Bermuda-based bond insurer Assured Guaranty Ltd. last night reported a third-quarter net loss of $35 million in the first period to include the results of new acquisition Financial Security Assurance Holdings Ltd.

The loss broke down to 22 cents per share and compared to a net loss of $63.3 million or 69 cents per share in the third quarter of 2008.

The company said operating income for third quarter was $70.1 million, a $44.1 million increase compared to the same period in 2008

Third quarter 2009 consolidated net loss and operating income included $34.1 million of after-tax FSAH acquisition-related expenses, while third quarter 2008 did not include any FSAH acquisition-related expenses.

Excluding FSAH acquisition-related expenses, operating income per diluted share was 65 cents, a 132 percent increase over 2008 third-quarter operating income of 28 cents.

"Our operating earnings were positive, despite the losses on the US residential mortgage-backed securities that we insured, demonstrating the enhanced earnings power of the combined companies," said Dominic Frederico, president and chief executive officer of Assured Guaranty.

"The FSAH acquisition has added significantly to our invested assets and future revenues. Based on Moody's recently-announced ratings decision and consistent with our long-standing commitment to maintain the highest financial strength ratings possible, we intend to complete capital initiatives by year-end that include already negotiated external reinsurance, inter-company capital support and $300 million of external capital."