Assured Guaranty(US:AGO)2025-11-06 21:29Financial Performance - Net income attributable to Assured Guaranty Ltd. for Q3 2025 was $105 million, a decrease of 38.6% from $171 million in Q3 2024[6]. - Adjusted operating income for Q3 2025 was $124 million, compared to $130 million in Q3 2024, reflecting a decline of 4.6%[6]. - The diluted earnings per share (EPS) for Q3 2025 was $2.18, a decrease of 31.24% from $3.17 in Q3 2024[6]. - The company’s return on equity (ROE) for Q3 2025 was 7.4%, down from 12.1% in Q3 2024[6]. - Total capital returned to common shareholders was $134 million in Q3 2025, compared to $147 million in Q3 2024, a decline of 8.84%[6]. - For the three months ended September 30, 2025, net income attributable to AGL was $105 million, down 38.56% from $171 million in the prior year[15]. - Adjusted operating income for the three months ended September 30, 2025, was $124 million, a decrease of 4.62% from $130 million in the same period of 2024[19]. - Basic earnings per share for the three months ended September 30, 2025, were $2.20, compared to $3.23 for the same period in 2024, a decline of 31.93%[15]. - Adjusted operating income for the nine months ended September 30, 2025, was $336 million, compared to $389 million in 2024, reflecting a decrease of 13.6%[148]. Revenue and Premiums - Gross written premiums (GWP) increased to $75 million in Q3 2025, up 22.95% from $61 million in Q3 2024[6]. - For the nine months ended September 30, 2025, total revenues reached $833 million, up 16.38% from $716 million in the same period of 2024[15]. - For the three months ended September 30, 2025, total revenues were $207 million, compared to $206 million in the previous year, reflecting a marginal increase of 0.49%[26]. - Net earned premiums for the insurance segment were $95 million, with total expenses amounting to $92 million, resulting in a net income of $105 million[26]. - Total gross written premiums (GWP) for the nine months ended September 30, 2025, reached $195 million, compared to $254 million in the same period of 2024[63]. Assets and Equity - The company reported total assets of $12,101 million as of September 30, 2025, an increase from $11,901 million as of December 31, 2024[17]. - As of September 30, 2025, shareholders' equity attributable to AGL increased to $5,658 million from $5,495 million as of December 31, 2024, representing a growth of 2.97%[11]. - The company’s long-term debt remained stable at $1,702 million as of September 30, 2025, compared to $1,699 million at the end of 2024[17]. - Shareholders' equity attributable to AGL per share increased to $121.13, compared to $108.80 in 2024, representing a growth of 11.5%[144]. - Adjusted operating shareholders' equity per share increased to $123.10 from $114.75 year-over-year[152]. Investment Performance - The company reported a fair value gain of $17 million on CIVs for the three months ended September 30, 2025[26]. - The company recorded unrealized losses on the investment portfolio amounting to $(159) million for the three months ended September 30, 2025[25]. - The total net investment income for the three months ended September 30, 2025, was $94 million, compared to $82 million for the same period in 2024, representing a 14.6% increase[50]. - The total net investment income for the nine months ended September 30, 2025, was $270 million, an increase from $247 million in the same period of 2024, reflecting a growth of 9.3%[53]. - The annualized investment income based on amortized cost and pre-tax book yields was reported at $369 million[38]. Claims and Losses - Total claims-paying resources were reported at $10,138 million, slightly down from $10,211 million as of December 31, 2024[11]. - The financial guaranty insurance segment reported a net expected loss of $186 million for the three months ended September 30, 2025, reflecting ongoing challenges in the market[79]. - The total expected net loss to be paid as of September 30, 2025, is $104 million, with significant recoveries noted in both public and structured finance sectors[80]. - The company anticipates a total of $97,393 million in net expected loss amortization from 2025 to 2029, indicating a robust outlook for future financial stability[76]. Risk Management and Capitalization - The capital ratio was reported at 79:1, indicating strong financial stability relative to net debt service outstanding[61]. - The net exposure to qualified statutory capital ratio stood at 50:1, demonstrating effective risk management practices[61]. - Below Investment Grade (BIG) exposures totaled $11,378 million as of September 30, 2025, an increase of 11.7% compared to $10,182 million at the end of 2024[111]. - The company anticipates continued market expansion and strategic initiatives to enhance its portfolio and mitigate risks associated with below investment grade exposures[111]. Non-GAAP Measures - The Company presents both GAAP and non-GAAP financial measures, with non-GAAP measures providing necessary information for analysts and investors to evaluate financial results[182]. - Adjusted operating income is defined as net income attributable to AGL, adjusted for realized gains/losses, non-credit impairment-related unrealized gains/losses, and foreign exchange gains/losses[190][193]. - The Company emphasizes that non-GAAP measures should not be considered substitutes for GAAP measures due to potential lack of comparability[181].