Assured Guaranty Ltd. made a loss of $115 million for the third quarter 2007 amid heightened concerns over the credit crisis.

The company posted a net loss of $115m or $1.70 per diluted share for the quarter ended September 30 compared to a net income of $37.9m, or $0.51 per diluted share for the third quarter of 2006.

The decline in net income was primarily due to an after-tax unrealised mark-to-market loss on derivatives that was announced by the company on October 22 of $162.9m, or $2.40 per diluted share, on financial guaranties written in credit default swap contract form.

"Assured's accomplishments in the quarter, including the upgrade of Assured Guaranty Corp. to Aaa by Moody's and record new business production, have been overshadowed by the current concerns in the credit markets," said Dominic Frederico, president and chief executive officer of Assured Guaranty.

"The performance of residential-related asset exposures has generally been poor in recent months given the high rates of defaults and delinquencies; however, Assured's credit experience has been exceptional in the industry, with limited exposure to the major areas of market concern. Furthermore, in the sub-prime residential mortgage-backed securities (RMBS) market, one of the largest areas of concern, we are well protected."