Good morning, ladies and gentlemen, and welcome to Ambac Financial Group’s Third Quarter 2023 Earnings Conference Call. I’m Charles Joseph Sebaski, the Head of Investor Relations, and I’m delighted to be your host for today’s call.
During our call today, you will hear from our President and CEO, Claude LeBlanc, and our Chief Financial Officer, David Trick, who will discuss our company’s financial results and the current market environment. After their prepared remarks, we’ll be taking your questions.
As a reminder, 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.
We may also mention some non-GAAP financial measures, and reconciliations to those non-GAAP measures are included in our recent earnings press release, operating supplement, and other materials in our Investors section on our website, ambac.com.
Now I’ll turn the call over to Mr. Claude LeBlanc to provide an update on our achievements for the quarter.
Thank you, Chuck. I am pleased to report that Ambac had a very strong third quarter. We completed the evaluation of the strategic options for the Legacy Financial Guarantee business and at the same time, recorded very strong financial results across all of our businesses.
The results generated by our core P&C franchise was squarely on track to achieve our stated 2023 strategic goals, including Everspan achieving initial profitability in the second half of this year. Our consolidated financial results for the third quarter included net income of $66 million and adjusted net income of $94 million. We also completed repurchases for just over 120,000 common shares.
With respect to our core Specialty P&C business, we continue to record significant top and bottom line growth as Everspan and Cirrata scale their respective business platforms. This quarter, on a combined basis, these platforms generated over $140 million of premium production, a 140% increase over the prior year’s quarter.
In addition, both businesses generated positive net income for the quarter. For 2024, we have provided our preliminary guidance for our P&C businesses, Everspan and Cirrata, where on a combined basis, we are now forecasting over $700 million of premium production with attractive margins. This quarter, Everspan continued its upward trajectory generating gross premium written of $77 million, which was up 160% over the third quarter of the prior year. The company continues to expand and diversify its MGA program partners, which currently stand at 20, up from 13 programs a year ago.
On the other hand, Cirrata had a strong quarter, generating $62 million of premium, up 119% over the prior year, which produced nearly $4 million of EBITDA. Cirrata is on track to exceed its 2023 target premium of $200 million and $45 billion of gross revenue, while maintaining attractive margins. Looking ahead to 2024, without the addition of any acquisitions, we are targeting over $300 million of premium and $60 million of gross revenue, while maintaining our 20% plus EBITDA margins.
Now, I will turn the call over to David to discuss our financial results for the quarter.
Thank you, Claude, and good morning, everyone. For the third quarter of 2023, Ambac is happy to report net income of $66 million or $1.41 per diluted share compared to net income of $340 million or $7.41 per diluted share in the third quarter of 2022. Adjusted net income was $94 million or $2 per diluted share compared to an adjusted net income of $339 million or $7.40 per diluted share in the third quarter of 2022. The change in net income and adjusted net income for the third quarter of 2023 compared to the third quarter of 2022 was mainly driven by the $319 million RMBS litigation gain related to the settlement with Bank of America recognized in the prior year period.
These favorable results were driven by improved RMBS recoveries and higher loss reserve discount rates and favorable investment results, emanating from our Legacy Financial Guarantee segment as well as growth within our Specialty Property and Casualty and Insurance distribution segment. Everspan’s net premiums written in the quarter of $25 million were up 341% over…
