EX-99.2 3 agl1q25supplement.htm AGL FINANCIAL SUPPLEMENT

Assured Guaranty Ltd.

March 31, 2025

Financial Supplement

Table of Contents															Page
			Selected Financial Highlights												1
			Condensed Consolidated Statements of Operations (unaudited)												3
			Condensed Consolidated Balance Sheets (unaudited)												4
			Selected Financial Highlights GAAP to Non-GAAP Reconciliations												5
			Income Components												8
			Fixed-Maturity Securities, Short-Term Investments and Cash												10
			Investment Portfolio, Cash and CIVs												11
			Income from Investment Portfolio and CIVs												13
			Insurance Segment:												14
			Insurance Segment Results												15
			Claims-Paying Resources												16
			New Business Production												17
			Gross Par Written												18
			New Business Production by Quarter												19
			Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues												20
			Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid (Recovered)												21
			Loss Measures												22
			Net Expected Loss to be Expensed												23
			Financial Guaranty Profile												24
			Specialty Business												27
			Expected Amortization of Net Par Outstanding												28
			Puerto Rico Profile												29
			Direct Pooled Corporate Obligations Profile												30
			Below Investment Grade Exposures												31
			Largest Exposures by Sector												34
			Asset Management Segment												37
			Asset Management Results												38
			Corporate Division												39
			Corporate Results												40
			Other												41
			Other Results												42
			Summary												43
			Summary of Financial and Statistical Data												44
			Summary of GAAP to Non-GAAP Reconciliations												45
			Glossary												47
			Non-GAAP Financial Measures												50

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2024 and its Quarterly Reports on Form 10-Q for the quarterly period ended March 31, 2025.

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Cautionary Statement Regarding Forward Looking Statements

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty’s forward looking statements could be affected by many events. These events include: (i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates, tariff regimes or general economic conditions, including the possibility of a recession or stagflation; (ii) geopolitical risk, terrorism and political violence risk, including those arising out of Russia’s invasion of Ukraine and intentional or accidental escalation between The North Atlantic Treaty Organization and Russia, conflicts in South Asia and the Middle East, confrontation over Iran’s nuclear program, the polarized political environment in the United States (U.S.), and strategic competition and tensions between the U.S. and China; (iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets, including the markets in which the Company participates; (iv) the possibility of a U.S. government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (v) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S. and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (vi) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (vii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments, their related authorities, public corporations and other obligors that Assured Guaranty insures or reinsures; (viii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including below-investment-grade (BIG) healthcare, United Kingdom (U.K.) regulated utilities, European renewable energy, and Puerto Rico Electric Power Authority (PREPA) exposures; (ix) the impact of Assured Guaranty satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (x) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences; (xi) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (xii) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (xiii) the possibility that Assured Guaranty’s mergers, acquisitions, divestitures and other strategic transactions, including the transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP) and/or merger of Assured Guaranty Municipal Corp. (AGM) with and into Assured Guaranty Inc. (AG, formerly Assured Guaranty Corp.), do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences; (xiv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a minority interest; (xv) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities (CCS), and its consolidated variable interest entities (VIEs); (xvi) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; (xvii) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (xviii) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, including tariffs, or other governmental actions; (xix) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences; (xx) difficulties or delays with the execution of Assured Guaranty’s business strategy; (xxi) loss of key personnel; (xxii) changes in applicable accounting policies or practices; (xxiii) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (xxiv) natural or man-made catastrophes; (xxv) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (xxvi) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (xxvii) other risks and uncertainties that have not been identified at this time; and (xxviii) management’s response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

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Assured Guaranty Ltd.

Selected Financial Highlights (1 of 2)

(dollars in millions, except per share amounts)

									Three Months Ended
									March 31,
															2025						2024
GAAP (1) Highlights
Net income (loss) attributable to AGL															$	176					$	109
Net income (loss) attributable to AGL per diluted share															$	3.44					$	1.89
Weighted average shares outstanding
Basic shares outstanding															50.0						55.6
Diluted shares outstanding															50.7						57.1
Effective tax rate on net income															18.9		%				21.4		%
GAAP return on equity (ROE) (4)															12.7		%				7.7		%
Non-GAAP Highlights (2)
Adjusted operating income (loss)															$	162					$	113
Adjusted operating income (loss) per diluted share (2)															$	3.18					$	1.96
Weighted average diluted shares outstanding															50.7						57.1
Effective tax rate on adjusted operating income (3)															18.9		%				20.9		%
Adjusted operating ROE (2)(4)															11.2		%				7.6		%
Components of adjusted operating income (loss) (2)
Insurance segment															$	168					$	149
Asset Management segment															12						1
Corporate division															(20)						(37)
Other (6)															2						—
Adjusted operating income (loss)															$	162					$	113
Insurance Segment
Gross written premiums (GWP)															$	35					$	61
Present value of new business production (PVP) (2)															39						63
Gross par written															5,002						3,743
Effect of refundings and terminations on GAAP measures:
Net earned premiums, pre-tax															$	5					$	39
Fair value gains (losses) of credit derivatives, pre-tax															40						—
Net income effect															36						30
Net income per diluted share															0.70						0.52
Effect of refundings and terminations on non-GAAP measures:
Operating net earned premiums and credit derivative revenues(5), pre-tax															$	45					$	39
Adjusted operating income(5) effect															36						30
Adjusted operating income per diluted share (5)															0.70						0.52

1)    Accounting principles generally accepted in the United States of America (GAAP).

2)    Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

3)    Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.

4)    Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.

5)    Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums and credit derivative revenues) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

6)    Represents the effect of consolidating financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs) (FG VIE and CIV consolidation).

1

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Assured Guaranty Ltd.

Selected Financial Highlights (2 of 2)

(dollars in millions, except per share amounts)

			As of
			March 31, 2025												December 31, 2024
			Amount						Per Share						Amount						Per Share
Shareholders’ equity attributable to AGL			$	5,590					$	112.80					$	5,495					$	108.80
Adjusted operating shareholders’ equity (1)			5,818						117.40						5,795						114.75
Adjusted book value (ABV) (1)			8,562						172.79						8,592						170.12
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity			3						0.04						—						0.01
ABV			(4)						(0.07)						(6)						(0.13)
Shares outstanding at the end of period			49.6												50.5
Exposure
Financial guaranty net debt service outstanding			$	419,136											$	415,966
Financial guaranty net par outstanding:
Investment grade			$	254,049											$	251,370
BIG			9,542												10,182
Total			$	263,591											$	261,552
Claims-paying resources (2)			$	10,266											$	10,211

1)    Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2)    See page 16 for additional detail on claims-paying resources.

2

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Assured Guaranty Ltd.

Condensed Consolidated Statements of Operations (unaudited)

(dollars in millions, except per share amounts)

									Three Months Ended
									March 31,
															2025						2024
Revenues
Net earned premiums															$	91					$	119
Net investment income															87						84
Net realized investment gains (losses)															(16)						8
Fair value gains (losses) on credit derivatives															104						10
Fair value gains (losses) on CCS															2						(10)
Fair value gains (losses) on FG VIEs															1						(3)
Fair value gains (losses) on CIVs															19						22
Foreign exchange gains (losses) on remeasurement															37						(12)
Fair value gains (losses) on trading securities															1						26
Other income (loss)															19						1
Total revenues															345						245
Expenses
Loss and loss adjustment expense (LAE) (benefit)															40						(1)
Interest expense															22						23
Amortization of deferred acquisition costs (DAC)															5						6
Employee compensation and benefit expenses															60						58
Other operating expenses															42						39
Total expenses															169						125
Income (loss) before income taxes and equity in earnings (losses) of investees															176						120
Equity in earnings (losses) of investees															53						24
Income (loss) before income taxes															229						144
Less: Provision (benefit) for income taxes															44						31
Net income (loss)															185						113
Less: Noncontrolling interests															9						4
Net income (loss) attributable to AGL															$	176					$	109
Earnings per share:
Basic															$	3.49					$	1.94
Diluted															$	3.44					$	1.89

3

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Assured Guaranty Ltd.

Condensed Consolidated Balance Sheets (unaudited)

(dollars in millions)

			As of
			March 31,						December 31,
			2025						2024
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value			$	6,415					$	6,369
Fixed-maturity securities, trading, at fair value			137						147
Short-term investments, at fair value			1,158						1,221
Other invested assets			960						926
Total investments			8,670						8,663
Cash			177						121
Premiums receivable, net of commissions payable			1,568						1,551
DAC			181						176
Salvage and subrogation recoverable			389						396
FG VIEs’ assets, at fair value			145						147
Assets of CIVs			119						101
Other assets			689						746
Total assets			$	11,938					$	11,901
Liabilities
Unearned premium reserve			$	3,671					$	3,719
Loss and LAE reserve			294						268
Long-term debt			1,700						1,699
FG VIEs’ liabilities, at fair value			163						164
Other liabilities			453						498
Total liabilities			6,281						6,348
Shareholders’ equity
Common shares			—						1
Retained earnings			5,903						5,878
Accumulated other comprehensive income (loss)			(314)						(385)
Deferred equity compensation			1						1
Total shareholders’ equity attributable to AGL			5,590						5,495
Nonredeemable noncontrolling interests			67						58
Total shareholders’ equity			5,657						5,553
Total liabilities and shareholders’ equity			$	11,938					$	11,901

4

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Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (1 of 3)

(dollars in millions, except per share amounts)

