Assured Guaranty, the financial guaranty insurance company, has reported a slight fall in its profits for 2015, posting a profit of $1.06 billion last year, compared with $1.09 billion in 2014, affected by an increase in loss adjustment expenses (LAE).
The company did achieve growth last year however, with its gross written premiums increasing to $17.34 billion last year, compared with $13.17 billion in 2014.
Assured Guaranty’s operating income for 2015 was also a record of $699 million, compared with 2014’s operating income of $491 million.
The firm also earned net investment income of $423 million last year, compared with $403 million in 2014. It’s loss and LAE expenses increased to $424 million in 2015 however, compared with $126 million in the previous year.
Economic loss development for 2015 was $319 million, which was driven mainly by changes in expected losses on various Puerto Rico exposures.
“Assured Guaranty completed another successful year with record operating income, while we also further strengthened our balance sheet, reduced insured leverage, and continued to optimise our capital structure," said Dominic Frederico, president and chief executive officer, Assured Guaranty.
"Additionally, we saw continued growth in demand for our core product, municipal bond insurance. Considering the near-record low interest-rate environment, we are confident this increased demand signals renewed market recognition of Assured Guaranty’s value proposition, financial strength and proven business model.”
Assured Guaranty, Full Year 2015 Results, Results, Dominic Frederico, Bermuda