Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)—February 27, 2025

ASSURED GUARANTY LTD.

(Exact name of registrant as specified in its charter)


Bermuda	001-32141	98-0429991
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

30 Woodbourne Avenue

Hamilton HM 08 Bermuda

(Address of principal executive offices)

Registrant’s telephone number, including area code: (441) 279-5700

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:		Trading Symbol(s)	Name of exchange on which registered
Common Shares	$0.01 par value per share	AGO	New York Stock Exchange
Assured Guaranty US Holdings Inc. 6.125% Senior Notes due 2028 (and the related guarantee of Registrant)		AGO/28	New York Stock Exchange
Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant)		AGO/31	New York Stock Exchange
Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant)		AGO/51	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02			Results of Operations and Financial Condition. On February 27, 2025 Assured Guaranty Ltd. issued a press release reporting its fourth quarter 2024 results and the availability of its December 31, 2024 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference herein.

Item 9.01			Financial Statements and Exhibits. (d) Exhibits

Exhibit Number			Description
99.1			Assured Guaranty Ltd. Press Release dated February 27, 2025 reporting fourth quarter 2024 results
99.2			December 31, 2024 Financial Supplement of Assured Guaranty Ltd.
104.1			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			Assured Guaranty Ltd.


			By:			/s/ BENJAMIN G. ROSENBLUM
						Name: Benjamin G. Rosenblum Title: Chief Financial Officer

DATE: February 27, 2025

Assured Guaranty Ltd. Reports Results for Fourth Quarter 2024 and Full Year 2024

Fourth Quarter 2024

•GAAP Highlights: Net income attributable to Assured Guaranty Ltd. was $18 million, or $0.35 per share(1), for fourth quarter 2024. Shareholders’ equity attributable to AGL per share was $108.80 as of December 31, 2024.

•Non-GAAP Highlights: Adjusted operating income(2) was $66 million, or $1.27 per share, for fourth quarter 2024. Adjusted operating shareholders’ equity(2) per share and adjusted book value (ABV)(2) per share were $114.75 and $170.12, respectively, as of December 31, 2024.

•New Business: Gross written premiums (GWP) were $186 million for fourth quarter 2024. Present value of new business production (PVP)(2) was $121 million for fourth quarter 2024.

•Return of Capital to Shareholders: Fourth quarter 2024 capital returned to shareholders was $107 million, consisting of the repurchase of 1.1 million shares for $91 million, and dividends of $16 million.

Full Year (FY) 2024

•GAAP Highlights: Net income attributable to AGL was $376 million, or $6.87 per share, for FY 2024.

•Non-GAAP Highlights: Adjusted operating income was $389 million, or $7.10 per share, for FY 2024.

•New Business: GWP were $440 million and PVP was $402 million for FY 2024.

•Return of Capital to Shareholders: FY 2024 capital returned to shareholders was $570 million, consisting of the repurchase of 6.2 million shares for $502 million, and dividends of $68 million.

Hamilton, Bermuda, February 27, 2025 -- Assured Guaranty Ltd. (NYSE: AGO) (AGL and, together with its consolidated entities, Assured Guaranty or the Company) announced today its financial results for the three-month period ended December 31, 2024 (fourth quarter 2024) and the year ended December 31, 2024 (FY 2024).

“Assured Guaranty generated strong results in 2024,” said Dominic Frederico, President and CEO. “We reached record year-end highs for shareholders’ equity per share, at $108.80, adjusted operating shareholders’ equity per share, at $114.75, and adjusted book value per share, at $170.12, while we continued to build value for Assured Guaranty’s shareholders and policyholders. Our share price rose by 20% during the year, as it did in 2023.

“We benefited from strong production across U.S. public finance, non-U.S. public finance and global structured finance businesses, resulting in $440 million of GWP and $402 million of PVP, led by the strongest U.S. public finance production in four years.

“In our capital management program, we repurchased 11% of the common shares that were outstanding on December 31, 2023, and met our 2024 target of repurchasing $500 million of our shares.”

(1) All per share information for net income and adjusted operating income is based on diluted shares.

(2) Please see “Explanation of Non-GAAP Financial Measures.”

Summary Financial Results

(in millions, except per share amounts)


	Quarter Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
GAAP (1)
Net income (loss) attributable to AGL	$	18	$	376	$	376	$	739
Net income (loss) attributable to AGL per diluted share	$	0.35	$	6.40	$	6.87	$	12.30
Weighted average diluted shares	51.9		58.3		54.3		59.6
Non-GAAP
Adjusted operating income (loss) (2)	$	66	$	338	$	389	$	648
Adjusted operating income per diluted share (2)	$	1.27	$	5.75	$	7.10	$	10.78
Weighted average diluted shares	51.9		58.3		54.3		59.6

Gain (loss) related to FG VIE and CIV consolidation(3) included in adjusted operating income	$	2	$	9	$	(6)	$	(21)
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income per share	$	0.04	$	0.15	$	(0.12)	$	(0.35)

Components of total adjusted operating income (loss)
Insurance segment	$	98	$	339	$	525	$	621
Asset Management segment	—		6		5		3
Corporate division	(34)		(16)		(135)		45
Other	2		9		(6)		(21)
Adjusted operating income (loss)	$	66	$	338	$	389	$	648


	As of
	December 31, 2024				December 31, 2023
	Amount		Per Share		Amount		Per Share

Shareholders’ equity attributable to AGL	$	5,495	$	108.80	$	5,713	$	101.63
Adjusted operating shareholders’ equity (2)	5,795		114.75		5,990		106.54
ABV (2)	8,592		170.12		8,765		155.92

Common Shares Outstanding	50.5				56.2

________________________________________________

(1) Generally accepted accounting principles in the United States of America.

(2) Please see “Explanation of Non-GAAP Financial Measures” at the end of this press release.

(3) The effect of consolidating financial guaranty (FG) variable interest entities (VIEs) and consolidated investment vehicles (CIVs).

On a per share basis, shareholders’ equity attributable to AGL increased 7.1% in 2024 primarily due to net income and the accretive effect of share repurchases, partially offset by dividends. On a per share basis, adjusted operating shareholders’ equity increased 7.7% in 2024, and ABV increased 9.1%, primarily due to adjusted operating income and the accretive effect of share repurchases, partially offset by dividends. In the case of ABV per share, GWP also contributed to the increase in 2024. See “Common Share Repurchases” on page 9.

Fourth Quarter 2024

Net income attributable to AGL in fourth quarter 2024 decreased compared with the three-month period ended December 31, 2023 (fourth quarter 2023), which included a $208 million benefit due to tax law changes: $189

million associated with Bermuda tax law changes, and $19 million related to New York State tax law changes. Additional factors that contributed to the decrease in net income attributable to AGL were foreign exchange remeasurement losses of $70 million in fourth quarter 2024 compared with gains of $44 million in fourth quarter 2023, and lower fair value gains on trading securities of $32 million.

Insurance Segment

The Insurance segment primarily consists of (i) the Company’s insurance subsidiaries that provide credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets, excluding the effect of VIE consolidations, and (ii) Assured Guaranty Inc.’s (AG, formerly Assured Guaranty Corp.) investment subsidiary.

Insurance Segment New Business Production

Insurance Segment

New Business Production

(in millions)


	Quarter Ended December 31,
	2024						2023
	GWP		PVP (1)		Gross Par Written (2)		GWP		PVP (1)		Gross Par Written (2)

Public finance - U.S.	$	77	$	77	$	8,419	$	82	$	83	$	6,712
Public finance - non-U.S.	102		23		436		42		45		874
Structured finance - U.S.	1		1		231		11		26		785
Structured finance - non-U.S.	6		20		2,140		1		1		304
Total	$	186	$	121	$	11,226	$	136	$	155	$	8,675

________________________________________________

(1) PVP, a non-GAAP financial measure, measures the value of the Insurance segment’s new business production for all contracts regardless of form or GAAP accounting model. See “Explanation of Non-GAAP Financial Measures” at the end of this press release. PVP is based on “close date,” when the transaction settles. PVP was discounted at 5.0% and 4.0% in fourth quarter 2024 and fourth quarter 2023, respectively.

(2) Gross Par Written is based on “close date,” when the transactions settles.

Total U.S. public finance GWP and PVP both declined in fourth quarter 2024 compared with fourth quarter 2023. GWP and PVP are affected by the mix of business, as well as market credit spreads, which were tighter in fourth quarter 2024 compared with fourth quarter 2023. The Company’s direct par written represented 61% of the total U.S. primary municipal market insured par sold in fourth quarter 2024, compared with 59% in fourth quarter 2023. The Company’s penetration of all municipal issuance was 6.1% in fourth quarter 2024, compared with 5.7% in fourth quarter 2023.

Non-U.S. public finance GWP increased while PVP decreased in fourth quarter 2024 compared with fourth quarter 2023. GWP in fourth quarter 2024 includes a change in the present value of future premiums on a large existing transaction, which was not a result of new business production and therefore excluded from PVP. New non-U.S. public finance business closed in fourth quarter 2024 included guarantees of transactions in the regulated utility and infrastructure sectors.

Structured finance GWP and PVP decreased in fourth quarter 2024 compared with fourth quarter 2023. In fourth quarter 2024, structured finance GWP and PVP primarily included guaranties of a portfolio of diversified real estate and subscription finance facilities.

Business activity in the non-U.S. public finance and structured finance markets often has long lead times and therefore may vary from period to period.

Insurance Segment Adjusted Operating Income

Insurance segment adjusted operating income was $98 million in fourth quarter 2024, compared with $339 million in fourth quarter 2023, which included a $189 million benefit as a result of Bermuda tax law changes. Additional factors that contributed to the decrease in the Insurance segment adjusted operating income in fourth quarter 2024 compared with fourth quarter 2023 were primarily lower fair value gains on trading securities and higher loss expense, partially offset by an increase in net earned premiums.

Insurance Segment Results

(in millions)


	Quarter Ended
	December 31,
	2024		2023
Segment revenues
Net earned premiums and credit derivative revenues	$	107	$	86
Net investment income	93		97
Fair value gains (losses) on trading securities	—		32
Foreign exchange gains (losses) on remeasurement and other income (loss)	(1)		18
Total segment revenues	199		233

Segment expenses
Loss expense (benefit)	31		7
Amortization of deferred acquisition costs (DAC)	6		3
Employee compensation and benefit expenses	42		42
Other operating expenses	27		29
Total segment expenses	106		81
Equity in earnings (losses) of investees	19		22
Segment adjusted operating income (loss) before income taxes	112		174
Less: Provision (benefit) for income taxes	14		(165)
Segment adjusted operating income (loss)	$	98	$	339

The components of Insurance segment’s premiums, losses and income from the investment portfolio are presented below.

Insurance Segment Net Earned Premiums and Credit Derivative Revenues

Insurance Segment

Net Earned Premiums and Credit Derivative Revenues

(in millions)


	Quarter Ended
	December 31,
	2024		2023
Scheduled net earned premiums and credit derivative revenues	$	90	$	83
Accelerations	17		3
Total	$	107	$	86

Insurance Segment Loss Expense (Benefit) and Roll Forward of Expected Losses

Loss expense is a function of net economic loss development (benefit) and the amortization of deferred premium revenue. The difference between loss expense and economic development in a given period is the amount of deferred premium revenue absorbing expected losses to be paid.

Insurance Segment

Loss Expense (Benefit)

(in millions)


	Quarter Ended
	December 31,
	2024		2023
Public finance	$	32	$	7
U.S. residential mortgage-backed securities (RMBS)	(2)		(1)
Other structured finance	1		1
Total	$	31	$	7

The table below presents the roll forward of net expected losses for fourth quarter 2024.

Roll Forward of Net Expected Loss to be Paid (Recovered)(1)

(in millions)


	Net Expected Loss to be Paid (Recovered) as of September 30, 2024		Net Economic Loss Development (Benefit)		Net (Paid) Recovered Losses		Net Expected Loss to be Paid (Recovered) as of December 31, 2024

Public finance	$	319	$	23	$	(226)	$	116
U.S. RMBS	(46)		(6)		9		(43)
Other structured finance	33		—		—		33
Total	$	306	$	17	$	(217)	$	106

________________________________________________

(1) Net economic loss development (benefit) represents the change in net expected loss to be paid (recovered) attributable to the effects of changes in the economic performance of insured transactions, changes in assumptions based on observed market trends, changes in discount rates, accretion of discount and the economic effects of loss mitigation efforts, each net of reinsurance. Net economic loss development (benefit) is the principal measure that the Company uses to evaluate the loss experience in its insured portfolio. Expected loss to be paid (recovered) includes all transactions insured by the Company, regardless of the accounting model prescribed under GAAP and without consideration of deferred premium revenue.

The net economic loss development in fourth quarter 2024 of $17 million was mainly attributable to healthcare and United Kingdom (U.K.) regulated utility exposures. The effect of changes in risk-free rates used to discount expected losses was a loss of $3 million. In fourth quarter 2024, substantially all of the net paid losses in public finance related to the satisfaction of all of the Company’s remaining direct liabilities in trusts established as part of the resolution of Puerto Rico Highway and Transportation Authority obligations.

Insurance Segment Income from Investment Portfolio

Insurance Segment

Income from Investment Portfolio

(in millions)


	Quarter Ended
	December 31,
	2024		2023
Net investment income	$	93	$	97
Fair value gains (losses) on trading securities (1)	—		32
Equity in earnings (losses) of investees (2)	19		22
Total	$	112	$	151

________________________________________________

(1) Primarily includes contingent value instruments (CVIs) issued by Puerto Rico. As of December 31, 2024 the fair value of CVIs was $123 million, compared with $318 million as of December 31, 2023.

(2) Equity in earnings (losses) of investees primarily relates to funds managed by Sound Point Capital Management, LP and certain of its investment management affiliates (Sound Point) and Assured Healthcare Partners LLC (AHP), and certain other managers. Investments in funds are reported on a one-quarter lag.

Net investment income, which represents interest income on available-for-sale fixed-maturity securities and short-term investments, decreased to $93 million in fourth quarter 2024 from $97 million in fourth quarter 2023, primarily due to accelerated accretion on certain loss mitigation securities in fourth quarter 2023, that did not recur in fourth quarter 2024. This decrease was partially offset by an increase in net investment income from a portfolio of CLO equity tranches. Beginning in fourth quarter 2024, CLO equity tranche investments are primarily held in the available-for-sale fixed-maturity securities portfolio, with changes in fair value reported in other comprehensive income, and net interest income reported in net income. The Company had previously held the CLO equity tranches in a Sound Point managed fund with changes in net asset value reported in “equity in earnings (losses) of investees” in the Insurance segment.

CLO equity tranches, regardless of how they are classified, are considered a component of the alternative investment strategy. Income from most other alternative investments is reported in “equity in earnings (losses) of investees,” and generally represents the change in net asset value. As of December 31, 2024, based on fair value, the Company had $884 million in alternative investments across a variety of asset classes: $760 million in the Insurance segment consisting primarily of Sound Point and AHP funds, and the remainder in the Corporate division. The inception-to-date annualized internal rate of return for all alternative investments was approximately 13%.