Adjusted Operating Income Reconciliation									Three Months Ended
									March 31,
															2025						2024
Net income (loss) attributable to AGL															$	176					$	109
Less pre-tax adjustments:
Realized gains (losses) on investments															(16)						8
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives															(2)						10
Fair value gains (losses) on CCS															2						(10)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves															33						(12)
Total pre-tax adjustments															17						(4)
Less tax effect on pre-tax adjustments															(3)						—
Adjusted operating income (loss)															$	162					$	113
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income															$	2					$	—
Components of adjusted operating income:
Segments:
Insurance															$	168					$	149
Asset Management															12						1
Total segments															180						150
Corporate division															(20)						(37)
Other															2						—
Adjusted operating income (loss)															$	162					$	113
Per diluted share:
Net income (loss) attributable to AGL															$	3.44					$	1.89
Less pre-tax adjustments:
Realized gains (losses) on investments															(0.30)						0.14
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives															(0.04)						0.16
Fair value gains (losses) on CCS															0.03						(0.17)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves															0.64						(0.20)
Total pre-tax adjustments															0.33						(0.07)
Less tax effect on pre-tax adjustments															(0.07)						—
Adjusted operating income (loss)															$	3.18					$	1.96
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income															$	0.05					$	—

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

5

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Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (2 of 3)

(dollars in millions)

ROE Reconciliation and Calculation			As of
						March 31,												December 31,						March 31,												December 31,
						2025												2024						2024												2023
Shareholders’ equity attributable to AGL						$	5,590											$	5,495					$	5,629											$	5,713
Adjusted operating shareholders’ equity						5,818												5,795						5,932												5,990
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders' equity						3												—						3												5
																								Three Months Ended
																								March 31,
																								2025												2024
Net income (loss) attributable to AGL																								$	176											$	109
Adjusted operating income (loss)																								162												113
Average shareholders’ equity attributable to AGL																								$	5,543											$	5,671
Average adjusted operating shareholders’ equity																								5,807												5,961
Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity																								2												4
GAAP ROE (1)																								12.7		%										7.7		%
Adjusted operating ROE (1)																								11.2		%										7.6		%

1)    Quarterly ROE calculations represent annualized returns.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

6

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Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (3 of 3)

(dollars in millions)

						As of
						March 31,												December 31,						March 31,												December 31,
						2025												2024						2024												2023
Reconciliation of shareholders’ equity attributable to AGL to ABV:
Shareholders’ equity attributable to AGL						$	5,590											$	5,495					$	5,629											$	5,713
Less pre-tax reconciling items:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives						47												49						44												34
Fair value gains (losses) on CCS						4												2						3												13
Unrealized gain (loss) on investment portfolio						(313)												(397)						(393)												(361)
Less taxes						34												46						43												37
Adjusted operating shareholders' equity						5,818												5,795						5,932												5,990
Pre-tax reconciling items:
Less: Deferred acquisition costs						181												176						164												161
Plus: Net present value of estimated net future revenue						199												202						191												199
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed						3,415												3,473						3,393												3,436
Plus taxes						(689)												(702)						(687)												(699)
ABV						$	8,562											$	8,592					$	8,665											$	8,765
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax provision (benefit) of $0, $0, $1, and $1)						$	3											$	—					$	3											$	5
ABV (net of tax provision (benefit) of $(1), $(2), $(1), and $0)						$	(4)											$	(6)					$	(3)											$	—

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

7

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Assured Guaranty Ltd.

Income Components (1 of 2)

(in millions)

Components of Income for the Three Months Ended March 31, 2025

			Segments												Corporate and Other
			Insurance						Asset Management						Corporate						Other (1)						Reconciling Items						Consolidated
Revenues
Net earned premiums			$	91					$	—					$	—					$	—					$	—					$	91
Net investment income			86						—						4						(3)						—						87
Net realized investment gains (losses)			—						—						—						—						(16)						(16)
Fair value gains (losses) on credit derivatives (2)			43						—						—						—						61						104
Fair value gains (losses) on CCS			—						—						—						—						2						2
Fair value gains (losses) on FG VIEs			—						—						—						1						—						1
Fair value gains (losses) on CIVs			—						—						—						19						—						19
Foreign exchange gains (losses) on remeasurement			4						—						—						—						33						37
Fair value gains (losses) on trading securities			1						—						—						—						—						1
Other income (loss)			14						6						—						(1)						—						19
Total revenues			239						6						4						16						80						345
Expenses
Loss and LAE (benefit)(3)			(23)						—						—						—						63						40
Interest expense			—						—						24						(2)						—						22
Amortization of DAC			5						—						—						—						—						5
Employee compensation and benefit expenses			52						—						8						—						—						60
Other operating expenses			30						4						8						—						—						42
Total expenses			64						4						40						(2)						63						169
Equity in earnings (losses) of investees			30						13						16						(6)						—						53
Less: Provision (benefit) for income taxes			37						3						—						1						3						44
Less: Noncontrolling interests			—						—						—						9						—						9
Total			$	168					$	12					$	(20)					$	2					$	14					$	176

1)    Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)    Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)    Insurance segment balances for this line item includes credit derivative impairment (recoveries).

8

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Assured Guaranty Ltd.

Income Components (2 of 2)

(in millions)

Components of Income for the Three Months Ended March 31, 2024

			Segments												Corporate and Other
			Insurance						Asset Management						Corporate						Other (1)						Reconciling Items						Consolidated
Revenues
Net earned premiums			$	120					$	—					$	—					$	(1)					$	—					$	119
Net investment income			83						—						3						(2)						—						84
Net realized investment gains (losses)			—						—						—						—						8						8
Fair value gains (losses) on credit derivatives (2)			2						—						—						—						8						10
Fair value gains (losses) on CCS			—						—						—						—						(10)						(10)
Fair value gains (losses) on FG VIEs			—						—						—						(3)						—						(3)
Fair value gains (losses) on CIVs			—						—						—						22						—						22
Foreign exchange gains (losses) on remeasurement			—						—						—						—						(12)						(12)
Fair value gains (losses) on trading securities			26						—						—						—						—						26
Other income (loss)			(2)						1						2						—						—						1
Total revenues			229						1						5						16						(6)						245
Expenses
Loss and LAE (benefit)(3)			4						—						—						(3)						(2)						(1)
Interest expense			—						—						25						(2)						—						23
Amortization of DAC			6						—						—						—						—						6
Employee compensation and benefit expenses			48						—						10						—						—						58
Other operating expenses			27						—						12						—						—						39
Total expenses			85						—						47						(5)						(2)						125
Equity in earnings (losses) of investees			40						1						—						(17)						—						24
Less: Provision (benefit) for income taxes			35						1						(5)						—						—						31
Less: Noncontrolling interests			—						—						—						4						—						4
Total			$	149					$	1					$	(37)					$	—					$	(4)					$	109

1)    Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)    Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)    Insurance segment balances for this line item includes credit derivative impairment (recoveries).

9

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Assured Guaranty Ltd.

Fixed-Maturity Securities, Short-Term Investments and Cash

As of March 31, 2025

(dollars in millions)

						Amortized Cost						Allowance for Credit Losses						Pre-Tax Book Yield						After-Tax Book Yield						Fair Value						Annualized Investment Income (1)
Fixed maturity securities, available-for-sale:
Obligations of states and political subdivisions(3)						$	2,003					$	(14)					3.71		%				3.25		%				$	1,924					$	75
U.S. government and agencies						76						—						3.07						2.47						72						2
Corporate securities						2,630						(7)						3.80						3.17						2,477						100
Mortgage-backed securities:
Residential mortgage-backed securities (RMBS) (2)(3)						649						(22)						5.21						4.16						569						34
Commercial mortgage-backed securities						183						—						3.93						3.13						182						7
Asset-backed securities (ABS)
Collateralized loan obligation (CLOs)						571						(1)						11.37						8.98						542						65
Other ABS (3)						581						(1)						4.36						3.50						578						25
Non-U.S. government securities						81						—						2.82						2.80						71						2
Total fixed maturity securities, available-for-sale						6,774						(45)						4.58						3.79						6,415						310
Short-term investments						1,158						—						4.24						3.44						1,158						49
Cash (4)						177						—						—						—						177						—
Total						$	8,109					$	(45)					4.53		%				3.74		%				$	7,750					$	359
Fixed maturity securities, trading (6)																														$	137
Ratings (5):						Fair Value						% of Portfolio
U.S. government and agencies						$	72					1.1		%
AAA/Aaa						801						12.5
AA/Aa						2,181						34.0
A/A						1,501						23.4
BBB						1,071						16.7
BIG						538						8.4
Not rated (7)						251						3.9
Total fixed maturity securities, available-for-sale						$	6,415					100.0		%
Duration of available-for-sale fixed maturity securities and short-term investments (in years):												3.8

1)    Represents annualized investment income based on amortized cost and pre-tax book yields.

2)    Includes fair value of $130 million in subprime RMBS, of which 92% were rated BIG.

3)    Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.

4)    Cash is not included in the yield calculation.

5)    Ratings generally reflect the lower of Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC classifications except for purchased securities that the Company has insured, and for which it had expected losses to be paid (Loss Mitigation Securities) and certain other securities, which use internal ratings classifications. Loss mitigation and other securities total $820 million in par with carrying value of $590 million and are primarily included in the BIG category.

6)    Primarily includes contingent value instruments received in connection with the resolution of the Company’s exposure to insured Puerto Rico credits experiencing payment default other than PREPA. These securities are not rated.

7)    Primarily includes CLO equity tranches.

