Assured Guaranty (NYSE: AGO) boosts 2025 profit and buybacks
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Assured Guaranty Ltd. reported a strong finish to 2025 with higher profits, record book values, and large capital returns. For fourth quarter 2025, net income attributable to shareholders was $119 million, or $2.53 per diluted share, and adjusted operating income was $109 million, or $2.32 per share. For full year 2025, net income reached $503 million, or $10.26 per diluted share, up 49% from 2024, while adjusted operating income was $445 million, or $9.08 per share, a 28% increase.
Shareholders’ equity per share rose to $125.32 as of December 31, 2025, adjusted operating shareholders’ equity per share to $126.78, and adjusted book value per share to $186.43, each at record highs. New business remained solid, with gross written premiums of $61 million and PVP of $92 million in the quarter, and $256 million of GWP and $286 million of PVP for the year. The company returned $569 million of capital to shareholders in 2025, including repurchasing 5.8 million shares for $500 million and paying $69 million in dividends, and notes it has repurchased 11.5% of shares outstanding since the end of 2024. Management also highlighted entry into annuity reinsurance through acquiring and renaming a life and annuity reinsurer as Assured Life Re.
Positive
- Strong earnings growth: 2025 net income rose to $503 million ($10.26 per diluted share), 49% higher than 2024, with adjusted operating income up to $445 million ($9.08 per share), a 28% increase.
- Record per-share value metrics: Shareholders’ equity per share reached $125.32, adjusted operating shareholders’ equity per share $126.78, and adjusted book value per share $186.43 as of December 31, 2025.
- Significant capital return: The company returned $569 million to shareholders in 2025, including $500 million of share repurchases (5.8 million shares) and $69 million in dividends, and has repurchased 81% of shares outstanding since 2013.
- Business momentum and diversification: 2025 PVP was $286 million with strong U.S. public finance and structured finance activity, and the company entered annuity reinsurance through acquiring Assured Life Re to broaden revenue sources.
Negative
- None.
Insights
Strong 2025 earnings, record book values, and heavy buybacks mark a clearly positive year.
Assured Guaranty delivered robust growth, with full-year net income of
Per-share value metrics hit new highs: shareholders’ equity per share rose to
Capital return was aggressive, with
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)—February 26, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices)
Registrant’s telephone number, including area code: (441 ) 279-5700
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class: | Trading Symbol(s) | Name of exchange on which registered | |||||||||
| $0.01 par value per share | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. On February 26, 2026, Assured Guaranty Ltd. issued a press release reporting its results for the quarter and year ended December 31, 2025 and the availability of its December 31, 2025 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference herein. | ||||
| Item 9.01 | Financial Statements and Exhibits. (d) Exhibits | ||||
| Exhibit Number | Description | ||||
| 99.1 | Assured Guaranty Ltd. Press Release dated February 26, 2026 reporting its results for the quarter and year ended December 31, 2025 | ||||
| 99.2 | December 31, 2025 Financial Supplement of Assured Guaranty Ltd. | ||||
| 104.1 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document | ||||
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Assured Guaranty Ltd. | ||||||||
By: | /s/ BENJAMIN G. ROSENBLUM | |||||||
Name: Benjamin G. Rosenblum Title: Chief Financial Officer | ||||||||
DATE: February 26, 2026
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Assured Guaranty Ltd. Reports Results for Fourth Quarter 2025 and Full Year 2025
Fourth Quarter 2025
•GAAP Highlights: Net income attributable to Assured Guaranty Ltd. was $119 million, or $2.53 per share(1), for fourth quarter 2025. Shareholders’ equity attributable to Assured Guaranty Ltd. per share was $125.32 as of December 31, 2025.
•Non-GAAP Highlights: Adjusted operating income(2) was $109 million, or $2.32 per share, for fourth quarter 2025. Adjusted operating shareholders’ equity(2) per share and adjusted book value (ABV)(2) per share were $126.78 and $186.43, respectively, as of December 31, 2025.
•New Business: Gross written premiums (GWP) were $61 million for fourth quarter 2025. Present value of new business production (PVP)(2) was $92 million for fourth quarter 2025.
•Return of Capital to Shareholders: Fourth quarter 2025 capital returned to shareholders was $147 million, consisting of the repurchase of 1.5 million shares for $131 million, and dividends of $16 million.
Full Year (FY) 2025
•GAAP Highlights: Net income attributable to Assured Guaranty Ltd. was $503 million, or $10.26 per share, for FY 2025.
•Non-GAAP Highlights: Adjusted operating income was $445 million, or $9.08 per share, for FY 2025.
•New Business: GWP were $256 million and PVP was $286 million for FY 2025.
•Return of Capital to Shareholders: FY 2025 capital returned to shareholders was $569 million, consisting of the repurchase of 5.8 million shares for $500 million, and dividends of $69 million.
Hamilton, Bermuda, February 26, 2026 -- Assured Guaranty Ltd. (NYSE: AGO) (AGL and, together with its subsidiaries, Assured Guaranty or the Company) announced today its financial results for the three-month period ended December 31, 2025 (fourth quarter 2025) and the year ended December 31, 2025 (FY 2025).
“At year end 2025, Assured Guaranty again reached record highs in our key shareholder value metrics,” said Dominic Frederico, President and CEO. “Year-over-year, shareholders’ equity per share rose 15% to $125.32, adjusted operating shareholders’ equity per share rose over 10% to $126.78, and adjusted book value per share increased 10% to $186.43.
“In 2025, Assured Guaranty earned net income per share of $10.26, 49% higher than in 2024, and adjusted operating income per share grew to $9.08, a 28% year-over-year increase, as we continued to create significant future earnings from financial guaranty originations in U.S. public finance, non-U.S. infrastructure finance and global structured finance.
“We led the U.S. municipal bond insurance market in 2025 with 58.5% of new issue insured par sold, and in the secondary market we saw strong results insuring $2.0 billion of par, which is almost three-and-a-half times the amount we insured in 2024. In looking toward par and PVP production in 2026, we have a robust transaction pipeline and are expecting strong results from each of our three financial guaranty product lines.
“In our capital management program, we repurchased 11.5% of the common shares that were outstanding on December 31, 2024, and met our 2025 target of $500 million in common share repurchases.
(1) All per share information for net income and adjusted operating income is based on diluted shares.
(2) Please see “Explanation of Non-GAAP Financial Measures.”
1
“Additionally, on January 21, 2026, we entered the annuity reinsurance market by acquiring a life and annuity reinsurance company, which we renamed Assured Life Re. This furthers our strategic objective to diversify our revenue sources in support of our future growth.”
Summary Financial Results
(in millions, except per share amounts)
| Quarter Ended | Year Ended | |||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||
GAAP (1) | ||||||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | ||||||||||||||||||
| Net income (loss) attributable to AGL per diluted share | $ | 2.53 | $ | 0.35 | $ | 10.26 | $ | 6.87 | ||||||||||||||||||
| Weighted average diluted shares | 46.6 | 51.9 | 48.7 | 54.3 | ||||||||||||||||||||||
Non-GAAP (2) | ||||||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | ||||||||||||||||||
| Adjusted operating income per diluted share | $ | 2.32 | $ | 1.27 | $ | 9.08 | $ | 7.10 | ||||||||||||||||||
| Weighted average diluted shares | 46.6 | 51.9 | 48.7 | 54.3 | ||||||||||||||||||||||
| Components of total adjusted operating income (loss) | ||||||||||||||||||||||||||
| Insurance segment | $ | 119 | $ | 98 | $ | 508 | $ | 525 | ||||||||||||||||||
| Asset Management segment | 1 | — | 20 | 5 | ||||||||||||||||||||||
| Corporate division | (16) | (34) | (89) | (135) | ||||||||||||||||||||||
| Other | 5 | 2 | 6 | (6) | ||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | ||||||||||||||||||
| As of | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 125.32 | $ | 5,495 | $ | 108.80 | |||||||||||||||
Adjusted operating shareholders’ equity (2) | 5,729 | 126.78 | 5,795 | 114.75 | |||||||||||||||||||
ABV (2) | 8,424 | 186.43 | 8,592 | 170.12 | |||||||||||||||||||
| Common Shares Outstanding | 45.2 | 50.5 | |||||||||||||||||||||
________________________________________________
(1) Generally accepted accounting principles in the United States of America.
(2) Please see “Explanation of Non-GAAP Financial Measures” at the end of this press release.
On a per share basis, shareholders’ equity attributable to AGL increased to $125.32 as of December 31, 2025 from $108.80 as of December 31, 2024 primarily due to net income, unrealized gains on the investment portfolio and share repurchases, partially offset by dividends. On a per share basis, ABV increased to $186.43 as of December 31, 2025 from $170.12 as of December 31, 2024, primarily due to adjusted operating income, new business production and share repurchases, partially offset by dividends.
Fourth Quarter 2025
Net income attributable to AGL in fourth quarter 2025 increased compared with the three-month period ended December 31, 2024 (fourth quarter 2024), primarily due to a $73 million increase in pre-tax foreign exchange remeasurement and a pre-tax gain of $23 million recognized in connection with the sale of a commercially leased building that was part of a loss mitigation strategy for a troubled insured exposure.
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Insurance Segment
The Insurance segment primarily consists of (i) the Company’s insurance subsidiaries that provide credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets, excluding the effect of variable interest entity (VIE) consolidations, and (ii) Assured Guaranty Inc.’s (AG) investment subsidiary, AG Asset Strategies LLC.
Insurance Segment New Business Production
Insurance Segment
New Business Production
(in millions)
| Quarter Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| GWP | PVP (1) | Gross Par Written (2) | GWP | PVP (1) | Gross Par Written (2) | ||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 55 | $ | 54 | $ | 6,467 | $ | 77 | $ | 77 | $ | 8,419 | |||||||||||||||||||||||
| Public finance - non-U.S. | (3) | 18 | 670 | 102 | 23 | 436 | |||||||||||||||||||||||||||||
| Structured finance - U.S. | (1) | 10 | 335 | 1 | 1 | 231 | |||||||||||||||||||||||||||||
| Structured finance - non-U.S. | 10 | 10 | 905 | 6 | 20 | 2,140 | |||||||||||||||||||||||||||||
| Total | $ | 61 | $ | 92 | $ | 8,377 | $ | 186 | $ | 121 | $ | 11,226 | |||||||||||||||||||||||
________________________________________________
(1) PVP, a non-GAAP financial measure, measures the value of the Insurance segment’s new business production for all contracts regardless of form or GAAP accounting model. See “Explanation of Non-GAAP Financial Measures” at the end of this press release. PVP is based on “close date,” when the transaction settles. PVP was discounted at 5.0% in both fourth quarter 2025 and fourth quarter 2024.
(2) Gross Par Written is based on “close date,” when the transaction settles.
U.S. public finance GWP and PVP include transactions closed in both the primary and secondary markets. Fourth quarter 2025 secondary market GWP and PVP each increased to $12 million from $3 million in fourth quarter 2024. The Company’s par written in the secondary market represented 8.3% of U.S. public finance par written in fourth quarter 2025, compared with 2.7% in fourth quarter 2024. U.S public finance GWP and PVP in the primary market were higher in fourth quarter 2024 compared with fourth quarter 2025 primarily due to one large transportation revenue transaction written in fourth quarter 2024.
GWP for non-U.S. public finance in fourth quarter 2025 were negative primarily due to the early repayment of several United Kingdom (U.K.) sub-sovereign credits. GWP for non-U.S. public finance in fourth quarter 2024 included a change in the present value of future premiums on a large existing transaction, which was not a result of new business production and therefore excluded from PVP. In fourth quarter 2025, non-U.S. public finance GWP and PVP consisted of guaranties of infrastructure finance, debt service reserve guarantees and extensions, and two secondary bank transactions.
Global structured finance GWP and PVP in fourth quarter 2025 primarily consisted of insurance securitizations, fund finance facilities and consumer receivable transactions.
Business activity in the non-U.S. public finance and structured finance markets often has long lead times and therefore may vary from period to period.
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Insurance Segment Adjusted Operating Income
Insurance segment adjusted operating income increased to $119 million in fourth quarter 2025 from $98 million in fourth quarter 2024, primarily due to a gain of $23 million recognized in connection with the sale of a commercially leased building that was part of a loss mitigation strategy for a troubled insured exposure, and lower losses and loss adjustment expense (LAE) in fourth quarter 2025.
Insurance Segment Results
(in millions)
| Quarter Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Segment revenues | |||||||||||
| Net earned premiums and credit derivative revenues | $ | 110 | $ | 107 | |||||||
| Net investment income | 89 | 93 | |||||||||
| Fair value gains (losses) on trading securities | 2 | — | |||||||||
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 25 | (1) | |||||||||
| Total segment revenues | 226 | 199 | |||||||||
| Segment expenses | |||||||||||
| Loss expense (benefit) | 19 | 31 | |||||||||
| Amortization of deferred acquisition costs (DAC) | 6 | 6 | |||||||||
| Employee compensation and benefit expenses | 42 | 42 | |||||||||
| Other operating expenses | 34 | 27 | |||||||||
| Total segment expenses | 101 | 106 | |||||||||
| Equity in earnings (losses) of investees | 15 | 19 | |||||||||
| Segment adjusted operating income (loss) before income taxes | 140 | 112 | |||||||||
| Less: Provision (benefit) for income taxes | 21 | 14 | |||||||||
| Segment adjusted operating income (loss) | $ | 119 | $ | 98 | |||||||
The components of the Insurance segment’s premiums, losses and income from the investment portfolio are presented below.
Insurance Segment Net Earned Premiums and Credit Derivative Revenues
Insurance Segment
Net Earned Premiums and Credit Derivative Revenues
(in millions)
| Quarter Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Scheduled net earned premiums and credit derivative revenues | $ | 94 | $ | 90 | |||||||
| Accelerations | 16 | 17 | |||||||||
| Total | $ | 110 | $ | 107 | |||||||
The increase in scheduled net earned premiums and credit derivative revenues in fourth quarter 2025 was primarily due to earnings on large transactions and supplemental premiums written in 2024.
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Insurance Segment Loss Expense (Benefit) and the Roll Forward of Expected Losses
Loss expense is a function of net economic loss development (benefit) and deferred premium revenue. The difference between loss expense and economic development in a given period represents the amount of deferred premium revenue absorbing expected losses to be paid.
Insurance Segment
Loss Expense (Benefit)
(in millions)
| Quarter Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Public finance | $ | 18 | $ | 32 | |||||||
| U.S. residential mortgage-backed securities (RMBS) | — | (2) | |||||||||
| Other structured finance | 1 | 1 | |||||||||
| Total | $ | 19 | $ | 31 | |||||||
The table below presents the roll forward of net expected losses for fourth quarter 2025.
Roll Forward of Net Expected Loss to be Paid (Recovered)(1)
(in millions)
| Net Expected Loss to be Paid (Recovered) as of September 30, 2025 | Net Economic Loss Development (Benefit) | Net (Paid) Recovered Losses | Net Expected Loss to be Paid (Recovered) as of December 31, 2025 | |||||||||||||||||||||||
| Public finance | $ | 103 | $ | 10 | $ | (18) | $ | 95 | ||||||||||||||||||
| U.S. RMBS | (59) | (3) | 8 | (54) | ||||||||||||||||||||||
| Other structured finance | 60 | 1 | (1) | 60 | ||||||||||||||||||||||
| Total | $ | 104 | $ | 8 | $ | (11) | $ | 101 | ||||||||||||||||||
________________________________________________
(1) Net economic loss development (benefit) represents the change in net expected loss to be paid (recovered) attributable to the effects of changes in the economic performance of insured transactions, changes in assumptions based on observed market trends, changes in discount rates, accretion of discount and the economic effects of loss mitigation efforts, each net of reinsurance. Net economic loss development (benefit) is the principal measure that the Company uses to evaluate the loss experience in its insured portfolio. Expected loss to be paid (recovered) includes all transactions insured by the Company, regardless of the accounting model prescribed under GAAP and without consideration of deferred premium revenue.
Net economic loss development was $8 million in fourth quarter 2025, mainly attributable to certain U.K. student accommodation transactions and Puerto Rico Electric Power Authority (PREPA), partially offset by a benefit related to certain U.K. regulated utility exposures.
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Insurance Segment Income from the Investment Portfolio
Insurance Segment
Income from the Investment Portfolio
(in millions)
| Quarter Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Net investment income | $ | 89 | $ | 93 | |||||||
| Fair value gains (losses) on trading securities | 2 | — | |||||||||
Equity in earnings (losses) of investees (1) | 15 | 19 | |||||||||
| Total | $ | 106 | $ | 112 | |||||||
________________________________________________
(1) Equity in earnings (losses) of investees primarily relates to funds managed by Sound Point Capital Management, LP and certain of its investment management subsidiaries (Sound Point) and Assured Healthcare Partners, LLC. Investments in funds are reported on a one-quarter lag. AG transferred to Assured Guaranty Municipal Holdings Inc. (AGMH) certain alternative investments as part of stock redemptions in 2025 and 2024. AG results are reported in the Insurance segment and AGMH results are reported in the Corporate division.
Net investment income represents interest income on available-for-sale fixed-maturity securities and short-term investments, which had an overall pre-tax book yield of 4.76% as of December 31, 2025 and 4.57% as of December 31, 2024. The decrease in net investment income in fourth quarter 2025 compared with fourth quarter 2024 is primarily due to lower short-term interest rates and lower average short-term investment balances.
Equity in earnings (losses) of investees was $15 million in fourth quarter 2025 compared with $19 million in fourth quarter 2024. Equity in earnings (losses) of investees may be more volatile than net investment income on available-for-sale fixed-maturity securities and short-term investments, due to mark-to-market changes associated with certain alternative investments.
As of December 31, 2025, the Company had $1.0 billion in alternative investments across a variety of asset classes: $838 million in the Insurance segment consisting primarily of collateralized loan obligation (CLO) equity tranches in the available-for-sale fixed-maturity securities portfolio and investments in funds focused on asset classes such as private healthcare and asset-based/specialty finance, as well as alternative investments in the Corporate division consisting primarily of legacy investments. The inception-to-date annualized internal rate of return for all alternative investments across the Insurance segment and Corporate division was 13% as of December 31, 2025.
Asset Management Segment
Asset management adjusted operating income was $1 million in fourth quarter 2025. It includes the Company’s ownership interest in Sound Point and the related amortization of intangible assets, as well as certain ongoing net performance fees. Sound Point’s results are reported on a one-quarter lag and are included in “equity in earnings (losses) of investees.”
6
Corporate Division
Corporate Division Results
(in millions)
| Quarter Ended | |||||||||||
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Revenues | $ | 3 | $ | 4 | |||||||
| Expenses | |||||||||||
| Interest expense | 24 | 26 | |||||||||
| Employee compensation and benefit expenses | 7 | 7 | |||||||||
| Other operating expenses | 9 | 8 | |||||||||
| Total expenses | 40 | 41 | |||||||||
| Equity in earnings (losses) of investees | 20 | 5 | |||||||||
| Adjusted operating income (loss) before income taxes | (17) | (32) | |||||||||
| Less: Provision (benefit) for income taxes | (1) | 2 | |||||||||
| Adjusted operating income (loss) | $ | (16) | $ | (34) | |||||||
The Corporate division primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. and AGMH, equity in earnings (losses) of investees related to certain alternative investments that AG transferred to AGMH as part of stock redemptions in the third quarter of 2025 and the third quarter of 2024, as well as expenses attributed to the holding companies’ activities. Equity in earnings (losses) of investees increased to $20 million in fourth quarter 2025 compared with $5 million in fourth quarter 2024, primarily due to the higher fair value gains on certain alternative investments.
Reconciliation to GAAP
The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).
7
Reconciliation of Net Income (Loss) Attributable to AGL to
Adjusted Operating Income (Loss)
(in millions, except per share amounts)
| Quarter Ended | |||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Total | Per Diluted Share | Total | Per Diluted Share | ||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 2.53 | $ | 18 | $ | 0.35 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Realized gains (losses) on investments | (8) | (0.18) | 7 | 0.13 | |||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 8 | 0.18 | 3 | 0.05 | |||||||||||||||||||
| Fair value gains (losses) on committed capital securities (CCS) | 11 | 0.22 | 2 | 0.03 | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 3 | 0.06 | (68) | (1.29) | |||||||||||||||||||
| Total pre-tax adjustments | 14 | 0.28 | (56) | (1.08) | |||||||||||||||||||
| Less tax effect on pre-tax adjustments | (4) | (0.07) | 8 | 0.16 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 2.32 | $ | 66 | $ | 1.27 | |||||||||||||||
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income (1) | $ | 5 | $ | 0.12 | $ | 2 | $ | 0.04 | |||||||||||||||
________________________________________
(1) The effect of consolidating financial guaranty (FG) VIEs and consolidated investment vehicles (CIVs).
Except for credit impairment, the fair value adjustments on credit derivatives in the insured portfolio are non-economic adjustments that reverse to zero over the remaining term of that portfolio.
Fair value of CCS is heavily affected by, and in part fluctuates with, changes in market interest rates, credit spreads and other market factors and is not expected to result in an economic gain or loss.
Foreign exchange gains (losses) primarily relate to remeasurement of premiums receivable and are mainly due to changes in exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.
