Q1 2026: Assured Guaranty (NYSE: AGO) profit drops to $88M
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Assured Guaranty Ltd. reported first-quarter 2026 net income attributable to shareholders of $88 million, or $1.91 per diluted share, and adjusted operating income of $115 million, or $2.50 per diluted share. Gross written premiums were $70 million and present value of new business production reached $73 million, with higher volumes across U.S. and non-U.S. public finance and structured finance.
Asset management delivered $44 million of adjusted operating income, helped by carried interest from a single-asset fund. Adjusted book value per share rose to $188.74, while shareholders’ equity per share was $124.28. The company returned $93 million to shareholders, including $75 million of repurchases and $18 million of dividends, and has repurchased 81% of shares since 2013.
Assured Guaranty expanded into annuity reinsurance via the Assured Life Re acquisition, reinsuring $475 million of pension risk transfer reserves and $263 million of multi‑year guaranteed annuity account value. Management plans to reduce share repurchases to about $30 million over the next three months to support growth in financial guaranty and annuity reinsurance.
Positive
- None.
Negative
- None.
Insights
Earnings fell versus 2025, but new business, asset management and annuity reinsurance broaden earnings drivers.
Assured Guaranty generated Q1 2026 net income of $88M and adjusted operating income of $115M, down from $176M and $162M a year earlier, largely because Q1 2025 included a $103M Lehman-related gain and higher equity income. Underlying insurance and fee businesses remain active, with gross written premiums of $70M and PVP of $73M.
The earnings mix is shifting. Financial Guaranty adjusted operating income declined to $102M, but the Asset Management segment rose sharply to $44M, aided by carried interest, and the new Annuity Reinsurance segment broke even. Adjusted book value per share increased to $188.74, despite unrealized investment losses that reduced GAAP equity per share, indicating embedded future revenue and margins in the insured and reinsured books.
Capital deployment is evolving. The company returned $93M in Q1, including $75M in buybacks, and has repurchased 81% of shares since 2013, but now targets only about $30M of repurchases over the next three months to support growth in financial guaranty and annuity reinsurance. Alternative investments of $965M with a 12% inception‑to‑date IRR, and new PRT and MYGA blocks, add diversification while also introducing market and longevity sensitivities that will flow through future results.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income attributable to AGL: $88 million
Adjusted operating income: $115 million
Gross written premiums: $70 million
+5 more
8 metrics
Net income attributable to AGL
$88 million
For the quarter ended March 31, 2026; $1.91 diluted EPS
Adjusted operating income
$115 million
Q1 2026; $2.50 per diluted share
Gross written premiums
$70 million
Financial Guaranty segment, first quarter 2026
Present value of new business production
$73 million
Financial Guaranty segment, first quarter 2026
Adjusted book value per share
$188.74
As of March 31, 2026
Capital returned to shareholders
$93 million
Q1 2026; $75M repurchases and $18M dividends
Annuity PRT reserves
$475 million
Future policy benefits for pension risk transfers reinsured by Assured Life Re
Alternative investments balance
$965 million
Company-wide alternative investments as of March 31, 2026; 12% inception IRR
Key Terms
Present value of new business production (PVP), Adjusted operating income, Adjusted book value (ABV), Pension risk transfer (PRT), +2 more
6 terms
Present value of new business production (PVP) financial
"Present value of new business production (PVP)(2) was $73 million for first quarter 2026."
Adjusted operating income financial
"Adjusted operating income(2) was $115 million, or $2.50 per share, for first quarter 2026."
Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.
Adjusted book value (ABV) financial
"Adjusted operating shareholders’ equity per share(2) and adjusted book value (ABV) per share(2) were $128.61 and $188.74, respectively, as of March 31, 2026."
Pension risk transfer (PRT) financial
"Segment revenues include $5 million related to U.K. bulk purchase annuities (pension risk transfers, PRT) business and $5 million related to U.S. multi-year guaranteed annuities (MYGA)."
Pension risk transfer (PRT) is a financial transaction in which a company pays an insurer to take over responsibility for its pension obligations, typically by buying insurance contracts that guarantee retiree payments. For investors, PRT matters because it removes long-term pension risk from the company’s balance sheet—reducing unpredictable future liabilities and funding uncertainty—while requiring upfront cash or capital that can affect earnings, cash flow and credit metrics.
Multi-year guaranteed annuities (MYGA) financial
"Assured Life Re also reinsures a block of MYGA business with a policyholder account value of $263 million."
A multi-year guaranteed annuity (MYGA) is an insurance contract that locks in a fixed interest rate for a set number of years and pays that guaranteed return later, often as regular income; think of it like a timed savings account offered by an insurer rather than a bank. Investors care because it provides predictable, tax-deferred growth and principal protection from market swings, but it reduces liquidity, carries the insurer’s credit risk, and may include surrender charges for early withdrawal.
Collateralized loan obligation (CLO) financial
"Equity in earnings (losses) of investees was $8 million in first quarter 2026, compared with $30 million in first quarter 2025, primarily due to $11 million in mark-to-market losses in first quarter 2026 related to CLO investments."
A collateralized loan obligation (CLO) is a financial product that bundles many business loans and sells pieces of that bundle to investors, so each investor owns a slice with a different balance of risk and return. Think of it like a mixed fruit basket where some slices get the bigger, juicier fruits (higher returns and higher risk) while others get safer, smaller pieces; CLOs matter to investors because they offer a way to earn higher income than simple bonds but carry credit and market risks that affect returns and price volatility.
Offering Details
earnings_snapshot
Offering
Offering Type
earnings_snapshot
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)—May 7, 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 May 7, 2026, Assured Guaranty Ltd. issued a press release reporting its first quarter 2026 results and the availability of its March 31, 2026 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 May 7, 2026 reporting first quarter 2026 results | ||||
| 99.2 | March 31, 2026 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: May 7, 2026
3
Assured Guaranty Ltd. Reports Results for First Quarter 2026
•GAAP Highlights:
•Net income attributable to Assured Guaranty Ltd. was $88 million, or $1.91 per share,(1) for first quarter 2026.
•Shareholders’ equity attributable to Assured Guaranty Ltd. per share was $124.28 as of March 31, 2026.
•Gross written premiums (GWP) were $70 million for first quarter 2026.
•Non-GAAP Highlights:
•Adjusted operating income(2) was $115 million, or $2.50 per share, for first quarter 2026.
•Adjusted operating shareholders’ equity per share(2) and adjusted book value (ABV) per share(2) were $128.61 and $188.74, respectively, as of March 31, 2026.
•Present value of new business production (PVP)(2) was $73 million for first quarter 2026.
•Return of Capital to Shareholders:
•First quarter 2026 capital returned to shareholders was $93 million including share repurchases of $75 million and dividends of $18 million.
Hamilton, Bermuda, May 7, 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 March 31, 2026 (first quarter 2026).
“Assured Guaranty began 2026 with a strong first quarter,” said Dominic Frederico, President and CEO. “In new business production, year-over-year, we doubled first quarter GWP to $70 million and nearly doubled first quarter PVP to $73 million, with increased production in each of our three financial guaranty business sectors - U.S. public finance, non-U.S. public finance and global structured finance.
“Additionally, our strategic approach to the asset management segment produced $44 million of first quarter adjusted operating income.
“During the quarter, Assured Guaranty produced $1.91 of net income per share, and adjusted operating income per share came in at $2.50. Shareholders’ equity per share of $124.28 on March 31 remained near its high, set three months earlier, and we reached record per-share valuations of $128.61 for adjusted operating shareholders’ equity and $188.74 for adjusted book value.”
(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” at the end of this press release.
1
Summary Financial Results
(in millions, except per share amounts)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
GAAP (1) | |||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | |||||||
| Net income (loss) attributable to AGL per diluted share | $ | 1.91 | $ | 3.44 | |||||||
| Weighted average diluted shares | 45.4 | 50.7 | |||||||||
Non-GAAP (2) | |||||||||||
Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
| Adjusted operating income per diluted share | $ | 2.50 | $ | 3.18 | |||||||
| Weighted average diluted shares | 45.4 | 50.7 | |||||||||
| Components of total adjusted operating income (loss) | |||||||||||
| Financial Guaranty segment | $ | 102 | $ | 168 | |||||||
| Annuity Reinsurance segment | — | — | |||||||||
| Asset Management segment | 44 | 12 | |||||||||
| Corporate division | (15) | (20) | |||||||||
| Other | (16) | 2 | |||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
| As of | |||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 124.28 | $ | 5,663 | $ | 125.32 | |||||||||||||||
Adjusted operating shareholders’ equity (2) | 5,735 | 128.61 | 5,729 | 126.78 | |||||||||||||||||||
ABV (2) | 8,416 | 188.74 | 8,424 | 186.43 | |||||||||||||||||||
| Common Shares Outstanding | 44.6 | 45.2 | |||||||||||||||||||||
________________________________________
(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 decreased to $124.28 as of March 31, 2026 from $125.32 as of December 31, 2025, primarily due to unrealized losses on the investment portfolio. On a per share basis, ABV increased to $188.74 as of March 31, 2026 from $186.43 as of December 31, 2025, primarily due to adjusted operating income, new business production, share repurchases, and accretive effect of acquisition of Assured Life Reinsurance Ltd. (Assured Life Re), partially offset by dividends.
Financial Guaranty Segment
The Financial Guaranty segment primarily consists of (i) the Company’s financial guaranty 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 investment subsidiary, AG Asset Strategies LLC.
2
Financial Guaranty Segment New Business Production
Financial Guaranty Segment
New Business Production
(in millions)
| Quarter Ended March 31, | |||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||
| GWP | PVP (1) | Gross Par Written (2) | GWP | PVP (1) | Gross Par Written (2) | ||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 48 | $ | 48 | $ | 3,957 | $ | 25 | $ | 25 | $ | 4,269 | |||||||||||||||||||||||
| Public finance - non-U.S. | 8 | 8 | 92 | (1) | 7 | 197 | |||||||||||||||||||||||||||||
| Structured finance - U.S. | 6 | 7 | 1,534 | 7 | 2 | 121 | |||||||||||||||||||||||||||||
| Structured finance - non-U.S. | 8 | 10 | 1,928 | 4 | 5 | 415 | |||||||||||||||||||||||||||||
| Total | $ | 70 | $ | 73 | $ | 7,511 | $ | 35 | $ | 39 | $ | 5,002 | |||||||||||||||||||||||
________________________________________
(1) PVP, a non-GAAP financial measure, measures the value of the Financial Guaranty 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 4.5% and 5.0% in first quarter 2026 and in the three-month period ended March 31, 2025 (first quarter 2025), respectively.
(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. U.S. public finance GWP and PVP were nearly double in first quarter 2026 compared with first quarter 2025, primarily due to healthcare and infrastructure finance transactions that were written in first quarter 2026. While GWP and PVP both increased in first quarter 2026, compared with first quarter 2025, gross par written in first quarter 2026 decreased compared with first quarter 2025.
The Company’s primary par written represented 53% of the total U.S. municipal market insured par sold in first quarter 2026, compared with 64% in first quarter 2025, and the Company’s penetration of all municipal issuance was 3.2% in first quarter 2026, compared with 3.9% in first quarter 2025.
Non-U.S. public finance GWP and PVP in first quarter 2026 included a secondary local authority transaction in the United Kingdom (U.K.), annual extensions of liquidity facilities, and a primary social housing transaction in France, marking the Company’s inaugural primary guarantee in the social housing market within the European Union.
U.S. and non-U.S. structured finance GWP and PVP in first quarter 2026 were primarily attributable to fund finance and financial guarantees for life insurance capital management purposes.
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.
Financial Guaranty Segment Adjusted Operating Income
Financial Guaranty segment adjusted operating income decreased to $102 million in first quarter 2026 from $168 million in first quarter 2025 primarily due to a $103 million pre-tax gain related to the resolution of the Lehman Brothers International (Europe) (in administration) (LBIE) litigation in first quarter 2025 and a decrease of $22 million in equity of earnings of investees in first quarter 2026 stemming primarily from losses generated by the Company’s investment in a collateralized loan obligation (CLO) fund. These decreases were partially offset by a $33 million discrete tax benefit resulting from the enactment of the U.K. Finance Act 2026 and a $23 million decrease in loss expense in the public finance sector in first quarter 2026.
3
Financial Guaranty Segment Results
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Segment revenues | |||||||||||
| Net earned premiums and credit derivative revenues | $ | 86 | $ | 134 | |||||||
| Net investment income | 88 | 86 | |||||||||
| Fair value gains (losses) on trading securities | 6 | 1 | |||||||||
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 2 | 18 | |||||||||
| Total segment revenues | 182 | 239 | |||||||||
| Segment expenses | |||||||||||
| Loss expense (benefit) | 17 | (23) | |||||||||
| Amortization of deferred acquisition costs (DAC) | 5 | 5 | |||||||||
| Employee compensation and benefit expenses | 54 | 52 | |||||||||
| Other operating expenses | 31 | 30 | |||||||||
| Total segment expenses | 107 | 64 | |||||||||
| Equity in earnings (losses) of investees | 8 | 30 | |||||||||
| Segment adjusted operating income (loss) before income taxes | 83 | 205 | |||||||||
| Less: Provision (benefit) for income taxes | (19) | 37 | |||||||||
| Segment adjusted operating income (loss) | $ | 102 | $ | 168 | |||||||
The components of the Financial Guaranty segment’s premiums, losses and income from the investment portfolio are presented below.
Financial Guaranty Segment Net Earned Premiums and Credit Derivative Revenues
Financial Guaranty Segment
Net Earned Premiums and Credit Derivative Revenues
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Scheduled net earned premiums and credit derivative revenues | $ | 91 | $ | 89 | |||||||
| Accelerations and modifications | (5) | 45 | |||||||||
| Total | $ | 86 | $ | 134 | |||||||
Net earned premiums and credit derivative revenues in first quarter 2025 included $40 million in accelerations and modifications, related to the resolution of the LBIE litigation.
Financial Guaranty 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.
4
Financial Guaranty Segment
Loss Expense (Benefit)
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Public finance | $ | 19 | $ | 42 | |||||||
| U.S. RMBS | (1) | — | |||||||||
| Other structured finance | (1) | (65) | |||||||||
| Total | $ | 17 | $ | (23) | |||||||
Loss expense attributable to public finance decreased in first quarter 2026 compared with first quarter 2025 primarily due to lower loss expenses on the Puerto Rico Electric Power Authority (PREPA) and certain healthcare exposures in first quarter 2026 compared with first quarter 2025. In addition, in first quarter 2025, other structured finance loss expense included a $63 million benefit related to the resolution of the LBIE litigation.
The table below presents the roll forward of net expected losses for first quarter 2026.
Roll Forward of Net Expected Loss to be Paid (Recovered) (1)
(in millions)
| Net Expected Loss to be Paid (Recovered) as of December 31, 2025 | Net Economic Loss Development (Benefit) | Net (Paid) Recovered Losses | Net Expected Loss to be Paid (Recovered) as of March 31, 2026 | ||||||||||||||||||||
| Public finance | $ | 95 | $ | 47 | $ | (11) | $ | 131 | |||||||||||||||
| U.S. RMBS | (54) | (2) | 8 | (48) | |||||||||||||||||||
| Other structured finance | 60 | (1) | (1) | 58 | |||||||||||||||||||
| Total | $ | 101 | $ | 44 | $ | (4) | $ | 141 | |||||||||||||||
_________________________________________________
(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 in first quarter 2026 was primarily attributable to Brightline Trains Florida LLC and PREPA.
5
Financial Guaranty Segment Income from the Investment Portfolio
Financial Guaranty Segment
Income from the Investment Portfolio
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net investment income | $ | 88 | $ | 86 | |||||||
| Fair value gains (losses) on trading securities | 6 | 1 | |||||||||
Equity in earnings (losses) of investees (1) | 8 | 30 | |||||||||
Total | $ | 102 | $ | 117 | |||||||
_________________________________________________
(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.
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 4.78% as of March 31, 2026 and 4.58% as of March 31, 2025. The increase in net investment income in first quarter 2026 compared with first quarter 2025 is primarily due to a shift in the portfolio to higher yielding corporate securities, offset in part by lower income from CLOs, loss mitigation securities and short-term securities due to lower short-term interest rates and short-term average investment balances.
Equity in earnings (losses) of investees was $8 million in first quarter 2026, compared with $30 million in first quarter 2025, primarily due to $11 million in mark-to-market losses in first quarter 2026 related to CLO investments. 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 March 31, 2026, the Company had $965 million in alternative investments across a variety of asset classes: $762 million in the Financial Guaranty segment consisting primarily of CLO equity tranches in the available-for-sale fixed-maturity securities portfolio and investments in funds focused on asset classes such as private healthcare investing, asset-based/specialty finance, commercial real estate finance and CLOs, 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 Financial Guaranty segment and Corporate division was 12% as of March 31, 2026.
