Bermuda-based Assured Guaranty Ltd. saw third-quarter revenues drop 25 percent to $76.6 million from $102.2 million a year ago.

Assured Guaranty Ltd. provides credit enhancement products to the municipal finance, structured finance and mortgage markets.

Its earnings for the quarter were $44.5 million, or 59 cents a share, compared with $42.9 million, or 57 cents a share, a year earlier. Operating income increased 15 percent to $33.6 million, or 45 cents per share, from $29.3 million, or 39 cents per share in the third quarter of 2003. Net earned premiums fell 32 percent in the 2004 quarter to $53.4 million compared with $78.2 million in the 2003 quarter. Book value per share for the quarter ended September 30, 2004 increased 3.3 percent to $19.58 compared to $18.86 at June 30, 2004.

In the company's earnings statement in its first full quarter as a publicly traded company Dominic Frederico, chief executive officer, said: "While market conditions present some challenges to the broader financial guaranty market, our operations made strategic and financial progress."