ASSURED GUARANTY LTD
For the period ended Dec 31, 2025. Filed Feb 27, 2026.
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FY2025 · Filed Feb 27, 2026
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21. Parent Company
- Parent Company
The following tables present the condensed financial statements of Assured Guaranty Ltd.
Condensed Balance Sheets
| As of December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Assets | ||
| Investments | $57 | $66 |
| Investments in subsidiaries | 5,557 | 5,237 |
| Dividends receivable from subsidiaries | — | 150 |
| Other assets (1) | 70 | 69 |
| Total assets | $5,684 | $5,522 |
| Liabilities | ||
| Other liabilities (1) | $21 | $27 |
| Total liabilities | $21 | $27 |
| Total shareholders’ equity attributable to AGL | $5,663 | $5,495 |
| Total liabilities and shareholders’ equity | $5,684 | $5,522 |
(1) Mainly consists of due from and due to affiliates.
Condensed Statements of Operations and Comprehensive Income
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Revenues | |||
| Net investment income | $2 | $2 | $1 |
| Net realized investment gains (losses) | — | — | (1) |
| Total revenues | 2 | 2 | — |
| Expenses | |||
| Other expenses (1) | 43 | 42 | 45 |
| Total expenses | 43 | 42 | 45 |
| Income (loss) before equity in earnings of subsidiaries | (41) | (40) | (45) |
| Equity in earnings of subsidiaries | 544 | 416 | 784 |
| Net income attributable to AGL | 503 | 376 | 739 |
| Other comprehensive income (loss) attributable to AGL | 217 | (26) | 156 |
| Comprehensive income (loss) attributable to AGL | $720 | $350 | $895 |
(1) Includes expense allocations from subsidiaries.
Condensed Statements of Cash Flows
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Cash flows from operating activities: | |||
| Net income attributable to AGL | $503 | $376 | $739 |
| Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
| Equity in earnings of subsidiaries | (544) | (416) | (784) |
| Net realized investment losses (gains) | — | — | 1 |
| Cash dividends from subsidiaries | 765 | 637 | 306 |
| Other | 42 | 28 | 36 |
| Net cash flows provided by (used in) operating activities | 766 | 625 | 298 |
| Cash flows from investing activities: | |||
| Fixed-maturity securities, available for sale: | |||
| Sales | 3 | — | — |
| Maturities and paydowns | — | 3 | — |
| Short-term investments with maturities of over three months: | |||
| Sales | — | — | 4 |
| Net sales (purchases) of short-term investments with original maturities of less than three months | 7 | (29) | (18) |
| Investment in subsidiaries | (176) | — | — |
| Net cash flows provided by (used in) investing activities | (166) | (26) | (14) |
| Cash flows from financing activities: | |||
| Dividends paid | (68) | (68) | (67) |
| Repurchases of common shares | (500) | (502) | (199) |
| Payments related to tax withholding for share-based compensation | (34) | (30) | (20) |
| Other | 2 | 2 | 2 |
| Net cash flows provided by (used in) financing activities | (600) | (598) | (284) |
| Increase (decrease) in cash and restricted cash | — | 1 | — |
| Cash and restricted cash at beginning of period | 1 | — | — |
| Cash and restricted cash at end of period | $1 | $1 | $— |
| As of December 31, | |||
| 2025 | 2024 | 2023 | |
| Reconciliation of cash and restricted cash to the balance sheets: | |||
| Cash | $— | $— | $— |
| Restricted cash (included in other assets) | 1 | 1 | — |
| Cash and restricted cash at the end of period | $1 | $1 | $— |
Basis of Presentation
These condensed financial statements of AGL should be read in conjunction with the Company’s consolidated financial statements and notes thereto. AGL is a Bermuda-based holding company that provides, through its wholly-owned operating subsidiaries, credit protection products to the U.S. and non-U.S. public finance (including infrastructure) and structured finance markets. Assured Guaranty also participates in the asset management business. See Note 1. Business and Basis of Presentation.
Guaranties of Obligations of Affiliates
AGL fully and unconditionally guarantees all of the U.S. Holding Companies’ debt. See Note 11. Long-Term Debt and Credit Facilities.
Credit Facility with Affiliate
On October 25, 2013, AGL, as borrower, and AGUS, as lender, entered into a revolving credit facility pursuant to which AGL may, from time to time, borrow for general corporate purposes. Under the credit facility, AGUS committed to lend a principal amount not exceeding $225 million in the aggregate. In October 2023, the commitment was extended until October 25, 2033 (the loan commitment termination date). The unpaid principal amount of each loan will bear interest at a fixed rate equal to 100% of the then applicable interest rate as determined under Section 1274(d) of the Code, and interest on all loans will be computed for the actual number of days elapsed on the basis of a year consisting of 360 days. Accrued interest on all loans will be paid on the last day of each June and December, and at maturity. AGL must repay the then unpaid principal amounts of the loans by the third anniversary of the loan commitment termination date. No amounts are currently outstanding under the credit facility.
Income Taxes
AGL is not subject to any income, withholding or capital gains taxes under current Bermuda law. In November 2013, AGL became tax resident in the U.K. although it remains a Bermuda-based company and its administrative and head office functions continue to be carried on in Bermuda. In July of 2023, the U.K. government passed legislation to implement the OECD BEPS Pillar Two income inclusion rule, which includes a multinational top-up tax which will apply to large multinational corporations for accounting periods beginning on or after December 31, 2023. Beginning in 2025, this applies to AGL, requiring a minimum effective rate of 15% in all jurisdictions in which it operates. See Note 13. Income Taxes.
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