6
Annuity Reinsurance Segment
On January 21, 2026, the Company expanded its insurance operations to include annuity reinsurance through the acquisition of Warwick Re Limited, which it renamed Assured Life Reinsurance Ltd. (Assured Life Re). The Annuity Reinsurance segment consists of the Company’s annuity reinsurance operations and includes the results of Assured Life Re and other subsidiaries acquired as part of that transaction.
Annuity Reinsurance Segment Results
(in millions)
| Quarter Ended | |||||
| March 31, 2026 | |||||
| Segment revenues | |||||
| Net investment income | $ | 5 | |||
| Fair value gains (losses) on derivatives | 5 | ||||
Total segment revenues (1) | 10 | ||||
| Segment expenses | |||||
Benefit expense for annuity reinsurance contracts (2) | 7 | ||||
| Employee compensation and benefit expenses | 2 | ||||
| Other operating expenses | 2 | ||||
| Total segment expenses | 11 | ||||
| Segment adjusted operating income (loss) before income taxes | (1) | ||||
| Less: Provision (benefit) for income taxes | (1) | ||||
| Segment adjusted operating income (loss) | $ | — | |||
_________________________________________
(1) Segment revenues include $5 million related to U.K. bulk purchase annuities (pension risk transfers, PRT) business and $5 million related to U.S. multi-year guaranteed annuities (MYGA).
(2) Benefit expense for annuity reinsurance contracts includes $4 million related to PRT and $3 million related to MYGA.
Assured Life Re reinsures a block of PRT business, with future policy benefit reserves of $475 million, supported by a $594 million portfolio of fixed-maturity, short-term securities, cash, derivatives and other assets.
The assets supporting the PRT contract primarily consist of U.S. and U.K. corporate and government bonds, including a portfolio of inflation-linked bonds, as well as derivatives which economically hedge the currency, inflation and interest rate mismatches between the PRT liabilities, which are long-dated inflation-linked obligations denominated in pound sterling, and the investment portfolio which includes certain U.S. dollar denominated and non-inflation linked securities.
Assured Life Re also reinsures a block of MYGA business with a policyholder account value of $263 million. The MYGA policyholder account balances for annuity reinsurance contracts are supported by assets in a funds withheld arrangement with the cedant primarily consisting of mortgage and other asset-backed securities for which the Company carries a funds withheld receivable of $296 million.
Asset Management Segment
Asset management adjusted operating income was $44 million in first quarter 2026 and $12 million in first 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 carried interest. For first quarter 2026, it included the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund. Sound Point’s results are reported in “equity in earnings (losses) of investees.”
7
Corporate Division
Corporate Division Results
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | |||||||||||
| Bargain purchase gain | $ | 6 | $ | — | |||||||
| Other | 2 | 4 | |||||||||
| Total revenues | 8 | 4 | |||||||||
| Expenses | |||||||||||
| Interest expense | 24 | 24 | |||||||||
| Employee compensation and benefit expenses | 7 | 8 | |||||||||
| Other operating expenses | 12 | 8 | |||||||||
| Total expenses | 43 | 40 | |||||||||
| Equity in earnings (losses) of investees | 19 | 16 | |||||||||
| Adjusted operating income (loss) before income taxes | (16) | (20) | |||||||||
| Less: Provision (benefit) for income taxes | (1) | — | |||||||||
| Adjusted operating income (loss) | $ | (15) | $ | (20) | |||||||
In first quarter 2026, in connection with the Assured Life Re acquisition, the Company recognized a provisional bargain purchase gain of $6 million and $4 million in acquisition expenses.
The Corporate division primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc. as well as expenses attributed to the holding companies’ activities. Equity in earnings (losses) of investees relates to certain alternative investments.
8
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)
| Quarter Ended | |||||||||||||||||||||||
| March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Total | Per Diluted Share | Total | Per Diluted Share | ||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 1.91 | $ | 176 | $ | 3.44 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Realized gains (losses) on investments | (15) | (0.33) | (16) | (0.30) | |||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | (2) | (0.05) | (2) | (0.04) | |||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (2) | (0.04) | — | — | |||||||||||||||||||
| Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld | (2) | (0.04) | — | — | |||||||||||||||||||
| Fair value gains (losses) on committed capital securities (CCS) | 6 | 0.13 | 2 | 0.03 | |||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of certain assets and liabilities | (18) | (0.39) | 33 | 0.64 | |||||||||||||||||||
| Total pre-tax adjustments | (33) | (0.72) | 17 | 0.33 | |||||||||||||||||||
| Less tax effect on pre-tax adjustments | 6 | 0.13 | (3) | (0.07) | |||||||||||||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 2.50 | $ | 162 | $ | 3.18 | |||||||||||||||
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income (1) | $ | (16) | $ | (0.37) | $ | 2 | $ | 0.05 | |||||||||||||||
________________________________________
(1) The effect of consolidating financial guaranty (FG) VIEs and consolidated investment vehicles (CIVs).
Realized losses on investments were primarily due to credit losses on CLO equity tranches in first quarter 2026 and credit losses on loss mitigation securities and realized losses on sales of securities in first quarter 2025.
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.
The Company purchases swaps and forwards to economically hedge foreign currency, interest rate and inflation risks in the annuity reinsurance business. These derivatives are freestanding and not in designated hedging relationships in accordance with GAAP.
The funds withheld arrangement includes the Company’s right to receive the total return on the assets supporting the funds withheld coinsurance agreement, which represents an embedded derivative. The fair value of this embedded derivative is included in funds withheld on the condensed consolidated balance sheets and the change in its fair value is based on the unrealized gains and losses of the underlying assets. The changes in fair value of the embedded derivative in funds withheld related to realized and unrealized gains and losses of the underlying investment portfolio are not included in adjusted operating income.
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.
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Foreign exchange gains (losses) primarily relate to remeasurement of certain assets and liabilities such as premiums receivables and insurance liabilities that are long term in nature 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.
Common Share Repurchases
Since the launch of its share repurchase program in 2013, the Company has returned $6 billion of excess capital to shareholders, having repurchased 81% of its common shares outstanding at the beginning of the program.
Summary of Share Repurchases
(in millions, except per share amounts)
Amount (1) | Number of Shares | Average Price Per Share | |||||||||||||||
| 2026 (January 1 - March 31) | $ | 75 | 0.88 | $ | 85.58 | ||||||||||||
| 2026 (April 1 - May 6) | 29 | 0.35 | 82.67 | ||||||||||||||
| Total 2026 | $ | 104 | 1.23 | 84.76 | |||||||||||||
_________________________________________________
(1) Excludes commissions.
As of May 6, 2026, the Company was authorized to repurchase an additional $147 million of its common shares.
As part of its overall capital management strategy, the Company regularly evaluates the level of its share repurchase program on a quarter-to-quarter basis, including alternative uses of available capital. The Company currently plans to reduce its share repurchases, to a target of $30 million of its common shares over the next three months, in order to use a portion of its available capital to support growth opportunities in its financial guaranty insurance and annuity reinsurance businesses, in addition to other strategic considerations.
The timing, form and amount of any future share repurchases will be determined at the Company’s discretion and will depend on various factors, including alternative uses for capital, the Company’s regulatory capital position, rating agency capital considerations, availability of cash at the parent company, market conditions and legal and regulatory requirements. Any such share repurchases may be made from time to time through open‑market purchases or privately negotiated transactions, and there can be no assurance of the amount of share repurchases that will occur in the future.
10
Financial Statements
Condensed Consolidated Statements of Operations (unaudited)
(in millions)
| Quarter Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | |||||||||||
| Net earned premiums | $ | 82 | $ | 91 | |||||||
| Net investment income | 92 | 87 | |||||||||
| Net realized investment gains (losses) | (15) | (16) | |||||||||
| Fair value gains (losses) on derivatives | 2 | 104 | |||||||||
| Fair value gains (losses) on CCS | 6 | 2 | |||||||||
| Gains (losses) on FG VIEs | (5) | 1 | |||||||||
| Fair value gains (losses) on CIVs | 9 | 19 | |||||||||
| Foreign exchange gains (losses) on remeasurement | (19) | 37 | |||||||||
| Fair value gains (losses) on trading securities | 6 | 1 | |||||||||
| Asset management revenues | 94 | 5 | |||||||||
| Other income (loss) | 9 | 14 | |||||||||
| Total revenues | 261 | 345 | |||||||||
| Expenses | |||||||||||
| Loss and LAE (benefit) | 17 | 40 | |||||||||
| Benefit expense for annuity reinsurance contracts | 7 | — | |||||||||
| Interest expense | 22 | 22 | |||||||||
| Amortization of DAC | 5 | 5 | |||||||||
| Employee compensation and benefit expenses | 63 | 60 | |||||||||
| Asset management expenses | 68 | 4 | |||||||||
| Other operating expenses | 45 | 38 | |||||||||
| Total expenses | 227 | 169 | |||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 34 | 176 | |||||||||
| Equity in earnings (losses) of investees | 31 | 53 | |||||||||
| Income (loss) before income taxes | 65 | 229 | |||||||||
| Less: Provision (benefit) for income taxes | (20) | 44 | |||||||||
| Net income (loss) | 85 | 185 | |||||||||
| Less: Noncontrolling interest | (3) | 9 | |||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | |||||||
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Condensed Consolidated Balance Sheets (unaudited)
(in millions)
| As of | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed-maturity securities available-for-sale, at fair value | $ | 6,875 | $ | 6,369 | |||||||
| Fixed-maturity securities, trading, at fair value | 127 | 124 | |||||||||
| Short-term investments, at fair value | 768 | 903 | |||||||||
| Other invested assets | 1,136 | 1,091 | |||||||||
| Total investments | 8,906 | 8,487 | |||||||||
| Cash | 312 | 388 | |||||||||
| Premiums receivable, net of commissions payable | 1,543 | 1,572 | |||||||||
| Funds withheld, at fair value | 296 | — | |||||||||
| DAC | 197 | 192 | |||||||||
| Salvage and subrogation recoverable | 437 | 449 | |||||||||
| FG VIEs’ assets | 201 | 212 | |||||||||
| Assets of CIVs | — | 175 | |||||||||
| Other assets | 743 | 701 | |||||||||
| Total assets | $ | 12,635 | $ | 12,176 | |||||||
| Liabilities | |||||||||||
| Unearned premium reserve | $ | 3,613 | $ | 3,625 | |||||||
| Loss and LAE reserve | 310 | 309 | |||||||||
| Future policy benefits for annuity reinsurance contracts | 475 | — | |||||||||
| Policyholder account balances for annuity reinsurance contracts | 263 | — | |||||||||
| Long-term debt | 1,705 | 1,704 | |||||||||
| FG VIEs’ liabilities | 194 | 198 | |||||||||
| Other liabilities | 511 | 551 | |||||||||
| Total liabilities | 7,071 | 6,387 | |||||||||
| Shareholders’ equity | |||||||||||
| Common shares | — | — | |||||||||
| Retained earnings | 5,821 | 5,830 | |||||||||
| Accumulated other comprehensive income (loss) | (280) | (168) | |||||||||
| Deferred equity compensation | 1 | 1 | |||||||||
| Total shareholders’ equity attributable to AGL | 5,542 | 5,663 | |||||||||
| Non-redeemable noncontrolling interest | 22 | 126 | |||||||||
| Total shareholders’ equity | 5,564 | 5,789 | |||||||||
| Total liabilities and shareholders’ equity | $ | 12,635 | $ | 12,176 | |||||||
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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’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 and provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty.
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.
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 FG insurance contract, and certain CIVs in which 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 Financial Guaranty 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 when the consolidation effects are not consistent with the Company’s economic interest or exposure to those entities (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 and as a basis for establishing target levels and awards under the Company’s executive incentive compensation programs. 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 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.
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 and excludes certain items that, under U.S. GAAP, (i) may vary significantly from period to period due to near-term market conditions or are otherwise not directly comparable
13
or reflective of the underlying performance of the Company’s business, (ii) result in asymmetrical accounting adjustments, and/or (iii) non-economic accounting adjustments. 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 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 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 changes in fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP). Certain mark-to-market movements of the hedged market risks are not reported in net income (loss) attributable to AGL, such as changes in the unrealized gains and losses on the available-for-sale investment portfolio due to fluctuations in exchange rates, and interest rates, and certain components of changes in insurance liabilities as a result of changes in interest rates. In addition, the timing of the recognition of mark-to-market movements as a result of inflation changes may not match the timing of the corresponding derivative gain and loss recognition.
4) Elimination of the changes in fair value of the embedded derivative in funds withheld that are recognized in net income (loss) attributable to AGL related to realized and unrealized gains (losses) of the underlying investment portfolio, whose value may change significantly from period to period due to near term market conditions.
5) Elimination of fair value gains (losses) on 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.
6) Elimination of foreign exchange gains (losses) on remeasurement of assets and liabilities such as net premium receivables and insurance liabilities that are long term in nature that are recognized in net income (loss) attributable to AGL. Long-dated receivables and insurance 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.
7) Income tax allocated to the adjustments above.
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 that are not expected to result in economic gain or loss. The Company’s
14
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 fair value gains (losses) on credit derivatives that are reported on the consolidated balance sheet, 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, 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 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 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) Elimination of the fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP), such as changes in fair value on derivatives that hedge fluctuations in foreign exchange, interest rates and inflation on the available-for-sale investment portfolio.
5) Elimination of the unrealized gains (losses) of the underlying investments in funds withheld arrangements.
6) Income tax allocated to the adjustments above.
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 deferred income on insurance contracts (including deferred profit liability and, in the case of FG insurance contracts, the amount of deferred premium revenue in excess of expected loss to be expensed, net of reinsurance).
4) Income tax allocated to the adjustments above.
15
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, modifications, credit defaults, changes in assumptions for or actual experience of the annuity insurance business and other factors.
Reconciliation of Shareholders’ Equity Attributable to AGL to
Adjusted Operating Shareholders’ Equity and ABV
(in millions, except per share amounts)
| As of | |||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Total | Per Share | Total | Per Share | ||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 124.28 | $ | 5,663 | $ | 125.32 | |||||||||||||||
| Less pre-tax adjustments: | |||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | 52 | 1.17 | 55 | 1.21 | |||||||||||||||||||
| Fair value gains (losses) on CCS | 28 | 0.62 | 22 | 0.48 | |||||||||||||||||||
| Unrealized gains (losses) on investment portfolio | (304) | (6.80) | (149) | (3.28) | |||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (3) | (0.07) | — | — | |||||||||||||||||||
| Fair value gains (losses) of the embedded derivative in funds withheld | 1 | 0.01 | — | — | |||||||||||||||||||
| Less taxes | 33 | 0.74 | 6 | 0.13 | |||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,735 | 128.61 | 5,729 | 126.78 | |||||||||||||||||||
| Pre-tax adjustments: | |||||||||||||||||||||||
| Less: DAC | 197 | 4.42 | 192 | 4.25 | |||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 190 | 4.27 | 194 | 4.30 | |||||||||||||||||||
| Plus: Net deferred revenues on insurance contracts | 3,358 | 75.30 | 3,367 | 74.51 | |||||||||||||||||||
| Plus taxes | (670) | (15.02) | (674) | (14.91) | |||||||||||||||||||
| ABV | $ | 8,416 | $ | 188.74 | $ | 8,424 | $ | 186.43 | |||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | |||||||||||||||||||||||
| Adjusted operating shareholders’ equity | $ | (8) | $ | (0.19) | $ | 8 | $ | 0.18 | |||||||||||||||
| ABV | (13) | (0.29) | 3 | 0.07 | |||||||||||||||||||
| Shares outstanding at the end of the period | 44.6 | 45.2 | |||||||||||||||||||||
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-FG 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,
16
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 Financial Guaranty 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 GWP 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 FG 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, amendments to policies, 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 | ||||||||||||||||||||||||||||||||
| March 31, 2026 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non - U.S. | U.S. | Non - U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 48 | $ | 8 | $ | 6 | $ | 8 | $ | 70 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 14 | 8 | 6 | 8 | 36 | |||||||||||||||||||||||||||
| Upfront GWP | 34 | — | — | — | 34 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 14 | 8 | 7 | 10 | 39 | |||||||||||||||||||||||||||
| PVP | $ | 48 | $ | 8 | $ | 7 | $ | 10 | $ | 73 | ||||||||||||||||||||||
17
| Quarter Ended | ||||||||||||||||||||||||||||||||
| March 31, 2025 | ||||||||||||||||||||||||||||||||
| Public Finance | Structured Finance | |||||||||||||||||||||||||||||||
| U.S. | Non - U.S. | U.S. | Non - U.S. | Total | ||||||||||||||||||||||||||||
| GWP | $ | 25 | $ | (1) | $ | 7 | $ | 4 | $ | 35 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 2 | (1) | 6 | 4 | 11 | |||||||||||||||||||||||||||
| Upfront GWP | 23 | — | 1 | — | 24 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 2 | 7 | 1 | 5 | 15 | |||||||||||||||||||||||||||
| PVP | $ | 25 | $ | 7 | $ | 2 | $ | 5 | $ | 39 | ||||||||||||||||||||||
_________________________________________________
(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.