Equity in earnings (losses) of investees may be more volatile than net investment income on available-for-sale fixed-maturity securities and short-term investments. To the extent that the amounts invested in alternative fund investments increase and available-for-sale fixed-maturity securities decrease, net investment income may decrease and mark-to-market volatility related to equity in earnings (losses) of investees may increase.

Asset Management Segment

Since July 2023, the Company participates in the asset management business through its ownership interest in Sound Point. Asset management adjusted operating income primarily consists of the Company’s ownership interest in Sound Point, including the amortization of intangible assets, as well as certain ongoing performance fees. Sound Point’s results are reported on a one-quarter lag and are included in “equity in earnings (losses) of investees.”

Corporate Division

The Corporate division primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc. (AGMH), as well as other operating expenses attributed to holding company activities. Adjusted operating loss for the Corporate division was $34 million in fourth quarter 2024 compared with $16 million in fourth quarter 2023. The increase in the net loss attributable to the Corporate division is primarily due to two non-recurring benefits in fourth quarter 2023: a $19 million tax benefit attributable to a change in New York State tax law, and a $7 million adjustment to the pre-tax gain on the Sound Point transaction.

The Corporate division also includes equity in earnings (losses) of investees related to certain alternative investments, which Assured Guaranty Inc. transferred to AGMH as part of the share redemption that occurred on August 5, 2024. Equity in earnings of investees was $5 million in fourth quarter 2024.

Reconciliation to GAAP

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Reconciliation of Net Income (Loss) Attributable to AGL to

Adjusted Operating Income (Loss)

(in millions, except per share amounts)


	Quarter Ended
	December 31,
	2024				2023
	Total		Per Diluted Share		Total		Per Diluted Share
Net income (loss) attributable to AGL	$	18	$	0.35	$	376	$	6.40
Less pre-tax adjustments:
Realized gains (losses) on investments	7		0.13		6		0.11
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	3		0.05		(3)		(0.06)
Fair value gains (losses) on committed capital securities (CCS)	2		0.03		—		—
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and loss adjustment expense (LAE) reserves	(68)		(1.29)		42		0.71
Total pre-tax adjustments	(56)		(1.08)		45		0.76
Less tax effect on pre-tax adjustments	8		0.16		(7)		(0.11)
Adjusted operating income (loss)	$	66	$	1.27	$	338	$	5.75

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	2	$	0.04	$	9	$	0.15

Foreign exchange gains (losses) primarily relate to remeasurement of premiums receivable and are mainly due to changes in the exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

Full Year 2024

Net income attributable to AGL in FY 2024 decreased to $376 million from $739 million in FY 2023, which included several large non-recurring benefits: a $175 million after-tax gain (net of expenses) associated with the Sound Point and AHP transactions and a $208 million benefit related to Bermuda and New York State tax law changes. Additional factors contributing to the decrease in net income attributable to AGL primarily included: a $90 million reduction in fair value gains on credit derivatives and an $80 million decline in foreign exchange remeasurement gains, which were offset by a decrease in loss expense (which was a benefit in FY 2024 of $26 million compared with a loss of $162 million in FY 2023), and a $59 million increase in net earned premiums.

Adjusted operating income in FY 2024 was $389 million, compared with $648 million in FY 2023, which included the benefits mentioned above for the Sound Point and AHP transactions and the tax law changes. Offsetting the decrease in adjusted operating income due to non-recurring items in FY 2023, was a benefit in loss expense in FY 2024 compared with the loss expense in FY 2023, and increased net earned premiums.

Insurance Segment

New Business Production

(in millions)


	Year Ended December 31,
	2024						2023
	GWP		PVP (1)		Gross Par Written		GWP		PVP (1)		Gross Par Written

Public finance - U.S.	$	259	$	270	$	23,758	$	211	$	212	$	22,464
Public finance - non-U.S.	136		67		2,673		82		83		1,544
Structured finance - U.S.	20		25		1,476		59		68		1,886
Structured finance - non-U.S.	25		40		3,922		5		41		3,066
Total	$	440	$	402	$	31,829	$	357	$	404	$	28,960

________________________________________________

(1) PVP was discounted at 5.0% and 4.0% in 2024 and 2023, respectively.

U.S. public finance GWP and PVP in FY 2024 were higher than GWP and PVP in FY 2023, primarily due to a large transportation revenue transaction written in 2024. The Company’s direct par written represented 58% of the total U.S. primary municipal market insured par sold in FY 2024, compared with 61% in FY 2023. The Company’s penetration of all municipal issuance was 4.8% in FY 2024 compared with 5.4% in FY 2023.

Non-U.S. public finance GWP increased while PVP decreased in FY 2024 compared with FY 2023. GWP in FY 2024 includes a change in the present value of future premiums on a large existing transaction, which was not a result of new business production and therefore excluded from PVP. New business in FY 2024 primarily included secondary market guaranties of several U.K. regulated utility and airport transactions, as well as new and renewed liquidity guarantees in the infrastructure sector.

In FY 2024, structured finance GWP and PVP decreased compared with FY 2023. Structured finance GWP and PVP in FY 2024 were primarily attributable to an insurance securitization, a bank balance sheet relief transaction, a guaranty of a portfolio of diversified real estate and subscription finance transactions.

Reconciliation to GAAP

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Reconciliation of Net Income (Loss) Attributable to AGL to

Adjusted Operating Income (Loss)

(in millions, except per share amounts)


	Year Ended
	December 31,
	2024				2023
	Total		Per Diluted Share		Total		Per Diluted Share
Net income (loss) attributable to AGL	$	376	$	6.87	$	739	$	12.30
Less pre-tax adjustments:
Realized gains (losses) on investments	9		0.16		(14)		(0.23)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	14		0.27		106		1.75
Fair value gains (losses) on CCS	(10)		(0.19)		(35)		(0.57)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(26)		(0.47)		51		0.84
Total pre-tax adjustments	(13)		(0.23)		108		1.79
Less tax effect on pre-tax adjustments	—		—		(17)		(0.27)
Adjusted operating income (loss)	$	389	$	7.10	$	648	$	10.78

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	(6)	$	(0.12)	$	(21)	$	(0.35)

Non-credit impairment-related unrealized fair value gains on credit derivatives in FY 2024 were generated primarily due to the termination of certain structured finance policies and generally lower collateral asset spreads. Non-credit impairment-related unrealized fair value gains on credit derivatives in FY 2023 were generated primarily as a result of generally lower collateral asset spreads.

Fair value losses on CCS in FY 2024 and FY 2023 were primarily due to a tightening in market spreads. Fair value gains (losses) of CCS are heavily affected by, and in part fluctuate with, changes in market spreads and interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

Foreign exchange gains (losses) in FY 2024 and FY 2023 primarily relate to remeasurement of premiums receivable and are mainly due to changes in exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

Common Share Repurchases

On November 8, 2024, AGL’s Board of Directors authorized the repurchase of an additional $250 million of the Company’s common shares. From the beginning of the repurchase program in 2013 through February 27, 2025, the Company has repurchased a total of 151 million common shares for $5.4 billion, representing approximately 78% of the total shares outstanding as of January 1, 2013. As of February 27, 2025, the Company was authorized to purchase approximately $276 million of its common shares. These repurchases can be made from time to time in the open market or in privately negotiated transactions.

Summary of Share Repurchases

(in millions, except per share amounts)


	Amount (1)		Number of Shares	Average Price Per Share

2024 (January 1 - March 31)	$	129	1.54	$	84.07
2024 (April 1 - June 30)	151		1.93	78.50
2024 (July 1 - September 30)	131		1.66	78.87
2024 (October 1 - December 31)	91		1.05	86.11
Total 2024	$	502	6.18	81.28

2025 (January 1 - February 27)	$	76	0.83	$	91.53

________________________________________________

(1) Excludes commissions and excise taxes.

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board of Directors at any time. It does not have an expiration date.

Subsequent Event

Following the exhaustion of LBIE’s appeals, the Company will recognize a gain in the first quarter of 2025 of approximately $103 million, which represents the full satisfaction of the judgment it was awarded and its claims for attorneys’ fees, expenses and interest in connection with this litigation.

Financial Statements

Consolidated Statements of Operations (unaudited)

(in millions)


	Quarter Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Revenues
Net earned premiums	$	103	$	83	$	403	$	344
Net investment income	93		95		340		365
Asset management fees	—		—		—		53
Net realized investment gains (losses)	7		6		9		(14)
Fair value gains (losses) on credit derivatives	5		(1)		24		114
Fair value gains (losses) on CCS	2		—		(10)		(35)
Fair value gains (losses) on FG VIEs	—		10		(11)		8
Fair value gains (losses) on CIVs	15		28		69		88
Foreign exchange gains (losses) on remeasurement	(70)		44		(27)		53
Fair value gains (losses) on trading securities	—		32		52		74
Gain on sale of asset management subsidiaries	—		7		—		262
Other income (loss)	1		23		23		61
Total revenues	156		327		872		1,373
Expenses
Loss and LAE (benefit)	28		3		(26)		162
Interest expense	23		23		91		90
Amortization of DAC	6		3		20		13
Employee compensation and benefit expenses	49		52		202		251
Other operating expenses	35		47		159		217
Total expenses	141		128		446		733
Income (loss) before income taxes and equity in earnings (losses) of investees	15		199		426		640
Equity in earnings (losses) of investees	15		3		62		28
Income (loss) before income taxes	30		202		488		668
Less: Provision (benefit) for income taxes	8		(177)		96		(93)
Net income (loss)	22		379		392		761
Less: Noncontrolling interests	4		3		16		22
Net income (loss) attributable to AGL	$	18	$	376	$	376	$	739

Consolidated Balance Sheets (unaudited)

(in millions)


	As of
	December 31, 2024		December 31, 2023
Assets
Investments:
Fixed-maturity securities, available-for-sale, at fair value	$	6,369	$	6,307
Fixed-maturity securities, trading, at fair value	147		318
Short-term investments, at fair value	1,221		1,661
Other invested assets	926		829
Total investments	8,663		9,115
Cash	121		97
Premiums receivable, net of commissions payable	1,551		1,468
DAC	176		161
Salvage and subrogation recoverable	396		298
FG VIEs’ assets	147		328
Assets of CIVs	101		366
Other assets	746		706
Total assets	$	11,901	$	12,539

Liabilities
Unearned premium reserve	$	3,719	$	3,658
Loss and LAE reserve	268		376
Long-term debt	1,699		1,694
FG VIEs’ liabilities, at fair value	164		554
Other liabilities	498		492
Total liabilities	6,348		6,774

Shareholders’ equity
Common shares	1		1
Retained earnings	5,878		6,070
Accumulated other comprehensive income (loss)	(385)		(359)
Deferred equity compensation	1		1
Total shareholders’ equity attributable to AGL	5,495		5,713
Nonredeemable noncontrolling interests	58		52
Total shareholders’ equity	5,553		5,765
Total liabilities and shareholders’ equity	$	11,901	$	12,539

Explanation of Non-GAAP Financial Measures

The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.

The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and CIVs in which certain subsidiaries invest.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.

Management of the Company and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (1) adjusted operating income, further adjusted to remove the effect of FG VIE and CIV consolidation; (2) adjusted operating shareholders’ equity, further adjusted to remove the effect of FG VIE and CIV consolidation; (3) adjusted book value per share, further adjusted to remove the effect of FG VIE and CIV consolidation; and (4) PVP.

Management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or adjusted book value, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares.

Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.

The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented below.

Adjusted Operating Income

Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

1) Elimination of realized gains (losses) on the Company’s investments that are recognized in net income (loss) attributable to AGL, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.

2) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income (loss) attributable to AGL, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.

3) Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income (loss) attributable to AGL. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

4) Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income (loss) attributable to AGL. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

5) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

See “Reconciliation to GAAP” above for a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Adjusted Operating Shareholders’ Equity and Adjusted Book Value

Management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:

1) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

2) Elimination of fair value gains (losses) on the Company’s CCS. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not recognize an economic gain or loss.

4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Management uses adjusted book value, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. Adjusted book value per share, further adjusted for FG VIE and CIV consolidation (core adjusted book value), is one of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors. Management believes that adjusted book value is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses. Adjusted book value is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:

1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2) Addition of the net present value of estimated net future revenue. See below.

3) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed, which are not reflected in GAAP equity.

4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

The unearned premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.

Reconciliation of Shareholders’ Equity Attributable to AGL to

Adjusted Operating Shareholders’ Equity and ABV

(in millions, except per share amounts)


	As of
	December 31, 2024				December 31, 2023
	Total		Per Share		Total		Per Share
Shareholders’ equity attributable to AGL	$	5,495	$	108.80	$	5,713	$	101.63
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	49		0.96		34		0.61
Fair value gains (losses) on CCS	2		0.05		13		0.22
Unrealized gain (loss) on investment portfolio	(397)		(7.86)		(361)		(6.40)
Less taxes	46		0.90		37		0.66
Adjusted operating shareholders’ equity	5,795		114.75		5,990		106.54
Pre-tax adjustments:
Less: DAC	176		3.47		161		2.87
Plus: Net present value of estimated net future revenue	202		3.99		199		3.54
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed	3,473		68.75		3,436		61.12
Plus taxes	(702)		(13.90)		(699)		(12.41)
ABV	$	8,592	$	170.12	$	8,765	$	155.92

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity	$	—	$	0.01	$	5	$	0.07
ABV	(6)		(0.13)		—		—

Shares outstanding at the end of the period	50.5				56.2

Net Present Value of Estimated Net Future Revenue

Management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.

PVP or Present Value of New Business Production

Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the

Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.

Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.

Reconciliation of GWP to PVP

(in millions)


	Quarter Ended December 31, 2024
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	77	$	102	$	1	$	6	$	186
Less: Installment GWP and other GAAP adjustments (1)	44		101		1		6		152
Upfront GWP	33		1		—		—		34
Plus: Installment premiums and other (2)	44		22		1		20		87
PVP	$	77	$	23	$	1	$	20	$	121


	Quarter Ended December 31, 2023
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	82	$	42	$	11	$	1	$	136
Less: Installment GWP and other GAAP adjustments(1)	54		37		11		1		103
Upfront GWP	28		5		—		—		33
Plus: Installment premiums and other (2)	55		40		26		1		122
PVP	$	83	$	45	$	26	$	1	$	155


	Year Ended December 31, 2024
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	259	$	136	$	20	$	25	$	440
Less: Installment GWP and other GAAP adjustments(1)	143		115		17		25		300
Upfront GWP	116		21		3		—		140
Plus: Installment premiums and other (2)	154		46		22		40		262
PVP	$	270	$	67	$	25	$	40	$	402


	Year Ended December 31, 2023
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	211	$	82	$	59	$	5	$	357
Less: Installment GWP and other GAAP adjustments(1)	109		74		59		5		247
Upfront GWP	102		8		—		—		110
Plus: Installment premiums and other (2)	110		75		68		41		294
PVP	$	212	$	83	$	68	$	41	$	404

________________________________

(1) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

(2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

Conference Call and Webcast Information

The Company will host a conference call for investors at 8:00 a.m. Eastern Time (9:00 a.m. Atlantic Time) on Friday, February 28, 2025. The conference call will be available via live webcast in the Investor Information section of the Company’s website at AssuredGuaranty.com or by dialing 1-833-470-1428 (in the U.S.) or 1-404-975-4839 (International); the access code is 680063.

