Assured Guaranty Ltd. — Second Quarter 2026 Earnings Summary

Financial Performance

• GAAP net income attributable to Assured Guaranty Ltd. was $39 million ($0.88 per diluted share) for the quarter ended June 30, 2026, compared to $103 million ($2.08 per diluted share) in the same period of 2025.
• Adjusted operating income was $55 million ($1.23 per diluted share) for the quarter, an increase from $50 million ($1.01 per diluted share) in the prior year period.
• Gross written premiums (GWP) were $81 million for the quarter, down from $85 million in the prior year period.
• Present value of new business production (PVP) was $79 million for the quarter, up from $64 million in the prior year period.
• Shareholders' equity attributable to AGL was $5,559 million ($126.18 per share) as of June 30, 2026, compared to $5,663 million ($125.32 per share) as of December 31, 2025.
• Adjusted operating shareholders' equity was $5,724 million ($129.94 per share) as of June 30, 2026, compared to $5,729 million ($126.78 per share) as of December 31, 2025.
• Adjusted book value (ABV) was $8,358 million ($189.72 per share) as of June 30, 2026, compared to $8,424 million ($186.43 per share) as of December 31, 2025.
• Total segment revenues for the Financial Guaranty segment were $199 million in the second quarter of 2026, unchanged from the prior year period.
• Financial Guaranty segment adjusted operating income increased to $85 million in the second quarter of 2026 from $76 million in the prior year period.
• Net investment income for the Financial Guaranty segment was $89 million in the second quarter of 2026, consistent with the prior year period.
• Equity in earnings (losses) of investees for the Financial Guaranty segment was a loss of $10 million in the second quarter of 2026, compared to a gain of $2 million in the prior year period.
• Loss expense for the Financial Guaranty segment was $5 million in the second quarter of 2026, a decrease from $27 million in the prior year period.
• The Corporate division reported an adjusted operating loss of $28 million for the quarter, compared to a loss of $29 million in the prior year period.
• Asset Management segment reported an adjusted operating loss of $4 million for the quarter, compared to income of $4 million in the prior year period.
• Annuity Reinsurance segment reported adjusted operating income of $2 million for the quarter.
• Total assets were $12,641 million as of June 30, 2026, compared to $12,176 million as of December 31, 2025.
• Long-term debt was $1,706 million as of June 30, 2026, compared to $1,704 million as of December 31, 2025.
• Net investment income pre-tax book yield was 4.92% as of June 30, 2026, compared to 4.67% as of June 30, 2025.

Guidance and Future Outlook

• Management noted that key valuation metrics (shareholders' equity, adjusted operating shareholders' equity, and ABV) reached per share record highs as of June 30, 2026.
• First half 2026 new business production saw GWP and PVP exceed first half 2025 totals by 26% and 48%, respectively.
• The Company continues to see positive developments in its global structured finance business.
• Management expressed satisfaction with the progress and market reception of the Assured Life Re annuity reinsurance platform.
• Future capital allocation decisions, including share repurchases, will depend on alternative uses for capital, regulatory capital position, rating agency considerations, cash availability, market conditions, and legal requirements.

Business Segments and Product Lines

• Financial Guaranty Segment:
  • U.S. public finance GWP was $54 million, down from $73 million in the prior year period, primarily due to additional installment premiums in 2025 on a transportation revenue transaction.
  • U.S. public finance PVP was $58 million, up from $49 million in the prior year period, driven by infrastructure finance transactions.
  • Non-U.S. public finance GWP and PVP were $8 million and $3 million, respectively, including a regulated utility in Spain and a secondary market regulated utility in the U.K.
  • U.S. structured finance GWP and PVP increased 375% and 125%, respectively, compared to the prior year period, including fund finance and life insurance capital management financial guaranties.
  • Non-U.S. structured finance GWP and PVP were $8 million and $9 million, respectively.
  • The Company's primary par written represented 51% of the total U.S. municipal market insured par sold in the second quarter of 2026, down from 64% in the prior year period.
  • The Company's penetration of all municipal issuance was 3.3% in the second quarter of 2026, down from 6.0% in the prior year period.
  • Scheduled net earned premiums and credit derivative revenues increased to $95 million in the second quarter of 2026 from $88 million in the prior year period.
  • Net economic loss development in the second quarter of 2026 was primarily attributable to Brightline Trains Florida LLC.
• Annuity Reinsurance Segment:
  • Established on January 21, 2026, through the acquisition of Warwick Re Limited, renamed Assured Life Re.
  • Reinsures a block of PRT business with reserves of $484 million, supported by a $596 million asset portfolio.
  • Reinsures a block of MYGA business with a policyholder account value of $256 million.
• Asset Management Segment:
  • Includes the Company's ownership interest in Sound Point Capital Management, LP.
  • Second quarter 2025 income included net carried interest from the sale of underlying assets in a single asset-fund in the first quarter of 2026.
• Corporate Division:
  • Primarily consists of interest expense on debt of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc., plus holding company expenses.

Market and Competitive Landscape

• Business activity in non-U.S. public finance and structured finance markets often has long lead times and may vary from period to period.
• The Company's primary par written share of the U.S. municipal market decreased from 64% in the prior year period to 51% in the current period.
• The Company's penetration of all municipal issuance decreased from 6.0% in the prior year period to 3.3% in the current period.
• Alternative investments totaled $928 million as of June 30, 2026, with an inception-to-date annualized internal rate of return of 12%.

Risks and Challenges

• Equity in earnings of investees volatility is driven by mark-to-market changes associated with alternative investments, specifically CLO investments which generated $19 million in mark-to-market losses in the second quarter of 2026.
• Net economic loss development was impacted by the performance of Brightline Trains Florida LLC.
• Foreign exchange remeasurement gains/losses on long-term assets and liabilities can be volatile due to changes in exchange rates relative to the U.S. dollar.
• Realized losses on investments were primarily due to credit losses on CLO equity tranches.
• The Company faces risks related to inflation, interest rates, credit spreads, geopolitical events, cybersecurity, and regulatory changes as detailed in the forward-looking statements section.

Management Commentary and Tone

• Dominic Frederico, President and CEO, stated that key valuation metrics reached record highs at the midway point of 2026.
• Management highlighted solid new business production in the first half of 2026, with GWP and PVP exceeding prior year totals.
• Management expressed positive sentiment regarding the global structured finance business and the reception of the Assured Life Re platform.
• The tone reflects confidence in the company's capital position and strategic expansion into annuity reinsurance.

Other Key Points

• Total capital returned to shareholders in the second quarter of 2026 was $62 million, consisting of $45 million in share repurchases and $17 million in dividends.
• Since the launch of the share repurchase program in 2013, the Company has returned $6 billion of capital to shareholders, having repurchased 81% of its common shares outstanding at the beginning of the program.
• In the second quarter of 2026, the Company repurchased 0.554 million shares for $45 million at an average price of $80.68 per share.
• As of August 5, 2026, the Company was authorized to repurchase an additional $121 million of its common shares.
• The Company acquired Warwick Re Limited on January 21, 2026, and renamed it Assured Life Re to expand into annuity reinsurance.
• The Company will host a conference call on August 7, 2026, at 8:00 a.m. Eastern Time.