Full Year 2025
Net income attributable to AGL in FY 2025 increased to $503 million from $376 million in FY 2024, primarily due to foreign exchange remeasurement gains of $96 million in 2025 compared with losses of $27 million in 2024, a gain related to the resolution of the Lehman Brothers International (Europe) (in administration) (LBIE) litigation of $103 million in 2025, a gain of $23 million recognized in connection with the sale in 2025 of a commercially leased building that was part of a loss mitigation strategy for a troubled insured exposure, and a $40 million increase in equity in earnings of investees. These increases were offset in part by a $66 million increase in public finance loss and LAE primarily attributable to higher reserves for PREPA and certain U.K. regulated utility exposures, $49 million in net realized investment losses and $39 million in lower fair value gains on trading securities.
Adjusted operating income in FY 2025 was $445 million, compared with $389 million in FY 2024. The increase was primarily due to the gain related to the resolution of the LBIE litigation in 2025, a $40 million increase in equity in earnings of investees and a gain of $23 million recognized in connection with the sale of a commercially leased building that was part of a loss mitigation strategy for a troubled insured exposure, offset in part by a higher loss expense in public finance sectors, lower fair value gains on the trading portfolio and lower earned premiums on refundings of financial guaranty insurance contracts in 2025.
8
Insurance Segment
New Business Production
(in millions)
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||
| GWP | PVP (1) | Gross Par Written | GWP | PVP (1) | Gross Par Written | ||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 230 | $ | 206 | $ | 27,448 | $ | 259 | $ | 270 | $ | 23,758 | |||||||||||||||||||||||
| Public finance - non-U.S. | (9) | 37 | 1,385 | 136 | 67 | 2,673 | |||||||||||||||||||||||||||||
| Structured finance - U.S. | 7 | 13 | 503 | 20 | 25 | 1,476 | |||||||||||||||||||||||||||||
| Structured finance - non-U.S. | 28 | 30 | 3,580 | 25 | 40 | 3,922 | |||||||||||||||||||||||||||||
| Total | $ | 256 | $ | 286 | $ | 32,916 | $ | 440 | $ | 402 | $ | 31,829 | |||||||||||||||||||||||
________________________________________________
(1) PVP was discounted at 5.0% in both 2025 and 2024.
U.S. public finance GWP and PVP include transactions closed in both the primary and secondary markets. Secondary market GWP and PVP each increased to $44 million in FY 2025 from $8 million in FY 2024. The Company’s par written in the secondary market represented 7.3% of U.S. public finance par written in FY 2025, compared with 2.5% in FY 2024.
U.S. public finance GWP and PVP in the primary market were higher in FY 2024 primarily due to a large transportation revenue transaction that was written in 2024. U.S. public finance GWP and PVP in FY 2025 included transportation revenue and infrastructure transactions. The Company’s primary par written represented 58% of the total U.S. primary municipal market insured par sold in both FY 2025 and in FY 2024, and the Company’s penetration of all municipal issuance was 4.4% in FY 2025 compared with 4.8% in FY 2024.
GWP for non-U.S. public finance in FY 2025 were negative primarily due to the early repayment of several U.K. sub-sovereign credits. GWP for non-U.S. public finance in FY 2024 included a change in the present value of future premiums on a large existing transaction, which was not a result of new business production and therefore excluded from PVP. Non-U.S. public finance PVP in FY 2025 was lower than PVP in FY 2024, primarily due to a lower volume of large transactions in 2025. Non-U.S. public finance PVP in FY 2025 included several primary infrastructure finance transactions in the European Union and secondary transactions in the U.K.
Global structured finance GWP and PVP in FY 2025 were primarily attributable to fund finance facilities, insurance securitizations, the upsize of a transaction providing protection on a core lending portfolio for an Australian bank, and consumer receivable transactions.
9
Reconciliation to GAAP
The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).
Reconciliation of Net Income (Loss) Attributable to AGL to
Adjusted Operating Income (Loss)
(in millions, except per share amounts)
| Year Ended | |||||||||||||||||||||||
| December 31, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Total | Per Diluted Share | Total | Per Diluted Share | ||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 503 | $ | 10.26 | $ | 376 | $ | 6.87 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Realized gains (losses) on investments | (40) | (0.82) | 9 | 0.16 | |||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 6 | 0.12 | 14 | 0.27 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 20 | 0.40 | (10) | (0.19) | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 85 | 1.74 | (26) | (0.47) | |||||||||||||||||||
| Total pre-tax adjustments | 71 | 1.44 | (13) | (0.23) | |||||||||||||||||||
| Less tax effect on pre-tax adjustments | (13) | (0.26) | — | — | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 445 | $ | 9.08 | $ | 389 | $ | 7.10 | |||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $ | 6 | $ | 0.13 | $ | (6) | $ | (0.12) | |||||||||||||||
Realized losses on investments in FY 2025 were primarily due to $29 million of credit losses associated with CLO equity tranches and loss mitigation securities and $14 million losses related to the sale of investments.
Non-credit impairment-related unrealized fair value gains on credit derivatives in FY 2025 were primarily due to generally lower collateral asset spreads. Non-credit impairment-related unrealized fair value gains on credit derivatives in FY 2024 were generated primarily due to the termination of certain structured finance policies and generally lower collateral asset spreads.
Fair value gains on CCS in FY 2025 were primarily due to changes in the rate environment and market view on liquidity of floating rate instruments. Fair value losses on CCS in FY 2024 were primarily due to a tightening in market spreads. Fair value gains (losses) of CCS are heavily affected by, and in part fluctuate with, changes in market spreads and interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
Foreign exchange gains (losses) in FY 2025 and FY 2024 primarily relate to remeasurement of long-dated premiums receivable, for which the Company records the present value of future installment premiums. Foreign exchange gains and losses are mainly due to changes in the exchange rate of the pound sterling and, to a lesser extent, the euro relative to the U.S. dollar.
10
Common Share Repurchases
On November 5, 2025, the Board of Directors authorized the repurchase of an additional $100 million of the Company’s common shares. From the beginning of the repurchase program in 2013 through February 25, 2026, the Company has repurchased a total of 157 million common shares for $5.9 billion, representing 81% of the total shares outstanding as of January 1, 2013. As of February 25, 2026, the Company was authorized to purchase $204 million of its common shares. These repurchases can be made from time to time in the open market or in privately negotiated transactions.
Summary of Share Repurchases
(in millions, except per share amounts)
Amount (1) | Number of Shares | Average Price Per Share (1) | |||||||||||||||
| 2025 (January 1 - March 31) | $ | 120 | 1.34 | $ | 89.72 | ||||||||||||
| 2025 (April 1 - June 30) | 131 | 1.54 | 85.03 | ||||||||||||||
| 2025 (July 1 - September 30) | 118 | 1.42 | 83.06 | ||||||||||||||
| 2025 (October 1 - December 31) | 131 | 1.52 | 86.16 | ||||||||||||||
| Total 2025 | $ | 500 | 5.82 | 85.92 | |||||||||||||
| 2026 (January 1 - February 25) | $ | 47 | 0.55 | $ | 86.66 | ||||||||||||
________________________________________________
(1) Excludes commissions.
The Company’s share repurchase program may be modified, extended or terminated by the Company’s Board of Directors at any time and does not have an expiration date. The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors.
11
Financial Statements
Consolidated Statements of Operations (unaudited)
(in millions)
| Quarter Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | 106 | $ | 103 | $ | 380 | $ | 403 | |||||||||||||||
| Net investment income | 89 | 93 | 359 | 340 | |||||||||||||||||||
| Net realized investment gains (losses) | (8) | 7 | (40) | 9 | |||||||||||||||||||
| Fair value gains (losses) on credit derivatives | 11 | 5 | 121 | 24 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 11 | 2 | 20 | (10) | |||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | 6 | (11) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | 39 | 15 | 79 | 69 | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | 3 | (70) | 96 | (27) | |||||||||||||||||||
| Fair value gains (losses) on trading securities | 2 | — | 13 | 52 | |||||||||||||||||||
| Other income (loss) | 24 | 1 | 76 | 23 | |||||||||||||||||||
| Total revenues | 277 | 156 | 1,110 | 872 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss and LAE (benefit) | 18 | 28 | 56 | (26) | |||||||||||||||||||
| Interest expense | 22 | 23 | 89 | 91 | |||||||||||||||||||
| Amortization of DAC | 6 | 6 | 22 | 20 | |||||||||||||||||||
| Employee compensation and benefit expenses | 49 | 49 | 209 | 202 | |||||||||||||||||||
| Other operating expenses | 43 | 35 | 174 | 159 | |||||||||||||||||||
| Total expenses | 138 | 141 | 550 | 446 | |||||||||||||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 139 | 15 | 560 | 426 | |||||||||||||||||||
| Equity in earnings (losses) of investees | 26 | 15 | 102 | 62 | |||||||||||||||||||
| Income (loss) before income taxes | 165 | 30 | 662 | 488 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | 27 | 8 | 119 | 96 | |||||||||||||||||||
| Net income (loss) | 138 | 22 | 543 | 392 | |||||||||||||||||||
| Less: Noncontrolling interest | 19 | 4 | 40 | 16 | |||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | |||||||||||||||
12
Consolidated Balance Sheets (unaudited)
(in millions)
| As of | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed-maturity securities, available-for-sale, at fair value | $ | 6,369 | $ | 6,369 | |||||||
| Fixed-maturity securities, trading, at fair value | 124 | 147 | |||||||||
| Short-term investments, at fair value | 903 | 1,221 | |||||||||
| Other invested assets | 1,091 | 926 | |||||||||
| Total investments | 8,487 | 8,663 | |||||||||
| Cash | 388 | 121 | |||||||||
| Premiums receivable, net of commissions payable | 1,572 | 1,551 | |||||||||
| DAC | 192 | 176 | |||||||||
| Salvage and subrogation recoverable | 449 | 396 | |||||||||
| FG VIEs’ assets | 212 | 147 | |||||||||
| Assets of CIVs | 175 | 101 | |||||||||
| Other assets | 701 | 746 | |||||||||
| Total assets | $ | 12,176 | $ | 11,901 | |||||||
| Liabilities | |||||||||||
| Unearned premium reserve | $ | 3,625 | $ | 3,719 | |||||||
| Loss and LAE reserve | 309 | 268 | |||||||||
| Long-term debt | 1,704 | 1,699 | |||||||||
| FG VIEs’ liabilities | 198 | 164 | |||||||||
| Other liabilities | 551 | 498 | |||||||||
| Total liabilities | 6,387 | 6,348 | |||||||||
| Shareholders’ equity | |||||||||||
| Common shares | — | 1 | |||||||||
| Retained earnings | 5,830 | 5,878 | |||||||||
| Accumulated other comprehensive income (loss) | (168) | (385) | |||||||||
| Deferred equity compensation | 1 | 1 | |||||||||
| Total shareholders’ equity attributable to AGL | 5,663 | 5,495 | |||||||||
| Non-redeemable noncontrolling interest | 126 | 58 | |||||||||
| Total shareholders’ equity | 5,789 | 5,553 | |||||||||
| Total liabilities and shareholders’ equity | $ | 12,176 | $ | 11,901 | |||||||
13
Explanation of Non-GAAP Financial Measures
The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.
The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.
GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and CIVs in which certain subsidiaries invest.
The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.
The Company’s management and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (i) adjusted operating income per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating income per share); (ii) adjusted operating shareholders’ equity per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating shareholders’ equity per share); (iii) ABV per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core ABV per share); (iv) core operating return on equity, which is calculated as core operating income divided by the average of core operating shareholders’ equity at the beginning and end of the period; and (v) PVP.
The Company’s management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or ABV, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares.
Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.
The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented below.
14
Adjusted Operating Income
The Company’s management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of realized gains (losses) on the Company’s investments that are recognized in net income (loss) attributable to AGL, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.
2) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income (loss) attributable to AGL, which is the amount of fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income (loss) attributable to AGL. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
4) Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income (loss) attributable to AGL. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.
5) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Adjusted operating income per share is calculated by dividing adjusted operating income by the weighted average diluted shares. The method for calculating weighted average diluted shares is in accordance with GAAP. See “Reconciliation to GAAP” above for a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).
Adjusted Operating Shareholders’ Equity and ABV
The Company’s management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss. The Company’s management uses ABV, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. The Company’s management believes that ABV is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses.
Adjusted operating shareholders’ equity per share and ABV per share, each further adjusted for FG VIE and CIV consolidation (core operating shareholders’ equity per share and core ABV per share, respectively), are two of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors.
15
Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are reported on the consolidated balance sheet, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
2) Elimination of fair value gains (losses) on the Company’s CCS that are reported on the consolidated balance sheet. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not result in an economic gain or loss.
4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
ABV is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:
1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.
2) Addition of the net present value of estimated net future revenue. See below.
3) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed.
4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Shares outstanding as of the end of the reporting period are used to calculate adjusted operating shareholders’ equity per share and ABV per share.
The unearned premiums and revenues included in ABV will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current ABV due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.
16
Reconciliation of Shareholders’ Equity Attributable to AGL to
Adjusted Operating Shareholders’ Equity and ABV
(in millions, except per share amounts)
| As of | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Total | Per Share | Total | Per Share | ||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 125.32 | $ | 5,495 | $ | 108.80 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 55 | 1.21 | 49 | 0.96 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 22 | 0.48 | 2 | 0.05 | |||||||||||||||||||
| Unrealized gain (loss) on investment portfolio | (149) | (3.28) | (397) | (7.86) | |||||||||||||||||||
| Less taxes | 6 | 0.13 | 46 | 0.90 | |||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,729 | 126.78 | 5,795 | 114.75 | |||||||||||||||||||
| Pre-tax adjustments: | |||||||||||||||||||||||
| Less: DAC | 192 | 4.25 | 176 | 3.47 | |||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 194 | 4.30 | 202 | 3.99 | |||||||||||||||||||
| Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed | 3,367 | 74.51 | 3,473 | 68.75 | |||||||||||||||||||
| Plus taxes | (674) | (14.91) | (702) | (13.90) | |||||||||||||||||||
| ABV | $ | 8,424 | $ | 186.43 | $ | 8,592 | $ | 170.12 | |||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | |||||||||||||||||||||||
| Adjusted operating shareholders’ equity | $ | 8 | $ | 0.18 | $ | — | $ | 0.01 | |||||||||||||||
| ABV | 3 | 0.07 | (6) | (0.13) | |||||||||||||||||||
| Shares outstanding at the end of the period | 45.2 | 50.5 | |||||||||||||||||||||
Net Present Value of Estimated Net Future Revenue
The Company’s management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.
PVP or Present Value of New Business Production
The Company’s management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured
17
obligation the Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.
Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.
Reconciliation of GWP to PVP
(in millions)
| Quarter Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 55 | $ | (3) | $ | (1) | $ | 10 | $ | 61 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 16 | (3) | (1) | 10 | 22 | |||||||||||||||||||||||||||
| Upfront GWP | 39 | — | — | — | 39 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 15 | 18 | 10 | 10 | 53 | |||||||||||||||||||||||||||
| PVP | $ | 54 | $ | 18 | $ | 10 | $ | 10 | $ | 92 | ||||||||||||||||||||||
| Quarter Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 77 | $ | 102 | $ | 1 | $ | 6 | $ | 186 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments(1) | 44 | 101 | 1 | 6 | 152 | |||||||||||||||||||||||||||
| Upfront GWP | 33 | 1 | — | — | 34 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 44 | 22 | 1 | 20 | 87 | |||||||||||||||||||||||||||
| PVP | $ | 77 | $ | 23 | $ | 1 | $ | 20 | $ | 121 | ||||||||||||||||||||||
| Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 230 | $ | (9) | $ | 7 | $ | 28 | $ | 256 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments(1) | 80 | (9) | 6 | 28 | 105 | |||||||||||||||||||||||||||
| Upfront GWP | 150 | — | 1 | — | 151 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 56 | 37 | 12 | 30 | 135 | |||||||||||||||||||||||||||
| PVP | $ | 206 | $ | 37 | $ | 13 | $ | 30 | $ | 286 | ||||||||||||||||||||||
18
| Year Ended December 31, 2024 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non-U.S. | U.S. | Non-U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 259 | $ | 136 | $ | 20 | $ | 25 | $ | 440 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments(1) | 143 | 115 | 17 | 25 | 300 | |||||||||||||||||||||||||||
| Upfront GWP | 116 | 21 | 3 | — | 140 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 154 | 46 | 22 | 40 | 262 | |||||||||||||||||||||||||||
| PVP | $ | 270 | $ | 67 | $ | 25 | $ | 40 | $ | 402 | ||||||||||||||||||||||
________________________________
(1) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.
(2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.
19
Conference Call and Webcast Information
The Company will host a conference call for investors at 8:00 a.m. Eastern Time (9:00 a.m. Atlantic Time) on Friday, February 27, 2026. The conference call will be available via live webcast in the Investor Information section of the Company’s website at AssuredGuaranty.com or by dialing 1-833-470-1428 (in the U.S.) or 1-404-975-4839 (International); the access code is 155898.
A replay of the conference call will be available approximately three hours after the call ends. The webcast replay will be available for 90 days in the Investor Information section of the Company’s website at AssuredGuaranty.com, and the telephone replay will be available for 30 days by dialing 1-866-813-9403 (in the U.S.) or 1-929-458-6194 (International); the access code is 562318.
Please refer to Assured Guaranty’s December 31, 2025 Financial Supplement, which is posted on the Company’s website at assuredguaranty.com/agldata, for more information on the Company’s financial guaranty portfolio, investment portfolio and other items. In addition, the Company is posting at assuredguaranty.com/presentations its “December 31, 2025 Equity Investor Presentation.”
The Company plans to post by early next week on its website at assuredguaranty.com/agldata the following:
•“Public Finance Transactions in 4Q 2025,” which lists the U.S. public finance new issues insured by the Company in fourth quarter 2025, and
•“Structured Finance Transactions at December 31, 2025,” which lists the Company’s structured finance exposure as of that date.
In addition, the Company will post on its website, when available, Assured Guaranty Inc.’s financial supplement and its “Fixed Income Presentation” for the current quarter. Those documents will be furnished to the Securities and Exchange Commission in a Current Report on Form 8-K.
# # #
Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates, and in the annuity reinsurance business through Assured Life Reinsurance Ltd. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.
20
Cautionary Statement Regarding Forward-Looking Statements
Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among factors that could cause actual results to differ materially are:
(i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates, tariff regimes or general economic conditions, including the possibility of a recession or stagflation; (ii) geopolitical risk, terrorism and political violence risk, including regional and global military conflicts, and strategic competition and trade confrontation; (iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including the possibility of malicious cyber attacks, dissemination of misinformation, and disruption of markets in which Assured Guaranty participates; (iv) the impact of a United States (U.S.) government shutdown and/or the possibility of payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (v) developments in the world’s financial and capital markets, including stresses in banking institutions, and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (vi) reduction in the amount or market rates of return of available insurance opportunities and/or the demand for Assured Guaranty’s insurance; (vii) the failure or ineffectiveness of any of Assured Guaranty’s risk mitigation strategies or activities, including distressed credit workouts, management of exposure limits, and hedging activities; (viii) the possibility that investments made by Assured Guaranty for its investment portfolio do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (ix) the possibility that Assured Guaranty’s strategies or strategic transactions do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences; (x) the impact of the announcement of Assured Guaranty’s strategies on Assured Guaranty and the perception of Assured Guaranty by its investors, regulators, rating agencies, and employees; (xi) risks related to the expansion into life and annuity reinsurance and the launching of Assured Life Reinsurance Ltd. (Assured Life Re); (xii) the failure of Assured Guaranty to successfully integrate acquired businesses, including Assured Guaranty’s acquisition of Warwick Company (UK) Limited; (xiii) loss of key personnel; (xiv) the possibility that longevity, mortality, lapse, withdrawal or surrender experience in Assured Guaranty’s life and annuity reinsurance business is less favorable than the rates Assured Guaranty used in pricing its reinsurance agreements; (xv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a noncontrolling interest; (xvi) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities (CCS), and its consolidated variable interest entities (VIEs); (xvii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing, changes in applicable laws or regulations or other factors will result in credit losses or liquidity claims on obligations that Assured Guaranty insures or reinsures; (xviii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures; (xix) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors, lines or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences; (xx) increased competition, including from new market entrants and alternative forms of credit protection; (xxi) any rating agency action in relation to Assured Guaranty, and/or of any securities Assured Guaranty has issued, and/or of transactions that Assured Guaranty has insured; (xxii) the inability of Assured Guaranty to access capital on acceptable terms or sufficient liquidity to cover unexpected stress; (xxiii) noncompliance with, and/or changes in, applicable laws or regulations, including insurance, bankruptcy and tax laws, tariffs, or other governmental actions; (xxiv) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences; (xxv) difficulties or delays with the execution of Assured Guaranty’s business strategy; (xxvi) changes in applicable accounting policies or practices; (xxvii) public health crises,
21
including pandemics and endemics, and the governmental and private actions taken in response to such events; (xxviii) natural or man-made catastrophes; (xxix) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (xxx) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (xxxi) other risks and uncertainties that have not been identified at this time; and (xxxii) management’s response to these factors.
Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of February 26, 2026, and Assured Guaranty undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Contact Information
Robert Tucker
Senior Managing Director, Investor Relations and Corporate Communications
212-339-0861
rtucker@agltd.com
Ashweeta Durani
Director, Media Relations
212-408-6042
adurani@agltd.com
22
Assured Guaranty Ltd.
December 31, 2025
Financial Supplement
| Table of Contents | Page | ||||||||||||||||
Selected Financial Highlights | 1 | ||||||||||||||||
Condensed Consolidated Statements of Operations (unaudited) | 3 | ||||||||||||||||
Condensed Consolidated Balance Sheets (unaudited) | 4 | ||||||||||||||||
Selected Financial Highlights GAAP to Non-GAAP Reconciliations | 5 | ||||||||||||||||
Income Components | 8 | ||||||||||||||||
Fixed-Maturity Securities, Short-Term Investments and Cash | 12 | ||||||||||||||||
Investment Portfolio, Cash and CIVs | 13 | ||||||||||||||||
Income from Investment Portfolio and CIVs | 15 | ||||||||||||||||
Insurance Segment: | 17 | ||||||||||||||||
Insurance Segment Results | 18 | ||||||||||||||||
Claims-Paying Resources | 19 | ||||||||||||||||
New Business Production | 20 | ||||||||||||||||
Gross Par Written | 21 | ||||||||||||||||
New Business Production by Quarter | 22 | ||||||||||||||||
Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues | 23 | ||||||||||||||||
Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid (Recovered) | 24 | ||||||||||||||||
Loss Measures | 25 | ||||||||||||||||
Net Expected Loss to be Expensed | 26 | ||||||||||||||||
Financial Guaranty Profile | 27 | ||||||||||||||||
Specialty Business | 30 | ||||||||||||||||
Expected Amortization of Net Par Outstanding | 31 | ||||||||||||||||
Puerto Rico Profile | 32 | ||||||||||||||||
Direct Pooled Corporate Obligations Profile | 33 | ||||||||||||||||
Below Investment Grade Exposures | 34 | ||||||||||||||||
Largest Exposures by Sector | 37 | ||||||||||||||||
Asset Management Segment | 40 | ||||||||||||||||
Asset Management Segment Results | 41 | ||||||||||||||||
Corporate Division | 42 | ||||||||||||||||
Corporate Division Results | 43 | ||||||||||||||||
Other | 44 | ||||||||||||||||
Other Results | 45 | ||||||||||||||||
Summary | 47 | ||||||||||||||||
Summary of Financial and Statistical Data | 48 | ||||||||||||||||
Summary of GAAP to Non-GAAP Reconciliations | 49 | ||||||||||||||||
Glossary | 51 | ||||||||||||||||
Non-GAAP Financial Measures | 54 | ||||||||||||||||
This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2025. Certain prior year balances have been reclassified to conform to the current year’s presentation.
Cautionary Statement Regarding Forward Looking Statements
Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty’s forward looking statements could be affected by many events. These events include (i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates, tariff regimes or general economic conditions, including the possibility of a recession or stagflation; (ii) geopolitical risk, terrorism and political violence risk, including regional and global military conflicts, and strategic competition and trade confrontation; (iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including the possibility of malicious cyber attacks, dissemination of misinformation, and disruption of markets in which Assured Guaranty participates; (iv) the impact of a United States (U.S.) government shutdown and/or the possibility of payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (v) developments in the world’s financial and capital markets, including stresses in banking institutions, and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (vi) reduction in the amount or market rates of return of available insurance opportunities and/or the demand for Assured Guaranty’s insurance; (vii) the failure or ineffectiveness of any of Assured Guaranty’s risk mitigation strategies or activities, including distressed credit workouts, management of exposure limits, and hedging activities; (viii) the possibility that investments made by Assured Guaranty for its investment portfolio do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (ix) the possibility that Assured Guaranty’s strategies or strategic transactions do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences; (x) the impact of the announcement of Assured Guaranty’s strategies on Assured Guaranty and the perception of Assured Guaranty by its investors, regulators, rating agencies, and employees; (xi) risks related to the expansion into life and annuity reinsurance and the launching of Assured Life Reinsurance Ltd. (Assured Life Re); (xii) the failure of Assured Guaranty to successfully integrate acquired businesses, including Assured Guaranty’s acquisition of Warwick Company (UK) Limited; (xiii) loss of key personnel; (xiv) the possibility that longevity, mortality, lapse, withdrawal or surrender experience in Assured Guaranty’s life and annuity reinsurance business is less favorable than the rates Assured Guaranty used in pricing its reinsurance agreements; (xv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a noncontrolling interest; (xvi) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities (CCS), and its consolidated variable interest entities (VIEs); (xvii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing, changes in applicable laws or regulations or other factors will result in credit losses or liquidity claims on obligations that Assured Guaranty insures or reinsures; (xviii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures; (xix) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors, lines or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences; (xx) increased competition, including from new market entrants and alternative forms of credit protection; (xxi) any rating agency action in relation to Assured Guaranty, and/or of any securities Assured Guaranty has issued, and/or of transactions that Assured Guaranty has insured; (xxii) the inability of Assured Guaranty to access capital on acceptable terms or sufficient liquidity to cover unexpected stress; (xxiii) noncompliance with, and/or changes in, applicable laws or regulations, including insurance, bankruptcy and tax laws, tariffs, or other governmental actions; (xxiv) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences; (xxv) difficulties or delays with the execution of Assured Guaranty’s business strategy; (xxvi) changes in applicable accounting policies or practices; (xxvii) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (xxviii) natural or man-made catastrophes; (xxix) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (xxx) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (xxxi) other risks and uncertainties that have not been identified at this time; and (xxxii) management’s response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Assured Guaranty Ltd.
Selected Financial Highlights (1 of 2)
(dollars in millions, except per share amounts)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
GAAP (1) Highlights | |||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | |||||||||||||||
| Net income (loss) attributable to AGL per diluted share | $ | 2.53 | $ | 0.35 | $ | 10.26 | $ | 6.87 | |||||||||||||||
| Weighted average shares outstanding | |||||||||||||||||||||||
| Basic shares outstanding | 45.9 | 50.9 | 48.1 | 53.3 | |||||||||||||||||||
| Diluted shares outstanding | 46.6 | 51.9 | 48.7 | 54.3 | |||||||||||||||||||
| Effective tax rate on net income | 16.1 | % | 26.6 | % | 17.9 | % | 19.7 | % | |||||||||||||||
GAAP return on equity (ROE) (4) | 8.4 | % | 1.3 | % | 9.0 | % | 6.7 | % | |||||||||||||||
Non-GAAP Highlights (2) | |||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | |||||||||||||||
Adjusted operating income (loss) per diluted share (2) | $ | 2.32 | $ | 1.27 | $ | 9.08 | $ | 7.10 | |||||||||||||||
| Weighted average diluted shares outstanding | 46.6 | 51.9 | 48.7 | 54.3 | |||||||||||||||||||
Effective tax rate on adjusted operating income (3) | 15.3 | % | 19.4 | % | 17.9 | % | 19.2 | % | |||||||||||||||
Adjusted operating ROE (2)(4) | 7.6 | % | 4.5 | % | 7.7 | % | 6.6 | % | |||||||||||||||
Components of adjusted operating income (loss) (2) | |||||||||||||||||||||||
| Insurance segment | $ | 119 | $ | 98 | $ | 508 | $ | 525 | |||||||||||||||
| Asset Management segment | 1 | — | 20 | 5 | |||||||||||||||||||
| Corporate division | (16) | (34) | (89) | (135) | |||||||||||||||||||
Other (6) | 5 | 2 | 6 | (6) | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | |||||||||||||||
| Capital Returned to Common Shareholders | |||||||||||||||||||||||
Common share repurchases (7) | $ | 131 | $ | 91 | $ | 500 | $ | 502 | |||||||||||||||
| Dividends | 16 | 16 | 69 | 68 | |||||||||||||||||||
| Total capital returned to common shareholders | $ | 147 | $ | 107 | $ | 569 | $ | 570 | |||||||||||||||
| Insurance Segment | |||||||||||||||||||||||
| Gross written premiums (GWP) | $ | 61 | $ | 186 | $ | 256 | $ | 440 | |||||||||||||||
Present value of new business production (PVP) (2) | 92 | 121 | 286 | 402 | |||||||||||||||||||
| Gross par written | 8,377 | 11,226 | 32,916 | 31,829 | |||||||||||||||||||
| Effect of refundings and terminations on GAAP measures: | |||||||||||||||||||||||
| Net earned premiums, pre-tax | $ | 16 | $ | 17 | $ | 30 | $ | 73 | |||||||||||||||
| Fair value gains (losses) of credit derivatives, pre-tax | — | — | 41 | — | |||||||||||||||||||
| Net income effect | 11 | 14 | 55 | 57 | |||||||||||||||||||
| Net income per diluted share | 0.25 | 0.27 | 1.13 | 1.05 | |||||||||||||||||||
| Effect of refundings and terminations on non-GAAP measures: | |||||||||||||||||||||||
Operating net earned premiums and credit derivative revenues (5), pre-tax | $ | 16 | $ | 17 | $ | 71 | $ | 73 | |||||||||||||||
Adjusted operating income (5) effect | 11 | 14 | 55 | 57 | |||||||||||||||||||
Adjusted operating income per diluted share (5) | 0.25 | 0.27 | 1.13 | 1.05 | |||||||||||||||||||
1) Accounting principles generally accepted in the United States of America (GAAP).
2) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
3) Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.
4) Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.
5) Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums and credit derivative revenues) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
6) Represents the effect of consolidating financial guaranty VIEs (FG VIEs) and consolidated investment vehicles (CIVs) (FG VIE and CIV consolidation).
7) Excludes commissions.
1
Assured Guaranty Ltd.
Selected Financial Highlights (2 of 2)
| As of | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 125.32 | $ | 5,495 | $ | 108.80 | |||||||||||||||
Adjusted operating shareholders’ equity (1) | 5,729 | 126.78 | 5,795 | 114.75 | |||||||||||||||||||
Adjusted book value (ABV) (1) | 8,424 | 186.43 | 8,592 | 170.12 | |||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | |||||||||||||||||||||||
| Adjusted operating shareholders’ equity | 8 | 0.18 | — | 0.01 | |||||||||||||||||||
| ABV | 3 | 0.07 | (6) | (0.13) | |||||||||||||||||||
| Shares outstanding at the end of period | 45.2 | 50.5 | |||||||||||||||||||||
Claims-paying resources (2) | $ | 10,094 | $ | 10,211 | |||||||||||||||||||
| As of | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Exposure | (in billions) | ||||||||||||||||||||||
| Financial guaranty net debt service outstanding | $ | 440.8 | $ | 416.0 | |||||||||||||||||||
| Financial guaranty net par outstanding: | |||||||||||||||||||||||
| Investment grade | $ | 268.3 | $ | 251.4 | |||||||||||||||||||
| Below-investment-grade (BIG) | 8.8 | 10.2 | |||||||||||||||||||||
| Total | $ | 277.1 | $ | 261.6 | |||||||||||||||||||
1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
2) See page 19 for additional detail on claims-paying resources.
2
Assured Guaranty Ltd.
Condensed Consolidated Statements of Operations (unaudited)
(in millions, except per share amounts)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | 106 | $ | 103 | $ | 380 | $ | 403 | |||||||||||||||
| Net investment income | 89 | 93 | 359 | 340 | |||||||||||||||||||
| Net realized investment gains (losses) | (8) | 7 | (40) | 9 | |||||||||||||||||||
| Fair value gains (losses) on credit derivatives | 11 | 5 | 121 | 24 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 11 | 2 | 20 | (10) | |||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | 6 | (11) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | 39 | 15 | 79 | 69 | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | 3 | (70) | 96 | (27) | |||||||||||||||||||
| Fair value gains (losses) on trading securities | 2 | — | 13 | 52 | |||||||||||||||||||
| Other income (loss) | 24 | 1 | 76 | 23 | |||||||||||||||||||
| Total revenues | 277 | 156 | 1,110 | 872 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss and loss adjustment expense (LAE) (benefit) | 18 | 28 | 56 | (26) | |||||||||||||||||||
| Interest expense | 22 | 23 | 89 | 91 | |||||||||||||||||||
| Amortization of deferred acquisition costs (DAC) | 6 | 6 | 22 | 20 | |||||||||||||||||||
| Employee compensation and benefit expenses | 49 | 49 | 209 | 202 | |||||||||||||||||||
| Other operating expenses | 43 | 35 | 174 | 159 | |||||||||||||||||||
| Total expenses | 138 | 141 | 550 | 446 | |||||||||||||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 139 | 15 | 560 | 426 | |||||||||||||||||||
| Equity in earnings (losses) of investees | 26 | 15 | 102 | 62 | |||||||||||||||||||
| Income (loss) before income taxes | 165 | 30 | 662 | 488 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | 27 | 8 | 119 | 96 | |||||||||||||||||||
| Net income (loss) | 138 | 22 | 543 | 392 | |||||||||||||||||||
| Less: Noncontrolling interest | 19 | 4 | 40 | 16 | |||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Basic | $ | 2.56 | $ | 0.36 | $ | 10.39 | $ | 7.01 | |||||||||||||||
| Diluted | $ | 2.53 | $ | 0.35 | $ | 10.26 | $ | 6.87 | |||||||||||||||
3
Assured Guaranty Ltd.
Condensed Consolidated Balance Sheets (unaudited)
(in millions)
| As of | ||||||||||||||
| December 31, | December 31, | |||||||||||||
| 2025 | 2024 | |||||||||||||
| Assets | ||||||||||||||
| Investments: | ||||||||||||||
| Fixed-maturity securities, available-for-sale, at fair value | $ | 6,369 | $ | 6,369 | ||||||||||
| Fixed-maturity securities, trading, at fair value | 124 | 147 | ||||||||||||
| Short-term investments, at fair value | 903 | 1,221 | ||||||||||||
| Other invested assets | 1,091 | 926 | ||||||||||||
| Total investments | 8,487 | 8,663 | ||||||||||||
| Cash | 388 | 121 | ||||||||||||
| Premiums receivable, net of commissions payable | 1,572 | 1,551 | ||||||||||||
| DAC | 192 | 176 | ||||||||||||
| Salvage and subrogation recoverable | 449 | 396 | ||||||||||||
| FG VIEs’ assets | 212 | 147 | ||||||||||||
| Assets of CIVs | 175 | 101 | ||||||||||||
| Other assets | 701 | 746 | ||||||||||||
| Total assets | $ | 12,176 | $ | 11,901 | ||||||||||
| Liabilities | ||||||||||||||
| Unearned premium reserve | $ | 3,625 | $ | 3,719 | ||||||||||
| Loss and LAE reserve | 309 | 268 | ||||||||||||
| Long-term debt | 1,704 | 1,699 | ||||||||||||
| FG VIEs’ liabilities | 198 | 164 | ||||||||||||
| Other liabilities | 551 | 498 | ||||||||||||
| Total liabilities | 6,387 | 6,348 | ||||||||||||
| Shareholders’ equity | ||||||||||||||
| Common shares | — | 1 | ||||||||||||
| Retained earnings | 5,830 | 5,878 | ||||||||||||
| Accumulated other comprehensive income (loss) | (168) | (385) | ||||||||||||
| Deferred equity compensation | 1 | 1 | ||||||||||||
| Total shareholders’ equity attributable to AGL | 5,663 | 5,495 | ||||||||||||
| Non-redeemable noncontrolling interest | 126 | 58 | ||||||||||||
| Total shareholders’ equity | 5,789 | 5,553 | ||||||||||||
| Total liabilities and shareholders’ equity | $ | 12,176 | $ | 11,901 | ||||||||||
4
Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (1 of 3)
(in millions, except per share amounts)
| Adjusted Operating Income Reconciliation | Three Months Ended | Year Ended | |||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Realized gains (losses) on investments | (8) | 7 | (40) | 9 | |||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 8 | 3 | 6 | 14 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 11 | 2 | 20 | (10) | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 3 | (68) | 85 | (26) | |||||||||||||||||||
| Total pre-tax adjustments | 14 | (56) | 71 | (13) | |||||||||||||||||||
| Less tax effect on pre-tax adjustments | (4) | 8 | (13) | — | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | |||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $ | 5 | $ | 2 | $ | 6 | $ | (6) | |||||||||||||||
| Components of adjusted operating income: | |||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||
| Insurance | $ | 119 | $ | 98 | $ | 508 | $ | 525 | |||||||||||||||
| Asset Management | 1 | — | 20 | 5 | |||||||||||||||||||
| Total segments | 120 | 98 | 528 | 530 | |||||||||||||||||||
| Corporate division | (16) | (34) | (89) | (135) | |||||||||||||||||||
| Other | 5 | 2 | 6 | (6) | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 109 | $ | 66 | $ | 445 | $ | 389 | |||||||||||||||
| Per diluted share: | |||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 2.53 | $ | 0.35 | $ | 10.26 | $ | 6.87 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Realized gains (losses) on investments | (0.18) | 0.13 | (0.82) | 0.16 | |||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 0.18 | 0.05 | 0.12 | 0.27 | |||||||||||||||||||
Fair value gains (losses) on CCS | 0.22 | 0.03 | 0.40 | (0.19) | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 0.06 | (1.29) | 1.74 | (0.47) | |||||||||||||||||||
| Total pre-tax adjustments | 0.28 | (1.08) | 1.44 | (0.23) | |||||||||||||||||||
| Less tax effect on pre-tax adjustments | (0.07) | 0.16 | (0.26) | — | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 2.32 | $ | 1.27 | $ | 9.08 | $ | 7.10 | |||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $ | 0.12 | $ | 0.04 | $ | 0.13 | $ | (0.12) | |||||||||||||||
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
5
Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (2 of 3)
(dollars in millions)
| ROE Reconciliation and Calculation | ||||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2023 | ||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 5,658 | $ | 5,495 | $ | 5,728 | $ | 5,713 | ||||||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,729 | 5,750 | 5,795 | 5,875 | 5,990 | |||||||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders’ equity | 8 | 3 | — | (5) | 5 | |||||||||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 119 | $ | 18 | $ | 503 | $ | 376 | ||||||||||||||||||||||||
| Adjusted operating income (loss) | 109 | 66 | 445 | 389 | ||||||||||||||||||||||||||||
| Average shareholders’ equity attributable to AGL | $ | 5,661 | $ | 5,612 | $ | 5,579 | $ | 5,604 | ||||||||||||||||||||||||
| Average adjusted operating shareholders’ equity | 5,740 | 5,835 | 5,762 | 5,893 | ||||||||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity | 6 | (3) | 4 | 3 | ||||||||||||||||||||||||||||
GAAP ROE (1) | 8.4 | % | 1.3 | % | 9.0 | % | 6.7 | % | ||||||||||||||||||||||||
Adjusted operating ROE (1) | 7.6 | % | 4.5 | % | 7.7 | % | 6.6 | % | ||||||||||||||||||||||||
1) Quarterly ROE calculations represent annualized returns.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
6
Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (3 of 3)
(in millions)
| As of | ||||||||||||||||||||||||||||||||
| December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||
| 2025 | 2025 | 2024 | 2024 | 2023 | ||||||||||||||||||||||||||||
| Reconciliation of shareholders’ equity attributable to AGL to ABV: | ||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 5,658 | $ | 5,495 | $ | 5,728 | $ | 5,713 | ||||||||||||||||||||||
| Less pre-tax reconciling items: | ||||||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 55 | 46 | 49 | 45 | 34 | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 22 | 12 | 2 | 1 | 13 | |||||||||||||||||||||||||||
| Unrealized gain (loss) on investment portfolio | (149) | (159) | (397) | (211) | (361) | |||||||||||||||||||||||||||
| Less taxes | 6 | 9 | 46 | 18 | 37 | |||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,729 | 5,750 | 5,795 | 5,875 | 5,990 | |||||||||||||||||||||||||||
| Pre-tax reconciling items: | ||||||||||||||||||||||||||||||||
| Less: DAC | 192 | 190 | 176 | 172 | 161 | |||||||||||||||||||||||||||
Plus: Net present value of estimated net future revenue (1) | 194 | 191 | 202 | 189 | 199 | |||||||||||||||||||||||||||
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed (1) | 3,367 | 3,401 | 3,473 | 3,370 | 3,436 | |||||||||||||||||||||||||||
| Plus taxes | (674) | (681) | (702) | (680) | (699) | |||||||||||||||||||||||||||
| ABV | $ | 8,424 | $ | 8,471 | $ | 8,592 | $ | 8,582 | $ | 8,765 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||||||||
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $2, $0, $0, $(1), and $1) | $ | 8 | $ | 3 | $ | — | $ | (5) | $ | 5 | ||||||||||||||||||||||
ABV (net of tax provision (benefit) of $1, $0, $(2), $(2), and $0) | $ | 3 | $ | (3) | $ | (6) | $ | (9) | $ | — | ||||||||||||||||||||||
1) The timing and cumulative amount of actual collections and net earned premiums may differ from expected collections and expected net earned premiums due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the consumer price indices, changes in expected lives, new business and changes in ratings of the insured obligations and/or the Company’s insurance subsidiaries.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
7
Assured Guaranty Ltd.
