Assured Guaranty is directing more capital towards annuity reinsurance and alternative investments as it expands beyond its traditional bond insurance business, after reporting lower first-quarter earnings despite stronger new business production.

The company, which provides credit protection products for public finance and structured finance markets, said it had entered 2026 with “a strong first quarter” as gross written premiums doubled year-on-year to $70 million.

“Assured Guaranty began 2026 with a strong first quarter,” said Dominic Frederico, president and chief executive. “In new business production, year-over-year, we doubled first-quarter gross written premium to $70 million and nearly doubled first-quarter [present value of new business production] to $73 million, with increased production in each of our three financial guaranty business sectors.”

Net income attributable to shareholders fell to $88 million, from $176 million a year earlier, largely because the prior-year quarter included a major gain tied to the resolution of litigation involving Lehman Brothers International Europe.

More strategically significant for Bermuda’s insurance market was the company’s expansion into annuity reinsurance through the acquisition of Warwick Re, renamed Assured Life Reinsurance Ltd.

The new business includes a £475 million (about $647 million) United Kingdom pension risk transfer portfolio and a $263 million United States multiyear guaranteed annuity portfolio.

Assured also said it planned to reduce the pace of share buybacks in order to deploy more capital into “growth opportunities” in financial guaranty insurance and annuity reinsurance.

The move points to Bermuda’s growing role as a hub for life and retirement reinsurance, with insurers looking for long-duration liabilities and investment-driven earnings streams.

Bermuda’s life reinsurers have more than $1.5 trillion of assets under management, according to Bermuda International Long-Term Insurers and Reinsurers.

Asset management also became a larger contributor to results, with adjusted operating income from the segment rising to $44 million from $12 million a year earlier.