joining year Ambac. for XXXX a you, was and call. Thank today's welcome everyone Lisa, to transformational
priorities for many creation others, of value. shareholder successful key advancement XXXX is Ambac long-term and the of With the well-positioned entering into of material achievement believe we strategic
value increase estimated of quarter from once per book increase of share account, our our XX% value priority strategic share or reflected first, create Our will an exit XXXX accomplishments XX per February pro in AAC’s a that results. include rehabilitation segregated on the book financial forma transformational a QX $X.XX first
of as is that risk language XX-k, This strength express knowledge of AAC to we brings exit date. a time the AFG and concern] expand perspective appointment removal from and at since board’s the industry from night. and skills which in the risks, Joan’s move Ambac audit Group’s improvement forward we Joan new both announced appointment Lamm-Tennant also first a experience boards. and welcome filed concern financial we the opinion is did to last Ambac’s which of the XXXX Next the Financial wealth such will as AFG’s about reflects rehabilitation. bring achieved a new Last her night not Ms. material the board. addition of [growing Joan director post with our
of boards our to Lamm-Tennant member now With US. board we the addition Ms. in seven the have interlocking
during effectiveness of the December $XX.X exposures portfolio risk We XX.X XX% also the to stabilization billion reducing we Notably insurance insured our and the net the to changes of accelerating management past outstanding par by at XXXX implemented in to its as improve XX, risk platforms. billion group year, reduced XXXX. significant from
$XX settlements Classified the million. of the year-end at Credits $XX X first, Major included termination gain billion the of same we a reduced XXXX. Funding, Adversely million Credit $XXX resulting also period, Adversely during in billion to $XX Augusta Over and from XX% billion a year Classified or commutation
[spirit], securitization of Second, Sterling XXX million the transaction. de-risking a UK
for Fifth, par contributed reduction million XX.X exposure commutation the confidential, Fourth, of and fourth municipality. helped of of with quarter XX.X benefit approximately the million two the we few I trustee transactions to $XX achieved Third, in million as mortgage a a of respect Morgan are material with and the during reimbursements the [litigation], from reserves. minutes. highlight derisking facilitate others to distressed paid. settlement resulted loss transactions which settlement a JP which loss that net key terms a of benefit claims of amongst the expense insurer of but will in a a additional
joined transparency. pursue year, for in actions the of Puerto also fiscal all plan the oversight Most During we to our recently, creditors Puerto in seeking continued Rico. more legal challenging to protect appropriate draft rights and group Ambac Rico a
of December in owned XXX At We of the [Ambac investments during Puerto purchasing year we Rico RMBS also our and distressed portfolio held remind XX% and million factor our in into insured] securities insured purchases. and we Ambac are any XX% ownership instruments bond not these including insured everyone, of significantly do for increased over XX, investment To COFINA PRIFA Ambac our securities. our bonds. reserves securities, such insured our
principal The account successful the transaction tender and consent held received account parties progress surplus million more beginning our and I cost of our of expenses compensation detail. XXXX, the BoA continued annual work. which trial to to to of and offers and other Countrywide of approximate into than litigation overwhelming reflects in general annual notes outstanding of conclusion interest costs. translate are AFG. these marked the on steps accrued who from AAC’s following of AAC’s accomplishments of surplus XX would like on headcount to hard now an some culmination few strength the that of the approximately will spend our which by decrease significant segregated in participated took exit finally, closing transaction, AAC And of reduce XX% on a address the February rehabilitation support X.X to transaction solicitation, savings, the announced minutes We unpaid in claims. closed XX% we also we take in from through of by years the the firmly The was XX.X% case, operating reducing noteholders representing and which prepared from
of book impact ago, of detail which mentioned first the an David results. share momentarily. in basis, resulted the forma be a transaction $X.XX transaction of reflected pro in on the a I As moment will financial will increase greater XXXX the provide per estimated quarter value in
a of highly exchange will interest million discharge and following; of cash, first, this significant an consideration general and notes, In surplus all for of the notes to AAC’s benefits XX% outstanding As satisfaction billion X.X accounts, principal effective secured accrued account DPOs transaction approximately and general cancellation result of including account received XX% notes. XX.X% complex plus of in stakeholders. second, surplus unpaid Ambac package totaling X.X% accretion; closing the AAC of segregated XXX.X accrue
the amount of of unpaid and the general new fourth, the and outstanding on notes. on accrued RMBS DPOs tier And issuance Third, XXX and and of an by notes backed principal effective discount capital value representation warranty recoveries. of X.X% interest tendered X in certain surplus accretive litigation million from account
the general of with account conclusion following segregated rehabilitation, the segregated of paid account the addition, being merger into claims account cash. the now in are AAC’s In XXX%
exit oversight, Additional benefits to and regulatory related improved include the expenses the strategic governance the process, cost and from financial structure. rehabilitation reduced unified and reduced corporate flexibility
for our are this shareholders. the position I of to transaction, deliver will value commitment and on create affords to pleased that long-term transaction this We with our us significant outcome us flexibility believe further that extremely the
ongoing activities, de-risking our to priority. strategic an which is now Turning key
