete.

其次，我們正在與美國和英國的顧問合作，協助我們評估 AAC 和 AUK 的戰略選擇，以進一步最大限度地為股東創造價值和恢復價值。這一分析的結果，加上運營和資本框架的結果以及其他考慮因素，預計將使我們更清楚地了解首選方案及其時間安排。審核過程完成後，我們會進一步通知您。

Turning now to our Specialty P&C business on Slide 6 of the presentation. Everspan Group, our Specialty P&C program business, had a great first full year of business, generating gross premium written of $146 million, up over tenfold from its launch in May 2021. Everspan continues to expand and diversify its program partners, which currently stand at [14 up from 7] at the start of 2022. The team remains focused on growth with strong underwriting focused program partners backed by a leading panel of highly rated reinsurers.

現在轉向我們在演示文稿幻燈片 6 上的特種財產險業務。我們的特殊財產險計劃業務 Everspan Group 的第一個全年業務表現出色，產生了 1.46 億美元的毛保費收入，比 2021 年 5 月推出時增長了十倍多。Everspan 繼續擴大其計劃合作夥伴並使其多樣化，這些合作夥伴目前處於[從 7 個增加到 14 個] 到 2022 年初。該團隊仍然專注於增長，擁有強大的以承保為重點的計劃合作夥伴，並由領先的高評級再保險公司小組提供支持。

The U.S. MGA market remains robust and expanding with an expected range of $70 billion to $100 billion in premiums, which supports a strong pipeline of new program partners for Everspan. While growth is important, Everspan is a disciplined underwriting platform and selective in its risk assumption. In 2022, Everspan received over 180 submissions but only contracted with 9 that met their desired risk profile.

美國 MGA 市場保持強勁並不斷擴大，預計保費範圍為 700 億美元至 1000 億美元，這為 Everspan 提供了強大的新計劃合作夥伴渠道。雖然增長很重要，但 Everspan 是一個紀律嚴明的承銷平台，並且在風險承擔方面是有選擇性的。 2022 年，Everspan 收到了 180 多份申請，但只有 9 份符合他們預期的風險狀況。

The January 1 reinsurance renewals provided evidence that the disruptive forces within the P&C supply and demand dynamic identified earlier in the year were real, especially as it relates to property cat exposed business. However, Everspan, which has limited property exposure and program renewals spread throughout the calendar year has so far been able to successfully mitigate these challenges with the broader industry.

1 月 1 日的再保險續保證明，今年早些時候確定的財產和意外險供需動態中的破壞性力量是真實存在的，尤其是當它與財產巨災風險敞口業務相關時。然而，Everspan 在整個日曆年中的財產風險和計劃更新有限，到目前為止，它已經能夠通過更廣泛的行業成功緩解這些挑戰。

And to some degree, we believe that these industry dynamics may well provide Everspan with additional growth opportunities, especially in our preferred classes of business as competitors work to address the changes in property cat capacity.

在某種程度上，我們認為這些行業動態很可能會為 Everspan 提供額外的增長機會，尤其是在我們首選的業務類別中，因為競爭對手正在努力應對房地產產能的變化。

We expect these factors, along with the strength of Everspan's current programs to provide the business with the opportunity and resources to keep building on its gross premium growth. This year, we expect Everspan to generate in excess of $250 million of gross premium and reach profitability in the back half of the year and to continue growing to upwards of $500 million of gross premium over the next several years.

我們預計這些因素以及 Everspan 當前計劃的優勢將為企業提供機會和資源，以繼續推動其毛保費增長。今年，我們預計 Everspan 將產生超過 2.5 億美元的毛保費並在今年下半年實現盈利，並在未來幾年繼續增長至 5 億美元以上的毛保費。

Turning to Slide 7 and our insurance distribution business. Cirrata, our insurance distribution segment had another good year with premiums placed of $135 million, up 15% and over 2021, which generated $7 million of EBITDA. Cirrata is just getting started, and there is a lot of runway for growth both organically and strategically.