A replay of the conference call will be available approximately three hours after the call ends. The webcast replay will be available for 90 days in the Investor Information section of the Company’s website at AssuredGuaranty.com, and the telephone replay will be available for 30 days by dialing 1-866-813-9403 (in the U.S.) or 1-929-458-6194 (International); the access code is 810694.

Please refer to Assured Guaranty’s December 31, 2024 Financial Supplement, which is posted on the Company’s website at assuredguaranty.com/agldata, for more information on the Company’s financial guaranty portfolio, investment portfolio and other items. In addition, the Company is posting at assuredguaranty.com/presentations its “December 31, 2024 Equity Investor Presentation.”

The Company plans to post by early next week on its website at assuredguaranty.com/agldata the following:

•“Public Finance Transactions in 4Q 2024,” which lists the U.S. public finance new issues insured by the Company in fourth quarter 2024, and

•“Structured Finance Transactions at December 31, 2024,” which lists the Company’s structured finance exposure as of that date.

In addition, the Company will post on its website, when available, Assured Guaranty Inc.’s financial supplement and its “Fixed Income Presentation” for the current quarter. Those documents will be furnished to the Securities and Exchange Commission in a Current Report on Form 8-K.

# # #

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and non-U.S. public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point Capital Management, LP and certain of its investment management affiliates. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among factors that could cause actual results to differ materially are:

(i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; (ii) geopolitical risk, terrorism and political violence risk, including those arising out of Russia’s invasion of Ukraine and intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East and confrontation over Iran’s nuclear program, the polarized political environment in the United States (U.S.), and U.S. – China strategic competition; (iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets, including the markets in which the Company participates; (iv) the possibility of a U.S. government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (v) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S. and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (vi) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (vii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments, their related authorities, public corporations and other obligors that Assured Guaranty insures or reinsures; (viii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including below-investment-grade (BIG) healthcare, U.K. regulated utilities, European renewable energy, and Puerto Rico Electric Power Authority (PREPA) exposures; (ix) the impact of Assured Guaranty satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (x) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences; (xi) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (xii) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (xiii) the impacts of Assured Guaranty’s transaction with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies and the obligors it insures and on Assured Guaranty’s Asset Management segment results; (xiv) the possibility that mergers, acquisitions, divestitures and other strategic transactions made by Assured Guaranty, including the transactions with Sound Point and/or Assured Healthcare Partners LLC (AHP) and/or merger of Assured Guaranty Municipal Corp. (AGM) with and into Assured Guaranty Inc. (AG, formerly Assured Guaranty Corp.), do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (xv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a minority interest; (xvi) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities, its consolidated investment vehicles (CIVs) and consolidated variable interest entities (VIEs); (xvii) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions

that AGL’s insurance subsidiaries have insured; (xviii) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (xix) changes in applicable accounting policies or practices; (xx) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (xxi) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences; (xxii) difficulties with the execution of Assured Guaranty’s business strategy; (xxiii) loss of key personnel; (xxiv) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (xxv) natural or man-made catastrophes; (xxvi) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (xxvii) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (xxviii) other risks and uncertainties that have not been identified at this time; and (xxix) management’s response to these factors.

Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of February 27, 2025, and Assured Guaranty undertakes no obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contact Information

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

212-339-0861

rtucker@agltd.com

Ashweeta Durani

Director, Media Relations

212-408-6042

adurani@agltd.com

Assured Guaranty Ltd.

December 31, 2024

Financial Supplement


Table of Contents		Page
	Selected Financial Highlights	1
	Condensed Consolidated Statements of Operations (unaudited)	3
	Condensed Consolidated Balance Sheets (unaudited)	4
	Selected Financial Highlights GAAP to Non-GAAP Reconciliations	5
	Income Components	8
	Fixed-Maturity Securities, Short-Term Investments and Cash	12
	Investment Portfolio, Cash and CIVs	13
	Income from Investment Portfolio and CIVs	15
	Insurance Segment:	17
	Insurance Segment Results	18
	Claims-Paying Resources	19
	New Business Production	20
	Gross Par Written	21
	New Business Production by Quarter	23
	Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues	24
	Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid	25
	Loss Measures	26
	Net Expected Loss to be Expensed	27
	Financial Guaranty Profile	28
	Specialty Business	31
	Expected Amortization of Net Par Outstanding	32
	Puerto Rico Profile	33
	Direct Pooled Corporate Obligations Profile	34
	Below Investment Grade Exposures	35
	Largest Exposures by Sector	38
	Asset Management Segment	41
	Asset Management Results	42
	Corporate Division	43
	Corporate Results	44
	Other	45
	Other Results	46
	Summary	48
	Summary of Financial and Statistical Data	49
	Summary of GAAP to Non-GAAP Reconciliations	50
	Glossary	52
	Non-GAAP Financial Measures	55

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2024.

Cautionary Statement Regarding Forward Looking Statements:

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; (ii) geopolitical risk, terrorism and political violence risk, including those arising out of Russia’s invasion of Ukraine and intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East and confrontation over Iran’s nuclear program, the polarized political environment in the United States (U.S.), and U.S. – China strategic competition; (iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets, including the markets in which the Company participates; (iv) the possibility of a U.S. government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (v) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S. and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (vi) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (vii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments, their related authorities, public corporations and other obligors that Assured Guaranty insures or reinsures; (viii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including below-investment-grade (BIG) healthcare, U.K. regulated utilities, European renewable energy, and Puerto Rico Electric Power Authority (PREPA) exposures; (ix) the impact of Assured Guaranty satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (x) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences; (xi) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (xii) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (xiii) the impacts of Assured Guaranty’s transaction with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies and the obligors it insures and on Assured Guaranty’s Asset Management segment results; (xiv) the possibility that mergers, acquisitions, divestitures and other strategic transactions made by Assured Guaranty, including the transactions with Sound Point and/or Assured Healthcare Partners LLC (AHP) and/or merger of Assured Guaranty Municipal Corp. (AGM) with and into Assured Guaranty Inc. (AG, formerly Assured Guaranty Corp.), do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (xv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a minority interest; (xvi) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities, its consolidated investment vehicles (CIVs) and consolidated variable interest entities (VIEs); (xvii) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; (xviii) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (xix) changes in applicable accounting policies or practices; (xx) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (xxi) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences; (xxii) difficulties with the execution of Assured Guaranty’s business strategy; (xxiii) loss of key personnel; (xxiv) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (xxv) natural or man-made catastrophes; (xxvi) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (xxvii) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (xxviii) other risks and uncertainties that have not been identified at this time; and (xxix) management’s response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Assured Guaranty Ltd.

Selected Financial Highlights (1 of 2)

(dollars in millions, except per share amounts)


	Three Months Ended						Year Ended
	December 31,						December 31,
	2024			2023			2024			2023
GAAP (1) Highlights
Net income (loss) attributable to AGL	$	18		$	376		$	376		$	739
Net income (loss) attributable to AGL per diluted share	$	0.35		$	6.40		$	6.87		$	12.30
Weighted average shares outstanding
Basic shares outstanding	50.9			57.0			53.3			58.4
Diluted shares outstanding	51.9			58.3			54.3			59.6
Effective tax rate on net income	26.6		%	(87.9)		%	19.7		%	(13.9)		%
GAAP return on equity (ROE) (4)	1.3		%	27.5		%	6.7		%	13.7		%

Non-GAAP Highlights (2)
Adjusted operating income (loss)	$	66		$	338		$	389		$	648
Adjusted operating income (loss) per diluted share (2)	$	1.27		$	5.75		$	7.10		$	10.78
Weighted average diluted shares outstanding	51.9			58.3			54.3			59.6
Effective tax rate on adjusted operating income (3)	19.4		%	(117.0)		%	19.2		%	(19.6)		%
Adjusted operating ROE (2)(4)	4.5		%	23.1		%	6.6		%	11.2		%

Components of adjusted operating income (loss) (2)
Insurance segment	$	98		$	339		$	525		$	621
Asset Management segment	—			6			5			3
Corporate division	(34)			(16)			(135)			45
Other (6)	2			9			(6)			(21)
Adjusted operating income (loss)	$	66		$	338		$	389		$	648

Insurance Segment
Gross written premiums (GWP)	$	186		$	136		$	440		$	357
Present value of new business production (PVP) (2)	121			155			402			404
Gross par written	11,226			8,675			31,829			28,960


Effect of refundings and terminations on GAAP measures:
Net earned premiums, pre-tax	$	17		$	3		$	73		$	29
Fair value gains (losses) of credit derivatives, pre-tax	—			—			—			1
Net income effect	14			2			57			23
Net income per diluted share	0.27			0.04			1.05			0.39

Effect of refundings and terminations on non-GAAP measures:
Operating net earned premiums and credit derivative revenues (5), pre-tax	$	17		$	3		$	73		$	30
Adjusted operating income (5) effect	14			2			57			23
Adjusted operating income per diluted share (5)	0.27			0.04			1.05			0.39

1) Accounting principles generally accepted in the United States of America (GAAP).

2) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

3) Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.

4) Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.

5) Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums and credit derivative revenues) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

6) Represents the effect of consolidating financial guaranty variable interest entities (FG VIEs) and CIVs (FG VIE and CIV consolidation).

Assured Guaranty Ltd.

Selected Financial Highlights (2 of 2)

(dollars in millions, except per share amounts)


	As of
	December 31, 2024				December 31, 2023
	Amount		Per Share		Amount		Per Share
Shareholders’ equity attributable to AGL	$	5,495	$	108.80	$	5,713	$	101.63
Adjusted operating shareholders’ equity (1)	5,795		114.75		5,990		106.54
Adjusted book value (1)	8,592		170.12		8,765		155.92
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity	—		0.01		5		0.07
Adjusted book value	(6)		(0.13)		—		—

Shares outstanding at the end of period	50.5				56.2

Exposure
Financial guaranty net debt service outstanding	$	415,966			$	397,636
Financial guaranty net par outstanding:
Investment grade	$	251,370			$	243,716
Below-investment-grade (BIG)	10,182				5,437
Total	261,552				249,153

Claims-paying resources (2)	$	10,211			$	10,665

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2) See page 19 for additional detail on claims-paying resources.

Assured Guaranty Ltd.

Condensed Consolidated Statements of Operations (unaudited)

(dollars in millions, except per share amounts)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Revenues
Net earned premiums	$	103	$	83	$	403	$	344
Net investment income	93		95		340		365
Asset management fees	—		—		—		53
Net realized investment gains (losses)	7		6		9		(14)
Fair value gains (losses) on credit derivatives	5		(1)		24		114
Fair value gains (losses) on committed capital securities (CCS)	2		—		(10)		(35)
Fair value gains (losses) on FG VIEs	—		10		(11)		8
Fair value gains (losses) on CIVs	15		28		69		88
Foreign exchange gains (losses) on remeasurement	(70)		44		(27)		53
Fair value gains (losses) on trading securities	—		32		52		74
Gain on sale of asset management subsidiaries	—		7		—		262
Other income (loss)	1		23		23		61
Total revenues	156		327		872		1,373
Expenses
Loss and loss adjustment expense (LAE) (benefit)	28		3		(26)		162
Interest expense	23		23		91		90
Amortization of deferred acquisition costs (DAC)	6		3		20		13
Employee compensation and benefit expenses	49		52		202		251
Other operating expenses	35		47		159		217
Total expenses	141		128		446		733
Income (loss) before income taxes and equity in earnings (losses) of investees	15		199		426		640
Equity in earnings (losses) of investees	15		3		62		28
Income (loss) before income taxes	30		202		488		668
Less: Provision (benefit) for income taxes	8		(177)		96		(93)
Net income (loss)	22		379		392		761
Less: Noncontrolling interests	4		3		16		22
Net income (loss) attributable to AGL	$	18	$	376	$	376	$	739

Earnings per share:
Basic	$	0.36	$	6.54	$	7.01	$	12.54
Diluted	$	0.35	$	6.40	$	6.87	$	12.30

Assured Guaranty Ltd.

Condensed Consolidated Balance Sheets (unaudited)

(dollars in millions)


	As of
	December 31,		December 31,
	2024		2023
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	6,369	$	6,307
Fixed-maturity securities, trading, at fair value	147		318
Short-term investments, at fair value	1,221		1,661
Other invested assets	926		829
Total investments	8,663		9,115
Cash	121		97
Premiums receivable, net of commissions payable	1,551		1,468
DAC	176		161
Salvage and subrogation recoverable	396		298
FG VIEs’ assets	147		328
Assets of CIVs	101		366
Other assets	746		706
Total assets	$	11,901	$	12,539

Liabilities
Unearned premium reserve	$	3,719	$	3,658
Loss and LAE reserve	268		376
Long-term debt	1,699		1,694
FG VIEs’ liabilities, at fair value	164		554
Other liabilities	498		492
Total liabilities	6,348		6,774

Shareholders’ equity
Common shares	1		1
Retained earnings	5,878		6,070
Accumulated other comprehensive income (loss)	(385)		(359)
Deferred equity compensation	1		1
Total shareholders’ equity attributable to AGL	5,495		5,713
Nonredeemable noncontrolling interests	58		52
Total shareholders’ equity	5,553		5,765
Total liabilities and shareholders’ equity	$	11,901	$	12,539

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (1 of 3)

(dollars in millions, except per share amounts)


Adjusted Operating Income Reconciliation	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023

Net income (loss) attributable to AGL	$	18	$	376	$	376	$	739
Less pre-tax adjustments:
Realized gains (losses) on investments	7		6		9		(14)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	3		(3)		14		106
Fair value gains (losses) on CCS	2		—		(10)		(35)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(68)		42		(26)		51
Total pre-tax adjustments	(56)		45		(13)		108
Less tax effect on pre-tax adjustments	8		(7)		—		(17)
Adjusted operating income (loss)	$	66	$	338	$	389	$	648

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	2	$	9	$	(6)	$	(21)

Components of adjusted operating income:
Segments:
Insurance	$	98	$	339	$	525	$	621
Asset Management	—		6		5		3
Total segments	98		345		530		624
Corporate division	(34)		(16)		(135)		45
Other	2		9		(6)		(21)
Adjusted operating income (loss)	$	66	$	338	$	389	$	648