10

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Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (1 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of March 31, 2025

						Insurance Related Subsidiaries (1)						Holding Companies (2)						Other (3)						AGL Consolidated
Fixed-maturity securities, available-for-sale						$	6,397					$	18					$	—					$	6,415
Fixed-maturity securities, trading						137						—						—						137
Total fixed-maturity securities						6,534						18						—						6,552
Short-term investments						829						328						1						1,158
Cash						123						11						43						177
Total short-term investments and cash						952						339						44						1,335
Other invested assets
Equity method investments:
Sound Point						—						411						—						411
Funds:
CLOs						105						—						—						105
Private healthcare investing						164						—						—						164
Asset-based/specialty finance						148						—						(39)						109
Middle market direct lending						12						—						—						12
Other						6						132						—						138
Total funds						435						132						(39)						528
Other						—						3						—						3
Total equity method investments						435						546						(39)						942
Other						14						4						—						18
Other invested assets						449						550						(39)						960
Total investment portfolio and cash(4)						$	7,935					$	907					$	5					$	8,847
CIVs
Assets of CIVs						$	—					$	—					$	119					$	119
Liabilities of CIVs						—						—						—						—
Nonredeemable noncontrolling interests						—						—						(67)						(67)
Total CIVs						$	—					$	—					$	52					$	52

1)    Includes the Company’s U.S., Bermuda, U.K. and French insurance subsidiaries and AG Asset Strategies LLC (AGAS) (separate company, excluding the effect of consolidating CIVs).

2)    Includes the Company’s holding companies: AGL, Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH).

3)    Includes the Company’s non-insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.

4)    The alternative investments, excluding the ownership interest in Sound Point, had an inception-to-date annualized internal rate of return (IRR) of 13%, a year-to-date and a quarter-to-date return of 4%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.

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Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (2 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of December 31, 2024

						Insurance Related Subsidiaries (1)						Holding Companies (2)						Other (3)						AGL Consolidated
Fixed-maturity securities, available-for-sale						$	6,351					$	18					$	—					$	6,369
Fixed-maturity securities, trading						147						—						—						147
Total fixed-maturity securities						6,498						18						—						6,516
Short-term investments						810						411						—						1,221
Cash						78						8						35						121
Total short-term investments and cash						888						419						35						1,342
Other invested assets
Equity method investments:
Sound Point						—						418						—						418
Funds:
CLOs (5)						100						—						—						100
Private healthcare investing						153						—						—						153
Asset-based/specialty finance						142						—						(33)						109
Middle market direct lending						11						—						—						11
Other						2						118						—						120
Total funds						408						118						(33)						493
Other						—						3						—						3
Total equity method investments						408						539						(33)						914
Other						9						3						—						12
Other invested assets						417						542						(33)						926
Total investment portfolio and cash(4)						$	7,803					$	979					$	2					$	8,784
CIVs
Assets of CIVs						$	—					$	—					$	101					$	101
Liabilities of CIVs						—						—						—						—
Nonredeemable noncontrolling interests						—						—						(58)						(58)
Total CIVs						$	—					$	—					$	43					$	43

1)    Includes the Company’s U.S., Bermuda, U.K. and French insurance subsidiaries and AGAS (separate company, excluding the effect of consolidating CIVs).

2)    Includes the Company’s holding companies: AGL, AGUS, AGMH.

3)    Includes the Company’s non-insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.

4)    The alternative investments, excluding the ownership interest in Sound Point, had an inception-to-date annualized IRR of 13%, a year-to-date return of 16% and a quarter-to-date return of 4%. Returns are calculated using the cash basis IRR method and are annualized, other than quarter-to-date returns.

5)    In 2024, $263 million of CLO equity tranches were transferred to the fixed-maturity, available-for-sale portfolio from a previously consolidated CLO fund.

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Assured Guaranty Ltd.

Income from Investment Portfolio and CIVs by Segment

(dollars in millions)

			Three Months Ended March 31, 2025
			Insurance						Asset Management						Corporate						Other						Total
Net investment income
Fixed-maturity securities, available-for-sale			$	74					$	—					$	—					$	(1)					$	73
Short-term investments			9						—						4						—						13
Other			3						—						—						(2)						1
Total net investment income			$	86					$	—					$	4					$	(3)					$	87
Fair value gains (losses) on trading securities			$	1					$	—					$	—					$	—					$	1
Equity in earnings (losses) of investees
Sound Point			$	—					$	13					$	—					$	—					$	13
Funds:
CLOs			8						—						—						—						8
Private healthcare investing			12						—						—						—						12
Asset-based/specialty finance			9						—						—						(6)						3
Middle market direct lending			1						—						—						—						1
Other			—						—						16						—						16
Total funds (1)			30						—						16						(6)						40
Other			—						—						—						—						—
Equity in earnings (losses) of investees			$	30					$	13					$	16					$	(6)					$	53
CIVs
Fair value gains (losses) on CIVs			$	—					$	—					$	—					$	19					$	19
Noncontrolling interests			—						—						—						(9)						(9)
Total CIVs			$	—					$	—					$	—					$	10					$	10

			Three Months Ended March 31, 2024
			Insurance						Asset Management						Corporate						Other						Total
Net investment income
Fixed-maturity securities, available-for-sale			$	62					$	—					$	—					$	—					$	62
Short-term investments			19						—						3						—						22
Other			2						—						—						(2)						—
Total net investment income			$	83					$	—					$	3					$	(2)					$	84
Fair value gains (losses) on trading securities			$	26					$	—					$	—					$	—					$	26
Equity in earnings (losses) of investees
Sound Point			$	—					$	4					$	—					$	—					$	4
Funds:
CLOs			20						—						—						(15)						5
Private healthcare investing			4						—						—						—						4
Asset-based/specialty finance			4						—						—						(2)						2
Middle market direct lending			3						—						—						—						3
Other			9						—						—						—						9
Total funds (1)			40						—						—						(17)						23
Other			—						(3)						—						—						(3)
Equity in earnings (losses) of investees			$	40					$	1					$	—					$	(17)					$	24
CIVs
Fair value gains (losses) on CIVs			$	—					$	—					$	—					$	22					$	22
Noncontrolling interests			—						—						—						(4)						(4)
Total CIVs			$	—					$	—					$	—					$	18					$	18

1)    Relates to funds managed by Sound Point and AHP, and certain other managers. Investments in funds are reported on a one-quarter lag.

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Insurance Segment

14

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Assured Guaranty Ltd.

Insurance Segment Results

(dollars in millions)

									Three Months Ended
									March 31,
															2025						2024
Segment revenues
Net earned premiums and credit derivative revenues															$	134					$	122
Net investment income															86						83
Fair value gains (losses) on trading securities															1						26
Foreign exchange gains (losses) on remeasurement and other income (loss)															18						(2)
Total segment revenues															239						229
Segment expenses
Loss expense (benefit)															(23)						4
Amortization of DAC															5						6
Employee compensation and benefit expenses															52						48
Other operating expenses															30						27
Total segment expenses															64						85
Equity in earnings (losses) of investees															30						40
Segment adjusted operating income (loss) before income taxes															205						184
Less: Provision (benefit) for income taxes															37						35
Segment adjusted operating income (loss)															$	168					$	149

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Assured Guaranty Ltd.

Claims-Paying Resources

(dollars in millions)

						As of March 31, 2025
						AG						AG Re (1)						Eliminations (2)						Total
Claims-paying resources
Policyholders’ surplus						$	3,522					$	779					$	57					$	4,358
Contingency reserve						1,421						—						—						1,421
Qualified statutory capital						4,943						779						57						5,779
Unearned premium reserve and net deferred ceding commission income (3)						2,416						602						(57)						2,961
Loss and LAE reserves (3)(4)						—						46						—						46
Total policyholders' surplus and reserves						7,359						1,427						—						8,786
Present value of installment premium						822						258						—						1,080
CCS						400						—						—						400
Total claims-paying resources						$	8,581					$	1,685					$	—					$	10,266
Statutory net exposure (3)(5)						$	202,678					$	65,233					$	(618)					$	267,293
Net debt service outstanding (3)(5)						$	325,927					$	98,126					$	(1,088)					$	422,965
Ratios:
Net exposure to qualified statutory capital						41:1						84:1												46:1
Capital ratio (6)						66:1						126:1												73:1
Financial resources ratio (7)						38:1						58:1												41:1
Statutory net exposure to claims-paying resources						24:1						39:1												26:1
Separate company statutory basis:
Admitted assets						$	7,119					$	1,460
Total liabilities						3,598						681
Loss and LAE reserves (recoverable)						(102)						46
Paid in capital stock						441						826

1)    Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of AG Re on a U.S. statutory-basis, except for contingency reserves.

2)    Eliminations consist of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

3)    The numbers shown for AG have been adjusted to include its share of its U.K. and French insurance subsidiaries.

4)    Loss and LAE reserves exclude adjustments to claims-paying resources for AG because the balance was in a net recoverable position of $95 million.

5)    Net exposure and net debt service outstanding are presented on a statutory basis. Includes $4,096 million of specialty business.

6)    The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.

7)    The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.

Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.

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Assured Guaranty Ltd.