轉向幻燈片 7 和我們的保險分銷業務。我們的保險分銷部門 Cirrata 又迎來了一個好年頭，保費收入為 1.35 億美元，比 2021 年增長了 15%，產生了 700 萬美元的 EBITDA。 Cirrata 才剛剛起步，有機增長和戰略增長都有很多跑道。

Notably, Cirrata's 2022 performance only includes 2 months of results from the fourth quarter acquisitions of All Trans and Capacity Marine. [Xchange], our first MGA acquisition has recently announced several growth initiatives that we are very excited about. First, Exchange REIT, a reinsurance MGU and that will underwrite accident and health reinsurance coverage on a worldwide basis, utilizing U.S. fire as a carrier.

值得注意的是，Cirrata 的 2022 年業績僅包括第四季度收購 All Trans 和 Capacity Marine 的兩個月業績。 [Xchange]，我們的第一筆 MGA 收購最近宣布了幾項我們非常興奮的增長計劃。首先，Exchange REIT，一個再保險 MGU，它將在全球範圍內承保事故和健康再保險，以美國火災為載體。

Secondly, Distribution Re, a captive for exchanges employer stop-loss clients that will ensure accident and health risks mainly in the form of high deductible medical stop-loss plans, both of which will add to top and bottom line growth in 2023.

其次，Distribution Re 是交易所雇主止損客戶的俘虜，它將主要以高免賠額醫療止損計劃的形式確保事故和健康風險，這兩者都將增加 2023 年的收入和利潤增長。

As our business continues to transform, we have continued to successfully attract top P&C talent, including the recent hire of a leading industry executive, John Tatum, who is in the process of building out our second de novo incubation and MGA in the construction space. These accomplishments, combined with an active M&A pipeline position Cirrata favorably to hit projections exceeding $200 million of placed premium with attractive margins for 2023.

隨著我們的業務不斷轉型，我們繼續成功地吸引了頂尖的 P&C 人才，包括最近聘請了一位領先的行業高管 John Tatum，他正在建設我們的第二個從頭孵化器和建築領域的 MGA。這些成就，再加上積極的併購管道，使 Cirrata 有望在 2023 年實現超過 2 億美元的保費和誘人的利潤率。

Lastly, I would like to take a moment to acknowledge Jim Prieur, who stepped down from our Board after having served as a director for over 7 years. The Board and management have benefited tremendously from Jim's counsel and service over the years, leading to the significant milestone accomplishments dating back to the segregated account exit from rehabilitation in 2018 and through our numerous other achievements culminating to where we are today.

最後，我想花點時間感謝 Jim Prieur，他在擔任董事超過 7 年後從我們的董事會辭職。多年來，董事會和管理層從 Jim 的建議和服務中獲益匪淺，取得了重要的里程碑式成就，可追溯到 2018 年恢復隔離賬戶退出，以及我們取得今天成就的眾多其他成就。

On behalf of the Board and management, I want to personally thank Jim and wish him the best on his next endeavors. We plan to use Jim's departure as an opportunity to refresh our Board. The Board routinely reevaluates its composition to ensure the expertise and other qualities of the Board as a whole are well suited to the company's business and strategy.

我代表董事會和管理層，親自感謝吉姆，並祝愿他在接下來的工作中一切順利。我們計劃以 Jim 的離職為契機，更新我們的董事會。董事會定期重新評估其組成，以確保董事會的專業知識和其他素質作為一個整體能夠很好地適應公司的業務和戰略。

In light of the accomplishments and significant growth in our Specialty P&C business, the Board's Governance and Nominating committee is well advanced in its search to add a highly skilled director that brings additional Specialty P&C insurance expertise to help steward and back in its next phase of growth. We look forward to updating you on that initiative at the appropriate time.

鑑於我們的特殊財產險業務取得的成就和顯著增長，董事會的治理和提名委員會在尋找增加一名技能嫻熟的董事方面取得了長足進步，該董事將帶來額外的特殊財產險專業知識，以幫助管理和支持下一階段的增長.我們期待在適當的時候向您通報該倡議的最新情況。

I will now turn the call over to David to discuss our financial results for the quarter. David?