Income Components (1 of 4)
(in millions)
Components of Income for the Three Months Ended December 31, 2025
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 107 | $ | — | $ | — | $ | (1) | $ | — | $ | 106 | |||||||||||||||||||||||
| Net investment income | 89 | — | 3 | (3) | — | 89 | |||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | (8) | (8) | |||||||||||||||||||||||||||||
Fair value gains (losses) on credit derivatives (2) | 3 | — | — | — | 8 | 11 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | 11 | 11 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | 39 | — | 39 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | — | — | — | — | 3 | 3 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | 2 | — | — | — | — | 2 | |||||||||||||||||||||||||||||
| Other income (loss) | 25 | — | — | (1) | — | 24 | |||||||||||||||||||||||||||||
| Total revenues | 226 | — | 3 | 34 | 14 | 277 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) (3) | 19 | — | — | (1) | — | 18 | |||||||||||||||||||||||||||||
| Interest expense | — | — | 24 | (2) | — | 22 | |||||||||||||||||||||||||||||
| Amortization of DAC | 6 | — | — | — | — | 6 | |||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 42 | — | 7 | — | — | 49 | |||||||||||||||||||||||||||||
| Other operating expenses | 34 | — | 9 | — | — | 43 | |||||||||||||||||||||||||||||
| Total expenses | 101 | — | 40 | (3) | — | 138 | |||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 15 | 2 | 20 | (11) | — | 26 | |||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 21 | 1 | (1) | 2 | 4 | 27 | |||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
| Total | $ | 119 | $ | 1 | $ | (16) | $ | 5 | $ | 10 | $ | 119 | |||||||||||||||||||||||
1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
8
Assured Guaranty Ltd.
Income Components (2 of 4)
(in millions)
Components of Income for the Three Months Ended December 31, 2024
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 104 | $ | — | $ | — | $ | (1) | $ | — | $ | 103 | |||||||||||||||||||||||
| Net investment income | 93 | — | 4 | (4) | — | 93 | |||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | 7 | 7 | |||||||||||||||||||||||||||||
Fair value gains (losses) on credit derivatives (2) | 3 | — | — | — | 2 | 5 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | 15 | — | 15 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | (2) | — | — | — | (68) | (70) | |||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Other income (loss) | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||
| Total revenues | 199 | — | 4 | 10 | (57) | 156 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) (3) | 31 | — | — | (2) | (1) | 28 | |||||||||||||||||||||||||||||
| Interest expense | — | — | 26 | (3) | — | 23 | |||||||||||||||||||||||||||||
| Amortization of DAC | 6 | — | — | — | — | 6 | |||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 42 | — | 7 | — | — | 49 | |||||||||||||||||||||||||||||
| Other operating expenses | 27 | — | 8 | — | — | 35 | |||||||||||||||||||||||||||||
| Total expenses | 106 | — | 41 | (5) | (1) | 141 | |||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 19 | — | 5 | (9) | — | 15 | |||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 14 | — | 2 | — | (8) | 8 | |||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||
| Total | $ | 98 | $ | — | $ | (34) | $ | 2 | $ | (48) | $ | 18 | |||||||||||||||||||||||
1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
9
Assured Guaranty Ltd.
Income Components (3 of 4)
(in millions)
Components of Income for the Year Ended December 31, 2025
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 383 | $ | — | $ | — | $ | (3) | $ | — | $ | 380 | |||||||||||||||||||||||
| Net investment income | 358 | — | 13 | (12) | — | 359 | |||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | (40) | (40) | |||||||||||||||||||||||||||||
Fair value gains (losses) on credit derivatives (2) | 52 | — | — | — | 69 | 121 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | 20 | 20 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | — | 6 | — | 6 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | 79 | — | 79 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | 11 | — | — | — | 85 | 96 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | 13 | — | — | — | — | 13 | |||||||||||||||||||||||||||||
| Other income (loss) | 53 | 29 | 1 | (7) | — | 76 | |||||||||||||||||||||||||||||
| Total revenues | 870 | 29 | 14 | 63 | 134 | 1,110 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) (3) | (8) | — | — | 1 | 63 | 56 | |||||||||||||||||||||||||||||
| Interest expense | — | — | 98 | (9) | — | 89 | |||||||||||||||||||||||||||||
| Amortization of DAC | 22 | — | — | — | — | 22 | |||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 182 | — | 27 | — | — | 209 | |||||||||||||||||||||||||||||
| Other operating expenses | 125 | 17 | 32 | — | — | 174 | |||||||||||||||||||||||||||||
| Total expenses | 321 | 17 | 157 | (8) | 63 | 550 | |||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 63 | 14 | 48 | (23) | — | 102 | |||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 104 | 6 | (6) | 2 | 13 | 119 | |||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | 40 | — | 40 | |||||||||||||||||||||||||||||
| Total | $ | 508 | $ | 20 | $ | (89) | $ | 6 | $ | 58 | $ | 503 | |||||||||||||||||||||||
1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
10
Assured Guaranty Ltd.
Income Components (4 of 4)
(in millions)
Components of Income for the Year Ended December 31, 2024
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 406 | $ | — | $ | — | $ | (3) | $ | — | $ | 403 | |||||||||||||||||||||||
| Net investment income | 339 | — | 14 | (13) | — | 340 | |||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | 9 | 9 | |||||||||||||||||||||||||||||
Fair value gains (losses) on credit derivatives (2) | 11 | — | — | — | 13 | 24 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | (10) | (10) | |||||||||||||||||||||||||||||
| Fair value gains (losses) on FG VIEs | — | — | — | (11) | — | (11) | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | 69 | — | 69 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | (1) | — | — | — | (26) | (27) | |||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | 52 | — | — | — | — | 52 | |||||||||||||||||||||||||||||
| Other income (loss) | 14 | 10 | 3 | (4) | — | 23 | |||||||||||||||||||||||||||||
| Total revenues | 821 | 10 | 17 | 38 | (14) | 872 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) (3) | (18) | — | — | (7) | (1) | (26) | |||||||||||||||||||||||||||||
| Interest expense | — | — | 101 | (10) | — | 91 | |||||||||||||||||||||||||||||
| Amortization of DAC | 20 | — | — | — | — | 20 | |||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 170 | — | 32 | — | — | 202 | |||||||||||||||||||||||||||||
| Other operating expenses | 117 | 6 | 36 | — | — | 159 | |||||||||||||||||||||||||||||
| Total expenses | 289 | 6 | 169 | (17) | (1) | 446 | |||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 102 | 2 | 5 | (47) | — | 62 | |||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 109 | 1 | (12) | (2) | — | 96 | |||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | 16 | — | 16 | |||||||||||||||||||||||||||||
| Total | $ | 525 | $ | 5 | $ | (135) | $ | (6) | $ | (13) | $ | 376 | |||||||||||||||||||||||
1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
11
Assured Guaranty Ltd.
Fixed-Maturity Securities, Short-Term Investments and Cash
As of December 31, 2025
(dollars in millions)
| Amortized Cost | Allowance for Credit Losses | Pre-Tax Book Yield | After-Tax Book Yield | Fair Value | Annualized Investment Income (1) | |||||||||||||||||||||||||||||||||
| Fixed maturity securities, available-for-sale: | ||||||||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions (3) | $ | 1,816 | $ | (13) | 3.99 | % | 3.44 | % | $ | 1,769 | $ | 72 | ||||||||||||||||||||||||||
| U.S. government and agencies | 55 | — | 3.83 | 3.18 | 52 | 2 | ||||||||||||||||||||||||||||||||
Corporate securities (3) | 2,998 | (6) | 4.49 | 3.75 | 2,952 | 135 | ||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBS) (2)(3) | 678 | (26) | 5.18 | 4.13 | 615 | 35 | ||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | 197 | — | 4.36 | 3.47 | 198 | 9 | ||||||||||||||||||||||||||||||||
| Asset-backed securities (ABS) | ||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligation (CLOs) | 499 | (9) | 9.85 | 7.78 | 456 | 49 | ||||||||||||||||||||||||||||||||
Other ABS (3) | 206 | — | 5.98 | 4.72 | 209 | 12 | ||||||||||||||||||||||||||||||||
| Non-U.S. government securities | 123 | — | 3.25 | 3.23 | 118 | 4 | ||||||||||||||||||||||||||||||||
| Total fixed maturity securities, available-for-sale | 6,572 | (54) | 4.84 | 4.02 | 6,369 | 318 | ||||||||||||||||||||||||||||||||
| Short-term investments | 903 | — | 3.71 | 3.01 | 903 | 34 | ||||||||||||||||||||||||||||||||
Cash (4) | 388 | — | — | — | 388 | — | ||||||||||||||||||||||||||||||||
| Total | $ | 7,863 | $ | (54) | 4.71 | % | 3.90 | % | $ | 7,660 | $ | 352 | ||||||||||||||||||||||||||
Fixed maturity securities, trading (6) | $ | 124 | ||||||||||||||||||||||||||||||||||||
Ratings (5): | Fair Value | % of Portfolio | ||||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | 52 | 0.8 | % | ||||||||||||||||||||||||||||||||||
| AAA/Aaa | 848 | 13.3 | % | |||||||||||||||||||||||||||||||||||
| AA/Aa | 2,153 | 33.8 | % | |||||||||||||||||||||||||||||||||||
| A/A | 1,663 | 26.1 | % | |||||||||||||||||||||||||||||||||||
| BBB | 1,108 | 17.4 | % | |||||||||||||||||||||||||||||||||||
| BIG | 299 | 4.7 | % | |||||||||||||||||||||||||||||||||||
Not rated (7) | 246 | 3.9 | % | |||||||||||||||||||||||||||||||||||
| Total fixed maturity securities, available-for-sale | $ | 6,369 | 100.0 | % | ||||||||||||||||||||||||||||||||||
| Duration of available-for-sale fixed maturity securities and short-term investments (in years): | 4.3 | |||||||||||||||||||||||||||||||||||||
1) Represents annualized investment income based on amortized cost and pre-tax book yields.
2) Includes fair value of $133 million in subprime RMBS, of which 92% were rated BIG.
3) Includes securities insured by the Company with expected losses that it subsequently purchased in order to mitigate the economic effect of such insured expected losses (Loss Mitigation Securities) or securities obtained as part of loss mitigation or other risk management strategies.
4) Cash is not included in the yield calculation.
5) Ratings generally reflect the lower of Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC classifications except for Loss Mitigation Securities and certain other securities, which use internal ratings classifications. Loss Mitigation Securities and other securities total $498 million in par with carrying value of $357 million and are primarily included in the BIG category.
6) Primarily includes contingent value instruments received in connection with the resolution of the Company’s exposure to insured Puerto Rico credits experiencing payment default other than Puerto Rico Electric Power Authority (PREPA) in 2022. These securities are not rated.
7) Primarily includes CLO equity tranches.
12
Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (1 of 2)
(dollars in millions)
Investment Portfolio, Cash and CIVs as of December 31, 2025
Insurance Related Subsidiaries (1) | Holding Companies (2) | Other (3) | AGL Consolidated | |||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 6,343 | $ | 26 | $ | — | $ | 6,369 | ||||||||||||||||||
| Fixed-maturity securities, trading | 124 | — | — | 124 | ||||||||||||||||||||||
| Total fixed-maturity securities | 6,467 | 26 | — | 6,493 | ||||||||||||||||||||||
| Short-term investments | 805 | 97 | 1 | 903 | ||||||||||||||||||||||
| Cash | 150 | 14 | 224 | 388 | ||||||||||||||||||||||
| Total short-term investments and cash | 955 | 111 | 225 | 1,291 | ||||||||||||||||||||||
| Other invested assets | ||||||||||||||||||||||||||
| Equity method investments: | ||||||||||||||||||||||||||
| Ownership interest in Sound Point | — | 415 | — | 415 | ||||||||||||||||||||||
| Funds: | ||||||||||||||||||||||||||
| CLOs | 85 | — | — | 85 | ||||||||||||||||||||||
| Private healthcare investing | 149 | 38 | — | 187 | ||||||||||||||||||||||
| Asset-based/specialty finance | 184 | — | (57) | 127 | ||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | 95 | — | 95 | ||||||||||||||||||||||
| Commercial real estate finance | 81 | — | — | 81 | ||||||||||||||||||||||
| Other | 35 | 51 | — | 86 | ||||||||||||||||||||||
| Total funds | 534 | 184 | (57) | 661 | ||||||||||||||||||||||
| Other | — | 3 | — | 3 | ||||||||||||||||||||||
| Total equity method investments | 534 | 602 | (57) | 1,079 | ||||||||||||||||||||||
| Other | 12 | — | — | 12 | ||||||||||||||||||||||
| Other invested assets | 546 | 602 | (57) | 1,091 | ||||||||||||||||||||||
Total investment portfolio and cash (4) | $ | 7,968 | $ | 739 | $ | 168 | $ | 8,875 | ||||||||||||||||||
| CIVs | ||||||||||||||||||||||||||
| Assets of CIVs | $ | — | $ | — | $ | 175 | $ | 175 | ||||||||||||||||||
| Liabilities of CIVs | — | — | — | — | ||||||||||||||||||||||
| Non-redeemable noncontrolling interest | — | — | (98) | (98) | ||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | 77 | $ | 77 | ||||||||||||||||||
1) Includes the Company’s U.S., Bermuda, U.K. and French insurance subsidiaries and AG Asset Strategies LLC (AGAS) (separate company, excluding the effect of consolidating CIVs).
2) Includes AGL, Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH).
3) Includes the Company’s non-insurance subsidiaries, non-U.S. holding companies, CIVs and related intercompany eliminations.
4) The alternative investments, which do not include the Company’s ownership interest in Sound Point, had an inception-to-date annualized internal rate of return (IRR) of 13%, a year-to-date return of 13% and a quarter-to-date return of 4%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.
13
Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (2 of 2)
(dollars in millions)
Investment Portfolio, Cash and CIVs as of December 31, 2024
Insurance Related Subsidiaries (1) | Holding Companies (2) | Other (3) | AGL Consolidated | |||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 6,351 | $ | 18 | $ | — | $ | 6,369 | ||||||||||||||||||
| Fixed-maturity securities, trading | 147 | — | — | 147 | ||||||||||||||||||||||
| Total fixed-maturity securities | 6,498 | 18 | — | 6,516 | ||||||||||||||||||||||
| Short-term investments | 810 | 411 | — | 1,221 | ||||||||||||||||||||||
| Cash | 78 | 8 | 35 | 121 | ||||||||||||||||||||||
| Total short-term investments and cash | 888 | 419 | 35 | 1,342 | ||||||||||||||||||||||
| Other invested assets | ||||||||||||||||||||||||||
| Equity method investments: | ||||||||||||||||||||||||||
| Ownership interest in Sound Point | — | 418 | — | 418 | ||||||||||||||||||||||
| Funds: | ||||||||||||||||||||||||||
| CLOs | 100 | — | — | 100 | ||||||||||||||||||||||
| Private healthcare investing | 153 | — | — | 153 | ||||||||||||||||||||||
| Asset-based/specialty finance | 142 | — | (33) | 109 | ||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | 69 | — | 69 | ||||||||||||||||||||||
| Other | 13 | 49 | — | 62 | ||||||||||||||||||||||
| Total funds | 408 | 118 | (33) | 493 | ||||||||||||||||||||||
| Other | — | 3 | — | 3 | ||||||||||||||||||||||
| Total equity method investments | 408 | 539 | (33) | 914 | ||||||||||||||||||||||
| Other | 9 | 3 | — | 12 | ||||||||||||||||||||||
| Other invested assets | 417 | 542 | (33) | 926 | ||||||||||||||||||||||
Total investment portfolio and cash (4) | $ | 7,803 | $ | 979 | $ | 2 | $ | 8,784 | ||||||||||||||||||
| CIVs | ||||||||||||||||||||||||||
| Assets of CIVs | $ | — | $ | — | $ | 101 | $ | 101 | ||||||||||||||||||
| Liabilities of CIVs | — | — | — | — | ||||||||||||||||||||||
| Non-redeemable noncontrolling interest | — | — | (58) | (58) | ||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | 43 | $ | 43 | ||||||||||||||||||
1) Includes the Company’s U.S., Bermuda, U.K. and French insurance subsidiaries and AGAS (separate company, excluding the effect of consolidating CIVs).
2) Includes AGL, AGUS, AGMH.
3) Includes the Company’s non-insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.
4) The alternative investments, which do not include the Company’s ownership interest in Sound Point, had an inception-to-date annualized IRR of 13%, a year-to-date return of 16% and a quarter-to-date return of 4%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.
14
Assured Guaranty Ltd.
Income from Investment Portfolio and CIVs by Segment (1 of 2)
(in millions)
| Three Months Ended December 31, 2025 | |||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other | Total | |||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 77 | $ | — | $ | 1 | $ | (1) | $ | 77 | |||||||||||||||||||
| Short-term investments | 10 | — | 2 | — | 12 | ||||||||||||||||||||||||
| Other | 2 | — | — | (2) | — | ||||||||||||||||||||||||
| Total net investment income | $ | 89 | $ | — | $ | 3 | $ | (3) | $ | 89 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | 2 | $ | — | $ | — | $ | — | $ | 2 | |||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||
| CLOs | (5) | — | — | — | (5) | ||||||||||||||||||||||||
| Private healthcare investing | 3 | — | 1 | — | 4 | ||||||||||||||||||||||||
| Asset-based/specialty finance | 14 | — | — | (11) | 3 | ||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | — | 18 | — | 18 | ||||||||||||||||||||||||
| Commercial real estate finance | 1 | — | — | — | 1 | ||||||||||||||||||||||||
| Other | 2 | — | 1 | — | 3 | ||||||||||||||||||||||||
Total funds (2) | 15 | — | 20 | (11) | 24 | ||||||||||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||||||||||
| Equity in earnings (losses) of investees | $ | 15 | $ | 2 | $ | 20 | $ | (11) | $ | 26 | |||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | 39 | $ | 39 | |||||||||||||||||||
| Noncontrolling interest | — | — | — | (19) | (19) | ||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | 20 | $ | 20 | |||||||||||||||||||
| Three Months Ended December 31, 2024 | |||||||||||||||||||||||||||||
Insurance (1) | Asset Management | Corporate | Other | Total | |||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 76 | $ | — | $ | — | $ | (1) | $ | 75 | |||||||||||||||||||
| Short-term investments | 13 | — | 4 | — | 17 | ||||||||||||||||||||||||
| Other | 4 | — | — | (3) | 1 | ||||||||||||||||||||||||
| Total net investment income | $ | 93 | $ | — | $ | 4 | $ | (4) | $ | 93 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | 1 | $ | — | $ | — | $ | 1 | |||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||
| CLOs | 9 | — | — | (7) | 2 | ||||||||||||||||||||||||
| Private healthcare investing | 3 | — | — | — | 3 | ||||||||||||||||||||||||
| Asset-based/specialty finance | 6 | — | — | (2) | 4 | ||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | — | 4 | — | 4 | ||||||||||||||||||||||||
| Other | 1 | — | 1 | — | 2 | ||||||||||||||||||||||||
Total funds (2) | 19 | — | 5 | (9) | 15 | ||||||||||||||||||||||||
| Other | — | (1) | — | — | (1) | ||||||||||||||||||||||||
| Equity in earnings (losses) of investees | $ | 19 | $ | — | $ | 5 | $ | (9) | $ | 15 | |||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | 15 | $ | 15 | |||||||||||||||||||
| Noncontrolling interest | — | — | — | (4) | (4) | ||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | 11 | $ | 11 | |||||||||||||||||||
1) Insurance segment includes foreign exchange losses on remeasurement of $1 million.
2) Relates to funds managed by Sound Point and AHP, and certain other managers. Investments in funds are reported on a one-quarter lag.
15
Assured Guaranty Ltd.
