Assured Guaranty Ltd. saw first quarter net income decline six percent to $44.3 million compared with net income of $46.9 million during the same period last year.

Operating income, which excludes net realised gains or losses, for the three month period fell five percent to $41.3 million in contrast to the $43.7 million posted in the first quarter of 2004

President and CEO Dominic Frederico said in an earnings statement: “This was a very good quarter for Assured Guaranty. We received a AAA insurer financial strength rating from Fitch Ratings for Assured Guaranty Corp., our US direct financial guaranty company, while achieving the highest level of new business production since our IPO.”

CFO Robert Mills ran through some of the company's recent financial highlights.

“Assured Guaranty's balance sheet strength and earnings power grew during the quarter, reflecting both our new business production as well as strategic transactions, such as the sale of our single name CDS book, the agreement to reinsure FSA's book of ceded reinsurance to Assured Guaranty Re in Bermuda and Assured Guaranty Corp.'s new $200 million soft capital facility.”

At the Bermuda company's first annual general meeting last week, former ACE Limited CEO Walter Scott was elected chairman of Assured's Board of Directors.

He and Mr. Frederico announced earlier this year that they were stepping down from positions both had long held on the ACE board of directors. ACE has a 35 percent stake in Assured, with the company being founded after ACE made the decision to spin off its financial guaranty business.