Assured Guaranty net income jumps 9%

Surety insurer Assured Guaranty’s net income rose 9% in the third quarter as new business production drove growth. 

The Bermuda-based insurer, one of the world’s leading bond insurers, had net income of $171 million benefiting from a $51 million positive return on losses and loss adjustment expenses, largely driven by improved recovery assumptions in US residential mortgage backed securities and positive development in public finance.

Net earned premiums edged up to $97 million from $95 million while net investment income fell to $92 million from $100 million.   

The company benefited in the third quarter of 2023 when it recorded a $255 million gain from the sale of its asset management business. 

“Assured Guaranty has continued to build both shareholder and policyholder value this year,” said Dominic Frederico, president and chief executive offiver. “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.”

He added: “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-US 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 authorised an additional $250 million of share repurchases.”

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