18
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, May 8, 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 1-833-461-5787 (in the U.S.) or 1-585-542-9983 (International); the access code is 205052678.
A webcast replay of the conference call will be available approximately three hours after the call ends. The webcast replay will be available for one year in the Investor Information section of the Company’s website at AssuredGuaranty.com.
Please refer to Assured Guaranty’s March 31, 2026 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 “March 31, 2026 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 1Q 2026,” which lists the U.S. public finance new issues insured by the Company in first quarter 2026, and
•“Structured Finance Transactions at March 31, 2026,” 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.
19
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 Assured Guaranty’s risk mitigation strategies or activities, including distressed credit workouts, management of exposure limits, hedging activities, and the procurement of third party reinsurance for insured exposures; (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 annuity reinsurance and the launching of Assured Life Reinsurance Ltd.; (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 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, and its consolidated variable interest entities; (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, including rating agency requirements to hold additional capital against insured exposures; (xxii) the inability of Assured Guaranty to access capital on acceptable terms or have 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
20
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; (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 May 7, 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
21
Assured Guaranty Ltd.
March 31, 2026
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 | 10 | ||||||||||||||||
Investment Portfolio, Cash and CIVs | 11 | ||||||||||||||||
Income from Investment Portfolio and CIVs | 13 | ||||||||||||||||
Financial Guaranty Segment: | 14 | ||||||||||||||||
Financial Guaranty Segment Results | 15 | ||||||||||||||||
Claims-Paying Resources | 16 | ||||||||||||||||
New Business Production | 17 | ||||||||||||||||
Gross Par Written | 18 | ||||||||||||||||
New Business Production by Quarter | 19 | ||||||||||||||||
Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues | 20 | ||||||||||||||||
Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid (Recovered) | 21 | ||||||||||||||||
Loss Measures | 22 | ||||||||||||||||
Net Expected Loss to be Expensed | 23 | ||||||||||||||||
Financial Guaranty Profile | 24 | ||||||||||||||||
Specialty Business | 27 | ||||||||||||||||
Expected Amortization of Net Par Outstanding | 28 | ||||||||||||||||
Puerto Rico Profile | 29 | ||||||||||||||||
Direct Pooled Corporate Obligations Profile | 30 | ||||||||||||||||
Below Investment Grade Exposures | 31 | ||||||||||||||||
Largest Exposures by Sector | 34 | ||||||||||||||||
Annuity Reinsurance Segment | 37 | ||||||||||||||||
Annuity Reinsurance Segment Results | 38 | ||||||||||||||||
Asset Management Segment | 39 | ||||||||||||||||
Asset Management Segment Results | 40 | ||||||||||||||||
Corporate Division | 41 | ||||||||||||||||
Corporate Division Results | 42 | ||||||||||||||||
Other | 43 | ||||||||||||||||
Other Results | 44 | ||||||||||||||||
Summary | 45 | ||||||||||||||||
Summary of Financial and Statistical Data | 46 | ||||||||||||||||
Summary of GAAP to Non-GAAP Reconciliations | 47 | ||||||||||||||||
Glossary | 49 | ||||||||||||||||
Non-GAAP Financial Measures | 52 | ||||||||||||||||
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, including its Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026. 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 Assured Guaranty’s risk mitigation strategies or activities, including distressed credit workouts, management of exposure limits, hedging activities, and the procurement of third party reinsurance for insured exposures; (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 annuity reinsurance and the launching of Assured Life Reinsurance Ltd.; (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 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, and its consolidated variable interest entities; (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, including rating agency requirements to hold additional capital against insured exposures; (xxii) the inability of Assured Guaranty to access capital on acceptable terms or have 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; (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 | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
GAAP (1) Highlights | |||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | |||||||
| Net income (loss) attributable to AGL per diluted share | $ | 1.91 | $ | 3.44 | |||||||
| Weighted average shares outstanding | |||||||||||
| Basic shares outstanding | 44.9 | 50.0 | |||||||||
Diluted shares outstanding | 45.4 | 50.7 | |||||||||
| Effective tax rate on net income | (31.5) | % | 18.9 | % | |||||||
GAAP return on equity (ROE) (2) | 6.3 | % | 12.7 | % | |||||||
Non-GAAP Highlights (3) | |||||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
Adjusted operating income (loss) per diluted share (3) | $ | 2.50 | $ | 3.18 | |||||||
| Weighted average diluted shares outstanding | 45.4 | 50.7 | |||||||||
Effective tax rate on adjusted operating income (4) | (15.0) | % | 18.9 | % | |||||||
Adjusted operating ROE (2)(3) | 8.0 | % | 11.2 | % | |||||||
Components of adjusted operating income (loss) (3) | |||||||||||
| Financial Guaranty segment | $ | 102 | $ | 168 | |||||||
| Annuity Reinsurance segment | — | — | |||||||||
| Asset Management segment | 44 | 12 | |||||||||
| Corporate division | (15) | (20) | |||||||||
Other (5) | (16) | 2 | |||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
| Capital Returned to Common Shareholders | |||||||||||
Common share repurchases (6) | $ | 75 | $ | 120 | |||||||
| Dividends | 18 | 18 | |||||||||
| Total capital returned to common shareholders | $ | 93 | $ | 138 | |||||||
| Financial Guaranty Segment | |||||||||||
| Gross written premiums (GWP) | $ | 70 | $ | 35 | |||||||
Present value of new business production (PVP) (3) | 73 | 39 | |||||||||
| Gross par written | 7,511 | 5,002 | |||||||||
| Effect of refundings, terminations and modifications on GAAP measures: | |||||||||||
| Net earned premiums, pre-tax | $ | (6) | $ | 5 | |||||||
| Fair value gains (losses) of credit derivatives, pre-tax | 1 | 40 | |||||||||
| Net income effect (loss) | (4) | 36 | |||||||||
| Net income per diluted share (loss) | (0.09) | 0.70 | |||||||||
| Effect of refundings, terminations and modifications on non-GAAP measures: | |||||||||||
Operating net earned premiums and credit derivative revenues (7), pre-tax | $ | (5) | $ | 45 | |||||||
Adjusted operating income (loss) (7) effect | (4) | 36 | |||||||||
Adjusted operating income (loss) per diluted share (7) | (0.09) | 0.70 | |||||||||
1) Accounting principles generally accepted in the United States of America (GAAP).
2) Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.
3) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
4) Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.
5) Represents the effect of consolidating financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs) (FG VIE and CIV consolidation).
6) Excludes commissions.
7) 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.
1
Assured Guaranty Ltd.
Selected Financial Highlights (2 of 2)
| As of | |||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Amount | Per Share | Amount | Per Share | ||||||||||||||||||||
| (in millions, except per share amounts) | |||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 124.28 | $ | 5,663 | $ | 125.32 | |||||||||||||||
Adjusted operating shareholders’ equity (1) | 5,735 | 128.61 | 5,729 | 126.78 | |||||||||||||||||||
Adjusted book value (ABV) (1) | 8,416 | 188.74 | 8,424 | 186.43 | |||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | |||||||||||||||||||||||
| Adjusted operating shareholders’ equity | (8) | (0.19) | 8 | 0.18 | |||||||||||||||||||
| ABV | (13) | (0.29) | 3 | 0.07 | |||||||||||||||||||
| Shares outstanding at the end of period | 44.6 | 45.2 | |||||||||||||||||||||
Claims-paying resources (2) | $ | 10,021 | $ | 10,094 | |||||||||||||||||||
| As of | |||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
| Exposure | (in billions) | ||||||||||||||||||||||
| Financial guaranty net debt service outstanding | $ | 441.5 | $ | 440.8 | |||||||||||||||||||
| Financial guaranty net par outstanding: | |||||||||||||||||||||||
| Investment grade | $ | 270.0 | $ | 268.3 | |||||||||||||||||||
| Below-investment-grade (BIG) | 8.6 | 8.8 | |||||||||||||||||||||
| Total | $ | 278.6 | $ | 277.1 | |||||||||||||||||||
1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
2) See page 16 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 | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | |||||||||||
| Net earned premiums | $ | 82 | $ | 91 | |||||||
| Net investment income | 92 | 87 | |||||||||
| Net realized investment gains (losses) | (15) | (16) | |||||||||
| Fair value gains (losses) on derivatives | 2 | 104 | |||||||||
| Fair value gains (losses) on committed capital securities (CCS) | 6 | 2 | |||||||||
| Gains (losses) on FG VIEs | (5) | 1 | |||||||||
| Fair value gains (losses) on CIVs | 9 | 19 | |||||||||
| Foreign exchange gains (losses) on remeasurement | (19) | 37 | |||||||||
| Fair value gains (losses) on trading securities | 6 | 1 | |||||||||
| Asset management revenues | 94 | 5 | |||||||||
| Other income (loss) | 9 | 14 | |||||||||
| Total revenues | 261 | 345 | |||||||||
| Expenses | |||||||||||
| Loss and loss adjustment expense (LAE) (benefit) | 17 | 40 | |||||||||
| Benefit expense for annuity reinsurance contracts | 7 | — | |||||||||
| Interest expense | 22 | 22 | |||||||||
| Amortization of deferred acquisition costs (DAC) | 5 | 5 | |||||||||
| Employee compensation and benefit expenses | 63 | 60 | |||||||||
| Asset management expenses | 68 | 4 | |||||||||
| Other operating expenses | 45 | 38 | |||||||||
| Total expenses | 227 | 169 | |||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 34 | 176 | |||||||||
| Equity in earnings (losses) of investees | 31 | 53 | |||||||||
| Income (loss) before income taxes | 65 | 229 | |||||||||
| Less: Provision (benefit) for income taxes | (20) | 44 | |||||||||
| Net income (loss) | 85 | 185 | |||||||||
| Less: Noncontrolling interest | (3) | 9 | |||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | |||||||
| Earnings per share: | |||||||||||
| Basic | $ | 1.94 | $ | 3.49 | |||||||
| Diluted | $ | 1.91 | $ | 3.44 | |||||||
3
Assured Guaranty Ltd.
Condensed Consolidated Balance Sheets (unaudited)
(in millions)
| As of | |||||||||||
| March 31, | December 31, | ||||||||||
| 2026 | 2025 | ||||||||||
| Assets | |||||||||||
| Investments: | |||||||||||
| Fixed-maturity securities, available-for-sale, at fair value | $ | 6,875 | $ | 6,369 | |||||||
| Fixed-maturity securities, trading, at fair value | 127 | 124 | |||||||||
| Short-term investments, at fair value | 768 | 903 | |||||||||
| Other invested assets | 1,136 | 1,091 | |||||||||
| Total investments | 8,906 | 8,487 | |||||||||
| Cash | 312 | 388 | |||||||||
| Premiums receivable, net of commissions payable | 1,543 | 1,572 | |||||||||
| Funds withheld, at fair value | 296 | — | |||||||||
| DAC | 197 | 192 | |||||||||
| Salvage and subrogation recoverable | 437 | 449 | |||||||||
| FG VIEs’ assets | 201 | 212 | |||||||||
| Assets of CIVs | — | 175 | |||||||||
| Other assets | 743 | 701 | |||||||||
| Total assets | $ | 12,635 | $ | 12,176 | |||||||
| Liabilities | |||||||||||
| Unearned premium reserve | $ | 3,613 | $ | 3,625 | |||||||
| Loss and LAE reserve | 310 | 309 | |||||||||
| Future policy benefits for annuity reinsurance contracts | 475 | — | |||||||||
| Policyholder account balances for annuity reinsurance contracts | 263 | — | |||||||||
| Long-term debt | 1,705 | 1,704 | |||||||||
| FG VIEs’ liabilities | 194 | 198 | |||||||||
| Other liabilities | 511 | 551 | |||||||||
| Total liabilities | 7,071 | 6,387 | |||||||||
| Shareholders’ equity | |||||||||||
| Common shares | — | — | |||||||||
| Retained earnings | 5,821 | 5,830 | |||||||||
| Accumulated other comprehensive income (loss) | (280) | (168) | |||||||||
| Deferred equity compensation | 1 | 1 | |||||||||
| Total shareholders’ equity attributable to AGL | 5,542 | 5,663 | |||||||||
| Non-redeemable noncontrolling interest | 22 | 126 | |||||||||
| Total shareholders’ equity | 5,564 | 5,789 | |||||||||
| Total liabilities and shareholders’ equity | $ | 12,635 | $ | 12,176 | |||||||
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 | ||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | |||||||
| Less pre-tax adjustments: | |||||||||||
| Realized gains (losses) on investments | (15) | (16) | |||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | (2) | (2) | |||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (2) | — | |||||||||
| Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld | (2) | — | |||||||||
| Fair value gains (losses) on CCS | 6 | 2 | |||||||||
| Foreign exchange gains (losses) on remeasurement of certain assets and liabilities | (18) | 33 | |||||||||
| Total pre-tax adjustments | (33) | 17 | |||||||||
| Less tax effect on pre-tax adjustments | 6 | (3) | |||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $ | (16) | $ | 2 | |||||||
| Components of adjusted operating income: | |||||||||||
| Segments: | |||||||||||
| Financial Guaranty | $ | 102 | $ | 168 | |||||||
| Annuity Reinsurance | — | — | |||||||||
| Asset Management | 44 | 12 | |||||||||
| Total segments | 146 | 180 | |||||||||
| Corporate division | (15) | (20) | |||||||||
| Other | (16) | 2 | |||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 162 | |||||||
| Per diluted share: | |||||||||||
| Net income (loss) attributable to AGL | $ | 1.91 | $ | 3.44 | |||||||
| Less pre-tax adjustments: | |||||||||||
| Realized gains (losses) on investments | (0.33) | (0.30) | |||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | (0.05) | (0.04) | |||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (0.04) | — | |||||||||
| Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld | (0.04) | — | |||||||||
| Fair value gains (losses) on CCS | 0.13 | 0.03 | |||||||||
| Foreign exchange gains (losses) on remeasurement of certain assets and liabilities | (0.39) | 0.64 | |||||||||
| Total pre-tax adjustments | (0.72) | 0.33 | |||||||||
| Less tax effect on pre-tax adjustments | 0.13 | (0.07) | |||||||||
| Adjusted operating income (loss) | $ | 2.50 | $ | 3.18 | |||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $ | (0.37) | $ | 0.05 | |||||||
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 | As of | |||||||||||||||||||||||||
| March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2024 | |||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 5,663 | $ | 5,590 | $ | 5,495 | ||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,735 | 5,729 | 5,818 | 5,795 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders’ equity | (8) | 8 | 3 | — | ||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 176 | ||||||||||||||||||||||
| Adjusted operating income (loss) | 115 | 162 | ||||||||||||||||||||||||
| Average shareholders’ equity attributable to AGL | $ | 5,603 | $ | 5,543 | ||||||||||||||||||||||
| Average adjusted operating shareholders’ equity | 5,732 | 5,807 | ||||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity | — | 2 | ||||||||||||||||||||||||
GAAP ROE (1) | 6.3 | % | 12.7 | % | ||||||||||||||||||||||
Adjusted operating ROE (1) | 8.0 | % | 11.2 | % | ||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
| March 31, | December 31, | March 31, | December 31, | |||||||||||||||||||||||
| 2026 | 2025 | 2025 | 2024 | |||||||||||||||||||||||
| Reconciliation of shareholders’ equity attributable to AGL to ABV: | ||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 5,663 | $ | 5,590 | $ | 5,495 | ||||||||||||||||||
| Less pre-tax reconciling items: | ||||||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | 52 | 55 | 47 | 49 | ||||||||||||||||||||||
| Fair value gains (losses) on CCS | 28 | 22 | 4 | 2 | ||||||||||||||||||||||
| Unrealized gains (losses) on investment portfolio | (304) | (149) | (313) | (397) | ||||||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (3) | — | — | — | ||||||||||||||||||||||
| Fair value gains (losses) of the embedded derivative in funds withheld | 1 | — | — | — | ||||||||||||||||||||||
| Less taxes | 33 | 6 | 34 | 46 | ||||||||||||||||||||||
| Adjusted operating shareholders' equity | 5,735 | 5,729 | 5,818 | 5,795 | ||||||||||||||||||||||
| Pre-tax reconciling items: | ||||||||||||||||||||||||||
| Less: DAC | 197 | 192 | 181 | 176 | ||||||||||||||||||||||
Plus: Net present value of estimated net future revenue (1) | 190 | 194 | 199 | 202 | ||||||||||||||||||||||
Plus: Net deferred revenues on insurance contracts (1) | 3,358 | 3,367 | 3,415 | 3,473 | ||||||||||||||||||||||
| Plus taxes | (670) | (674) | (689) | (702) | ||||||||||||||||||||||
| ABV | $ | 8,416 | $ | 8,424 | $ | 8,562 | $ | 8,592 | ||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $(2), $2, $0 and $0) | $ | (8) | $ | 8 | $ | 3 | $ | — | ||||||||||||||||||
ABV (net of tax provision (benefit) of $(3), $1, $(1) and $(2)) | $ | (13) | $ | 3 | $ | (4) | $ | (6) | ||||||||||||||||||
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 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 2)
(in millions)
Components of Income for the Three Months Ended March 31, 2026
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||||||||
| Financial Guaranty | Annuity Reinsurance | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | |||||||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 83 | $ | — | $ | — | $ | — | $ | (1) | $ | — | $ | 82 | |||||||||||||||||||||||||||
| Net investment income | 88 | 5 | — | 2 | (3) | — | 92 | ||||||||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | — | (15) | (15) | ||||||||||||||||||||||||||||||||||
| Fair value gains (losses) on derivatives | 3 | 5 | — | — | — | (6) | 2 | ||||||||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | — | 6 | 6 | ||||||||||||||||||||||||||||||||||
| Gains (losses) on FG VIEs | — | — | — | — | (5) | — | (5) | ||||||||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | — | 9 | — | 9 | ||||||||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | (1) | — | — | — | — | (18) | (19) | ||||||||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | 6 | — | — | — | — | — | 6 | ||||||||||||||||||||||||||||||||||
| Asset management revenues | — | — | 118 | — | (24) | — | 94 | ||||||||||||||||||||||||||||||||||
| Other income (loss) | 3 | — | — | 6 | — | — | 9 | ||||||||||||||||||||||||||||||||||
| Total revenues | 182 | 10 | 118 | 8 | (24) | (33) | 261 | ||||||||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) | 17 | — | — | — | — | — | 17 | ||||||||||||||||||||||||||||||||||
| Benefit expense for annuity reinsurance contracts | — | 7 | — | — | — | — | 7 | ||||||||||||||||||||||||||||||||||
| Interest expense | — | — | — | 24 | (2) | — | 22 | ||||||||||||||||||||||||||||||||||
| Amortization of DAC | 5 | — | — | — | — | — | 5 | ||||||||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 54 | 2 | — | 7 | — | — | 63 | ||||||||||||||||||||||||||||||||||
| Asset management expenses | — | — | 68 | — | — | — | 68 | ||||||||||||||||||||||||||||||||||
| Other operating expenses | 31 | 2 | — | 12 | — | — | 45 | ||||||||||||||||||||||||||||||||||
| Total expenses | 107 | 11 | 68 | 43 | (2) | — | 227 | ||||||||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 8 | — | 6 | 19 | (2) | — | 31 | ||||||||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | (19) | (1) | 12 | (1) | (5) | (6) | (20) | ||||||||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | — | (3) | — | (3) | ||||||||||||||||||||||||||||||||||
| Total | $ | 102 | $ | — | $ | 44 | $ | (15) | $ | (16) | $ | (27) | $ | 88 | |||||||||||||||||||||||||||
1) Includes the consolidation of FG VIEs and CIVs and intersegment eliminations.
