Greetings, and welcome to Ambac Financial Group, Incorporated Third Quarter 2021 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Miss. Lisa Kampf, Head of Investor Relations; Claude LeBlanc, Chief Executive Officer; and David Trick, Chief Financial Officer. I will now turn the call over to Lisa. Lisa is your line on mute?

Thank you. Good morning. And thank you all for joining today’s conference call to discuss Ambac Financial Group’s Third Quarter 2021 Financial Results. We’d like to remind you that today’s presentation may contain forward-looking statements about our business, including but not limited to new business, credit outlook, market conditions, credit spreads, financial ratings, cost reserves, loss mitigation, loss recovery, investment returns or other returns that may affect our future results. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Any forward-looking statements are not guarantees of future performance as events. Actual performance and events may differ possibly materially from such forward-looking statements. Factors that could cause this includes the factors described in our most recent SEC filed quarterly or annual reports under management discussion and analysis of financial condition and results of operations and under “Risk Factor” and that is not under any obligation and expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Today's presentation contains non-GAAP financial measures. Reconciliations of such measures to the most comparable GAAP figures are included in our earnings press release, which is available on our website@ambac.com. Please note the presentations have been posted to the events and presentations section of our IR website, which support our comments today. I would now like to turn the call over to Mr. Claude LeBlanc.

Thank you, Lisa, and welcome to everyone joining us on today's call. I am very pleased with our third quarter results, which were primarily driven by positive credit development in our structured finance and public finance and short portfolios. Net income for the quarter was $17 million or $0.35 per diluted share and adjusted income was $25 million or $0.53 per diluted share. David will discuss our financial results in more detail in a moment. As we approach the end of 2021, we have demonstrated significant progress in the act of de-risking real legacy financial guarantee portfolios, the further rationalization of our capital structure via the refinancing of our senior notes and the continued growth and expansion of our new specialty property casualty program insurance business. Taking a closer look at our new specialty P&C business, starting with Everspan our specialty P&C insurance platform, which anchors Pillar I of our strategy. Since its launch in February, Everspan has continued to make material progress on all key growth and value metrics. Everspan indemnity or surplus lines carrier is currently authorized for excess and surplus lines and all 50 states and is whitelisted in 45 states that either maintain or have a de facto registry. Everspan insurance company, our admitted carrier now has full P&C authority in 45 jurisdictions, including California. We are working to secure authority in the few remaining states in the near term. Since its launch, Everspan Group has built a robust program pipeline across various classes of business through multiple distribution sources and has signed up and is currently writing for three program partners. The most recent being Cover Whale and Insurtech focus on the commercial auto space. Everspan is poised to launch a number of additional programs in the fourth quarter. Everspan Group has also expanded its…

Thank you Claude, and good morning, everyone. For the third quarter of 2021 Ambac reported net income of $17 million or $0.35 per diluted share, compared to a net loss of $29 million, or $0.63 per diluted share in the second quarter of 2021. Adjusted income for the third quarter was $25 million or $0.53 per diluted share, compared to an adjusted loss of $13 million or $0.30 per diluted share in the second quarter. The difference between adjusted earnings and GAAP net income relates mostly to the exclusion of 10 million of insurance and tangible amortization from adjusted income. Net income for the third quarter, as compared to the second quarter was primarily driven by a greater loss and loss expense benefit, gains on interest rate derivatives and a lower provision for income taxes. These improvements were partially offset by lower net investment income from pooled funds. Briefly turning to some highlights. Premiums earned or $11 million in both the third and second quarters. Lower normal premiums earned were driven by the continued organic and proactive reduction of the financial guarantee insurance portfolio offset by an increase in accelerated premium related to proactive derisking. Everspan contributed modestly to earned premiums, but at exponential growth rate. Investment income for the third quarter was $21 million, down from $42 million in the second quarter. Income from the available sale portfolio declined to $15 million in the third quarter from $22 million in the second quarter, as a result of the July redemption of the Ambac LSNI secured notes held in the investment portfolio. Excluding the impact of the LSNI redemption, which was more than offset by a reduction to interest expense income from the available for sale portfolio, was relatively unchanged during the quarter. Income from pooled funds totaled $6 million…

Thank you, David. In closing, we believe Ambac is well positioned to scale a sustainable diversified specialty P&C program insurance platform while we continue to progress the active runoff of our legacy financial guarantees businesses. Our key value drivers include one; material capital at the holding company, which remains unlevered. Two, our differentiated P&C platform encompassing capital light, fee base, growth oriented businesses that can leverage Ambac’s business services infrastructure, and our substantial NOLs. And lastly, the resolution of near-to-midterm catalysts with the goal of further stabilizing our legacy financial guarantee business, and providing us with greater optionality and clarity surrounding capital movement through our holding company. I'm excited about the progress we have made and the future ahead as we look to further expand and grow our platform. Operator, please open the call for questions.

Thank you. There are no questions at this time. This concludes today's conference. You may disconnect your lines. Thank you for your participation.