Exhibit 99.09

Exposure to Hurricane Katrina

Updated September 30, 2005

Included in Table I below is a breakout of Ambac’s Hurricane Katrina loss provision as of September 30, 2005. In determining our loss estimate, our analysis has considered the unprecedented nature of the disaster, including the displacement of the communities’ residents, and the unique aspects of each insured bond, such as the nature of the revenue source, the level of debt service reserves, if any, and other transaction protections. Ambac’s estimate of losses related to the hurricane was made without regard to any potential, federal, state or local government assistance to individual municipalities or institutions. The credit loss estimation process involves the exercise of considerable judgment. Due to the nature of the loss reserve estimate, Ambac’s ultimate actual loss associated with the hurricane may be materially different than the current estimate and thereby may affect future operating results. Ambac will continue to assess the impact of Hurricane Katrina on subsequent periods as more information becomes available to us. As of September 30, 2005, all of the credits included in the provision are classified as Public Finance, however none are healthcare related. Ambac does not have material exposure to credits adversely affected by Hurricane Rita.

Table I

Ambac’s Loss Estimate Broken Out by Region

September 30, 2005 ($ millions)

Region	# of Issues	Net Par Outstanding		Total Reserve Estimate
Louisiana	22	$	869	$	75
Mississippi/Alabama	13		226		17
Total	35	$	1,095	$	92

Included in Table II below is information related to Ambac’s Public Finance exposure to FEMA-designated counties (designated for the combined category of individual and public assistance as of 9/9/05) within the three states – Louisiana, Mississippi and Alabama, broken out by bond type, including our exposure to the region of Greater New Orleans separately. Table III lists Ambac’s exposure to the three New Orleans parishes that make up Greater New Orleans. Table IV lists Ambac’s exposure to investor-owned utilities within all counties of the three affected states. It is too early to determine the effect the storm will have on the underlying credit quality of the Public Finance and IOU exposures within these states. All of the Ambac-insured hospitals in the region are currently up and running.

Table II

Ambac’s Public Finance Exposure in FEMA-Designated Counties

as of September 30, 2005 ($000)

Bond Type	Alabama		Greater New Orleans		Other Louisiana		Mississippi		Total
General obligation	$	523,928	$	372,029	$	354,340	$	414,334	$	1,664,631
Leases and tax backed		92,257		814,789		341,560		36,817		1,285,423
University		105,573		235,248		126,817		197,241		664,879
Utility		97,481		—		116,440		56,363		270,284
Transportation		—		176,342		—		56,997		233,339
Health care		68,750		—		105,034		13,684		187,468
Other		—		49,000		675		—		49,675
Grand Total	$	887,988	$	1,647,407	$	1,044,866	$	775,437	$	4,355,699
Scheduled D/S due (10/1/05-12/31/05)		14,276		34,637		44,904		18,629		112,446
Scheduled D/S due (1/1/06-12/31/06)		86,142		140,797		167,665		68,156		462,759

Table III

Ambac’s Public Finance Exposure in Greater New Orleans

Net Par as of September 30, 2005 ($000)

Bond Type	Orleans		Jefferson		St. Bernard		Total
General obligation	$	324,314	$	41,410	$	6,305	$	372,029
Leases and tax backed		368,090		446,698		—		814,789
University		235,248		—		—		235,248
Utility		—		—		—		—
Transportation		176,342		—		—		176,342
Health care		—		—		—		—
Other		—		49,000		—		49,000
Grand Total	$	1,103,994	$	537,108	$	6,305	$	1,647,407

Table IV

Ambac’s Investor-Owned Utility Exposure in Alabama, Louisiana and Mississippi

Net Par as of July 31, 2005 ($000)

	Alabama		Louisiana		Mississippi		Total
Investor-owned utilities	$	97,955	$	220,779	$	109,030	$	427,764

Included within the Tables V and VI below is information related to Ambac’s estimated current exposures to asset-backed bonds collateralized by mortgages on residential homes and manufactured housing located in the FEMA-designated counties and New Orleans. The amounts shown represent the estimated portions of larger, geographically diversified securitizations. Ambac does not have exposure to manufactured housing securitizations in Greater New Orleans. The impact on each transaction will be affected by the concentration of loans within the three states, the level of flood/hurricane or other insurance coverage on impacted homes within the pool and the amount of federal relief provided, if any. It is too early to determine the effect the storm will have on our MBS/MH exposures within these three states.

Table V

MBS Securitization Pools

(Total Net Par $45.7B)

	Net Par ($Millions)		% Total MBS Net Par
Alabama	$	131	0.3
New Orleans		44	0.1
Other Louisiana		219	0.5
Mississippi		156	0.3
Total	$	550	1.1

Table VI

Manufactured Housing Securitization Pools

(Total Net Par = $1.1B)

	Net Par ($Millions)		% Total MH Net Par
Alabama	$	10	0.9
Louisiana		12	1.1
Mississippi		18	1.7
Total	$	40	3.7