我現在將電話轉給大衛討論我們本季度的財務業績。大衛？

Thank you, Claude, and good morning, everyone. For the fourth quarter of 2022, Ambac reported net income of $175 million or $3.86 per diluted share compared to a net loss of $22 million or $0.42 per diluted share in the fourth quarter of 2021.

謝謝你，克勞德，大家早上好。 2022 年第四季度，Ambac 報告的淨收入為 1.75 億美元或攤薄後每股收益 3.86 美元，而 2021 年第四季度的淨虧損為 2200 萬美元或攤薄後每股收益 0.42 美元。

Adjusted earnings for the fourth quarter of 2022 were $190 million or $4.18 per diluted share compared to an adjusted loss of $10 million or $0.16 per diluted share in the fourth quarter of 2021. Adjusted earnings excluded legacy Financial Guarantee insurance intangible amortization expense of $12 million and unrealized foreign exchange transaction losses of $2 million for the fourth quarter of 2022.

2022 年第四季度調整後收益為 1.9 億美元或攤薄後每股收益 4.18 美元，而 2021 年第四季度調整後虧損為 1000 萬美元或攤薄後每股收益 0.16 美元。調整後收益不包括遺留財務擔保保險無形攤銷費用 1200 萬美元和2022 年第四季度未實現的外匯交易損失 200 萬美元。

The $197 million increase in net income for the fourth quarter of 2022 compared to the fourth quarter of 2021 was driven by several notable items. First, we realized a $121 million net gain from the previously announced settlements of legacy RMBS litigations. $78 million of the $121 million net gain related to the Bank of America settlement and $43 million related to the Nomura settlement.

與 2021 年第四季度相比，2022 年第四季度的淨收入增加了 1.97 億美元，這是由幾個值得注意的項目推動的。首先，我們從先前宣布的遺留 RMBS 訴訟和解中實現了 1.21 億美元的淨收益。 1.21 億美元的淨收益中有 7800 萬美元與美國銀行和解有關，4300 萬美元與野村和解有關。

For sake of clarity, I will walk through the various components of the gain and where they are recorded in our financials. As it relates to the net Bank of America gain, $126 million of the gain is recorded as a litigation recovery in our income statement and related specifically to our allocation of a portion of the settlement to the Harborview Ford litigation and $5 million of the gain represents realized gains recorded in realized investment gains on Sitka Notes, we held in the investment portfolio.

為了清楚起見，我將詳細介紹收益的各個組成部分以及它們在我們財務中的記錄位置。由於它與美國銀行的淨收益相關，其中 1.26 億美元的收益在我們的損益表中記錄為訴訟追回，具體涉及我們將部分和解分配給 Harborview Ford 訴訟，500 萬美元的收益代表已實現的收益記錄在我們持有的投資組合中的 Sitka 票據的已實現投資收益中。

Netted against these gains was $53 million of Sitka Note call premium and accelerated discount amortization expense recorded through realized gains and losses on extinguishment of debt. As it relates to Nomura litigation, $43 million of net gains were recognized through loss and loss adjustment expenses.

從這些收益中扣除的是 5300 萬美元的 Sitka Note 看漲期權溢價和加速貼現攤銷費用，這些費用通過已實現的債務清償損益記錄。由於與野村訴訟有關，4300 萬美元的淨收益通過損失和損失調整費用確認。

Secondly, we realized a $77 million gain from the repurchase at a discount of $364 million of principal and accrued interest of surplus notes. This gain was recorded in net gains on extinguishment of debt and was partially offset by the previously mentioned $53 million of Sitka Note expense. On account of these debt reductions, interest expense was $14 million less this quarter compared to the fourth quarter of 2021. As they occurred throughout the fourth quarter, the full impact of these debt reductions on interest expense will not be realized until the first quarter of 2023.

其次，我們以 3.64 億美元的本金和剩餘票據應計利息的折扣實現了 7700 萬美元的回購收益。該收益記錄在清償債務的淨收益中，並被前面提到的 5300 萬美元 Sitka Note 費用部分抵消。由於這些債務削減，本季度的利息支出比 2021 年第四季度減少了 1400 萬美元。由於它們發生在整個第四季度，這些債務削減對利息支出的全部影響要到 2021 年第一季度才能實現2023.

