Assured Guaranty gets ratings affirmation
Ratings agency Moody's Investors Service has upgraded Bermuda-registered Assured Guaranty's insurance financial strength rating to A1 from A2, citing the "significant improvement in the credit quality of its insured portfolio".
Moody's said the outlook is stable.
The agency said: “The upgrade of AGC’s IFS rating to A1 reflects the company’s strong risk-adjusted capital adequacy, the significant improvement in the credit quality of its insured portfolio over the past several years and an increased strategic role within the Assured Guaranty group of companies as evidenced by higher new business production.
“During 2023, AGC wrote or assumed nearly $11 billion of gross par exposure, which bolsters the company’s flow of embedded earnings associated with its unearned premium base.”
Dominic Frederico, President and CEO of Assured Guaranty, said: “We are pleased that Moody’s has upgraded AGC’s rating and recognized the improved credit quality of its insured portfolio and strategic position within Assured Guaranty.
"Moody’s also acknowledged AGM’s leading position in the bond insurance market, strong capital profile, ability to generate ‘significant capital’ through our premium and investment earnings, and the resolution of a large majority of the firm’s Puerto Rico exposures.
“Assured Guaranty is poised to continue growing its insured portfolio to sustain and increase its store of unearned premiums, its future earnings power and its financial strength. Assured Guaranty continues to offer a uniquely beneficial value proposition to both issuers and fixed income investors.”
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