Assured Guaranty Ltd. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Assured Guaranty Ltd. has submitted its Q1 2024 10-Q filing, detailing financial performance and position.</b>

AI Summary

ASSURED GUARANTY LTD (AGO) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Assured Guaranty Ltd. filed its 10-Q report for the period ending March 31, 2024. The filing includes financial data for the first quarter of 2024. Key financial statement components such as Common Stock, Retained Earnings, and Accumulated Other Comprehensive Income are detailed. The report covers periods including Q1 2024, Q1 2023, and year-end 2023 and 2022. The company's primary business is Surety Insurance, classified under SIC code 6351.

Why It Matters

For investors and stakeholders tracking ASSURED GUARANTY LTD, this filing contains several important signals. This 10-Q provides investors with the latest quarterly financial snapshot of Assured Guaranty Ltd., crucial for understanding its current financial health and operational performance. The detailed financial statements and disclosures within the filing are essential for investment analysis, risk assessment, and compliance monitoring.

Risk Assessment

Risk Level: medium — ASSURED GUARANTY LTD shows moderate risk based on this filing. The company operates in the surety insurance industry, which can be subject to economic downturns and regulatory changes, impacting its financial stability and profitability.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-Q to assess Assured Guaranty Ltd.'s financial performance and potential risks.

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-05-08 — Filing Date (Filed As Of Date)
• 2024-01-01 — Q1 2024 Start Date (Reporting period for Q1 2024)
• 2023-03-31 — Q1 2023 End Date (Reporting period for Q1 2023)
• 2023-12-31 — Year-End 2023 Date (Balance sheet date for year-end 2023)
• 2022-12-31 — Year-End 2022 Date (Balance sheet date for year-end 2022)

Key Players & Entities

• ASSURED GUARANTY LTD (company) — Filer name
• 0001273813 (company) — Central Index Key
• 6351 (dollar_amount) — Standard Industrial Classification for Surety Insurance
• 30 WOODBOURNE AVE (company) — Business Address
• HAMILTON BERMUDA (company) — Business Address City and State
• 441-279-5700 (company) — Business Phone
• AGR LTD (company) — Former Company Name
• AGC HOLDINGS LTD (company) — Former Company Name

FAQ

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive update on the company's financial performance and position during the quarter.)

Surety Insurance

A type of insurance that guarantees the performance of a contract or obligation. (This is the primary business of Assured Guaranty Ltd., and its performance is directly tied to the health of this sector.)

Key Financial Figures

• $0.01 — ange on which registered Common Shares $0.01 par value per share AGO New York Stock

Filing Documents

• ago-20240331.htm (10-Q) — 4099KB
• ago-03312024x10qex101.htm (EX-10.1) — 105KB
• ago-03312024x10qex102.htm (EX-10.2) — 98KB
• ago-03312024x10qex103.htm (EX-10.3) — 74KB
• ago-03312024x10qex104.htm (EX-10.4) — 36KB
• ago-03312024x10qex105.htm (EX-10.5) — 24KB
• ago-03312024x10qex106.htm (EX-10.6) — 98KB
• ago-03312024x10qex107.htm (EX-10.7) — 7KB
• ago-03312024x10qex220.htm (EX-22) — 14KB
• ago-03312024x10qex311.htm (EX-31.1) — 12KB
• ago-03312024x10qex312.htm (EX-31.2) — 12KB
• ago-03312024x10qex321.htm (EX-32.1) — 6KB
• ago-03312024x10qex322.htm (EX-32.2) — 6KB
• agllogo.jpg (GRAPHIC) — 43KB
• ago-20240331_g1.jpg (GRAPHIC) — 277KB
• image_0.jpg (GRAPHIC) — 6KB
• image_01.jpg (GRAPHIC) — 6KB
• image_02.jpg (GRAPHIC) — 6KB
• 0001273813-24-000031.txt (&nbsp;) — 22740KB
• ago-20240331.xsd (EX-101.SCH) — 157KB
• ago-20240331_cal.xml (EX-101.CAL) — 161KB
• ago-20240331_def.xml (EX-101.DEF) — 802KB
• ago-20240331_lab.xml (EX-101.LAB) — 1383KB
• ago-20240331_pre.xml (EX-101.PRE) — 1046KB
• ago-20240331_htm.xml (XML) — 4791KB

Financial Statements

Financial Statements: 1 Condensed Consolidated Balance Sheets (Unaudited) as of March 31 , 202 4 and December 31, 202 3 1 Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 3 1 , 202 4 and 202 3 2 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the Three Months Ended March 3 1 , 202 4 and 20 2 3 3 Condensed Consolidated Statements of Shareholders' Equity (Unaudited) for the Three Months Ended Ma r ch 3 1 , 202 4 and 202 3 4 Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 3 1 , 202 4 and 202 3 5 Notes to Condensed Consolidated Financial Statements (Unaudited) 7 1. Business and Basis of Presentation 7 2. Segment Information 9 3. Outstanding Exposure 12 4. Expected Loss to be Paid (Recovered) 22 5. Contracts Accounted for as Insurance 30 6. Contracts Accounted for as Credit Derivatives 35 7. Investments 37 8. Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles 42 9. Fair Value Measurement 46 10. Income Taxes 57 11. Commitments and Contingencies 60 12. Shareholders' Equity 61 13. Earnings Per Share 63 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 64

