Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15 (d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)—February 27, 2024

ASSURED GUARANTY LTD.

(Exact name of registrant as specified in its charter)


Bermuda	001-32141	98-0429991
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

30 Woodbourne Avenue

Hamilton HM 08 Bermuda

(Address of principal executive offices)

Registrant’s telephone number, including area code: (441) 279-5700

Not applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:		Trading Symbol(s)	Name of exchange on which registered
Common Shares	$0.01 par value per share	AGO	New York Stock Exchange
Assured Guaranty US Holdings Inc. 6.125% Senior Notes due 2028 (and the related guarantee of Registrant)		AGO/28	New York Stock Exchange
Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant)		AGO/31	New York Stock Exchange
Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant)		AGO/51	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02			Results of Operations and Financial Condition. On February 27, 2024 Assured Guaranty Ltd. issued a press release reporting its fourth quarter 2023 results and the availability of its December 31, 2023 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference herein.

Item 9.01			Financial Statements and Exhibits. (d) Exhibits

Exhibit Number			Description
99.1			Assured Guaranty Ltd. Press Release dated February 27, 2024 reporting fourth quarter 2023 results
99.2			December 31, 2023 Financial Supplement of Assured Guaranty Ltd.
104.1			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			Assured Guaranty Ltd.


			By:			/s/ BENJAMIN G. ROSENBLUM
						Name: Benjamin G. Rosenblum Title: Chief Financial Officer

DATE: February 27, 2024

Assured Guaranty Ltd. Reports Results for Fourth Quarter 2023 and Full Year 2023

Fourth Quarter 2023

•GAAP Highlights: Net income attributable to Assured Guaranty Ltd. (AGL) was $376 million, or $6.40 per share(1), for fourth quarter 2023. Shareholders’ equity attributable to AGL per share was $101.63 as of December 31, 2023.

•Non-GAAP Highlights: Adjusted operating income(2) was $338 million, or $5.75 per share, for fourth quarter 2023. Adjusted operating shareholders’ equity(2) per share and adjusted book value (ABV)(2) per share were $106.54 and $155.92, respectively, as of December 31, 2023.

•New Business: Gross written premiums (GWP) were $136 million for fourth quarter 2023. Present value of new business production (PVP)(2) was $155 million for fourth quarter 2023.

•Bermuda corporate income tax: The enactment of a new Bermuda corporate income tax resulted in the establishment of a deferred tax asset, and corresponding tax benefit to income, of $189 million.

•Return of Capital to Shareholders: Fourth quarter 2023 capital returned to shareholders was $126 million, consisting of the repurchase of 1.7 million shares for $109 million, and dividends of $17 million.

Full Year (FY) 2023

•GAAP Highlights: Net income attributable to AGL was $739 million, or $12.30 per share, for FY 2023.

•Non-GAAP Highlights: Adjusted operating income was $648 million, or $10.78 per share, for FY 2023.

•New Business: GWP were $357 million and PVP was $404 million for FY 2023.

•Sound Point and AHP Transactions(3): Gain on Sound Point and AHP transactions(3) of $222 million (pre-tax, net of transaction expenses).

•Return of Capital to Shareholders: FY 2023 capital returned to shareholders was $267 million, consisting of the repurchase of 3.2 million shares for $199 million, and dividends of $68 million.

Hamilton, Bermuda, February 27, 2024 -- Assured Guaranty Ltd. (NYSE: AGO) (AGL and, together with its consolidated entities, Assured Guaranty or the Company) announced today its financial results for the three-month period ended December 31, 2023 (fourth quarter 2023) and the year ended December 31, 2023 (FY 2023).

“Finishing with a strong fourth quarter, Assured Guaranty reported outstanding results for 2023,” said Dominic Frederico, President and CEO. “Our key per-share measures - GAAP shareholders’ equity, adjusted operating shareholders’ equity and adjusted book value - each ended the year at a record high. In terms of earnings, we produced more than six times 2022’s GAAP net income per share and more than two-and-a-half times that year’s adjusted operating income per share. Our share price rose by 20% during the year.

“2023 GWP and PVP were $357 million and $404 million, respectively. Our diversified production strategy continued to demonstrate its value, as global structured finance produced 73% more GWP and more than double the PVP it wrote in 2022, reaching its highest annual direct GWP and PVP amounts in a decade; non-U.S. public finance saw a 9% annual increase in GWP and a 22% increase in PVP; and while new issuance volume in the municipal bond market was relatively low, we led the industry in new-issue insured par sold with a 61% market share, and U.S. public finance continued to produce more than half of both annual GWP and PVP.

“During 2023, we completed our strategic transaction with Sound Point and a separate transaction involving other AssuredIM assets, which resulted in pre-tax gains for the year of $222 million, net of expenses. The transaction with Sound Point furthers our asset management strategy, as we now own approximately 30% of the combined entity.

(1) All per share information for net income and adjusted operating income is based on diluted shares.

(2) Please see “Explanation of Non-GAAP Financial Measures.”

(3) Sound Point Capital Management, LP and certain of its investment management affiliates (Sound Point) and Assured Healthcare Partners LLC (AHP) transactions closed in July 2023.

Additionally, in the fourth quarter, enactment of a new Bermuda tax law resulted in the establishment of a deferred tax asset, and corresponding benefit to income, of $189 million.”

Summary Financial Results

(in millions, except per share amounts)


	Quarter Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
GAAP (1)
Net income (loss) attributable to AGL	$	376	$	94	$	739	$	124
Net income (loss) attributable to AGL per diluted share	$	6.40	$	1.52	$	12.30	$	1.92
Weighted average diluted shares	58.3		61.0		59.6		63.9
Non-GAAP
Adjusted operating income (loss) (2)	$	338	$	14	$	648	$	267
Adjusted operating income per diluted share (2)	$	5.75	$	0.22	$	10.78	$	4.14
Weighted average diluted shares	58.3		61.0		59.6		63.9

Gain (loss) related to FG VIE and CIV consolidation(3) included in adjusted operating income	$	9	$	(13)	$	(21)	$	(6)
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income per share	$	0.15	$	(0.22)	$	(0.35)	$	(0.10)

Components of total adjusted operating income (loss)
Insurance segment	$	339	$	66	$	621	$	413
Asset Management segment	6		(3)		3		(6)
Corporate division	(16)		(36)		45		(134)
Other	9		(13)		(21)		(6)
Adjusted operating income (loss)	$	338	$	14	$	648	$	267


	As of
	December 31, 2023				December 31, 2022
	Amount		Per Share		Amount		Per Share

Shareholders’ equity attributable to AGL	$	5,713	$	101.63	$	5,064	$	85.80
Adjusted operating shareholders’ equity (2)	5,990		106.54		5,543		93.92
ABV (2)	8,765		155.92		8,379		141.98

Common Shares Outstanding	56.2				59.0

________________________________________________

(1) Generally accepted accounting principles in the United States of America.

(2) Please see “Explanation of Non-GAAP Financial Measures” at the end of this press release.

(3) The effect of consolidating financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs).

GAAP net income in fourth quarter 2023 increased compared with fourth quarter 2022 net income, primarily due to a $189 million benefit as a result of the establishment of a deferred tax asset related to a new Bermuda tax law, lower loss expense, as well as fair value gains on CIVs and trading securities. GAAP net income in FY 2023 also benefited from the significant gain associated with the Sound Point and AHP transactions, foreign exchange gains on remeasurement, fair value gains on credit derivatives and higher net investment income, partially offset by lower net earned premiums accelerations, and higher loss and loss adjustment expense (LAE).

The tax benefit in fourth quarter 2023 resulted from legislation enacted in December of 2023 implementing a corporate income tax in Bermuda beginning in 2025, which affects the Company’s Bermuda insurance subsidiaries. The new law allows an economic transition adjustment (ETA) equal to the difference between the fair market value and the carrying value of assets and liabilities of each of the Company’s Bermuda insurance subsidiaries as of September 30, 2023. The ETA resulted in the establishment of a deferred tax asset of $189 million that was reported as a tax benefit in fourth quarter 2023 GAAP net income and adjusted operating income. The deferred tax asset is expected to be utilized over 10 to 15 years, depending on the nature of each component of the deferred tax asset, beginning in 2025.

On a per share basis, shareholders’ equity attributable to AGL increased 18.4% during 2023 primarily due to net income and unrealized gains in the investment portfolio, partially offset by dividends. On a per share basis, adjusted operating shareholders’ equity increased 13.4% in 2023, and ABV increased 9.8%, primarily due to adjusted operating income, new business production, partially offset by loss development and dividends. See “Common Share Repurchases” on page 12.

Fourth Quarter 2023

Insurance Segment

The Insurance segment primarily consists of the Company’s insurance subsidiaries that provide credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets.

Insurance Segment Results

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Segment revenues
Net earned premiums and credit derivative revenues	$	86	$	111
Net investment income	97		80
Fair value gains (losses) on trading securities	32		(4)
Foreign exchange gains (losses) on remeasurement and other income (loss)	18		6
Total segment revenues	233		193

Segment expenses
Loss expense (benefit)	7		44
Amortization of deferred acquisition costs (DAC)	3		3
Employee compensation and benefit expenses	42		41
Other operating expenses	29		24
Total segment expenses	81		112
Equity in earnings (losses) of investees	22		(5)
Segment adjusted operating income (loss) before income taxes	174		76
Less: Provision (benefit) for income taxes	(165)		10
Segment adjusted operating income (loss)	$	339	$	66

Insurance segment adjusted operating income was $339 million in fourth quarter 2023, compared with $66 million in the three-month period ended December 31, 2022 (fourth quarter 2022). The increase was primarily due to the establishment of a deferred tax asset attributable to Bermuda tax law changes enacted in fourth quarter 2023, lower loss expense, and fair value gains on trading securities, partially offset by lower net earned premiums and credit

derivative revenues. The components of premiums, losses and income from the investment portfolio are presented below.

