Assured Guaranty has reported a profit for the first three months of 2021, with the resolution of a dispute with Puerto Rico setting the stage for growth going forward.
Assured Guaranty reported net profit of $11 million for the first quarter 2021, compared to a $55 million loss reported in Q1 2020.
Net earned premiums for Q1 were $103 million, no change from the previous year.
Dominic Frederico, president and chief executive officer, said: “Assured Guaranty has now reached important new consensual settlement agreements relating to Puerto Rico that, combined with a previous agreement, will resolve over 93 percent of our net par outstanding of Puerto Rico exposures, once court-approved and implemented. Of our additional $241 million of net par, almost all relates to credits that have not missed any principal or interest payments.”
Frederico pointed to a resurgence in the global CLO market in Q1 that benefited the group’s asset management business. It issued two new CLOs and sold legacy CLO equity to third parties, earning it double the CLO management fees it had earned in the same period of 2020, he said.
Assured Guaranty, Results, Dominic Frederico