Bermuda-based bond insurer Assured Guaranty yesterday posted profits of $129 million for the third quarter — $206 million down on the same period last year.

The 2015 third quarter figure — equivalent to 88 cents per share — compares to third quarter 2014 profits of $355 million or $2.09 per share.

Company president and CEO Dominic Frederico said: “Assured Guaranty had a successful third quarter in 2015.

“We continued to lead the US municipal market in terms of both par and number of new issues insured.

“We also repurchased 5.4 million shares and with finished the quarter with a record adjusted book value per share just shy of $60.”

The decrease in net income was largely attributed to lower fair value gains on credit derivatives and financial guaranty variable interest entities, as well as higher loss and loss adjustment expenses, offset in part by higher net earned premiums.

Loss and loss adjustment expenses were attributed largely to increased loss reserves on exposures in Puerto Rico, which is in the throes of a debt crisis.

The company spent $135 million on share repurchases in the third quarter.

Net earned premiums totalled $213 million in the third quarter — up $69 million on the same quarter of last year.

The firm said the increase was mostly down to higher accelerations and the acquisition of Radian Asset Assurance.

Assured Guaranty is the holding company for operating subsidiaries which provide credit enhancement products to the US and international public finance, infrastructure and structured finance markets.