8
Assured Guaranty Ltd.
Income Components (2 of 2)
(in millions)
Components of Income for the Three Months Ended March 31, 2025
| Segments | Corporate and Other | ||||||||||||||||||||||||||||||||||
| Financial Guaranty | Asset Management | Corporate | Other (1) | Reconciling Items | Consolidated | ||||||||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||||||||
| Net earned premiums | $ | 91 | $ | — | $ | — | $ | — | $ | — | $ | 91 | |||||||||||||||||||||||
| Net investment income | 86 | — | 4 | (3) | — | 87 | |||||||||||||||||||||||||||||
| Net realized investment gains (losses) | — | — | — | — | (16) | (16) | |||||||||||||||||||||||||||||
| Fair value gains (losses) on derivatives | 43 | — | — | — | 61 | 104 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | — | — | — | — | 2 | 2 | |||||||||||||||||||||||||||||
| Gains (losses) on FG VIEs | — | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | — | — | — | 19 | — | 19 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement | 4 | — | — | — | 33 | 37 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on trading securities | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||
| Asset management revenues | — | 6 | — | (1) | — | 5 | |||||||||||||||||||||||||||||
| Other income (loss) | 14 | — | — | — | — | 14 | |||||||||||||||||||||||||||||
| Total revenues | 239 | 6 | 4 | 16 | 80 | 345 | |||||||||||||||||||||||||||||
| Expenses | |||||||||||||||||||||||||||||||||||
Loss and LAE (benefit) | (23) | — | — | — | 63 | 40 | |||||||||||||||||||||||||||||
| Interest expense | — | — | 24 | (2) | — | 22 | |||||||||||||||||||||||||||||
| Amortization of DAC | 5 | — | — | — | — | 5 | |||||||||||||||||||||||||||||
| Employee compensation and benefit expenses | 52 | — | 8 | — | — | 60 | |||||||||||||||||||||||||||||
| Asset management expenses | — | 4 | — | — | — | 4 | |||||||||||||||||||||||||||||
| Other operating expenses | 30 | — | 8 | — | — | 38 | |||||||||||||||||||||||||||||
| Total expenses | 64 | 4 | 40 | (2) | 63 | 169 | |||||||||||||||||||||||||||||
| Equity in earnings (losses) of investees | 30 | 13 | 16 | (6) | — | 53 | |||||||||||||||||||||||||||||
| Less: Provision (benefit) for income taxes | 37 | 3 | — | 1 | 3 | 44 | |||||||||||||||||||||||||||||
| Less: Noncontrolling interest | — | — | — | 9 | — | 9 | |||||||||||||||||||||||||||||
| Total | $ | 168 | $ | 12 | $ | (20) | $ | 2 | $ | 14 | $ | 176 | |||||||||||||||||||||||
1) Includes the consolidation of FG VIEs and CIVs and intersegment eliminations.
9
Assured Guaranty Ltd.
Fixed-Maturity Securities, Short-Term Investments and Cash
As of March 31, 2026
(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) | $ | 1,800 | $ | (13) | 4.00 | % | 3.44 | % | $ | 1,744 | $ | 72 | ||||||||||||||||||||||||||
| U.S. government and agencies | 56 | — | 3.83 | 3.18 | 52 | 2 | ||||||||||||||||||||||||||||||||
Corporate securities (3) | 3,478 | (7) | 4.66 | 3.86 | 3,350 | 162 | ||||||||||||||||||||||||||||||||
| Mortgage-backed securities: | ||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (RMBS) (2)(3) | 694 | (27) | 5.22 | 4.16 | 624 | 36 | ||||||||||||||||||||||||||||||||
| Commercial mortgage-backed securities | 273 | — | 4.79 | 3.81 | 272 | 13 | ||||||||||||||||||||||||||||||||
| Asset-backed securities (ABS) | ||||||||||||||||||||||||||||||||||||||
| Collateralized loan obligation (CLOs) | 469 | (16) | 10.09 | 7.97 | 374 | 47 | ||||||||||||||||||||||||||||||||
Other ABS (3) | 239 | — | 5.38 | 4.25 | 241 | 13 | ||||||||||||||||||||||||||||||||
| Non-U.S. government securities | 232 | — | 2.93 | 2.72 | 218 | 7 | ||||||||||||||||||||||||||||||||
| Total fixed maturity securities, available-for-sale | 7,241 | (63) | 4.87 | 4.02 | 6,875 | 352 | ||||||||||||||||||||||||||||||||
| Short-term investments | 768 | — | 3.34 | 2.69 | 768 | 26 | ||||||||||||||||||||||||||||||||
Cash (4) | 312 | — | — | — | 312 | — | ||||||||||||||||||||||||||||||||
| Total | $ | 8,321 | $ | (63) | 4.72 | % | 3.90 | % | $ | 7,955 | $ | 378 | ||||||||||||||||||||||||||
Fixed maturity securities, trading (6) | $ | 127 | ||||||||||||||||||||||||||||||||||||
Ratings (5): | Fair Value | % of Portfolio | ||||||||||||||||||||||||||||||||||||
| U.S. government and agencies | $ | 52 | 0.8 | % | ||||||||||||||||||||||||||||||||||
| AAA/Aaa | 905 | 13.2 | ||||||||||||||||||||||||||||||||||||
| AA/Aa | 2,276 | 33.1 | ||||||||||||||||||||||||||||||||||||
| A/A | 1,912 | 27.8 | ||||||||||||||||||||||||||||||||||||
| BBB | 1,246 | 18.1 | ||||||||||||||||||||||||||||||||||||
BIG | 289 | 4.2 | ||||||||||||||||||||||||||||||||||||
Not rated (7) | 195 | 2.8 | ||||||||||||||||||||||||||||||||||||
| Total fixed maturity securities, available-for-sale | $ | 6,875 | 100.0 | % | ||||||||||||||||||||||||||||||||||
| Duration of available-for-sale fixed maturity securities and short-term investments (in years): | 4.9 | |||||||||||||||||||||||||||||||||||||
1) Represents annualized investment income based on amortized cost and pre-tax book yields.
2) Includes fair value of $129 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. Corporate securities include taxable securities issued by universities and hospitals.
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 $494 million in par with carrying value of $346 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.
10
Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (1 of 2)
(dollars in millions)
Investment Portfolio and Cash as of March 31, 2026
Insurance Related Subsidiaries (1) | Holding Companies (2) | Other | AGL Consolidated | |||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 6,850 | $ | 25 | $ | — | $ | 6,875 | ||||||||||||||||||
| Fixed-maturity securities, trading | 127 | — | — | 127 | ||||||||||||||||||||||
| Total fixed-maturity securities | 6,977 | 25 | — | 7,002 | ||||||||||||||||||||||
| Short-term investments | 693 | 74 | 1 | 768 | ||||||||||||||||||||||
| Cash | 211 | 61 | 40 | 312 | ||||||||||||||||||||||
| Total short-term investments and cash | 904 | 135 | 41 | 1,080 | ||||||||||||||||||||||
| Other invested assets | ||||||||||||||||||||||||||
| Equity method investments: | ||||||||||||||||||||||||||
| Ownership interest in Sound Point | — | 406 | — | 406 | ||||||||||||||||||||||
| Funds: | ||||||||||||||||||||||||||
| CLOs | 70 | — | — | 70 | ||||||||||||||||||||||
| Private healthcare investing | 161 | 40 | — | 201 | ||||||||||||||||||||||
| Asset-based/specialty finance | 116 | — | — | 116 | ||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | 109 | — | 109 | ||||||||||||||||||||||
| Commercial real estate finance | 101 | — | — | 101 | ||||||||||||||||||||||
| Other | 35 | 50 | — | 85 | ||||||||||||||||||||||
| Total funds | 483 | 199 | — | 682 | ||||||||||||||||||||||
| Other | — | 3 | — | 3 | ||||||||||||||||||||||
| Total equity method investments | 483 | 608 | — | 1,091 | ||||||||||||||||||||||
| Other | 44 | 1 | — | 45 | ||||||||||||||||||||||
| Other invested assets | 527 | 609 | — | 1,136 | ||||||||||||||||||||||
Total investment portfolio and cash (3) | $ | 8,408 | $ | 769 | $ | 41 | $ | 9,218 | ||||||||||||||||||
1) Includes the Company’s U.S., Bermuda, United Kingdom (U.K.) and French insurance subsidiaries and AG Asset Strategies LLC (AGAS).
2) Includes AGL, Assured Guaranty US Holdings Inc. (AGUS), Assured Guaranty Municipal Holdings Inc. (AGMH) and Assured Guaranty UK Holdings Ltd.
3) 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 12% and a quarter-to-date return of (2.3)%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.
11
Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (2 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 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, 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 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.
12
Assured Guaranty Ltd.
Income from Investment Portfolio and CIVs by Segment
(in millions)
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| Financial Guaranty | Annuity Reinsurance | Asset Management | Corporate | Other | Total | ||||||||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 78 | $ | 5 | $ | — | $ | 1 | $ | (1) | $ | 83 | |||||||||||||||||||||||
| Short-term investments | 7 | — | — | 1 | — | 8 | |||||||||||||||||||||||||||||
| Other | 3 | — | — | — | (2) | 1 | |||||||||||||||||||||||||||||
| Total net investment income | $ | 88 | $ | 5 | $ | — | $ | 2 | $ | (3) | $ | 92 | |||||||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | 6 | $ | — | $ | — | $ | — | $ | — | $ | 6 | |||||||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | — | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||||||||
| CLOs | (11) | — | — | — | — | (11) | |||||||||||||||||||||||||||||
| Private healthcare investing | 12 | — | — | 3 | — | 15 | |||||||||||||||||||||||||||||
| Asset-based/specialty finance | 6 | — | — | — | (2) | 4 | |||||||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | — | — | 14 | — | 14 | |||||||||||||||||||||||||||||
| Commercial real estate finance | 1 | — | — | — | — | 1 | |||||||||||||||||||||||||||||
| Other | — | — | — | 2 | — | 2 | |||||||||||||||||||||||||||||
Total funds (1) | 8 | — | — | 19 | (2) | 25 | |||||||||||||||||||||||||||||
| Total equity in earnings (losses) of investees | $ | 8 | $ | — | $ | 6 | $ | 19 | $ | (2) | $ | 31 | |||||||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | — | $ | 9 | $ | 9 | |||||||||||||||||||||||
| Noncontrolling interest | — | — | — | — | (3) | (3) | |||||||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | — | $ | 6 | $ | 6 | |||||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||||
| Financial Guaranty | Asset Management | Corporate | Other | Total | |||||||||||||||||||||||||
| Net investment income | |||||||||||||||||||||||||||||
| Fixed-maturity securities, available-for-sale | $ | 74 | $ | — | $ | — | $ | (1) | $ | 73 | |||||||||||||||||||
| Short-term investments | 9 | — | 4 | — | 13 | ||||||||||||||||||||||||
| Other | 3 | — | — | (2) | 1 | ||||||||||||||||||||||||
| Total net investment income | $ | 86 | $ | — | $ | 4 | $ | (3) | $ | 87 | |||||||||||||||||||
| Fair value gains (losses) on trading securities | $ | 1 | $ | — | $ | — | $ | — | $ | 1 | |||||||||||||||||||
| Equity in earnings (losses) of investees | |||||||||||||||||||||||||||||
| Ownership interest in Sound Point | $ | — | $ | 13 | $ | — | $ | — | $ | 13 | |||||||||||||||||||
| Funds: | |||||||||||||||||||||||||||||
| CLOs | 8 | — | — | — | 8 | ||||||||||||||||||||||||
| Private healthcare investing | 12 | — | — | — | 12 | ||||||||||||||||||||||||
| Asset-based/specialty finance | 9 | — | — | (6) | 3 | ||||||||||||||||||||||||
| Private minority stakes in alternative asset manager | — | — | 14 | — | 14 | ||||||||||||||||||||||||
| Other | 1 | — | 2 | — | 3 | ||||||||||||||||||||||||
Total funds (1) | 30 | — | 16 | (6) | 40 | ||||||||||||||||||||||||
| Total equity in earnings (losses) of investees | $ | 30 | $ | 13 | $ | 16 | $ | (6) | $ | 53 | |||||||||||||||||||
| CIVs | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CIVs | $ | — | $ | — | $ | — | $ | 19 | $ | 19 | |||||||||||||||||||
| Noncontrolling interest | — | — | — | (9) | (9) | ||||||||||||||||||||||||
| Total CIVs | $ | — | $ | — | $ | — | $ | 10 | $ | 10 | |||||||||||||||||||
1) Relates to funds managed by Sound Point and Assured Healthcare Partners LLC, and certain other managers. Investments in funds are reported on a one-quarter lag.
13
Financial Guaranty Segment
14
Assured Guaranty Ltd.