Income from Investment Portfolio and CIVs by Segment (2 of 2)
(in millions)
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||
Insurance (1) | Asset Management | Corporate | Other | Total | |||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
Fixed-maturity securities, available-for-sale (2) | $ | 307 | $ | — | $ | 1 | $ | (3) | $ | 305 | |||||||||||||||||||
| Short-term investments | 39 | — | 12 | — | 51 | ||||||||||||||||||||||||
| Other | 12 | — | — | (9) | 3 | ||||||||||||||||||||||||
| Total net investment income | $ | 358 | $ | — | $ | 13 | $ | (12) | $ | 359 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | 13 | $ | — | $ | — | $ | — | $ | 13 | |||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | 14 | $ | — | $ | — | $ | 14 | |||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||
| CLOs | 1 | — | — | — | 1 | ||||||||||||||||||||||||
| Private healthcare investing | 21 | — | 1 | — | 22 | ||||||||||||||||||||||||
| Asset-based/specialty finance | 35 | — | — | (23) | 12 | ||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | — | 38 | — | 38 | ||||||||||||||||||||||||
| Commercial real estate finance | 1 | — | — | — | 1 | ||||||||||||||||||||||||
| Other | 5 | — | 9 | — | 14 | ||||||||||||||||||||||||
Total funds (3) | 63 | — | 48 | (23) | 88 | ||||||||||||||||||||||||
| Other | — | — | — | — | — | ||||||||||||||||||||||||
| Equity in earnings (losses) of investees | $ | 63 | $ | 14 | $ | 48 | $ | (23) | $ | 102 | |||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | 79 | $ | 79 | |||||||||||||||||||
| Noncontrolling interest | — | — | — | (40) | (40) | ||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | 39 | $ | 39 | |||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| Insurance | Asset Management | Corporate | Other | Total | |||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 259 | $ | — | $ | — | $ | (3) | $ | 256 | |||||||||||||||||||
| Short-term investments | 69 | — | 14 | — | 83 | ||||||||||||||||||||||||
| Other | 11 | — | — | (10) | 1 | ||||||||||||||||||||||||
| Total net investment income | $ | 339 | $ | — | $ | 14 | $ | (13) | $ | 340 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | 52 | $ | — | $ | — | $ | — | $ | 52 | |||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||
| CLOs | 47 | — | — | (33) | 14 | ||||||||||||||||||||||||
| Private healthcare investing | 11 | — | — | — | 11 | ||||||||||||||||||||||||
| Asset-based/specialty finance | 24 | — | — | (14) | 10 | ||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | 17 | — | 4 | — | 21 | ||||||||||||||||||||||||
| Other | 3 | — | 1 | — | 4 | ||||||||||||||||||||||||
Total funds (3) | 102 | — | 5 | (47) | 60 | ||||||||||||||||||||||||
| Other | — | (4) | — | — | (4) | ||||||||||||||||||||||||
| Equity in earnings (losses) of investees | $ | 102 | $ | 2 | $ | 5 | $ | (47) | $ | 62 | |||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | 69 | $ | 69 | |||||||||||||||||||
| Noncontrolling interest | — | — | — | (16) | (16) | ||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | 53 | $ | 53 | |||||||||||||||||||
1) Insurance segment includes foreign exchange gains on remeasurement of $5 million.
2) Includes CLO equity tranches distributed from a CLO fund in the fourth quarter of 2024.
3) Relates to funds managed by Sound Point and AHP, and certain other managers Investments in funds are generally reported on a one-quarter lag.
16
Insurance Segment
17
Assured Guaranty Ltd.
Insurance Segment Results
(in millions)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Segment revenues | |||||||||||||||||||||||
| Net earned premiums and credit derivative revenues | $ | 110 | $ | 107 | $ | 435 | $ | 417 | |||||||||||||||
| Net investment income | 89 | 93 | 358 | 339 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | 2 | — | 13 | 52 | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 25 | (1) | 64 | 13 | |||||||||||||||||||
| Total segment revenues | 226 | 199 | 870 | 821 | |||||||||||||||||||
| Segment expenses | |||||||||||||||||||||||
| Loss expense (benefit) | 19 | 31 | (8) | (18) | |||||||||||||||||||
| Amortization of DAC | 6 | 6 | 22 | 20 | |||||||||||||||||||
| Employee compensation and benefit expenses | 42 | 42 | 182 | 170 | |||||||||||||||||||
| Other operating expenses | 34 | 27 | 125 | 117 | |||||||||||||||||||
| Total segment expenses | 101 | 106 | 321 | 289 | |||||||||||||||||||
| Equity in earnings (losses) of investees | 15 | 19 | 63 | 102 | |||||||||||||||||||
| Segment adjusted operating income (loss) before income taxes | 140 | 112 | 612 | 634 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | 21 | 14 | 104 | 109 | |||||||||||||||||||
| Segment adjusted operating income (loss) | $ | 119 | $ | 98 | $ | 508 | $ | 525 | |||||||||||||||
18
Assured Guaranty Ltd.
Claims-Paying Resources
As of December 31, 2025
| AG | AG Re (2) | Eliminations (3) | Total | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Claims-paying resources | ||||||||||||||||||||||||||
| Policyholders’ surplus | $ | 3,249 | $ | 731 | $ | 53 | $ | 4,033 | ||||||||||||||||||
| Contingency reserve | 1,511 | — | — | 1,511 | ||||||||||||||||||||||
| Qualified statutory capital | 4,760 | 731 | 53 | 5,544 | ||||||||||||||||||||||
Unearned premium reserve and net deferred ceding commission income (1) | 2,411 | 624 | (53) | 2,982 | ||||||||||||||||||||||
Loss and LAE reserves (1)(4) | — | 43 | — | 43 | ||||||||||||||||||||||
| Total policyholders' surplus and reserves | 7,171 | 1,398 | — | 8,569 | ||||||||||||||||||||||
Present value of installment premium (1)(8)(9) | 847 | 278 | — | 1,125 | ||||||||||||||||||||||
| CCS | 400 | — | — | 400 | ||||||||||||||||||||||
| Total claims-paying resources | $ | 8,418 | $ | 1,676 | $ | — | $ | 10,094 | ||||||||||||||||||
| AG | AG Re (2) | Eliminations (3) | Total | |||||||||||||||||||||||
| (dollars in billions) | ||||||||||||||||||||||||||
Statutory net exposure (1)(5) | $ | 211.4 | $ | 69.3 | $ | (0.6) | $ | 280.1 | ||||||||||||||||||
Net debt service outstanding (1)(5) | $ | 339.5 | $ | 105.0 | $ | (0.9) | $ | 443.6 | ||||||||||||||||||
| Ratios: | ||||||||||||||||||||||||||
| Net exposure to qualified statutory capital | 44:1 | 95:1 | 51:1 | |||||||||||||||||||||||
Capital ratio (6) | 71:1 | 144:1 | 80:1 | |||||||||||||||||||||||
Financial resources ratio (7) | 40:1 | 63:1 | 44:1 | |||||||||||||||||||||||
| Statutory net exposure to claims-paying resources | 25:1 | 41:1 | 28:1 | |||||||||||||||||||||||
| AG | AG Re (2) | |||||||||||||||||||||||||
| Separate company statutory basis: | (in millions) | |||||||||||||||||||||||||
| Admitted assets | $ | 6,952 | $ | 1,381 | ||||||||||||||||||||||
| Total liabilities | 3,703 | 650 | ||||||||||||||||||||||||
| Loss and LAE reserves (recoverable) | (142) | 44 | ||||||||||||||||||||||||
| Paid in capital stock | 197 | 826 | ||||||||||||||||||||||||
1) The numbers shown for AG include its U.K. and French insurance subsidiaries.
2) Except for contingency reserves, Assured Guaranty Re Ltd. (AG Re) numbers represent the Company’s estimate of AG Re and Assured Guaranty Re Overseas Ltd. on a U.S. statutory basis.
3) Eliminations consist of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.
4) Loss and LAE reserves exclude adjustments to claims-paying resources for AG because the balance was in a net recoverable position of $128 million.
5) Net exposure and net debt service outstanding are presented on a statutory basis. Includes $4.2 billion of specialty business.
6) The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.
7) The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.
8) The timing and cumulative amount of actual collections and net earned premiums may differ from expected collections and expected net earned premiums due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the consumer price indices, changes in expected lives, new business and changes in ratings of the insured obligations and/or the Company’s insurance subsidiaries.
9) Present value of installment premium is discounted at a rate of 5%, which is based on prior year purchases of fixed-maturity securities by external investment managers, usually applying a materiality threshold of 50 basis points.
Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.
19
Assured Guaranty Ltd.
New Business Production
(in millions)
Reconciliation of GWP to PVP
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | Public Finance | Structured Finance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Non - U.S. | U.S. | Non - U.S. | Total | U.S. | Non - U.S. | U.S. | Non - U.S. | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total GWP | $ | 55 | $ | (3) | $ | (1) | $ | 10 | $ | 61 | $ | 77 | $ | 102 | $ | 1 | $ | 6 | $ | 186 | ||||||||||||||||||||||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 16 | (3) | (1) | 10 | 22 | 44 | 101 | 1 | 6 | 152 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Upfront GWP | 39 | — | — | — | 39 | 33 | 1 | — | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 15 | 18 | 10 | 10 | 53 | 44 | 22 | 1 | 20 | 87 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total PVP | $ | 54 | $ | 18 | $ | 10 | $ | 10 | $ | 92 | $ | 77 | $ | 23 | $ | 1 | $ | 20 | $ | 121 | ||||||||||||||||||||||||||||||||||||||||||
| Gross par written | $ | 6,467 | $ | 670 | $ | 335 | $ | 905 | $ | 8,377 | $ | 8,419 | $ | 436 | $ | 231 | $ | 2,140 | $ | 11,226 | ||||||||||||||||||||||||||||||||||||||||||
| Year Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | Public Finance | Structured Finance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| U.S. | Non - U.S. | U.S. | Non - U.S. | Total | U.S. | Non - U.S. | U.S. | Non - U.S. | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total GWP | $ | 230 | $ | (9) | $ | 7 | $ | 28 | $ | 256 | $ | 259 | $ | 136 | $ | 20 | $ | 25 | $ | 440 | ||||||||||||||||||||||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 80 | (9) | 6 | 28 | 105 | 143 | 115 | 17 | 25 | 300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Upfront GWP | 150 | — | 1 | — | 151 | 116 | 21 | 3 | — | 140 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 56 | 37 | 12 | 30 | 135 | 154 | 46 | 22 | 40 | 262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total PVP | $ | 206 | $ | 37 | $ | 13 | $ | 30 | $ | 286 | $ | 270 | $ | 67 | $ | 25 | $ | 40 | $ | 402 | ||||||||||||||||||||||||||||||||||||||||||
| Gross par written | $ | 27,448 | $ | 1,385 | $ | 503 | $ | 3,580 | $ | 32,916 | $ | 23,758 | $ | 2,673 | $ | 1,476 | $ | 3,922 | $ | 31,829 | ||||||||||||||||||||||||||||||||||||||||||
(1) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.
(2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
20
Assured Guaranty Ltd.
Gross Par Written
(in millions)
Gross Par Written by Asset Type
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Sector: | |||||||||||||||||||||||
| U.S. public finance: | |||||||||||||||||||||||
| General obligation | $ | 2,705 | $ | 2,815 | $ | 10,300 | $ | 8,550 | |||||||||||||||
| Tax backed | 1,824 | 800 | 6,351 | 3,360 | |||||||||||||||||||
| Healthcare | 674 | 1,000 | 3,621 | 1,774 | |||||||||||||||||||
| Municipal utilities | 800 | 1,870 | 3,042 | 3,882 | |||||||||||||||||||
| Transportation | 138 | 1,823 | 2,270 | 5,527 | |||||||||||||||||||
| Higher education | 15 | 111 | 1,382 | 483 | |||||||||||||||||||
| Infrastructure finance | 309 | — | 449 | 149 | |||||||||||||||||||
| Other public finance | 2 | — | 33 | 33 | |||||||||||||||||||
| Total U.S. public finance | 6,467 | 8,419 | 27,448 | 23,758 | |||||||||||||||||||
| Non-U.S. public finance: | |||||||||||||||||||||||
| Infrastructure finance | 479 | 179 | 707 | 613 | |||||||||||||||||||
| Regulated utilities | 164 | 257 | 547 | 2,060 | |||||||||||||||||||
| Sovereign and sub-sovereign | 27 | — | 131 | — | |||||||||||||||||||
| Total non-U.S. public finance | 670 | 436 | 1,385 | 2,673 | |||||||||||||||||||
| Total public finance | 7,137 | 8,855 | 28,833 | 26,431 | |||||||||||||||||||
| U.S. structured finance: | |||||||||||||||||||||||
| Insurance reserve financings and securitizations | 272 | 104 | 272 | 554 | |||||||||||||||||||
| Pooled corporate obligations | 63 | 60 | 116 | 278 | |||||||||||||||||||
| Fund finance facilities | — | 57 | 101 | 270 | |||||||||||||||||||
| Structured credit | — | 10 | — | 295 | |||||||||||||||||||
| Commercial mortgage-backed securities | — | — | — | 25 | |||||||||||||||||||
| Other structured finance | — | — | 14 | 54 | |||||||||||||||||||
| Total U.S. structured finance | 335 | 231 | 503 | 1,476 | |||||||||||||||||||
| Non-U.S. structured finance: | |||||||||||||||||||||||
| Fund finance facilities | 393 | 1,206 | 2,531 | 2,008 | |||||||||||||||||||
| Pooled corporate obligations | 174 | 281 | 415 | 639 | |||||||||||||||||||
| Commercial mortgage-backed securities | — | 653 | — | 653 | |||||||||||||||||||
| Other structured finance | 338 | — | 634 | 622 | |||||||||||||||||||
| Total non-U.S. structured finance | 905 | 2,140 | 3,580 | 3,922 | |||||||||||||||||||
| Total structured finance | 1,240 | 2,371 | 4,083 | 5,398 | |||||||||||||||||||
| Total gross par written | $ | 8,377 | $ | 11,226 | $ | 32,916 | $ | 31,829 | |||||||||||||||
Please refer to the Glossary for a description of sectors.
21
Assured Guaranty Ltd.
New Business Production by Quarter
(in millions)
| Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q-24 | 2Q-24 | 3Q-24 | 4Q-24 | 1Q-25 | 2Q-25 | 3Q-25 | 4Q-25 | 2024 | 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| PVP: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 43 | $ | 116 | $ | 34 | $ | 77 | $ | 25 | $ | 49 | $ | 78 | $ | 54 | $ | 270 | $ | 206 | ||||||||||||||||||||||||||||||||||||||||||
| Public finance - non-U.S. | 1 | 33 | 10 | 23 | 7 | 7 | 5 | 18 | 67 | 37 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Structured finance - U.S. | 15 | 4 | 5 | 1 | 2 | 1 | — | 10 | 25 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Structured finance - non-U.S. | 4 | 2 | 14 | 20 | 5 | 7 | 8 | 10 | 40 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total PVP (1) | $ | 63 | $ | 155 | $ | 63 | $ | 121 | $ | 39 | $ | 64 | $ | 91 | $ | 92 | $ | 402 | $ | 286 | ||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of GWP to PVP: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total GWP | $ | 61 | $ | 132 | $ | 61 | $ | 186 | $ | 35 | $ | 85 | $ | 75 | $ | 61 | $ | 440 | $ | 256 | ||||||||||||||||||||||||||||||||||||||||||
| Less: Installment GWP and other GAAP adjustments | 28 | 102 | 18 | 152 | 11 | 43 | 29 | 22 | 300 | 105 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Upfront GWP | 33 | 30 | 43 | 34 | 24 | 42 | 46 | 39 | 140 | 151 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 30 | 125 | 20 | 87 | 15 | 22 | 45 | 53 | 262 | 135 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total PVP | $ | 63 | $ | 155 | $ | 63 | $ | 121 | $ | 39 | $ | 64 | $ | 91 | $ | 92 | $ | 402 | $ | 286 | ||||||||||||||||||||||||||||||||||||||||||
| Gross par written: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 2,909 | $ | 7,043 | $ | 5,387 | $ | 8,419 | $ | 4,269 | $ | 8,861 | $ | 7,851 | $ | 6,467 | $ | 23,758 | $ | 27,448 | ||||||||||||||||||||||||||||||||||||||||||
| Public finance - non-U.S. | — | 1,572 | 665 | 436 | 197 | 275 | 243 | 670 | 2,673 | 1,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Structured finance - U.S. | 480 | 214 | 551 | 231 | 121 | 5 | 42 | 335 | 1,476 | 503 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Structured finance - non-U.S. (1) | 354 | 594 | 834 | 2,140 | 415 | 1,255 | 1,005 | 905 | 3,922 | 3,580 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 3,743 | $ | 9,423 | $ | 7,437 | $ | 11,226 | $ | 5,002 | $ | 10,396 | $ | 9,141 | $ | 8,377 | $ | 31,829 | $ | 32,916 | ||||||||||||||||||||||||||||||||||||||||||
1) PVP and gross par written include the present value of future premiums and total exposure, respectively, associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.
2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement. Please refer to the Glossary for a description of sectors.
22
Assured Guaranty Ltd.
Estimated Net Exposure Amortization (1) and Estimated Future Financial Guaranty Net Premium
and Credit Derivative Revenues
Financial Guaranty Insurance (2) | |||||||||||||||||||||||||||||||||||||||||
| Estimated Net Debt Service Amortization | Estimated Ending Net Debt Service Outstanding | Earnings of Deferred Premium Revenue | Accretion of Discount | Effect of FG VIE Consolidation on Earnings of Deferred Premium Revenue and Accretion of Discount | Future Credit Derivative Revenues (3) | ||||||||||||||||||||||||||||||||||||
| (in billions) | (in millions) | ||||||||||||||||||||||||||||||||||||||||
| 2025 (as of December 31) | $ | 440.8 | |||||||||||||||||||||||||||||||||||||||
| 2026 Q1 | $ | 5.1 | 435.7 | $ | 77 | $ | 10 | $ | 1 | $ | 3 | ||||||||||||||||||||||||||||||
| 2026 Q2 | 6.1 | 429.6 | 76 | 9 | 1 | 3 | |||||||||||||||||||||||||||||||||||
| 2026 Q3 | 7.4 | 422.2 | 75 | 9 | 1 | 2 | |||||||||||||||||||||||||||||||||||
| 2026 Q4 | 6.2 | 416.0 | 73 | 9 | 1 | 2 | |||||||||||||||||||||||||||||||||||
| 2027 | 22.4 | 393.6 | 279 | 35 | 3 | 9 | |||||||||||||||||||||||||||||||||||
| 2028 | 22.0 | 371.6 | 264 | 33 | 2 | 8 | |||||||||||||||||||||||||||||||||||
| 2029 | 22.9 | 348.7 | 245 | 31 | 2 | 7 | |||||||||||||||||||||||||||||||||||
| 2030 | 24.0 | 324.7 | 225 | 29 | 2 | 6 | |||||||||||||||||||||||||||||||||||
| 2026-2030 | 116.1 | 324.7 | 1,314 | 165 | 13 | 40 | |||||||||||||||||||||||||||||||||||
| 2031-2035 | 100.6 | 224.1 | 888 | 124 | 9 | 24 | |||||||||||||||||||||||||||||||||||
| 2036-2040 | 78.3 | 145.8 | 579 | 89 | 4 | 18 | |||||||||||||||||||||||||||||||||||
| 2041-2045 | 55.0 | 90.8 | 384 | 58 | — | 12 | |||||||||||||||||||||||||||||||||||
| 2046-2050 | 43.4 | 47.4 | 247 | 32 | — | 4 | |||||||||||||||||||||||||||||||||||
| 2051-2055 | 29.0 | 18.4 | 119 | 13 | — | — | |||||||||||||||||||||||||||||||||||
| After 2055 | 18.4 | — | 84 | 10 | — | — | |||||||||||||||||||||||||||||||||||
| Total | $ | 440.8 | $ | 3,615 | $ | 491 | $ | 26 | $ | 98 | |||||||||||||||||||||||||||||||
Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve (4)
| GAAP | Effect of FG VIE Consolidation on Net Unearned Premium Reserve | |||||||||||||
| (in millions) | ||||||||||||||
| Net deferred premium revenue: | ||||||||||||||
| Financial guaranty | $ | 3,615 | $ | 25 | ||||||||||
| Specialty | 5 | — | ||||||||||||
| Net deferred premium revenue | 3,620 | 25 | ||||||||||||
| Contra-paid | (22) | (2) | ||||||||||||
| Net unearned premium reserve | $ | 3,598 | $ | 23 | ||||||||||
1) Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of December 31, 2025. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations, terminations and because of management’s assumptions on structured finance amortization.
2) See also page 26, for ‘‘Net Expected Loss to be Expensed.’’
3) Represents expected future premiums on insured credit derivatives.
4) Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).
23
Assured Guaranty Ltd.
Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)
(in millions)
Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)(1) for the Three Months Ended December 31, 2025
| Net Expected Loss to be Paid (Recovered) as of September 30, 2025 | Net Economic Loss Development (Benefit) During 4Q-25 | Net (Paid) Recovered Losses During 4Q-25 | Net Expected Loss to be Paid (Recovered) as of December 31, 2025 | |||||||||||||||||||||||
| Public Finance: | ||||||||||||||||||||||||||
| U.S. public finance | $ | (30) | $ | 13 | $ | (14) | $ | (31) | ||||||||||||||||||
| Non-U.S. public finance | 133 | (3) | (4) | 126 | ||||||||||||||||||||||
| Public Finance | 103 | 10 | (18) | 95 | ||||||||||||||||||||||
| Structured Finance: | ||||||||||||||||||||||||||
| U.S. RMBS | (59) | (3) | 8 | (54) | ||||||||||||||||||||||
| Other structured finance | 60 | 1 | (1) | 60 | ||||||||||||||||||||||
| Structured Finance | 1 | (2) | 7 | 6 | ||||||||||||||||||||||
| Total | $ | 104 | $ | 8 | $ | (11) | $ | 101 | ||||||||||||||||||
Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)(1) for the Year Ended December 31, 2025
| Net Expected Loss to be Paid (Recovered) as of December 31, 2024 | Net Economic Loss Development (Benefit) During 2025 | Net (Paid) Recovered Losses During 2025 | Net Expected Loss to be Paid (Recovered) as of December 31, 2025 | |||||||||||||||||||||||
| Public Finance: | ||||||||||||||||||||||||||
| U.S. public finance | $ | 18 | $ | 64 | $ | (113) | $ | (31) | ||||||||||||||||||
| Non-U.S. public finance | 98 | 33 | (5) | 126 | ||||||||||||||||||||||
| Public Finance | 116 | 97 | (118) | 95 | ||||||||||||||||||||||
| Structured Finance: | ||||||||||||||||||||||||||
| U.S. RMBS | (43) | (43) | 32 | (54) | ||||||||||||||||||||||
| Other structured finance | 33 | (63) | 90 | 60 | ||||||||||||||||||||||
| Structured Finance | (10) | (106) | 122 | 6 | ||||||||||||||||||||||
| Total | $ | 106 | $ | (9) | $ | 4 | $ | 101 | ||||||||||||||||||
1) Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e., those accounted for as insurance, credit derivatives and FG VIEs).
