NEW YORK (Reuters) ? Assured Guaranty Ltd. yesterday said net income for the fourth quarter and full year of 2005 will fall by $3.9 million, or five cents a share, as a reinsurance client said it will cede a case loss reserve to a unit of the company.

The surety bond reinsurer said the case loss reserve related to two Northwest Airlines Enhanced Equipment Trust Certificate credits with net par outstanding of $66.1 million.

Assured Guaranty said the case loss reserve of $10.4 million was $6 million more than the $4.4 million of portfolio reserves previously established by it for these credits.