0001273813-26-000011
SEC filingAssured Guaranty Ltd. reported strong financial results for fiscal year 2025, with total revenues of $1.11 billion and net income attributable to the company of $503 million. Key revenue drivers included net earned premiums of $380 million, net investment income of $359 million, and significant fair value gains across multiple categories totaling $239 million. The company generated $259 million in operating cash flow and maintained a robust balance sheet with total assets of $12.18 billion and shareholders' equity attributable to AGL of $5.66 billion. Adjusted operating income was $445 million for 2025, representing an increase from $389 million in 2024. The company returned capital to shareholders through $68 million in dividends and $500 million in share repurchases while maintaining strong liquidity with $388 million in cash.
Assured Guaranty Ltd. delivered solid financial performance in fiscal year 2025, reporting total revenues of $1.11 billion and net income attributable to the company of $503 million. The company achieved basic and diluted earnings per share of $10.00. Adjusted operating income, a non-GAAP measure, increased to $445 million from $389 million in 2024, primarily driven by gains related to the resolution of LBIE litigation, higher equity in earnings of investees, and gains from the sale of a commercially leased building. These positive factors were partially offset by higher loss expenses in public finance sectors, lower fair value gains on the trading portfolio, and lower earned premiums on refundings of financial guaranty insurance contracts.
Revenue composition showed diversification across multiple sources. Net earned premiums contributed $380 million, representing the core insurance business revenue. Net investment income added $359 million, reflecting the company's investment portfolio performance. Fair value gains were significant across several categories: $121 million on credit derivatives, $20 million on committed capital securities, $6 million on financial guaranty variable interest entities, $79 million on consolidated investment vehicles, and $13 million on trading securities. Additional revenue streams included foreign exchange gains of $96 million and other income of $76 million. The company reported net realized investment losses of $40 million.
Total expenses amounted to $550 million, consisting of loss and loss adjustment expenses of $56 million, interest expense of $89 million, amortization of deferred acquisition costs of $22 million, employee compensation and benefit expenses of $209 million, and other operating expenses of $174 million. Income before income taxes reached $662 million, which included $102 million in equity earnings from investees. The company recorded a total provision for income taxes of $119 million, comprising $124 million in current taxes and a $5 million deferred tax benefit. The net income margin (net income attributable to AGL divided by total revenues) was approximately 45.3%.
Operating activities generated $259 million in cash flow, supported by net income of $543 million adjusted for various non-cash items including equity in earnings of investees ($102 million), net amortization of premium on investments ($62 million), and changes in working capital components. Investing activities provided $641 million in cash, primarily from maturities and paydowns of fixed-maturity securities ($1.27 billion) and sales of available-for-sale securities ($624 million), partially offset by purchases of available-for-sale securities ($1.58 billion). Financing activities used $616 million, mainly for share repurchases ($500 million) and dividend payments ($68 million). The balance sheet remained strong with total assets of $12.18 billion, including $8.49 billion in total investments and $388 million in cash. Total liabilities were $6.39 billion, with long-term debt of $1.70 billion and unearned premium reserve of $3.62 billion. Shareholders' equity attributable to AGL was $5.66 billion, with retained earnings of $5.83 billion partially offset by accumulated other comprehensive loss of $168 million.
The company continues to focus on strategic priorities including participation in the life and annuity reinsurance business and asset management through its ownership interest in Sound Point. Management noted several risk factors including potential impacts from inflation, geopolitical events (Russia's invasion of Ukraine, Middle East conflict), and natural disasters (January 2025 Los Angeles wildfires). The company has reviewed its insurance and investment portfolios for exposures to these events and identified no material direct exposures to Ukraine, Russia, Venezuela, or the Middle East. The company's direct insurance exposure to Eastern Europe is limited to $198 million in net par outstanding to Poland, and exposure to South America is limited to $128 million in net par outstanding to Colombia and Chile, all rated investment grade.