Financial Guaranty Segment Results
(in millions)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Segment revenues | |||||||||||
| Net earned premiums and credit derivative revenues | $ | 86 | $ | 134 | |||||||
| Net investment income | 88 | 86 | |||||||||
| Fair value gains (losses) on trading securities | 6 | 1 | |||||||||
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 2 | 18 | |||||||||
| Total segment revenues | 182 | 239 | |||||||||
| Segment expenses | |||||||||||
| Loss expense (benefit) | 17 | (23) | |||||||||
| Amortization of DAC | 5 | 5 | |||||||||
| Employee compensation and benefit expenses | 54 | 52 | |||||||||
| Other operating expenses | 31 | 30 | |||||||||
| Total segment expenses | 107 | 64 | |||||||||
| Equity in earnings (losses) of investees | 8 | 30 | |||||||||
| Segment adjusted operating income (loss) before income taxes | 83 | 205 | |||||||||
| Less: Provision (benefit) for income taxes | (19) | 37 | |||||||||
| Segment adjusted operating income (loss) | $ | 102 | $ | 168 | |||||||
15
Assured Guaranty Ltd.
Claims-Paying Resources
| As of March 31, 2026 | ||||||||||||||||||||||||||
| AG | AG Re (2) | Eliminations (3) | Total | |||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||
| Claims-paying resources | ||||||||||||||||||||||||||
| Policyholders’ surplus | $ | 3,158 | $ | 698 | $ | 50 | $ | 3,906 | ||||||||||||||||||
| Contingency reserve | 1,539 | — | — | 1,539 | ||||||||||||||||||||||
| Qualified statutory capital | 4,697 | 698 | 50 | 5,445 | ||||||||||||||||||||||
Unearned premium reserve and net deferred ceding commission income (1) | 2,402 | 625 | (50) | 2,977 | ||||||||||||||||||||||
Loss and LAE reserves (1)(4) | — | 46 | — | 46 | ||||||||||||||||||||||
| Total policyholders’ surplus and reserves | 7,099 | 1,369 | — | 8,468 | ||||||||||||||||||||||
Present value of installment premium (1)(8)(9) | 866 | 287 | — | 1,153 | ||||||||||||||||||||||
| CCS | 400 | — | — | 400 | ||||||||||||||||||||||
| Total claims-paying resources | $ | 8,365 | $ | 1,656 | $ | — | $ | 10,021 | ||||||||||||||||||
| AG | AG Re (2) | Eliminations (3) | Total | |||||||||||||||||||||||
| (dollars in billions) | ||||||||||||||||||||||||||
Statutory net exposure (1)(5) | $ | 211.6 | $ | 70.4 | $ | (0.5) | $ | 281.5 | ||||||||||||||||||
Net debt service outstanding (1)(5) | $ | 338.8 | $ | 106.3 | $ | (0.9) | $ | 444.2 | ||||||||||||||||||
| Ratios: | ||||||||||||||||||||||||||
| Net exposure to qualified statutory capital | 45:1 | 101:1 | 52:1 | |||||||||||||||||||||||
Capital ratio (6) | 72:1 | 152:1 | 82:1 | |||||||||||||||||||||||
Financial resources ratio (7) | 41:1 | 64:1 | 44:1 | |||||||||||||||||||||||
| Statutory net exposure to claims-paying resources | 25:1 | 43:1 | 28:1 | |||||||||||||||||||||||
| AG | AG Re | |||||||||||||||||||||||||
| Separate company statutory basis: | (in millions) | |||||||||||||||||||||||||
| Admitted assets | $ | 6,851 | $ | 1,370 | ||||||||||||||||||||||
| Total liabilities | 3,692 | 673 | ||||||||||||||||||||||||
| Loss and LAE reserves (recoverable) | (131) | 46 | ||||||||||||||||||||||||
| Paid in capital stock | 197 | 826 | ||||||||||||||||||||||||
1) The numbers shown for Assured Guaranty Inc (AG) include those of its U.K. and French insurance subsidiaries.
2) Except for contingency reserves, Assured Guaranty Re Ltd. (AG Re) numbers represent the Company’s estimate for 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 $115 million.
5) Net exposure and net debt service outstanding are presented on a statutory basis. Includes $4.0 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 4.5%, 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 the presentation of net debt service and net par outstanding.
16
Assured Guaranty Ltd.
New Business Production
(in millions)
Reconciliation of GWP to PVP
| Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 48 | $ | 8 | $ | 6 | $ | 8 | $ | 70 | $ | 25 | $ | (1) | $ | 7 | $ | 4 | $ | 35 | ||||||||||||||||||||||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (1) | 14 | 8 | 6 | 8 | 36 | 2 | (1) | 6 | 4 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Upfront GWP | 34 | — | — | — | 34 | 23 | — | 1 | — | 24 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 14 | 8 | 7 | 10 | 39 | 2 | 7 | 1 | 5 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total PVP | $ | 48 | $ | 8 | $ | 7 | $ | 10 | $ | 73 | $ | 25 | $ | 7 | $ | 2 | $ | 5 | $ | 39 | ||||||||||||||||||||||||||||||||||||||||||
| Gross par written | $ | 3,957 | $ | 92 | $ | 1,534 | $ | 1,928 | $ | 7,511 | $ | 4,269 | $ | 197 | $ | 121 | $ | 415 | $ | 5,002 | ||||||||||||||||||||||||||||||||||||||||||
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.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
17
Assured Guaranty Ltd.
Gross Par Written
(in millions)
Gross Par Written by Asset Type
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Sector: | |||||||||||
| U.S. public finance: | |||||||||||
| General obligation | $ | 1,843 | $ | 1,568 | |||||||
| Healthcare | 823 | 306 | |||||||||
| Municipal utilities | 513 | 933 | |||||||||
| Infrastructure finance | 444 | 87 | |||||||||
| Tax backed | 300 | 685 | |||||||||
| Higher education | 21 | 462 | |||||||||
| Transportation | 13 | 228 | |||||||||
| Total U.S. public finance | 3,957 | 4,269 | |||||||||
| Non-U.S. public finance: | |||||||||||
| Infrastructure finance | 59 | — | |||||||||
| Sovereign and sub-sovereign | 33 | 57 | |||||||||
| Regulated utilities | — | 140 | |||||||||
| Total non-U.S. public finance | 92 | 197 | |||||||||
| Total public finance | 4,049 | 4,466 | |||||||||
| U.S. structured finance: | |||||||||||
| Fund finance facilities | 1,214 | 92 | |||||||||
| Insurance securitizations | 320 | — | |||||||||
| Pooled corporate obligations | — | 17 | |||||||||
| Other structured finance | — | 12 | |||||||||
| Total U.S. structured finance | 1,534 | 121 | |||||||||
| Non-U.S. structured finance: | |||||||||||
| Fund finance facilities | 1,928 | 415 | |||||||||
| Total non-U.S. structured finance | 1,928 | 415 | |||||||||
| Total structured finance | 3,462 | 536 | |||||||||
| Total gross par written | $ | 7,511 | $ | 5,002 | |||||||
Please refer to the Glossary for a description of sectors.
18
Assured Guaranty Ltd.
New Business Production by Quarter
(in millions)
| | ||||||||||||||||||||||||||||||||
| 1Q-25 | 2Q-25 | 3Q-25 | 4Q-25 | 1Q-26 | ||||||||||||||||||||||||||||
| PVP: | ||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 25 | $ | 49 | $ | 78 | $ | 54 | $ | 48 | ||||||||||||||||||||||
| Public finance - non-U.S. | 7 | 7 | 5 | 18 | 8 | |||||||||||||||||||||||||||
| Structured finance - U.S. | 2 | 1 | — | 10 | 7 | |||||||||||||||||||||||||||
| Structured finance - non-U.S. | 5 | 7 | 8 | 10 | 10 | |||||||||||||||||||||||||||
Total PVP (1) | $ | 39 | $ | 64 | $ | 91 | $ | 92 | $ | 73 | ||||||||||||||||||||||
| Reconciliation of GWP to PVP: | ||||||||||||||||||||||||||||||||
| Total GWP | $ | 35 | $ | 85 | $ | 75 | $ | 61 | $ | 70 | ||||||||||||||||||||||
| Less: Installment GWP and other GAAP adjustments | 11 | 43 | 29 | 22 | 36 | |||||||||||||||||||||||||||
| Upfront GWP | 24 | 42 | 46 | 39 | 34 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (2) | 15 | 22 | 45 | 53 | 39 | |||||||||||||||||||||||||||
| Total PVP | $ | 39 | $ | 64 | $ | 91 | $ | 92 | $ | 73 | ||||||||||||||||||||||
| Gross par written: | ||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 4,269 | $ | 8,861 | $ | 7,851 | $ | 6,467 | $ | 3,957 | ||||||||||||||||||||||
| Public finance - non-U.S. | 197 | 275 | 243 | 670 | 92 | |||||||||||||||||||||||||||
| Structured finance - U.S. | 121 | 5 | 42 | 335 | 1,534 | |||||||||||||||||||||||||||
Structured finance - non-U.S. (1) | 415 | 1,255 | 1,005 | 905 | 1,928 | |||||||||||||||||||||||||||
| Total | $ | 5,002 | $ | 10,396 | $ | 9,141 | $ | 8,377 | $ | 7,511 | ||||||||||||||||||||||
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.
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.
19
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) | ||||||||||||||||||||||||||||||||||||||||
| 2026 (as of March 31) | $ | 441.5 | |||||||||||||||||||||||||||||||||||||||
| 2026 Q2 | $ | 6.1 | 435.4 | $ | 81 | $ | 10 | $ | 1 | $ | 2 | ||||||||||||||||||||||||||||||
| 2026 Q3 | 7.9 | 427.5 | 79 | 10 | 1 | 2 | |||||||||||||||||||||||||||||||||||
| 2026 Q4 | 6.4 | 421.1 | 77 | 10 | 1 | 2 | |||||||||||||||||||||||||||||||||||
| 2027 | 23.3 | 397.8 | 289 | 37 | 4 | 9 | |||||||||||||||||||||||||||||||||||
| 2028 | 22.4 | 375.4 | 270 | 34 | 2 | 8 | |||||||||||||||||||||||||||||||||||
| 2029 | 22.9 | 352.5 | 250 | 32 | 2 | 7 | |||||||||||||||||||||||||||||||||||
| 2030 | 23.4 | 329.1 | 232 | 30 | 2 | 6 | |||||||||||||||||||||||||||||||||||
| 2026-2030 | 112.4 | 329.1 | 1,278 | 163 | 13 | 36 | |||||||||||||||||||||||||||||||||||
| 2031-2035 | 102.1 | 227.0 | 902 | 128 | 9 | 24 | |||||||||||||||||||||||||||||||||||
| 2036-2040 | 78.9 | 148.1 | 584 | 92 | 3 | 18 | |||||||||||||||||||||||||||||||||||
| 2041-2045 | 55.9 | 92.2 | 387 | 60 | — | 12 | |||||||||||||||||||||||||||||||||||
| 2046-2050 | 44.0 | 48.2 | 248 | 33 | — | 4 | |||||||||||||||||||||||||||||||||||
| 2051-2055 | 29.4 | 18.8 | 120 | 14 | — | — | |||||||||||||||||||||||||||||||||||
| After 2055 | 18.8 | — | 86 | 10 | — | — | |||||||||||||||||||||||||||||||||||
| Total | $ | 441.5 | $ | 3,605 | $ | 500 | $ | 25 | $ | 94 | |||||||||||||||||||||||||||||||
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 | $ | 3,605 | $ | 24 | ||||||||||
| Specialty | 4 | — | ||||||||||||
| Net deferred premium revenue | 3,609 | 24 | ||||||||||||
| Contra-paid | (22) | (2) | ||||||||||||
| Net unearned premium reserve | $ | 3,587 | $ | 22 | ||||||||||
1) Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of March 31, 2026. 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 23, 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).
20
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 March 31, 2026
| Net Expected Loss to be Paid (Recovered) as of December 31, 2025 | Net Economic Loss Development (Benefit) During 1Q-26 | Net (Paid) Recovered Losses During 1Q-26 | Net Expected Loss to be Paid (Recovered) as of March 31, 2026 | |||||||||||||||||||||||
| Public Finance: | ||||||||||||||||||||||||||
| U.S. public finance | $ | (31) | $ | 45 | $ | (11) | $ | 3 | ||||||||||||||||||
| Non-U.S. public finance | 126 | 2 | — | 128 | ||||||||||||||||||||||
| Public Finance | 95 | 47 | (11) | 131 | ||||||||||||||||||||||
| Structured Finance: | ||||||||||||||||||||||||||
| U.S. RMBS | (54) | (2) | 8 | (48) | ||||||||||||||||||||||
| Other structured finance | 60 | (1) | (1) | 58 | ||||||||||||||||||||||
| Structured Finance | 6 | (3) | 7 | 10 | ||||||||||||||||||||||
| Total | $ | 101 | $ | 44 | $ | (4) | $ | 141 | ||||||||||||||||||
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.
21
Assured Guaranty Ltd.
Loss Measures
| As of March 31, 2026 | Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||||
| 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) | Financial Guaranty Segment Loss and LAE (3) | |||||||||||||||||||||||||||||||
| (in billions) | (in millions) | ||||||||||||||||||||||||||||||||||
| Public finance: | |||||||||||||||||||||||||||||||||||
| U.S. public finance | $ | 3.46 | $ | 45 | $ | 12 | $ | 12 | $ | 12 | |||||||||||||||||||||||||
| Non-U.S. public finance | 4.36 | 2 | 7 | 7 | 7 | ||||||||||||||||||||||||||||||
| Public finance | 7.82 | 47 | 19 | 19 | 19 | ||||||||||||||||||||||||||||||
| Structured finance: | |||||||||||||||||||||||||||||||||||
| U.S. RMBS | 0.75 | (2) | (1) | (1) | (1) | ||||||||||||||||||||||||||||||
| Other structured finance | 0.07 | (1) | (1) | (1) | (1) | ||||||||||||||||||||||||||||||
| Structured finance | 0.82 | (3) | (2) | (2) | (2) | ||||||||||||||||||||||||||||||
| Total | $ | 8.64 | $ | 44 | $ | 17 | $ | 17 | $ | 17 | |||||||||||||||||||||||||
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.
22
Assured Guaranty Ltd.
Net Expected Loss to be Expensed (1)
As of March 31, 2026
(dollars in millions)
| GAAP | ||||||||
| 2026 Q2 | $ | 4 | ||||||
| 2026 Q3 | 3 | |||||||
| 2026 Q4 | 3 | |||||||
| 2027 | 18 | |||||||
| 2028 | 18 | |||||||
| 2029 | 18 | |||||||
| 2030 | 16 | |||||||
| 2026-2030 | 80 | |||||||
| 2031-2035 | 68 | |||||||
| 2036-2040 | 42 | |||||||
| 2041-2045 | 34 | |||||||
| 2046-2050 | 32 | |||||||
| 2051-2055 | 16 | |||||||
| After 2055 | 3 | |||||||
Total expected present value of net expected loss to be expensed (2) | 275 | |||||||
| Future expected accretion | 19 | |||||||
| Total expected future loss and LAE | $ | 294 | ||||||
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 5.68%.
2) Excludes $18 million related to FG VIEs, which are eliminated in consolidation.
23
Assured Guaranty Ltd.