Premiums earned were $17 million in the fourth quarter, up from $10.5 million earned in the fourth quarter of 2021. For the quarter, Everspan earned premiums grew $5.3 million, while Legacy Financial Guarantee net earned premium grew $1.3 million due to the acceleration of premiums related to the derisking of Puerto Rico.

第四季度賺取的保費為 1700 萬美元，高於 2021 年第四季度賺取的 1050 萬美元。本季度，Everspan 賺取的保費增長了 530 萬美元，而 Legacy Financial Guarante 的淨賺取保費增長了 130 萬美元，原因是相關保費加速增長去波多黎各的風險。

Total net premiums earned for the quarter included $13.3 million of normal earned premium. Everspan accounted for over 40% of normal earned premium in the fourth quarter of 2022 compared to just 5% in the fourth quarter of 2021. We as Everspan continued to grow, and we continue to derisk the Legacy Financial Guarantee insured portfolio, we expect Everspan earned premium to exceed that from the legacy financial guarantee book in 2023.

本季度賺取的淨保費總額包括 1330 萬美元的正常賺取保費。 Everspan 佔 2022 年第四季度正常已賺保費的 40% 以上，而 2021 年第四季度僅為 5%。隨著 Everspan 的持續增長，我們繼續降低 Legacy Financial Guarantee 保險組合的風險，我們預計 Everspan 2023 年賺取的保費超過遺留財務擔保書的保費。

In addition, we would highlight that of the $52 million of specialty P&C gross written premiums in the quarter, Everspan retained about 20% or $10 million, which we'll earn in over the next year. Everspan's business model allows us to retain up to 30% of gross written premium.

此外，我們要強調的是，在本季度 5200 萬美元的專業財產險總保費中，Everspan 保留了約 20% 或 1000 萬美元，我們將在明年賺取這些收入。 Everspan 的商業模式使我們能夠保留高達 30% 的總承保保費。

Everspan also collected $2.3 million and earned approximately $1.4 million of program fees in the quarter. As a reminder, program fees earned in over the course of a policy is (inaudible) premium is earned. Therefore, Everspan continues to add programs and grow gross premiums written, both earned premium and program fees will grow significantly.

Everspan 在本季度還收取了 230 萬美元，並賺取了大約 140 萬美元的項目費用。提醒一下，在保單過程中賺取的計劃費用是（聽不清）保費。因此，Everspan 繼續增加項目並增加承保的毛保費，賺取的保費和項目費用都將顯著增長。

Cirrata, our distribution segment also continues to grow both organically and strategically. Premiums placed of $38 million in the quarter were up 46%, benefiting from both the recent acquisitions of All Trans and Capacity Marine in November as well as organic growth from exchange. Insurance distribution business revenues come from commissions earned as a percentage of premiums placed.

Cirrata，我們的分銷部門也在有機和戰略上繼續增長。本季度保費為 3800 萬美元，增長 46%，這得益於 11 月最近收購的 All Trans 和 Capacity Marine 以及交易所的有機增長。保險分銷業務的收入來自佣金佔保費的百分比。

Total revenues for the quarter were $9 million, up 42% from the prior year period. The insurance distribution segment produced nearly $2 million of EBITDA net of noncontrolling interest for the fourth quarter, up from the $1 million produced in the fourth quarter of 2021. Revenues and EBITDA were favorably impacted by 2 months of All Trans and Capacity Marine results in organic growth at Exchange.

本季度的總收入為 900 萬美元，比去年同期增長 42%。保險分銷部門在第四季度產生了近 200 萬美元的扣除非控股權益的 EBITDA，高於 2021 年第四季度產生的 100 萬美元。收入和 EBITDA 受到 All Trans and Capacity Marine 兩個月有機業績的有利影響交易所的增長。

Investment income for the fourth quarter was $23 million, down from $27 million in the fourth quarter of 2021 as a result of volatility across markets and a smaller allocation to alternatives. More specifically, the decrease in investment income during the fourth quarter of 2022 related to a net gain on fund investments of about $2 million compared to a $13 million gain in the fourth quarter of 2021. Allocations to alternative fund investments have been reduced by approximately $58 million year-to-date in connection with the regular rebalancing of the portfolio.

