Assured Guaranty Earnings Call Transcripts
Fiscal Year 2026
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9M PVP increased 44% to $280m, with growth across all financial guaranty lines and record per-share valuation metrics. Adjusted Q3 operating income was $86m; 2026 PVP guidance exceeds $400m, supported by a strong pipeline and faster-earning structured finance.
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Record highs in equity metrics and a 48% year-over-year increase in new business PVP highlighted a strong first half, with robust U.S. and international growth. Adjusted operating income per share rose 22%, and capital allocation is shifting toward high-ROE growth opportunities.
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Adjusted operating income reached $115 million ($2.50/share) in Q1 2026, with strong growth in new business production and asset management. Share repurchases slowed to support expansion in financial guarantee and annuity reinsurance, while alternative investments delivered a 12% IRR.
Fiscal Year 2025
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Record per-share highs in book value and operating income were achieved in 2025, driven by strong municipal bond insurance, alternative investments, and the launch of an annuity reinsurance business. Shareholder returns were boosted by significant buybacks and a 12% dividend increase.
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Record adjusted book value and operating equity per share were achieved, with strong growth in U.S. public finance and robust investment returns. Share repurchases and new business production contributed to long-term value, while management sees continued growth opportunities in secondary markets and global structured finance.
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Record book value and strong H1 results were driven by robust U.S. municipal issuance, high-quality business mix, and increased secondary market activity. Q2 adjusted operating income declined year-over-year due to higher loss expenses and lower alternative investment gains.
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Adjusted operating income per share rose 62% year-over-year to $3.18, driven by a $103 million litigation gain and strong investment returns. New business production was $39 million, with leadership in U.S. municipal bond insurance and increased secondary market activity.
Fiscal Year 2024
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Adjusted operating income per share reached $7.10 in 2024, with record highs in book value metrics and robust new business production across all segments. Share repurchases and dividend increases highlighted strong capital management, while risk exposures remain well monitored.
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Record adjusted book value and strong new business drove higher year-to-date income and robust share repurchases. U.K. utility exposures are well-managed, with minimal expected losses, and international expansion is delivering higher returns.
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Adjusted operating income per share more than doubled year-over-year, driven by strong new business production and robust segment performance in U.S. public finance, international, and structured finance. The recent merger streamlined operations and capital, while share repurchases and capital management remain key priorities.