New Business Production

(dollars in millions)

Reconciliation of GWP to PVP

						Three Months Ended																														Three Months Ended
						March 31, 2025																														March 31, 2024
						Public Finance												Structured Finance																		Public Finance												Structured Finance
						U.S.						Non - U.S.						U.S.						Non - U.S.						Total						U.S.						Non - U.S.						U.S.						Non - U.S.						Total
Total GWP						$	25					$	(1)					$	7					$	4					$	35					$	44					$	2					$	13					$	2					$	61
Less: Installment GWP and other GAAP adjustments (1)						2						(1)						6						4						11						12						2						12						2						28
Upfront GWP						23						—						1						—						24						32						—						1						—						33
Plus: Installment premiums and other(2)						2						7						1						5						15						11						1						14						4						30
Total PVP						$	25					$	7					$	2					$	5					$	39					$	43					$	1					$	15					$	4					$	63
Gross par written						$	4,269					$	197					$	121					$	415					$	5,002					$	2,909					$	—					$	480					$	354					$	3,743

(1)    Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

(2)    Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

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Assured Guaranty Ltd.

Gross Par Written

(dollars in millions)

Gross Par Written by Asset Type

			Three Months Ended March 31,
			2025						2024
Sector:
U.S. public finance:
General obligation			$	1,568					$	1,162
Municipal utilities			933						418
Tax backed			685						571
Higher education			462						—
Healthcare			306						116
Transportation			228						642
Housing revenue			87						—
Total U.S. public finance			4,269						2,909
Non-U.S. public finance:
Regulated utilities			140						—
Sovereign and sub-sovereign			57						—
Total non-U.S. public finance			197						—
Total public finance			4,466						2,909
U.S. structured finance:
Subscription finance facilities			92						151
Pooled corporate obligations			17						43
Insurance reserve financings and securitizations			—						250
Other structured finance			12						36
Total U.S. structured finance			121						480
Non-U.S. structured finance:
Subscription finance facilities			415						354
Total non-U.S. structured finance			415						354
Total structured finance			536						834
Total gross par written			$	5,002					$	3,743

Please refer to the Glossary for a description of sectors.

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Assured Guaranty Ltd.

New Business Production by Quarter

(dollars in millions)

						1Q-24						2Q-24						3Q-24						4Q-24						1Q-25
PVP:
Public finance - U.S.						$	43					$	116					$	34					$	77					$	25
Public finance - non-U.S.						1						33						10						23						7
Structured finance - U.S.						15						4						5						1						2
Structured finance - non-U.S.						4						2						14						20						5
Total PVP (1)						$	63					$	155					$	63					$	121					$	39
Reconciliation of GWP to PVP:
Total GWP						$	61					$	132					$	61					$	186					$	35
Less: Installment GWP and other GAAP adjustments						28						102						18						152						11
Upfront GWP						33						30						43						34						24
Plus: Installment premiums and other(2)						30						125						20						87						15
Total PVP						$	63					$	155					$	63					$	121					$	39
Gross par written:
Public finance - U.S.						$	2,909					$	7,043					$	5,387					$	8,419					$	4,269
Public finance - non-U.S.						—						1,572						665						436						197
Structured finance - U.S.						480						214						551						231						121
Structured finance - non-U.S. (1)						354						594						834						2,140						415
Total						$	3,743					$	9,423					$	7,437					$	11,226					$	5,002

1)    PVP and gross par written include the present value of future premiums and total exposure, respectively, associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

2)    Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement. Please refer to the Glossary for a description of sectors.

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Assured Guaranty Ltd.

Estimated Net Exposure Amortization(1) and Estimated Future Financial Guaranty Net Premium

and Credit Derivative Revenues

(dollars in millions)

																		Financial Guaranty Insurance (2)
						Estimated Net Debt Service Amortization						Estimated Ending Net Debt Service Outstanding						Earnings of Deferred Premium Revenue						Accretion of Discount						Effect of FG VIE Consolidation on Earnings of Deferred Premium Revenue and Accretion of Discount						Future Credit Derivative Revenues (3)
2025 (as of March 31)												$	419,136
2025 Q2						$	5,076					414,060						$	76					$	9					$	1					$	2
2025 Q3						6,736						407,324						75						9						1						2
2025 Q4						6,699						400,625						73						9						1						2
2026						22,599						378,026						278						34						3						9
2027						20,565						357,461						261						32						3						8
2028						20,337						337,124						248						30						2						7
2029						21,293						315,831						231						28						2						7
2025-2029						103,305						315,831						1,242						151						13						37
2030-2034						97,338						218,493						922						118						11						28
2035-2039						75,117						143,376						601						86						6						21
2040-2044						52,495						90,881						393						56						—						13
2045-2049						41,054						49,827						261						32						—						6
2050-2054						27,870						21,957						137						15						—						—
After 2054						21,957						—						109						12						—						—
Total						$	419,136											$	3,665					$	470					$	30					$	105

Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve(4)

						GAAP						Effect of FG VIE Consolidation on Net Unearned Premium Reserve
Net deferred premium revenue:
Financial guaranty						$	3,665					$	29
Specialty						5						—
Net deferred premium revenue						3,670						29
Contra-paid						(23)						(4)
Net unearned premium reserve						$	3,647					$	25

1)    Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of March 31, 2025. Actual amortization differs from expected maturities because of certain borrowers' right to call or prepay guaranteed obligations, terminations, or management's assumptions on structured finance amortization..

2)    See also page 23, for ‘‘Net Expected Loss to be Expensed.’’

3)    Represents expected future premiums on insured credit derivatives.

4)    Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).

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Assured Guaranty Ltd.

Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)

(dollars in millions)

Roll Forward of Net Expected Loss and LAE to be Paid (Recovered) (1) for the Three Months Ended March 31, 2025

						Net Expected Loss to be Paid (Recovered) as of December 31, 2024						Net Economic Loss Development (Benefit) During 1Q-25						Net (Paid) Recovered Losses During 1Q-25						Net Expected Loss to be Paid (Recovered) as of March 31, 2025
Public Finance:
U.S. public finance						$	18					$	29					$	(12)					$	35
Non-U.S. public finance						98						24						—						122
Public Finance						116						53						(12)						157
Structured Finance:
U.S. RMBS						(43)						(3)						9						(37)
Other structured finance						33						(65)						62						30
Structured Finance						(10)						(68)						71						(7)
Total						$	106					$	(15)					$	59					$	150

1)    Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e. those accounted for as insurance, credit derivatives and FG VIEs).

Please refer to the Glossary for a description of sectors.

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Assured Guaranty Ltd.

Loss Measures

(dollars in millions)

						As of March 31, 2025									Three Months Ended March 31, 2025
						Total Net Par Outstanding for BIG Transactions									Net Economic Loss Development (Benefit)						GAAP Loss and LAE (1)						Loss and LAE included in Adjusted Operating Income (2)						Insurance Segment  Loss and LAE (3)
Public finance:
U.S. public finance						$	2,046								$	29					$	36					$	36					$	36
Non-U.S. public finance						6,615									24						6						6						6
Public finance						8,661									53						42						42						42
Structured finance:
U.S. RMBS						805									(3)						—						—						—
Other structured finance						76									(65)						(2)						(65)						(65)
Structured finance						881									(68)						(2)						(65)						(65)
Total						$	9,542								$	(15)					$	40					$	(23)					$	(23)

1)    Includes loss expense related to contracts that are accounted for as insurance contracts.

2)    Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.

3)    Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

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Assured Guaranty Ltd.

Net Expected Loss to be Expensed (1)

As of March 31, 2025

(dollars in millions)

						GAAP
2025 Q2						$	4
2025 Q3						3
2025 Q4						3
2026						13
2027						17
2028						18
2029						18
2025-2029						76
2030-2034						79
2035-2039						39
2040-2044						18
2045-2049						21
2050-2054						15
After 2054						2
Total expected present value of net expected loss to be expensed (2)						250
Future expected accretion						6
Total expected future loss and LAE						$	256

1)    The present value of net expected loss to be paid is discounted using risk free rates ranging from 1.99% to 5.41%.

2)    Excludes $21 million related to FG VIEs, which are eliminated in consolidation.

23

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Assured Guaranty Ltd.

Financial Guaranty Profile (1 of 3)

(dollars in millions)

Net Par Outstanding by Asset Type

						As of March 31, 2025						As of December 31, 2024
U.S. public finance:
General obligation						$	78,405											$	78,162
Tax backed						33,112												33,288
Municipal utilities						30,735												30,036
Transportation						26,712												26,958
Healthcare						14,293												14,007
Infrastructure finance						8,583												8,663
Higher education						7,828												7,381
Housing revenue						1,359												1,272
Renewable energy						163												164
Other public finance						1,227												1,244
Total U.S. public finance						202,417												201,175
Non-U.S. public finance:
Regulated utilities						23,215												22,361
Infrastructure finance						14,839												14,961
Sovereign and sub-sovereign						9,358												9,181
Renewable energy						1,636												1,596
Pooled infrastructure						1,066												1,101
Total non-U.S. public finance						50,114												49,200
Total public finance						252,531												250,375
U.S. structured finance:
Insurance reserve financings and securitizations						4,373												4,495
RMBS						1,474												1,507
Pooled corporate obligations						608												607
Financial products						527												492
Subscription finance facilities						217												185
Other structured finance						1,174												1,167
Total U.S. structured finance						8,373												8,453
Non-U.S. structured finance:
Subscription finance facilities						1,336												1,385
Pooled corporate obligations						482												468
RMBS						222												221
Other structured finance						647												650
Total non-U.S. structured finance						2,687												2,724
Total structured finance						11,060												11,177
Total net par outstanding						$	263,591											$	261,552

Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.

24

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Assured Guaranty Ltd.