Please refer to the Glossary for a description of sectors.
24
Assured Guaranty Ltd.
Loss Measures
| As of December 31, 2025 | Three Months Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Total Net Par Outstanding for BIG Transactions | Net Economic Loss Development (Benefit) | GAAP Loss and LAE (1) | Loss and LAE included in Adjusted Operating Income (2) | Insurance Segment Loss and LAE (3) | |||||||||||||||||||||||||||||||
| (in billions) | (in millions) | ||||||||||||||||||||||||||||||||||
| Public finance: | |||||||||||||||||||||||||||||||||||
| U.S. public finance | $ | 3.48 | $ | 13 | $ | 16 | $ | 16 | $ | 16 | |||||||||||||||||||||||||
| Non-U.S. public finance | 4.44 | (3) | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
| Public finance | 7.92 | 10 | 18 | 18 | 18 | ||||||||||||||||||||||||||||||
| Structured finance: | |||||||||||||||||||||||||||||||||||
| U.S. RMBS | 0.77 | (3) | (1) | (1) | — | ||||||||||||||||||||||||||||||
| Other structured finance | 0.07 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
| Structured finance | 0.84 | (2) | — | — | 1 | ||||||||||||||||||||||||||||||
| Total | $ | 8.76 | $ | 8 | $ | 18 | $ | 18 | $ | 19 | |||||||||||||||||||||||||
| As of December 31, 2025 | Year Ended December 31, 2025 | ||||||||||||||||||||||||||||||||||
| Total Net Par Outstanding for BIG Transactions | Net Economic Loss Development (Benefit) | GAAP Loss and LAE (1) | Loss and LAE included in Adjusted Operating Income (2) | Insurance Segment Loss and LAE (3) | |||||||||||||||||||||||||||||||
| (in billions) | (in millions) | ||||||||||||||||||||||||||||||||||
| Public finance: | |||||||||||||||||||||||||||||||||||
| U.S. public finance | $ | 3.48 | $ | 64 | $ | 62 | $ | 62 | $ | 62 | |||||||||||||||||||||||||
| Non-U.S. public finance | 4.44 | 33 | 20 | 20 | 20 | ||||||||||||||||||||||||||||||
| Public finance | 7.92 | 97 | 82 | 82 | 82 | ||||||||||||||||||||||||||||||
| Structured finance: | |||||||||||||||||||||||||||||||||||
| U.S. RMBS | 0.77 | (43) | (26) | (26) | (27) | ||||||||||||||||||||||||||||||
| Other structured finance | 0.07 | (63) | — | (63) | (63) | ||||||||||||||||||||||||||||||
| Structured finance | 0.84 | (106) | (26) | (89) | (90) | ||||||||||||||||||||||||||||||
| Total | $ | 8.76 | $ | (9) | $ | 56 | $ | (7) | $ | (8) | |||||||||||||||||||||||||
1) Includes loss expense related to contracts that are accounted for as insurance contracts.
2) Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.
3) Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.
Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
25
Assured Guaranty Ltd.
Net Expected Loss to be Expensed (1)
As of December 31, 2025
(dollars in millions)
| GAAP | ||||||||
| 2026 Q1 | $ | 4 | ||||||
| 2026 Q2 | 4 | |||||||
| 2026 Q3 | 3 | |||||||
| 2026 Q4 | 3 | |||||||
| 2027 | 18 | |||||||
| 2028 | 18 | |||||||
| 2029 | 18 | |||||||
| 2030 | 17 | |||||||
| 2026-2030 | 85 | |||||||
| 2031-2035 | 69 | |||||||
| 2036-2040 | 28 | |||||||
| 2041-2045 | 22 | |||||||
| 2046-2050 | 26 | |||||||
| 2051-2055 | 16 | |||||||
| After 2055 | 3 | |||||||
Total expected present value of net expected loss to be expensed (2) | 249 | |||||||
| Future expected accretion | 38 | |||||||
| Total expected future loss and LAE | $ | 287 | ||||||
1) The present value of net expected loss to be paid is discounted using risk free rates for U.S. and non-U.S. currencies rates ranging from 1.93% to 5.35%.
2) Excludes $19 million related to FG VIEs, which are eliminated in consolidation.
26
Assured Guaranty Ltd.
Financial Guaranty Profile (1 of 3)
(in billions)
Net Par Outstanding by Asset Type
| As of December 31, 2025 | As of December 31, 2024 | |||||||||||||
| U.S. public finance: | ||||||||||||||
| General obligation | $ | 82.3 | $ | 78.2 | ||||||||||
| Tax backed | 36.1 | 33.3 | ||||||||||||
| Municipal utilities | 31.4 | 30.0 | ||||||||||||
| Transportation | 23.5 | 27.0 | ||||||||||||
| Healthcare | 16.8 | 14.0 | ||||||||||||
| Infrastructure finance | 15.1 | 9.9 | ||||||||||||
| Higher education | 8.4 | 7.3 | ||||||||||||
| Renewable energy | 0.2 | 0.2 | ||||||||||||
| Other public finance | 1.2 | 1.3 | ||||||||||||
| Total U.S. public finance | 215.0 | 201.2 | ||||||||||||
| Non-U.S. public finance: | ||||||||||||||
| Regulated utilities | 23.5 | 22.3 | ||||||||||||
| Infrastructure finance | 16.0 | 15.0 | ||||||||||||
| Sovereign and sub-sovereign | 8.3 | 9.2 | ||||||||||||
| Renewable energy | 1.7 | 1.6 | ||||||||||||
| Pooled infrastructure | 1.1 | 1.1 | ||||||||||||
| Total non-U.S. public finance | 50.6 | 49.2 | ||||||||||||
| Total public finance | 265.6 | 250.4 | ||||||||||||
| U.S. structured finance: | ||||||||||||||
| Insurance reserve financings and securitizations | 4.4 | 4.5 | ||||||||||||
| RMBS | 1.4 | 1.5 | ||||||||||||
| Pooled corporate obligations | 0.6 | 0.6 | ||||||||||||
| Financial products | 0.4 | 0.5 | ||||||||||||
| Fund finance facilities | 0.1 | 0.2 | ||||||||||||
| Other structured finance | 1.0 | 1.2 | ||||||||||||
| Total U.S. structured finance | 7.9 | 8.5 | ||||||||||||
| Non-U.S. structured finance: | ||||||||||||||
| Fund finance facilities | 1.6 | 1.4 | ||||||||||||
| Pooled corporate obligations | 0.5 | 0.5 | ||||||||||||
| RMBS | 0.2 | 0.2 | ||||||||||||
| Other structured finance | 1.3 | 0.6 | ||||||||||||
| Total non-U.S. structured finance | 3.6 | 2.7 | ||||||||||||
| Total structured finance | 11.5 | 11.2 | ||||||||||||
| Total net par outstanding | $ | 277.1 | $ | 261.6 | ||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.
27
Assured Guaranty Ltd.
Financial Guaranty Profile (2 of 3)
As of December 31, 2025
(dollars in billions)
Distribution by Rating of Financial Guaranty Portfolio
| Public Finance - U.S. | Public Finance - Non-U.S. | Structured Finance - U.S. | Structured Finance - Non-U.S. | Total | |||||||||||||||||||||||||||||||||||||||||||
| Ratings: | Net Par Outstanding | % | Net Par Outstanding | % | Net Par Outstanding | % | Net Par Outstanding | % | Net Par Outstanding | % | |||||||||||||||||||||||||||||||||||||
| AAA | $ | — | — | % | $ | 1.8 | 3.5 | % | $ | 0.5 | 5.8 | % | $ | 0.5 | 12.6 | % | $ | 2.8 | 1.0 | % | |||||||||||||||||||||||||||
| AA | 18.2 | 8.5 | 1.5 | 2.9 | 5.2 | 66.4 | 0.1 | 3.5 | 25.0 | 9.0 | |||||||||||||||||||||||||||||||||||||
| A | 122.8 | 57.1 | 13.5 | 26.7 | 0.7 | 8.9 | 3.0 | 83.7 | 140.0 | 50.5 | |||||||||||||||||||||||||||||||||||||
| BBB | 70.5 | 32.8 | 29.4 | 58.1 | 0.6 | 8.2 | — | 0.2 | 100.5 | 36.3 | |||||||||||||||||||||||||||||||||||||
| BIG | 3.5 | 1.6 | 4.4 | 8.8 | 0.9 | 10.7 | — | — | 8.8 | 3.2 | |||||||||||||||||||||||||||||||||||||
Net Par Outstanding (1) | $ | 215.0 | 100.0 | % | $ | 50.6 | 100.0 | % | $ | 7.9 | 100.0 | % | $ | 3.6 | 100.0 | % | $ | 277.1 | 100.0 | % | |||||||||||||||||||||||||||
1) As of December 31, 2025, the Company excluded $0.8 billion of net par outstanding attributable to Loss Mitigation Securities.
Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.
28
Assured Guaranty Ltd.
Financial Guaranty Profile (3 of 3)
As of December 31, 2025
(dollars in billions)
Geographic Distribution of Financial Guaranty Portfolio
| Net Par Outstanding | % of Total | |||||||||||||
| U.S.: | ||||||||||||||
| U.S. public finance: | ||||||||||||||
| California | $ | 36.6 | 13.2 | % | ||||||||||
| Texas | 28.3 | 10.2 | ||||||||||||
| New York | 21.0 | 7.6 | ||||||||||||
| Pennsylvania | 18.8 | 6.8 | ||||||||||||
| Illinois | 13.1 | 4.7 | ||||||||||||
| Florida | 13.0 | 4.7 | ||||||||||||
| New Jersey | 7.8 | 2.8 | ||||||||||||
| Louisiana | 5.4 | 2.0 | ||||||||||||
| Michigan | 5.0 | 1.8 | ||||||||||||
| Colorado | 4.8 | 1.7 | ||||||||||||
| Other | 61.2 | 22.1 | ||||||||||||
| Total U.S. public finance | 215.0 | 77.6 | ||||||||||||
| U.S. structured finance (multiple states) | 7.9 | 2.8 | ||||||||||||
| Total U.S. | 222.9 | 80.4 | ||||||||||||
| Non-U.S.: | ||||||||||||||
| United Kingdom | 42.3 | 15.3 | ||||||||||||
| Australia | 1.9 | 0.7 | ||||||||||||
| France | 1.8 | 0.7 | ||||||||||||
| Spain | 1.8 | 0.6 | ||||||||||||
| Canada | 1.2 | 0.4 | ||||||||||||
| Other | 5.2 | 1.9 | ||||||||||||
| Total non-U.S. | 54.2 | 19.6 | ||||||||||||
| Total net par outstanding | $ | 277.1 | 100.0 | % | ||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding.
29
Assured Guaranty Ltd.
Specialty Business
| As of December 31, 2025 | As of December 31, 2024 | |||||||||||||||||||||||||
Gross Exposure (1) | Net Exposure (1) | Gross Exposure (1) | Net Exposure (1) | |||||||||||||||||||||||
| (in billions) | ||||||||||||||||||||||||||
| Diversified real estate | $ | 2.0 | $ | 2.0 | $ | 2.0 | $ | 2.0 | ||||||||||||||||||
| Insurance reserve financings and securitizations | 1.5 | 1.2 | 1.4 | 1.1 | ||||||||||||||||||||||
| Pooled corporate obligations | 0.9 | 0.9 | 0.9 | 0.9 | ||||||||||||||||||||||
| Aircraft residual value insurance | 0.2 | 0.1 | 0.2 | 0.1 | ||||||||||||||||||||||
1) All exposures are rated investment-grade, except gross and net exposure of $5 million of aircraft residual value insurance as of both December 31, 2025 and December 31, 2024.
Please refer to the Glossary for a description of sectors.
30
Assured Guaranty Ltd.
Expected Amortization of Net Par Outstanding
(in billions)
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||||||||
| U.S. Public Finance | Non-U.S. Public Finance | Total | Estimated Ending Net Par Outstanding | Total | Estimated Ending Net Par Outstanding | |||||||||||||||||||||||||||||||||
| 2025 (as of December 31) | $ | 265.6 | $ | 11.5 | ||||||||||||||||||||||||||||||||||
| 2026 Q1 | $ | 1.4 | $ | 0.1 | $ | 1.5 | 264.1 | $ | 0.5 | 11.0 | ||||||||||||||||||||||||||||
| 2026 Q2 | 1.9 | 0.8 | 2.7 | 261.4 | 0.6 | 10.4 | ||||||||||||||||||||||||||||||||
| 2026 Q3 | 3.2 | 0.9 | 4.1 | 257.3 | 0.5 | 9.9 | ||||||||||||||||||||||||||||||||
| 2026 Q4 | 2.6 | 0.5 | 3.1 | 254.2 | 0.4 | 9.5 | ||||||||||||||||||||||||||||||||
| 2027 | 8.6 | 1.0 | 9.6 | 244.6 | 1.5 | 8.0 | ||||||||||||||||||||||||||||||||
| 2028 | 9.0 | 1.1 | 10.1 | 234.5 | 1.1 | 6.9 | ||||||||||||||||||||||||||||||||
| 2029 | 9.2 | 2.0 | 11.2 | 223.3 | 1.5 | 5.4 | ||||||||||||||||||||||||||||||||
| 2030 | 9.7 | 4.1 | 13.8 | 209.5 | 0.5 | 4.9 | ||||||||||||||||||||||||||||||||
| 2026-2030 | 45.6 | 10.5 | 56.1 | 209.5 | 6.6 | 4.9 | ||||||||||||||||||||||||||||||||
| 2031-2035 | 46.7 | 10.6 | 57.3 | 152.2 | 2.9 | 2.0 | ||||||||||||||||||||||||||||||||
| 2036-2040 | 39.9 | 8.5 | 48.4 | 103.8 | 1.3 | 0.7 | ||||||||||||||||||||||||||||||||
| 2041-2045 | 32.6 | 2.5 | 35.1 | 68.7 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||||
| 2046-2050 | 27.8 | 3.0 | 30.8 | 37.9 | 0.5 | — | ||||||||||||||||||||||||||||||||
| 2051-2055 | 16.7 | 6.4 | 23.1 | 14.8 | — | — | ||||||||||||||||||||||||||||||||
| After 2055 | 5.7 | 9.1 | 14.8 | — | — | — | ||||||||||||||||||||||||||||||||
| Total | $ | 215.0 | $ | 50.6 | $ | 265.6 | $ | 11.5 | ||||||||||||||||||||||||||||||
Net par outstanding (end of period)
| 1Q-24 | 2Q-24 | 3Q-24 | 4Q-24 | 1Q-25 | 2Q-25 | 3Q-25 | 4Q-25 | |||||||||||||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 189.9 | $ | 194.6 | $ | 195.8 | $ | 201.2 | $ | 202.4 | $ | 208.7 | $ | 212.1 | $ | 215.0 | ||||||||||||||||||||||||||||||||||
| Public finance - non-U.S. | 48.2 | 49.6 | 52.1 | 49.2 | 50.1 | 53.1 | 51.3 | 50.6 | ||||||||||||||||||||||||||||||||||||||||||
| Structured finance - U.S. | 8.6 | 8.7 | 8.7 | 8.5 | 8.4 | 8.2 | 8.1 | 7.9 | ||||||||||||||||||||||||||||||||||||||||||
| Structured finance - non-U.S. | 1.4 | 1.5 | 1.6 | 2.7 | 2.7 | 2.8 | 3.4 | 3.6 | ||||||||||||||||||||||||||||||||||||||||||
| Net par outstanding | $ | 248.1 | $ | 254.4 | $ | 258.2 | $ | 261.6 | $ | 263.6 | $ | 272.8 | $ | 274.9 | $ | 277.1 | ||||||||||||||||||||||||||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
31
Assured Guaranty Ltd.
Puerto Rico Profile
As of December 31, 2025
(in millions)
| Net Par Outstanding | ||||||||||||||||||||||||||
| AG | AG Re | Total Net Par Outstanding | Gross Par Outstanding | |||||||||||||||||||||||
Defaulted Puerto Rico Exposure | ||||||||||||||||||||||||||
| PREPA | $ | 322 | $ | 142 | $ | 464 | $ | 470 | ||||||||||||||||||
| Resolved Puerto Rico Exposure | ||||||||||||||||||||||||||
| Puerto Rico Highway and Transportation Authority | $ | — | $ | 13 | $ | 13 | $ | 13 | ||||||||||||||||||
Non-Defaulting Puerto Rico Exposure | ||||||||||||||||||||||||||
Puerto Rico Municipal Finance Agency (MFA) | $ | 64 | $ | 11 | $ | 75 | $ | 81 | ||||||||||||||||||
| University of Puerto Rico | 1 | — | 1 | 1 | ||||||||||||||||||||||
| Total non-defaulting | $ | 65 | $ | 11 | $ | 76 | $ | 82 | ||||||||||||||||||
PREPA Amortization Schedule
| Scheduled Net Par Amortization | Scheduled Net Debt Service Amortization | ||||||||||
| 2026 (January 1 - March 31) | $ | — | $ | 9 | |||||||
| 2026 (April 1 - June 30) | — | 2 | |||||||||
| 2026 (July 1 - September 30) | 106 | 114 | |||||||||
| 2026 (October 1 - December 31) | — | 1 | |||||||||
| Subtotal 2026 | 106 | 126 | |||||||||
| 2027 | 106 | 122 | |||||||||
| 2028 | 68 | 80 | |||||||||
| 2029 | 39 | 47 | |||||||||
| 2030 | 44 | 52 | |||||||||
| 2031-2037 | 101 | 110 | |||||||||
| Total | $ | 464 | $ | 537 | |||||||
32
Assured Guaranty Ltd.
Direct Pooled Corporate Obligations Profile
As of December 31, 2025
(dollars in billions)
Distribution of Direct Pooled Corporate Obligations by Rating
| Net Par Outstanding | % of Total | Average Initial Credit Enhancement | Average Current Credit Enhancement | |||||||||||||||||||||||
| Ratings: | ||||||||||||||||||||||||||
| AAA | $ | 0.53 | 48.0 | % | 40.5% | 48.1% | ||||||||||||||||||||
| AA | 0.32 | 28.8 | 59.5% | 39.3% | ||||||||||||||||||||||
| A | 0.12 | 11.1 | 41.9% | 49.0% | ||||||||||||||||||||||
| BBB | 0.13 | 12.1 | 34.2% | 36.6% | ||||||||||||||||||||||
| Total exposures | $ | 1.10 | 100.0 | % | 45.4% | 44.3% | ||||||||||||||||||||
Distribution of Direct Pooled Corporate Obligations by Asset Class
| Net Par Outstanding | % of Total | Average Initial Credit Enhancement | Average Current Credit Enhancement | Number of Transactions | ||||||||||||||||||||||||||||
| Asset class: | ||||||||||||||||||||||||||||||||
| Trust preferred | $ | 0.22 | 20.5 | % | 43.4% | 68.2% | 10 | |||||||||||||||||||||||||
| CLOs | 0.88 | 79.5 | 45.9% | 38.2% | 10 | |||||||||||||||||||||||||||
| Total exposures | $ | 1.10 | 100.0 | % | 45.4% | 44.3% | 20 | |||||||||||||||||||||||||
Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.
33
Assured Guaranty Ltd.
Below Investment Grade Exposures (1 of 3)
(in billions)
BIG Exposures by Asset Exposure Type
| As of | ||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||
| U.S. public finance: | ||||||||||||||
| Infrastructure finance | $ | 1.21 | $ | 0.11 | ||||||||||
| Healthcare | 0.92 | 1.20 | ||||||||||||
| Municipal utilities | 0.75 | 0.81 | ||||||||||||
| General obligation | 0.24 | 0.29 | ||||||||||||
| Transportation | 0.10 | 0.11 | ||||||||||||
| Tax backed | 0.10 | 0.12 | ||||||||||||
| Higher education | — | 0.09 | ||||||||||||
| Other public finance | 0.16 | 0.15 | ||||||||||||
| Total U.S. public finance | 3.48 | 2.88 | ||||||||||||
| Non-U.S. public finance: | ||||||||||||||
| Regulated utilities | 2.40 | 4.74 | ||||||||||||
| Infrastructure finance | 1.14 | 0.76 | ||||||||||||
| Renewable energy | 0.90 | 0.85 | ||||||||||||
| Sovereign and sub-sovereign | — | 0.05 | ||||||||||||
| Total non-U.S. public finance | 4.44 | 6.40 | ||||||||||||
| Total public finance | 7.92 | 9.28 | ||||||||||||
| U.S. structured finance: | ||||||||||||||
| RMBS | 0.77 | 0.82 | ||||||||||||
| Insurance reserve financings and securitizations | 0.04 | 0.04 | ||||||||||||
| Other structured finance | 0.03 | 0.04 | ||||||||||||
| Total U.S. structured finance | 0.84 | 0.90 | ||||||||||||
| Non-U.S. structured finance: | ||||||||||||||
| Total non-U.S. structured finance | — | — | ||||||||||||
| Total structured finance | 0.84 | 0.90 | ||||||||||||
| Total BIG net par outstanding | $ | 8.76 | $ | 10.18 | ||||||||||
Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.
