Ambac Financial Group (AMBC) reported net income in the first quarter 2014 was $155.9 million, or $3.31 per diluted share, compared with $282.3 million, or $0.93 per diluted share, in the first quarter 2013.

During the same periods, operating earnings were $176.6 million, or $3.75 per diluted share compared with $297.4 million, or $0.98 per diluted share.

Ambac is a holding company whose subsidiaries, including Ambac Assurance Corporation, provide financial guarantees and other financial services to clients in both the public and private sectors globally.

"We are pleased to report another quarter of solid financial results. Our efforts in the first quarter remained focused on carrying out our value creation initiatives, which included the acquisition of approximately $280 million par of student loan securities in anticipation of commuting the associated expected future losses,” said Diana N. Adams, President and Chief Executive Officer. “This purchase is another step forward in our strategy to pursue opportunities for loss mitigation through proactive management of our insurance and investment portfolios."

For the first quarter of 2014, net premiums earned were $82.5 million, as compared to $100.3 million in the first quarter of 2013. The decrease in net premiums earned was primarily driven by decreases in public finance and structured finance normal earned premiums resulting from the run-off of the associated insured portfolios. In addition, accelerated premiums earned decreased as a result of lower public finance and structured finance refundings, partially offset by an increase in international accelerated premiums.