Assured Guaranty posts net income increase in Q3’24

Assured Guaranty Ltd. (AGL) has released its financial results for the third quarter of 2024, which includes a net income of $171 million in comparison to $157 million from the third quarter of 2023.

At the same time, the firm posted an adjusted operating income of $130 million for Q3 2024, compared to last year’s $206 million.

Gross written premiums (GWP) sat at $61 million for the quarter, a notable increase compared to the $40 million figure that was posted in the prior year period.

Moving towards the firm’s insurance segment, adjusted operating income increased to $162 million in Q3 2024 from $59 million in Q3 2023. AGL attributed this growth to a benefit in loss expense in Q3 2024. This was offset in part by lower net investment income and a $6 million write-off of insurance licenses in connection with the merger of the US insurance subsidiaries Assured Guaranty Municipal Corp. and AG on August 1, 2024.

Net investment income within the insurance segment – which represents interest income on available-for-sale fixed-maturity debt and short-term investments – decreased to $82 million in the quarter, from the $101 million figure that was posted last yea, which the firm noted was primarily due to lower income on loss mitigation securities.

Dominic Frederico, President and CEO, commented: “Assured Guaranty has continued to build both shareholder and policyholder value this year. Shareholders’ equity per share on September 30, 2024 was a record $111.09. Adjusted book value per share also set a record at $166.47, as did adjusted operating shareholders’ equity per share at $113.96. For the first three quarters, net income has increased to $6.44 per share, up 8% year-over-year, and adjusted operating income reached $5.80 per share, up 13% year-over-year.”

Adding: “New business production has been strong this year. GWP and PVP for the first three quarters reached $254 million and $281 million, respectively, which were $33 million and $32 million higher than for last year’s comparable period. Municipal production benefited from greater overall issuance and solid investor demand. We also saw significant contributions from our non-U.S. public finance and global structured finance businesses. After the merger of AGM into AG (formerly AGC) in the third quarter, we believe the new AG is positioned for significant growth, as we pursue further expansion into new product and geographic markets.”

“In our capital management program, as of November 8, 2024, the Company had repurchased 10% of the shares that were outstanding on December 31, 2023, and in November our board authorized an additional $250 million of share repurchases,” Frederico concluded.

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