Bermuda-based bond insurer Assured Guaranty Ltd saw first-quarter profit fall as it took a net loss of more than $136 million on defaulted Greek debt that it insured.Operating income fell to $71.2 million in the first quarter, compared with $247.4 million a year earlier.When the company’s own credit spreads were taken into account, its net loss was $483 million, or $2.65 per share.“Our first quarter results reflect the continued resilience of Assured Guaranty during this period of adverse economic and market conditions,” said Assured’s CEO Dominic Frederico. “Even after absorbing a material loss on the guaranty of Greek debt that we assumed through our purchase of FSA, we reported positive operating income and increased our adjusted book value. We also increased our penetration of our single-A target market in US public finance despite low interest rates and tight credit spreads.”Assured added that it had received a payment of $165.6 million from Deutsche Bank to settle a law suit over losses on securities backed by residential mortgages.“This settlement further strengthens our balance sheet by providing a substantial cash payment and certainty related to the loss-sharing arrangement on future claims,” Mr Frederico said.“We have now reached favourable settlements with respect to approximately 37 percent of the par outstanding of Assured Guaranty’s troubled legacy RMBS [residential mortgage-backed securities].”A year ago, Assured secured a $1.1 billion payout from Bank of America to settle a claim over faulty mortgages. Assured had claimed that loans based on sloppy lending standards were the basis of residential mortgage-backed securities that the Bermuda company insured. The deal, like the one with Deutsche Bank include a sharing agreement for future losses.According to Bloomberg data, billionaire investor Wilbur Ross’s company, WL Ross & Co, is the largest holder of Assured shares, with a stake of 19.8 million shares amounting to a 10.9 percent stake in the company.Assured shares fell nine cents, or 0.7 percent, to $12.99 in New York Stock Exchange trading by 1pm Bermuda time on Friday.