Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also hit a record of $123.10 at the end of Q3 2025 [5] - Year-to-date adjusted operating income was $6.77 per share, reflecting a 17% increase compared to the same period last year [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024 [14] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was $91 million of PVP, a 44% increase from Q3 2024 and a 42% increase from Q2 2025 [5] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, up from $5.4 billion in Q3 2024 [8] - Secondary market U.S. public finance generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by over $50 billion in the first nine months of 2025 compared to the record issuance in the same period of 2024 [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking to expand its insurance businesses into new sectors and markets while diversifying revenue sources for sustainable growth [7] - There is a focus on shorter duration structured finance transactions that allow for quicker capital recycling and better return on equity [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic public finance market returning to normal activity levels after a skewed mix in earlier quarters [35] - The company sees significant growth opportunities in both U.S. public finance and global structured finance, particularly in infrastructure and regulatory capital needs [34][36] Other Important Information - The Board of Directors authorized an additional $100 million in share repurchases, bringing the total authorization to over $330 million [7] - The investment portfolio's performance has been enhanced by alternative investments, achieving an annualized internal rate of return of approximately 13% [7][17] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management is focused on optimizing yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management indicated that Brightline is experiencing typical startup growing pains but remains comfortable with their exposure [24] Question: Opportunities in the current data center CapEx cycle - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas [27] Question: Pipeline for growing written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [33][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management emphasized the importance of a deal for recognizing the value of reserves and claims related to PREPA [38]

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $181.37, and adjusted operating shareholders' equity per share also reached a record high of $123.10 at the end of Q3 2025 [5] - Adjusted operating income for Q3 2025 was $124 million or $2.57 per share, compared to $130 million or $2.42 per share in Q3 2024, reflecting a modest decline [15][18] - Year-to-date adjusted operating income was $6.77 per share, an increase of approximately 17% compared to the same period last year [5] Business Line Data and Key Metrics Changes - Financial guarantee production in Q3 2025 was strong, with $91 million of PVP, which is 44% more than Q3 2024 and 42% more than Q2 2025 [5][8] - U.S. public finance transactions totaled $7.9 billion of par in Q3 2025, compared to $5.4 billion in Q3 2024, indicating a significant increase in issuance [8][9] - Secondary market U.S. public finance strategy generated $32 million of PVP in the first nine months of 2025, compared to $5 million in the same period of 2024 [11] Market Data and Key Metrics Changes - U.S. municipal bond issuance increased by more than $50 billion in the first nine months of 2025 compared to the same period in 2024, with total primary market insured par volume rising 18% [9] - Assured Guaranty insured 63% of the total insured U.S. municipal market par sold in the first nine months of 2025, up from 57% in the same period of 2024 [9] Company Strategy and Development Direction - The company is looking for strategic opportunities to expand its insurance businesses into new sectors and markets, aiming to diversify revenue sources for sustainable growth [7] - There is a focus on building the subscription finance business, characterized by shorter duration and renewable transactions, which allows for quicker capital recycling [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pipeline for growth in written premiums into 2026, particularly in U.S. public finance and global structured finance [32][34] - The company is actively evaluating opportunities in data centers and has executed in new areas like liquid natural gas, indicating a proactive approach to market trends [26][34] Other Important Information - The Board of Directors authorized an additional $100 million share repurchase, bringing the total authorization to over $330 million [7][20] - The investment portfolio's performance has been enhanced by alternative investments, which have generated an annualized internal rate of return of approximately 13% [7][18] Q&A Session Summary Question: Changes to the investment portfolio and allocation to higher-yielding sectors - Management indicated that they work with outside investment managers to optimize yield while maintaining a safe portfolio with adequate liquidity [23] Question: Issues with Brightline transportation exposure - Management acknowledged Brightline's growing pains as a startup but expressed confidence in their exposure due to being in the senior most section of the capital stack [24] Question: Opportunities in the current data center CapEx cycle - Management confirmed they are actively evaluating data center opportunities and have executed in new areas like liquid natural gas [26] Question: Pipeline for growth in written premium into 2026 - Management sees great opportunities across all three financial guarantee lines of business, particularly in U.S. public finance and global structured finance [32][34] Question: Positive developments in Puerto Rico and PREPA exposure - Management stated that recognition of value in reserves would require a deal, emphasizing their strong position as a creditor [38]

