Assured Guaranty reports Q3 profit of $11 million
Bermudian-based holding company Assured Guaranty Ltd has reported net income of $11 million in the third quarter.
That compares with net income of $17 million in the third quarter a year ago.
This year’s third quarter result includes after-tax losses of $72 million related to foreign exchange remeasurement, and $40 million of fair value adjustments on credit derivatives.
Shareholders’ equity attributable to Assured Guaranty Ltd per share was $81.17 as of September 30.
Adjusted operating income was $133 million, and adjusted operating shareholders’ equity per share and adjusted book value per share were $91.82 and $137.87, respectively, as of September 30.
Third quarter capital returned to shareholders was $113 million, consisting of the repurchase of 1.8 million shares for $97 million, and dividends of $16 million.
In the insurance segment, adjusted operating income was $159 million.
Gross written premiums were $94 million, and the present value of new business production was $95 million.
In the asset management segment, the adjusted operating loss was $3 million in the quarter.
President and CEO Dominic Frederico said the company “performed well” during the quarter.
He added: “Gross written premiums and PVP were driven mainly by our best third-quarter PVP in international public finance and our second-best third-quarter PVP in US public finance in more than a decade.
“While GAAP net income per share was 18 per cent lower in third quarter 2022 primarily due to foreign exchange remeasurement and fair value adjustments on credit derivatives, adjusted operating income per share was 369 per cent higher than in third quarter 2021.
“In US public finance, we saw strong demand for Assured Guaranty’s secondary market bond insurance where we wrote more insured par than in any first nine-month period of the last decade.
“Our $2.2 billion of secondary insured par totalled more than 11 times that of the same period last year.
“While rising interest rates and the resulting unrealised losses in the investment portfolio resulted in a decrease in our shareholders’ equity per share, our other principal measures of shareholder value, adjusted operating shareholders’ equity per share and adjusted book value per share, both increased since the beginning of the year.
“In our share repurchase programme during the first three quarters of 2022, we repurchased over 7.1 million shares, representing more than ten per cent of our total shares outstanding on December 31, 2021.”