Assured Guaranty(AGO) - 2024 Q3 - Quarterly Results

Financial Performance - Net income attributable to Assured Guaranty for Q3 2024 was $171 million, compared to$157 million in Q3 2023, representing an increase of 8.9%[4]. - Adjusted operating income for Q3 2024 was $130 million, down from$206 million in Q3 2023, reflecting a decrease of 37%[4]. - The company’s diluted earnings per share increased to $3.17 in Q3 2024 from$2.60 in Q3 2023, an increase of 22%[4]. - The return on equity (ROE) for Q3 2024 was 12.1%, up from 11.9% in Q3 2023[4]. - Net income attributable to Assured Guaranty Ltd. for the three months ended September 30, 2024, was $171 million, compared to$157 million for the same period in 2023[7]. - Adjusted operating income for the three months ended September 30, 2024, was $130 million, down from$206 million in the same period of 2023[10]. - Net income attributable to AGL for the nine months ended September 30, 2024, was $358 million, a decrease of 51.6$739 million in 2023[117]. - Net income attributable to AGL for the latest quarter was $358 million, compared to$739 million in the previous quarter, reflecting a decrease of approximately 51.5%[119]. Revenue and Premiums - Gross written premiums (GWP) increased to $61 million in Q3 2024 from$40 million in Q3 2023, marking a growth of 52.5%[4]. - Net earned premiums for the three months ended September 30, 2024, increased to $97 million from$95 million in the same period of 2023, while net investment income decreased to $82 million from$100 million[7]. - Total revenues for the nine months ended September 30, 2024, were $716 million, down from$1,046 million in the same period in 2023[7]. - Total revenues for the three months ended September 30, 2024, amounted to $269 million, with net earned premiums contributing$98 million and net investment income contributing $82 million[17]. - Total revenues for the nine months ended September 30, 2023, were$1,046 million, with net earned premiums contributing $261 million and net investment income contributing$270 million[23]. - Total gross debt service written for the nine months ended September 30, 2024, was $34,095 million, a decrease of 32.4$50,402 million in 2023[118]. Assets and Equity - Total assets as of September 30, 2024, were $12,291 million, a decrease from$12,539 million as of December 31, 2023[9]. - Shareholders' equity attributable to Assured Guaranty Ltd. as of September 30, 2024, is $5,728 million, up from$5,713 million as of December 31, 2023[5]. - Adjusted book value as of September 30, 2024, was $8,582 million, down from$8,765 million as of December 31, 2023[5]. - Shareholders' equity attributable to AGL per share increased to $111.09 from$101.63 in 2023, reflecting a growth of 14.4%[117]. - The adjusted operating shareholders' equity was $5,875 million, down from$5,990 million in the previous quarter[122]. Investment Performance - The company experienced unrealized losses on its investment portfolio of $(211) million for the quarter, compared to$(400) million in the previous quarter[16]. - The annualized investment income based on amortized cost and pre-tax book yields for fixed maturity securities was $258 million, with a pre-tax book yield of 4.09$247 million, down from $365 million in 2023, representing a decline of 32.3$1 million during the quarter, contributing to the overall revenue[17]. - The company reported foreign exchange gains of $42 million, compared to losses of$(110) million in the previous quarter[119]. Business Segments and Growth - The insurance segment reported adjusted operating income of $162 million in Q3 2024, compared to$59 million in Q3 2023[4]. - The company anticipates continued growth in gross written premiums and new business production in the upcoming quarters[3]. - The company is focusing on expanding its market presence in non-U.S. public finance, which has shown substantial growth in recent quarters[47]. - The U.S. structured finance segment generated $1,245 million in gross par written for the nine months ended September 30, 2024, compared to$1,101 million in the same period of 2023, a growth of 13.1%[50]. Claims and Losses - The total expected present value of net expected loss to be expensed is $252 million, with future accretion of$(76) million, leading to a total expected future loss and LAE of $176 million[63]. - The total net expected loss to be paid (recovered) for U.S. public finance is$238 million as of September 30, 2024[57]. - The loss and LAE (benefit) for the nine months ended September 30, 2024, was reported at $(54) million, indicating a significant change from the previous period[21]. Market Exposure and Risk Management - The company has not provided insurance for Residential Mortgage-Backed Securities in the primary market since 2008, indicating a strategic shift in focus[143]. - The company categorizes transactions rated below B- as CCC, indicating a focus on risk assessment in their internal rating approach[100]. - The company uses risk-free rates for discounting expected losses, which are based on probability-weighted scenarios[92]. Other Financial Metrics - Adjusted operating income for the period was a loss of$8 million, compared to a loss of $10 million previously[114]. - The provision for income taxes was a benefit of$2 million, while noncontrolling interests contributed $12 million[114]. - The company emphasizes the importance of adjusted operating income for evaluating financial results in comparison with consensus analyst estimates[156].