Financial Guaranty Profile (2 of 3)

As of March 31, 2025

(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio

						Public Finance - U.S.									Public Finance - Non-U.S.									Structured Finance - U.S.									Structured Finance - Non-U.S.									Total
Ratings:						Net Par Outstanding			%						Net Par Outstanding			%						Net Par Outstanding			%						Net Par Outstanding			%						Net Par Outstanding			%
AAA						$	24		—		%				$	2,050		4.1		%				$	503		6.0		%				$	487		18.1		%				$	3,064		1.2		%
AA						17,579			8.7						2,906			5.8						5,242			62.6						62			2.3						25,789			9.8
A						113,268			56.0						12,226			24.4						1,019			12.2						2,060			76.7						128,573			48.8
BBB						69,500			34.3						26,317			52.5						728			8.7						78			2.9						96,623			36.6
BIG						2,046			1.0						6,615			13.2						881			10.5						—			—						9,542			3.6
Net Par Outstanding (1)						$	202,417		100.0		%				$	50,114		100.0		%				$	8,373		100.0		%				$	2,687		100.0		%				$	263,591		100.0		%

1)    As of March 31, 2025, the Company excluded $1.2 billion of net par outstanding attributable to Loss Mitigation Securities.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.

25

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Assured Guaranty Ltd.

Financial Guaranty Profile (3 of 3)

As of March 31, 2025

(dollars in millions)

Geographic Distribution of Financial Guaranty Portfolio

						Net Par Outstanding						% of Total
U.S.:
U.S. public finance:
California						$	35,894					13.6		%
Texas						26,077						9.9
New York						19,580						7.4
Pennsylvania						18,796						7.1
Illinois						12,308						4.7
Florida						11,735						4.5
New Jersey						8,325						3.2
Michigan						5,004						1.9
Louisiana						4,913						1.9
Colorado						4,128						1.5
Other						55,657						21.1
Total U.S. public finance						202,417						76.8
U.S. structured finance (multiple states)						8,373						3.2
Total U.S.						210,790						80.0
Non-U.S.:
U.K.						41,833						15.9
Australia						1,741						0.7
France						1,542						0.6
Spain						1,537						0.5
Canada						1,181						0.4
Other						4,967						1.9
Total non-U.S.						52,801						20.0
Total net par outstanding						$	263,591					100.0		%

Please refer to the Glossary for an explanation of the presentation of net par outstanding.

26

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Assured Guaranty Ltd.

Specialty Business

(dollars in millions)

						As of March 31, 2025												As of December 31, 2024
						Gross Exposure (1)						Net Exposure (1)						Gross Exposure (1)						Net Exposure (1)
Diversified real estate						$	2,004					$	2,004					$	2,004					$	2,004
Insurance reserve financings and securitizations						1,495						1,169						1,449						1,126
Pooled corporate obligations						836						836						868						868
Aircraft residual value insurance						147						87						147						87

1)    All exposures are rated investment-grade, except gross and net exposure of $5 million of aircraft residual value insurance as of both March 31, 2025 and December 31, 2024.

Please refer to the Glossary for a description of sectors.

27

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Assured Guaranty Ltd.

Expected Amortization of Net Par Outstanding

(dollars in millions)

						Public Finance																								Structured Finance
						U.S. Public Finance						Non-U.S. Public Finance						Total						Estimated Ending Net Par Outstanding						U.S. RMBS						U.S. and Non-U.S. Pooled Corporate						Other Structured Finance						Total						Estimated Ending Net Par Outstanding
2025 (as of March 31)																								$	252,531																													$	11,060
2025 Q2						$	1,647					$	156					$	1,803					250,728						$	52					$	7					$	496					$	555					10,505
2025 Q3						3,120						526						3,646						247,082						54						60						203						317						10,188
2025 Q4						2,321						1,417						3,738						243,344						50						11						186						247						9,941
2026						8,691						2,113						10,804						232,540						187						162						818						1,167						8,774
2027						8,288						948						9,236						223,304						164						427						592						1,183						7,591
2028						8,639						984						9,623						213,681						153						223						640						1,016						6,575
2029						8,761						2,340						11,101						202,580						140						87						737						964						5,611
2025-2029						41,467						8,484						49,951						202,580						800						977						3,672						5,449						5,611
2030-2034						43,866						11,529						55,395						147,185						323						78						2,877						3,278						2,333
2035-2039						37,807						8,861						46,668						100,517						344						35						663						1,042						1,291
2040-2044						30,839						2,090						32,929						67,588						—						—						724						724						567
2045-2049						25,078						3,442						28,520						39,068						7						—						560						567						—
2050-2054						17,218						4,369						21,587						17,481						—						—						—						—						—
After 2054						6,142						11,339						17,481						—						—						—						—						—						—
Total						$	202,417					$	50,114					$	252,531											$	1,474					$	1,090					$	8,496					$	11,060

Net par outstanding (end of period)

																		1Q-24						2Q-24						3Q-24						4Q-24						1Q-25
Public finance - U.S.																		$	189,895					$	194,593					$	195,837					$	201,175					$	202,417
Public finance - non-U.S.																		48,237						49,583						52,083						49,200						50,114
Structured finance - U.S.																		8,643						8,759						8,717						8,453						8,373
Structured finance - non-U.S.																		1,369						1,461						1,559						2,724						2,687
Net par outstanding																		$	248,144					$	254,396					$	258,196					$	261,552					$	263,591

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

28

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Assured Guaranty Ltd.

Puerto Rico Profile

As of March 31, 2025

(dollars in millions)

						Net Par Outstanding
						AG						AG Re						Total Net Par Outstanding						Gross Par Outstanding
Defaulted Puerto Rico Exposure
PREPA						$	378					$	154					$	532					$	540
Resolved Puerto Rico Exposure
Puerto Rico Highway and Transportation Authority						$	—					$	13					$	13					$	13
Non-Defaulting Puerto Rico Exposure
Puerto Rico Municipal Finance Agency (MFA)						$	76					$	15					$	91					$	97
University of Puerto Rico						1						—						1						1
Total non-defaulting						$	77					$	15					$	92					$	98

PREPA Amortization Schedule

			Scheduled Net Par Amortization						Scheduled Net Debt Service Amortization
2025 (April 1 - June 30)			$	—					$	3
2025 (July 1 - September 30)			68						78
2025 (October 1 - December 31)			—						2
Subtotal 2025			68						83
2026			106						126
2027			106						122
2028			68						80
2029			39						47
2030-2034			141						157
2035-2039			4						4
Total			$	532					$	619

29

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Assured Guaranty Ltd.

Direct Pooled Corporate Obligations Profile

As of March 31, 2025

(dollars in millions)

Distribution of Direct Pooled Corporate Obligations by Ratings

						Net Par Outstanding						% of Total						Average Initial Credit Enhancement						Average Current Credit Enhancement
Ratings:
AAA						$	562					51.6		%				40.4		%				48.2		%
AA						68						6.2						36.1						36.1
A						307						28.2						59.1						42.3
BBB						153						14.0						36.2						37.1
Total exposures						$	1,090					100.0		%				44.8		%				44.2		%

Distribution of Direct Pooled Corporate Obligations by Asset Class

						Net Par Outstanding						% of Total						Average Initial Credit Enhancement						Average Current Credit Enhancement						Number of Transactions
Asset class:
Trust preferred
Banks and insurance						$	194					17.8		%				42.3		%				66.6		%				7
U.S. mortgage and real estate investment trusts						51						4.7						48.4						66.8						3
CLOs						845						77.5						45.2						37.7						10
Total exposures						$	1,090					100.0		%				44.8		%				44.2		%				20

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.

30

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Assured Guaranty Ltd.

Below Investment Grade Exposures (1 of 3)

(dollars in millions)

BIG Exposures by Asset Exposure Type

						As of
						March 31,						December 31,
						2025						2024
U.S. public finance:
Municipal utilities						$	812					$	813
Healthcare						380						1,200
General obligation						285						286
Tax backed						114						123
Transportation						98						107
Higher education						88						88
Housing revenue						67						67
Infrastructure finance						44						45
Other public finance						158						159
Total U.S. public finance						2,046						2,888
Non-U.S. public finance:
Regulated utilities						4,921						4,744
Renewable energy						885						851
Infrastructure finance						779						765
Sovereign and sub-sovereign						30						38
Total non-U.S. public finance						6,615						6,398
Total public finance						8,661						9,286
U.S. structured finance:
RMBS						805						819
Insurance reserve financings and securitizations						40						40
Other structured finance						36						37
Total U.S. structured finance						881						896
Non-U.S. structured finance:
Total non-U.S. structured finance						—						—
Total structured finance						881						896
Total BIG net par outstanding						$	9,542					$	10,182

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.

31

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Assured Guaranty Ltd.

Below Investment Grade Exposures (2 of 3)

(dollars in millions)

Net Par Outstanding by BIG Surveillance Category (1)

						As of
						March 31,						December 31,
						2025						2024
BIG Category 1
U.S. public finance						$	904					$	2,119
Non-U.S. public finance						6,076						5,879
U.S. structured finance						99						104
Non-U.S. structured finance						—						—
Total BIG Category 1						7,079						8,102
BIG Category 2
U.S. public finance						511						137
Non-U.S. public finance						539						519
U.S. structured finance						49						50
Non-U.S. structured finance						—						—
Total BIG Category 2						1,099						706
BIG Category 3
U.S. public finance						631						632
Non-U.S. public finance						—						—
U.S. structured finance						733						742
Non-U.S. structured finance						—						—
Total BIG Category 3						1,364						1,374
BIG Total						$	9,542					$	10,182

1)    The Company assigns each BIG exposure to one of the three BIG surveillance categories below, which generally represent the following: BIG 1: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is less than 50%, regardless of whether the Company has or has not paid a claim for which it expects to be reimbursed within one year (liquidity claim). BIG 2: Below-investment-grade exposures for which there are possible future losses, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, but for which no claims (other than liquidity claims) have yet been paid. BIG 3: Below-investment-grade exposures for which future losses are expected, on a present value basis, and the aggregate probability weighting of scenarios with future losses is 50% or more, and for which claims, other than liquidity claims have been paid.