34
Assured Guaranty Ltd.
Below Investment Grade Exposures (2 of 3)
(dollars in billions)
Net Par Outstanding by BIG Surveillance Category (1)
| As of | ||||||||||||||
| December 31, 2025 | December 31, 2024 | |||||||||||||
| BIG Category 1 | ||||||||||||||
| U.S. public finance | $ | 2.48 | $ | 2.12 | ||||||||||
| Non-U.S. public finance | 1.09 | 5.88 | ||||||||||||
| U.S. structured finance | 0.17 | 0.10 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 1 | 3.74 | 8.10 | ||||||||||||
| BIG Category 2 | ||||||||||||||
| U.S. public finance | 0.42 | 0.14 | ||||||||||||
| Non-U.S. public finance | 3.35 | 0.52 | ||||||||||||
| U.S. structured finance | 0.04 | 0.05 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 2 | 3.81 | 0.71 | ||||||||||||
| BIG Category 3 | ||||||||||||||
| U.S. public finance | 0.58 | 0.62 | ||||||||||||
| Non-U.S. public finance | — | — | ||||||||||||
| U.S. structured finance | 0.63 | 0.75 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 3 | 1.21 | 1.37 | ||||||||||||
| BIG Total | $ | 8.76 | $ | 10.18 | ||||||||||
1) The Company assigns each BIG exposure to one of the three BIG surveillance categories below, which generally represent the following: BIG 1: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is less than 50%, regardless of whether the Company has or has not paid a claim for which it expects to be reimbursed within one year (liquidity claim). BIG 2: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, but for which no claims (other than liquidity claims) have yet been paid. BIG 3: Below-investment-grade exposures for which future losses are expected, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, and for which claims, other than liquidity claims have been paid.
For purposes of classifying BIG exposures into one of the three BIG categories, the Company calculates the present value of projected claim payments and recoveries using the pre-tax book yield of the investment portfolio as the applicable discount rate.
For financial statement measurement purposes, the Company uses risk-free rates (as determined each quarter) for discounting, rather than pre-tax book yield of the investment portfolio, to calculate the expected losses to be paid. Expected losses to be paid (recovered) are based on probability weighted scenarios and serve as the basis for the loss reserves reported in accordance with U.S. GAAP.
Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.
35
Assured Guaranty Ltd.
Below Investment Grade Exposures (3 of 3)
As of December 31, 2025
(dollars in millions)
Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million
| Net Par Outstanding | Internal Rating (1) | 60+ Day Delinquencies | ||||||||||||||||||
| Name or description | ||||||||||||||||||||
| U.S. public finance: | ||||||||||||||||||||
| Brightline Trains Florida LLC | $ | 1,133 | BB+ | |||||||||||||||||
| Westchester Medical Center | 540 | BB+ | ||||||||||||||||||
| PREPA | 464 | CCC | ||||||||||||||||||
| Palomar Health | 374 | CCC | ||||||||||||||||||
| Jackson Water & Sewer System, Mississippi | 140 | BB | ||||||||||||||||||
| Stockton City, California | 82 | B | ||||||||||||||||||
| MFA | 75 | B | ||||||||||||||||||
| Harrisburg Parking System, Pennsylvania | 74 | B | ||||||||||||||||||
| San Jacinto River Authority (GRP Project), Texas | 53 | BB+ | ||||||||||||||||||
| Indiana University of Pennsylvania, Pennsylvania | 50 | CCC | ||||||||||||||||||
| Total U.S. public finance | 2,985 | |||||||||||||||||||
| Non-U.S. public finance: | ||||||||||||||||||||
| Thames Water Utilities Finance PLC | 2,400 | B | ||||||||||||||||||
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | 557 | B+ | ||||||||||||||||||
| University of Essex, United Kingdom | 393 | BB | ||||||||||||||||||
| Q Energy - Phase II - Pride Investments, S.A. | 286 | BB+ | ||||||||||||||||||
| Hypersol Solar Inversiones, S.A.U. | 263 | BB | ||||||||||||||||||
| Q Energy - Phase III - FSL Issuer, S.A.U. | 250 | B+ | ||||||||||||||||||
| Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc | 110 | BB+ | ||||||||||||||||||
| Q Energy - Phase IV - Anselma Issuer, S.A. | 109 | BB+ | ||||||||||||||||||
| Road Management Services PLC (A13 Highway) | 78 | B+ | ||||||||||||||||||
| Total non-U.S. public finance | 4,446 | |||||||||||||||||||
| Total public finance | 7,431 | |||||||||||||||||||
| U.S. structured finance: | ||||||||||||||||||||
| RMBS: | ||||||||||||||||||||
| Option One Mortgage Loan Trust 2007-Hl1 | 95 | CCC | 15.9% | |||||||||||||||||
| Argent Securities Inc. 2005-W4 | 93 | CCC | 7.7% | |||||||||||||||||
| Option One 2007-FXD2 | 89 | BB | 14.7% | |||||||||||||||||
| Total RMBS-U.S. structured finance | 277 | |||||||||||||||||||
| Total non-U.S. structured finance | — | |||||||||||||||||||
| Total structured finance | 277 | |||||||||||||||||||
| Total | $ | 7,708 | ||||||||||||||||||
1) Transactions rated below B- are categorized as CCC.
Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.
36
Assured Guaranty Ltd.
Largest Exposures by Sector (1 of 3)
As of December 31, 2025
(in millions)
50 Largest U.S. Public Finance Exposures by Revenue Source
| Credit Name: | Net Par Outstanding | Internal Rating | ||||||||||||
| JFK New Terminal One, New York | $ | 2,209 | BBB- | |||||||||||
| Pennsylvania (Commonwealth of) | 1,852 | BBB | ||||||||||||
| Metro Washington Airports Authority (Dulles Toll Road) | 1,629 | BBB+ | ||||||||||||
| New Jersey (State of) | 1,570 | BBB | ||||||||||||
| Alameda Corridor Transportation Authority, California | 1,427 | BBB | ||||||||||||
| Lower Colorado River Authority | 1,333 | A | ||||||||||||
| New York Power Authority | 1,306 | AA- | ||||||||||||
| New York Metropolitan Transportation Authority | 1,303 | A- | ||||||||||||
| Foothill/Eastern Transportation Corridor Agency, California | 1,284 | BBB+ | ||||||||||||
| CommonSpirit Health, Illinois | 1,231 | A- | ||||||||||||
| North Texas Tollway Authority | 1,227 | A+ | ||||||||||||
| South Carolina Public Service Authority - Santee Cooper | 1,218 | BBB+ | ||||||||||||
| Brightline Trains Florida LLC | 1,133 | BB+ | ||||||||||||
| Philadelphia Water & Wastewater, Pennsylvania | 1,133 | A | ||||||||||||
| Montefiore Medical Center, New York | 1,127 | BBB- | ||||||||||||
| North Carolina Turnpike Authority | 1,058 | BBB | ||||||||||||
| Pittsburgh International Airport, Pennsylvania | 1,052 | A- | ||||||||||||
| Central Florida Expressway Authority, Florida | 1,048 | A+ | ||||||||||||
| San Joaquin Hills Transportation, California | 970 | BBB+ | ||||||||||||
| JFK Terminal 6, New York | 926 | BBB- | ||||||||||||
| Yankee Stadium LLC New York City Industrial Development Authority | 920 | BBB | ||||||||||||
| ProMedica Healthcare Obligated Group, Ohio | 919 | BBB- | ||||||||||||
| Pittsburgh Water & Sewer, Pennsylvania | 900 | A- | ||||||||||||
| Metropolitan Pier and Exposition Authority, Illinois | 890 | BBB- | ||||||||||||
| Municipal Electric Authority of Georgia | 878 | BBB+ | ||||||||||||
| Sacramento City Unified School District, California | 877 | BBB- | ||||||||||||
| San Diego Family Housing, LLC | 863 | AA | ||||||||||||
| Thomas Jefferson University | 855 | A- | ||||||||||||
| Chicago Water, Illinois | 843 | BBB+ | ||||||||||||
| Philadelphia School District, Pennsylvania | 832 | A- | ||||||||||||
| Harris County - Houston Sports Authority, Texas | 806 | A- | ||||||||||||
| Maine (State of) | 795 | A | ||||||||||||
| Houston Airport System, Texas | 767 | A | ||||||||||||
| Dade County Seaport, Florida | 759 | A- | ||||||||||||
| Alabama Highway Authority | 730 | AA- | ||||||||||||
| Beth Israel Lahey Health, Massachusetts | 709 | A- | ||||||||||||
| Illinois (State of) | 700 | BBB | ||||||||||||
| Clark County School District, Nevada | 694 | A- | ||||||||||||
| California (State of) | 672 | AA- | ||||||||||||
| Chicago Public Schools, Illinois | 670 | BBB- | ||||||||||||
| Nassau County, New York | 657 | AA- | ||||||||||||
| Downtown Revitalization Public Infrastructure District (SEG Redevelopment Project), Utah | 650 | A+ | ||||||||||||
| Tucson (City of), Arizona | 642 | A+ | ||||||||||||
| Chicago-O'Hare International Airport, Illinois | 640 | A- | ||||||||||||
| Palomar Health | 632 | B- | ||||||||||||
| New York Transportation Development Corporation (LaGuardia Airport Terminal Redevelopment Project) | 631 | BBB | ||||||||||||
| Anaheim (City of), California | 618 | A- | ||||||||||||
| Massachusetts (Commonwealth of) Water Resources | 605 | AA | ||||||||||||
| Pennsylvania Turnpike Commission | 605 | A- | ||||||||||||
| Chicago (City of) Wastewater Transmission, Illinois | 601 | BBB+ | ||||||||||||
| Total top 50 U.S. public finance exposures | $ | 48,396 | ||||||||||||
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
37
Assured Guaranty Ltd.
Largest Exposures by Sector (2 of 3)
As of December 31, 2025
(in millions)
25 Largest U.S. Structured Finance Exposures
| Credit Name: | Net Par Outstanding | Internal Rating (1) | ||||||||||||
| Private US Insurance Reserve Financing | $ | 1,102 | AA- | |||||||||||
| Private US Insurance Reserve Financing | 1,100 | AA | ||||||||||||
| Private US Insurance Reserve Financing | 1,000 | AA- | ||||||||||||
| Private US Insurance Reserve Financing | 425 | AA- | ||||||||||||
| Private US Insurance Reserve Financing | 398 | AA- | ||||||||||||
| Private Middle Market CLO | 200 | AA | ||||||||||||
| Private US Insurance Securitization | 177 | A | ||||||||||||
| Private Middle Market CLO | 125 | BBB+ | ||||||||||||
| Private US Insurance Securitization | 114 | AA | ||||||||||||
| Private Fund Finance Transaction | 105 | A- | ||||||||||||
| Private Balloon Note Guarantee | 100 | A | ||||||||||||
| DB Master Finance LLC | 96 | BBB | ||||||||||||
| Option One Mortgage Loan Trust 2007-Hl1 | 95 | CCC | ||||||||||||
| CWABS 2007-4 | 94 | BBB | ||||||||||||
| Argent Securities Inc. 2005-W4 | 93 | CCC | ||||||||||||
| SLM Student Loan Trust 2007-A | 91 | AA | ||||||||||||
| Option One 2007-FXD2 | 89 | BB | ||||||||||||
| CAPCO - Excess SIPC Excess of Loss Reinsurance | 63 | BBB | ||||||||||||
| Private Balloon Note Guarantee | 59 | BBB | ||||||||||||
| Private Balloon Note Guarantee | 50 | A | ||||||||||||
| Nomura Asset Accept. Corp. 2007-1 | 46 | CCC | ||||||||||||
| Wendy's Funding, LLC | 46 | BBB | ||||||||||||
| ALESCO Preferred Funding XIII, Ltd. | 45 | AAA | ||||||||||||
| Sonic Capital LLC 2020-1 | 45 | BBB | ||||||||||||
| CWALT Alternative Loan Trust 2007-HY9 | 45 | BBB+ | ||||||||||||
| Total top 25 U.S. structured finance exposures | $ | 5,803 | ||||||||||||
1) Transactions rated below B- are categorized as CCC.
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
38
Assured Guaranty Ltd.
Largest Exposures by Sector (3 of 3)
As of December 31, 2025
(in millions)
50 Largest Non-U.S. Exposures by Revenue Source
| Country | Net Par Outstanding | Internal Rating | |||||||||||||||
| Southern Water Services Limited | United Kingdom | $ | 2,866 | BBB- | |||||||||||||
| Thames Water Utilities Finance PLC | United Kingdom | 2,400 | B | ||||||||||||||
| Dwr Cymru Financing Limited | United Kingdom | 2,060 | A- | ||||||||||||||
| Anglian Water Services Financing PLC | United Kingdom | 1,923 | A- | ||||||||||||||
| National Grid Gas PLC | United Kingdom | 1,864 | A- | ||||||||||||||
| Yorkshire Water Services Finance Plc | United Kingdom | 1,384 | BBB | ||||||||||||||
| Channel Link Enterprises Finance PLC | France, United Kingdom | 1,315 | BBB | ||||||||||||||
| Severn Trent Water Utilities Finance Plc | United Kingdom | 1,087 | BBB+ | ||||||||||||||
| Capital Hospitals (Issuer) PLC | United Kingdom | 1,060 | BBB- | ||||||||||||||
| United Utilities Water PLC | United Kingdom | 984 | BBB+ | ||||||||||||||
| Southern Gas Networks PLC | United Kingdom | 983 | BBB+ | ||||||||||||||
| Quebec Province | Canada | 956 | A+ | ||||||||||||||
| British Broadcasting Corporation (BBC) | United Kingdom | 953 | A+ | ||||||||||||||
| Private Other Structured Finance Transaction | Australia | 879 | A- | ||||||||||||||
| Wessex Water Services Finance Plc | United Kingdom | 838 | BBB+ | ||||||||||||||
| National Grid Company PLC | United Kingdom | 831 | BBB+ | ||||||||||||||
| South West Water UK | United Kingdom | 783 | BBB+ | ||||||||||||||
| Verdun Participations 2 S.A.S. | France | 737 | BBB- | ||||||||||||||
| Aspire Defence Finance plc | United Kingdom | 730 | BBB+ | ||||||||||||||
| South East Water | United Kingdom | 715 | BBB | ||||||||||||||
| Verbund, Lease and Sublease of Hydro-Electric Equipment | Austria | 688 | AAA | ||||||||||||||
| Heathrow Funding Limited | United Kingdom | 666 | BBB | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 581 | A+ | ||||||||||||||
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | United Kingdom | 557 | B+ | ||||||||||||||
| University of Sussex | United Kingdom | 556 | BBB | ||||||||||||||
| NewHospitals (St Helens & Knowsley) Finance PLC | United Kingdom | 552 | BBB+ | ||||||||||||||
| Campania Region - Healthcare receivable | Italy | 537 | BBB- | ||||||||||||||
| North Staffordshire, United Kingdom | United Kingdom | 521 | BBB- | ||||||||||||||
| Central Nottinghamshire Hospitals PLC | United Kingdom | 517 | BBB- | ||||||||||||||
| University of Essex, United Kingdom | United Kingdom | 488 | BB+ | ||||||||||||||
| Derby Healthcare PLC | United Kingdom | 471 | BBB | ||||||||||||||
| Sydney Airport Finance Company | Australia | 470 | BBB+ | ||||||||||||||
| The Hospital Company (QAH Portsmouth) Limited | United Kingdom | 454 | BBB | ||||||||||||||
| Sutton and East Surrey Water plc | United Kingdom | 439 | BBB | ||||||||||||||
| Western Power Distribution (South West) plc | United Kingdom | 386 | BBB+ | ||||||||||||||
| South Lanarkshire Schools | United Kingdom | 379 | BBB | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 369 | AAA | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 369 | AAA | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 368 | AAA | ||||||||||||||
| Northumbrian Water PLC | United Kingdom | 349 | BBB+ | ||||||||||||||
| Catalyst Healthcare (Romford) Financing PLC | United Kingdom | 336 | BBB | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 335 | A | ||||||||||||||
| Portsmouth Water, United Kingdom | United Kingdom | 318 | BBB | ||||||||||||||
| South Staffordshire Water PLC | United Kingdom | 315 | BBB+ | ||||||||||||||
| Private Auto ABS Transaction | Mexico | 314 | A+ | ||||||||||||||
| Western Power Distribution (South Wales) PLC | United Kingdom | 303 | BBB+ | ||||||||||||||
| Bakethin Finance Plc | United Kingdom | 295 | A- | ||||||||||||||
| Scotland Gas Networks plc | United Kingdom | 294 | BBB+ | ||||||||||||||
| XpFibre Group | France | 294 | BBB- | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 290 | A | ||||||||||||||
| Total top 50 non-U.S. exposures | $ | 38,159 | |||||||||||||||
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
39
Asset Management Segment
40
Assured Guaranty Ltd.
Asset Management Segment Results
(in millions)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Segment revenues | $ | — | $ | — | $ | 29 | $ | 10 | |||||||||||||||
| Segment expenses | — | — | 17 | 6 | |||||||||||||||||||
| Equity in earnings (losses) of investees | 2 | — | 14 | 2 | |||||||||||||||||||
| Segment adjusted operating income (loss) before income taxes | 2 | — | 26 | 6 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | 1 | — | 6 | 1 | |||||||||||||||||||
| Segment adjusted operating income (loss) | $ | 1 | $ | — | $ | 20 | $ | 5 | |||||||||||||||
41
Corporate Division
42
Assured Guaranty Ltd.
Corporate Division Results
(in millions)
| Three Months Ended | Year Ended | ||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| Revenues | $ | 3 | $ | 4 | $ | 14 | $ | 17 | |||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest expense | 24 | 26 | 98 | 101 | |||||||||||||||||||
| Employee compensation and benefit expenses | 7 | 7 | 27 | 32 | |||||||||||||||||||
| Other operating expenses | 9 | 8 | 32 | 36 | |||||||||||||||||||
| Total expenses | 40 | 41 | 157 | 169 | |||||||||||||||||||
| Equity in earnings (losses) of investees | 20 | 5 | 48 | 5 | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | (17) | (32) | (95) | (147) | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | (1) | 2 | (6) | (12) | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (16) | $ | (34) | $ | (89) | $ | (135) | |||||||||||||||
43
Other
44
Assured Guaranty Ltd.
Other Results (1 of 2)
(in millions)
| Three Months Ended December 31, 2025 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | (1) | $ | — | $ | — | $ | (1) | |||||||||||||||
| Net investment income | (1) | — | (2) | (3) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 39 | — | 39 | |||||||||||||||||||
| Other income (loss) | (1) | — | — | (1) | |||||||||||||||||||
| Total revenues | (3) | 39 | (2) | 34 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss expense (benefit) | (1) | — | — | (1) | |||||||||||||||||||
| Interest expense | — | — | (2) | (2) | |||||||||||||||||||
| Total expenses | (1) | — | (2) | (3) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (11) | — | (11) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | (2) | 28 | — | 26 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | (1) | 3 | — | 2 | |||||||||||||||||||
| Less: Noncontrolling interest | — | 19 | — | 19 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (1) | $ | 6 | $ | — | $ | 5 | |||||||||||||||
| Three Months Ended December 31, 2024 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | (1) | $ | — | $ | — | $ | (1) | |||||||||||||||
| Net investment income | (1) | — | (3) | (4) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 15 | — | 15 | |||||||||||||||||||
| Total revenues | (2) | 15 | (3) | 10 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss expense (benefit) | (2) | — | — | (2) | |||||||||||||||||||
| Interest expense | — | — | (3) | (3) | |||||||||||||||||||
| Total expenses | (2) | — | (3) | (5) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (9) | — | (9) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | — | 6 | — | 6 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | — | — | — | — | |||||||||||||||||||
| Less: Noncontrolling interest | — | 4 | — | 4 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||
45
Assured Guaranty Ltd.
Other Results (2 of 2)
(in millions)
| Year Ended December 31, 2025 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | (3) | $ | — | $ | — | $ | (3) | |||||||||||||||
| Net investment income | (3) | — | (9) | (12) | |||||||||||||||||||
| Fair value gains (losses) on FG VIEs | 6 | — | — | 6 | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 79 | — | 79 | |||||||||||||||||||
| Other income (loss) | (2) | (5) | — | (7) | |||||||||||||||||||
| Total revenues | (2) | 74 | (9) | 63 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss expense (benefit) | 1 | — | — | 1 | |||||||||||||||||||
| Interest expense | — | — | (9) | (9) | |||||||||||||||||||
| Total expenses | 1 | — | (9) | (8) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (23) | — | (23) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | (3) | 51 | — | 48 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | (1) | 3 | — | 2 | |||||||||||||||||||
| Less: Noncontrolling interest | — | 40 | — | 40 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (2) | $ | 8 | $ | — | $ | 6 | |||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | (3) | $ | — | $ | — | $ | (3) | |||||||||||||||
| Net investment income | (3) | — | (10) | (13) | |||||||||||||||||||
| Fair value gains (losses) on FG VIEs | (11) | — | — | (11) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 69 | — | 69 | |||||||||||||||||||
| Other income (loss) | (2) | (2) | — | (4) | |||||||||||||||||||
| Total revenues | (19) | 67 | (10) | 38 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Loss expense (benefit) | (7) | — | — | (7) | |||||||||||||||||||
| Interest expense | — | — | (10) | (10) | |||||||||||||||||||
| Total expenses | (7) | — | (10) | (17) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (47) | — | (47) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | (12) | 20 | — | 8 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | (2) | — | — | (2) | |||||||||||||||||||
| Less: Noncontrolling interest | — | 16 | — | 16 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | (10) | $ | 4 | $ | — | $ | (6) | |||||||||||||||
46
Summary
47
Assured Guaranty Ltd.