Insurance Segment Net Earned Premiums and Credit Derivative Revenues

Insurance Segment

Net Earned Premiums and Credit Derivative Revenues

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Scheduled net earned premiums and credit derivative revenues	$	83	$	77
Accelerations	3		34
Total	$	86	$	111

Insurance Segment Loss Expense (Benefit) and the Roll Forward of Expected Losses

Loss expense is a function of net economic loss development (benefit) and deferred premium revenue.

Insurance Segment

Loss Expense (Benefit)

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Public finance	$	7	$	58
U.S. residential mortgage-backed securities (RMBS)	(1)		(16)
Other structured finance	1		2
Total	$	7	$	44

The table below presents the roll forward of net expected losses for fourth quarter 2023.

Roll Forward of Net Expected Loss to be Paid (Recovered)(1)

(in millions)


	Net Expected Loss to be Paid (Recovered) as of September 30, 2023		Net Economic Loss Development (Benefit)		Net (Paid) Recovered Losses		Net Expected Loss to be Paid (Recovered) as of December 31, 2023

Public finance	$	408	$	19	$	(9)	$	418
U.S. RMBS	38		(4)		9		43
Other structured finance	44		2		(2)		44
Total	$	490	$	17	$	(2)	$	505

________________________________________________

(1) Net economic loss development (benefit) represents the change in net expected loss to be paid (recovered) attributable to the effects of changes in the economic performance of insured transactions, changes in assumptions based on observed market trends, changes in discount rates, accretion of discount and the economic effects of loss mitigation efforts, each net of reinsurance. Net economic loss development (benefit) is the principal measure that the Company uses to evaluate the loss experience in its insured portfolio. Expected loss to be paid (recovered) includes all transactions insured by the Company, regardless of the accounting model prescribed under GAAP and without consideration of deferred premium revenue.

The net economic loss development in fourth quarter 2023 of $17 million was mainly attributable to changes in discount rates across all sectors of $11 million.

Insurance Segment Income from Investment Portfolio

Insurance Segment

Income from Investment Portfolio

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Net investment income	$	97	$	80
Fair value gains (losses) on trading securities (1)	32		(4)
Equity in earnings (losses) of investees (2)	22		(5)
Total	$	151	$	71

________________________________________________

(1) Represents contingent value instruments issued by Puerto Rico that are classified as trading securities with changes in fair value reported in the consolidated statements of operations.

(2) Equity in earnings (losses) of investees primarily relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.

Net investment income, which represents interest income on available-for-sale fixed-maturity debt securities and short-term investments, increased to $97 million in fourth quarter 2023 from $80 million in fourth quarter 2022, primarily due to higher short-term interest rates, higher average balances in the short-term investment portfolio, and accelerated accretion on certain loss mitigation securities.

Insurance Segment New Business Production

Insurance Segment

New Business Production

(in millions)


	Quarter Ended December 31,
	2023						2022
	GWP		PVP (1)		Gross Par Written (1)		GWP		PVP (1)		Gross Par Written (1)

Public finance - U.S.	$	82	$	83	$	6,712	$	88	$	94	$	5,819
Public finance - non-U.S.	42		45		874		9		1		—
Structured finance - U.S.	11		26		785		33		40		971
Structured finance - non-U.S.	1		1		304		1		—		245
Total	$	136	$	155	$	8,675	$	131	$	135	$	7,035

________________________________________________

(1) PVP, a non-GAAP financial measure, measures the value of the Insurance segment’s new business production for all contracts regardless of form or GAAP accounting model. See “Explanation of Non-GAAP Financial Measures” at the end of this press release. PVP and Gross Par Written in the table above are based on “close date,” when the transaction settles. PVP was discounted at 4.0% and 2.5% in fourth quarter 2023 and fourth quarter 2022, respectively.

Total U.S. public finance GWP and PVP both declined in fourth quarter 2023 compared with fourth quarter 2022 primarily due to a decline in secondary market activity due to less market opportunity in 2023 compared with 2022. However, in the primary U.S. public finance market, GWP increased from $65 million in fourth quarter 2022 to $78 million in fourth quarter 2023, and PVP increased from $71 million in fourth quarter 2022 to $79 million in fourth quarter 2023. The insured U.S. municipal bond market penetration, based on par written, was 9.6% in fourth quarter 2023, compared with 8.7% in fourth quarter 2022.

Non-U.S. public finance GWP and PVP also increased in fourth quarter 2023 compared with fourth quarter 2022. New business closed in fourth quarter 2023 included guarantees of transactions in the airport, university housing, regulated utility and transportation sectors.

Structured finance GWP and PVP in fourth quarter 2023 was primarily attributable to insurance securitizations.

Business activity in the non-U.S. public finance and structured finance sectors often has long lead times and therefore may vary from period to period.

Asset Management Segment

Upon the effective date of the Sound Point and AHP transactions in July 2023, the Company participates in the asset management business through its ownership interest in Sound Point. Sound Point’s results are reported on a one quarter lag and included in “equity in earnings (losses) of investees” in the table below. The Company reported its first quarter of earnings from its interest in Sound Point in fourth quarter 2023.

Asset Management Segment Results

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Segment revenues	$	5	$	24
Segment expenses	3		28
Equity in earnings (losses) of investees	5		—
Segment adjusted operating income (loss) before income taxes	7		(4)
Less: Provision (benefit) for income taxes	1		(1)
Segment adjusted operating income (loss)	$	6	$	(3)

Corporate Division

Corporate Division Results

(in millions)


	Quarter Ended
	December 31,
	2023		2022
Revenues
Gain on sale of asset management subsidiaries	$	7	$	—
Other	5		1
Total revenues	12		1
Expenses
Interest expense	26		23
Employee compensation and benefit expenses	10		10
Other operating expenses	15		6
Total expenses	51		39
Adjusted operating income (loss) before income taxes	(39)		(38)
Less: Provision (benefit) for income taxes	(23)		(2)
Adjusted operating income (loss)	$	(16)	$	(36)

Corporate division adjusted operating loss primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc., as well as other operating expenses attributed to holding company activities.

In fourth quarter 2023, the Company reported a $7 million adjustment to the pre-tax gain on the Sound Point transaction and a $19 million tax benefit attributable to a change in New York State tax law.

Other (Effect of FG VIE and CIV consolidation)

The effect of consolidating FG VIEs and CIVs was a gain of $9 million in fourth quarter 2023 compared with a loss of $13 million in fourth quarter 2022.

Reconciliation to GAAP

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Reconciliation of Net Income (Loss) Attributable to AGL to

Adjusted Operating Income (Loss)

(in millions, except per share amounts)


	Quarter Ended
	December 31,
	2023				2022
	Total		Per Diluted Share		Total		Per Diluted Share
Net income (loss) attributable to AGL	$	376	$	6.40	$	94	$	1.52
Less pre-tax adjustments:
Realized gains (losses) on investments	6		0.11		(17)		(0.29)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	(3)		(0.06)		28		0.47
Fair value gains (losses) on committed capital securities (CCS)	—		—		12		0.19
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	42		0.71		70		1.13
Total pre-tax adjustments	45		0.76		93		1.50
Less tax effect on pre-tax adjustments	(7)		(0.11)		(13)		(0.20)
Adjusted operating income (loss)	$	338	$	5.75	$	14	$	0.22

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	9	$	0.15	$	(13)	$	(0.22)

Foreign exchange gains in both periods primarily relate to remeasurement of premiums receivable due to changes in the exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

Full Year 2023

Insurance Segment

Insurance Segment Results

(in millions)


	Year Ended
	December 31,
	2023		2022
Segment revenues
Net earned premiums and credit derivative revenues	$	357	$	508
Net investment income	370		278
Fair value gains (losses) on trading securities	74		(34)
Foreign exchange gains (losses) on remeasurement and other income (loss)	54		5
Total segment revenues	855		757

Segment expenses
Loss expense (benefit)	161		12
Interest expense	—		1
Amortization of DAC	13		14
Employee compensation and benefit expenses	154		148
Other operating expenses	107		84
Total segment expenses	435		259
Equity in earnings (losses) of investees	82		(51)
Segment adjusted operating income (loss) before income taxes	502		447
Less: Provision (benefit) for income taxes	(119)		34
Segment adjusted operating income (loss)	$	621	$	413

Insurance segment adjusted operating income for FY 2023 was $621 million, compared with $413 million for the year ended December 31, 2022 (FY 2022). The increase was primarily due to the establishment of a deferred tax asset attributable to changes in Bermuda tax laws enacted in fourth quarter 2023, and higher income from the investment portfolio, partially offset by lower net earned premiums and credit derivative revenues and higher loss expense. The components of premiums, losses and income from the investment portfolio are presented below.

Insurance Segment Net Earned Premiums and Credit Derivative Revenues

Insurance Segment

Net Earned Premiums and Credit Derivative Revenues

(in millions)


	Year Ended
	December 31,
	2023		2022
Scheduled net earned premiums and credit derivative revenues	$	327	$	327
Accelerations - Puerto Rico	1		133
Accelerations	29		48
Total	$	357	$	508

Net earned premiums and credit derivative revenues decreased in FY 2023 primarily due to accelerations in FY 2022 related to defaulted Puerto Rico exposures that were resolved in 2022.

