Financial Data and Key Metrics Changes - Adjusted operating income per share for Q2 2024 was $1.44, more than double the $0.60 reported in Q2 2023 [7][24] - Shareholders' equity rose 16%, adjusted operating shareholders' equity rose 15%, and adjusted book value rose 12% since June 30, 2023 [8] - The insurance segment contributed $116 million of adjusted operating income in Q2 2024, up from $106 million in Q2 2023 [24] Business Line Data and Key Metrics Changes - New business production for the first half of 2024 was $218 million, the largest amount since 2009, with strong diversification across U.S. public finance, international infrastructure, and global structured finance [8][17] - Bond insurance penetration was 8.2% for the first half and 8.9% for Q2 2024, indicating increased demand for bond insurance [18] - Assured Guaranty issued $10.8 billion of primary insurance, representing 56% of the insured par sold in the primary market for the first half of 2024, an 11% year-over-year increase [19] Market Data and Key Metrics Changes - The company maintained a market leadership position with a primary market share of 58% in Q2 2024, reflecting a 13% year-over-year increase in insured primary market par sold [19] - Non-U.S. public finance produced $34 million of PVP in the first half of 2024, consistent with the previous year [21] Company Strategy and Development Direction - The merger of Assured Guaranty Municipal into Assured Guaranty Inc. aims to achieve more efficient capital utilization and increase operational efficiencies [9][10] - The company remains committed to a share repurchase program with a target of $500 million for the year, having repurchased 7.2% of outstanding shares as of August 6, 2024 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the favorable ruling in the restructuring case of Puerto Rico's Electric Power Authority, which is expected to positively impact future recoveries [14][32] - The company highlighted the importance of its insurance products in providing value to investors amid economic and geopolitical uncertainties [15][16] Other Important Information - The company reported no loss expense in Q2 2024 compared to $44 million in Q2 2023, with deferred premium revenue remaining strong at $3.9 billion [24][26] - The company has approximately $308 million in cash and investments, with $55 million residing in AGL [28] Q&A Session Summary Question: Impact of PREPA court ruling on loss reserves - Management acknowledged the ruling as favorable but noted the need for prudent reserving due to ongoing appeals and mediation processes [32][33] Question: Plans for excess liquidity after capital releases - Management indicated that excess liquidity would primarily be used for share repurchases, while also considering potential acquisition opportunities [34][35] Question: Long-term capital strategy - Management stated that the focus remains on executing the $500 million buyback strategy while evaluating other accretive opportunities [39][40] Question: Opportunities in structured finance and international markets - Management confirmed seeing significant opportunities in structured finance and international infrastructure, with early successes noted in Australia [41][43] Question: Health care issues and protections - Management discussed the pressures faced in health care deals due to COVID and inflation but expressed confidence in the protections and covenants in place [46][47] Question: ROE impact from excess capital - Management acknowledged that excess capital dilutes ROE but emphasized plans to address this over the near term through growth and capital management strategies [48][50]