Financial Guaranty Profile (1 of 3)
(in billions)
Net Par Outstanding by Asset Type
| As of March 31, 2026 | As of December 31, 2025 | |||||||||||||
| U.S. public finance: | ||||||||||||||
| General obligation | $ | 83.1 | $ | 82.3 | ||||||||||
| Tax backed | 36.0 | 36.1 | ||||||||||||
| Municipal utilities | 31.6 | 31.4 | ||||||||||||
| Transportation | 27.5 | 23.5 | ||||||||||||
| Healthcare | 17.3 | 16.8 | ||||||||||||
| Infrastructure finance | 11.2 | 15.1 | ||||||||||||
| Higher education | 8.3 | 8.4 | ||||||||||||
| Renewable energy | 0.2 | 0.2 | ||||||||||||
| Other public finance | 1.2 | 1.2 | ||||||||||||
| Total U.S. public finance | 216.4 | 215.0 | ||||||||||||
| Non-U.S. public finance: | ||||||||||||||
| Regulated utilities | 23.0 | 23.5 | ||||||||||||
| Infrastructure finance | 15.7 | 16.0 | ||||||||||||
| Sovereign and sub-sovereign | 8.1 | 8.3 | ||||||||||||
| Renewable energy | 1.6 | 1.7 | ||||||||||||
| Pooled infrastructure | 1.1 | 1.1 | ||||||||||||
| Total non-U.S. public finance | 49.5 | 50.6 | ||||||||||||
| Total public finance | 265.9 | 265.6 | ||||||||||||
| U.S. structured finance: | ||||||||||||||
| Insurance reserve financings and securitizations | 4.4 | 4.4 | ||||||||||||
| RMBS | 1.3 | 1.4 | ||||||||||||
| Fund finance facilities | 0.8 | 0.1 | ||||||||||||
| Pooled corporate obligations | 0.6 | 0.6 | ||||||||||||
| Financial products | 0.4 | 0.4 | ||||||||||||
| Other structured finance | 0.8 | 1.0 | ||||||||||||
| Total U.S. structured finance | 8.3 | 7.9 | ||||||||||||
| Non-U.S. structured finance: | ||||||||||||||
| Fund finance facilities | 2.5 | 1.6 | ||||||||||||
| Pooled corporate obligations | 0.4 | 0.5 | ||||||||||||
| RMBS | 0.2 | 0.2 | ||||||||||||
| Other structured finance | 1.3 | 1.3 | ||||||||||||
| Total non-U.S. structured finance | 4.4 | 3.6 | ||||||||||||
| Total structured finance | 12.7 | 11.5 | ||||||||||||
| Total net par outstanding | $ | 278.6 | $ | 277.1 | ||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.
24
Assured Guaranty Ltd.
Financial Guaranty Profile (2 of 3)
As of March 31, 2026
(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 | 3.6 | % | $ | 0.5 | 5.3 | % | $ | 0.4 | 10.1 | % | $ | 2.7 | 1.0 | % | ||||||||||||||||||||||||||||||||||||||||||
| AA | 18.6 | 8.6 | 1.4 | 2.9 | 5.4 | 64.7 | 0.6 | 13.1 | 26.0 | 9.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| A | 126.3 | 58.3 | 11.4 | 23.0 | 1.0 | 13.1 | 3.4 | 76.6 | 142.1 | 51.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| BBB | 68.1 | 31.5 | 30.5 | 61.7 | 0.6 | 7.0 | — | 0.2 | 99.2 | 35.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| BIG | 3.4 | 1.6 | 4.4 | 8.8 | 0.8 | 9.9 | — | — | 8.6 | 3.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Par Outstanding (1) | $ | 216.4 | 100.0 | % | $ | 49.5 | 100.0 | % | $ | 8.3 | 100.0 | % | $ | 4.4 | 100.0 | % | $ | 278.6 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
1) As of March 31, 2026, 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.
25
Assured Guaranty Ltd.
Financial Guaranty Profile (3 of 3)
As of March 31, 2026
(dollars in billions)
Geographic Distribution of Financial Guaranty Portfolio
| Net Par Outstanding | % of Total | |||||||||||||
| U.S.: | ||||||||||||||
| U.S. public finance: | ||||||||||||||
| California | $ | 36.9 | 13.3 | % | ||||||||||
| Texas | 28.4 | 10.2 | ||||||||||||
| New York | 21.0 | 7.5 | ||||||||||||
| Pennsylvania | 18.7 | 6.7 | ||||||||||||
| Florida | 13.1 | 4.7 | ||||||||||||
| Illinois | 13.1 | 4.7 | ||||||||||||
| New Jersey | 7.5 | 2.7 | ||||||||||||
| Colorado | 5.3 | 1.9 | ||||||||||||
| Louisiana | 5.3 | 1.9 | ||||||||||||
| Michigan | 5.2 | 1.9 | ||||||||||||
| Other | 61.9 | 22.2 | ||||||||||||
| Total U.S. public finance | 216.4 | 77.7 | ||||||||||||
| U.S. structured finance (multiple states) | 8.3 | 3.0 | ||||||||||||
| Total U.S. | 224.7 | 80.7 | ||||||||||||
| Non-U.S.: | ||||||||||||||
| United Kingdom | 41.1 | 14.8 | ||||||||||||
| Australia | 2.0 | 0.7 | ||||||||||||
| France | 1.9 | 0.7 | ||||||||||||
| Spain | 1.8 | 0.6 | ||||||||||||
| Canada | 1.2 | 0.4 | ||||||||||||
| Other | 5.9 | 2.1 | ||||||||||||
| Total non-U.S. | 53.9 | 19.3 | ||||||||||||
| Total net par outstanding | $ | 278.6 | 100.0 | % | ||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding.
26
Assured Guaranty Ltd.
Specialty Business
| As of March 31, 2026 | As of December 31, 2025 | |||||||||||||||||||||||||
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 (2) | 1.5 | 1.2 | 1.5 | 1.2 | ||||||||||||||||||||||
| Pooled corporate obligations | 0.7 | 0.7 | 0.9 | 0.9 | ||||||||||||||||||||||
| Aircraft residual value insurance (RVI) | 0.2 | 0.1 | 0.2 | 0.1 | ||||||||||||||||||||||
1) All of the exposure was rated investment grade except for $5 million of gross and net exposure of RVI that was rated BIG as of December 31, 2025.
2) Insurance reserve financings and securitizations exposure is projected to reach $1.6 billion gross and $1.3 billion net in 2027.
Please refer to the Glossary for a description of sectors.
27
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 | |||||||||||||||||||||||||||||||||
| 2026 (as of March 31) | $ | 265.9 | $ | 12.7 | ||||||||||||||||||||||||||||||||||
| 2026 Q2 | $ | 1.9 | $ | 0.8 | $ | 2.7 | 263.2 | $ | 0.6 | 12.1 | ||||||||||||||||||||||||||||
| 2026 Q3 | 3.2 | 0.7 | 3.9 | 259.3 | 1.0 | 11.1 | ||||||||||||||||||||||||||||||||
| 2026 Q4 | 2.6 | 0.5 | 3.1 | 256.2 | 0.5 | 10.6 | ||||||||||||||||||||||||||||||||
| 2027 | 8.7 | 1.0 | 9.7 | 246.5 | 2.3 | 8.3 | ||||||||||||||||||||||||||||||||
| 2028 | 9.0 | 1.1 | 10.1 | 236.4 | 1.5 | 6.8 | ||||||||||||||||||||||||||||||||
| 2029 | 9.2 | 1.9 | 11.1 | 225.3 | 1.4 | 5.4 | ||||||||||||||||||||||||||||||||
| 2030 | 9.7 | 3.5 | 13.2 | 212.1 | 0.5 | 4.9 | ||||||||||||||||||||||||||||||||
| 2026-2030 | 44.3 | 9.5 | 53.8 | 212.1 | 7.8 | 4.9 | ||||||||||||||||||||||||||||||||
| 2031-2035 | 47.2 | 11.0 | 58.2 | 153.9 | 2.9 | 2.0 | ||||||||||||||||||||||||||||||||
| 2036-2040 | 40.2 | 8.3 | 48.5 | 105.4 | 1.3 | 0.7 | ||||||||||||||||||||||||||||||||
| 2041-2045 | 33.2 | 2.5 | 35.7 | 69.7 | 0.2 | 0.5 | ||||||||||||||||||||||||||||||||
| 2046-2050 | 28.2 | 3.0 | 31.2 | 38.5 | 0.5 | — | ||||||||||||||||||||||||||||||||
| 2051-2055 | 17.1 | 6.3 | 23.4 | 15.1 | — | — | ||||||||||||||||||||||||||||||||
| After 2055 | 6.2 | 8.9 | 15.1 | — | — | — | ||||||||||||||||||||||||||||||||
| Total | $ | 216.4 | $ | 49.5 | $ | 265.9 | $ | 12.7 | ||||||||||||||||||||||||||||||
Net par outstanding (end of period)
| 1Q-25 | 2Q-25 | 3Q-25 | 4Q-25 | 1Q-26 | ||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 202.4 | $ | 208.7 | $ | 212.1 | $ | 215.0 | $ | 216.4 | ||||||||||||||||||||||
| Public finance - non-U.S. | 50.1 | 53.1 | 51.3 | 50.6 | 49.5 | |||||||||||||||||||||||||||
| Structured finance - U.S. | 8.4 | 8.2 | 8.1 | 7.9 | 8.3 | |||||||||||||||||||||||||||
| Structured finance - non-U.S. | 2.7 | 2.8 | 3.4 | 3.6 | 4.4 | |||||||||||||||||||||||||||
| Net par outstanding | $ | 263.6 | $ | 272.8 | $ | 274.9 | $ | 277.1 | $ | 278.6 | ||||||||||||||||||||||
Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
28
Assured Guaranty Ltd.
Puerto Rico Profile
As of March 31, 2026
(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 (April 1 - June 30) | $ | — | $ | 2 | |||||||
| 2026 (July 1 - September 30) | 106 | 114 | |||||||||
| 2026 (October 1 - December 31) | — | 1 | |||||||||
| Subtotal 2026 | 106 | 117 | |||||||||
| 2027 | 106 | 122 | |||||||||
| 2028 | 68 | 80 | |||||||||
| 2029 | 39 | 47 | |||||||||
| 2030 | 44 | 52 | |||||||||
| 2031-2037 | 101 | 110 | |||||||||
| Total | $ | 464 | $ | 528 | |||||||
29
Assured Guaranty Ltd.
Direct Pooled Corporate Obligations Profile
As of March 31, 2026
(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 | $ | 0.52 | 50.3 | % | 40.5% | 48.1% | ||||||||||||||||||||
| AA | 0.28 | 27.3 | 61.5% | 40.0% | ||||||||||||||||||||||
| A | 0.10 | 9.4 | 42.6% | 51.4% | ||||||||||||||||||||||
| BBB | 0.13 | 13.0 | 34.2% | 36.1% | ||||||||||||||||||||||
| Total exposures | $ | 1.03 | 100.0 | % | 45.6% | 44.6% | ||||||||||||||||||||
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 | 21.3 | % | 43.4% | 68.4% | 10 | |||||||||||||||||||||||||
| CLOs | 0.81 | 78.7 | 46.2% | 38.2% | 10 | |||||||||||||||||||||||||||
| Total exposures | $ | 1.03 | 100.0 | % | 45.6% | 44.6% | 20 | |||||||||||||||||||||||||
Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.
30
Assured Guaranty Ltd.
Below Investment Grade Exposures (1 of 3)
(in billions)
BIG Exposures by Asset Exposure Type
| As of | ||||||||||||||
| March 31, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| U.S. public finance: | ||||||||||||||
| Transportation | $ | 1.23 | $ | 0.10 | ||||||||||
| Healthcare | 0.92 | 0.92 | ||||||||||||
| Municipal utilities | 0.75 | 0.75 | ||||||||||||
| General obligation | 0.23 | 0.24 | ||||||||||||
| Tax backed | 0.10 | 0.10 | ||||||||||||
| Infrastructure finance | 0.08 | 1.21 | ||||||||||||
| Other public finance | 0.15 | 0.16 | ||||||||||||
| Total U.S. public finance | 3.46 | 3.48 | ||||||||||||
| Non-U.S. public finance: | ||||||||||||||
| Regulated utilities | 2.37 | 2.40 | ||||||||||||
| Infrastructure finance | 1.11 | 1.14 | ||||||||||||
| Renewable energy | 0.88 | 0.90 | ||||||||||||
| Total non-U.S. public finance | 4.36 | 4.44 | ||||||||||||
| Total public finance | 7.82 | 7.92 | ||||||||||||
| U.S. structured finance: | ||||||||||||||
| RMBS | 0.75 | 0.77 | ||||||||||||
| Insurance reserve financings and securitizations | 0.04 | 0.04 | ||||||||||||
| Other structured finance | 0.03 | 0.03 | ||||||||||||
| Total U.S. structured finance | 0.82 | 0.84 | ||||||||||||
| Non-U.S. structured finance: | ||||||||||||||
| Total non-U.S. structured finance | — | — | ||||||||||||
| Total structured finance | 0.82 | 0.84 | ||||||||||||
| Total BIG net par outstanding | $ | 8.64 | $ | 8.76 | ||||||||||
Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.
31
Assured Guaranty Ltd.
Below Investment Grade Exposures (2 of 3)
(dollars in billions)
Net Par Outstanding by BIG Surveillance Category (1)
| As of | ||||||||||||||
| March 31, | December 31, | |||||||||||||
| 2026 | 2025 | |||||||||||||
| BIG Category 1 | ||||||||||||||
| U.S. public finance | $ | 2.41 | $ | 2.48 | ||||||||||
| Non-U.S. public finance | 1.04 | 1.09 | ||||||||||||
| U.S. structured finance | 0.18 | 0.17 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 1 | 3.63 | 3.74 | ||||||||||||
| BIG Category 2 | ||||||||||||||
| U.S. public finance | 0.47 | 0.42 | ||||||||||||
| Non-U.S. public finance | 3.32 | 3.35 | ||||||||||||
| U.S. structured finance | 0.04 | 0.04 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 2 | 3.83 | 3.81 | ||||||||||||
| BIG Category 3 | ||||||||||||||
| U.S. public finance | 0.58 | 0.58 | ||||||||||||
| Non-U.S. public finance | — | — | ||||||||||||
| U.S. structured finance | 0.60 | 0.63 | ||||||||||||
| Non-U.S. structured finance | — | — | ||||||||||||
| Total BIG Category 3 | 1.18 | 1.21 | ||||||||||||
| BIG Total | $ | 8.64 | $ | 8.76 | ||||||||||
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.
32
Assured Guaranty Ltd.
Below Investment Grade Exposures (3 of 3)
As of March 31, 2026
(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 | B | |||||||||||||||||
| 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 | 70 | B | ||||||||||||||||||
| San Jacinto River Authority (GRP Project), Texas | 53 | BB+ | ||||||||||||||||||
| Indiana University of Pennsylvania, Pennsylvania | 50 | CCC | ||||||||||||||||||
| Total U.S. public finance | 2,981 | |||||||||||||||||||
| Non-U.S. public finance: | ||||||||||||||||||||
| Thames Water Utilities Finance Plc | 2,376 | B | ||||||||||||||||||
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | 552 | B+ | ||||||||||||||||||
| University of Essex, United Kingdom | 386 | BB | ||||||||||||||||||
| Q Energy - Phase II - Pride Investments, S.A. | 269 | BB+ | ||||||||||||||||||
| Hypersol Solar Inversiones, S.A.U. | 259 | BB | ||||||||||||||||||
| Q Energy - Phase III - FSL Issuer, S.A.U. | 246 | B+ | ||||||||||||||||||
| Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc | 108 | BB+ | ||||||||||||||||||
| Q Energy - Phase IV - Anselma Issuer, S.A. | 103 | BB+ | ||||||||||||||||||
| Road Management Services PLC (A13 Highway) | 61 | BB- | ||||||||||||||||||
| Total non-U.S. public finance | 4,360 | |||||||||||||||||||
| Total public finance | 7,341 | |||||||||||||||||||
| U.S. structured finance: | ||||||||||||||||||||
| RMBS: | ||||||||||||||||||||
| Option One Mortgage Loan Trust 2007-Hl1 | 94 | CCC | 20.7% | |||||||||||||||||
| Argent Securities Inc. 2005-W4 | 93 | CCC | 8.4% | |||||||||||||||||
| Option One 2007-FXD2 | 87 | BB | 15.6% | |||||||||||||||||
| Total RMBS-U.S. structured finance | 274 | |||||||||||||||||||
| Total non-U.S. structured finance | — | |||||||||||||||||||
| Total structured finance | 274 | |||||||||||||||||||
| Total | $ | 7,615 | ||||||||||||||||||
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.
33
Assured Guaranty Ltd.
