Assured Guaranty(AGO) - 2024 Q4 - Annual Results

Financial Performance - Net income attributable to Assured Guaranty Ltd. for Q4 2024 was $18 million, a decrease of 95.2% from$ 376 million in Q4 2023[6]. - Adjusted operating income for Q4 2024 was $66 million, down 80.5% from$ 338 million in Q4 2023[6]. - The company reported a diluted earnings per share of $0.35 for Q4 2024, a significant decrease from$ 6.40 in Q4 2023[6]. - Total revenues for the year ended December 31, 2024, were $872 million, down from$ 1,373 million in 2023, a decrease of 36.6%[15]. - The company reported a basic earnings per share of $0.36 for Q4 2024, down from$ 6.54 in Q4 2023, a decline of 94.5%[15]. - The company reported a total of $98 million in net income for Q4 2024, compared to$ 339 million in Q4 2023[30]. - Net income attributable to AGL for 2024 was $376 million, a decrease of 49% compared to$ 739 million in 2023[153]. Revenue and Premiums - Gross written premiums (GWP) increased to $186 million in Q4 2024, up 37% from$ 136 million in Q4 2023[6]. - Net earned premiums increased to $103 million in Q4 2024 from$ 83 million in Q4 2023, representing a 24% growth[15]. - Net earned premiums for the insurance segment increased to $104 million in Q4 2024, compared to$ 83 million in Q4 2023, reflecting a growth of 25.3%[30]. - Net earned premiums rose to $406 million in 2024, compared to$ 344 million in 2023, reflecting an increase of 18%[33][36]. - Total Gross Written Premium (GWP) for Q4 2024 was $186 million, an increase from$ 136 million in Q4 2023, representing a growth of 37%[67]. - The company reported total GWP of $357 million for 2023, with an increase to$ 440 million anticipated for 2024[76]. Assets and Equity - Total shareholders' equity attributable to Assured Guaranty Ltd. decreased to $5,495 million as of December 31, 2024, from$ 5,713 million a year earlier[11]. - Total assets decreased to $11,901 million as of December 31, 2024, from$ 12,539 million as of December 31, 2023, a decline of 5.1%[17]. - Shareholders' equity attributable to AGL decreased to $5,495 million as of December 31, 2024, from$ 5,713 million as of December 31, 2023, a decrease of 3.8%[17]. - Shareholders' equity attributable to AGL per share increased to $108.80 in 2024 from$ 101.63 in 2023[153]. - Adjusted operating shareholders' equity was $5,795 million in 2024, down from$ 5,990 million in 2023, a decrease of about 3.25%[160]. Investment Income - Net investment income remained stable at $93 million for Q4 2024, consistent with the previous quarter[27]. - Net investment income decreased slightly to$ 340 million in 2024 from $365 million in 2023, a decline of approximately 7%[33][36]. - Total net investment income for the year ended December 31, 2024, was$ 340 million, a decrease of 8.3% from $365 million in 2023[56]. - The company reported a total of$ 15 million in net investment income from funds in the fourth quarter of 2024, down from a loss of $2 million in the same quarter of 2023[53][55]. Claims and Reserves - Claims-paying resources were reported at$ 10,211 million as of December 31, 2024, down from $10,665 million a year prior[11]. - The loss and LAE reserve decreased to$ 268 million as of December 31, 2024, from $376 million as of December 31, 2023, a decline of 28.8%[17]. - The total claims-paying resources decreased to$ 10,211 million in 2024 from $10,665 million in 2023[153]. Tax and Expenses - The effective tax rate on net income for Q4 2024 was 26.6%, compared to an effective tax rate of (87.9)% in Q4 2023[6]. - Total expenses for Q4 2024 were$ 106 million, a slight increase from $81 million in Q4 2023[30]. - Total expenses for 2024 were$ 446 million, down from $733 million in 2023, indicating a reduction of 39%[33][36]. - Interest expenses for the Corporate Division remained stable at$ 101 million in 2024, compared to $99 million in 2023, reflecting a slight increase of about 2.02%[144]. Market and Business Outlook - The company plans to continue expanding its market presence and exploring new business opportunities in both U.S. and non-U.S. public finance sectors[67]. - The company expects installment premiums to contribute$ 294 million to total PVP in 2023, decreasing to $262 million in 2024[76]. - The company anticipates a total of$ 1,304 million in net expected loss to be paid from 2025 to 2029[84]. Financial Metrics and Ratios - The adjusted operating return on equity (ROE) for Q4 2024 was 4.5%, down from 23.1% in Q4 2023[6]. - The capital ratio improved to 73:1 in 2024 from 66:1 in 2023, indicating stronger capital adequacy[62]. - The unrealized loss on the investment portfolio was $(397) million in 2024, compared to$ (361) million in 2023, indicating a worsening of approximately 9.97%[160]. Corporate Division Performance - Total revenues for the Corporate Division for the year ended December 31, 2024, were $17 million, down from$ 275 million in 2023, indicating a decline of approximately 93.82%[144]. - Adjusted operating income (loss) for the Corporate Division was $(135) million for the year ended December 31, 2024, compared to$ 45 million in 2023, marking a significant decline[144]. - Total revenues for Other Results in the three months ended December 31, 2024, were $10 million, compared to$ 33 million in the same period of 2023, a decrease of approximately 69.7%[148].