Summary of Financial and Statistical Data
| Year Ended December 31, | |||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | |||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||||||||
| GAAP Summary Statements of Operations Data | |||||||||||||||||||||||||||||
| Net earned premiums | $ | 380 | $ | 403 | $ | 344 | $ | 494 | $ | 414 | |||||||||||||||||||
| Net investment income | 359 | 340 | 365 | 269 | 269 | ||||||||||||||||||||||||
| Total expenses | 550 | 446 | 733 | 536 | 465 | ||||||||||||||||||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 560 | 426 | 640 | 187 | 383 | ||||||||||||||||||||||||
| Income (loss) before income taxes | 662 | 488 | 668 | 148 | 477 | ||||||||||||||||||||||||
| Net income (loss) attributable to AGL | 503 | 376 | 739 | 124 | 389 | ||||||||||||||||||||||||
| Net income (loss) attributable to AGL per diluted share | 10.26 | 6.87 | 12.30 | 1.92 | 5.23 | ||||||||||||||||||||||||
| GAAP Summary Balance Sheet Data | |||||||||||||||||||||||||||||
| Total investments and cash | $ | 8,875 | $ | 8,784 | $ | 9,212 | $ | 8,472 | $ | 9,728 | |||||||||||||||||||
| Total assets | 12,176 | 11,901 | 12,539 | 16,843 | 18,208 | ||||||||||||||||||||||||
| Unearned premium reserve | 3,625 | 3,719 | 3,658 | 3,620 | 3,716 | ||||||||||||||||||||||||
| Loss and LAE reserve | 309 | 268 | 376 | 296 | 869 | ||||||||||||||||||||||||
| Long-term debt | 1,704 | 1,699 | 1,694 | 1,675 | 1,673 | ||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | 5,663 | 5,495 | 5,713 | 5,064 | 6,292 | ||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL per share | 125.32 | 108.80 | 101.63 | 85.80 | 93.19 | ||||||||||||||||||||||||
Claims-paying resources (1) | |||||||||||||||||||||||||||||
| Policyholders’ surplus | $ | 4,033 | $ | 4,329 | $ | 4,807 | $ | 5,155 | $ | 5,572 | |||||||||||||||||||
| Contingency reserve | 1,511 | 1,392 | 1,296 | 1,202 | 1,225 | ||||||||||||||||||||||||
| Qualified statutory capital | 5,544 | 5,721 | 6,103 | 6,357 | 6,797 | ||||||||||||||||||||||||
| Unearned premium reserve and net deferred ceding commission income | 2,982 | 2,964 | 2,955 | 2,941 | 2,972 | ||||||||||||||||||||||||
| Loss and LAE reserves | 43 | 53 | 145 | 165 | 167 | ||||||||||||||||||||||||
| Total policyholders' surplus and reserves | 8,569 | 8,738 | 9,203 | 9,463 | 9,936 | ||||||||||||||||||||||||
| Present value of installment premium | 1,125 | 1,073 | 1,062 | 955 | 883 | ||||||||||||||||||||||||
| CCS and standby line of credit | 400 | 400 | 400 | 400 | 400 | ||||||||||||||||||||||||
| Total claims-paying resources | $ | 10,094 | $ | 10,211 | $ | 10,665 | $ | 10,818 | $ | 11,219 | |||||||||||||||||||
| Ratios: | |||||||||||||||||||||||||||||
| Net exposure to qualified statutory capital | 51:1 | 46:1 | 41:1 | 36:1 | 34:1 | ||||||||||||||||||||||||
| Capital ratio | 80:1 | 73:1 | 66:1 | 58:1 | 53:1 | ||||||||||||||||||||||||
| Financial resources ratio | 44:1 | 41:1 | 37:1 | 34:1 | 32:1 | ||||||||||||||||||||||||
| Adjusted statutory net exposure to claims-paying resources | 28:1 | 26:1 | 24:1 | 21:1 | 21:1 | ||||||||||||||||||||||||
| Par and Debt Service Written (Financial Guaranty and Specialty) | |||||||||||||||||||||||||||||
| Gross debt service written: | |||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 48,974 | $ | 44,019 | $ | 41,902 | $ | 36,954 | $ | 35,572 | |||||||||||||||||||
| Public finance - non-U.S. | 1,657 | 3,302 | 3,286 | 756 | 1,890 | ||||||||||||||||||||||||
| Structured finance - U.S. | 530 | 1,495 | 2,130 | 1,120 | 1,319 | ||||||||||||||||||||||||
| Structured finance - non-U.S. | 3,864 | 4,078 | 3,084 | 551 | 431 | ||||||||||||||||||||||||
| Total gross debt service written | $ | 55,025 | $ | 52,894 | $ | 50,402 | $ | 39,381 | $ | 39,212 | |||||||||||||||||||
| Net debt service written | $ | 55,020 | $ | 52,760 | $ | 50,402 | $ | 39,381 | $ | 39,212 | |||||||||||||||||||
| Net par written | 32,911 | 31,695 | 28,960 | 22,047 | 26,656 | ||||||||||||||||||||||||
| Gross par written | 32,916 | 31,829 | 28,960 | 22,047 | 26,656 | ||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||||||||||||||||||||
| Other Financial Information | 2025 | 2024 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||
| (in billions) | |||||||||||||||||||||||||||||
| GAAP Basis - Financial Guaranty | |||||||||||||||||||||||||||||
| Net debt service outstanding (end of period) | $ | 440.8 | $ | 416.0 | $ | 397.6 | $ | 370.0 | $ | 367.4 | |||||||||||||||||||
| Gross debt service outstanding (end of period) | 441.4 | 416.5 | 398.0 | 370.2 | 367.8 | ||||||||||||||||||||||||
| Net par outstanding (end of period) | 277.1 | 261.6 | 249.2 | 233.3 | 236.4 | ||||||||||||||||||||||||
| Gross par outstanding (end of period) | 277.6 | 262.0 | 249.5 | 233.4 | 236.8 | ||||||||||||||||||||||||
Statutory Basis - Financial Guaranty (2) | |||||||||||||||||||||||||||||
| Net debt service outstanding (end of period) | $ | 439.4 | $ | 415.5 | $ | 396.4 | $ | 366.9 | $ | 362.0 | |||||||||||||||||||
| Gross debt service outstanding (end of period) | 440.0 | 416.0 | 396.8 | 367.1 | 362.4 | ||||||||||||||||||||||||
| Net par outstanding (end of period) | 275.9 | 260.9 | 247.8 | 230.3 | 231.7 | ||||||||||||||||||||||||
| Gross par outstanding (end of period) | 276.5 | 261.4 | 248.2 | 230.5 | 232.1 | ||||||||||||||||||||||||
1) See page 19 for additional detail on claims-paying resources.
2) Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for the Company’s U.S. domiciled insurance subsidiary, Assured Guaranty Inc., are prepared on a stand-alone basis. As of December 31, 2025 par outstanding and debt service outstanding exclude par associated with Loss Mitigation Securities.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.
48
Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations (1) (1 of 2)
(in millions, except per share amounts)
| Year Ended December 31, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||
| Total GWP | $ | 256 | $ | 440 | $ | 357 | $ | 360 | $ | 377 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (2) | 105 | 300 | 247 | 145 | 158 | |||||||||||||||||||||||||||
| Upfront GWP | 151 | 140 | 110 | 215 | 219 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (3) | 135 | 262 | 294 | 160 | 142 | |||||||||||||||||||||||||||
| Total PVP | $ | 286 | $ | 402 | $ | 404 | $ | 375 | $ | 361 | ||||||||||||||||||||||
| PVP: | ||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 206 | $ | 270 | $ | 212 | $ | 257 | $ | 235 | ||||||||||||||||||||||
| Public finance - non-U.S. | 37 | 67 | 83 | 68 | 79 | |||||||||||||||||||||||||||
| Structured finance - U.S. | 13 | 25 | 68 | 43 | 42 | |||||||||||||||||||||||||||
| Structured finance - non-U.S. | 30 | 40 | 41 | 7 | 5 | |||||||||||||||||||||||||||
| Total PVP | $ | 286 | $ | 402 | $ | 404 | $ | 375 | $ | 361 | ||||||||||||||||||||||
| Adjusted operating income reconciliation: | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 503 | $ | 376 | $ | 739 | $ | 124 | $ | 389 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (40) | 9 | (14) | (56) | 15 | |||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 6 | 14 | 106 | (18) | (64) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 20 | (10) | (35) | 24 | (28) | |||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 85 | (26) | 51 | (110) | (21) | |||||||||||||||||||||||||||
| Total pre-tax adjustments | 71 | (13) | 108 | (160) | (98) | |||||||||||||||||||||||||||
| Less tax effect on pre-tax adjustments | (13) | — | (17) | 17 | 17 | |||||||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 445 | $ | 389 | $ | 648 | $ | 267 | $ | 470 | ||||||||||||||||||||||
| Adjusted operating income per diluted share reconciliation: | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to AGL per diluted share | $ | 10.26 | $ | 6.87 | $ | 12.30 | $ | 1.92 | $ | 5.23 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (0.82) | 0.16 | (0.23) | (0.87) | 0.20 | |||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 0.12 | 0.27 | 1.75 | (0.27) | (0.85) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 0.40 | (0.19) | (0.57) | 0.37 | (0.38) | |||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 1.74 | (0.47) | 0.84 | (1.72) | (0.29) | |||||||||||||||||||||||||||
| Total pre-tax adjustments | 1.44 | (0.23) | 1.79 | (2.49) | (1.32) | |||||||||||||||||||||||||||
| Tax effect on pre-tax adjustments | (0.26) | — | (0.27) | 0.27 | 0.23 | |||||||||||||||||||||||||||
| Adjusted operating income (loss) per diluted share | $ | 9.08 | $ | 7.10 | $ | 10.78 | $ | 4.14 | $ | 6.32 | ||||||||||||||||||||||
1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
2) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.
3) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.
49
Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations (1) (2 of 2)
(in millions, except per share amounts)
| As of December 31, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | 2021 | ||||||||||||||||||||||||||||
| ABV reconciliation: | ||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,663 | $ | 5,495 | $ | 5,713 | $ | 5,064 | $ | 6,292 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 55 | 49 | 34 | (71) | (54) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 22 | 2 | 13 | 47 | 23 | |||||||||||||||||||||||||||
| Unrealized gain (loss) on investment portfolio | (149) | (397) | (361) | (523) | 404 | |||||||||||||||||||||||||||
| Less taxes | 6 | 46 | 37 | 68 | (72) | |||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,729 | 5,795 | 5,990 | 5,543 | 5,991 | |||||||||||||||||||||||||||
| Pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Less: DAC | 192 | 176 | 161 | 147 | 131 | |||||||||||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 194 | 202 | 199 | 157 | 160 | |||||||||||||||||||||||||||
| Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed | 3,367 | 3,473 | 3,436 | 3,428 | 3,402 | |||||||||||||||||||||||||||
| Plus taxes | (674) | (702) | (699) | (602) | (599) | |||||||||||||||||||||||||||
| ABV | $ | 8,424 | $ | 8,592 | $ | 8,765 | $ | 8,379 | $ | 8,823 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||||||||
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $2, $0, $1, $4, and $5) | $ | 8 | $ | — | $ | 5 | $ | 17 | $ | 32 | ||||||||||||||||||||||
ABV (net of tax provision (benefit) of $1, $(2), $0, $3, and $3) | $ | 3 | $ | (6) | $ | — | $ | 11 | $ | 23 | ||||||||||||||||||||||
| ABV per share reconciliation: | ||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL per share | $ | 125.32 | $ | 108.80 | $ | 101.63 | $ | 85.80 | $ | 93.19 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 1.21 | 0.96 | 0.61 | (1.21) | (0.80) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 0.48 | 0.05 | 0.22 | 0.80 | 0.34 | |||||||||||||||||||||||||||
| Unrealized gain (loss) on investment portfolio | (3.28) | (7.86) | (6.40) | (8.86) | 5.99 | |||||||||||||||||||||||||||
| Less taxes | 0.13 | 0.90 | 0.66 | 1.15 | (1.07) | |||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity per share | 126.78 | 114.75 | 106.54 | 93.92 | 88.73 | |||||||||||||||||||||||||||
| Pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Less: DAC | 4.25 | 3.47 | 2.87 | 2.48 | 1.95 | |||||||||||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 4.30 | 3.99 | 3.54 | 2.66 | 2.37 | |||||||||||||||||||||||||||
| Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed | 74.51 | 68.75 | 61.12 | 58.10 | 50.40 | |||||||||||||||||||||||||||
| Plus taxes | (14.91) | (13.90) | (12.41) | (10.22) | (8.88) | |||||||||||||||||||||||||||
| ABV per share | $ | 186.43 | $ | 170.12 | $ | 155.92 | $ | 141.98 | $ | 130.67 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||||||||
| Adjusted operating shareholders' equity per share | $ | 0.18 | $ | 0.01 | $ | 0.07 | $ | 0.28 | $ | 0.47 | ||||||||||||||||||||||
| ABV per share | $ | 0.07 | $ | (0.13) | $ | — | $ | 0.19 | $ | 0.34 | ||||||||||||||||||||||
1) See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
50
Glossary
Financial Guaranty Insurance
Net Par Outstanding and Internal Ratings
Net Par Outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.
Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.
Statutory Net Par and Net Debt Service Outstanding. Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).
Performance Indicators
The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:
60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.
Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’s exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.
Sectors
Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2025.
U.S. Public Finance:
General Obligation Bonds are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.
Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.
Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.
Transportation Bonds include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.
Healthcare Bonds are obligations of healthcare facilities, including community-based hospitals and systems, and hospital districts.
Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, military housing, social infrastructure, student accommodation and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.
51
Glossary (continued)
Sectors (continued)
Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.
Renewable Energy Bonds are obligations backed by revenue from renewable energy sources.
Other Public Finance Bonds include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, housing revenue bonds, and obligations of some not-for-profit organizations.
Non-U.S. Public Finance:
Regulated Utility Obligations are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities’ customers. The majority of the Company’s non-U.S. regulated utility business is conducted in the U.K.
Infrastructure Finance Obligations are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodation, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company’s non-U.S. infrastructure business is conducted in the U.K.
Sovereign and Sub-Sovereign Obligations primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.
Renewable Energy Bonds are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company’s non-U.S. renewable energy business is conducted in Spain.
Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.
Structured Finance:
Insurance Reserve Financings and Securitizations are transactions, including life insurance transactions, where obligations are secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.
Residential Mortgage-Backed Securities (RMBS) are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including “prime,” “subprime” and “Alt-A.” A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008.
Fund Finance Facilities are primarily subscription finance which are credit facilities provided to closed-end private market funds, most frequently private-equity funds. The facilities are secured by the uncalled capital commitments of the limited partners (LPs) to the fund. The Company may guarantee new or existing facilities and on a single facility or portfolio basis. Assured Guaranty’s exposures are generally to facilities with characteristics that include a high-quality fund sponsor with strong historical performance, a diverse LP base composed primarily of institutional LPs and experienced bank lenders.
Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in “tranches,” with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.
Financial Products is the guarantee of certain business written by financial products companies owned by Dexia SA, which comprised guaranteed investment contracts, medium term notes and equity payment undertaking agreements associated with leveraged lease business. This business is being run off with the final maturity due in 2031. Assured Guaranty is indemnified by Dexia SA and certain of its affiliates against loss from the financial products business.
52
Glossary (continued)
Sectors (continued)
Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other U.S. and Non-U.S. Structured Finance Obligations categories above.
Specialty Business
The Company also guarantees specialty business with similar risk profiles to its structured finance exposures written in financial guaranty form. Specialty business includes, for example, diversified real estate, insurance reserve financings and securitizations, pooled corporate obligations and aircraft residual value insurance transactions.
53
Non-GAAP Financial Measures
The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.
The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.
GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and CIVs in which certain subsidiaries invest.
The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.
The Company’s management and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (i) adjusted operating income per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating income per share); (ii) adjusted operating shareholders’ equity per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating shareholders’ equity per share); (iii) ABV per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core ABV per share); (iv) core operating return on equity, which is calculated as core operating income divided by the average of core operating shareholders’ equity at the beginning and end of the period; and (v) PVP.
The Company’s management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or ABV, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares.
Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.
The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented within this financial supplement.
Adjusted Operating Income: The Company’s management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of realized gains (losses) on the Company’s investments that are recognized in net income (loss) attributable to AGL, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.
2) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income (loss) attributable to AGL, which is the amount of fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income (loss) attributable to AGL. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
4) Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income (loss) attributable to AGL. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.
54
Non-GAAP Financial Measures (continued)
5) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Adjusted operating income per share is calculated by dividing adjusted operating income by the weighted average diluted shares. The method for calculating weighted average diluted shares is in accordance with GAAP.
Adjusted Operating Shareholders’ Equity and ABV: The Company’s management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss. The Company’s management uses ABV, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. The Company’s management believes that ABV is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses.
Adjusted operating shareholders’ equity per share and ABV per share, each further adjusted for FG VIE and CIV consolidation (core operating shareholders’ equity per share and core ABV per share, respectively), are two of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors.
Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are reported on the consolidated balance sheet, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
2) Elimination of fair value gains (losses) on the Company’s CCS that are reported on the consolidated balance sheet. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not result in an economic gain or loss.
4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
ABV is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:
1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.
2) Addition of the net present value of estimated net future revenue. See below.
3) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed.
4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Shares outstanding as of the end of the reporting period are used to calculate adjusted operating shareholders’ equity per share and ABV per share.
The unearned premiums and revenues included in ABV will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current ABV due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.
55
Non-GAAP Financial Measures (continued)
Adjusted Operating ROE: Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL’s share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.
Net Present Value of Estimated Net Future Revenue: The Company’s management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.
PVP or Present Value of New Business Production: The Company’s management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.
Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.
56
Assured Guaranty Ltd.
30 Woodbourne Avenue
Hamilton HM 08
Bermuda
(441) 279-5705
www.assuredguaranty.com
Contacts:
Equity and Fixed Income Investors:
Robert Tucker
Senior Managing Director, Investor Relations and Corporate Communications
(212) 339-0861
rtucker@agltd.com
Michael Walker
Managing Director, Fixed Income Investor Relations
(212) 261-5575
mwalker@agltd.com
Andre Thomas
Managing Director, Equity Investor Relations
(212) 339-3551
athomas@agltd.com
Media:
Ashweeta Durani
Director, Media Relations
(212) 408-6042
adurani@agltd.com
FAQ
How did Assured Guaranty (AGO) perform financially in full year 2025?
Assured Guaranty reported strong 2025 results, with net income of $503 million, or $10.26 per diluted share. Adjusted operating income was $445 million, or $9.08 per share, reflecting a 28% year-over-year increase in underlying earnings performance.
What were Assured Guaranty’s key results for fourth quarter 2025?
In fourth quarter 2025, Assured Guaranty generated net income attributable to shareholders of $119 million, or $2.53 per diluted share. Adjusted operating income was $109 million, or $2.32 per share, supported by insurance segment earnings and gains on a building sale tied to loss mitigation.
How much capital did Assured Guaranty (AGO) return to shareholders in 2025?
In 2025, Assured Guaranty returned $569 million to shareholders. This included $500 million of common share repurchases totaling 5.8 million shares and $69 million in dividends, and management noted repurchasing 11.5% of shares outstanding since December 31, 2024.
What happened to Assured Guaranty’s book value and adjusted book value in 2025?
As of December 31, 2025, shareholders’ equity per share increased to $125.32. Adjusted operating shareholders’ equity per share reached $126.78, and adjusted book value per share rose to $186.43, driven by earnings, investment gains and share repurchases, partially offset by dividends.
How strong was Assured Guaranty’s new business production in 2025?
Assured Guaranty’s 2025 insurance new business remained solid, with gross written premiums of $256 million and present value of new business production (PVP) of $286 million. U.S. public finance and global structured finance transactions were key contributors to overall production during the year.
What strategic moves did Assured Guaranty (AGO) make in 2025 and early 2026?
The company resolved LBIE litigation with a $103 million gain and sold a commercially leased building for a $23 million gain. On January 21, 2026, it also entered the annuity reinsurance market by acquiring a life and annuity reinsurer, renamed Assured Life Re.
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Assured Guaranty Ltd
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Feb 27, 2026
[8-K] ASSURED GUARANTY LTD Reports Material Event
Feb 27, 2026
[10-K] ASSURED GUARANTY LTD Files Annual Report