Per diluted share:
Net income (loss) attributable to AGL	$	0.35	$	6.40	$	6.87	$	12.30
Less pre-tax adjustments:
Realized gains (losses) on investments	0.13		0.11		0.16		(0.23)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	0.05		(0.06)		0.27		1.75
Fair value gains (losses) on CCS	0.03		—		(0.19)		(0.57)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(1.29)		0.71		(0.47)		0.84
Total pre-tax adjustments	(1.08)		0.76		(0.23)		1.79
Less tax effect on pre-tax adjustments	0.16		(0.11)		—		(0.27)
Adjusted operating income (loss)	$	1.27	$	5.75	$	7.10	$	10.78

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	0.04	$	0.15	$	(0.12)	$	(0.35)

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (2 of 3)

(dollars in millions)


ROE Reconciliation and Calculation
	December 31,		September 30,			December 31,			September 30,			December 31,
	2024		2024			2023			2023			2022
Shareholders’ equity attributable to AGL	$	5,495	$	5,728		$	5,713		$	5,252		$	5,064
Adjusted operating shareholders’ equity	5,795		5,875			5,990			5,735			5,543
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders’ equity	—		(5)			5			4			17

			Three Months Ended						Year Ended
			December 31,						December 31,
			2024			2023			2024			2023
Net income (loss) attributable to AGL			$	18		$	376		$	376		$	739
Adjusted operating income (loss)			66			338			389			648

Average shareholders’ equity attributable to AGL			$	5,612		$	5,483		$	5,604		$	5,389
Average adjusted operating shareholders’ equity			5,835			5,863			5,893			5,767
Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity			(3)			5			3			11

GAAP ROE (1)			1.3		%	27.5		%	6.7		%	13.7		%
Adjusted operating ROE (1)			4.5		%	23.1		%	6.6		%	11.2		%

1) Quarterly ROE calculations represent annualized returns.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (3 of 3)

(dollars in millions)


	As of
	December 31,		September 30,		December 31,		September 30,		December 31,
	2024		2024		2023		2023		2022
Reconciliation of shareholders’ equity attributable to AGL to adjusted book value:
Shareholders’ equity attributable to AGL	$	5,495	$	5,728	$	5,713	$	5,252	$	5,064
Less pre-tax reconciling items:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	49		45		34		38		(71)
Fair value gains (losses) on CCS	2		1		13		12		47
Unrealized gain (loss) on investment portfolio	(397)		(211)		(361)		(609)		(523)
Less taxes	46		18		37		76		68
Adjusted operating shareholders’ equity	5,795		5,875		5,990		5,735		5,543
Pre-tax reconciling items:
Less: DAC	176		172		161		158		147
Plus: Net present value of estimated net future revenue	202		189		199		190		157
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed	3,473		3,370		3,436		3,404		3,428
Plus taxes	(702)		(680)		(699)		(612)		(602)
Adjusted book value	$	8,592	$	8,582	$	8,765	$	8,559	$	8,379

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $0, $(1), $1, $1, and $4)	$	—	$	(5)	$	5	$	4	$	17
Adjusted book value (net of tax provision (benefit) of $(2), $(2), $0, $(1), and $3)	$	(6)	$	(9)	$	—	$	(2)	$	11

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Income Components (1 of 4)

(in millions)

Components of Income for the Three Months Ended December 31, 2024


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	104	$	—	$	—	$	(1)	$	—	$	103
Net investment income	93		—		4		(4)		—		93
Net realized investment gains (losses)	—		—		—		—		7		7
Fair value gains (losses) on credit derivatives (2)	3		—		—		—		2		5
Fair value gains (losses) on CCS	—		—		—		—		2		2
Fair value gains (losses) on FG VIEs	—		—		—		—		—		—
Fair value gains (losses) on CIVs	—		—		—		15		—		15
Foreign exchange gains (losses) on remeasurement	(2)		—		—		—		(68)		(70)
Fair value gains (losses) on trading securities	—		—		—		—		—		—
Other income (loss)	1		—		—		—		—		1
Total revenues	199		—		4		10		(57)		156

Expenses
Loss and LAE (benefit) (3)	31		—		—		(2)		(1)		28
Interest expense	—		—		26		(3)		—		23
Amortization of DAC	6		—		—		—		—		6
Employee compensation and benefit expenses	42		—		7		—		—		49
Other operating expenses	27		—		8		—		—		35
Total expenses	106		—		41		(5)		(1)		141
Equity in earnings (losses) of investees	19		—		5		(9)		—		15
Less: Provision (benefit) for income taxes	14		—		2		—		(8)		8
Less: Noncontrolling interests	—		—		—		4		—		4
Total	$	98	$	—	$	(34)	$	2	$	(48)	$	18

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (2 of 4)

(in millions)

Components of Income for the Three Months Ended December 31, 2023


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	83	$	—	$	—	$	—	$	—	$	83
Net investment income	97		—		2		(4)		—		95
Asset management fees	—		—		—		—		—		—
Net realized investment gains (losses)	—		—		—		—		6		6
Fair value gains (losses) on credit derivatives (2)	3		—		—		—		(4)		(1)
Fair value gains (losses) on CCS	—		—		—		—		—		—
Fair value gains (losses) on FG VIEs	—		—		—		10		—		10
Fair value gains (losses) on CIVs	—		—		—		28		—		28
Foreign exchange gains (losses) on remeasurement	2		—		—		—		42		44
Fair value gains (losses) on trading securities	32		—		—		—		—		32
Gain on sale of asset management subsidiaries	—		—		7		—		—		7
Other income (loss)	16		5		3		(1)		—		23
Total revenues	233		5		12		33		44		327

Expenses
Loss and LAE (benefit) (3)	7		—		—		(3)		(1)		3
Interest expense	—		—		26		(3)		—		23
Amortization of DAC	3		—		—		—		—		3
Employee compensation and benefit expenses	42		—		10		—		—		52
Other operating expenses	29		3		15		—		—		47
Total expenses	81		3		51		(6)		(1)		128
Equity in earnings (losses) of investees	22		5		—		(24)		—		3
Less: Provision (benefit) for income taxes	(165)		1		(23)		3		7		(177)
Less: Noncontrolling interests	—		—		—		3		—		3
Total	$	339	$	6	$	(16)	$	9	$	38	$	376

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (3 of 4)

(in millions)

Components of Income for the Year Ended December 31, 2024


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	406	$	—	$	—	$	(3)	$	—	$	403
Net investment income	339		—		14		(13)		—		340
Asset management fees	—		—		—		—		—		—
Net realized investment gains (losses)	—		—		—		—		9		9
Fair value gains (losses) on credit derivatives (2)	11		—		—		—		13		24
Fair value gains (losses) on CCS	—		—		—		—		(10)		(10)
Fair value gains (losses) on FG VIEs	—		—		—		(11)		—		(11)
Fair value gains (losses) on CIVs	—		—		—		69		—		69
Foreign exchange gains (losses) on remeasurement	(1)		—		—		—		(26)		(27)
Fair value gains (losses) on trading securities	52		—		—		—		—		52
Other income (loss)	14		10		3		(4)		—		23
Total revenues	821		10		17		38		(14)		872

Expenses
Loss and LAE (benefit) (3)	(18)		—		—		(7)		(1)		(26)
Interest expense	—		—		101		(10)		—		91
Amortization of DAC	20		—		—		—		—		20
Employee compensation and benefit expenses	170		—		32		—		—		202
Other operating expenses	117		6		36		—		—		159
Total expenses	289		6		169		(17)		(1)		446
Equity in earnings (losses) of investees	102		2		5		(47)				62
Less: Provision (benefit) for income taxes	109		1		(12)		(2)		—		96
Less: Noncontrolling interests	—		—		—		16		—		16
Total	$	525	$	5	$	(135)	$	(6)	$	(13)	$	376

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (4 of 4)

(in millions)

Components of Income for the Year Ended December 31, 2023


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	347	$	—	$	—	$	(3)	$	—	$	344
Net investment income	370		—		8		(13)		—		365
Asset management fees	—		64		—		(11)		—		53
Net realized investment gains (losses)	—		—		—		—		(14)		(14)
Fair value gains (losses) on credit derivatives (2)	10		—		—		—		104		114
Fair value gains (losses) on CCS	—		—		—		—		(35)		(35)
Fair value gains (losses) on FG VIEs	—		—		—		8		—		8
Fair value gains (losses) on CIVs	—		—		—		88		—		88
Foreign exchange gains (losses) on remeasurement	3		—		—		(1)		51		53
Fair value gains (losses) on trading securities	74		—		—		—		—		74
Gain on sale of asset management subsidiaries	—		—		262		—		—		262
Other income (loss)	51		12		5		(7)		—		61
Total revenues	855		76		275		61		106		1,373

Expenses
Loss and LAE (benefit) (3)	161		—		—		3		(2)		162
Interest expense	—		1		99		(10)		—		90
Amortization of DAC	13		—		—		—		—		13
Employee compensation and benefit expenses	154		59		38		—		—		251
Other operating expenses	107		18		79		13		—		217
Total expenses	435		78		216		6		(2)		733
Equity in earnings (losses) of investees	82		5		—		(59)		—		28
Less: Provision (benefit) for income taxes	(119)		—		14		(5)		17		(93)
Less: Noncontrolling interests	—		—		—		22		—		22
Total	$	621	$	3	$	45	$	(21)	$	91	$	739

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Fixed-Maturity Securities, Short-Term Investments and Cash

As of December 31, 2024

(dollars in millions)


	Amortized Cost		Allowance for Credit Losses			Pre-Tax Book Yield		After-Tax Book Yield		Fair Value		Annualized Investment Income (1)
Fixed maturity securities, available-for-sale:
Obligations of states and political subdivisions (3)	$	2,032	$	(14)		3.68	%	3.24	%	$	1,940	$	75
U.S. government and agencies	72		—			2.99		2.41		67		2
Corporate securities	2,586		(7)			3.56		2.96		2,382		92
Mortgage-backed securities:
Residential mortgage-backed securities (RMBS) (2)(3)	657		(21)			5.17		4.13		567		34
Commercial mortgage-backed securities	189		—			3.90		3.11		186		7
Asset-backed securities (ABS)
Collateralized loan obligation (CLOs)	615		(1)			11.87		9.37		611		73
Other ABS (3)	593		(17)			4.27		3.43		547		25
Non-U.S. government securities	83		—			1.98		1.96		69		2
Total fixed maturity securities, available-for-sale	6,827		(60)			4.54		3.76		6,369		310
Short-term investments	1,221		—			4.32		3.47		1,221		53
Cash (4)	121		—			—		—		121		—
Total	$	8,169	$	(60)		4.51	%	3.72	%	$	7,711	$	363

Fixed maturity securities, trading (6)										$	147


Ratings (5):	Fair Value		% of Portfolio
U.S. government and agencies	$	67	1.0		%
AAA/Aaa	795		12.5		%
AA/Aa	2,163		34.0		%
A/A	1,505		23.6		%
BBB	1,039		16.3		%
BIG	517		8.1		%
Not rated (7)	283		4.5		%
Total fixed maturity securities, available-for-sale	$	6,369	100.0		%


Duration of available-for-sale fixed maturity securities and short-term investments (in years):			3.6

1) Represents annualized investment income based on amortized cost and pre-tax book yields.

2) Includes fair value of $130 million in subprime RMBS, of which 92% were rated BIG.

3) Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.

4) Cash is not included in the yield calculation.

5) Ratings generally reflect the lower of Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC classifications except for purchased securities that the Company has insured, and for which it had expected losses to be paid (Loss Mitigation Securities) and certain other securities, which use internal ratings classifications. Loss mitigation and other securities total $824 million in par with carrying value of $569 million and are primarily included in the BIG category.

6) Primarily includes contingent value instruments (CVI) received in connection with the trusts established as a result of the resolution of the Company’s exposure to insured Puerto Rico credits experiencing payment default other than PREPA. These securities are not rated.

7) Primarily includes CLO equity tranches.

Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (1 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of December 31, 2024


	Insurance Related Subsidiaries (1)		Holding Companies (2)		Other (3)		AGL Consolidated

Fixed-maturity securities, available-for-sale	$	6,351	$	18	$	—	$	6,369
Fixed-maturity securities, trading	147		—		—		147
Total fixed-maturity securities	6,498		18		—		6,516
Short-term investments	810		411		—		1,221
Cash	78		8		35		121
Total short-term investments and cash	888		419		35		1,342
Other invested assets
Equity method investments:
Sound Point	—		418		—		418
Funds:
CLOs (5)	100		—		—		100
Private healthcare investing	153		—		—		153
Asset-based/specialty finance	142		—		(33)		109
Middle market direct lending	11		—		—		11
Other	2		118		—		120
Total funds	408		118		(33)		493
Other	—		3		—		3
Total equity method investments	408		539		(33)		914
Other	9		3		—		12
Other invested assets	417		542		(33)		926
Total investment portfolio and cash (4)	$	7,803	$	979	$	2	$	8,784
CIVs
Assets of CIVs	$	—	$	—	$	101	$	101
Liabilities of CIVs	—		—		—		—
Nonredeemable noncontrolling interests	—		—		(58)		(58)
Total CIVs	$	—	$	—	$	43	$	43

1) Includes the Company’s U.S., Bermuda, United Kingdom (U.K.) and French insurance subsidiaries and AG Asset Strategies LLC (AGAS) (separate company, excluding the effect of consolidating CIVs).

2) Includes the Company’s holding companies: AGL, Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH).

3) Includes the Company’s non insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.

4) The alternative investments, excluding the ownership interest in Sound Point, had an inception-to-date annualized internal rate of return (IRR) of 13%, a year-to-date return of 16% and a quarter-to-date return of 4%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.

5) In 2024, $263 million of CLO equity tranches were transferred to the fixed-maturity, available-for-sale securities from a previously consolidated CLO fund.

Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (2 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of December 31, 2023


	Insurance Related Subsidiaries (1)		Holding Companies (2)		Other (3)		AGL Consolidated

Fixed-maturity securities, available-for-sale	$	6,286	$	21	$	—	$	6,307
Fixed-maturity securities, trading	318		—		—		318
Total fixed-maturity securities	6,604		21		—		6,625
Short-term investments	1,328		332		1		1,661
Cash	52		7		38		97
Total short-term investments and cash	1,380		339		39		1,758
Other invested assets
Equity method investments:
Sound Point	—		429		—		429
Funds:
CLOs	302		—		(223)		79
Private healthcare investing	102		—		—		102
Asset-based/specialty finance	166		—		(82)		84
Middle market direct lending	5		—		—		5
Other	117		—		—		117
Total funds	692		—		(305)		387
Other	—		7		—		7
Total equity method investments	692		436		(305)		823
Other	3		3		—		6
Other invested assets	695		439		(305)		829
Total investment portfolio and cash (4)	$	8,679	$	799	$	(266)	$	9,212
CIVs
Assets of CIVs	$	—	$	—	$	366	$	366
Liabilities of CIVs	—		—		(4)		(4)
Nonredeemable noncontrolling interests	—		—		(52)		(52)
Total CIVs	$	—	$	—	$	310	$	310

1) Includes the Company’s U.S., Bermuda, U.K. and French insurance subsidiaries and AGAS (separate company, excluding the effect of consolidating CIVs).