Insurance Segment Loss Expense (Benefit) and the Roll Forward of Expected Losses

Insurance Segment

Loss Expense (Benefit)

(in millions)


	Year Ended
	December 31,
	2023		2022
Public finance	$	191	$	128
U.S. RMBS	(36)		(120)
Other structured finance	6		4
Total	$	161	$	12

Roll Forward of Net Expected Loss to be Paid (Recovered)

(in millions)


	Net Expected Loss to be Paid (Recovered) as of December 31, 2022		Economic Loss Development (Benefit)		Net (Paid) Recovered Losses		Net Expected Loss to be Paid (Recovered) as of December 31, 2023

Public finance	$	412	$	212	$	(206)	$	418
U.S. RMBS	66		(56)		33		43
Other structured finance	44		8		(8)		44
Total	$	522	$	164	$	(181)	$	505

Public finance economic loss development in FY 2023 was $212 million primarily attributable to the Company’s insured exposure to the Puerto Rico Electric Power Authority. The U.S. RMBS economic benefit of $56 million was primarily attributable to higher recoveries for secured second lien charged-off loans and improved performance of certain transactions, partially offset by loss development related to the return of certain previously received funds. The economic development attributable to changes in discount rates across all sectors was a loss of $3 million in FY 2023.

Insurance Segment Income from Investment Portfolio

Insurance Segment

Income from Investment Portfolio

(in millions)


	Year Ended
	December 31,
	2023		2022
Net investment income	$	370	$	278
Fair value gains (losses) on trading securities	74		(34)
Equity in earnings (losses) of investees (1)	82		(51)
Total	$	526	$	193

________________________________________________

(1) Equity in earnings (losses) of investees relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.

Net investment income, which represents interest income on available-for-sale fixed-maturity debt securities and short-term investments, increased to $370 million in FY 2023 from $278 million in FY 2022, primarily due to higher short-term interest rates, higher average balances in the short-term portfolio, and accelerated accretion on certain loss mitigation securities.

As of December 31, 2023, the Insurance segment had $729 million in alternative investments, which had an annualized internal rate of return of approximately 13.8% for FY 2023.

In the Insurance segment, alternative investments consist primarily of funds managed by Sound Point, AHP and other managers, and are generally recorded at net asset value (NAV), with changes in NAV reported in “equity in earnings (losses) of investees.” Equity in earnings of investees is more volatile than net investment income on available-for-sale fixed-maturity securities and short-term investments. To the extent that the amounts invested in alternative fund investments increase and available-for-sale fixed-maturity securities decrease, net investment income may decline and mark-to-market volatility related to equity in earnings of investees may increase.

Insurance Segment New Business Production

Insurance Segment

New Business Production

(in millions)


	Year Ended December 31,
	2023						2022
	GWP		PVP (1)		Gross Par Written		GWP		PVP (1)		Gross Par Written

Public finance - U.S.	$	211	$	212	$	22,464	$	248	$	257	$	19,801
Public finance - non-U.S.	82		83		1,544		75		68		624
Structured finance - U.S.	59		68		1,886		37		43		1,077
Structured finance - non-U.S.	5		41		3,066		—		7		545
Total	$	357	$	404	$	28,960	$	360	$	375	$	22,047

________________________________________________

(1) PVP was discounted at 4.0% and 2.5% in 2023 and 2022, respectively.

Total U.S. public finance GWP and PVP both declined in 2023 compared with 2022 primarily due to a decline in secondary market GWP and PVP of $71 million due to less market opportunity, offset in part by an increase in assumed GWP and PVP of $47 million and $46 million, respectively. Insured U.S. municipal bond market penetration, based on par written, was 8.8% in FY 2023 compared with 8.0% in FY 2022. In FY 2023, the Company insured 61% of the insured par of new issuances sold, compared with 59% in FY 2022.

Non-U.S. public finance GWP and PVP increased in FY 2023 compared with FY 2022. In FY 2023, non-U.S. public finance GWP and PVP included guarantees of transactions in the airport, university housing, regulated utility and transportation sector, as well as guarantees of local authority and social housing transactions.

Structured finance GWP and PVP increased in FY 2023 compared with FY 2022. FY 2023 structured finance GWP and PVP included several insurance securitizations and subscription finance facility transactions. Structured finance PVP in FY 2023 also included a large specialty business guaranty.

Asset Management Segment

Results in the table below represent (i) revenues (asset management and performance fees), amortization of intangible assets and compensation and other operating expenses of AssuredIM for FY 2022 and the first half of 2023, prior to the Sound Point and AHP transactions, as well as (ii) equity in earnings of Sound Point for the third quarter of 2023 (Sound Point results are reported on a one quarter lag), net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point and (iii) other asset management related income.

Asset Management Segment Results

(in millions)


	Year Ended
	December 31,
	2023		2022
Segment revenues	$	76	$	112
Segment expenses	78		119
Equity in earnings (losses) of investees	5		—
Segment adjusted operating income (loss) before income taxes	3		(7)
Less: Provision (benefit) for income taxes	—		(1)
Segment adjusted operating income (loss)	$	3	$	(6)

Corporate Division

Corporate Division Results

(in millions)


	Year Ended
	December 31,
	2023		2022
Revenues
Gain on sale of asset management subsidiaries	$	262	$	—
Other	13		4
Total revenues	275		4
Expenses
Interest expense	99		89
Employee compensation and benefit expenses	38		30
Other operating expenses	79		24
Total expenses	216		143
Adjusted operating income (loss) before income taxes	59		(139)
Less: Provision (benefit) for income taxes	14		(5)
Adjusted operating income (loss)	$	45	$	(134)

Corporate division adjusted operating income in FY 2023 includes a pre-tax gain resulting from the Sound Point and AHP transactions of $222 million, which is net of $40 million in transaction costs (primarily advisory and legal expenses reported in other operating expenses).

Other operating expenses in FY 2023 also include higher charges for value added taxes compared with FY 2022. The increase in interest expense in FY 2023 compared with FY 2022 is primarily due to interest expense on newly issued 6.125% Senior Notes in August 2023, whose proceeds were used to redeem 5% Senior Notes at the end of September 2023. FY 2023 also includes a $19 million tax benefit attributable to a change in New York State tax law.

Other (Effect of FG VIE and CIV consolidation)

The effect of consolidating FG VIEs and CIVs was a loss of $21 million in FY 2023 compared with a loss of $6 million in FY 2022. Upon closing of the Sound Point and AHP transactions, the Company was no longer the primary beneficiary of all the collateralized loan obligations (CLOs), CLO warehouses and an AHP managed fund. As a result, the Company deconsolidated these vehicles under GAAP, resulting in a $16 million loss in FY 2023.

Reconciliation to GAAP

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Reconciliation of Net Income (Loss) Attributable to AGL to

Adjusted Operating Income (Loss)

(in millions, except per share amounts)


	Year Ended
	December 31,
	2023				2022
	Total		Per Diluted Share		Total		Per Diluted Share
Net income (loss) attributable to AGL	$	739	$	12.30	$	124	$	1.92
Less pre-tax adjustments:
Realized gains (losses) on investments	(14)		(0.23)		(56)		(0.87)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	106		1.75		(18)		(0.27)
Fair value gains (losses) on CCS	(35)		(0.57)		24		0.37
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	51		0.84		(110)		(1.72)
Total pre-tax adjustments	108		1.79		(160)		(2.49)
Less tax effect on pre-tax adjustments	(17)		(0.27)		17		0.27
Adjusted operating income (loss)	$	648	$	10.78	$	267	$	4.14

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	(21)	$	(0.35)	$	(6)	$	(0.10)

Realized losses on investments in FY 2023 and FY 2022 primarily relate to credit impairment on loss mitigation securities, and sales of securities received as part of the resolution for defaulted Puerto Rico exposures in 2022.

Non-credit impairment-related unrealized fair value gains in FY 2023 were generated primarily as a result of generally lower collateral asset spreads. Non-credit impairment-related unrealized fair value losses on credit derivatives in FY 2022 were generated primarily as a result of wider asset spreads, partially offset by the increased cost to buy protection on AGL’s indirect subsidiary, Assured Guaranty Corp., and changes in discount rates.

Fair value losses on CCS in FY 2023 were primarily due to a tightening in market spreads. Fair value gains on CCS in FY 2022 were primarily driven by an increase in London Interbank Offered Rate during 2022.

Foreign exchange gains (losses) in FY 2023 and FY 2022 primarily relate to remeasurement of premiums receivable and are mainly due to changes in exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

Common Share Repurchases

From the beginning of the repurchase program in 2013 through February 27, 2024, the Company repurchased a total of 145 million common shares at an average price of $34.03, representing approximately 75% of the total shares outstanding. As of February 27, 2024, the Company was authorized to purchase $228 million of its common shares. These repurchases can be made from time to time in the open market or in privately negotiated transactions.

Summary of Share Repurchases

(in millions, except per share amounts)


	Amount		Number of Shares	Average Price Per Share

2023 (January 1 - March 31)	$	2	0.04	$	62.23
2023 (April 1 - June 30)	24		0.45	53.08
2023 (July 1 - September 30)	64		1.07	59.67
2023 (October 1 - December 31)	109		1.66	65.83
Total 2023	$	199	3.22	61.95

2024 (January 1 - February 27)	$	76	0.95	$	79.98

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board of Directors at any time. It does not have an expiration date.

Financial Statements

Consolidated Statements of Operations (unaudited)

(in millions)


	Quarter Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
Revenues
Net earned premiums (1)	$	83	$	109	$	344	$	494
Net investment income	95		78		365		269
Asset management fees	—		22		53		93
Net realized investment gains (losses)	6		(17)		(14)		(56)
Fair value gains (losses) on credit derivatives	(1)		31		114		(11)
Fair value gains (losses) on CCS	—		12		(35)		24
Fair value gains (losses) on FG VIEs	10		(5)		8		22
Fair value gains (losses) on CIVs	28		(8)		88		17
Foreign exchange gains (losses) on remeasurement	44		69		53		(112)
Fair value gains (losses) on trading securities	32		(4)		74		(34)
Gain on sale of asset management subsidiaries	7		—		262		—
Other income (loss)	23		5		61		17
Total revenues	327		292		1,373		723
Expenses
Loss and LAE (benefit)	3		45		162		16
Interest expense	23		21		90		81
Amortization of DAC	3		3		13		14
Employee compensation and benefit expenses	52		69		251		258
Other operating expenses	47		47		217		167
Total expenses	128		185		733		536
Income (loss) before income taxes and equity in earnings (losses) of investees	199		107		640		187
Equity in earnings (losses) of investees	3		(8)		28		(39)
Income (loss) before income taxes	202		99		668		148
Less: Provision (benefit) for income taxes	(177)		17		(93)		11
Net income (loss)	379		82		761		137
Less: Noncontrolling interests	3		(12)		22		13
Net income (loss) attributable to AGL	$	376	$	94	$	739	$	124

________________________________________________

(1) FY 2023 net earned premiums were lower than FY 2022 net earned premiums primarily due to lower premium accelerations, which were $30 million in FY 2023 compared with $181 million in FY 2022. FY 2022 premium accelerations include $133 million related to defaulted Puerto Rico exposures that were resolved in 2022.