第四季度的投資收益為 2300 萬美元，低於 2021 年第四季度的 2700 萬美元，這是由於市場波動以及對另類投資的分配減少所致。更具體地說，2022 年第四季度投資收益的減少與基金投資淨收益約 200 萬美元有關，而 2021 年第四季度為 1300 萬美元。另類基金投資的分配減少了約 58 美元百萬年初至今與投資組合的定期重新平衡有關。

Income from fixed income securities was up $7 million compared to the same period last year due to higher average yields. Capital deployed in fixed income available-for-sale securities for the fourth quarter was at a yield of approximately 5.7%. Loss and loss adjustment expenses were a $55 million benefit in the fourth quarter of 2022 compared to a $15 million benefit in the fourth quarter of 2021.

由於平均收益率較高，固定收益證券的收入比去年同期增加了 700 萬美元。第四季度用於固定收益可供出售證券的資本收益率約為 5.7%。 2022 年第四季度的損失和損失調整費用為 5500 萬美元，而 2021 年第四季度為 1500 萬美元。

The structured finance portfolio generated a benefit of $58 million this quarter compared to an expense of $24 million in the fourth quarter of last year. The principal driver to this quarter's results was a $43 million gain from the Nomura settlement. The remainder of the benefit for the quarter related to an overall net improvement in the performance of the reserve portfolio.

結構性融資組合在本季度產生了 5800 萬美元的收益，而去年第四季度產生了 2400 萬美元的支出。本季度業績的主要推動因素是野村和解帶來的 4300 萬美元收益。本季度的其餘收益與儲備組合業績的整體淨改善有關。

Net gains on derivative contracts, which remain positioned as a partial economic hedge against interest rate exposure in the financial guarantee and investment portfolios were $5 million for the fourth quarter compared to $3 million for the fourth quarter of 2021. During the quarter and year, we reduced the sensitivity of the macro hedge, generally in line with the exposure we are hedging.

衍生合約的淨收益仍然定位為對財務擔保和投資組合中利率敞口的部分經濟對沖，第四季度為 500 萬美元，而 2021 年第四季度為 300 萬美元。在本季度和本年度，我們降低了宏觀對沖的敏感性，總體上符合我們對沖的敞口。

As of year-end 2022, the sensitivity to a 1 basis point change in interest rates was approximately $156,000 compared to over $530,000 at the beginning of the year. We expect to continue to reduce the DV01 throughout 2023.

截至 2022 年底，對利率變化 1 個基點的敏感性約為 156,000 美元，而年初則超過 530,000 美元。我們預計將在整個 2023 年繼續減少 DV01。

General and administrative expenses were $51 million for the fourth quarter, up from $29 million in the fourth quarter of 2021. The increase in operating expenses was due to an increase in legal expenses at AAC, higher headcount for Specialty P&C and other associated costs with the continued growth of the business, acquisitions of All Trans and Capacity Marine and the impact of timing on certain corporate expenses, which impacted fourth quarter 2021 to more than offset order expense reductions in the legacy business.

第四季度的一般和行政費用為 5100 萬美元，高於 2021 年第四季度的 2900 萬美元。運營費用的增加是由於 AAC 的法律費用增加、特種財產險的員工人數增加以及其他相關費用與業務的持續增長、對 All Trans 和 Capacity Marine 的收購以及時機對某些公司費用的影響，這些影響對 2021 年第四季度的影響超過了傳統業務訂單費用減少的影響。

Interest expense in the fourth quarter was approximately $30 million, down from $44 million in the fourth quarter of 2021 and $49 million in the third quarter of 2022. Approximately $12 million or 40% of this quarter's interest expense related to Sitka and Tier 2 notes, all of which are now fully redeemed.

