Assured Guaranty (AGO) Q2 2024 earnings summary

Executive summary

• Adjusted operating income per share rose to $1.44 in Q2 2024, up from $0.60 in Q2 2023, with YTD adjusted operating income at $193 million ($3.41/share), more than double the prior year.

• Shareholders' equity per share increased to $104.15 as of June 30, 2024, with adjusted operating shareholders' equity and adjusted book value per share at $109.88 and $161.65, all reaching record highs.

• The merger of Assured Guaranty Municipal into Assured Guaranty Inc. was completed in August 2024, streamlining operations and capital structure.

• Capital returned to shareholders in Q2 2024 totaled $169 million, including $152 million in share repurchases and $17 million in dividends.

• New business production for the first half was strong and diversified across U.S. public finance, international infrastructure, and global structured finance.

Financial highlights

• Adjusted operating income for Q2 2024 was $80 million ($1.44 per share), more than double Q2 2023's $36 million ($0.60 per share).

• Net income attributable to AGL was $78 million for Q2 2024 and $187 million for the six months, down from prior year periods.

• Net earned premiums for Q2 2024 were $84 million; YTD net earned premiums were $203 million, up 22% year-over-year.

• Insurance segment adjusted operating income was $116 million for Q2 2024, up from $106 million in Q2 2023.

• No loss expense in Q2 2024, compared to $44 million in Q2 2023, with deferred premium revenue offsetting economic loss development.

Significant events and developments

• Completed the merger of AGM into AG, consolidating U.S. insurance operations and increasing claims-paying resources.

• The merger was viewed positively by rating agencies, with no change to financial strength ratings and recognition of enhanced capital and operational efficiencies.

• Upstreamed $300 million via a special dividend and $100 million stock redemption, both approved by regulators.

• Board authorized an additional $300 million for share repurchases in May 2024; $329 million repurchased year-to-date through August 6, 2024.

• Achieved a favorable appeals court ruling in the PREPA restructuring, increasing potential bondholder claims to $8.5 billion and resuming mediation.