Largest Exposures by Sector (1 of 3)
As of March 31, 2026
(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) | 1,807 | BBB | ||||||||||||
| Metro Washington Airports Authority (Dulles Toll Road) | 1,635 | BBB+ | ||||||||||||
| New Jersey (State of) | 1,538 | BBB | ||||||||||||
| Alameda Corridor Transportation Authority, California | 1,441 | BBB | ||||||||||||
| Lower Colorado River Authority (LCRA Transmission Services Corporation Project) | 1,333 | A | ||||||||||||
| South Carolina Public Service Authority - Santee Cooper | 1,330 | A- | ||||||||||||
| New York Power Authority | 1,306 | AA- | ||||||||||||
| New York Metropolitan Transportation Authority | 1,306 | A- | ||||||||||||
| Foothill/Eastern Transportation Corridor Agency, California | 1,286 | A- | ||||||||||||
| North Texas Tollway Authority | 1,243 | A+ | ||||||||||||
| CommonSpirit Health, Illinois | 1,231 | A- | ||||||||||||
| Brightline Trains Florida LLC | 1,133 | B | ||||||||||||
| Philadelphia Water & Wastewater, Pennsylvania | 1,133 | A | ||||||||||||
| Montefiore Medical Center, New York | 1,127 | BBB- | ||||||||||||
| Pittsburgh International Airport, Pennsylvania | 1,049 | A- | ||||||||||||
| Central Florida Expressway Authority, Florida | 1,048 | A+ | ||||||||||||
| North Carolina Turnpike Authority | 1,046 | BBB | ||||||||||||
| San Joaquin Hills Transportation, California | 955 | BBB+ | ||||||||||||
| JFK Terminal 6, New York | 927 | BBB- | ||||||||||||
| ProMedica Healthcare Obligated Group, Ohio | 919 | BBB- | ||||||||||||
| Yankee Stadium LLC New York City Industrial Development Authority | 907 | BBB | ||||||||||||
| Metropolitan Pier and Exposition Authority, Illinois | 901 | BBB- | ||||||||||||
| Pittsburgh Water & Sewer, Pennsylvania | 900 | A- | ||||||||||||
| Thomas Jefferson University | 900 | A- | ||||||||||||
| Municipal Electric Authority of Georgia | 882 | BBB+ | ||||||||||||
| San Diego Family Housing, LLC | 854 | AA | ||||||||||||
| Chicago Water, Illinois | 843 | BBB+ | ||||||||||||
| Sacramento City Unified School District, California | 837 | BBB- | ||||||||||||
| Philadelphia School District, Pennsylvania | 832 | A- | ||||||||||||
| Clark County School District, Nevada | 812 | A- | ||||||||||||
| Harris County - Houston Sports Authority, Texas | 811 | A- | ||||||||||||
| Maine (State of) | 795 | A | ||||||||||||
| Houston Airport System, Texas | 767 | A | ||||||||||||
| Dade County Seaport, Florida | 758 | A- | ||||||||||||
| Alabama Highway Authority | 730 | AA- | ||||||||||||
| Beth Israel Lahey Health, Massachusetts | 709 | A- | ||||||||||||
| Illinois (State of) | 679 | BBB | ||||||||||||
| California (State of) | 672 | AA- | ||||||||||||
| Chicago Public Schools, Illinois | 657 | BBB- | ||||||||||||
| Downtown Revitalization Public Infrastructure District (SEG Redevelopment Project), Utah | 650 | A+ | ||||||||||||
| Chicago-O'Hare International Airport, Illinois | 645 | A- | ||||||||||||
| Nassau County, New York | 644 | AA- | ||||||||||||
| Tucson (City of), Arizona | 642 | A+ | ||||||||||||
| Palomar Health | 635 | B- | ||||||||||||
| New York Transportation Development Corporation (LaGuardia Airport Terminal Redevelopment Project) | 628 | BBB | ||||||||||||
| Anaheim (City of), California | 622 | A- | ||||||||||||
| Massachusetts (Commonwealth of) Water Resources | 605 | AA | ||||||||||||
| Chicago (City of) Wastewater Transmission, Illinois | 600 | BBB+ | ||||||||||||
| Pennsylvania Turnpike Commission | 599 | A- | ||||||||||||
| Total top 50 U.S. public finance exposures | $ | 48,518 | ||||||||||||
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
34
Assured Guaranty Ltd.
Largest Exposures by Sector (2 of 3)
As of March 31, 2026
(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 | 393 | AA- | ||||||||||||
| Private Middle Market CLO | 194 | AA | ||||||||||||
| Private US Insurance Securitization | 181 | A | ||||||||||||
| Private Fund Finance Transaction | 174 | A+ | ||||||||||||
| Private Fund Finance Transaction | 130 | A | ||||||||||||
| Private Middle Market CLO | 125 | BBB+ | ||||||||||||
| Private US Insurance Securitization | 113 | AA | ||||||||||||
| Private Balloon Note Guarantee | 100 | A | ||||||||||||
| Option One Mortgage Loan Trust 2007-Hl1 | 94 | CCC | ||||||||||||
| Argent Securities Inc. 2005-W4 | 93 | CCC | ||||||||||||
| CWABS 2007-4 | 91 | BBB+ | ||||||||||||
| Private Fund Finance Transaction | 89 | A | ||||||||||||
| Option One 2007-FXD2 | 87 | BB | ||||||||||||
| Private Fund Finance Transaction | 84 | A- | ||||||||||||
| SLM Student Loan Trust 2007-A | 83 | AA | ||||||||||||
| Private Fund Finance Transaction | 83 | AA- | ||||||||||||
| Private Fund Finance Transaction | 76 | A+ | ||||||||||||
| CAPCO - Excess SIPC Excess of Loss Reinsurance | 63 | BBB | ||||||||||||
| Private Balloon Note Guarantee | 59 | BBB | ||||||||||||
| Private Balloon Note Guarantee | 50 | A | ||||||||||||
| Private Fund Finance Transaction | 49 | AA- | ||||||||||||
| Total top 25 U.S. structured finance exposures | $ | 6,038 | ||||||||||||
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.
35
Assured Guaranty Ltd.
Largest Exposures by Sector (3 of 3)
As of March 31, 2026
(in millions)
50 Largest Non-U.S. Exposures by Revenue Source
| Credit Name: | Country | Net Par Outstanding | Internal Rating | ||||||||||||||
| Southern Water Services Limited | United Kingdom | $ | 2,829 | BBB- | |||||||||||||
| Thames Water Utilities Finance Plc | United Kingdom | 2,376 | B | ||||||||||||||
| Dwr Cymru Financing Limited | United Kingdom | 2,036 | A- | ||||||||||||||
| Anglian Water Services Financing PLC | United Kingdom | 1,900 | BBB+ | ||||||||||||||
| National Grid Gas plc | United Kingdom | 1,848 | A- | ||||||||||||||
| Channel Link Enterprises Finance PLC | France, United Kingdom | 1,298 | BBB | ||||||||||||||
| Yorkshire Water Services Finance Plc | United Kingdom | 1,166 | BBB | ||||||||||||||
| Severn Trent Water Utilities Finance Plc | United Kingdom | 1,068 | BBB+ | ||||||||||||||
| Capital Hospitals (Issuer) PLC | United Kingdom | 1,031 | BBB- | ||||||||||||||
| United Utilities Water PLC | United Kingdom | 970 | BBB+ | ||||||||||||||
| Southern Gas Networks PLC | United Kingdom | 970 | BBB+ | ||||||||||||||
| British Broadcasting Corporation (BBC) | United Kingdom | 916 | A+ | ||||||||||||||
| Quebec Province | Canada | 912 | A+ | ||||||||||||||
| Private Other Structured Finance Transaction | Australia | 899 | A- | ||||||||||||||
| Wessex Water Services Finance plc | United Kingdom | 827 | BBB+ | ||||||||||||||
| National Grid Company plc | United Kingdom | 821 | BBB+ | ||||||||||||||
| South West Water UK | United Kingdom | 773 | BBB+ | ||||||||||||||
| Verdun Participations 2 S.A.S. | France | 728 | BBB- | ||||||||||||||
| Aspire Defence Finance plc | United Kingdom | 717 | BBB+ | ||||||||||||||
| South East Water | United Kingdom | 700 | BBB- | ||||||||||||||
| Verbund, Lease and Sublease of Hydro-Electric Equipment | Austria | 697 | AAA | ||||||||||||||
| Heathrow Funding Limited | United Kingdom | 657 | BBB | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 568 | A+ | ||||||||||||||
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | United Kingdom | 552 | B+ | ||||||||||||||
| University of Sussex | United Kingdom | 550 | BBB | ||||||||||||||
| NewHospitals (St Helens & Knowsley) Finance PLC | United Kingdom | 538 | BBB+ | ||||||||||||||
| Campania Region - Healthcare receivable | Italy | 528 | BBB- | ||||||||||||||
| North Staffordshire, United Kingdom | United Kingdom | 505 | BBB- | ||||||||||||||
| Central Nottinghamshire Hospitals PLC | United Kingdom | 500 | BBB- | ||||||||||||||
| Sydney Airport Finance Company | Australia | 486 | BBB+ | ||||||||||||||
| University of Essex, United Kingdom | United Kingdom | 479 | BB+ | ||||||||||||||
| Derby Healthcare PLC | United Kingdom | 463 | BBB | ||||||||||||||
| The Hospital Company (QAH Portsmouth) Limited | United Kingdom | 450 | BBB | ||||||||||||||
| Sutton and East Surrey Water plc | United Kingdom | 434 | BBB | ||||||||||||||
| Western Power Distribution (South West) plc | United Kingdom | 383 | BBB+ | ||||||||||||||
| South Lanarkshire Schools | United Kingdom | 364 | BBB | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 362 | AAA | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 362 | AAA | ||||||||||||||
| International Infrastructure Pool | United Kingdom | 362 | AAA | ||||||||||||||
| Northumbrian Water PLC | United Kingdom | 344 | BBB | ||||||||||||||
| Private Fund Finance Transaction | Intl-Multi Country | 334 | A | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 329 | A | ||||||||||||||
| Catalyst Healthcare (Romford) Financing PLC | United Kingdom | 324 | BBB | ||||||||||||||
| Portsmouth Water, United Kingdom | United Kingdom | 314 | BBB | ||||||||||||||
| South Staffordshire Water PLC | United Kingdom | 312 | BBB+ | ||||||||||||||
| Western Power Distribution (South Wales) plc | United Kingdom | 298 | BBB+ | ||||||||||||||
| Scotland Gas Networks plc | United Kingdom | 290 | BBB+ | ||||||||||||||
| XpFibre Group | France | 289 | BBB- | ||||||||||||||
| Bakethin Finance Plc | United Kingdom | 286 | A- | ||||||||||||||
| Private International Sub-Sovereign Transaction | United Kingdom | 284 | A | ||||||||||||||
| Total top 50 non-U.S. exposures | $ | 37,429 | |||||||||||||||
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
36
Annuity Reinsurance Segment
37
Assured Guaranty Ltd.
Annuity Reinsurance Segment Results
(in millions)
| Three Months Ended | |||||
| March 31, 2026 | |||||
| Segment revenues | |||||
| Net investment income | $ | 5 | |||
| Fair value gains (losses) on derivatives | 5 | ||||
| Total segment revenues | 10 | ||||
| Segment expenses | |||||
| Benefit expense for annuity reinsurance contracts | 7 | ||||
| Employee compensation and benefit expenses | 2 | ||||
| Other operating expenses | 2 | ||||
| Total segment expenses | 11 | ||||
| Segment adjusted operating income (loss) before income taxes | (1) | ||||
| Less: Provision (benefit) for income taxes | (1) | ||||
| Segment adjusted operating income (loss) | $ | — | |||
38
Asset Management Segment
39
Assured Guaranty Ltd.
Asset Management Segment Results
(in millions)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Segment revenues | $ | 118 | $ | 6 | |||||||
| Segment expenses | 68 | 4 | |||||||||
| Equity in earnings (losses) of investees | 6 | 13 | |||||||||
| Segment adjusted operating income (loss) before income taxes | 56 | 15 | |||||||||
| Less: Provision (benefit) for income taxes | 12 | 3 | |||||||||
| Segment adjusted operating income (loss) | $ | 44 | $ | 12 | |||||||
40
Corporate Division
41
Assured Guaranty Ltd.
Corporate Division Results
(in millions)
| Three Months Ended | |||||||||||
| March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | |||||||||||
| Bargain purchase gain | $ | 6 | $ | — | |||||||
| Other | 2 | 4 | |||||||||
| Total revenues | 8 | 4 | |||||||||
| Expenses | |||||||||||
| Interest expense | 24 | 24 | |||||||||
| Employee compensation and benefit expenses | 7 | 8 | |||||||||
| Other operating expenses | 12 | 8 | |||||||||
| Total expenses | 43 | 40 | |||||||||
| Equity in earnings (losses) of investees | 19 | 16 | |||||||||
| Adjusted operating income (loss) before income taxes | (16) | (20) | |||||||||
| Less: Provision (benefit) for income taxes | (1) | — | |||||||||
| Adjusted operating income (loss) | $ | (15) | $ | (20) | |||||||
42
Other
43
Assured Guaranty Ltd.
Other Results
(in millions)
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | (1) | $ | — | $ | — | $ | (1) | |||||||||||||||
| Net investment income | (1) | — | (2) | (3) | |||||||||||||||||||
| Gains (losses) on FG VIEs | (5) | — | — | (5) | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 9 | — | 9 | |||||||||||||||||||
| Asset management revenues | — | (24) | — | (24) | |||||||||||||||||||
| Total revenues | (7) | (15) | (2) | (24) | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest expense | — | — | (2) | (2) | |||||||||||||||||||
| Total expenses | — | — | (2) | (2) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (2) | — | (2) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | (7) | (17) | — | (24) | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | (1) | (4) | — | (5) | |||||||||||||||||||
| Less: Noncontrolling interest | (6) | 3 | — | (3) | |||||||||||||||||||
| Adjusted operating income (loss) | $ | — | $ | (16) | $ | — | $ | (16) | |||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||
| FG VIEs | CIVs | Intersegment Eliminations and Reclassifications | Total Other | ||||||||||||||||||||
| Revenues | |||||||||||||||||||||||
| Net earned premiums | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| Net investment income | (1) | — | (2) | (3) | |||||||||||||||||||
| Gains (losses) on FG VIEs | 1 | — | — | 1 | |||||||||||||||||||
| Fair value gains (losses) on CIVs | — | 19 | — | 19 | |||||||||||||||||||
| Asset management revenues | — | (1) | — | (1) | |||||||||||||||||||
| Total revenues | — | 18 | (2) | 16 | |||||||||||||||||||
| Expenses | |||||||||||||||||||||||
| Interest expense | — | — | (2) | (2) | |||||||||||||||||||
| Total expenses | — | — | (2) | (2) | |||||||||||||||||||
| Equity in earnings (losses) of investees | — | (6) | — | (6) | |||||||||||||||||||
| Adjusted operating income (loss) before income taxes | — | 12 | — | 12 | |||||||||||||||||||
| Less: Provision (benefit) for income taxes | — | 1 | — | 1 | |||||||||||||||||||
| Less: Noncontrolling interest | — | 9 | — | 9 | |||||||||||||||||||
| Adjusted operating income (loss) | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||
44
Summary
45
Assured Guaranty Ltd.
