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Assured Guaranty reports six-fold increase in net income

Assured Guaranty Ltd, the Bermudian-based holding company, has reported a six-fold increase in net income to $66 million for the first quarter of 2022.

That compares with net income of $11 million in the prior year quarter.

First quarter capital returned to shareholders was $172 million, including the repurchase of 2.7 million shares for $155 million, and dividends of $17 million.

Insurance segment adjusted operating income was $133 million in the quarter. Gross written premiums were $70 million.

Present value of new business production (PVP) was $69 million.

Asset management segment adjusted operating income was break-even for the quarter. Assets under management inflows were $91 million.

President and CEO Dominic Frederico said: “The first quarter of 2022 was a turning point for Assured Guaranty.

“By completing consensual settlements, we eliminated $1.3 billion of our Puerto Rico insured net par exposure and received cash and new G.O. bonds totalling approximately $1.2 billion, as well as additional contingent value instruments.

“The settlements also resulted in an acceleration of premium earnings, reduced our Puerto Rico exposure to less than 1 per cent of our net par outstanding and contributed to our strong first-quarter adjusted operating income of $1.34 per share, almost two-and-a-half times last year’s first-quarter result.

“In the quarter’s volatile capital markets, we produced $69 million of PVP and captured a 58 per cent share of insured par sold in the primary municipal bond market.”

Assured Guaranty Ltd president and CEO Dominic Frederico (File photograph)

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Published May 06, 2022 at 2:13 pm (Updated May 06, 2022 at 2:13 pm)

Assured Guaranty reports six-fold increase in net income

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