Assured Guaranty’s new annuity reinsurance operation recorded a $2 million quarterly profit as the group reported record per-share valuation measures at the halfway point of 2026.

The renamed Assured Life Re generated adjusted operating income of $2 million in the second quarter, following Assured Guaranty’s acquisition of Warwick Re in January.

The transaction marked the financial guarantor’s expansion into the annuity reinsurance market.

The operation reinsures a British pension risk-transfer block with reserves of $484 million, supported by an investment portfolio of $596 million.

It also reinsures a block of American multi-year guaranteed annuities with policyholder account values of $256 million. That portfolio is supported by $296 million of funds-withheld assets.

Dominic Frederico, president and chief executive of Assured Guaranty, pointed to “the progress we have made and the market’s reception” of Assured Life Re.

The group reported adjusted operating income of $55 million, or $1.11 per share, for the second quarter. That represented a 10 per cent increase from $50 million, or 94 cents per share, in the same period last year.

However, net income calculated under generally accepted accounting principles fell to $39 million, or 79 cents per share, from $103 million, or $1.93 per share, a year earlier.

Assured Guaranty’s financial guaranty business is still the group’s largest earnings contributor. Its adjusted operating income increased 12 per cent to $85 million.

The company also reported stronger production in structured finance. Combined United States and international structured-finance gross written premiums rose 375 per cent compared with the prior-year quarter, while the present value of premiums from the business increased 125 per cent.

Three key valuation measures reached record levels during the quarter.

Shareholders’ equity per share rose to $126.18, adjusted operating shareholders’ equity reached $129.94 per share and adjusted book value climbed to $189.72 per share.

The company said the Assured Life Re acquisition contributed to the growth in adjusted book value.

Assured Guaranty returned $62 million to shareholders through share repurchases and dividends during the quarter. Since the beginning of 2013, the group has returned approximately $6 billion to shareholders through share buybacks.