For purposes of classifying BIG exposures into one of the three BIG categories, the Company calculates the present value of projected claim payments and recoveries using the pre-tax book yield of the investment portfolio as the applicable discount rate.

For financial statement measurement purposes, the Company uses risk-free rates (as determined each quarter) for discounting, rather than pre-tax book yield of the investment portfolio, to calculate the expected losses to be paid. Expected losses to be paid (recovered) are based on probability weighted scenarios and serve as the basis for the loss reserves reported in accordance with U.S. GAAP.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

32

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Assured Guaranty Ltd.

Below Investment Grade Exposures (3 of 3)

As of March 31, 2025

(dollars in millions)

Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million

Net Par Outstanding

Internal Rating (1)

60+ Day Delinquencies

Name or description

U.S. public finance:

PREPA

$

532

CCC

Palomar Health

374

CCC

Jackson Water & Sewer System, Mississippi

148

BB

MFA

91

B

New Jersey City University

87

BB

Stockton City, California

86

B

Harrisburg Parking System, Pennsylvania

72

B

San Jacinto River Authority (GRP Project), Texas

56

BB+

Indiana University of Pennsylvania, Pennsylvania

53

CCC

Total U.S. public finance

1,499

Non-U.S. public finance:

Southern Water Services Limited

2,704

BB

Thames Water Utilities Finance Plc

2,217

B

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

539

B+

Q Energy - Phase II - Pride Investments, S.A.

268

BB+

Hypersol Solar Inversiones, S.A.U.

264

BB+

Q Energy - Phase III - FSL Issuer, S.A.U.

248

B+

Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc

115

BB+

Q Energy - Phase IV - Anselma Issuer, S.A.

105

BB+

Road Management Services PLC (A13 Highway)

88

B+

Total non-U.S. public finance

6,548

Total public finance

8,047

U.S. structured finance:

RMBS:

Option One Mortgage Loan Trust 2007-Hl1

96

CCC

22.5%

Option One 2007-FXD2

96

B

14.0%

Argent Securities Inc. 2005-W4

93

CCC

10.2%

Nomura Asset Accept. Corp. 2007-1

50

CCC

15.4%

Total RMBS-U.S. structured finance

335

Total non-U.S. structured finance

—

Total structured finance

335

Total

$

8,382

1)    Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

33

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Assured Guaranty Ltd.

Largest Exposures by Sector (1 of 3)

As of March 31, 2025

(dollars in millions)

50 Largest U.S. Public Finance Exposures by Revenue Source

Credit Name:

Net Par Outstanding

Internal Rating

Pennsylvania (Commonwealth of)

$

2,112

BBB+

New Jersey (State of)

1,987

BBB

Metro Washington Airports Authority (Dulles Toll Road)

1,638

BBB+

JFK New Terminal One, New York

1,600

BBB-

Alameda Corridor Transportation Authority, California

1,386

BBB

Lower Colorado River Authority

1,366

A

New York Power Authority

1,327

AA-

New York Metropolitan Transportation Authority

1,317

A-

Foothill/Eastern Transportation Corridor Agency, California

1,272

BBB+

South Carolina Public Service Authority - Santee Cooper

1,215

BBB+

North Texas Tollway Authority

1,178

A+

Philadelphia Water & Wastewater, Pennsylvania

1,150

A

Brightline Trains Florida LLC

1,133

BBB-

Montefiore Medical Center, New York

1,129

BBB-

Central Florida Expressway Authority, Florida

1,054

A+

North Carolina Turnpike Authority

1,050

BBB

CommonSpirit Health, Illinois

999

A-

San Joaquin Hills Transportation, California

969

BBB+

Pittsburgh Water & Sewer, Pennsylvania

924

A-

JFK Terminal 6, New York

922

BBB-

Yankee Stadium LLC New York City Industrial Development Authority

914

BBB

Municipal Electric Authority of Georgia

879

BBB+

San Diego Family Housing, LLC

871

AA

Philadelphia School District, Pennsylvania

869

A-

Metropolitan Pier and Exposition Authority, Illinois

860

BBB-

Chicago Water, Illinois

854

BBB+

Harris County - Houston Sports Authority, Texas

822

A-

ProMedica Healthcare Obligated Group, Ohio

820

BBB-

Thomas Jefferson University

795

A-

Dade County Seaport, Florida

780

A-

Houston Airport System, Texas

767

A

California (State of)

744

AA-

Maine (State of)

706

A

Chicago Public Schools, Illinois

704

BBB-

Illinois (State of)

687

BBB

Tucson (City of), Arizona

679

A+

Nassau County, New York

674

AA-

Wisconsin (State of)

657

A

Massachusetts (Commonwealth of) Water Resources

656

AA

Anaheim (City of), California

646

A-

Clark County School District, Nevada

642

A-

New York (City of), New York

635

AA-

Philadelphia (City of), Pennsylvania

634

A-

New York Transportation Development Corporation (LaGuardia Airport Terminal Redevelopment Project)

634

BBB-

Chicago-O'Hare International Airport, Illinois

624

A-

Pittsburgh International Airport, Pennsylvania

618

A-

Chicago (City of) Wastewater Transmission, Illinois

601

BBB+

Pennsylvania Turnpike Commission

595

A-

Private Transaction

587

BBB-

Mets Queens Ballpark

573

BBB

Total top 50 U.S. public finance exposures

$

47,255

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

34

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Assured Guaranty Ltd.

Largest Exposures by Sector (2 of 3)

As of March 31, 2025

(dollars in millions)

25 Largest U.S. Structured Finance Exposures

Credit Name:

Net Par Outstanding

Internal Rating (1)

Private US Insurance Reserve Financing and Securitization

$

1,100

AA-

Private US Insurance Reserve Financing and Securitization

1,100

AA

Private US Insurance Reserve Financing and Securitization

1,041

AA-

Private US Insurance Reserve Financing and Securitization

412

AA-

Private US Insurance Reserve Financing and Securitization

397

AA-

Private Middle Market CLO

180

A

DB Master Finance LLC

165

BBB

Private US Insurance Reserve Financing and Securitization

134

A

Private Middle Market CLO

125

BBB+

Private US Insurance Reserve Financing and Securitization

118

AA

SLM Student Loan Trust 2007-A

114

AA

CWABS 2007-4

100

BBB+

Private Balloon Note Guarantee

100

A

Option One Mortgage Loan Trust 2007-Hl1

96

CCC

Option One 2007-FXD2

96

B

Argent Securities Inc. 2005-W4

93

CCC

Private Subscription Finance Transaction

88

A-

CAPCO - Excess SIPC Excess of Loss Reinsurance

63

BBB

Private Balloon Note Guarantee

59

BBB

Private Other Structured Finance Transaction

52

A-

Nomura Asset Accept. Corp. 2007-1

50

CCC

Private Balloon Note Guarantee

50

A

CWALT Alternative Loan Trust 2007-HY9

47

BBB+

ALESCO Preferred Funding XIII, Ltd.

46

AAA

Wendy's Funding, LLC

46

BBB

Total top 25 U.S. structured finance exposures

$

5,872

1)    Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

35

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Assured Guaranty Ltd.

Largest Exposures by Sector (3 of 3)

As of March 31, 2025

(dollars in millions)

50 Largest Non-U.S. Exposures by Revenue Source

Credit Name:

Country

Net Par Outstanding

Internal Rating

Southern Water Services Limited

United Kingdom

$

2,704

BB

Thames Water Utilities Finance Plc

United Kingdom

2,217

B

Southern Gas Networks PLC

United Kingdom

2,159

BBB+

Dwr Cymru Financing Limited

United Kingdom

1,956

A-

Anglian Water Services Financing PLC

United Kingdom

1,811

A-

National Grid Gas PLC

United Kingdom

1,722

A-

Yorkshire Water Services Finance Plc

United Kingdom

1,312

BBB

Channel Link Enterprises Finance PLC

France, United Kingdom

1,261

BBB

Severn Trent Water Utilities Finance Plc

United Kingdom

1,015

BBB+

Capital Hospitals (Issuer) PLC

United Kingdom

999

BBB-

Verbund, Lease and Sublease of Hydro-Electric Equipment

Austria

974

AAA

British Broadcasting Corporation (BBC)

United Kingdom

971

A+

Quebec Province

Canada

956

AA-

United Utilities Water PLC

United Kingdom

921

BBB+

Wessex Water Services Finance plc

United Kingdom

786

BBB+

National Grid Company PLC

United Kingdom

767

BBB+

South West Water UK

United Kingdom

734

BBB+

Aspire Defence Finance plc

United Kingdom

712

BBB+

Verdun Participations 2 S.A.S.