2) Includes the Company’s holding companies: AGL, AGUS and AGMH.

3) Includes the Company’s non insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.

4) The alternative investments, excluding the ownership interest in Sound Point, had an inception-to-date annualized IRR of 13%, a year-to-date return of 14% and a quarter-to-date return of 3%.

Assured Guaranty Ltd.

Income from Investment Portfolio and CIVs by Segment (1 of 2)

(dollars in millions)


	Three Months Ended December 31, 2024
	Insurance		Asset Management		Corporate		Other		Total
Net investment income
Fixed-maturity securities, available-for-sale	$	76	$	—	$	—	$	(1)	$	75
Short-term investments	13		—		4		—		17
Other	4		—		—		(3)		1
Total net investment income	$	93	$	—	$	4	$	(4)	$	93

Fair value gains (losses) on trading securities	$	—	$	—	$	—	$	—	$	—

Equity in earnings (losses) of investees
Sound Point	$	—	$	1	$	—	$	—	$	1
Funds:
CLOs	9		—		—		(7)		2
Private healthcare investing	3		—		—		—		3
Asset-based/specialty finance	6		—		—		(2)		4
Middle market direct lending	1		—		—		—		1
Other	—		—		5		—		5
Total funds (1)	19		—		5		(9)		15
Other	—		(1)		—		—		(1)
Equity in earnings (losses) of investees	$	19	$	—	$	5	$	(9)	$	15

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	15	$	15
Noncontrolling interests	—		—		—		(4)		(4)
Total CIVs	$	—	$	—	$	—	$	11	$	11


	Three Months Ended December 31, 2023
	Insurance		Asset Management		Corporate		Other		Total
Net investment income
Fixed-maturity securities, available-for-sale	$	77	$	—	$	—	$	(1)	$	76
Short-term investments	18		—		2		—		20
Other	2		—		—		(3)		(1)
Total net investment income	$	97	$	—	$	2	$	(4)	$	95

Fair value gains (losses) on trading securities	$	32	$	—	$	—	$	—	$	32

Equity in earnings (losses) of investees
Sound Point (2)	$	—	$	5	$	—	$	—	$	5
Funds:
CLOs	27		—		—		(23)		4
Private healthcare investing	(2)		—		—		—		(2)
Asset-based/specialty finance	2		—		—		(1)		1
Other	(5)		—		—		—		(5)
Total funds (1)	22		—		—		(24)		(2)
Other	—		—		—		—		—
Equity in earnings (losses) of investees	$	22	$	5	$	—	$	(24)	$	3

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	28	$	28
Noncontrolling interests	—		—		—		(3)		(3)
Total CIVs	$	—	$	—	$	—	$	25	$	25

1) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.

2) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.

Assured Guaranty Ltd.

Income from Investment Portfolio and CIVs by Segment (2 of 2)

(dollars in millions)


	Year Ended December 31, 2024
	Insurance		Asset Management		Corporate		Other		Total
Net investment income
Fixed-maturity securities, available-for-sale	$	259	$	—	$	—	$	(3)	$	256
Short-term investments	69		—		14		—		83
Other	11		—		—		(10)		1
Total net investment income	$	339	$	—	$	14	$	(13)	$	340

Fair value gains (losses) on trading securities	$	52	$	—	$	—	$	—	$	52

Equity in earnings (losses) of investees
Sound Point	$	—	$	6	$	—	$	—	$	6
Funds:
CLOs	47		—		—		(33)		14
Private healthcare investing	11		—		—		—		11
Asset-based/specialty finance	24		—		—		(14)		10
Middle market direct lending	2		—		—		—		2
Other	18		—		5		—		23
Total funds (1)	102		—		5		(47)		60
Other	—		(4)		—		—		(4)
Equity in earnings (losses) of investees	$	102	$	2	$	5	$	(47)	$	62

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	69	$	69
Noncontrolling interests	—		—		—		(16)		(16)
Total CIVs	$	—	$	—	$	—	$	53	$	53


	Year Ended December 31, 2023
	Insurance		Asset Management		Corporate		Other		Total
Net investment income
Fixed-maturity securities, available-for-sale	$	294	$	—	$	—	$	(3)	$	291
Short-term investments	65		—		8		—		73
Other	11		—		—		(10)		1
Total net investment income	$	370	$	—	$	8	$	(13)	$	365

Fair value gains (losses) on trading securities	$	74	$	—	$	—	$	—	$	74

Equity in earnings (losses) of investees
Sound Point (2)	$	—	$	5	$	—	$	—	$	5
Funds:
CLOs	50		—		—		(46)		4
Private healthcare investing	19		—		—		(9)		10
Asset-based/specialty finance	5		—		—		(4)		1
Other	8		—		—		—		8
Total funds (1)	82		—		—		(59)		23
Other	—		—		—		—		—
Equity in earnings (losses) of investees	$	82	$	5	$	—	$	(59)	$	28

CIVs
Fair value gains (losses) on CIVs (3)	$	—	$	—	$	—	$	88	$	88
Noncontrolling interests	—		—		—		(22)		(22)
Total CIVs	$	—	$	—	$	—	$	66	$	66

1) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are generally reported on a one-quarter lag.

2) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.

3) Includes loss on deconsolidation of $16 million.

Insurance Segment

Assured Guaranty Ltd.

Insurance Segment Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Segment revenues
Net earned premiums and credit derivative revenues	$	107	$	86	$	417	$	357
Net investment income	93		97		339		370
Fair value gains (losses) on trading securities	—		32		52		74
Foreign exchange gains (losses) on remeasurement and other income (loss)	(1)		18		13		54
Total segment revenues	199		233		821		855

Segment expenses
Loss expense (benefit)	31		7		(18)		161
Amortization of DAC	6		3		20		13
Employee compensation and benefit expenses	42		42		170		154
Other operating expenses	27		29		117		107
Total segment expenses	106		81		289		435
Equity in earnings (losses) of investees	19		22		102		82
Segment adjusted operating income (loss) before income taxes	112		174		634		502
Less: Provision (benefit) for income taxes	14		(165)		109		(119)
Segment adjusted operating income (loss)	$	98	$	339	$	525	$	621

Assured Guaranty Ltd.

Claims-Paying Resources

(dollars in millions)


	As of December 31, 2024
	AG		AG Re (1)		Eliminations (2)		Total
Claims-paying resources
Policyholders’ surplus	$	3,524	$	746	$	59	$	4,329
Contingency reserve	1,392		—		—		1,392
Qualified statutory capital	4,916		746		59		5,721
Unearned premium reserve and net deferred ceding commission income(3)	2,424		599		(59)		2,964
Loss and LAE reserves (3)(4)	—		53		—		53
Total policyholders' surplus and reserves	7,340		1,398		—		8,738
Present value of installment premium	819		254		—		1,073
CCS	400		—		—		400
Total claims-paying resources	$	8,559	$	1,652	$	—	$	10,211

Statutory net exposure (3)(5)	$	201,090	$	64,486	$	(580)	$	264,996
Net debt service outstanding (3)(5)	$	323,905	$	96,676	$	(1,042)	$	419,539

Ratios:
Net exposure to qualified statutory capital	41:1		86:1				46:1
Capital ratio (6)	66:1		130:1				73:1
Financial resources ratio (7)	38:1		59:1				41:1
Statutory net exposure to claims-paying resources	23:1		39:1				26:1

Separate company statutory basis:
Admitted assets	$	7,057	$	1,491
Total liabilities	3,533		745
Loss and LAE reserves (recoverable)	(174)		53
Paid in capital stock	441		826

1) Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of AG Re on a U.S. statutory-basis, except for contingency reserves.

2) Eliminations consist of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

3) The numbers shown for AG have been adjusted to include its share of its U.K. and French insurance subsidiaries.

4) Loss and LAE reserves exclude adjustments to claims-paying resources for AG because the balance was in a net recoverable position of $170 million.

5) Net exposure and net debt service outstanding are presented on a statutory basis. Includes $4,085 million of specialty business.

6) The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.

7) The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.

Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.

Assured Guaranty Ltd.

New Business Production

(dollars in millions)

Reconciliation of GWP to PVP


	Three Months Ended										Three Months Ended
	December 31, 2024										December 31, 2023
	Public Finance				Structured Finance						Public Finance				Structured Finance
	U.S.		Non - U.S.		U.S.		Non - U.S.		Total		U.S.		Non - U.S.		U.S.		Non - U.S.		Total
Total GWP	$	77	$	102	$	1	$	6	$	186	$	82	$	42	$	11	$	1	$	136
Less: Installment GWP and other GAAP adjustments (1)	44		101		1		6		152		54		37		11		1		103
Upfront GWP	33		1		—		—		34		28		5		—		—		33
Plus: Installment premiums and other(2)	44		22		1		20		87		55		40		26		1		122
Total PVP	$	77	$	23	$	1	$	20	$	121	$	83	$	45	$	26	$	1	$	155

Gross par written	$	8,419	$	436	$	231	$	2,140	$	11,226	$	6,712	$	874	$	785	$	304	$	8,675


	Year Ended										Year Ended
	December 31, 2024										December 31, 2023
	Public Finance				Structured Finance						Public Finance				Structured Finance
	U.S.		Non - U.S.		U.S.		Non - U.S.		Total		U.S.		Non - U.S.		U.S.		Non - U.S.		Total
Total GWP	$	259	$	136	$	20	$	25	$	440	$	211	$	82	$	59	$	5	$	357
Less: Installment GWP and other GAAP adjustments (1)	143		115		17		25		300		109		74		59		5		247
Upfront GWP	116		21		3		—		140		102		8		—		—		110
Plus: Installment premiums and other(2)	154		46		22		40		262		110		75		68		41		294
Total PVP	$	270	$	67	$	25	$	40	$	402	$	212	$	83	$	68	$	41	$	404

Gross par written	$	23,758	$	2,673	$	1,476	$	3,922	$	31,829	$	22,464	$	1,544	$	1,886	$	3,066	$	28,960

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Gross Par Written (1 of 2)

(dollars in millions)

Gross Par Written by Asset Type


	Three Months Ended December 31,
	2024		2023
Sector:
U.S. public finance:
General obligation	$	2,815	$	2,336
Municipal utilities	1,870		1,153
Transportation	1,823		1,597
Healthcare	1,000		844
Tax backed	800		654
Higher education	111		104
Housing revenue	—		16
Infrastructure finance	—		8
Total U.S. public finance	8,419		6,712
Non-U.S. public finance:
Regulated utilities	257		157
Infrastructure finance	179		614
Sovereign and sub-sovereign	—		103
Total non-U.S. public finance	436		874
Total public finance	8,855		7,586

U.S. structured finance:
Insurance securitizations	104		575
Pooled corporate obligations	60		41
Subscription finance facilities	57		79
Structured credit	10		90
Total U.S. structured finance	231		785
Non-U.S. structured finance:
Subscription finance facilities	1,206		228
Commercial mortgage-backed securities	653		—
Pooled corporate obligations	281		76
Total non-U.S. structured finance	2,140		304
Total structured finance	2,371		1,089

Total gross par written	$	11,226	$	8,675

Please refer to the Glossary for a description of sectors.

Assured Guaranty Ltd.

Gross Par Written (2 of 2)

(dollars in millions)

Gross Par Written by Asset Type


	Year Ended December 31,
	2024		2023
Sector:
U.S. public finance:
General obligation	$	8,550	$	8,450
Transportation	5,527		2,636
Municipal utilities	3,882		5,048
Tax backed	3,360		2,324
Healthcare	1,774		1,550
Higher education	483		403
Housing revenue	158		233
Infrastructure finance	—		1,793
Other public finance	24		27
Total U.S. public finance	23,758		22,464
Non-U.S. public finance:
Regulated utilities	2,060		574
Infrastructure finance	613		614
Sovereign and sub-sovereign	—		356
Total non-U.S. public finance	2,673		1,544
Total public finance	26,431		24,008

U.S. structured finance:
Insurance securitizations	554		1,325
Structured credit	295		365
Pooled corporate obligations	278		41
Subscription finance facilities	270		155
Commercial mortgage-backed securities	25		—
Other structured finance	54		—
Total U.S. structured finance	1,476		1,886
Non-U.S. structured finance:
Subscription finance facilities	2,008		1,083
Commercial mortgage-backed securities	653		—
Pooled corporate obligations	639		564
Other structured finance	622		1,419
Total non-U.S. structured finance	3,922		3,066
Total structured finance	5,398		4,952

Total gross par written	$	31,829	$	28,960

Please refer to the Glossary for a description of sectors.

Assured Guaranty Ltd.

New Business Production by Quarter

(dollars in millions)


																	Year Ended
	1Q-23		2Q-23		3Q-23		4Q-23		1Q-24		2Q-24		3Q-24		4Q-24		2023		2024
PVP:
Public finance - U.S.	$	22	$	77	$	30	$	83	$	43	$	116	$	34	$	77	$	212	$	270
Public finance - non-U.S.	30		6		2		45		1		33		10		23		83		67
Structured finance - U.S.	27		3		12		26		15		4		5		1		68		25
Structured finance - non-U.S.	33		5		2		1		4		2		14		20		41		40
Total PVP (1)	$	112	$	91	$	46	$	155	$	63	$	155	$	63	$	121	$	404	$	402

Reconciliation of GWP to PVP:

Total GWP	$	86	$	95	$	40	$	136	$	61	$	132	$	61	$	186	$	357	$	440
Less: Installment GWP and other GAAP adjustments	69		58		17		103		28		102		18		152		247		300
Upfront GWP	17		37		23		33		33		30		43		34		110		140
Plus: Installment premiums and other(2)	95		54		23		122		30		125		20		87		294		262
Total PVP	$	112	$	91	$	46	$	155	$	63	$	155	$	63	$	121	$	404	$	402

Gross par written:
Public finance - U.S.	$	2,907	$	7,747	$	5,098	$	6,712	$	2,909	$	7,043	$	5,387	$	8,419	$	22,464	$	23,758
Public finance - non-U.S.	360		249		61		874		—		1,572		665		436		1,544		2,673
Structured finance - U.S.	582		252		267		785		480		214		551		231		1,886		1,476
Structured finance - non-U.S.(1)	1,514		726		522		304		354		594		834		2,140		3,066		3,922
Total	$	5,363	$	8,974	$	5,948	$	8,675	$	3,743	$	9,423	$	7,437	$	11,226	$	28,960	$	31,829

1) PVP and gross par written include the present value (PV) of future premiums and total exposure, respectively, associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Estimated Net Exposure Amortization(1) and Estimated Future Financial Guaranty Net Premium

and Credit Derivative Revenues

(dollars in millions)


					Financial Guaranty Insurance (2)
	Estimated Net Debt Service Amortization		Estimated Ending Net Debt Service Outstanding		Earnings of Deferred Premium Revenue		Accretion of Discount		Effect of FG VIE Consolidation on Earnings of Deferred Premium Revenue and Accretion of Discount		Future Credit Derivative Revenues (3)
2024 (as of December 31)			$	415,966
2025 Q1	$	5,606	410,360		$	76	$	9	$	1	$	3
2025 Q2	5,172		405,188		75		9		1		2
2025 Q3	6,800		398,388		74		9		1		2
2025 Q4	6,673		391,715		72		8		1		2
2026	22,363		369,352		275		33		3		9
2027	20,078		349,274		259		31		2		8
2028	20,000		329,274		246		29		2		7
2029	21,334		307,940		227		27		2		7

2025-2029	108,026		307,940		1,304		155		13		40
2030-2034	95,238		212,702		917		115		11		28
2035-2039	73,723		138,979		597		84		6		21
2040-2044	51,077		87,902		389		55		—		13
2045-2049	39,879		48,023		259		32		—		6
2050-2054	26,906		21,117		137		15		—		—
After 2054	21,117		—		109		12		—		—
Total	$	415,966			$	3,712	$	468	$	30	$	108

Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve(4)


	GAAP		Effect of FG VIE Consolidation on Net Unearned Premium Reserve
Net deferred premium revenue:
Financial guaranty	$	3,712	$	29
Specialty	5		—
Net deferred premium revenue	3,717		29
Contra-paid	(23)		(3)
Net unearned premium reserve	$	3,694	$	26

1) Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of December 31, 2024. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations, terminations and because of management's assumptions on structured finance amortization.