第四季度的利息支出約為 3000 萬美元，低於 2021 年第四季度的 4400 萬美元和 2022 年第三季度的 4900 萬美元。本季度約 1200 萬美元或 40% 的利息支出與 Sitka 和 Tier 2 票據相關，所有這些現在都已完全贖回。

During the fourth quarter, we also repurchased surplus notes totaling $364 million of par and accrued interest, which resulted in the previously mentioned $77 million gain and a $2 million reduction of interest expense. As a result of these repurchases, AAC's remaining surplus note debt as of [12/31/22] is $945 million, inclusive of accrued unpaid interest.

在第四季度，我們還回購了總額為 3.64 億美元的面值和應計利息的剩餘票據，這導致了前面提到的 7700 萬美元的收益和 200 萬美元的利息支出減少。由於這些回購，AAC 截至 [12/31/22] 剩餘的盈餘票據債務為 9.45 億美元，包括應計未付利息。

Shareholders' equity increased by $244 million or $5.42 per share to $1.25 billion or $27.85 per share at December 31, 2022 from the end of the third quarter. The increase was primarily due to fourth quarter earnings, unrealized gains on available for sale investments of $11 million and foreign exchange translation gains related to AUK of $51 million.

截至 2022 年 12 月 31 日，第三季度末股東權益增加 2.44 億美元或每股 5.42 美元至 12.5 億美元或每股 27.85 美元。這一增長主要是由於第四季度的收益、1100 萬美元的可供出售投資的未實現收益以及與 AUK 相關的 5100 萬美元的外匯換算收益。

Adjusted book value increased to $1.27 billion or $28.29 per share at December 31, 2022, from $1.04 billion or $23.13 per share at the end of the third quarter. This $5.16 per share increase in ABV was primarily due to adjusted earnings and FX translation gains.

調整後的賬面價值從第三季度末的 10.4 億美元或每股 23.13 美元增至 2022 年 12 月 31 日的 12.7 億美元或每股 28.29 美元。 ABV 每股增加 5.16 美元主要是由於調整後的收益和外匯換算收益。

At December 31, 2022, AFG on a standalone basis, excluding investments in subsidiaries had cash, investments and net receivables of approximately $223 million or $4.96 per share. During the quarter, AFG sold all of its AAC surplus notes back to AAC, which increased AFG's liquidity by approximately $95 million.

截至 2022 年 12 月 31 日，不包括對子公司的投資，AFG 的現金、投資和應收賬款淨額約為 2.23 億美元或每股 4.96 美元。本季度，AFG 將其所有 AAC 盈餘票據賣回給 AAC，這使 AFG 的流動性增加了約 9500 萬美元。

I will now turn the call back to Claude for some brief closing remarks.

我現在將把電話轉回給克勞德，讓他做一些簡短的結束語。

2022 was an exciting year with the achievement of meaningful value-enhancing accomplishments. As we look ahead to 2023, our key strategic priorities will focus on: one, growth and diversification of Everspan Group; two, targeted growth at Cirrata both organically and through M&A; and three, as it relates to our legacy business, completing the following: one, the legacy business capital and operating framework; two, our comprehensive review of strategic options for the legacy business ;and three, initiating key strategic steps towards maximizing value for shareholders. We look forward to updating you on our progress in the coming months.

2022 年是激動人心的一年，我們取得了有意義的增值成就。展望 2023 年，我們的主要戰略重點將集中在：一是 Everspan Group 的增長和多元化；第二，通過有機和併購實現 Cirrata 的目標增長；第三，與我們的遺留業務相關，完成以下內容：一，遺留業務資本和運營框架；第二，我們對遺留業務的戰略選擇進行全面審查；第三，啟動關鍵戰略步驟以實現股東價值最大化。我們期待著在未來幾個月向您通報我們的進展情況。

Operator, please open the call for questions.

接線員，請打開電話提問。

(Operator Instructions) Our first question is from the line of [Paul Devine with C. Devine and Association].