Consolidated Balance Sheets (unaudited)

(in millions)


	As of
	December 31, 2023		December 31, 2022
Assets
Investments:
Fixed-maturity securities, available-for-sale, at fair value	$	6,307	$	7,119
Fixed-maturity securities, trading, at fair value	318		303
Short-term investments, at fair value	1,661		810
Other invested assets	829		133
Total investments	9,115		8,365
Cash	97		107
Premiums receivable, net of commissions payable	1,468		1,298
DAC	161		147
Salvage and subrogation recoverable	298		257
FG VIEs’ assets	328		416
Assets of CIVs	366		5,493
Goodwill and other intangible assets	6		163
Other assets	700		597
Total assets	$	12,539	$	16,843

Liabilities
Unearned premium reserve	$	3,658	$	3,620
Loss and LAE reserve	376		296
Long-term debt	1,694		1,675
Credit derivative liabilities, at fair value	53		163
FG VIEs’ liabilities, at fair value	554		715
Liabilities of CIVs	4		4,625
Other liabilities	435		457
Total liabilities	6,774		11,551

Shareholders’ equity
Common shares	1		1
Retained earnings	6,070		5,577
Accumulated other comprehensive income (loss)	(359)		(515)
Deferred equity compensation	1		1
Total shareholders’ equity attributable to AGL	5,713		5,064
Nonredeemable noncontrolling interests	52		228
Total shareholders’ equity	5,765		5,292
Total liabilities and shareholders’ equity	$	12,539	$	16,843

Explanation of Non-GAAP Financial Measures

The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.

The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include:

•FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and

•CIVs in which certain subsidiaries invest.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.

Management of the Company and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (1) adjusted operating income, further adjusted to remove the effect of FG VIE and CIV consolidation; (2) adjusted operating shareholders’ equity, further adjusted to remove the effect of FG VIE and CIV consolidation; (3) adjusted book value per share, further adjusted to remove the effect of FG VIE and CIV consolidation; and (4) PVP.

Management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or adjusted book value, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares. Management also believes that many of the Company’s fixed income investors also use adjusted operating shareholders’ equity, further adjusted to remove the effect of FG VIE and CIV consolidation, to evaluate the Company’s capital adequacy.

Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.

The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented below.

Adjusted Operating Income

Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

1) Elimination of realized gains (losses) on the Company’s investments, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.

2) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.

3) Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

4) Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

5) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

See “Reconciliation to GAAP” above for a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Adjusted Operating Shareholders’ Equity and Adjusted Book Value

Management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:

1) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

2) Elimination of fair value gains (losses) on the Company’s CCS. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

3) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not recognize an economic gain or loss.

4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Management uses adjusted book value, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. Adjusted book value per share, further adjusted for FG VIE and CIV consolidation (core adjusted book value), is one of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors. Management believes that adjusted book value is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses. Adjusted book value is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:

1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2) Addition of the net present value of estimated net future revenue. See below.

3) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed, which are not reflected in GAAP equity.

4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

The unearned premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.

Reconciliation of Shareholders’ Equity Attributable to AGL to

Adjusted Operating Shareholders’ Equity and ABV

(in millions, except per share amounts)


	As of
	December 31, 2023				December 31, 2022
	Total		Per Share		Total		Per Share
Shareholders’ equity attributable to AGL	$	5,713	$	101.63	$	5,064	$	85.80
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	34		0.61		(71)		(1.21)
Fair value gains (losses) on CCS	13		0.22		47		0.80
Unrealized gain (loss) on investment portfolio	(361)		(6.40)		(523)		(8.86)
Less taxes	37		0.66		68		1.15
Adjusted operating shareholders’ equity	5,990		106.54		5,543		93.92
Pre-tax adjustments:
Less: DAC	161		2.87		147		2.48
Plus: Net present value of estimated net future revenue	199		3.54		157		2.66
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed	3,436		61.12		3,428		58.10
Plus taxes	(699)		(12.41)		(602)		(10.22)
ABV	$	8,765	$	155.92	$	8,379	$	141.98

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity	$	5	$	0.07	$	17	$	0.28
ABV	—		—		11		0.19

Shares outstanding at the end of the period	56.2				59.0

Net Present Value of Estimated Net Future Revenue

Management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.

PVP or Present Value of New Business Production

Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the

Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.

Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.

Reconciliation of GWP to PVP

(in millions)


	Quarter Ended December 31, 2023
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	82	$	42	$	11	$	1	$	136
Less: Installment GWP and other GAAP adjustments (1)	54		37		11		1		103
Upfront GWP	28		5		—		—		33
Plus: Installment premiums and other (2)	55		40		26		1		122
PVP	$	83	$	45	$	26	$	1	$	155


	Quarter Ended December 31, 2022
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	88	$	9	$	33	$	1	$	131
Less: Installment GWP and other GAAP adjustments(1)	40		9		29		1		79
Upfront GWP	48		—		4		—		52
Plus: Installment premiums and other (2)	46		1		36		—		83
PVP	$	94	$	1	$	40	$	—	$	135


	Year Ended December 31, 2023
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	211	$	82	$	59	$	5	$	357
Less: Installment GWP and other GAAP adjustments(1)	109		74		59		5		247
Upfront GWP	102		8		—		—		110
Plus: Installment premiums and other (2)	110		75		68		41		294
PVP	$	212	$	83	$	68	$	41	$	404


	Year Ended December 31, 2022
	Public Finance				Structured Finance
	U.S.		Non-U.S.		U.S.		Non-U.S.		Total
GWP	$	248	$	75	$	37	$	—	$	360
Less: Installment GWP and other GAAP adjustments(1)	40		75		30		—		145
Upfront GWP	208		—		7		—		215
Plus: Installment premiums and other (2)	49		68		36		7		160
PVP	$	257	$	68	$	43	$	7	$	375

________________________________

(1) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

(2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

Conference Call and Webcast Information

The Company will host a conference call for investors at 8:00 a.m. Eastern Time (9:00 a.m. Atlantic Time) on Wednesday, February 28, 2024. The conference call will be available via live webcast in the Investor Information section of the Company’s website at AssuredGuaranty.com or by dialing 1-833-470-1428 (in the U.S.) or 1-404-975-4839 (International); the access code is 091734.

A replay of the conference call will be available approximately three hours after the call ends. The webcast replay will be available for 90 days in the Investor Information section of the Company’s website at AssuredGuaranty.com and the telephone replay will be available for 30 days by dialing 1-866-813-9403 (in the U.S.) or 1-929-458-6194 (International); the access code is 340952.

Please refer to Assured Guaranty’s December 31, 2023 Financial Supplement, which is posted on the Company's website at assuredguaranty.com/agldata, for more information on the Company’s financial guaranty portfolio, investment portfolio and other items. In addition, the Company is posting at assuredguaranty.com/presentations its “December 31, 2023 Equity Investor Presentation.”

The Company plans to post by early next week on its website at assuredguaranty.com/agldata the following:

•“Public Finance Transactions in 4Q 2023,” which lists the U.S. public finance new issues insured by the Company in fourth quarter 2023, and

•“Structured Finance Transactions at December 31, 2023,” which lists the Company’s structured finance exposure as of that date.

In addition, the Company will post on its website, when available, the Company’s separate-company subsidiary financial supplements and its “Fixed Income Presentation” for the current quarter. Those documents will be furnished to the Securities and Exchange Commission in a Current Report on Form 8-K.

# # #

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. Assured Guaranty also participates in the asset management business through its ownership interest in Sound Point. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements

Any forward-looking statements made in this press release reflect the Company’s current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among factors that could cause actual results to differ adversely are: (1) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; (2) geopolitical risk, including Russia’s invasion of Ukraine and risk of intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East, confrontation over Iran’s nuclear program, United States (U.S.) – China strategic competition and pursuit of technological independence; (3) global terrorism risk with threats increasing from conflicts in the Middle East and Ukraine/Russia, and the polarized political environment of the 2024 U.S. presidential election; (4) the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets; (5) the possibility of a U.S government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (6) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (7) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S., that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (8) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (9) the possibility that budget or pension shortfalls or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (10) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including as a result of the final resolution of Assured Guaranty’s Puerto Rico Electric Power Authority exposure or the amounts recovered on securities received in connection with the resolution of Puerto Rico exposures already resolved; (11) the impact of the Company satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (12) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (13) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (14) the impacts of Assured Guaranty’s transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP) on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies, employees and the obligors it insures and on the asset management business contributed to Sound Point, LP and on the business of AHP and their relationships with their respective clients and employees; (15) the possibility that strategic transactions made by Assured Guaranty, including the consummation of the transactions with Sound Point and/or AHP, do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (16) the inability to control the business, management or policies of entities in which the Company holds a minority interest; (17) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities, its consolidated investment vehicles and certain consolidated variable interest entities (VIEs); (18) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; (19) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (20) changes in applicable accounting policies or practices; (21) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (22) difficulties with the execution of Assured Guaranty’s business strategy; (23) loss of key personnel; (24) the effects of mergers,

acquisitions and divestitures; (25) natural or man-made catastrophes; (26) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (27) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (28) other risks and uncertainties that have not been identified at this time; and (29) management’s response to these factors. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of February 27, 2024, and Assured Guaranty undertakes no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contact Information

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

212-339-0861

rtucker@agltd.com

Ashweeta Durani

Vice President, Media Relations

212-408-6042

adurani@agltd.com

Assured Guaranty Ltd.

