Bermudian-based bond insurer Assured Guaranty and its operating subsidiaries have had their credit ratings affirmed by KBRA.

These include the insurance financial strength ratings of AA+ for Assured Guaranty, Assured Guaranty UK, and Assured Guaranty (Europe).

At the same time, KBRA affirms the A+ issuer rating for Assured Guaranty US Holdings (AGUS), as well as the A+ debt ratings on the 6.125 per cent senior notes due 2028, the 3.15 per cent senior notes due 2031, and the 3.6 per cent senior notes due 2051.

The outlooks for all ratings remain stable.

KBRA said the rating affirmations reflect AG’s substantial claims-paying resources, formal risk management framework, disciplined underwriting and surveillance, and established position in the financial guaranty market.

The ratings agency also said it was also watching Assured’s venture into the annuities reinsurance business and how its growth could impact the group’s risk profile.

At year-end 2025, AG maintained approximately $6.7 billion of KBRA-defined claims-paying resources and strong capital headroom relative to KBRA’s modelled stress losses.

“The company’s insured portfolio, totalling approximately $211.4 billion of net par, remained predominantly investment grade and granular, with favourable rating migration and a decline in below-investment-grade exposure to approximately 3.2 per cent from 4.1 per cent,” KBRA stated.

The rating agency added that persistent tight credit spreads continued to constrain premium generation and new-business economics.

“KBRA continues to monitor growth in alternative investments and the integration of Assured Life Reinsurance Ltd,” KBRA stated. “These activities remain limited relative to the financial guaranty business but introduce incremental asset, liquidity, capital, asset liability management, and earnings risk within the Assured Guaranty group.”

Assured expanded into annuity reinsurance through the acquisition of Bermudian-based 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.

Dominic Frederico, president and chief executive officer of Assured Guaranty, said in response to KBRA’s report: “As Assured Guaranty looks to expand the utilisation of our products into new sectors and geographic markets, develop additional product applications and add new counterparty relationships, all in line with our strategic objectives to accelerate new business growth, we are pleased that KBRA has once again recognised our experienced management team’s stewardship of our high-quality insured portfolio over the past 40-plus years.

“We see promising growth opportunities in a number of areas within US public finance, as well as within our global structured finance and non-US public finance markets.”