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Shareholders’ equity per share at record highs

Bermuda-based Assured Guaranty Ltd has reported net income of $17 million for the third quarter.

That figure includes a $175 million pre-tax ($138 million after-tax) loss on debt extinguishment resulting from the voluntary early redemption of certain senior notes.

Shareholders’ equity attributable to Assured Guaranty Ltd per share was $88.42 as of September 30, the highest ever reported.

Adjusted operating income was $34 million, or $0.45 per share.

Adjusted operating shareholders’ equity per share and adjusted book value per share reached record highs of $82.89 and $122.50, respectively, as of September 30, the company said.

Third quarter capital returned to shareholders was $156 million, including the repurchase of 2.9 million shares for $140 million, and dividends of $16 million.

Insurance segment adjusted operating income was $214 million for the quarter. Gross written premiums were $106 million, and present value of new business production (PVP) was $96 million.

The company’s asset management segment adjusted operating loss was $7 million for the quarter. Gross inflows were $916 million.

Dominic Frederico, president and chief executive officer of Assured Guaranty, said: “The trend towards greater use of bond insurance continued in the third quarter, pushing insurance penetration of the municipal bond market to the highest levels in a decade for both a third quarter and any nine-month period.

“Assured Guaranty continued to lead the municipal bond insurance industry with a third-quarter market share of almost two-thirds of primary-market insured par sold.

“Global public finance production combined with solid structured finance results to produce $96 million of PVP, a very strong result for a third quarter that, in the last decade, is second only to the third quarter of 2020. At quarter-end, all of our per-share measures of shareholder value stood at new highs.”

Regarding corporate capital structure, he added: “In August, following our successful May issuance of $500 million of 3.15 per cent 10-year senior debt, we issued $400 million of 3.6 per cent 30-year senior notes. Part of the combined proceeds were used to redeem $600 million of higher coupon outstanding debt at significant debt service savings.”

Assured is a publicly traded Bermuda-based holding company. Through its subsidiaries, it provides credit enhancement products to the US and international public finance, infrastructure and structured finance markets and also provides asset management services.

Dominic Frederico, president and chief executive officer of Assured Guaranty (File photograph)

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Published November 05, 2021 at 2:57 pm (Updated November 05, 2021 at 2:58 pm)

Shareholders’ equity per share at record highs

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