Assured Guaranty Ltd Stock Price, News & Analysis

Assured Guaranty (NYSE: AGO) announced the merger of its U.S. entities, Assured Guaranty Municipal Corp. (AGM) and Assured Guaranty Inc. (AG), effective August 1, 2024. The merger aims to optimize capital usage, simplify administration, and enhance financial stability by combining their portfolios and resources. This consolidation is expected to diversify the insured portfolio and increase claims-paying resources. Additionally, the Maryland Insurance Administration has approved a $300 million stock redemption post-merger. AGM's subsidiaries will continue their operations under AG.

Assured Guaranty Municipal (AGM) has insured $800 million of senior Special Facilities Revenue Bonds for JFK International Airport's New Terminal One project. This marks AGM's second involvement within seven months, following a similar issuance in December 2023. The bonds, part of a $2.55 billion Series 2024 issue, were issued on June 27. AGM's total insured bonds now amount to $1.6 billion out of JFK NTO's $4.55 billion total bonds issued to date. The bonds will fully amortize post an initial interest-only period, maturing in 2060. This reflects AGM's significant commitment and capability to provide cost savings in large, complex public-private partnership projects.

S&P Global Ratings has reaffirmed the AA financial strength rating for Assured Guaranty (NYSE: AGO) and its subsidiaries, maintaining a stable outlook. This affirmation highlights Assured Guaranty's strong competitive position in the U.S. public finance market, excellent capital adequacy, and exceptional liquidity. The company's well-diversified global underwriting strategy and measured approach to non-U.S. public finance markets were also praised. CEO Dominic Frederico emphasized the company's intent to grow its insured portfolio, enhancing future earnings and financial strength.

Assured Guaranty Municipal insured $1.134 billion of senior revenue bonds for the Brightline Florida Passenger Rail Project, part of a $2.219 billion debt-refinancing package. The bonds priced on April 25 and were issued by the Florida Development Finance on May 9. Assured Guaranty's involvement contributed to a successful debt placement by Morgan Stanley. The transaction showcases the value investors place on Assured Guaranty's due diligence and financial guaranty in municipal and infrastructure financing. The insured bonds will be fully amortizing after an initial interest-only period, with AGM insuring term bonds due in 2044, 2047, and 2053. Morgan Stanley acted as the sole book-running manager for the transaction.

Assured Guaranty reported robust first-quarter 2024 results with a net income of $109 million, $1.89 per share, and gross written premiums of $61 million. Adjusted operating income was $113 million, $1.96 per share, with record levels of shareholders' equity, operating shareholders' equity, and book value per share. Share repurchases totaled $129 million with an increase in authorization by $300 million. Moody's upgraded AGC's insurance financial strength rating. Key segments like Insurance and Asset Management showed growth.

Assured Guaranty (NYSE: AGO) has announced a quarterly dividend of $0.31 per common share payable on May 29, 2024. The company provides credit enhancement products to various markets and has an ownership interest in Sound Point Capital Management, LP.

Moody’s Investors Service upgraded Assured Guaranty Corp.’s (AGC) rating to A1 and affirmed Assured Guaranty Municipal Corp.’s (AGM) rating, both with stable outlooks. The upgrade reflects AGC’s improved credit quality and strategic role within Assured Guaranty Moody’s also affirmed Assured Guaranty ’s long-term issuer rating and debt ratings for subsidiaries.