NEW YORK (TheStreet) -- Ambac Financial Group (AMBC) - Get Report is trading higher on Tuesday after posting better-than-expected quarterly earnings a day earlier.

By midafternoon, shares had added 5.2% to $34.82. Trading volume of 2.4 million was more than double its three-month daily average.

The financial holdings company, which emerged from bankruptcy in May last year, reported net income of $1.49 in the three months to December. Analysts surveyed by Thomson Reuters had expected earnings of $1.21 a share.

Total revenue of $166.98 million were higher than consensus of $161.6 million.

For the full year, the company earned $10.91 a share on $581.05 million in revenue before expenses and reorganization items.

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