Core Insights - Freddie Mac sold 25 deeply delinquent non-performing residential first lien loans (NPLs) to Revolve Capital LLC for approximately $4.9 million as part of its Extended Timeline Pool Offering (EXPO) [1][2] - The transaction is expected to settle in December 2025, with marketing efforts beginning on September 25, 2025 [1] Group 1: Loan Details - The loans have an average delinquency of 22 months and an average loan balance of $196,000 [3] - Approximately 42% of the aggregate pool balance consists of previously modified mortgages that became delinquent [2] - The unpaid principal balance (UPB) weighted combined loan-to-value (CLTV) is 56%, while the broker price opinion (BPO) weighted CLTV is 50% [3] Group 2: Transaction Context - Freddie Mac's seasoned loan offerings aim to reduce less-liquid assets in its mortgage-related investments portfolio [4] - Since 2011, Freddie Mac has sold $10.7 billion of NPLs and securitized approximately $81.7 billion of re-performing loans (RPLs) [4] - The servicing requirements for these transactions focus on improving borrower outcomes and stabilizing communities [4]

Core Viewpoint - Fannie Mae is actively marketing a sale of reperforming loans to reduce its retained mortgage portfolio, consisting of approximately 3,058 loans with an unpaid principal balance of about $560.5 million [1]. Group 1: Sale Details - The sale of reperforming loans is being conducted in collaboration with Citigroup Global Markets, Inc., with bids due by September 4, 2025 [2]. - The loans being sold are classified as reperforming, meaning they have been or are currently delinquent but have shown a period of reperformance [3]. Group 2: Buyer Obligations - Buyers of the reperforming loans must provide loss mitigation options to borrowers who may re-default within five years of the sale's closing [3]. - All purchasers are required to honor any approved or in-process loss mitigation efforts at the time of sale, including loan modifications [3]. - Purchasers must offer a range of loss mitigation options, including loan modifications that may involve principal forgiveness, before initiating foreclosure on any loan [3].

Financial Data and Key Metrics Changes - Adjusted book value per share reached a record high of $176.95, and adjusted operating shareholders' equity per share also reached a record high of $120.11 at the end of Q2 2025 [6] - Adjusted operating income for Q2 2025 was $50 million or $1.1 per share, compared to $80 million or $1.44 per share in Q2 2024 [22][25] - Net earned premiums and net investment income increased, contributing to the earnings power of core earnings [22] Business Line Data and Key Metrics Changes - The company insured $14.1 billion of new issued par sold in the primary market, a 30% increase compared to the same period last year [13] - In the secondary market, the company wrote nearly $900 million of policies in the first half of 2025, with over $500 million in Q2 alone, representing a 150% increase compared to the total amount insured in all of 2024 [8][13] - The insurance segment contributed $76 million to adjusted operating income, while the asset management segment contributed $4 million [27] Market Data and Key Metrics Changes - US municipal issuance was 17% ahead of last year's record pace through June 30, 2025 [7] - The total market volume reached $278 billion by June 30, 2025, with forecasts suggesting that municipal issuance in 2025 could surpass $500 billion [20] Company Strategy and Development Direction - The company aims to maintain its leadership position in US municipal bond insurance while expanding and diversifying its global infrastructure and structured finance reach [12] - A share repurchase program with a target of $500 million for the year is in place, with $296 million already repurchased as of August 6, 2025 [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory in both US and non-US markets, citing a strong competitive position and excellent capital and earnings [11] - The company is well-positioned for the second half of the year, with many attractive opportunities in global infrastructure and structured finance [20] Other Important Information - The company received affirmations of its financial strength ratings from S&P Global Ratings and KBRA, both with stable outlooks [11] - A $250 million stock redemption by the US insurance subsidiary was approved, expected to be executed in 2025 [30] Q&A Session Summary Question: Impact of lower interest rates on AGO's opportunities - Management noted that a lower interest rate environment could depress premium volume but may also lead to more issuers in the market, balancing the impact [33][34][39] Question: Increase in big exposures and loss expenses - Management explained that the increase in loss expenses is due to additional reserves on certain UK regulated utility and US municipal revenue exposures, emphasizing their strong surveillance team [40][68] Question: Future of Puerto Rico Oversight Board and restructuring - Management expressed optimism that changes in the Puerto Rico Oversight Board could lead to improvements in restructuring processes, viewing it as a potential positive development [52][54] Question: Performance of contingent value instruments - The company holds approximately $117 million in contingent value securities, which have performed well, and expects continued improvement [58][60]