（操作員說明）我們的第一個問題來自 [Paul Devine with C. Devine and Association]。

A couple of things. First, I can't believe, Claude and David will never be talking really about Puerto Rico or BofA or Nomura again. So first off, congratulations to everybody on the team for getting that behind you. But now it's time to sort of what have you done from you lately and looking forward. And I wonder, Claude, if you can talk a little bit about more granular on the growth plans for Cirrata also Everspan? And then I had one minor question for David. With respect to the unassigned negative surplus in AAC, I know that was down to about $80 million at the end of the third quarter. When do you think that will go positive.

幾件事。首先，我不敢相信，克勞德和大衛再也不會真正談論波多黎各、美國銀行或野村證券了。所以首先，祝賀團隊中的每個人都支持你。但是現在是時候對您最近所做的事情和期待的事情進行排序了。我想知道，克勞德，你是否可以更詳細地談談 Cirrata 和 Everspan 的增長計劃？然後我有一個小問題要問大衛。關於 AAC 中未分配的負盈餘，我知道在第三季度末已降至約 8000 萬美元。你認為什麼時候會變得積極。

Thanks, [Colin]. I appreciate the questions, and we're also happy to (inaudible) have to talk about Puerto Rico and Nomura going forward. So good point in history. In terms of our go-forward businesses, we are seeing tremendous opportunities at Cirrata both on the de novo side as well as on the strategic or M&A side.

謝謝，[科林]。我很欣賞這些問題，我們也很高興（聽不清）不得不談論波多黎各和野村的未來發展。歷史上這麼好的觀點。就我們未來的業務而言，我們在 Cirrata 看到了從頭開始以及戰略或併購方面的巨大機會。

I think the offering that we put forward in the market, where we support our MGA, MGU and wholesale businesses through a business service offering, in addition to having the possibility of Everspan as a capacity provider, I think, distinguishes us in a way that has led a lot of -- whether it may be sellers or individuals who are looking to either launch an MGA or take an MGA to the next step, consider us as a true viable option relative to other options in the market.

我認為我們在市場上推出的產品，我們通過商業服務產品支持我們的 MGA、MGU 和批發業務，除了有可能讓 Everspan 作為容量提供者之外，我認為，我們在某種程度上與眾不同已經導致很多 - 無論是賣家還是個人，他們都希望推出 MGA 或將 MGA 推向下一步，將我們視為相對於市場上其他選擇的真正可行的選擇。

So I think we've been very pleased with the types of opportunities we've been seeing and we're seeing more and more as time goes on. And I think we're very excited about the prospects for growth and scaling of the Cirrata platform.

因此，我認為我們對所看到的機會類型感到非常滿意，而且隨著時間的推移，我們看到的機會越來越多。我認為我們對 Cirrata 平台的增長和擴展前景感到非常興奮。

As far as Everspan goes, that is an organic game. So the portfolio there just continues to scale. We have distinguished ourselves coming out of the box by being a party that looks to retain risk. So we -- on the scale of hybrid fronting carriers, we are on the far right where we retain up to 30% of risk. And I think that has distinguished us significantly in the market.

就 Everspan 而言，這是一款有機遊戲。因此，那裡的投資組合會繼續擴大。作為一個希望保留風險的一方，我們已經脫穎而出。所以我們——在混合前端運營商的規模上，我們處於最右邊，我們保留了高達 30% 的風險。我認為這使我們在市場上脫穎而出。

And I think the team that we have built with leading underwriters, actuaries, claims people, really distinguishes us in the market as being really a primary platform for the program business relative to peers.

而且我認為我們與領先的承銷商、精算師、理賠人員建立的團隊確實使我們在市場上脫穎而出，因為相對於同行，我們確實是程序業務的主要平台。

So again, we feel very confident that, that business will continue to scale. We are attracting high-quality partners and seeing a very, very deep pipeline of opportunities approaching us in the future.

因此，我們再次非常有信心，該業務將繼續擴大規模。我們正在吸引高質量的合作夥伴，並看到未來會有非常非常多的機會向我們走來。

So with that, I'll turn it over to David on the unsigned surplus.

