Yahoo Finance

• Adjusted Book Value Per Share: $166.47, a record high at the end of the third quarter.

• Adjusted Operating Shareholders' Equity Per Share: $113.96, a record high at the end of the third quarter.

• Present Value of New Business Production (PVP): $281 million year-to-date, $32 million higher than the first three quarters of last year.

• Adjusted Operating Income: $5.80 per share year-to-date, 13% more than the first nine months of last year.

• Third Quarter Adjusted Operating Income: $130 million or $2.42 per share.

• Third Quarter Economic Loss Development: Benefit of $34 million.

• Deferred Premium Revenue: $3.8 billion.

• Net Investment Income: $82 million in the third quarter of 2024.

• Equity and Earnings from Alternative Investments: $28 million in the third quarter of 2024.

• Share Repurchases: 1.7 million shares for $131 million at an average price of $78.87 per share in the third quarter of 2024.

• Insurance Segment Adjusted Operating Income: $162 million in the third quarter of 2024.

• Asset Management Segment Contribution: $4 million in the third quarter of 2024.

• Warning! GuruFocus has detected 10 Warning Sign with AGO.

Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Assured Guaranty Ltd (NYSE:AGO) reported record highs in adjusted book value per share at $166.47 and adjusted operating shareholders' equity per share at $113.96.

• The company achieved strong new business production across its three market segments, with PVP reaching $281 million for the first three quarters of 2024, $32 million higher than the previous year.

• Assured Guaranty Ltd (NYSE:AGO) maintained its market leadership in municipal bond insurance, insuring 57% of all insured par sold year-to-date in the primary US municipal bond market.

• The merger of AGM into AG was completed, resulting in improved operating efficiency and better capital utilization, with no change to AG's ratings post-merger.

• The company continues to focus on capital management, repurchasing 10% of shares outstanding as of December 31, 2023, and targeting $500 million in share repurchases for next year.

Negative Points

• Third quarter 2024 adjusted operating income decreased to $130 million from $206 million in the third quarter of 2023, primarily due to the absence of a previous one-time gain.

• There was a $45 million increase in expected losses on certain UK regulated utilities downgraded to below investment grade.

• The company faces unresolved exposure related to technical difficulties in mediation, with a fair and consensual resolution yet to be achieved.

• Net investment income declined to $82 million in the third quarter of 2024 from $101 million in the third quarter of 2023, attributed to the portfolio of loss mitigation securities.

• The company is required by GAAP to apply probability weights to all possible scenarios, which may result in reporting a GAAP expected loss even if not expected in the most heavily weighted scenarios.