Assured Guaranty saw gross written premiums rise to $69 million in Q3 2019, up from $50 million in Q3 2018.
Dominic Frederico, president and CEO of Assured Guaranty, described it as “best third quarter for new business production since 2010.”
However, profits declined for the quarter year on year, with the company generating net profit of $69 million in Q3, down from $161 million in the same period of 2018.
The group said the decline was accentuated by the $31 million pretax gain related to the sale of its minority interest in TMC Bonds in 2018. The Q3 2019 figure was also weighed down by the lower net earned premiums, lower fair value gains on credit derivatives, higher loss and loss adjustment expenses (LAE), higher fair value losses on committed capital securities (CCS) and a higher effective tax rate.
Frederico said: “We continued our share repurchase program and, on October 1, completed a major step to diversify our opportunities and revenue sources by expanding into the asset management field. By completing our acquisition of BlueMountain Capital Management, we now have an asset management platform to provide a fee-based revenue source to complement our risk-based premium revenues while lowering the relative amount of capital at risk.”
Assured Guaranty, Dominic Frederico