Assured Guaranty (AGO) Q2 2026 earnings summary

Executive summary

• Adjusted operating income for Q2 2026 was $55 million ($1.23 per share), up 22% year-over-year, with $170 million ($3.74 per share) for the first half; net income was $39 million for Q2 and $127 million for the first half, both lower year-over-year due to FX losses and lower equity in earnings of investees.

• Shareholders' equity per share, adjusted operating shareholders' equity per share, and adjusted book value per share reached record highs of $126.18, $129.94, and $189.72, respectively, as of June 30, 2026.

• New business production delivered $152 million of PVP in the first half, up nearly 50% year-over-year, led by U.S. public finance and global structured finance.

• The acquisition of Assured Life Re (formerly Warwick Re) expanded operations into annuity reinsurance, with the platform progressing ahead of schedule and strong market reception.

• Capital returned to shareholders totaled $62 million in Q2 2026, including $45 million in share repurchases and $17 million in dividends; $6 billion has been returned since 2013, reducing outstanding shares by 81%.

Financial highlights

• Net earned premiums rose 15% in Q2 2026 and 2% for the first half year-over-year, driven by higher refundings and growth in shorter duration strategies.

• Net investment income increased 10% in Q2 and 8% for the first half year-over-year, with alternative investments maintaining a 12% inception-to-date annualized IRR.

• Loss and LAE dropped from $28 million in Q2 2025 to $4 million in Q2 2026, and from $68 million to $21 million for the first half.

• Net income attributable to shareholders was $39 million in Q2 2026 (down 62% year-over-year) and $127 million for the first half (down 54% year-over-year), primarily due to FX losses and lower equity in earnings of investees.

• Gross written premiums for Q2 2026 were $81 million; PVP was $79 million.

Outlook and guidance

• Management expects continued strong new business production, robust demand for core products, and attractive prospects for annuity reinsurance in the second half of 2026.

• Strong pipeline for the third quarter, with $42 million of PVP already expected from new transactions.

• Plans to pay a $72 million dividend in Q3 2026; remaining dividend capacity for 2026 is $144 million for AG and $153 million for AG Re.