2) See also page 27, for ‘‘Net Expected Loss to be Expensed.’’

3) Represents expected future premiums on insured credit derivatives.

4) Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).

Assured Guaranty Ltd.

Roll Forward of Net Expected Loss and LAE to be Paid

(dollars in millions)

Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Three Months Ended December 31, 2024


	Net Expected Loss to be Paid (Recovered) as of September 30, 2024		Net Economic Loss Development (Benefit) During 4Q-24		Net (Paid) Recovered Losses During 4Q-24		Net Expected Loss to be Paid (Recovered) as of December 31, 2024
Public Finance:
U.S. public finance	$	238	$	5	$	(225)	$	18
Non-U.S public finance	81		18		(1)		98
Public Finance	319		23		(226)		116

Structured Finance:
U.S. RMBS	(46)		(6)		9		(43)
Other structured finance	33		—		—		33
Structured Finance	(13)		(6)		9		(10)
Total	$	306	$	17	$	(217)	$	106

Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Year Ended December 31, 2024


	Net Expected Loss to be Paid (Recovered) as of December 31, 2023		Net Economic Loss Development (Benefit) During 2024		Net (Paid) Recovered Losses During 2024		Net Expected Loss to be Paid (Recovered) as of December 31, 2024
Public Finance:
U.S. public finance	$	398	$	(9)	$	(371)	$	18
Non-U.S public finance	20		81		(3)		98
Public Finance	418		72		(374)		116

Structured Finance:
U.S. RMBS	43		(75)		(11)		(43)
Other structured finance	44		—		(11)		33
Structured Finance	87		(75)		(22)		(10)
Total	$	505	$	(3)	$	(396)	$	106

1) Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e., those accounted for as insurance, credit derivatives and FG VIEs).

Assured Guaranty Ltd.

Loss Measures

(dollars in millions)


	As of December 31, 2024		Three Months Ended December 31, 2024
	Total Net Par Outstanding for BIG Transactions		Net Economic Loss Development (Benefit)		GAAP Loss and LAE(1)		Loss and LAE included in Adjusted Operating Income (2)		Insurance Segment Loss and LAE(3)
Public finance:
U.S. public finance	$	2,888	$	5	$	24	$	24	$	28
Non-U.S public finance	6,398		18		4		4		4
Public finance	9,286		23		28		28		32
Structured finance:
U.S. RMBS	$	819	(6)		(1)		—		(2)
Other structured finance	77		—		1		1		1
Structured finance	896		(6)		—		1		(1)
Total	$	10,182	$	17	$	28	$	29	$	31


	As of December 31, 2024		Year Ended December 31, 2024
	Total Net Par Outstanding for BIG Transactions		Net Economic Loss Development (Benefit)		GAAP Loss and LAE(1)		Loss and LAE included in Adjusted Operating Income (2)		Insurance Segment Loss and LAE(3)
Public finance:
U.S. public finance	$	2,888	$	(9)	$	12	$	12	$	24
Non-U.S public finance	6,398		81		4		4		4
Public finance	9,286		72		16		16		28
Structured finance:
U.S. RMBS	$	819	(75)		(43)		(45)		(50)
Other structured finance	77		—		1		4		4
Structured finance	896		(75)		(42)		(41)		(46)
Total	$	10,182	$	(3)	$	(26)	$	(25)	$	(18)

1) Includes loss expense related to contracts that are accounted for as insurance contracts.

2) Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.

3) Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Net Expected Loss to be Expensed (1)

As of December 31, 2024

(dollars in millions)


	GAAP

2025 Q1	$	3
2025 Q2	4
2025 Q3	3
2025 Q4	3
2026	13
2027	16
2028	18
2029	17
2025-2029	77
2030-2034	78
2035-2039	37
2040-2044	12
2045-2049	20
2050-2054	14
After 2054	2
Total expected present value of net expected loss to be expensed (2)	240
Future expected accretion	(49)
Total expected future loss and LAE	$	191

1) The present value of net expected loss to be paid is discounted using risk free rates ranging from 1.98% to 5.22%.

2) Excludes $21 million related to FG VIEs, which are eliminated in consolidation.

Assured Guaranty Ltd.

Financial Guaranty Profile (1 of 3)

(dollars in millions)

Net Par Outstanding by Asset Type


	As of December 31, 2024		As of December 31, 2023
U.S. public finance:
General obligation	$	78,162	$	74,609
Tax backed	33,288		33,060
Municipal utilities	30,036		29,300
Transportation	26,958		22,052
Healthcare	14,007		12,604
Infrastructure finance	8,663		8,796
Higher education	7,381		7,250
Housing revenue	1,272		1,152
Investor-owned utilities	325		329
Renewable energy	164		167
Other public finance	919		970
Total U.S. public finance	201,175		190,289
Non-U.S public finance:
Regulated utilities	22,361		20,545
Infrastructure finance	14,961		15,430
Sovereign and sub-sovereign	9,181		9,869
Renewable energy	1,596		2,030
Pooled infrastructure	1,101		1,133
Total non-U.S. public finance	49,200		49,007
Total public finance	250,375		239,296

U.S. structured finance:
Insurance securitizations	4,495		4,379
RMBS	1,507		1,774
Pooled corporate obligations	607		631
Financial products	492		464
Consumer receivables	212		314
Subscription finance facilities	185		178
Other structured finance	955		892
Total U.S. structured finance	8,453		8,632
Non-U.S. structured finance:
Subscription finance facilities	1,385		444
Pooled corporate obligations	468		425
RMBS	221		252
Other structured finance	650		104
Total non-U.S structured finance	2,724		1,225
Total structured finance	11,177		9,857

Total net par outstanding	$	261,552	$	249,153

Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (2 of 3)

As of December 31, 2024

(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio


	Public Finance - U.S.				Public Finance - Non-U.S.				Structured Finance - U.S.				Structured Finance - Non-U.S.				Total
Ratings:	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
AAA	$	25	—	%	$	2,074	4.2	%	$	512	6.1	%	$	470	17.3	%	$	3,081	1.2	%
AA	17,664		8.8		2,854		5.8		5,386		63.7		58		2.1		25,962		9.9
A	111,502		55.5		13,046		26.5		952		11.3		2,117		77.7		127,617		48.8
BBB	69,096		34.3		24,828		50.5		707		8.3		79		2.9		94,710		36.2
BIG	2,888		1.4		6,398		13.0		896		10.6		—		—		10,182		3.9
Net Par Outstanding (1)	$	201,175	100.0	%	$	49,200	100.0	%	$	8,453	100.0	%	$	2,724	100.0	%	$	261,552	100.0	%

1) As of December 31, 2024, the Company excluded $1.2 billion of net par outstanding attributable to Loss Mitigation Securities.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (3 of 3)

As of December 31, 2024

(dollars in millions)

Geographic Distribution of Financial Guaranty Portfolio


	Net Par Outstanding		% of Total
U.S.:
U.S. public finance:
California	$	36,080	13.8	%
Texas	26,004		9.9
New York	19,572		7.5
Pennsylvania	18,448		7.1
Illinois	12,536		4.8
Florida	11,353		4.3
New Jersey	8,824		3.4
Louisiana	4,994		1.9
Michigan	4,877		1.9
Colorado	4,012		1.5
Other	54,475		20.8
Total U.S. public finance	201,175		76.9
U.S. structured finance (multiple states)	8,453		3.2
Total U.S.	209,628		80.1

Non-U.S.:
United Kingdom	41,001		15.7
Australia	1,740		0.7
Spain	1,506		0.6
France	1,477		0.5
Canada	1,243		0.5
Other	4,957		1.9
Total non-U.S.	51,924		19.9

Total net par outstanding	$	261,552	100.0	%

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Specialty Business

(dollars in millions)


	As of December 31, 2024				As of December 31, 2023
	Gross Exposure (2)		Net Exposure (2)		Gross Exposure (2)		Net Exposure (2)
Diversified real estate	$	2,004	$	2,004	$	1,569	$	1,569
Insurance securitizations (1)	1,449		1,126		1,370		1,043
Pooled corporate obligations	868		868		488		488
Aircraft residual value insurance	147		87		355		200

1) Insurance securitizations exposure is projected to reach $1.5 billion gross and $1.2 billion net in 2025.

2) All exposures are rated investment-grade, except for aircraft residual value insurance gross and net exposure of $5 million as of December 31, 2024 and gross exposure of $144 million and net exposure of $84 million as of December 31, 2023.

Assured Guaranty Ltd.

Expected Amortization of Net Par Outstanding

(dollars in millions)


	Public Finance								Structured Finance
	U.S. Public Finance		Non-U.S. Public Finance		Total		Estimated Ending Net Par Outstanding		U.S. RMBS		U.S. and Non-U.S. Pooled Corporate		Other Structured Finance		Total		Estimated Ending Net Par Outstanding

2024 (as of December 31)							$	250,375									$	11,177
2025 Q1	$	1,695	$	560	$	2,255	248,120		$	53	$	7	$	449	$	509	10,668
2025 Q2	1,654		163		1,817		246,303		51		14		570		635		10,033
2025 Q3	3,139		475		3,614		242,689		53		68		295		416		9,617
2025 Q4	2,355		1,443		3,798		238,891		49		21		204		274		9,343
2026	8,722		2,123		10,845		228,046		185		239		683		1,107		8,236
2027	8,281		927		9,208		218,838		150		402		382		934		7,302
2028	8,603		949		9,552		209,286		152		180		624		956		6,346
2029	8,720		2,692		11,412		197,874		141		49		699		889		5,457

2025-2029	43,169		9,332		52,501		197,874		834		980		3,906		5,720		5,457
2030-2034	43,628		10,628		54,256		143,618		323		61		2,837		3,221		2,236
2035-2039	37,432		8,621		46,053		97,565		343		34		629		1,006		1,230
2040-2044	30,116		2,010		32,126		65,439		—		—		702		702		528
2045-2049	24,483		3,323		27,806		37,633		7		—		521		528		—
2050-2054	16,645		4,231		20,876		16,757		—		—		—		—		—
After 2054	5,702		11,055		16,757		—		—		—		—		—		—
Total	$	201,175	$	49,200	$	250,375			$	1,507	$	1,075	$	8,595	$	11,177

Net par outstanding (end of period)


	1Q-23		2Q-23		3Q-23		4Q-23		1Q-24		2Q-24		3Q-24		4Q-24
Public finance - U.S.	$	180,837	$	186,323	$	185,973	$	190,289	$	189,895	$	194,593	$	195,837	$	201,175
Public finance - non-U.S.	45,909		47,658		45,748		49,007		48,237		49,583		52,083		49,200
Structured finance - U.S.	8,660		8,827		8,975		8,632		8,643		8,759		8,717		8,453
Structured finance - non-U.S.	977		1,205		1,137		1,225		1,369		1,461		1,559		2,724
Net par outstanding	$	236,383	$	244,013	$	241,833	$	249,153	$	248,144	$	254,396	$	258,196	$	261,552

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Puerto Rico Profile

As of December 31, 2024

(dollars in millions)


	Net Par Outstanding
	AG		AG Re		Total Net Par Outstanding		Gross Par Outstanding
Defaulted Puerto Rico Exposure
PREPA	$	378	$	154	$	532	$	540

Resolved Puerto Rico Exposure
Puerto Rico Highway and Transportation Authority	$	—	$	13	$	13	$	13

Non-Defaulting Puerto Rico Exposure
Puerto Rico Municipal Finance Agency	$	76	$	15	$	91	$	97
University of Puerto Rico	1		—		1		1
Total non-defaulting	$	77	$	15	$	92	$	98

PREPA Amortization Schedule


	Scheduled Net Par Amortization		Scheduled Net Debt Service Amortization
2025 (January 1 - March 31)	$	—	$	10
2025 (April 1 - June 30)	—		3
2025 (July 1 - September 30)	68		78
2025 (October 1 - December 31)	—		2
Subtotal 2025	68		93
2026	106		126
2027	106		122
2028	68		80
2029	39		47
2030-2034	141		157
2035-2037	4		4
Total	$	532	$	629

Assured Guaranty Ltd.