December 31, 2023

Financial Supplement


Table of Contents		Page
	Selected Financial Highlights	1
	Condensed Consolidated Statements of Operations (unaudited)	3
	Condensed Consolidated Balance Sheets (unaudited)	4
	Selected Financial Highlights GAAP to Non-GAAP Reconciliations	5
	Income Components	8
	Fixed-Maturity Securities, Short-Term Investments and Cash	12
	Investment Portfolio, Cash and CIVs	13
	Income from Investment Portfolio and CIVs	15
	Insurance Segment:	17
	Insurance Segment Results	18
	Claims-Paying Resources	19
	New Business Production	20
	Gross Par Written	21
	New Business Production by Quarter	23
	Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues	24
	Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid	25
	Loss Measures	26
	Net Expected Loss to be Expensed	27
	Financial Guaranty Profile	28
	Specialty Business	31
	Expected Amortization of Net Par Outstanding	32
	Exposure to Puerto Rico	33
	U.S. RMBS Profile	35
	Direct Pooled Corporate Obligations Profile	36
	Below Investment Grade Exposures	37
	Largest Exposures by Sector	40
	Asset Management Segment	43
	Asset Management Results	44
	Corporate Division	45
	Corporate Results	46
	Other	47
	Other Results	48
	Summary	50
	Summary of Financial and Statistical Data	51
	Summary of GAAP to Non-GAAP Reconciliations	52
	Glossary	54
	Non-GAAP Financial Measures	57

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023.

Cautionary Statement Regarding Forward Looking Statements:

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (1) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; (2) geopolitical risk, including Russia’s invasion of Ukraine and risk of intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East, confrontation over Iran’s nuclear program, United States (U.S.) – China strategic competition and pursuit of technological independence; (3) global terrorism risk with threats increasing from conflicts in the Middle East and Ukraine/Russia, and the polarized political environment of the 2024 U.S. presidential election; (4) the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets; (5) the possibility of a U.S government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (6) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (7) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S., that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (8) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (9) the possibility that budget or pension shortfalls or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (10) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including as a result of the final resolution of Assured Guaranty’s Puerto Rico Electric Power Authority exposure or the amounts recovered on securities received in connection with the resolution of Puerto Rico exposures already resolved; (11) the impact of the Company satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (12) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (13) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (14) the impacts of Assured Guaranty’s transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP) on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies, employees and the obligors it insures and on the asset management business contributed to Sound Point, LP and on the business of AHP and their relationships with their respective clients and employees; (15) the possibility that strategic transactions made by Assured Guaranty, including the consummation of the transactions with Sound Point and/or AHP, do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (16) the inability to control the business, management or policies of entities in which the Company holds a minority interest; (17) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities, its consolidated investment vehicles and certain consolidated variable interest entities (VIEs); (18) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; (19) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (20) changes in applicable accounting policies or practices; (21) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (22) difficulties with the execution of Assured Guaranty’s business strategy; (23) loss of key personnel; (24) the effects of mergers, acquisitions and divestitures; (25) natural or man-made catastrophes; (26) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (27) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (28) other risks and uncertainties that have not been identified at this time; and (29) management’s response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Assured Guaranty Ltd.

Selected Financial Highlights (1 of 2)

(dollars in millions, except per share amounts)


	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2022			2023			2022
GAAP (1) Highlights
Net income (loss) attributable to AGL	$	376		$	94		$	739		$	124
Net income (loss) attributable to AGL per diluted share	$	6.40		$	1.52		$	12.30		$	1.92
Weighted average shares outstanding
Basic shares outstanding	57.0			59.8			58.4			62.9
Diluted shares outstanding	58.3			61.0			59.6			63.9
Effective tax rate on net income	(87.9)		%	16.8		%	(13.9)		%	7.2		%
GAAP return on equity (ROE) (4)	27.5		%	7.5		%	13.7		%	2.2		%

Non-GAAP Highlights (2)
Adjusted operating income (loss)	$	338		$	14		$	648		$	267
Adjusted operating income (loss) per diluted share	$	5.75		$	0.22		$	10.78		$	4.14
Weighted average diluted shares outstanding	58.3			61.0			59.6			63.9
Effective tax rate on adjusted operating income (3)	(117.0)		%	61.4		%	(19.6)		%	9.2		%
Adjusted operating ROE (4)	23.1		%	1.0		%	11.2		%	4.6		%

Components of adjusted operating income (loss) (2)
Insurance segment	$	339		$	66		$	621		$	413
Asset Management segment	6			(3)			3			(6)
Corporate division	(16)			(36)			45			(134)
Other (6)	9			(13)			(21)			(6)
Adjusted operating income (loss)	$	338		$	14		$	648		$	267

Insurance Segment
Gross written premiums (GWP)	$	136		$	131		$	357		$	360
Present value of new business production (PVP) (2)	155			135			404			375
Gross par written	8,675			7,035			28,960			22,047


Effect of refundings and terminations on GAAP measures:
Net earned premiums, pre-tax	$	3		$	34		$	29		$	179
Fair value gains (losses) of credit derivatives, pre-tax	—			—			1			2
Net income effect	2			27			23			142
Net income per diluted share	0.04			0.44			0.39			2.23

Effect of refundings and terminations on non-GAAP measures:
Operating net earned premiums and credit derivative revenues (5), pre-tax	$	3		$	34		$	30		$	181
Adjusted operating income (5) effect	2			27			23			142
Adjusted operating income per diluted share (5)	0.04			0.44			0.39			2.23

1) Accounting principles generally accepted in the United States of America (GAAP).

2) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

3) Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.

4) Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.

5) Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums and credit derivative revenues) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

6) Represents the effect of consolidating financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs) (FG VIE and CIV consolidation).

Assured Guaranty Ltd.

Selected Financial Highlights (2 of 2)

(dollars in millions, except per share amounts)


	As of
	December 31, 2023				December 31, 2022
	Amount		Per Share		Amount		Per Share
Shareholders’ equity attributable to AGL	$	5,713	$	101.63	$	5,064	$	85.80
Adjusted operating shareholders’ equity (1)	5,990		106.54		5,543		93.92
Adjusted book value (1)	8,765		155.92		8,379		141.98
Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity	5		0.07		17		0.28
Adjusted book value	—		—		11		0.19

Shares outstanding at the end of period	56.2				59.0

Exposure
Financial guaranty net debt service outstanding	$	397,636			$	369,951
Financial guaranty net par outstanding:
Investment grade	$	243,716			$	227,366
Below-investment-grade (BIG)	5,437				5,892
Total	249,153				233,258

Claims-paying resources (2)	$	10,665			$	10,818

AUM	$	—			$	17,464

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2) See page 19 for additional detail on claims-paying resources.

Assured Guaranty Ltd.

Condensed Consolidated Statements of Operations (unaudited)

(dollars in millions, except per share amounts)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
Revenues
Net earned premiums	$	83	$	109	$	344	$	494
Net investment income	95		78		365		269
Asset management fees	—		22		53		93
Net realized investment gains (losses)	6		(17)		(14)		(56)
Fair value gains (losses) on credit derivatives	(1)		31		114		(11)
Fair value gains (losses) on committed capital securities (CCS)	—		12		(35)		24
Fair value gains (losses) on FG VIEs	10		(5)		8		22
Fair value gains (losses) on CIVs	28		(8)		88		17
Foreign exchange gains (losses) on remeasurement	44		69		53		(112)
Fair value gains (losses) on trading securities	32		(4)		74		(34)
Gain on sale of asset management subsidiaries	7		—		262		—
Other income (loss)	23		5		61		17
Total revenues	327		292		1,373		723
Expenses
Loss and loss adjustment expense (LAE) (benefit)	3		45		162		16
Interest expense	23		21		90		81
Amortization of deferred acquisition costs (DAC)	3		3		13		14
Employee compensation and benefit expenses	52		69		251		258
Other operating expenses	47		47		217		167
Total expenses	128		185		733		536
Income (loss) before income taxes and equity in earnings (losses) of investees	199		107		640		187
Equity in earnings (losses) of investees	3		(8)		28		(39)
Income (loss) before income taxes	202		99		668		148
Less: Provision (benefit) for income taxes	(177)		17		(93)		11
Net income (loss)	379		82		761		137
Less: Noncontrolling interests	3		(12)		22		13
Net income (loss) attributable to AGL	$	376	$	94	$	739	$	124

Earnings per share:
Basic	$	6.54	$	1.55	$	12.54	$	1.95
Diluted	$	6.40	$	1.52	$	12.30	$	1.92

Assured Guaranty Ltd.

