$AGO

ASSURED GUARANTY LTD

CIK:0001273813|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues
Net earned premiums	$ 102	$ 89	$ 184	$ 180
Net investment income	98	89	190	176
Net realized investment gains (losses)	(10)	(6)	(25)	(22)
Fair value gains (losses) on derivatives	5	1	7	105
Fair value gains (losses) on committed capital securities	(7)	(1)	(1)	1
Gains (losses) on financial guaranty variable interest entities	2	2	(3)	3
Fair value gains (losses) on consolidated investment vehicles	0	4	9	23
Foreign exchange gains (losses) on remeasurement	(2)	79	(21)	116
Fair value gains (losses) on trading securities	7	2	13	3
Asset management revenues	0	13	94	18
Other income (loss)	0	9	9	23
Total revenues	195	281	456	626
Expenses
Loss and loss adjustment expenses (benefit)	4	28	21	68
Benefit expense for annuity reinsurance contracts	8	0	15	0
Interest expense	22	23	44	45
Amortization of deferred acquisition costs	5	5	10	10
Employee compensation and benefit expenses	57	50	120	110
Asset management expenses	0	9	68	13
Other operating expenses	39	36	84	74
Total expenses	135	151	362	320
Income (loss) before income taxes and equity in earnings (losses) of investees	60	130	94	306
Equity in Earnings (Losses) of Investees	(11)	3	20	56
Income (loss) before income taxes	49	133	114	362
Less: Provision (benefit) for income taxes	9	27	(11)	71
Net income (loss)	40	106	125	291
Less: Noncontrolling interest	1	3	(2)	12
Net income (loss) attributable to Assured Guaranty Ltd.	$ 39	$ 103	$ 127	$ 279
Earnings per share:
Basic (in dollars per share)	$ 0.88	$ 2.10	$ 2.82	$ 5.60
Diluted (in dollars per share)	$ 0.88	$ 2.08	$ 2.80	$ 5.54

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Dec. 31, 2025
Statement of Cash Flows [Abstract]
Net cash flows provided by (used in) operating activities			$ 230	$ 165
Fixed-maturity securities, available-for-sale:
Purchases			(826)	(754)
Sales	$ 492	$ 211	585	427
Maturities and paydowns			314	424
Short-term investments with original maturities of over three months:
Purchases			0	(3)
Sales			1	0
Maturities and paydowns			2	0
Net sales (purchases) of short-term investments with original maturities of less than three months			115	291
Sales of fixed-maturity securities, trading			0	8
Maturities and paydowns of fixed-maturity securities, trading			6	5
Paydowns of financial guaranty variable interest entities’ assets			10	10
Purchases of and contributions to other invested assets			(153)	(73)
Sales of and return of capital from other invested assets			57	23
Assured Life Reinsurance, Ltd. acquisition, net of cash acquired (see Note 2)			(145)	0
Other			(1)	(7)
Net cash flows provided by (used in) investing activities			(35)	351
Cash flows from financing activities:
Dividends paid			(36)	(36)
Repurchases of common shares			(120)	(251)
Net paydowns of financial guaranty variable interest entities’ liabilities			(8)	(8)
Payments related to tax withholding for share-based compensation			(20)	(34)
Other			1	2
Distributions to noncontrolling interest from consolidated investment vehicles			(97)	0
Net cash flows provided by (used in) financing activities			(280)	(327)
Effect of foreign exchange rate changes			(3)	8
Increase (decrease) in cash and cash equivalents and restricted cash			(88)	197
Cash and cash equivalents and restricted cash at beginning of period			419	128	$ 128
Cash and cash equivalents and restricted cash at end of period	331	325	331	325	419
Supplemental disclosure of non-cash activities:
Receipt of fixed-maturity securities, available-for-sale			0	7
Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash	310	301	310	301	388
Cash and cash equivalents of financial guaranty variable interest entities	20	23	20	23
Restricted cash (included in other assets)	1	1	1	1
Cash and cash equivalents and restricted cash at end of period	$ 331	$ 325	$ 331	$ 325	$ 419

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Investments:
Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $72 and $54 (amortized cost of $7,147 and $6,572)	$ 6,817	$ 6,369
Fixed-maturity securities, trading, at fair value	131	124
Short-term investments, at fair value	792	903
Other invested assets (includes $3 and $3, at fair value)	1,190	1,091
Total investments	8,930	8,487
Cash	310	388
Premiums receivable, net of commissions payable, net of allowance for credit losses of $7 and $3	1,523	1,572
Funds withheld, at fair value	296	0
Deferred acquisition costs	201	192
Salvage and subrogation recoverable	428	449
Financial guaranty variable interest entities’ assets (includes $164 and $172, at fair value)	198	212
Assets of consolidated investment vehicles (includes $– and $167, at fair value)	0	175
Other assets (includes $187 and $174, at fair value)	755	701
Total assets	12,641	12,176
Liabilities
Unearned premium reserve	3,600	3,625
Loss and loss adjustment expense reserve	306	309
Future policy benefits for annuity reinsurance contracts	484	0
Policyholder account balances for annuity reinsurance contracts	256	0
Long-term debt	1,706	1,704
Financial guaranty variable interest entities’ liabilities (includes $147 and $197, at fair value, $172 and $182 with recourse, $16 and $16 without recourse)	188	198
Other liabilities (includes $27 and $21, at fair value)	519	551
Total liabilities	7,059	6,387
Commitments and contingencies (Notes 4, 5, 9 and 13)
Shareholders’ equity
Common shares ($0.01 par value, 500,000,000 shares authorized; 44,055,227 and 45,184,791 shares issued and outstanding)	0	0
Retained earnings	5,809	5,830
Accumulated other comprehensive income (loss), net of tax of $(55) and $(39)	(251)	(168)
Deferred equity compensation	1	1
Total shareholders’ equity attributable to Assured Guaranty Ltd.	5,559	5,663
Non-redeemable noncontrolling interest (Note 10)	23	126
Total shareholders’ equity	5,582	5,789
Total liabilities and shareholders’ equity	$ 12,641	$ 12,176