Assured Guaranty reports record book value amid mixed earnings
The company's adjusted book value per share reached a record high of $189.72 as of June 30, 2026.
Assured Guaranty (AGO), the insurance provider, reported a decrease in net income attributable to the company to $39 million, or $0.88 a share, for the second quarter of 2026. The result follows a second-quarter 2025 net income of $103 million, or $2.08 a share.
Adjusted operating income rose to $55 million, or $1.23 a share, from $50 million, or $1.01 a share, in the prior-year period. However, the figure declined sequentially from $115 million, or $2.50 a share, in the first quarter of 2026.
Growth was concentrated in new business production. Gross written premiums and present value of new business production for the first half of 2026 increased 26% and 48% respectively compared to the first half of 2025. In the second quarter, structured finance gross written premiums and present value of new business production rose 375% and 125% respectively over the same period last year.
The Financial Guaranty segment's adjusted operating income rose to $85 million from $76 million in the second quarter of 2025. This increase was supported by $14 million in higher net earned premiums and credit derivative revenues, alongside a drop in loss expense to $5 million from $27 million. Lower loss expense was due to reduced costs related to a U.K. regulated utility and certain U.S. municipal and healthcare exposures.
U.S. public finance gross written premiums decreased in the second quarter compared to the prior year, though present value of new business production increased due to infrastructure finance transactions. The company's primary par written share of the total U.S. municipal market insured par sold fell to 51% from 64% in the second quarter of 2025, while penetration of all municipal issuance dropped to 3.3% from 6.0%.
Other segments showed volatility. The Asset Management segment reported an adjusted operating loss of $4 million, compared to an operating income of $4 million in the second quarter of 2025 and $44 million in the first quarter of 2026. Equity in earnings of investees shifted to a loss of $10 million from a gain of $2 million, primarily due to $19 million in mark-to-market losses on CLO investments.
The Annuity Reinsurance segment, acquired on January 21, 2026, reported its first full quarter of results with an adjusted operating income of $2 million.
Capital returned to shareholders in the second quarter was $62 million, including $45 million in share repurchases, down from $93 million returned in the first quarter.