Condensed Consolidated Balance Sheets (unaudited)

(dollars in millions)


	As of
	December 31,		December 31,
	2023		2022
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value	$	6,307	$	7,119
Fixed-maturity securities, trading, at fair value	318		303
Short-term investments, at fair value	1,661		810
Other invested assets	829		133
Total investments	9,115		8,365
Cash	97		107
Premiums receivable, net of commissions payable	1,468		1,298
DAC	161		147
Salvage and subrogation recoverable	298		257
FG VIEs’ assets	328		416
Assets of CIVs	366		5,493
Goodwill and other intangible assets	6		163
Other assets	700		597
Total assets	$	12,539	$	16,843

Liabilities
Unearned premium reserve	$	3,658	$	3,620
Loss and LAE reserve	376		296
Long-term debt	1,694		1,675
Credit derivative liabilities, at fair value	53		163
FG VIEs’ liabilities, at fair value	554		715
Liabilities of CIVs	4		4,625
Other liabilities	435		457
Total liabilities	6,774		11,551

Shareholders’ equity
Common shares	1		1
Retained earnings	6,070		5,577
Accumulated other comprehensive income (loss)	(359)		(515)
Deferred equity compensation	1		1
Total shareholders’ equity attributable to AGL	5,713		5,064
Nonredeemable noncontrolling interests	52		228
Total shareholders’ equity	5,765		5,292
Total liabilities and shareholders’ equity	$	12,539	$	16,843

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (1 of 3)

(dollars in millions, except per share amounts)


Adjusted Operating Income Reconciliation	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022

Net income (loss) attributable to AGL	$	376	$	94	$	739	$	124
Less pre-tax adjustments:
Realized gains (losses) on investments	6		(17)		(14)		(56)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	(3)		28		106		(18)
Fair value gains (losses) on CCS	—		12		(35)		24
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	42		70		51		(110)
Total pre-tax adjustments	45		93		108		(160)
Less tax effect on pre-tax adjustments	(7)		(13)		(17)		17
Adjusted operating income (loss)	$	338	$	14	$	648	$	267

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	9	$	(13)	$	(21)	$	(6)

Components of adjusted operating income:
Segments:
Insurance	$	339	$	66	$	621	$	413
Asset Management	6		(3)		3		(6)
Total segments	345		63		624		407
Corporate division	(16)		(36)		45		(134)
Other	9		(13)		(21)		(6)
Adjusted operating income (loss)	$	338	$	14	$	648	$	267


Per diluted share:
Net income (loss) attributable to AGL	$	6.40	$	1.52	$	12.30	$	1.92
Less pre-tax adjustments:
Realized gains (losses) on investments	0.11		(0.29)		(0.23)		(0.87)
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	(0.06)		0.47		1.75		(0.27)
Fair value gains (losses) on CCS	—		0.19		(0.57)		0.37
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	0.71		1.13		0.84		(1.72)
Total pre-tax adjustments	0.76		1.50		1.79		(2.49)
Less tax effect on pre-tax adjustments	(0.11)		(0.20)		(0.27)		0.27
Adjusted operating income (loss)	$	5.75	$	0.22	$	10.78	$	4.14

Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income	$	0.15	$	(0.22)	$	(0.35)	$	(0.10)

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (2 of 3)

(dollars in millions)


ROE Reconciliation and Calculation
	December 31,		September 30,			December 31,			September 30,			December 31,
	2023		2023			2022			2022			2021
Shareholders’ equity attributable to AGL	$	5,713	$	5,252		$	5,064		$	4,929		$	6,292
Adjusted operating shareholders’ equity	5,990		5,735			5,543			5,575			5,991
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders’ equity	5		4			17			27			32

			Three Months Ended						Year Ended
			December 31,						December 31,
			2023			2022			2023			2022
Net income (loss) attributable to AGL			$	376		$	94		$	739		$	124
Adjusted operating income (loss)			338			14			648			267

Average shareholders’ equity attributable to AGL			$	5,483		$	4,997		$	5,389		$	5,678
Average adjusted operating shareholders’ equity			5,863			5,559			5,767			5,767
Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity			5			22			11			25

GAAP ROE (1)			27.5		%	7.5		%	13.7		%	2.2		%
Adjusted operating ROE (1)			23.1		%	1.0		%	11.2		%	4.6		%

1) Quarterly ROE calculations represent annualized returns.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (3 of 3)

(dollars in millions)


	As of
	December 31,		September 30,		December 31,		September 30,		December 31,
	2023		2023		2022		2022		2021
Reconciliation of shareholders’ equity attributable to AGL to adjusted book value:
Shareholders’ equity attributable to AGL	$	5,713	$	5,252	$	5,064	$	4,929	$	6,292
Less pre-tax reconciling items:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	34		38		(71)		(101)		(54)
Fair value gains (losses) on CCS	13		12		47		35		23
Unrealized gain (loss) on investment portfolio	(361)		(609)		(523)		(672)		404
Less taxes	37		76		68		92		(72)
Adjusted operating shareholders’ equity	5,990		5,735		5,543		5,575		5,991
Pre-tax reconciling items:
Less: Deferred acquisition costs	161		158		147		142		131
Plus: Net present value of estimated net future revenue	199		190		157		159		160
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed	3,436		3,404		3,428		3,373		3,402
Plus taxes	(699)		(612)		(602)		(594)		(599)
Adjusted book value	$	8,765	$	8,559	$	8,379	$	8,371	$	8,823

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $(1), $(1), $(4), $(6) and $(5))	$	5	$	4	$	17	$	27	$	32
Adjusted book value (net of tax (provision) benefit of $0, $1, $(3), $(4) and $(3))	$	—	$	(2)	$	11	$	16	$	23

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Income Components (1 of 4)

(in millions)

Components of Income for the Three Months Ended December 31, 2023


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	83	$	—	$	—	$	—	$	—	$	83
Net investment income	97		—		2		(4)		—		95
Asset management fees	—		—		—		—		—		—
Net realized investment gains (losses)	—		—		—		—		6		6
Fair value gains (losses) on credit derivatives (2)	3		—		—		—		(4)		(1)
Fair value gains (losses) on CCS	—		—		—		—		—		—
Fair value gains (losses) on FG VIEs	—		—		—		10		—		10
Fair value gains (losses) on CIVs	—		—		—		28		—		28
Foreign exchange gains (losses) on remeasurement	2		—		—		—		42		44
Fair value gains (losses) on trading securities	32		—		—		—		—		32
Gain on sale of asset management subsidiaries	—		—		7		—		—		7
Other income (loss)	16		5		3		(1)		—		23
Total revenues	233		5		12		33		44		327

Expenses
Loss and LAE (benefit) (3)	7		—		—		(3)		(1)		3
Interest expense	—		—		26		(3)		—		23
Amortization of DAC	3		—		—		—		—		3
Employee compensation and benefit expenses	42		—		10		—		—		52
Other operating expenses	29		3		15		—		—		47
Total expenses	81		3		51		(6)		(1)		128
Equity in earnings (losses) of investees	22		5		—		(24)		—		3
Less: Provision (benefit) for income taxes	(165)		1		(23)		3		7		(177)
Less: Noncontrolling interests	—		—		—		3		—		3
Total	$	339	$	6	$	(16)	$	9	$	38	$	376

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (2 of 4)

(in millions)

Components of Income for the Three Months Ended December 31, 2022


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	109	$	—	$	—	$	—	$	—	$	109
Net investment income	80		—		1		(3)		—		78
Asset management fees	—		20		—		2		—		22
Net realized investment gains (losses)	—		—		—		—		(17)		(17)
Fair value gains (losses) on credit derivatives (2)	2		—		—		—		29		31
Fair value gains (losses) on CCS	—		—		—		—		12		12
Fair value gains (losses) on FG VIEs	—		—		—		(5)		—		(5)
Fair value gains (losses) on CIVs	—		—		—		(8)		—		(8)
Foreign exchange gains (losses) on remeasurement	2		—		—		(3)		70		69
Fair value gains (losses) on trading securities	(4)		—		—		—		—		(4)
Other income (loss)	4		4		—		(3)		—		5
Total revenues	193		24		1		(20)		94		292

Expenses
Loss and LAE (benefit) (3)	44		—		—		—		1		45
Interest expense	—		1		23		(3)		—		21
Amortization of DAC	3		—		—		—		—		3
Employee compensation and benefit expenses	41		18		10		—		—		69
Other operating expenses	24		9		6		8		—		47
Total expenses	112		28		39		5		1		185
Equity in earnings (losses) of investees	(5)		—		—		(3)		—		(8)
Less: Provision (benefit) for income taxes	10		(1)		(2)		(3)		13		17
Less: Noncontrolling interests	—		—		—		(12)		—		(12)
Total	$	66	$	(3)	$	(36)	$	(13)	$	80	$	94

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (3 of 4)

(in millions)

Components of Income for the Year Ended December 31, 2023


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	347	$	—	$	—	$	(3)	$	—	$	344
Net investment income	370		—		8		(13)		—		365
Asset management fees	—		64		—		(11)		—		53
Net realized investment gains (losses)	—		—		—		—		(14)		(14)
Fair value gains (losses) on credit derivatives (2)	10		—		—		—		104		114
Fair value gains (losses) on CCS	—		—		—		—		(35)		(35)
Fair value gains (losses) on FG VIEs	—		—		—		8		—		8
Fair value gains (losses) on CIVs	—		—		—		88		—		88
Foreign exchange gains (losses) on remeasurement	3		—		—		(1)		51		53
Fair value gains (losses) on trading securities	74		—		—		—		—		74
Gain on sale of asset management subsidiaries	—		—		262		—		—		262
Other income (loss)	51		12		5		(7)		—		61
Total revenues	855		76		275		61		106		1,373

Expenses
Loss and LAE (benefit) (3)	161		—		—		3		(2)		162
Interest expense	—		1		99		(10)		—		90
Amortization of DAC	13		—		—		—		—		13
Employee compensation and benefit expenses	154		59		38		—		—		251
Other operating expenses	107		18		79		13		—		217
Total expenses	435		78		216		6		(2)		733
Equity in earnings (losses) of investees	82		5		—		(59)		—		28
Less: Provision (benefit) for income taxes	(119)		—		14		(5)		17		(93)
Less: Noncontrolling interests	—		—		—		22		—		22
Total	$	621	$	3	$	45	$	(21)	$	91	$	739

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Income Components (4 of 4)

(in millions)

Components of Income for the Year Ended December 31, 2022


	Segments				Corporate and Other
	Insurance		Asset Management		Corporate		Other (1)		Reconciling Items		Consolidated

Revenues
Net earned premiums	$	497	$	—	$	—	$	(3)	$	—	$	494
Net investment income	278		—		4		(13)		—		269
Asset management fees	—		106		—		(13)		—		93
Net realized investment gains (losses)	—		—		—		—		(56)		(56)
Fair value gains (losses) on credit derivatives (2)	11		—		—		—		(22)		(11)
Fair value gains (losses) on CCS	—		—		—		—		24		24
Fair value gains (losses) on FG VIEs	—		—		—		22		—		22
Fair value gains (losses) on CIVs	—		—		—		17		—		17
Foreign exchange gains (losses) on remeasurement	(5)		(1)		—		4		(110)		(112)
Fair value gains (losses) on trading securities	(34)		—		—		—		—		(34)
Commutation gains (losses)	2		—		—		—		—		2
Other income (loss)	8		7		—		—		—		15
Total revenues	757		112		4		14		(164)		723

Expenses
Loss and LAE (benefit) (3)	12		—		—		8		(4)		16
Interest expense	1		1		89		(10)		—		81
Amortization of DAC	14		—		—		—		—		14
Employee compensation and benefit expenses	148		80		30		—		—		258
Other operating expenses	84		38		24		21		—		167
Total expenses	259		119		143		19		(4)		536
Equity in earnings (losses) of investees	(51)		—		—		12		—		(39)
Less: Provision (benefit) for income taxes	34		(1)		(5)		—		(17)		11
Less: Noncontrolling interests	—		—		—		13		—		13
Total	$	413	$	(6)	$	(134)	$	(6)	$	(143)	$	124

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).

