Assured Guaranty sees Q1 results soar
Assured Guaranty has announced that net income for the first three months of 2017 came to $317 million, a substantial increase on the $59 million it reported for the same period of 2016.
The company said that this increase was primarily attributable to fair value gains on credit derivatives, the acquisition of MBIA UK Insurance, and a commutation gain upon the reassumption of previously ceded contracts.
Assured Guaranty said that the acquisition of MBIA UK Insurance resulted in a benefit to net income and operating income of $57 million.
Gross written premiums for the first quarter of 2017 came to $111 million, more than six times the $19 million it wrote over the same period of 2016.
The company also said that it had seen a slight rise in its total investment portfolio, which went from $10.98 billion in the first quarter of 2016 to $11.34 billion in the same period of 2017.
“Assured Guaranty is off to another strong start this year, with outstanding first quarter results driven in part by our acquisition of MBIA UK,” said Dominic Frederico, president and CEO of Assured Guaranty.
“New business production was better than in any quarter since fourth quarter 2010, with a strong performance by US public finance, several major international transactions and solid structured finance originations. We advanced our capital management strategy by repurchasing $216 million in common shares while, at the same time, improving our financial strength by increasing our claims-paying resources by $391 million.”
