Assured Guaranty (AGO) Q1 2025 earnings summary

Executive summary

• Net income attributable to Assured Guaranty Ltd. was $176 million ($3.44 per share) for Q1 2025, up from $109 million in Q1 2024, driven by a $103 million gain from the LBIE litigation, strong investment performance, and higher foreign exchange gains.

• Adjusted operating income was $162 million ($3.18 per share), up from $113 million ($1.96 per share) in Q1 2024, supported by litigation gains and robust alternative investment returns.

• The company remains the leader in U.S. municipal bond insurance, capturing 64% of primary market insured par sold and 58% of insured transaction count.

• Asset management contributed $13 million to income, and alternative investments generated $59 million, the highest quarterly level to date.

• Returned $138 million to shareholders in Q1 2025, including $120 million in share repurchases and $18 million in dividends.

Financial highlights

• Total revenues for Q1 2025 were $345 million, up from $245 million in Q1 2024.

• Adjusted operating income for Q1 2025 was $162 million, up 62% year-over-year; adjusted operating income per share was $3.18.

• Pre-tax gain of $103 million from LBIE litigation, equating to an $82 million after-tax gain.

• Net investment income from fixed maturity and short-term investments was $90 million, up from $86 million in Q1 2024.

• Shareholders' equity per share reached $112.80; adjusted book value per share was $172.79 as of March 31, 2025.

Outlook and guidance

• Volatile market conditions are expected to drive increased demand for guarantees as investors seek reliable cash flow and capital preservation.

• The company anticipates continued strong pipeline in public finance, including A and BBB credits, and growth in secondary market business.

• Asset management and alternative investments are expected to remain key earnings diversifiers.

• Ongoing efforts to resolve remaining Puerto Rico exposures, with PREPA litigation and mediation extended through October 31, 2025.