Assured Guaranty Ltd. yesterday announced earnings in the first quarter of $46.9 million.

The earnings report followed the company, which is the recently spin off of ACE Limited?s financial guaranty arm, having listed on the New York Stock Exchange at the end of April, raising $882 million.

In a press statement yesterday, Assured Guaranty said its earnings in the first quarter of this year were up 48 percent over the same period in 2003 when net income was $31. 8 million.

The company, which insures against the default of municipal bonds and other financial instruments, said it had seen a 69 percent surge in net premiums earned with it posting $86.7 million this quarter compared to $63.6 million during the same period a year ago.

But the company did not fare as well on the gross premiums written front with it recording a negative $1.5 million from its ?other segment? which it said represented ?our exited lines of business? resulting in a reduction of $97.8 million in the quarter ?due to the accounting for the unwinding of equity layer credit protection products?.

But in lines in which the company is still active in, it wrote healthy levels of business with $25.6 million in gross premiums written by its financial guaranty direct unit, $52.4 million in financial guaranty reinsurance and $14 million in mortgage guaranty.

CEO Dominic Frederico said: ?This quarter demonstrates the strength of our flexible operating structure.

?Our reinsurance business produced outstanding results despite a soft financial guaranty market.

?Our mortgage guaranty platform also produced solid new business that will contribute to our future earnings base.?