Financial Highlights - Adjusted operating income was $50 million, or $1.01 per share, for the second quarter of 2025[9] - The company insured $10 billion of new business par in the second quarter of 2025, the largest second-quarter amount in a decade[9] - The company generated $64 million of new business production (PVP) in the second quarter of 2025[9] - Pretax adjusted operating income from asset management was $5 million in the second quarter of 2025[9] - Pretax adjusted operating income from the alternative investment portfolio was $16 million in the second quarter of 2025[9] - Capital returned to shareholders in the second quarter of 2025 was $150 million, including share repurchases of $131 million (1.5 million shares) and dividends of $19 million[9] - Adjusted operating income was $212 million, or $4.21 per share, in the first half of 2025, a 23% increase compared to the first half of 2024[11] - The company insured $15 billion of new business par in the first half of 2025, the largest amount of first-half par insured in a decade[15] - The company generated $103 million of PVP in the first half of 2025[15] - The company repurchased nearly 3 million shares at a total cost of $251 million in the first half of 2025, representing nearly 6% of shares outstanding on December 31, 2024[15]

Financial Highlights - As of March 31, 2025, Assured Guaranty's net par outstanding was $2636 billion[8] - The company's total investment portfolio and cash amounted to $88 billion[8] - Claims-paying resources totaled $103 billion as of March 31, 2025[8, 10] New Business Activity (Q1 2025) - Assured Guaranty insured $5 billion of aggregate par[49] - The company generated $39 million of aggregate PVP[51] - The average premium rate (PVP to gross par written) was 078%[51] U S Public Finance (Q1 2025) - U S public finance insured $4 billion of total par[55] - U S public finance PVP was $25 million[55] - Assured Guaranty insured 64% of par of all primary insured deals[55] Alternative Investments - As of March 31, 2025, the value of alternative investments was $892 million[73] - The inception-to-date return on alternative investments was 13%[73] Insured Portfolio - BIG (Below Investment Grade) exposure is $95 billion, representing 36% of the total net par outstanding[91, 95]

Financial Highlights - Adjusted operating income was $389 million ($7.10 per share) for the full year 2024[19], and $66 million ($1.27 per share) for the fourth quarter[16] - Shareholders' equity attributable to AGL, adjusted operating shareholders' equity and adjusted book value reached record highs of $108.80, $114.75 and $170.12 per share, respectively[16] - Alternative investments portfolio increased to a fair value of approximately $884 million[14] - The company repurchased over 6 million shares at a total cost of $502 million, representing 11% of shares outstanding on December 31, 2023[25] Insurance Business - The company insured $32 billion of new business par in 2024, the largest amount in a decade[24, 29] - New business production (PVP) generated $402 million in 2024, exceeding $400 million for the second consecutive year[24] - U S public finance PVP in 2024 was 27% higher than in 2023[31] - The average premium rate (PVP to gross par written) was 126% in 2024[31] Portfolio Overview - Insured net par outstanding was $2616 billion as of December 31, 2024, with $2012 billion in U S public finance, $492 billion in non-U S public finance, and $112 billion in global structured finance[40] - Claims-paying resources totaled $102 billion[40] - BIG (below investment grade) exposure was $102 billion, representing 39% of total net par outstanding[150]

Financial Data and Key Metrics Changes - Adjusted operating income per share for 2024 was $7.1, down from $10.78 in 2023, reflecting a decrease in overall profitability [29] - Adjusted operating income for Q4 2024 was $66 million or $1.27 per share, compared to $338 million or $5.75 per share in Q4 2023, primarily due to non-recurring tax benefits in the prior year [21][22] - Total insured municipal par sold reached $24 billion in 2024, the highest since 2010, with a 14-year high for annual new issue insured par [13][14] Business Line Data and Key Metrics Changes - U.S. Public Finance PVP reached $270 million in 2024, significantly contributing to the overall PVP of over $400 million across all business lines [12][13] - Non-U.S. Public Finance contributed $67 million of PBP in 2024, with strong performance in secondary market guarantees and liquidity guarantees [18] - Global structured finance generated $65 million of PVP, focusing on insurance securitizations and bank balance sheet relief [18][19] Market Data and Key Metrics Changes - The bond insurance industry maintained an annual penetration rate of 8.3% of par issued, marking the fourth consecutive year above 8% [13] - The U.S. Municipal bond market started 2025 with strong new issue volume, with projections suggesting it may rival or exceed 2024's record volume [10] Company Strategy and Development Direction - The company merged its two primary insurance subsidiaries to create a more efficient capital structure and a larger insurer with a diversified portfolio [9] - Geographic expansion efforts included opening offices in Australia and Singapore, with a focus on opportunities in Continental Europe and Asia [8][20] - The company aims to diversify earnings through its asset management segment and improve investment results via alternative investments, which have generated an annualized return of approximately 13% [30][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the UK water sector, particularly regarding Thames Water, citing a positive macroeconomic background and potential for improved financials [36][38] - The company remains committed to resolving its Puerto Rico exposure, with ongoing mediation efforts and a strong legal position affirmed by the courts [10][86] - Management anticipates continued growth in new business production and a strong performance in the municipal bond market for 2025 [10][30] Other Important Information - The company repurchased 6.2 million shares for $502 million in 2024, representing 11% of shares outstanding as of December 31, 2023 [32][33] - A pre-tax gain of approximately $103 million from litigation with Lehman Brothers International Europe will be recognized in Q1 2025 [34] Q&A Session Summary Question: Recent developments on Thames Water and Southern Water - Management highlighted the UK government's stance against nationalization and positive regulatory developments for Thames Water, expressing optimism for future outcomes [36][38] Question: Impact of California wildfires on exposure - Management confirmed no significant exposure to California wildfires, with all debt service payments being met [48] Question: Non-U.S. structured finance par written this quarter - Management noted strong performance in Australia and other regions, with a focus on shorter-dated structured finance transactions [49][51] Question: Return on equity expectations - Management indicated that return on equity is influenced by the mix of business, with structured finance and international infrastructure yielding higher returns [61][62] Question: Interest rates and AOCI impact - Management acknowledged that interest rates fluctuate, affecting unrealized gains and losses, but confirmed the positive impact of the Lehman Brothers gain on per-share earnings [70][71] Question: Exposure in the D.C. market - Management stated minimal exposure in the D.C. market and expressed no significant concerns regarding potential disruptions [78][79] Question: Financial troubles in healthcare facilities - Management explained that healthcare facilities face operational risks, including high labor costs, but emphasized their proactive management approach [81][82] Question: Political changes and PREPA resolution - Management expressed cautious optimism regarding the new political landscape's potential to facilitate a resolution for PREPA, while maintaining a strong legal position [86][87]