Forward Looking Statements

Forward Looking Statements 64 Available Information 65 Overview 66

Business

Business 66 Economic Environment 66 Key Business Strategies 67 Executive Summary 70 Financial Performance of Assured Guaranty 71 Other Matters 73 Results of Operations 74 Critical Accounting Estimates 74 Results of Operations by Segment 74 Insurance Segment 75 Asset Management Segment 82 Corporate 83 Other 83 Reconciliation to GAAP 84 Non-GAAP Financial Measures 86 Insured Portfolio 89 Liquidity and Capital Resources 93 AGL and its U.S. Holding Companies 93 Insurance Subsidiaries 96 Investment Portfolio 98 Lease Obligations 102 Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles 102 Condensed Consolidated Cash Flows 102 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 104 Item 4.

Controls and Procedures

Controls and Procedures 104 PART II Other Information 105 Item 1.

Legal Proceedings

Legal Proceedings 105 Item 1A.

Risk Factors

Risk Factors 105 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 105 Item 5. Other Matters 105 Item 6. Exhibits 106

Signatures

Signatures 107 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Assured Guaranty Ltd. Condensed Consolidated Balance Sheets (Unaudited) (dollars in millions except share data) As of March 31, 2024 December 31, 2023 Assets Investments: Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $ 67 and $ 77 (amortized cost of $ 6,553 and $ 6,746 ) $ 6,091 $ 6,307 Fixed-maturity securities, trading, at fair value 272 318 Short-term investments, at fair value 1,649 1,661 Other invested assets (includes $ 4 and $ 3 , at fair value) 875 829 Total investments 8,887 9,115 Cash 115 97 Premiums receivable, net of commissions payable 1,450 1,468 Deferred acquisition costs 164 161 Salvage and subrogation recoverable 295 298 Financial guaranty variable interest entities' assets (includes $ 167 and $ 174 , at fair value) 167 328 Assets of consolidated investment vehicles (includes $ 353 and $ 331 , at fair value) 377 366 Other assets (includes $ 123 and $ 123 , at fair value) 713 706 Total assets $ 12,168 $ 12,539 Liabilities Unearned premium reserve $ 3,612 $ 3,658 Loss and loss adjustment expense reserve 307 376 Long-term debt 1,695 1,694 Credit derivative liabilities, at fair value 43 53 Financial guaranty variable interest entities' liabilities, at fair value (with recourse $ 389 and $ 543 , without recourse $ 10 and $ 11 ) 399 554 Other liabilities 430 439 Total liabilities 6,486 6,774 Commitments and contingencies (Notes 3, 7 and 11) Shareholders' equity Common shares ($ 0.01 par value, 500,000,000 shares authorized; 55,081,584 and 56,217,305 shares issued and outstanding) 1 1 Retained earnings 6,014 6,070 Accumulated other comprehensive income (loss), net of tax of $( 72 ) and $( 67 ) ( 387 ) ( 359 ) Deferred equity compensation 1 1 Total shareholders' equity attributable to Assured Guaranty Ltd. 5,629 5,713 Nonredeemable noncontrolling interests (Note 8) 53 52 Total shareholders' equity 5,682 5,765 Total liabilities

Business

Business Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) is a Bermuda-based holding company that provides, through its wholly owned operating subsidiaries, credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets. Assured Guaranty also participates in the asset management business. Insurance Through its insurance subsidiaries, the Company applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. If an obligor defaults on a scheduled payment due on an obligation, including a scheduled principal or interest payment (collectively, debt service), the Company is required under its unconditional and irrevocable financial guaranty to pay the amount of the shortfall to the holder of the obligation. The Company markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities as well as to investors in such obligations. The Company guarantees obligations issued principally in the U.S. and the United Kingdom (U.K.), and also guarantees obligations issued in other countries and regions, including Western Europe. The Company also provides specialty insurance and reinsurance on transactions with risk profiles similar to those of its structured finance exposures written in financial guaranty form. Asset Management Until July 1, 2023, the Company served as an investment advisor to primarily collateralized loan obligations (CLOs) and opportunity funds, through Assured Investment Management LLC (AssuredIM LLC) and its investment management affiliates (together with AssuredIM LLC, AssuredIM). Beginning July 1, 2023, the Company participates in the asset management business through its own

View Full Filing

View this 10-Q filing on SEC EDGAR