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ASSURED GUARANTY LTD

For the period ended Mar 31, 2025. Filed May 9, 2025.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2025 · Filed May 9, 2025

AGO$73.93+0.2%Stored close · as of Nov 10, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Reconciliation to GAAP

Reconciliation of Net Income (Loss) Attributable to AGL

to Adjusted Operating Income (Loss)

First Quarter 2025First Quarter 2024
TotalPer Diluted ShareTotalPer Diluted Share
(in millions, except per share amounts)
Net income (loss) attributable to AGL$176$3.44$109$1.89
Less pre-tax adjustments:
Realized gains (losses) on investments(16)(0.30)80.14
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives(2)(0.04)100.16
Fair value gains (losses) on CCS20.03(10)(0.17)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves330.64(12)(0.20)
Total pre-tax adjustments170.33(4)(0.07)
Less tax effect on pre-tax adjustments(3)(0.07)——
Adjusted operating income (loss)$162$3.18$113$1.96
Gain (loss) related to FG VIE and CIV consolidation (net of tax provision (benefit) of $1 and $0) included in adjusted operating income$2$0.05$—$—

The table below presents the components of net realized investment gains (losses).

First Quarter
20252024
(in millions)
Gross realized gains on sales of available-for-sale securities$3$1
Gross realized losses on sales of available-for-sale securities(8)(3)
Net foreign currency gains (losses)(1)—
Change in the allowance for credit losses and intent to sell (1)(10)10
Net realized investment gains (losses)$(16)$8

(1) Relates primarily to Loss Mitigation Securities.

Non-Credit Impairment-Related Unrealized Fair Value Gains (Losses) on Credit Derivatives

Changes in the fair value of credit derivatives occur because of changes in the Company’s own credit rating and credit spreads, collateral credit spreads, notional amounts, credit ratings of the referenced entities, expected terms, realized gains (losses) and other settlements, interest rates and other market factors. The components of changes in fair value of credit derivatives related to credit derivative revenues and changes in expected losses are included in Insurance segment results. Non-credit impairment-related changes in unrealized fair value gains and losses on credit derivatives are not included in the Insurance segment measure of adjusted operating income because they do not represent actual claims or losses and are expected to reverse to zero as the exposure approaches its maturity date. Changes in the fair value of the Company’s credit derivatives that do not reflect actual or expected claims or credit losses have no impact on the Company’s statutory claims-paying resources, rating agency capital or regulatory capital positions. Unrealized gains (losses) on credit derivatives may fluctuate significantly in future periods. Except for underlying credit impairment, which is recognized as loss expense in the Insurance segment, the fair value adjustments on credit derivatives in the insured portfolio are non-economic adjustments that reverse to zero over the remaining term of that portfolio. See Item 1, Financial Statements, Note 9, Fair Value Measurement, for additional information.

During first quarter 2025 non-credit impairment-related unrealized fair value losses of $2 million were generated primarily due to generally wider collateral asset spreads. During first quarter 2024 non-credit impairment-related unrealized fair value gains of $10 million were generated primarily as a result of the termination of certain structured finance policies.

Fair Value Gains (Losses) on CCS

Fair value gains on CCS of $2 million in first quarter 2025 were primarily due to a widening in market credit spreads. Fair value losses on CCS of $10 million in first quarter 2024 were primarily due to a tightening in market credit spreads. Fair value gains (losses) on CCS are heavily affected by, and in part fluctuate with, changes in market credit spreads and interest rates, and other market factors and are not expected to result in an economic gain or loss.

Foreign Exchange Gain (Loss) on Remeasurement

Foreign exchange gains of $33 million in first quarter 2025 and losses of $12 million in first quarter 2024 were primarily related to remeasurement of long-dated premiums receivable, for which the Company records the present value of future installment premiums, and are mainly due to changes in the exchange rate of the pound sterling and, to a lesser extent, the euro relative to the U.S. dollar. Approximately 69% of gross premiums receivable, net of commissions payable, as of both March 31, 2025 and December 31, 2024, are denominated in currencies other than the U.S. dollar, primarily the pound sterling and euro. Premiums on European infrastructure and structured finance transactions typically are paid, in whole or in part, on an installment basis, whereas premiums on U.S. public finance transactions are often paid upfront.

The following table presents the foreign exchange rates as of the balance sheet dates.

Foreign Exchange Rates

U.S. Dollar Per Foreign Currency

As of March 31, 2025As of December 31, 2024As of March 31, 2024As of December 31, 2023
Pound sterling$1.292$1.252$1.262$1.273
Euro$1.082$1.035$1.079$1.104
ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.