Assured Guaranty Ltd.

Fixed-Maturity Securities, Short-Term Investments and Cash

As of December 31, 2023

(dollars in millions)


	Amortized Cost		Allowance for Credit Losses			Pre-Tax Book Yield		After-Tax Book Yield		Fair Value		Annualized Investment Income (1)
Fixed maturity securities, available-for-sale:
Obligations of states and political subdivisions (3)(6)	$	2,733	$	(13)		3.49	%	3.19	%	$	2,661	$	95
U.S. government and agencies	65		—			2.39		2.12		60		2
Corporate securities	2,327		(6)			3.01		2.67		2,141		70
Mortgage-backed securities:
Residential mortgage-backed securities (RMBS) (2)(3)	428		(21)			5.13		4.27		342		22
Commercial mortgage-backed securities	157		—			3.20		2.76		151		5
Asset-backed securities (ABS)
Collateralized loan obligation (CLOs)	456		—			7.61		6.02		450		35
Other ABS (3)	465		(37)			6.17		4.95		402		29
Non-U.S. government securities	115		—			1.11		1.09		100		1
Total fixed maturity securities, available-for-sale	6,746		(77)			3.84		3.33		6,307		259
Short-term investments	1,661		—			5.21		4.17		1,661		86
Cash (4)	97		—			—		—		97		—
Total	$	8,504	$	(77)		4.11	%	3.50	%	$	8,065	$	345

Fixed maturity securities, trading (8)										$	318

Ratings (5):	Fair Value		% of Portfolio
U.S. government and agencies	$	60	1.0		%
AAA/Aaa	840		13.3		%
AA/Aa	2,346		37.2		%
A/A	1,742		27.6		%
BBB	740		11.7		%
BIG	491		7.8		%
Not rated (6)	88		1.4		%
Total fixed maturity securities, available-for-sale	$	6,307	100.0		%



Duration of available-for-sale fixed maturity securities and short-term investments (in years):			3.1

1) Represents annualized investment income based on amortized cost and pre-tax book yields.

2) Includes fair value of $135 million in subprime RMBS, of which 91% were rated BIG.

3) Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.

4) Cash is not included in the yield calculation.

5) Ratings are the lower of the Moody’s Investors Service, Inc. (Moody’s) or Standard & Poor's Financial Services LLC (S&P) classifications except for purchased securities that the Company has insured, and for which it had expected losses to be paid (Loss Mitigation Securities) and certain other securities, which use internal ratings classifications. Loss mitigation and other securities total $848 million in par with carrying value of $554 million and are primarily included in the BIG category.

6) Includes $14 million of new general obligation bonds and new bonds backed by toll revenue received in connection with the 2022 Puerto Rico Resolutions (see page 33).

7) Represents contingent value instruments (CVI) received in connection with the 2022 Puerto Rico Resolutions (see page 33). These securities are not rated.

Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (1 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of December 31, 2023


	Insurance Related Subsidiaries (1)		Holding Companies (2)		Other (3)		AGL Consolidated

Fixed-maturity securities, available-for-sale	$	6,286	$	21	$	—	$	6,307
Fixed-maturity securities, trading	318		—		—		318
Total fixed-maturity securities	6,604		21		—		6,625
Short-term investments	1,328		332		1		1,661
Cash	52		7		38		97
Total short-term investments and cash	1,380		339		39		1,758
Other invested assets
Equity method investments:
Sound Point	—		429		—		429
Funds:
CLOs	302		—		(223)		79
Asset-based	171		—		(82)		89
Healthcare	102		—		—		102
Other	117		—		—		117
Total funds	692		—		(305)		387
Other	—		7		—		7
Total equity method investments	692		436		(305)		823
Other	3		3		—		6
Other invested assets	695		439		(305)		829
Total investment portfolio and cash (4)	$	8,679	$	799	$	(266)	$	9,212
CIVs (5)
Assets of CIVs	$	—	$	—	$	366	$	366
Liabilities of CIVs	—		—		(4)		(4)
Nonredeemable noncontrolling interests	—		—		(52)		(52)
Total CIVs	$	—	$	—	$	310	$	310

1) Includes the Company’s U.S., Bermuda, U.K. and French subsidiaries and AG Asset Strategies LLC (separate company, excluding the effect of consolidating CIVs).

2) Includes the Company’s holding companies: AGL, Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH).

3) Includes the Company’s non insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.

4) The alternative investments had an inception-to-date annualized internal rate of return (IRR) of 12.8%, the year to date return of 13.8% and the quarter to date return of 3.4%. For funds, the returns represent IRR based on mark-to-market gains (losses). The inception-to-date IRRs are annualized; the quarterly and year-to-date returns are not annualized.

5) In connection with the Sound Point and AHP transactions in July 2023, the Company re-evaluated the consolidation conclusions for all of its CIVs and determined that the Company was no longer the primary beneficiary (in accordance with GAAP) for all but three funds (Sound Point CLO Warehouse Fund (US) L.P., Sound Point Asset Backed Income Fund (US) L.P. and Sound Point GLS Fund L.P). Therefore, all but these three funds were deconsolidated in July 2023.

Assured Guaranty Ltd.

Investment Portfolio, Cash and CIVs

GAAP (2 of 2)

(dollars in millions)

Investment Portfolio, Cash and CIVs as of December 31, 2022


	Insurance Related Subsidiaries (1)		Holding Companies (2)		Other		AGL Consolidated

Fixed-maturity securities, available-for-sale	$	7,095	$	24	$	—	$	7,119
Fixed-maturity securities, trading	303		—		—		303
Total fixed-maturity securities	7,398		24		—		7,422

Short-term investments	668		132		10		810
Cash	44		7		56		107
Total short-term investments and cash	712		139		66		917
Other invested assets
AssuredIM Funds (3)
CLOs	272		—		(272)		—
Asset-based	101		—		(101)		—
Healthcare	91		—		(91)		—
Municipal bonds	105		—		(105)		—
Equity method investments AssuredIM Funds	569		—		(569)		—
Other	122		9		2		133
Other invested assets	691		9		(567)		133
Total investment portfolio and cash	$	8,801	$	172	$	(501)	$	8,472
CIVs
Assets of CIVs	$	—	$	—	$	5,493	$	5,493
Liabilities of CIVs	—		—		(4,625)		(4,625)
Nonredeemable noncontrolling interests	—		—		(228)		(228)
Total CIVs	$	—	$	—	$	640	$	640

1) Includes the Company's U.S., Bermuda, U.K. and French insurance subsidiaries.

2) Includes the Company's' holding companies: AGL, AGUS and AGMH

3) Funds managed by Assured Investment Management LLC (AssuredIM LLC) and its investment management affiliates (together with AssuredIM LLC, AssuredIM) (AssuredIM Funds), prior to July 2023.

Assured Guaranty Ltd.

Income from Investment Portfolio and CIVs

Segment (1 of 2)

(dollars in millions)

Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs on a Segment basis


	Three Months Ended December 31, 2023
	Insurance		Asset Management		Corporate		Other		Total

Net investment income	$	97	$	—	$	2	$	(4)	$	95

Fair value gains (losses) on trading securities	$	32	$	—	$	—	$	—	$	32

Equity in earnings (losses) of investees
Sound Point (1)	$	—	$	5	$	—	$	—	$	5
Funds:
CLOs	27		—		—		(23)		4
Asset-based	2		—		—		(1)		1
Healthcare	(2)		—		—		—		(2)
Other	(5)		—		—		—		(5)
Total funds (2)	22		—		—		(24)		(2)
Other	—		—		—		—		—
Equity in earnings (losses) of investees	$	22	$	5	$	—	$	(24)	$	3

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	28	$	28
Noncontrolling interests	—		—		—		(3)		(3)
Total CIVs	$	—	$	—	$	—	$	25	$	25


	Three Months Ended December 31, 2022
	Insurance		Asset Management		Corporate		Other		Total

Net investment income	$	80	$	—	$	1	$	(3)	$	78

Fair value gains (losses) on trading securities	$	(4)	$	—	$	—	$	—	$	(4)

Equity in earnings (losses) of investees
AssuredIM Funds	$	3	$	—	$	—	$	(3)	$	—
Other	(8)		—		—		—		(8)
Equity in earnings (losses) of investees	$	(5)	$	—	$	—	$	(3)	$	(8)

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	(8)	$	(8)
Noncontrolling interests	—		—		—		12		12
Total CIVs	$	—	$	—	$	—	$	4	$	4

1) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.

2) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.

Assured Guaranty Ltd.