France

703

BBB-

South East Water

United Kingdom

661

BBB

Heathrow Funding Limited

United Kingdom

623

BBB

Private International Sub-Sovereign Transaction

United Kingdom

559

A+

Private Other Structured Finance Transaction

Australia

550

A-

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

United Kingdom

539

B+

Campania Region - Healthcare receivable

Italy

530

BBB-

University of Sussex

United Kingdom

522

BBB

NewHospitals (St Helens & Knowsley) Finance PLC

United Kingdom

518

BBB+

North Staffordshire PFI, 32-year EIB Index-Linked Facility

United Kingdom

493

BBB-

Central Nottinghamshire Hospitals PLC

United Kingdom

490

BBB-

Derby Healthcare PLC

United Kingdom

465

BBB

The Hospital Company (QAH Portsmouth) Limited

United Kingdom

450

BBB

Sydney Airport Finance Company

Australia

438

BBB+

Sutton and East Surrey Water plc

United Kingdom

410

BBB

Envestra Limited

Australia

400

A-

University of Essex, United Kingdom

United Kingdom

374

BBB

South Lanarkshire Schools

United Kingdom

358

BBB

Western Power Distribution (South West) plc

United Kingdom

357

BBB+

International Infrastructure Pool

United Kingdom

355

AAA

International Infrastructure Pool

United Kingdom

355

AAA

International Infrastructure Pool

United Kingdom

355

AAA

Northumbrian Water PLC

United Kingdom

329

BBB+

Catalyst Healthcare (Romford) Financing PLC

United Kingdom

321

BBB

Private International Sub-Sovereign Transaction

United Kingdom

321

A

Comision Federal De Electricidad (CFE) El Cajon Project

Mexico

300

BBB-

Portsmouth Water, United Kingdom

United Kingdom

296

BBB

Japan Expressway Holding and Debt Repayment Agency

Japan

294

A+

South Staffordshire Water PLC

United Kingdom

291

BBB+

Western Power Distribution (South Wales) PLC

United Kingdom

291

BBB+

Bakethin Finance Plc

United Kingdom

286

A-

Private International Sub-Sovereign Transaction

United Kingdom

278

A

Total top 50 non-U.S. exposures

$

37,489

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

36

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Asset Management Segment

37

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Assured Guaranty Ltd.

Asset Management Segment Results

(dollars in millions)

									Three Months Ended
									March 31,
															2025						2024
Segment revenues															$	6					$	1
Segment expenses															4						—
Equity in earnings (losses) of investees															13						1
Segment adjusted operating income (loss) before income taxes															15						2
Less: Provision (benefit) for income taxes															3						1
Segment adjusted operating income (loss)															$	12					$	1

38

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Corporate Division

39

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Assured Guaranty Ltd.

Corporate Division Results

(dollars in millions)

									Three Months Ended
									March 31,
															2025						2024
Revenues															$	4					$	5
Expenses
Interest expense															24						25
Employee compensation and benefit expenses															8						10
Other operating expenses															8						12
Total expenses															40						47
Equity in earnings (losses) of investees															16						—
Adjusted operating income (loss) before income taxes															(20)						(42)
Less: Provision (benefit) for income taxes															—						(5)
Adjusted operating income (loss)															$	(20)					$	(37)

40

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Other

41

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Assured Guaranty Ltd.

Other Results

(dollars in millions)

			Three Months Ended March 31, 2025
			FG VIEs						CIVs						Intersegment Eliminations and Reclassifications						Total Other
Revenues
Net earned premiums			$	—					$	—					$	—					$	—
Net investment income			(1)						—						(2)						(3)
Fair value gains (losses) on FG VIEs			1						—						—						1
Fair value gains (losses) on CIVs			—						19						—						19
Other income (loss)			—						(1)						—						(1)
Total revenues			—						18						(2)						16
Expenses
Loss expense (benefit)			—						—						—						—
Interest expense			—						—						(2)						(2)
Total expenses			—						—						(2)						(2)
Equity in earnings (losses) of investees			—						(6)						—						(6)
Adjusted operating income (loss) before income taxes			—						12						—						12
Less: Provision (benefit) for income taxes			—						1						—						1
Less: Noncontrolling interests			—						9						—						9
Adjusted operating income (loss)			$	—					$	2					$	—					$	2

			Three Months Ended March 31, 2024
			FG VIEs						CIVs						Intersegment Eliminations and Reclassifications						Total Other
Revenues
Net earned premiums			$	(1)					$	—					$	—					$	(1)
Net investment income			—						—						(2)						(2)
Fair value gains (losses) on FG VIEs			(3)						—						—						(3)
Fair value gains (losses) on CIVs			—						22						—						22
Other income (loss)			—						—						—						—
Total revenues			(4)						22						(2)						16
Expenses
Loss expense (benefit)			(3)						—						—						(3)
Interest expense			—						—						(2)						(2)
Total expenses			(3)						—						(2)						(5)
Equity in earnings (losses) of investees			—						(17)						—						(17)
Adjusted operating income (loss) before income taxes			(1)						5						—						4
Less: Provision (benefit) for income taxes			—						—						—						—
Less: Noncontrolling interests			—						4						—						4
Adjusted operating income (loss)			$	(1)					$	1					$	—					$	—

42

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Summary

43

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Assured Guaranty Ltd.

Summary of Financial and Statistical Data

(dollars in millions, except per share amounts)

						As of and for the Three Months Ended March 31, 2025						Year Ended December 31,
												2024						2023						2022						2021
GAAP Summary Statements of Operations Data
Net earned premiums						$	91					$	403					$	344					$	494					$	414
Net investment income						87						340						365						269						269
Total expenses						169						446						733						536						465
Income (loss) before income taxes						229						426						640						187						383
Net income (loss) attributable to AGL						176						376						739						124						389
Net income (loss) attributable to AGL per diluted share						3.44						6.87						12.30						1.92						5.23
GAAP Summary Balance Sheet Data
Total investments and cash						$	8,847					$	8,784					$	9,212					$	8,472					$	9,728
Total assets						11,938						11,901						12,539						16,843						18,208
Unearned premium reserve						3,671						3,719						3,658						3,620						3,716
Loss and LAE reserve						294						268						376						296						869
Long-term debt						1,700						1,699						1,694						1,675						1,673
Shareholders’ equity attributable to AGL						5,590						5,495						5,713						5,064						6,292
Shareholders’ equity attributable to AGL per share						112.80						108.80						101.63						85.80						93.19
Other Financial Information (GAAP Basis)
Financial guaranty:
Net debt service outstanding (end of period)						$	419,136					$	415,966					$	397,636					$	369,951					$	367,360
Gross debt service outstanding (end of period)						419,634						416,463						398,037						370,172						367,770
Net par outstanding (end of period)						263,591						261,552						249,153						233,258						236,392
Gross par outstanding (end of period)						264,072						262,032						249,535						233,438						236,765
Other Financial Information (Statutory Basis)(1)
Financial guaranty:
Net debt service outstanding (end of period)						$	418,869					$	415,454					$	396,448					$	366,883					$	362,013
Gross debt service outstanding (end of period)						419,367						415,951						396,849						367,103						362,423
Net par outstanding (end of period)						263,198						260,911						247,833						230,294						231,742
Gross par outstanding (end of period)						263,679						261,391						248,215						230,474						232,115
Claims-paying resources(2)
Policyholders' surplus						$	4,358					$	4,329					$	4,807					$	5,155					$	5,572
Contingency reserve						1,421						1,392						1,296						1,202						1,225
Qualified statutory capital						5,779						5,721						6,103						6,357						6,797
Unearned premium reserve and net deferred ceding commission income						2,961						2,964						2,955						2,941						2,972
Loss and LAE reserves						46						53						145						165						167
Total policyholders' surplus and reserves						8,786						8,738						9,203						9,463						9,936
Present value of installment premium						1,080						1,073						1,062						955						883
CCS and standby line of credit						400						400						400						400						400
Total claims-paying resources						$	10,266					$	10,211					$	10,665					$	10,818					$	11,219
Ratios:
Net exposure to qualified statutory capital						46:1						46:1						41:1						36:1						34:1
Capital ratio						73:1						73:1						66:1						58:1						53:1
Financial resources ratio						41:1						41:1						37:1						34:1						32:1
Adjusted statutory net exposure to claims-paying resources						26:1						26:1						24:1						21:1						21:1
Par and Debt Service Written (Financial Guaranty and Specialty)
Gross debt service written:
Public finance - U.S.						$	7,677					$	44,019					$	41,902					$	36,954					$	35,572
Public finance - non-U.S.						216						3,302						3,286						756						1,890
Structured finance - U.S.						149						1,495						2,130						1,120						1,319
Structured finance - non-U.S.						415						4,078						3,084						551						431
Total gross debt service written						$	8,457					$	52,894					$	50,402					$	39,381					$	39,212
Net debt service written						$	8,457					$	52,760					$	50,402					$	39,381					$	39,212
Net par written						5,002						31,695						28,960						22,047						26,656
Gross par written						5,002						31,829						28,960						22,047						26,656

1)    Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.

2)    See page 16 for additional detail on claims-paying resources.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.