Economic Indicators - The Company reported a real GDP increase of 2.8% for Q2 2024, up from 1.4% in Q1 2024, indicating a more robust economic environment [420]. - The U.S. unemployment rate rose to 4.1% by the end of June 2024, compared to 3.8% at the end of Q1 2024, which may affect the default risk of insured obligations [420]. - The inflation rate in the U.S. was 3.0% for the 12 months ending June 2024, down from 3.5% for the previous period, suggesting a potential easing of inflationary pressures [421]. - The Federal Open Market Committee maintained the federal funds rate at 5.25% to 5.50% since July 2023, indicating a cautious approach to monetary policy amid inflation concerns [422]. Market Trends - The average 30-year AAA Municipal Market Data rate was 3.82% for Q2 2024, higher than 3.57% in Q1 2024 and 3.41% in Q2 2023, reflecting rising interest rates in the municipal bond market [424]. - The credit spread between 30-year BBB-rated general obligation bonds and 30-year AAA MMD averaged 90 basis points in Q2 2024, slightly narrower than the previous quarter [424]. - Existing-home sales decreased by 5.4% year-over-year from June 2023 to June 2024, while the median existing-home sales price increased by 4.1% during the same period [425]. Business Strategies - The Company is pursuing key business strategies in insurance, asset management, and capital management to enhance its market position [426]. - The Company aims to grow its financial guaranty insurance portfolio through new business production in public finance and structured finance markets, driven by increased demand for bond insurance due to high-profile defaults and the COVID-19 pandemic [428]. - The Company considers opportunities to acquire financial guaranty portfolios to improve future earnings and deploy excess capital [435]. Financial Performance - Net income attributable to Assured Guaranty Ltd. (AGL) for Q2 2024 was $78 million, down from $125 million in Q2 2023, reflecting a decrease of 37.6% [461]. - Adjusted operating income for Q2 2024 increased to $80 million from $36 million in Q2 2023, representing a growth of 122.2% [464]. - Gross written premiums (GWP) in the insurance segment rose to $132 million in Q2 2024, compared to $95 million in Q2 2023, an increase of 39.5% [461]. - Total revenues for the six months ended June 30, 2024, were $447 million, down from $643 million in the same period of 2023, a decline of 30.5% [461]. - Shareholders' equity attributable to AGL as of June 30, 2024, was $5,539 million, a decrease from $5,713 million as of December 31, 2023, reflecting a reduction of 3.0% [466]. - Adjusted book value per share increased to $161.65 as of June 30, 2024, compared to $155.92 as of December 31, 2023, an increase of 3.7% [467]. Investment and Capital Management - The Company has repurchased 148 million common shares for approximately $5.2 billion since 2013, representing about 76% of the total shares outstanding at the beginning of the repurchase program [449]. - The Company expects to invest an aggregate of $1.5 billion in alternative investments, including $1 billion in Sound Point managed investments, enhancing its alternative investment opportunities [447]. - The Company has developed strategies to efficiently manage capital, including the issuance of $350 million in Senior Notes due in 2028 [454]. Insurance Segment Performance - Insurance segment total revenues for Q2 2024 were $189 million, a decrease of 15.6% from $224 million in Q2 2023 [478]. - Net earned premiums and credit derivative revenues for the first six months of 2024 increased to $209 million, up 21.5% from $172 million in the same period of 2023 [478]. - The company's adjusted operating income for the insurance segment was $116 million in Q2 2024, compared to $106 million in Q2 2023, reflecting a 9.4% increase [478]. - Gross written premiums (GWP) for U.S. public finance in Q2 2024 were $103 million, a 32.1% increase from $78 million in Q2 2023 [489]. - The company's penetration of the total U.S. municipal market insured issuance was 58% in Q2 2024, down from 64% in Q2 2023 [491]. Loss Mitigation and Economic Impact - The fair value of Loss Mitigation Securities as of June 30, 2024, was $465 million, aimed at mitigating the economic effect of insured losses [444]. - The company reported a loss and LAE benefit of $(2) million in Q2 2024, compared to a loss of $55 million in Q2 2023 [461]. - The total insurance segment loss expense for Q2 2024 was $0 million, compared to $44 million in Q2 2023 [533]. Liquidity and Debt Management - AGL and its U.S. Holding Companies maintain a liquid asset balance of 1.5 times stressed operating company net cash flows [604]. - Management believes AGL will have sufficient liquidity to meet its needs over the next twelve months [604]. - The company has outstanding long-term debt obligations, including principal and interest on debt issued by AGUS and AGMH [605]. - AGL plans to fund acquisitions of new businesses and make capital investments in operating subsidiaries [605]. Other Financial Metrics - The effective tax rate for Q2 2024 was 14.5%, compared to 12.6% in Q2 2023 [461]. - Net investment income for Q2 2024 was $81 million, down from $89 million in Q2 2023, a decrease of 9.0% [461]. - The company reported net realized investment losses of $6 million in Q2 2024, compared to losses of $9 million in Q2 2023 [555]. - The total long-term debt obligations include dividends on AGL's common shares and payment of operating expenses [605].

Assured Guaranty (AGO) came out with quarterly earnings of $1.44 per share, missing the Zacks Consensus Estimate of $1.47 per share. This compares to earnings of $0.60 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.04%. A quarter ago, it was expected that this insurance holding company would post earnings of $1.41 per share when it actually produced earnings of $1.96, delivering a surprise of 39.01%.Over the last four quar ...

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include: (i) ...

domoskanonos/iStock via Getty Images Assured Guaranty Ltd. (NYSE:AGO) is the leading bond insurance company in the United States, and despite a robust rally in stock price, the stock still trades at a material discount to intrinsic value. The company has painstakingly worked through the Puerto Rico debt restructuring for nearly a decade, and despite paying heavy claims, the company remains in arguably its best financial position in its history. Higher interest rates have created more opportunity for bond ...

Assured Guaranty (AGO) closed the last trading session at $77.43, gaining 0.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $97 indicates a 25.3% upside potential.The average comprises four short-term price targets ranging from a low of $84 to a high of $110, with a standard deviation of $11.37. While the lowest estimate indicates an increase of 8.5% from the current price level ...

Assured Guaranty Ltd. (NYSE:AGO) Q1 2024 Results Conference Call May 8, 2024 8:00 AM ET Company Participants Robert Tucker - Senior Managing Director-Investor Relations and Corporate Communications Dominic Frederico - President and Chief Executive Officer Rob Bailenson - Chief Operating Officer Ben Rosenblum - Chief Financial Officer Conference Call Participants Tommy McJoynt - KBW Operator Good morning, and welcome to the Assured Guaranty Limited First Quarter 2024 Earnings Conference Call. My name is Carl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-Q ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition Period from to Commission File No. 001-32141 ASSURED GUARANTY LTD. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation) (I.R.S. employer identifi ...

Assured Guaranty (AGO) came out with quarterly earnings of $1.96 per share, beating the Zacks Consensus Estimate of $1.41 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 39.01%. A quarter ago, it was expected that this insurance holding company would post earnings of $1.01 per share when it actually produced earnings of $5.75, delivering a surprise of 469.31%.Over the last four qua ...

Assured Guaranty Ltd. March 31, 2024 Financial Supplement | Table of Contents | Page | | --- | --- | | Selected Financial Highlights | 1 | | Condensed Consolidated Statements of Operations (unaudited) | 3 | | Condensed Consolidated Balance Sheets (unaudited) | 4 | | Selected Financial Highlights GAAP to Non-GAAP Reconciliations | 5 | | Income Components | 8 | | Fixed-Maturity Securities, Short-Term Investments and Cash | 10 | | Investment Portfolio, Cash and CIVs | 11 | | Income from Investment Portfolio an ...