Direct Pooled Corporate Obligations Profile

As of December 31, 2024

(dollars in millions)

Distribution of Direct Pooled Corporate Obligations by Ratings


	Net Par Outstanding		% of Total		Average Initial Credit Enhancement	Average Current Credit Enhancement
Ratings:
AAA	$	549	51.1	%	40.5%	49.3%
AA	65		6.0		36.1%	36.1%
A	309		28.7		57.6%	42.2%
BBB	152		14.2		35.5%	36.7%
Total exposures	$	1,075	100.0	%	44.5%	44.7%

Distribution of Direct Pooled Corporate Obligations by Asset Class


	Net Par Outstanding		% of Total		Average Initial Credit Enhancement	Average Current Credit Enhancement	Number of Transactions
Asset class:
Trust preferred
Banks and insurance	$	198	18.5	%	42.4%	66.8%	7
U.S. mortgage and real estate investment trusts	52		4.8		48.4%	66.1%	3
CLOs	825		76.7		44.7%	38.0%	10
Total exposures	$	1,075	100.0	%	44.5%	44.7%	20

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (1 of 3)

(dollars in millions)

BIG Exposures by Asset Exposure Type


	As of
	December 31, 2024		December 31, 2023
U.S. public finance:
Healthcare	$	1,200	$	1,079
Municipal utilities	813		914
General obligation	286		286
Tax backed	123		503
Transportation	107		109
Higher education	88		100
Housing revenue	67		70
Investor-owned utilities	47		47
Infrastructure finance	45		45
Other public finance	112		118
Total U.S. public finance	2,888		3,271
Non-U.S. public finance:
Regulated utilities	4,744		—
Renewable energy	851		271
Infrastructure finance	765		815
Sovereign and sub-sovereign	38		45
Total non-U.S. public finance	6,398		1,131
Total public finance	9,286		4,402

U.S. structured finance:
RMBS	819		941
Insurance securitizations	40		40
Consumer receivables	37		52
Other structured finance	—		2
Total U.S. structured finance	896		1,035
Non-U.S. structured finance:
Total non-U.S. structured finance	—		—
Total structured finance	896		1,035
Total BIG net par outstanding	$	10,182	$	5,437

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (2 of 3)

(dollars in millions)

Net Par Outstanding by BIG Surveillance Category (1)


	As of
	December 31, 2024		December 31, 2023
BIG Category 1
U.S. public finance	$	2,119	$	1,257
Non-U.S. public finance	5,879		1,131
U.S. structured finance	104		22
Non-U.S. structured finance	—		—
Total BIG Category 1	8,102		2,410
BIG Category 2
U.S. public finance	137		926
Non-U.S. public finance	519		—
U.S. structured finance	50		63
Non-U.S. structured finance	—		—
Total BIG Category 2	706		989
BIG Category 3
U.S. public finance	632		1,088
Non-U.S. public finance	—		—
U.S. structured finance	742		950
Non-U.S. structured finance	—		—
Total BIG Category 3	1,374		2,038
BIG Total	$	10,182	$	5,437

1) The Company assigns each BIG exposure to one of the three BIG surveillance categories below, which generally represent the following: BIG 1: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is less than 50%, regardless of whether the Company has or has not paid a liquidity claim. BIG 2: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, but for which no claims (other than liquidity claims) have yet been paid. BIG 3: Below-investment-grade exposures for which future losses are expected, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, and for which claims, other than liquidity claims have been paid.

For purposes of classifying BIG exposures into one of the three BIG categories, the Company calculates the present value of projected claim payments and recoveries using the pre-tax book yield of the relevant insurance subsidiary’s investment portfolio as the applicable discount rate.

For financial statement measurement purposes, the Company uses risk-free rates (as determined each quarter) for discounting, rather than pre-tax book yield of the investment portfolio, to calculate the expected losses to be paid. Expected losses to be paid (recovered) are based on probability weighted scenarios and serve as the basis for the loss reserves reported in accordance with U.S. GAAP.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (3 of 3)

As of December 31, 2024

(dollars in millions)

Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million

Net Par Outstanding

Internal Rating (1)

60+ Day Delinquencies

Name or description

U.S. public finance:

ProMedica Healthcare Obligated Group, Ohio

820

PREPA

532

CCC

Palomar Health

374

Jackson Water & Sewer System, Mississippi

148

Puerto Rico Municipal Finance Agency

CCC

New Jersey City University

Stockton City, California

Harrisburg Parking System, Pennsylvania

San Jacinto River Authority (GRP Project), Texas

BB+

Indiana University of Pennsylvania, Pennsylvania

CCC

Total U.S. public finance

2,328

Non-U.S. public finance:

Southern Water Services Limited

2,611

Thames Water Utilities Finance Plc

2,133

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

519

B+

Q Energy - Phase II - Pride Investments, S.A.

260

BB+

Hypersol Solar Inversiones, S.A.U.

253

BB+

Q Energy - Phase III - FSL Issuer, S.A.U.

237

B+

Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc

111

BB+

Q Energy - Phase IV - Anselma Issuer, S.A.

101

BB+

Road Management Services PLC (A13 Highway)

B+

Total non-U.S. public finance

6,324

Total public finance

8,652

U.S. structured finance:

RMBS:

Option One 2007-FXD2

15.2%

Option One Mortgage Loan Trust 2007-HL1

CCC

22.5%

Argent Securities Inc. 2005-W4

CCC

9.8%

Nomura Asset Accept. Corp. 2007-1

CCC

16.3%

Total RMBS-U.S. structured finance

338

Total non-U.S. structured finance

—

Total structured finance

338

Total

8,990

1) Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (1 of 3)

As of December 31, 2024

(dollars in millions)

50 Largest U.S. Public Finance Exposures by Revenue Source

Credit Name:

Net Par Outstanding

Internal Rating

New Jersey (State of)

2,362

BBB

Pennsylvania (Commonwealth of)

2,132

BBB+

Lower Colorado River Authority

1,642

Metro Washington Airports Authority (Dulles Toll Road)

1,631

BBB+

JFK New Terminal One, New York

1,600

BBB-

Alameda Corridor Transportation Authority, California

1,373

BBB

North Texas Tollway Authority

1,355

A+

New York Power Authority

1,334

AA-

New York Metropolitan Transportation Authority

1,314

A-

Foothill/Eastern Transportation Corridor Agency, California

1,269

BBB+

Philadelphia Water & Wastewater, Pennsylvania

1,150

South Carolina Public Service Authority - Santee Cooper

1,149

BBB

Brightline Trains Florida LLC

1,133

BBB-

Montefiore Medical Center, New York

1,129

BBB-

Central Florida Expressway Authority, Florida

1,054

A+

North Carolina Turnpike Authority

1,046

BBB

CommonSpirit Health, Illinois

1,000

A-

San Joaquin Hills Transportation, California

985

BBB

Yankee Stadium LLC New York City Industrial Development Authority

929

BBB

JFK Terminal 6, New York

921

BBB-

Harris County - Houston Sports Authority, Texas

907

A-

Municipal Electric Authority of Georgia

899

BBB+

Illinois (State of)

882

BBB

San Diego Family Housing, LLC

880

Philadelphia School District, Pennsylvania

869

A-

Chicago Water, Illinois

854

BBB+

Metropolitan Pier and Exposition Authority, Illinois

848

BBB-

ProMedica Healthcare Obligated Group, Ohio

820

Pittsburgh Water & Sewer, Pennsylvania

787

A-

Dade County Seaport, Florida

780

A-

Houston Airport System, Texas

767

Thomas Jefferson University

765

A-

California (State of)

745

AA-

Chicago Public Schools, Illinois

715

BBB-

Maine (State of)

706

Tucson (City of), Arizona

679

A+

Nassau County, New York

674

AA-

Pennsylvania Turnpike Commission

658

A-

Massachusetts (Commonwealth of) Water Resources

656

Wisconsin (State of)

654

Anaheim (City of), California

642

A-

Clark County School District, Nevada

642

A-

New York Transportation Development Corporation (LaGuardia Airport Terminal Redevelopment Project)

637

BBB-

Philadelphia (City of), Pennsylvania

636

A-

New York (City of), New York

636

AA-

Chicago-O'Hare International Airport, Illinois

626

A-

Pittsburgh International Airport, Pennsylvania

617

A-

Chicago (City of) Wastewater Transmission, Illinois

603

BBB+

Mets Queens Ballpark

590

BBB

Private Transaction

590

BBB-

Total top 50 U.S. public finance exposures

48,272

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (2 of 3)

As of December 31, 2024

(dollars in millions)

25 Largest U.S. Structured Finance Exposures

Credit Name:

Net Par Outstanding

Internal Rating(1)

Private US Insurance Securitization

1,196

AA-

Private US Insurance Securitization

1,100

AA-

Private US Insurance Securitization

1,100

Private US Insurance Securitization

414

AA-

Private US Insurance Securitization

398

AA-

Private Middle Market CLO

167

DB Master Finance LLC

165

BBB

Private Middle Market CLO

125

BBB

SLM Student Loan Trust 2007-A

123

Private US Insurance Securitization

120

Private US Insurance Securitization

108

CWABS 2007-4

101

BBB+

Private Balloon Note Guarantee

100

Option One 2007-FXD2

Option One Mortgage Loan Trust 2007-HL1

CCC

Argent Securities Inc. 2005-W4

CCC

Private Subscription Finance Transaction

A-

CAPCO - Excess SIPC Excess of Loss Reinsurance

BBB

Private Balloon Note Guarantee

BBB

Private Other Structured Finance Transaction

A-

Nomura Asset Accept. Corp. 2007-1

CCC

Private Balloon Note Guarantee

CWALT Alternative Loan Trust 2007-HY9

BBB+

Wendy's Funding, LLC

BBB

New Century 2005-A

CCC

Total top 25 U.S. structured finance exposures

5,997

1) Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (3 of 3)

As of December 31, 2024

(dollars in millions)

50 Largest Non-U.S. Exposures by Revenue Source

Country

Net Par Outstanding

Internal Rating

Southern Water Services Limited

United Kingdom

2,611

Thames Water Utilities Finance Plc

United Kingdom

2,133

Southern Gas Networks PLC

United Kingdom

2,082

BBB+

Dwr Cymru Financing Limited

United Kingdom

1,838

A-

Anglian Water Services Financing PLC

United Kingdom

1,746

A-

National Grid Gas PLC

United Kingdom

1,657

A-

Yorkshire Water Services Finance Plc

United Kingdom

1,243

BBB

Channel Link Enterprises Finance PLC

France, United Kingdom

1,214

BBB

Quebec Province

Canada

1,021

AA-

Capital Hospitals (Issuer) PLC

United Kingdom

980

BBB-

Severn Trent Water Utilities Finance Plc

United Kingdom

980

BBB+

Verbund, Lease and Sublease of Hydro-Electric Equipment

Austria

962

AAA

British Broadcasting Corporation (BBC)

United Kingdom

958

A+

United Utilities Water PLC

United Kingdom

888

A-

Heathrow Funding Limited

United Kingdom

873

BBB

Wessex Water Services Finance Plc

United Kingdom

762

BBB+

National Grid Company PLC

United Kingdom

739

BBB+

South West Water UK

United Kingdom

709

BBB+

Aspire Defence Finance plc

United Kingdom

702

BBB+

Verdun Participations 2 S.A.S.

France

671

BBB-

South East Water

United Kingdom

636

BBB

Private Other Structured Finance Transaction

Australia

552

A-

Private International Sub-Sovereign Transaction

United Kingdom

543

A+

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

United Kingdom

519

B+

Campania Region - Healthcare receivable

Italy

508

BBB-

NewHospitals (St Helens & Knowsley) Finance PLC

United Kingdom

507

BBB+

University of Sussex

United Kingdom

501

BBB

North Staffordshire PFI, 32-year EIB Index-Linked Facility

United Kingdom

486

BBB-

Central Nottinghamshire Hospitals PLC

United Kingdom

483

BBB-

Derby Healthcare PLC

United Kingdom

450

BBB

Sydney Airport Finance Company

Australia

437

BBB+

The Hospital Company (QAH Portsmouth) Limited

United Kingdom

433

BBB

Sutton and East Surrey Water plc

United Kingdom

395

BBB

Envestra Limited

Australia

395

A-

International Infrastructure Pool

United Kingdom

367

AAA

International Infrastructure Pool

United Kingdom

367

AAA

International Infrastructure Pool

United Kingdom

367

AAA

University of Essex, United Kingdom

United Kingdom

367

BBB

South Lanarkshire Schools

United Kingdom

356

BBB

Western Power Distribution (South West) PLC

United Kingdom

343

BBB+

Northumbrian Water PLC

United Kingdom

321

BBB+

Catalyst Healthcare (Romford) Financing PLC

United Kingdom

317

BBB

Private International Sub-Sovereign Transaction

United Kingdom

311

Comision Federal De Electricidad (CFE) El Cajon Project

Mexico

300

BBB-

Portsmouth Water, United Kingdom

United Kingdom

286

BBB

Western Power Distribution (South Wales) PLC

United Kingdom

282

BBB+

Japan Expressway Holding and Debt Repayment Agency

Japan

281

A+

South Staffordshire Water PLC

United Kingdom

280

A-

Bakethin Finance Plc

United Kingdom

279

A-

Private International Sub-Sovereign Transaction

United Kingdom

269

Total top 50 non-U.S. exposures

36,707

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Asset Management Segment

Assured Guaranty Ltd.

Asset Management Segment Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023

Segment revenues	$	—	$	5	$	10	$	76
Segment expenses	—		3		6		78
Equity in earnings (losses) of investees	—		5		2		5
Segment adjusted operating income (loss) before income taxes	—		7		6		3
Less: Provision (benefit) for income taxes	—		1		1		—
Segment adjusted operating income (loss)	$	—	$	6	$	5	$	3

Corporate Division

Assured Guaranty Ltd.

Corporate Division Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2024		2023		2024		2023
Revenues
Gain on sale of asset management subsidiaries	$	—	$	7	$	—	$	262
Other	4		5		17		13
Total revenues	4		12		17		275

Expenses
Interest expense	26		26		101		99
Employee compensation and benefit expenses	7		10		32		38
Other operating expenses	8		15		36		79
Total expenses	41		51		169		216
Equity in earnings (losses) of investees	5		—		5		—
Adjusted operating income (loss) before income taxes	(32)		(39)		(147)		59
Less: Provision (benefit) for income taxes	2		(23)		(12)		14
Adjusted operating income (loss)	$	(34)	$	(16)	$	(135)	$	45

Other

Assured Guaranty Ltd.

Other Results (1 of 2)

(dollars in millions)


	Three Months Ended December 31, 2024
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
Revenues

Net earned premiums	$	(1)	—		$	—	$	(1)
Net investment income	(1)		—		(3)		(4)


Fair value gains (losses) on CIVs	—		15		—		15


Total revenues	(2)		15		(3)		10
Expenses
Loss expense (benefit)	(2)		—		—		(2)
Interest expense	—		—		(3)		(3)

Total expenses	(2)		—		(3)		(5)
Equity in earnings (losses) of investees	—		(9)		—		(9)
Adjusted operating income (loss) before income taxes	—		6		—		6
Less: Provision (benefit) for income taxes	—		—		—		—
Less: Noncontrolling interests	—		4		—		4
Adjusted operating income (loss)	$	—	$	2	$	—	$	2


	Three Months Ended December 31, 2023
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
Revenues

Net investment income	$	(1)	$	—	$	(3)	$	(4)
Fair value gains (losses) on FG VIEs	10		—		—		10
Fair value gains (losses) on CIVs	—		28		—		28
Other income (loss)	(1)		—		—		(1)
Total revenues	8		28		(3)		33
Expenses

Interest expense	(3)		—		—		(3)
Other operating expenses	—		—		(3)		(3)
Total expenses	(3)		—		(3)		(6)
Equity in earnings (losses) of investees	—		(24)		—		(24)
Adjusted operating income (loss) before income taxes	11		4		—		15
Less: Provision (benefit) for income taxes	2		1		—		3
Less: Noncontrolling interests	—		3		—		3
Adjusted operating income (loss)	$	9	$	—	$	—	$	9

Assured Guaranty Ltd.