44

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Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations(1) (1 of 2)

(dollars in millions, except per share amounts)

						Three Months Ended March 31, 2025						Year Ended December 31,
												2024						2023						2022						2021
Total GWP						$	35					$	440					$	357					$	360					$	377
Less: Installment GWP and other GAAP adjustments (2)						11						300						247						145						158
Upfront GWP						24						140						110						215						219
Plus: Installment premiums and other (3)						15						262						294						160						142
Total PVP						$	39					$	402					$	404					$	375					$	361
PVP:
Public finance - U.S.						$	25					$	270					$	212					$	257					$	235
Public finance - non-U.S.						7						67						83						68						79
Structured finance - U.S.						2						25						68						43						42
Structured finance - non-U.S.						5						40						41						7						5
Total PVP						$	39					$	402					$	404					$	375					$	361
Adjusted operating income reconciliation:
Net income (loss) attributable to AGL						$	176					$	376					$	739					$	124					$	389
Less pre-tax adjustments:
Realized gains (losses) on investments						(16)						9						(14)						(56)						15
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives						(2)						14						106						(18)						(64)
Fair value gains (losses) on CCS						2						(10)						(35)						24						(28)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves						33						(26)						51						(110)						(21)
Total pre-tax adjustments						17						(13)						108						(160)						(98)
Less tax effect on pre-tax adjustments						(3)						—						(17)						17						17
Adjusted operating income (loss)						$	162					$	389					$	648					$	267					$	470
Adjusted operating income per diluted share reconciliation:
Net income (loss) attributable to AGL per diluted share						$	3.44					$	6.87					$	12.30					$	1.92					$	5.23
Less pre-tax adjustments:
Realized gains (losses) on investments						(0.30)						0.16						(0.23)						(0.87)						0.20
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives						(0.04)						0.27						1.75						(0.27)						(0.85)
Fair value gains (losses) on CCS						0.03						(0.19)						(0.57)						0.37						(0.38)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves						0.64						(0.47)						0.84						(1.72)						(0.29)
Total pre-tax adjustments						0.33						(0.23)						1.79						(2.49)						(1.32)
Tax effect on pre-tax adjustments						(0.07)						—						(0.27)						0.27						0.23
Adjusted operating income (loss) per diluted share						$	3.18					$	7.10					$	10.78					$	4.14					$	6.32

1)    Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2)    Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, and GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

3)    Includes the present value of future premiums and fees on new business paid in installments, discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. Includes the present value of future premiums and fees associated with other business written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

45

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Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations(1) (2 of 2)

(dollars in millions, except per share amounts)

						As of March 31, 2025						As of December 31,
												2024						2023						2022						2021
ABV reconciliation:
Shareholders’ equity attributable to AGL						$	5,590					$	5,495					$	5,713					$	5,064					$	6,292
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives						47						49						34						(71)						(54)
Fair value gains (losses) on CCS						4						2						13						47						23
Unrealized gain (loss) on investment portfolio						(313)						(397)						(361)						(523)						404
Less taxes						34						46						37						68						(72)
Adjusted operating shareholders’ equity						5,818						5,795						5,990						5,543						5,991
Pre-tax adjustments:
Less: Deferred acquisition costs						181						176						161						147						131
Plus: Net present value of estimated net future revenue						199						202						199						157						160
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed						3,415						3,473						3,436						3,428						3,402
Plus taxes						(689)						(702)						(699)						(602)						(599)
ABV						$	8,562					$	8,592					$	8,765					$	8,379					$	8,823
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $0, $0, $(1), $(4), and $(5))						$	3					$	—					$	5					$	17					$	32
ABV (net of tax (provision) benefit of $1, $2, $0, $(3), and $(3))						$	(4)					$	(6)					$	—					$	11					$	23
ABV per share reconciliation:
Shareholders’ equity attributable to AGL per share						$	112.80					$	108.80					$	101.63					$	85.80					$	93.19
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives						0.94						0.96						0.61						(1.21)						(0.80)
Fair value gains (losses) on CCS						0.08						0.05						0.22						0.80						0.34
Unrealized gain (loss) on investment portfolio						(6.32)						(7.86)						(6.40)						(8.86)						5.99
Less taxes						0.70						0.90						0.66						1.15						(1.07)
Adjusted operating shareholders' equity per share						117.40						114.75						106.54						93.92						88.73
Pre-tax adjustments:
Less: Deferred acquisition costs						3.65						3.47						2.87						2.48						1.95
Plus: Net present value of estimated net future revenue						4.01						3.99						3.54						2.66						2.37
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed						68.92						68.75						61.12						58.10						50.40
Plus taxes						(13.89)						(13.90)						(12.41)						(10.22)						(8.88)
ABV per share						$	172.79					$	170.12					$	155.92					$	141.98					$	130.67
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity per share						$	0.04					$	0.01					$	0.07					$	0.28					$	0.47
ABV per share						$	(0.07)					$	(0.13)					$	—					$	0.19					$	0.34

1)    See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

46

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Glossary

Financial Guaranty Insurance

Net Par Outstanding and Internal Ratings

Net Par Outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.

Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.

Statutory Net Par and Net Debt Service Outstanding. Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).

Performance Indicators

The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:

60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.

Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’s exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.

Sectors

Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2024.

U.S. Public Finance:

General Obligation Bonds are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.

Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.

Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

Transportation Bonds include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

Healthcare Bonds are obligations of healthcare facilities, including community-based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

47

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Glossary (continued)

Sectors (continued)

Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.

Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

Renewable Energy Bonds are obligations backed by revenue from renewable energy sources.

Other Public Finance Bonds include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, and obligations of some not-for-profit organizations.

Non-U.S. Public Finance:

Regulated Utility Obligations are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities’ customers. The majority of the Company’s non-U.S. regulated utility business is conducted in the U.K.

Infrastructure Finance Obligations are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodations, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company’s non-U.S. infrastructure business is conducted in the U.K.

Sovereign and Sub-Sovereign Obligations primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.

Renewable Energy Bonds are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company’s non-U.S. renewable energy business is conducted in Spain.

Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of credit default swap obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.

Structured Finance:

Insurance Reserve Financings and Securitizations are transactions, including life insurance transactions, where obligations are secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

Residential Mortgage Backed Securities are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including “prime,” “subprime” and “Alt-A.” A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit, which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008.

Subscription Finance Facilities are lending facilities provided to closed-end private market funds, most frequently private-equity funds. The facilities are secured by the uncalled capital commitments of the limited partners (LP) to the fund. The Company may guarantee new or existing facilities and on a single facility or portfolio basis. Assured Guaranty’s exposures are generally to facilities with characteristics that include a high-quality fund sponsor with strong historical performance, a diverse LP base composed primarily of institutional LPs and experienced bank lenders.

Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in “tranches,” with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.

Financial Products Business is the guarantee of certain business written by financial products companies owned by Dexia SA, which comprised guaranteed investment contracts, medium term notes and equity payment undertaking agreements associated with leveraged lease business. This business is being run off with the final maturity due in 2031. Assured Guaranty is indemnified by Dexia SA and certain of its affiliates against loss from the former financial products business.

48

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Glossary (continued)

Sectors (continued)

Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other U.S. and Non-U.S. Structured Finance Obligations categories above.

Specialty Business

The Company also guarantees specialty business with similar risk profiles to its structured finance exposures written in financial guaranty form. Specialty business includes, for example, diversified real estate, insurance reserve financings and securitizations, pooled corporate obligations and aircraft residual value insurance transactions.

49

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Non-GAAP Financial Measures

The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.

The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and CIVs in which certain subsidiaries invest.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.

The Company’s management and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (i) adjusted operating income per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating income per share); (ii) adjusted operating shareholders’ equity per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating shareholders’ equity per share); (iii) ABV per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core ABV per share); (iv) core operating return on equity, which is calculated as core operating income divided by the average of core operating shareholders’ equity at the beginning and end of the period; and (v) PVP.

The Company’s management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or ABV, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares.

Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.

The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented within this financial supplement.

Adjusted Operating Income: The Company’s management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

1)    Elimination of realized gains (losses) on the Company’s investments that are recognized in net income (loss) attributable to AGL, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.

2)    Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income (loss) attributable to AGL, which is the amount of fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.

3)    Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income (loss) attributable to AGL. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

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Non-GAAP Financial Measures (continued)

4)    Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income (loss) attributable to AGL. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

 

5)    The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Adjusted operating income per share is calculated by dividing adjusted operating income by the weighted average diluted shares. The method for calculating weighted average diluted shares is in accordance with GAAP.

Adjusted Operating Shareholders’ Equity and ABV: The Company’s management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss. The Company’s management uses ABV, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. The Company’s management believes that ABV is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses.

Adjusted operating shareholders’ equity per share and ABV per share, each further adjusted for FG VIE and CIV consolidation (core operating shareholders’ equity per share and core ABV per share, respectively), are two of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors.

Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:

1)    Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are reported on the consolidated balance sheet, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

2)    Elimination of fair value gains (losses) on the Company’s CCS that are reported on the consolidated balance sheet. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

 

3)    Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not result in an economic gain or loss.

4)     The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

ABV is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:

1)    Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2)    Addition of the net present value of estimated net future revenue. See below.

 

3)    Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed.

4)    The tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Shares outstanding as of the end of the reporting period are used to calculate adjusted operating shareholders’ equity per share and ABV per share.

The unearned premiums and revenues included in ABV will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current ABV due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.

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Non-GAAP Financial Measures (continued)

Adjusted Operating Return on Equity (Adjusted Operating ROE): Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL’s share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.

Net Present Value of Estimated Net Future Revenue: The Company’s management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.

PVP or Present Value of New Business Production: The Company’s management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP GWP and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums. 

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.

Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.

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Assured Guaranty Ltd.                        

30 Woodbourne Avenue

Hamilton HM 08

Bermuda

(441) 279-5705

www.assuredguaranty.com

Contacts:

Equity and Fixed Income Investors:

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

(212) 339-0861

rtucker@agltd.com

Michael Walker

Managing Director, Fixed Income Investor Relations

(212) 261-5575

mwalker@agltd.com

Andre Thomas

Managing Director, Equity Investor Relations

(212) 339-3551

athomas@agltd.com

Media:

Ashweeta Durani

Director, Media Relations

(212) 408-6042

adurani@agltd.com