Profits tumble at Assured Guaranty
Profits at Bermudian-based Assured Guaranty plummeted by more than $150 million in the second quarter compared to the same period last year.
The firm yesterday posted net income of $146 million, down $151 million year-on-year.
The latest profit figure is equivalent to $1.09 per share, compared with $1.96 per share in the corresponding period of last year.
Net earned premiums for the period totalled $214 million, down $5 million compared with the second quarter of 2015.
Net investment income remained steady at $98 million, the same as a year ago, while operating income fell from $278 million to $139 million.
Dominic Frederico, the company's chief executive officer, said: “Assured Guaranty had a solid second quarter. We continued to build our financial strength and furthered our strategic objectives on July 1 when we completed our acquisition of CIFG.”
He added: “Standard & Poor's global ratings took note of our positive risk-adjusted pricing trend in its July 27 report affirming our AA financial strength ratings.
“In the report, S&P said that none of the severe stress scenarios it applied to our Puerto Rico exposure reduced our ‘very strong' capital adequacy score.”
The Assured Guaranty report said that net income was higher in the same quarter last year, in comparison to this year, “due primarily to the gains recognised upon the acquisition of Radian Asset Assurance in the second quarter 2015.
“This was offset in part by lower loss and loss adjustment expenses in second quarter 2016 compared with second quarter 2015.”
During the second quarter of this year, the company repurchased 2.3 million shares worth a total of $60 million.