Summary of Financial and Statistical Data
| As of and for the Three Months Ended March 31, 2026 | Year Ended December 31, | ||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | ||||||||||||||||||||||||||
| (dollars in millions, except per share amounts) | |||||||||||||||||||||||||||||
| GAAP Summary Statements of Operations Data | |||||||||||||||||||||||||||||
| Net earned premiums | $ | 82 | $ | 380 | $ | 403 | $ | 344 | $ | 494 | |||||||||||||||||||
| Net investment income | 92 | 359 | 340 | 365 | 269 | ||||||||||||||||||||||||
| Total expenses | 227 | 550 | 446 | 733 | 536 | ||||||||||||||||||||||||
| Income (loss) before income taxes and equity in earnings (losses) of investees | 34 | 560 | 426 | 640 | 187 | ||||||||||||||||||||||||
| Income (loss) before income taxes | 65 | 662 | 488 | 668 | 148 | ||||||||||||||||||||||||
| Net income (loss) attributable to AGL | 88 | 503 | 376 | 739 | 124 | ||||||||||||||||||||||||
| Net income (loss) attributable to AGL per diluted share | 1.91 | 10.26 | 6.87 | 12.30 | 1.92 | ||||||||||||||||||||||||
| GAAP Summary Balance Sheet Data | |||||||||||||||||||||||||||||
| Total investments and cash | $ | 9,218 | $ | 8,875 | $ | 8,784 | $ | 9,212 | $ | 8,472 | |||||||||||||||||||
| Total assets | 12,635 | 12,176 | 11,901 | 12,539 | 16,843 | ||||||||||||||||||||||||
| Unearned premium reserve | 3,613 | 3,625 | 3,719 | 3,658 | 3,620 | ||||||||||||||||||||||||
| Loss and LAE reserve | 310 | 309 | 268 | 376 | 296 | ||||||||||||||||||||||||
| Long-term debt | 1,705 | 1,704 | 1,699 | 1,694 | 1,675 | ||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | 5,542 | 5,663 | 5,495 | 5,713 | 5,064 | ||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL per share | 124.28 | 125.32 | 108.80 | 101.63 | 85.80 | ||||||||||||||||||||||||
Claims-paying resources (1)(2) | |||||||||||||||||||||||||||||
| Policyholders' surplus | $ | 3,906 | $ | 4,033 | $ | 4,329 | $ | 4,807 | $ | 5,155 | |||||||||||||||||||
| Contingency reserve | 1,539 | 1,511 | 1,392 | 1,296 | 1,202 | ||||||||||||||||||||||||
| Qualified statutory capital | 5,445 | 5,544 | 5,721 | 6,103 | 6,357 | ||||||||||||||||||||||||
| Unearned premium reserve and net deferred ceding commission income | 2,977 | 2,982 | 2,964 | 2,955 | 2,941 | ||||||||||||||||||||||||
| Loss and LAE reserves | 46 | 43 | 53 | 145 | 165 | ||||||||||||||||||||||||
| Total policyholders' surplus and reserves | 8,468 | 8,569 | 8,738 | 9,203 | 9,463 | ||||||||||||||||||||||||
| Present value of installment premium | 1,153 | 1,125 | 1,073 | 1,062 | 955 | ||||||||||||||||||||||||
| CCS and standby line of credit | 400 | 400 | 400 | 400 | 400 | ||||||||||||||||||||||||
| Total claims-paying resources | $ | 10,021 | $ | 10,094 | $ | 10,211 | $ | 10,665 | $ | 10,818 | |||||||||||||||||||
| Ratios: | |||||||||||||||||||||||||||||
| Net exposure to qualified statutory capital | 52:1 | 51:1 | 46:1 | 41:1 | 36:1 | ||||||||||||||||||||||||
| Capital ratio | 82:1 | 80:1 | 73:1 | 66:1 | 58:1 | ||||||||||||||||||||||||
| Financial resources ratio | 44:1 | 44:1 | 41:1 | 37:1 | 34:1 | ||||||||||||||||||||||||
| Adjusted statutory net exposure to claims-paying resources | 28:1 | 28:1 | 26:1 | 24:1 | 21:1 | ||||||||||||||||||||||||
| Par and Debt Service Written (Financial Guaranty and Specialty) | |||||||||||||||||||||||||||||
| Gross debt service written: | |||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 7,309 | $ | 48,974 | $ | 44,019 | $ | 41,902 | $ | 36,954 | |||||||||||||||||||
| Public finance - non-U.S. | 165 | 1,657 | 3,302 | 3,286 | 756 | ||||||||||||||||||||||||
| Structured finance - U.S. | 1,534 | 530 | 1,495 | 2,130 | 1,120 | ||||||||||||||||||||||||
| Structured finance - non-U.S. | 1,928 | 3,864 | 4,078 | 3,084 | 551 | ||||||||||||||||||||||||
| Total gross debt service written | $ | 10,936 | $ | 55,025 | $ | 52,894 | $ | 50,402 | $ | 39,381 | |||||||||||||||||||
| Net debt service written | $ | 10,936 | $ | 55,020 | $ | 52,760 | $ | 50,402 | $ | 39,381 | |||||||||||||||||||
| Net par written | 7,511 | 32,911 | 31,695 | 28,960 | 22,047 | ||||||||||||||||||||||||
| Gross par written | 7,511 | 32,916 | 31,829 | 28,960 | 22,047 | ||||||||||||||||||||||||
| As of March 31, 2026 | As of December 31, | ||||||||||||||||||||||||||||
| Other Financial Information | 2025 | 2024 | 2023 | 2022 | |||||||||||||||||||||||||
| (in billions) | |||||||||||||||||||||||||||||
| GAAP Basis - Financial Guaranty | |||||||||||||||||||||||||||||
| Net debt service outstanding (end of period) | $ | 441.5 | $ | 440.8 | $ | 416.0 | $ | 397.6 | $ | 370.0 | |||||||||||||||||||
| Gross debt service outstanding (end of period) | 442.1 | 441.4 | 416.5 | 398.0 | 370.2 | ||||||||||||||||||||||||
| Net par outstanding (end of period) | 278.6 | 277.1 | 261.6 | 249.2 | 233.3 | ||||||||||||||||||||||||
| Gross par outstanding (end of period) | 279.2 | 277.6 | 262.0 | 249.5 | 233.4 | ||||||||||||||||||||||||
Statutory Basis - Financial Guaranty (2) | |||||||||||||||||||||||||||||
| Net debt service outstanding (end of period) | $ | 440.2 | $ | 439.4 | $ | 415.5 | $ | 396.4 | $ | 366.9 | |||||||||||||||||||
| Gross debt service outstanding (end of period) | 440.8 | 440.0 | 416.0 | 396.8 | 367.1 | ||||||||||||||||||||||||
| Net par outstanding (end of period) | 277.5 | 275.9 | 260.9 | 247.8 | 230.3 | ||||||||||||||||||||||||
| Gross par outstanding (end of period) | 278.1 | 276.5 | 261.4 | 248.2 | 230.5 | ||||||||||||||||||||||||
1) See page 16 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, AG., are prepared on a stand-alone basis. As of March 31, 2026 and 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.
46
Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations (1) (1 of 2)
(in millions, except per share amounts)
| Three Months Ended March 31, 2026 | Year Ended December 31, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||
| Total GWP | $ | 70 | $ | 256 | $ | 440 | $ | 357 | $ | 360 | ||||||||||||||||||||||
Less: Installment GWP and other GAAP adjustments (2) | 36 | 105 | 300 | 247 | 145 | |||||||||||||||||||||||||||
| Upfront GWP | 34 | 151 | 140 | 110 | 215 | |||||||||||||||||||||||||||
Plus: Installment premiums and other (3) | 39 | 135 | 262 | 294 | 160 | |||||||||||||||||||||||||||
| Total PVP | $ | 73 | $ | 286 | $ | 402 | $ | 404 | $ | 375 | ||||||||||||||||||||||
| PVP: | ||||||||||||||||||||||||||||||||
| Public finance - U.S. | $ | 48 | $ | 206 | $ | 270 | $ | 212 | $ | 257 | ||||||||||||||||||||||
| Public finance - non-U.S. | 8 | 37 | 67 | 83 | 68 | |||||||||||||||||||||||||||
| Structured finance - U.S. | 7 | 13 | 25 | 68 | 43 | |||||||||||||||||||||||||||
| Structured finance - non-U.S. | 10 | 30 | 40 | 41 | 7 | |||||||||||||||||||||||||||
| Total PVP | $ | 73 | $ | 286 | $ | 402 | $ | 404 | $ | 375 | ||||||||||||||||||||||
| Adjusted operating income reconciliation: | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to AGL | $ | 88 | $ | 503 | $ | 376 | $ | 739 | $ | 124 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (15) | (40) | 9 | (14) | (56) | |||||||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | (2) | 6 | 14 | 106 | (18) | |||||||||||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (2) | — | — | — | — | |||||||||||||||||||||||||||
| Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld | (2) | — | — | — | — | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 6 | 20 | (10) | (35) | 24 | |||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of certain assets and liabilities | (18) | 85 | (26) | 51 | (110) | |||||||||||||||||||||||||||
| Total pre-tax adjustments | (33) | 71 | (13) | 108 | (160) | |||||||||||||||||||||||||||
| Less tax effect on pre-tax adjustments | 6 | (13) | — | (17) | 17 | |||||||||||||||||||||||||||
| Adjusted operating income (loss) | $ | 115 | $ | 445 | $ | 389 | $ | 648 | $ | 267 | ||||||||||||||||||||||
| Adjusted operating income per diluted share reconciliation: | ||||||||||||||||||||||||||||||||
| Net income (loss) attributable to AGL per diluted share | $ | 1.91 | $ | 10.26 | $ | 6.87 | $ | 12.30 | $ | 1.92 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (0.33) | (0.82) | 0.16 | (0.23) | (0.87) | |||||||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | (0.05) | 0.12 | 0.27 | 1.75 | (0.27) | |||||||||||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (0.04) | — | — | — | — | |||||||||||||||||||||||||||
| Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld | (0.04) | — | — | — | — | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 0.13 | 0.40 | (0.19) | (0.57) | 0.37 | |||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of certain assets and liabilities | (0.39) | 1.74 | (0.47) | 0.84 | (1.72) | |||||||||||||||||||||||||||
| Total pre-tax adjustments | (0.72) | 1.44 | (0.23) | 1.79 | (2.49) | |||||||||||||||||||||||||||
| Tax effect on pre-tax adjustments | 0.13 | (0.26) | — | (0.27) | 0.27 | |||||||||||||||||||||||||||
| Adjusted operating income (loss) per diluted share | $ | 2.50 | $ | 9.08 | $ | 7.10 | $ | 10.78 | $ | 4.14 | ||||||||||||||||||||||
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.
47
Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations(1) (2 of 2)
(in millions, except per share amounts)
| As of March 31, 2026 | As of December 31, | |||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | 2022 | |||||||||||||||||||||||||||||
| ABV reconciliation: | ||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL | $ | 5,542 | $ | 5,663 | $ | 5,495 | $ | 5,713 | $ | 5,064 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | 52 | 55 | 49 | 34 | (71) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 28 | 22 | 2 | 13 | 47 | |||||||||||||||||||||||||||
| Unrealized gains (losses) on investment portfolio | (304) | (149) | (397) | (361) | (523) | |||||||||||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (3) | — | — | — | — | |||||||||||||||||||||||||||
| Fair value gains (losses) of the embedded derivative in funds withheld | 1 | — | — | — | — | |||||||||||||||||||||||||||
| Less taxes | 33 | 6 | 46 | 37 | 68 | |||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity | 5,735 | 5,729 | 5,795 | 5,990 | 5,543 | |||||||||||||||||||||||||||
| Pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Less: DAC | 197 | 192 | 176 | 161 | 147 | |||||||||||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 190 | 194 | 202 | 199 | 157 | |||||||||||||||||||||||||||
Plus: Net deferred revenues on insurance contracts (1) | 3,358 | 3,367 | 3,473 | 3,436 | 3,428 | |||||||||||||||||||||||||||
| Plus taxes | (670) | (674) | (702) | (699) | (602) | |||||||||||||||||||||||||||
| ABV | $ | 8,416 | $ | 8,424 | $ | 8,592 | $ | 8,765 | $ | 8,379 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||||||||
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $(2), $2, $0, $1, and $4) | $ | (8) | $ | 8 | $ | — | $ | 5 | $ | 17 | ||||||||||||||||||||||
ABV (net of tax provision (benefit) of $(3), $1, $(2), $0, and $3) | $ | (13) | $ | 3 | $ | (6) | $ | — | $ | 11 | ||||||||||||||||||||||
| ABV per share reconciliation: | ||||||||||||||||||||||||||||||||
| Shareholders’ equity attributable to AGL per share | $ | 124.28 | $ | 125.32 | $ | 108.80 | $ | 101.63 | $ | 85.80 | ||||||||||||||||||||||
| Less pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Non-credit impairment-related fair value gains (losses) on credit derivatives | 1.17 | 1.21 | 0.96 | 0.61 | (1.21) | |||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 0.62 | 0.48 | 0.05 | 0.22 | 0.80 | |||||||||||||||||||||||||||
| Unrealized gains (losses) on investment portfolio | (6.80) | (3.28) | (7.86) | (6.40) | (8.86) | |||||||||||||||||||||||||||
| Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment | (0.07) | — | — | — | — | |||||||||||||||||||||||||||
| Fair value gains (losses) of the embedded derivative in funds withheld | 0.01 | — | — | — | — | |||||||||||||||||||||||||||
| Less taxes | 0.74 | 0.13 | 0.90 | 0.66 | 1.15 | |||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity per share | 128.61 | 126.78 | 114.75 | 106.54 | 93.92 | |||||||||||||||||||||||||||
| Pre-tax adjustments: | ||||||||||||||||||||||||||||||||
| Less: DAC | 4.42 | 4.25 | 3.47 | 2.87 | 2.48 | |||||||||||||||||||||||||||
| Plus: Net present value of estimated net future revenue | 4.27 | 4.30 | 3.99 | 3.54 | 2.66 | |||||||||||||||||||||||||||
Plus: Net deferred revenues on insurance contracts (1) | 75.30 | 74.51 | 68.75 | 61.12 | 58.10 | |||||||||||||||||||||||||||
| Plus taxes | (15.02) | (14.91) | (13.90) | (12.41) | (10.22) | |||||||||||||||||||||||||||
| ABV per share | $ | 188.74 | $ | 186.43 | $ | 170.12 | $ | 155.92 | $ | 141.98 | ||||||||||||||||||||||
| Gain (loss) related to FG VIE and CIV consolidation included in: | ||||||||||||||||||||||||||||||||
| Adjusted operating shareholders’ equity per share | $ | (0.19) | $ | 0.18 | $ | 0.01 | $ | 0.07 | $ | 0.28 | ||||||||||||||||||||||
| ABV per share | $ | (0.29) | $ | 0.07 | $ | (0.13) | $ | — | $ | 0.19 | ||||||||||||||||||||||
1) See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
48
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.
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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 credit default swap 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 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, 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.
50
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.
51
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’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 and provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty.
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.
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 FG insurance contract, and certain CIVs in which 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 Financial Guaranty 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 when the consolidation effects are not consistent with the Company’s economic interest or exposure to those entities (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 and as a basis for establishing target levels and awards under the Company’s executive incentive compensation programs. 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 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 and excludes certain items that, under U.S. GAAP, (i) may vary significantly from period to period due to near-term market conditions or are otherwise not directly comparable or reflective of the underlying performance of the Company’s business, (ii) result in asymmetrical accounting adjustments, and/or (iii) non-economic accounting adjustments. 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 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 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 changes in fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP). Certain mark-to-market movements of the hedged market risks are not reported in net income (loss) attributable to AGL, such as changes in the unrealized gains and losses on the available-for-sale investment portfolio due to fluctuations in exchange rates, and interest rates, and certain components of changes in insurance liabilities as a result of changes in interest rates. In addition, the timing of the recognition of mark-to-market movements as a result of inflation changes may not match the timing of the corresponding derivative gain and loss recognition.
52
Non-GAAP Financial Measures (continued)
4) Elimination of the changes in fair value of the embedded derivative in funds withheld that are recognized in net income (loss) attributable to AGL related to realized and unrealized gains (losses) of the underlying investment portfolio, whose value may change significantly from period to period due to near term market conditions.
5) Elimination of fair value gains (losses) on 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.
6) Elimination of foreign exchange gains (losses) on remeasurement of assets and liabilities such as net premium receivables and insurance liabilities that are long term in nature that are recognized in net income (loss) attributable to AGL. Long-dated receivables and insurance 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.
7) Income tax allocated to the adjustments above.
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 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 fair value gains (losses) on credit derivatives that are reported on the consolidated balance sheet, 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, 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 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 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) Elimination of the fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP), such as changes in fair value on derivatives that hedge fluctuations in foreign exchange, interest rates and inflation on the available-for-sale investment portfolio.
5) Elimination of the unrealized gains (losses) of the underlying investments in funds withheld arrangements.
6) Income tax allocated to the adjustments above.
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.
53
Non-GAAP Financial Measures (continued)
3) Addition of deferred income on insurance contracts (including deferred profit liability and, in the case of FG insurance contracts, the amount of deferred premium revenue in excess of expected loss to be expensed, net of reinsurance).
4) Income tax allocated to the adjustments above.
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, modifications, credit defaults, changes in assumptions for or actual experience of the annuity insurance business and other factors.
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-FG 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 Financial Guaranty 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 GWP 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 FG 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, amendments to policies, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.
54
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 Q1 2026?
Assured Guaranty reported Q1 2026 net income of $88 million and adjusted operating income of $115 million. Diluted EPS was $1.91 on a GAAP basis and $2.50 on an adjusted operating basis, reflecting lower one‑off gains versus 2025 but continued profitability across core businesses.
How much new business did Assured Guaranty (AGO) write in Q1 2026?
Assured Guaranty recorded gross written premiums of $70 million and present value of new business production (PVP) of $73 million. Growth came from U.S. and non‑U.S. public finance and structured finance guarantees, with U.S. public finance GWP and PVP nearly doubling year over year.
What is new in Assured Guaranty (AGO)’s annuity reinsurance business?
Assured Guaranty entered annuity reinsurance by acquiring Warwick Re, renamed Assured Life Reinsurance Ltd. The segment reinsures $475 million of pension risk transfer reserves and $263 million of MYGA account value, supported by bond and funds‑withheld investment portfolios and related derivatives.
How did Assured Guaranty (AGO)’s asset management segment perform?
Asset management adjusted operating income rose to $44 million in Q1 2026 from $12 million a year earlier. Results include Assured Guaranty’s ownership interest in Sound Point, amortization of intangibles, and carried interest from a single‑asset fund sale, boosting fee-based earnings.