Assured Guaranty Reports Third-Quarter Net Income of $78 Million

The Tip Desk · November 7, 2026 · 4 min read

Gross written premiums were $127 million in the third quarter as present value of new business reached $128 million.

Assured Guaranty Ltd. (AGO), the Bermuda-based financial guarantor, reported gross written premiums of $127 million for the three months ended September 30, 2026, up from $81 million in the second quarter and $75 million a year earlier. Present value of new business production was $128 million.

President and CEO Dominic Frederico said new business in the first nine months of 2026 generated $278 million of GWP and $280 million of PVP, with all three markets posting year-over-year increases. Global structured finance doubled both GWP and PVP.

U.S. public finance GWP was $87 million and PVP $93 million, versus $77 million and $78 million a year earlier. The company said infrastructure finance, transportation revenue and municipal utility revenue transactions were significant contributors. Non-U.S. public finance GWP was $21 million and PVP $20 million, versus negative $13 million of GWP and $5 million of PVP a year earlier, when early repayment of several U.K. sub-sovereign credits had reversed written premiums. The company attributed the third-quarter non-U.S. public finance result primarily to an infrastructure finance transaction in France and a regulated energy transaction in Spain.

Combined global structured finance GWP and PVP were $19 million and $15 million, versus $11 million and $8 million a year earlier. The company said results were primarily attributable to fund finance transactions, a commercial real estate balloon note guaranty and a non-U.S. consumer receivables auto lending facility.

Net income attributable to AGL was $78 million, or $1.75 a share, versus $39 million, or $0.88 a share, in the second quarter and $105 million, or $2.18 a share, a year earlier. Adjusted operating income was $86 million, or $1.94 a share, versus $55 million, or $1.23 a share, in the second quarter and $124 million, or $2.57 a share, a year earlier.

Financial Guaranty segment adjusted operating income was $115 million, versus $85 million in the second quarter and $145 million a year earlier. The company said the year-over-year decline was primarily due to a $1 million loss expense versus a $31 million benefit a year earlier, fair value losses on trading securities of $2 million versus $8 million of gains, and a $7 million decrease in equity in earnings of investees, partially offset by a $16 million increase in net earned premiums and credit derivative revenues.

Net earned premiums and credit derivative revenues were $115 million, versus $99 million a year earlier, with scheduled revenues of $97 million versus $93 million and accelerations and modifications of $18 million versus $6 million. The company said scheduled revenues rose primarily due to continued growth in shorter duration strategies like fund finance and higher scheduled public finance net earned premiums.

Loss expense was a $1 million expense versus a $31 million benefit a year earlier. U.S. RMBS was a $1 million benefit versus a $26 million benefit, which the company said was primarily due to updates of recoveries for charged-off second lien loans in the year-ago quarter. Public finance loss expense was $1 million versus a $7 million benefit.

Net economic loss development was a $27 million benefit, taking net expected loss to be paid to $113 million from $192 million at June 30, 2026. Public finance expected losses fell to $91 million from $174 million. The company said the economic benefit was primarily attributable to additional liquidity available to Brightline Trains Florida LLC as a result of its recent proposed restructuring; Assured Guaranty insures 51% of Brightline’s senior revenue bonds.

Shareholders’ equity attributable to AGL per share was $122.91 as of September 30, 2026, down from $126.18 as of June 30, 2026. The company said the decline was primarily due to unrealized losses on the investment portfolio due largely to the rising interest rate environment. Adjusted operating shareholders’ equity per share was $131.99 and adjusted book value per share was $192.60, which Frederico said were the highest per-share levels in the company’s history.

The Annuity Reinsurance segment, created by the January 2026 acquisition of Warwick Re Limited (renamed Assured Life Re), contributed $1 million of adjusted operating income. Asset Management adjusted operating income was $2 million. The Corporate division recorded a $31 million adjusted operating loss.

Capital returned to shareholders in the third quarter was $27 million, including $10 million of share repurchases and $17 million of dividends. As of November 4, 2026, the company was authorized to repurchase an additional $121 million of common shares.