Other Results (2 of 2)

(dollars in millions)


	Year Ended December 31, 2024
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
Revenues
Net earned premiums	$	(3)	$	—	$	—	$	(3)
Net investment income	(3)		—		(10)		(13)

Fair value gains (losses) on FG VIEs	(11)		—		—		(11)
Fair value gains (losses) on CIVs	—		69		—		69

Other income (loss)	(2)		(2)		—		(4)
Total revenues	(19)		67		(10)		38
Expenses
Loss expense (benefit)	(7)		—		—		(7)
Interest expense	—		—		(10)		(10)

Total expenses	(7)		—		(10)		(17)
Equity in earnings (losses) of investees	—		(47)		—		(47)
Adjusted operating income (loss) before income taxes	(12)		20		—		8
Less: Provision (benefit) for income taxes	(2)		—		—		(2)
Less: Noncontrolling interests	—		16		—		16
Adjusted operating income (loss)	$	(10)	$	4	$	—	$	(6)


	Year Ended December 31, 2023
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
Revenues
Net earned premiums	$	(3)	$	—	$	—	$	(3)
Net investment income	(3)		—		(10)		(13)
Asset management fees	—		(25)		14		(11)
Fair value gains (losses) on FG VIEs	8		—		—		8
Fair value gains (losses) on CIVs	—		88		—		88
Foreign exchange gains (losses) on remeasurement	—		(1)		—		(1)
Other income (loss)	(4)		(3)		—		(7)
Total revenues	(2)		59		4		61
Expenses
Loss expense (benefit)	3		—		—		3
Interest expense	—		—		(10)		(10)
Other operating expenses	—		(1)		14		13
Total expenses	3		(1)		4		6
Equity in earnings (losses) of investees	—		(59)		—		(59)
Adjusted operating income (loss) before income taxes	(5)		1		—		(4)
Less: Provision (benefit) for income taxes	(1)		(4)		—		(5)
Less: Noncontrolling interests	—		22		—		22
Adjusted operating income (loss)	$	(4)	$	(17)	$	—	$	(21)

Summary

Assured Guaranty Ltd.

Summary of Financial and Statistical Data

(dollars in millions, except per share amounts)


	Year Ended December 31,
	2024		2023		2022		2021		2020
GAAP Summary Statements of Operations Data
Net earned premiums	$	403	$	344	$	494	$	414	$	485
Net investment income	340		365		269		269		297
Total expenses	446		733		536		465		729
Income (loss) before income taxes	426		640		187		383		386
Net income (loss) attributable to AGL	376		739		124		389		362
Net income (loss) attributable to AGL per diluted share	6.87		12.30		1.92		5.23		4.19

GAAP Summary Balance Sheet Data
Total investments and cash	$	8,784	$	9,212	$	8,472	$	9,728	$	10,000
Total assets	11,901		12,539		16,843		18,208		15,334
Unearned premium reserve	3,719		3,658		3,620		3,716		3,735
Loss and LAE reserve	268		376		296		869		1,088
Long-term debt	1,699		1,694		1,675		1,673		1,224
Shareholders’ equity attributable to AGL	5,495		5,713		5,064		6,292		6,643
Shareholders’ equity attributable to AGL per share	108.80		101.63		85.80		93.19		85.66

Other Financial Information (GAAP Basis)
Financial guaranty:
Net debt service outstanding (end of period)	$	415,966	$	397,636	$	369,951	$	367,360	$	366,233
Gross debt service outstanding (end of period)	416,463		398,037		370,172		367,770		366,692
Net par outstanding (end of period)	261,552		249,153		233,258		236,392		234,153
Gross par outstanding (end of period)	262,032		249,535		233,438		236,765		234,571

Other Financial Information (Statutory Basis) (1)
Financial guaranty:
Net debt service outstanding (end of period)	$	415,454	$	396,448	$	366,883	$	362,013	$	360,392
Gross debt service outstanding (end of period)	415,951		396,849		367,103		362,423		360,852
Net par outstanding (end of period)	260,911		247,833		230,294		231,742		229,008
Gross par outstanding (end of period)	261,391		248,215		230,474		232,115		229,426

Claims-paying resources (2)
Policyholders' surplus	$	4,329	$	4,807	$	5,155	$	5,572	$	5,077
Contingency reserve	1,392		1,296		1,202		1,225		1,557
Qualified statutory capital	5,721		6,103		6,357		6,797		6,634
Unearned premium reserve and net deferred ceding commission income	2,964		2,955		2,941		2,972		2,983
Loss and LAE reserves	53		145		165		167		202
Total policyholders' surplus and reserves	8,738		9,203		9,463		9,936		9,819
Present value of installment premium	1,073		1,062		955		883		858
CCS	400		400		400		400		400
Total claims-paying resources	$	10,211	$	10,665	$	10,818	$	11,219	$	11,077

Ratios:
Net exposure to qualified statutory capital	46:1		41:1		36:1		34:1		35:1
Capital ratio	73:1		66:1		58:1		53:1		54:1
Financial resources ratio	41:1		37:1		34:1		32:1		33:1
Adjusted statutory net exposure to claims-paying resources	26:1		24:1		21:1		21:1		21:1

Par and Debt Service Written (Financial Guaranty and Specialty)
Gross debt service written:
Public finance - U.S.	$	44,019	$	41,902	$	36,954	$	35,572	$	33,596
Public finance - non-U.S.	3,302		3,286		756		1,890		1,860
Structured finance - U.S.	1,495		2,130		1,120		1,319		508
Structured finance - non-U.S.	4,078		3,084		551		431		254
Total gross debt service written	$	52,894	$	50,402	$	39,381	$	39,212	$	36,218

Net debt service written	$	52,760	$	50,402	$	39,381	$	39,212	$	35,965
Net par written	31,695		28,960		22,047		26,656		23,012
Gross par written	31,829		28,960		22,047		26,656		23,265

1) Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.

2) See page 19 for additional detail on claims-paying resources.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations(1) (1 of 2)

(dollars in millions, except per share amounts)


	Year Ended December 31,
	2024		2023		2022		2021		2020
Total GWP	$	440	$	357	$	360	$	377	$	454
Less: Installment GWP and other GAAP adjustments (2)	300		247		145		158		191
Upfront GWP	140		110		215		219		263
Plus: Installment premiums and other(3)	262		294		160		142		127
Total PVP	$	402	$	404	$	375	$	361	$	390

PVP:
Public finance - U.S.	$	270	$	212	$	257	$	235	$	292
Public finance - non-U.S.	67		83		68		79		82
Structured finance - U.S.	25		68		43		42		14
Structured finance - non-U.S.	40		41		7		5		2
Total PVP	$	402	$	404	$	375	$	361	$	390

Adjusted operating income reconciliation:
Net income (loss) attributable to AGL	$	376	$	739	$	124	$	389	$	362
Less pre-tax adjustments:
Realized gains (losses) on investments	9		(14)		(56)		15		18
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	14		106		(18)		(64)		65
Fair value gains (losses) on CCS	(10)		(35)		24		(28)		(1)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(26)		51		(110)		(21)		42
Total pre-tax adjustments	(13)		108		(160)		(98)		124
Less tax effect on pre-tax adjustments	—		(17)		17		17		(18)
Adjusted operating income (loss)	$	389	$	648	$	267	$	470	$	256

Adjusted operating income per diluted share reconciliation:
Net income (loss) attributable to AGL per diluted share	$	6.87	$	12.30	$	1.92	$	5.23	$	4.19
Less pre-tax adjustments:
Realized gains (losses) on investments	0.16		(0.23)		(0.87)		0.20		0.21
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	0.27		1.75		(0.27)		(0.85)		0.75
Fair value gains (losses) on CCS	(0.19)		(0.57)		0.37		(0.38)		(0.01)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(0.47)		0.84		(1.72)		(0.29)		0.49
Total pre-tax adjustments	(0.23)		1.79		(2.49)		(1.32)		1.44
Tax effect on pre-tax adjustments	—		(0.27)		0.27		0.23		(0.22)
Adjusted operating income (loss) per diluted share	$	7.10	$	10.78	$	4.14	$	6.32	$	2.97

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

3) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations (1) (2 of 2)

(dollars in millions, except per share amounts)


	As of December 31,
	2024		2023		2022		2021		2020
Adjusted book value reconciliation:
Shareholders’ equity attributable to AGL	$	5,495	$	5,713	$	5,064	$	6,292	$	6,643
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	49		34		(71)		(54)		9
Fair value gains (losses) on CCS	2		13		47		23		52
Unrealized gain (loss) on investment portfolio	(397)		(361)		(523)		404		611
Less taxes	46		37		68		(72)		(116)
Adjusted operating shareholders’ equity	5,795		5,990		5,543		5,991		6,087
Pre-tax adjustments:
Less: Deferred acquisition costs	176		161		147		131		119
Plus: Net present value of estimated net future revenue	202		199		157		160		182
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed	3,473		3,436		3,428		3,402		3,355
Plus taxes	(702)		(699)		(602)		(599)		(597)
Adjusted book value	$	8,592	$	8,765	$	8,379	$	8,823	$	8,908

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $0, $(1), $(4), $(5), and $-)	$	—	$	5	$	17	$	32	$	2
Adjusted book value (net of tax (provision) benefit of $(2), $0, $(3), $(3), and $2)	$	(6)	$	—	$	11	$	23	$	(8)

Adjusted book value per share reconciliation:
Shareholders’ equity attributable to AGL per share	$	108.80	$	101.63	$	85.80	$	93.19	$	85.66
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	0.96		0.61		(1.21)		(0.80)		0.12
Fair value gains (losses) on CCS	0.05		0.22		0.80		0.34		0.66
Unrealized gain (loss) on investment portfolio	(7.86)		(6.40)		(8.86)		5.99		7.89
Less taxes	0.90		0.66		1.15		(1.07)		(1.50)
Adjusted operating shareholders’ equity per share	114.75		106.54		93.92		88.73		78.49
Pre-tax adjustments:
Less: Deferred acquisition costs	3.47		2.87		2.48		1.95		1.54
Plus: Net present value of estimated net future revenue	3.99		3.54		2.66		2.37		2.35
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed	68.75		61.12		58.10		50.40		43.27
Plus taxes	(13.90)		(12.41)		(10.22)		(8.88)		(7.70)
Adjusted book value per share	$	170.12	$	155.92	$	141.98	$	130.67	$	114.87

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders' equity per share	$	0.01	$	0.07	$	0.28	$	0.47	$	0.03
Adjusted book value per share	$	(0.13)	$	—	$	0.19	$	0.34	$	(0.10)

1) See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Glossary

Financial Guaranty Insurance

Net Par Outstanding and Internal Ratings

Net Par Outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.

Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.

Statutory Net Par and Net Debt Service Outstanding. Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).

Performance Indicators

The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:

60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.

Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’s exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.

Sectors

Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2024.

U.S. Public Finance:

General Obligation Bonds are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.

Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.

Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

Transportation Bonds include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

Healthcare Bonds are obligations of healthcare facilities, including community based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

Glossary (continued)

Sectors (continued)

Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.

Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

Investor-Owned Utility Bonds are obligations primarily issued by investor-owned utilities, and include first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, as well as sale-leaseback obligation bonds supported by such entities.

Renewable Energy Bonds are obligations backed by revenue from renewable energy sources.

Other Public Finance Bonds include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, and obligations of some not-for-profit organizations.

Non-U.S. Public Finance:

Regulated Utility Obligations are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities’ customers. The majority of the Company’s non-U.S. regulated utility business is conducted in the U.K.

Infrastructure Finance Obligations are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodations, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company’s non-U.S. infrastructure business is conducted in the U.K.

Sovereign and Sub-Sovereign Obligations primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.

Renewable Energy Bonds are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company’s non-U.S. renewable energy business is conducted in Spain.

Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.

Structured Finance:

Insurance Securitizations are transactions, including life insurance transactions, where obligations are secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

Residential Mortgage-Backed Securities (RMBS) are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including “prime,” “subprime” and “Alt-A.” A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008.

Subscription Finance Facilities are lending facilities provided to closed-end private market funds, most frequently private-equity funds. The facilities are secured by the uncalled capital commitments of the limited partners (LP) to the fund. The Company may guarantee new or existing facilities and on a single facility or portfolio basis. Assured Guaranty’s exposures are generally to facilities with characteristics that include a high-quality fund sponsor with strong historical performance, a diverse LP base composed primarily of institutional LPs and experienced bank lenders.

Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in “tranches,” with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.

Glossary (continued)

Sectors (continued)

Financial Products Business is the guarantee of certain business written by financial products companies owned by Dexia SA, which comprised guaranteed investment contracts (GICs), medium term notes (MTNs) and equity payment undertaking agreements associated with leveraged lease business. This business is being run off with the final maturity due in 2031. Assured Guaranty is indemnified by Dexia SA and certain of its affiliates against loss from the former financial products business.

Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables.

Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other U.S. and Non-U.S. Structured Finance Obligations categories above.

Specialty Business

The Company also guarantees specialty business with similar risk profiles to its structured finance exposures written in financial guaranty form. Specialty business includes, for example, diversified real estate, insurance securitizations, pooled corporate obligations and aircraft residual value insurance (RVI) transactions.

Non-GAAP Financial Measures

Adjusted Operating Income: Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

Non-GAAP Financial Measures (continued)

5) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Adjusted Operating Shareholders’ Equity and Adjusted Book Value: Management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:

3) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not recognize an economic gain or loss.

4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2) Addition of the net present value of estimated net future revenue. See below.

4) The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Non-GAAP Financial Measures (continued)

Adjusted Operating Return on Equity (Adjusted Operating ROE): Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL’s share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.

Net Present Value of Estimated Net Future Revenue: Management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

PVP or Present Value of New Business Production: Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.

Assured Guaranty Ltd.

30 Woodbourne Avenue

Hamilton HM 08

Bermuda

(441) 279-5705

www.assuredguaranty.com

Contacts:

Equity and Fixed Income Investors:

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

(212) 339-0861

rtucker@agltd.com

Michael Walker

Managing Director, Fixed Income Investor Relations

(212) 261-5575

mwalker@agltd.com

Andre Thomas

Managing Director, Equity Investor Relations

(212) 339-3551

athomas@agltd.com

Media:

Ashweeta Durani

Director, Media Relations

(212) 408-6042

adurani@agltd.com

Cover Page Cover Page	Feb. 27, 2025
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 27, 2025
Entity Registrant Name	ASSURED GUARANTY LTD.
Entity Incorporation, State or Country Code	D0
Entity File Number	001-32141
Entity Tax Identification Number	98-0429991
Entity Address, Address Line One	30 Woodbourne Avenue
Entity Address, City or Town	Hamilton
Entity Address, Postal Zip Code	HM 08
Entity Address, Country	BM
City Area Code	441
Local Phone Number	279-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001273813
Common Shares \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Shares
Trading Symbol	AGO
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 6.125% Senior Notes Due 2028 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 6.125% Senior Notes due 2028 (and the related guarantee of Registrant)
Trading Symbol	AGO/28
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant)
Trading Symbol	AGO/31
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant)
Trading Symbol	AGO/51
Security Exchange Name	NYSE

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