因此，我會將未簽名的盈餘交給大衛。

Sure. Thanks for the question. So unsigned surplus is about $75 million negative at the end of the year. It actually would have been positive had not been for the repurchase of the surplus notes, which are carried on a statutory basis at their par amount, not their par plus accrued amount.

當然。謝謝你的問題。因此，年底未簽署的盈餘約為負 7500 萬美元。如果沒有回購盈餘票據，這實際上是積極的，盈餘票據是在法定基礎上按面值計算的，而不是面值加應計金額。

So while we don't provide financial projections of earnings and retained earnings for the future, certainly, our objective is to continue to deleverage and derisk the balance sheet of AAC as part of our broader strategic initiatives. And as certainly as part of that, we would expect to continue to grow both the size and quality of the surplus.

因此，雖然我們不提供未來收益和留存收益的財務預測，但我們的目標當然是繼續去槓桿化 AAC 的資產負債表並降低風險，作為我們更廣泛的戰略舉措的一部分。作為其中的一部分，我們肯定會期望繼續增加盈餘的規模和質量。

And the factors that will go into the timing of that unassigned surplus becoming positive will include, of course, the earnings power of the business but also our capital management activities, including any future debt transactions and derisking transactions. So there's a bit of timing to the magic of when that number may become positive in the future.

影響未分配盈餘變為正值的因素當然包括企業的盈利能力，以及我們的資本管理活動，包括任何未來的債務交易和去風險交易。因此，這個數字在未來何時可能變為正數，這有一些神奇的時機。

Fair enough. And then Claude, just a follow-up with Cirrata Obviously, you've done all trends, you did Capacity Marine and you're looking at a lot of things. I appreciate it's hard to say what opportunities you're seeing, but perhaps are there certain areas where Cirrata is just not interested. What don't you want to get into as much as what might be attractive?

很公平。然後克勞德，只是跟進 Cirrata 顯然，你已經完成了所有趨勢，你做了 Capacity Marine 並且你正在研究很多東西。我很高興很難說您看到了哪些機會，但也許 Cirrata 對某些領域不感興趣。什麼是你不想涉足的，什麼可能是有吸引力的？

I think we have a relatively broad appetite at Cirrata and we certainly are focused on MGU, MGA as well as wholesale. We're not focused, obviously, on the retail brokerage side. But I think fundamentally, what's core to platforms in Cirrata is really their underwriting performance and distribution performance. We are really looking at each of our MGA partners at Cirrata and that goes as well as program partners for Everspan for platforms that are very strong in the underwriting area that we believe and we can assess the viability, both in the hard markets that we're in today, but also longer term in the soft market.

我認為我們對 Cirrata 的興趣相對廣泛，我們當然專注於 MGU、MGA 以及批發。顯然，我們並不專注於零售經紀業務。但我認為，從根本上說，Cirrata 平台的核心實際上是它們的承保性能和分銷性能。我們真的在關注我們在 Cirrata 的每個 MGA 合作夥伴，以及 Everspan 的項目合作夥伴，我們相信這些平台在我們認為的承保領域非常強大，我們可以評估其可行性，無論是在我們認為的硬市場中重新進入今天，但也將長期處於疲軟的市場中。

So we have fundamental criteria we look at that are -- we follow very carefully in evaluating opportunities. And we also look at areas where we see strong synergies as between our MGA partners and distribution partners and also potential synergies with Everspan. So those are other categories and areas that we would focus on in terms of identifying good opportunities at Cirrata.

所以我們有我們看的基本標準——我們在評估機會時非常仔細地遵循。我們還關注我們在 MGA 合作夥伴和分銷合作夥伴之間看到強大協同效應的領域，以及與 Everspan 的潛在協同效應。因此，這些是我們在 Cirrata 確定良好機會方面將關注的其他類別和領域。

Thank you. (Operator Instructions) As there are no further questions at this time. This concludes today's teleconference. We thank you for participating. You may disconnect your lines at this time. Thank you for your participation.

謝謝。 （操作員說明）因為目前沒有其他問題。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。感謝您的參與。