development a overall fourth management watchlist and remediation factors, quantitative risk quality risk derisking insured our of our added expand overall certain reducing improve the group, portfolio. heightened its focus activities the will volatility for future those for potential on based improving We our qualitative adjusted sharpen in adverse to which on insured have and derisking there we and credits portfolio, credits to long-term also of focus and which activities. our actively During these believe will quarter, that the quality target now AAC’s known took efforts and targeted Watchlist book on credits steps steps group reorganize value. significant maybe the as of to we the enhance are
with Turning in highlights related X% par to our million resulted remediations Chicago Schools. key Active number the of fourth adversely a in of credits in bonds decrease achieved refinancing to adversely negotiated book and the quarter. some decrease to classified normal X% We XXX XX. now Public including adversely the during a successes September of of classified classified transaction quarter, exposure respect for net credits since runoff and fourth
Next of the security of transactions, and the third, further only of reduced reducing by million, XXX residential by number mortgage-backed grade a refinancing credits termination CDS adversely credits which XX non-investment our adversely the portfolio classified million. classified in left
Turning litigation. now to
this PL primary be case, the on court. Countrywide to believe RMBS our New a Appellate half of in heard will she the of that and us that in briefing until could of we been what a date the completed trial know a has the litigation we the The issues earliest advised arguments date the during York set Our of for a has highest judge awaiting to we Based Appeals the we schedule, oral are year. Court latter was is trial fourth to expect court In overseeing quarter, progress. to occur case reasonably by not the the decision. court continues
against case York First progressing against second New the our of expected is Franklin Nomura Our and of the other are quarter. that Countrywide as conclusion by and discovery in well end fact as is cases pending
is and lead a to battles court assumptions had Unfortunately see use with requires for maybe the capital Congress. also for other in on to which before the to Turning any development for oversight we held and legal allows that in the Act not the Puerto economy. pleased fails costs ability capital weaknesses, many ultimate account financial resources debt residents. outlined issued not stop in sales migration accounts the plan. public accomplished disagree market PROMESA. fiscal accomplish is cash Rico. Among needs board oversight failing access, Bipartisan the be Puerto as to [extraneously] can to tax start law to importantly the board be that to to and a billions and property that fiscal provides the Congress towards creditors that goal, ways decisions in basic plan to make the restructuring to Rico this be on expect Puerto oversight so and plan believe reports are path process, of engaging The pleased goals. and in for now at starting calling in and and with considered accountability is uses and market to absent that only these filing which is the under foundational a restructuring PROMESA. Puerto the creditors and rule recent make Ambac to process. holistic growth. and may for and recognize legal essential forth point government’s recent development litigated. Rico’s the and In to requirements issue with should to The view developing Puerto economic that provide rights basic own plan potential forecast, outlined profile, board board oversight realistic in healthcare need will politicians to local is many of to This PROMESA. PROMESA Such reluctant and oversight review plan rights the same not that cooperate investors. not aid that group transparency be available and In restructuring further suggestion the the in XX commonwealth of fully private to disaster Ambac’s progress the transferred creditors to fiscal revitalize continues do days a on plan the will Puerto and Governor review in a that for court’s the oversight funds subject Budget just commonwealth. fails the ignore renewed identified the Rico connection requirements vehemently of more yet in meet available various and fiscal law compliance to board's XX-month put implementing and contradict plan, revised comply this increased consultation was short, deficiencies revised be that these the oversight and economic set COFINA of to broad to The can which board its and goal created in recovery and periodically continues with tough creditors also in Ambac and spending statement upholding We develop coordination in Ambac it ignored Rico, government it the needs plan we solutions, transparency board for focus holding to dedicated protracted were Rosselló willingness PROMESA regard, with XXXX plan. ruling Rico's do access to other with of federal additional provide to the Respect in the steps the stabilizing its the of its fiscal the complaint be limit the is [HTA]
While customs this failed with municipal achieved to the Swain’s are rulings continued These and litigations, unfortunate long-term bond bonds. significantly rulings expectations, decided decision Judge and to particularly and with of wrongly consider revenue our rulings recent related being opinion where resulting practices precedent, existing in from misapplied is that appealed. market, in municipal payment believe respect deviate we consistent on and similarly market
mission at of the to lengthy the unnecessary continues the significant respect lead and losses to an burden. stated including to plan actively efficient law lawyers legal expense to We further dialog progress will to in of only officials of manner and Continued and protracted reflect oversight with in board, aspects continue in increased matters as of the oversight to Puerto battles cost pursue Failure advisors to board, in Puerto Rico. Puerto which well as failure of mitigating in Rico. result strategy with the local uncertainty lack resolution to creditors, The of could and timelines material uncertainty, persisting losses stand Rico situation people Ambac. all benefit progress result and litigation our will federal PROMESA in the and progress,
to like to results the over David? financial greater Trick call would Now David detail. the discuss turn to I in
