Assured Guaranty Ltd. — Third Quarter 2026 Earnings Summary

Financial Performance:

• GAAP net income attributable to Assured Guaranty Ltd. was $78 million ($1.75 per diluted share) for the quarter ended September 30, 2026, compared to $105 million ($2.18 per diluted share) in the same period in 2025.
• Non-GAAP adjusted operating income was $86 million ($1.94 per diluted share) for the quarter, down from $124 million ($2.57 per diluted share) in the prior year period.
• Gross written premiums (GWP) totaled $127 million for the quarter, compared to $75 million in the third quarter of 2025.
• Present value of new business production (PVP) was $128 million for the quarter, up from $91 million in the third quarter of 2025.
• Shareholders' equity attributable to AGL per share was $122.91 as of September 30, 2026, down from $125.32 per share as of December 31, 2025.
• Adjusted operating shareholders' equity per share was $131.99 as of September 30, 2026, up from $126.78 per share as of December 31, 2025.
• Adjusted book value (ABV) per share was $192.60 as of September 30, 2026, up from $186.43 per share as of December 31, 2025.
• Total segment revenues for the Financial Guaranty segment were $207 million in the quarter, compared to $206 million in the prior year period.
• Financial Guaranty segment adjusted operating income was $115 million, down from $145 million in the prior year period.
• Net investment income for the Financial Guaranty segment was $93 million, compared to $94 million in the prior year period.
• Loss expense for the Financial Guaranty segment was $1 million in the quarter, compared to a benefit of $31 million in the prior year period.
• Net economic loss development was a benefit of $27 million for the quarter.
• Total assets were $12,435 million as of September 30, 2026, compared to $12,176 million as of December 31, 2025.
• Long-term debt was $1,707 million as of September 30, 2026, compared to $1,704 million as of December 31, 2025.

Guidance and Future Outlook:

• The Company reported strong new business production in the first nine months of 2026, generating $278 million of GWP and $280 million of PVP.
• All three markets—U.S. public finance, non-U.S. public finance, and global structured finance—achieved significant year-over-year increases in both GWP and PVP during the first nine months of 2026.
• Global structured finance doubled its GWP and PVP in the first nine months of 2026 compared to the prior year period.
• Management noted that the September 30 shareholders' equity per share was impacted by unrealized losses in the investment portfolio due largely to the rising interest rate environment.
• The Company achieved the highest per-share levels of adjusted operating shareholders' equity and adjusted book value in its history as of September 30, 2026.
• Future share repurchases will depend on factors including alternative uses for capital, regulatory capital position, rating agency capital considerations, availability of cash at the parent company, market conditions, and legal and regulatory requirements.

Business Segments and Product Lines:

• Financial Guaranty Segment:
  • U.S. public finance GWP increased to $87 million from $77 million in the prior year period; PVP increased to $93 million from $78 million. Significant contributors included infrastructure finance, transportation revenue, and municipal utility revenue transactions.
  • Non-U.S. public finance GWP increased to $21 million from a negative $13 million in the prior year period; PVP increased to $20 million from $5 million. Results were primarily attributable to an infrastructure finance transaction in France and a regulated energy transaction in Spain.
  • Global structured finance GWP increased to $19 million (U.S. $13 million, non-U.S. $6 million) from $11 million (U.S. $2 million, non-U.S. $9 million) in the prior year period. Results were primarily attributable to fund finance transactions, a commercial real estate balloon note guaranty transaction, and a non-U.S. consumer receivables auto lending facility transaction.
  • Net earned premiums and credit derivative revenues increased to $115 million from $99 million in the prior year period.
  • Scheduled net earned premiums and credit derivative revenues increased to $97 million from $93 million in the prior year period.
• Annuity Reinsurance Segment:
  • The segment consists of results from Assured Life Re, acquired on January 21, 2026.
  • Segment adjusted operating income was $1 million for the quarter.
  • Segment revenues were $16 million, driven by $10 million in net investment income and $5 million in fair value gains on derivatives.
  • The segment reinsures a block of PRT business with reserves of $459 million supported by a $569 million asset portfolio, and a block of MYGA business with a policyholder account value of $248 million.
• Asset Management Segment:
  • Adjusted operating income was $2 million for the quarter, compared to $3 million in the prior year period.
  • The segment includes the Company's ownership interest in Sound Point Capital Management, LP.
• Corporate Division:
  • Adjusted operating loss was $31 million for the quarter, compared to a loss of $24 million in the prior year period.
  • The division primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc.

Market and Competitive Landscape:

• The Company operates in U.S. and non-U.S. public finance, infrastructure, and structured finance markets.
• The Company holds $922 million in alternative investments as of September 30, 2026, with an inception-to-date annualized internal rate of return of 11.5%.
• The Company's investment portfolio had an overall pre-tax book yield of 5.00% as of September 30, 2026, compared to 4.80% as of September 30, 2025.
• The Company faces risks related to inflation, interest rates, credit spreads, foreign exchange rates, and general economic conditions.

Risks and Challenges:

• Unrealized losses in the investment portfolio due to the rising interest rate environment impacted shareholders' equity per share.
• Realized losses on investments were primarily due to credit losses on CLO subordinated notes and corporate securities in the quarter.
• The Company faces risks related to the expansion into annuity reinsurance and the integration of acquired businesses, including Assured Life Reinsurance Ltd.
• Risks include potential credit losses, liquidity claims, and the failure of risk mitigation strategies.
• Market volatility affects the fair value of assets and liabilities subject to mark-to-market, including investments, derivatives, committed capital securities, and consolidated variable interest entities.

Management Commentary and Tone:

• Dominic Frederico, President and CEO, stated that strong new business production in the first nine months of 2026 demonstrated the success of the current growth strategy.
• Management highlighted that all three markets achieved significant year-over-year increases in GWP and PVP.
• Management noted that the financial guaranty loss expense was just $1 million and net economic loss development was a benefit of $27 million.
• Management expressed confidence in achieving the highest per-share levels of adjusted operating shareholders' equity and adjusted book value in the company's history despite unrealized investment losses.

Other Key Points:

• Capital returned to shareholders in the third quarter of 2026 was $27 million, including share repurchases of $10 million and dividends of $17 million.

• Since the launch of its 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.

• As of November 4, 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, renaming it Assured Life Reinsurance Ltd. to expand into annuity reinsurance.

• The Company will host a conference call for investors on November 6, 2026, at 8:00 a.m. Eastern Time.

• The Company plans to post "Public Finance Transactions in 3Q 2026" and "Structured Finance Transactions at September 30, 2026" on its website.