Income from Investment Portfolio and CIVs

Segment (2 of 2)

(dollars in millions)

Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs on a Segment basis


	Year Ended December 31, 2023
	Insurance		Asset Management		Corporate		Other		Total

Net investment income	$	370	$	—	$	8	$	(13)	$	365

Fair value gains (losses) on trading securities	$	74	$	—	$	—	$	—	$	74

Equity in earnings (losses) of investees
Sound Point (1)	$	—	$	5	$	—	$	—	$	5
Funds:
CLOs	50		—		—		(46)		4
Asset-based	5		—		—		(4)		1
Healthcare	19		—		—		(9)		10
Other	8		—		—		—		8
Total funds (2)	82		—		—		(59)		23
Other	—		—		—		—		—
Equity in earnings (losses) of investees	$	82	$	5	$	—	$	(59)	$	28

CIVs
Fair value gains (losses) on CIVs (3)	$	—	$	—	$	—	$	88	$	88
Noncontrolling interests	—		—		—		(22)		(22)
Total CIVs	$	—	$	—	$	—	$	66	$	66


	Year Ended December 31, 2022
	Insurance		Asset Management		Corporate		Other		Total

Net investment income	$	278	$	—	$	4	$	(13)	$	269

Fair value gains (losses) on trading securities	$	(34)	$	—	$	—	$	—	$	(34)

Equity in earnings (losses) of investees
AssuredIM Funds	$	(10)	$	—	$	—	$	12	$	2
Other	(41)		—		—		—		(41)
Equity in earnings (losses) of investees	$	(51)	$	—	$	—	$	12	$	(39)

CIVs
Fair value gains (losses) on CIVs	$	—	$	—	$	—	$	17	$	17
Noncontrolling interests	—		—		—		(13)		(13)
Total CIVs	$	—	$	—	$	—	$	4	$	4

1) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.

2) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.

3) Includes loss on deconsolidation of $16 million.

Insurance Segment

Assured Guaranty Ltd.

Insurance Segment Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
Segment revenues
Net earned premiums and credit derivative revenues	$	86	$	111	$	357	$	508
Net investment income	97		80		370		278
Fair value gains (losses) on trading securities	32		(4)		74		(34)
Foreign exchange gains (losses) on remeasurement and other income (loss)	18		6		54		5
Total segment revenues	233		193		855		757

Segment expenses
Loss expense (benefit)	7		44		161		12
Interest expense	—		—		—		1
Amortization of DAC	3		3		13		14
Employee compensation and benefit expenses	42		41		154		148
Other operating expenses	29		24		107		84
Total segment expenses	81		112		435		259
Equity in earnings (losses) of investees	22		(5)		82		(51)
Segment adjusted operating income (loss) before income taxes	174		76		502		447
Less: Provision (benefit) for income taxes	(165)		10		(119)		34
Segment adjusted operating income (loss)	$	339	$	66	$	621	$	413

Assured Guaranty Ltd.

Claims-Paying Resources

(dollars in millions)


	As of December 31, 2023
	AGM		AGC		AG Re (6)		Eliminations(2)		Consolidated
Claims-paying resources
Policyholders’ surplus	$	2,646	$	1,651	$	734	$	(224)	$	4,807
Contingency reserve	876		420		—		—		1,296
Qualified statutory capital	3,522		2,071		734		(224)		6,103
Unearned premium reserve and net deferred ceding commission income(1)	2,077		350		592		(64)		2,955
Loss and LAE reserves (1)(7)	7		—		138		—		145
Total policyholders' surplus and reserves	5,606		2,421		1,464		(288)		9,203
Present value of installment premium	545		257		260		—		1,062
CCS	200		200		—		—		400
Total claims-paying resources	$	6,351	$	2,878	$	1,724	$	(288)	$	10,665

Statutory net exposure (1)(3)	$	161,630	$	29,115	$	61,296	$	(908)	$	251,133
Net debt service outstanding (1)(3)	$	260,771	$	47,396	$	93,351	$	(1,770)	$	399,748

Ratios:
Net exposure to qualified statutory capital	46:1		14:1		84:1				41:1
Capital ratio (4)	74:1		23:1		127:1				66:1
Financial resources ratio (5)	41:1		16:1		54:1				37:1
Statutory net exposure to claims-paying resources	25:1		10:1		36:1				24:1

1) The numbers shown for Assured Guaranty Municipal Corp. (AGM) have been adjusted to include 100% share of its United Kingdom (U.K.) and French insurance subsidiaries.

2) Eliminations are primarily for (i) intercompany surplus notes between AGM and Assured Guaranty Corp. (AGC), and (ii) eliminations of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

3) Net exposure and net debt service outstanding are presented on a statutory basis. Includes $3,300 million of specialty business.

4) The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.

5) The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.

6) Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of AG Re on a U.S. statutory basis, except for contingency reserves.

7) Loss and LAE reserves exclude adjustments to claims-paying resources for AGC because the balance was in a net recoverable position of $108 million.

Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.

Assured Guaranty Ltd.

New Business Production

(dollars in millions)

Reconciliation of GWP to PVP for the Three Months Ended December 31, 2023 and December 31, 2022


	Three Months Ended										Three Months Ended
	December 31, 2023										December 31, 2022
	Public Finance				Structured Finance						Public Finance				Structured Finance
	U.S.		Non - U.S.		U.S.		Non - U.S.		Total		U.S.		Non - U.S.		U.S.		Non - U.S.		Total
Total GWP	$	82	$	42	$	11	$	1	$	136	$	88	$	9	$	33	$	1	$	131
Less: Installment GWP and other GAAP adjustments (1)	54		37		11		1		103		40		9		29		1		79
Upfront GWP	28		5		—		—		33		48		—		4		—		52
Plus: Installment premiums and other(2)	55		40		26		1		122		46		1		36		—		83
Total PVP	$	83	$	45	$	26	$	1	$	155	$	94	$	1	$	40	$	—	$	135

Gross par written	$	6,712	$	874	$	785	$	304	$	8,675	$	5,819	$	—	$	971	$	245	$	7,035

Reconciliation of GWP to PVP for the Year Ended December 31, 2023 and December 31, 2022


	Year Ended										Year Ended
	December 31, 2023										December 31, 2022
	Public Finance				Structured Finance						Public Finance				Structured Finance
	U.S.		Non - U.S.		U.S.		Non - U.S.		Total		U.S.		Non - U.S.		U.S.		Non - U.S.		Total
Total GWP	$	211	$	82	$	59	$	5	$	357	$	248	$	75	$	37	$	—	$	360
Less: Installment GWP and other GAAP adjustments (1)	109		74		59		5		247		40		75		30		—		145
Upfront GWP	102		8		—		—		110		208		—		7		—		215
Plus: Installment premiums and other(2)	110		75		68		41		294		49		68		36		7		160
Total PVP	$	212	$	83	$	68	$	41	$	404	$	257	$	68	$	43	$	7	$	375

Gross par written	$	22,464	$	1,544	$	1,886	$	3,066	$	28,960	$	19,801	$	624	$	1,077	$	545	$	22,047

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Gross Par Written (1 of 2)

(dollars in millions)

Gross Par Written by Asset Type


	Three Months Ended December 31,
	2023		2022
Sector:
U.S. public finance:
General obligation	$	2,336	$	1,403
Transportation	1,597		732
Municipal utilities	1,153		980
Healthcare	844		769
Tax backed	654		949
Higher education	104		366
Housing revenue	16		—
Infrastructure finance	8		573
Investor-owned utilities	—		47
Total U.S. public finance	6,712		5,819
Non-U.S. public finance:
Infrastructure finance	614		—
Regulated utilities	157		—
Sovereign and sub-sovereign	103		—
Total non-U.S. public finance	874		—
Total public finance	7,586		5,819

U.S. structured finance:
Insurance securitizations	575		653
Structured credit	90		10
Subscription finance facilities	79		79
Pooled corporate obligations	41		129
Commercial mortgage-backed securities	—		100
Total U.S. structured finance	785		971
Non-U.S. structured finance:
Subscription finance facilities	228		234
Pooled corporate obligations	76		11
Total non-U.S. structured finance	304		245
Total structured finance	1,089		1,216

Total gross par written	$	8,675	$	7,035

Please refer to the Glossary for a description of sectors.

Assured Guaranty Ltd.

Gross Par Written (2 of 2)

(dollars in millions)

Gross Par Written by Asset Type


	Year Ended December 31,
	2023		2022
Sector:
U.S. public finance:
General obligation	$	8,450	$	6,267
Municipal utilities	5,048		3,240
Transportation	2,636		3,707
Tax backed	2,324		2,754
Infrastructure finance	1,793		697
Healthcare	1,550		2,355
Higher education	403		734
Housing revenue	233		—
Investor-owned utilities	—		47
Other public finance	27		—
Total U.S. public finance	22,464		19,801
Non-U.S. public finance:
Infrastructure finance	614		207
Regulated utilities	574		417
Sovereign and sub-sovereign	356		—
Total non-U.S. public finance	1,544		624
Total public finance	24,008		20,425

U.S. structured finance:
Insurance securitizations	1,325		653
Structured credit	365		27
Subscription finance facilities	155		95
Pooled corporate obligations	41		129
Commercial mortgage-backed securities	—		113
Other structured finance	—		60
Total U.S. structured finance	1,886		1,077
Non-U.S. structured finance:
Subscription finance facilities	1,083		277
Pooled corporate obligations	564		11
Other structured finance	1,419		257
Total non-U.S. structured finance	3,066		545
Total structured finance	4,952		1,622

Total gross par written	$	28,960	$	22,047

Assured Guaranty Ltd.

New Business Production by Quarter

(dollars in millions)


																	Year Ended
	1Q-22		2Q-22		3Q-22		4Q-22		1Q-23		2Q-23		3Q-23		4Q-23		2022		2023
PVP:
Public finance - U.S.	$	49	$	57	$	57	$	94	$	22	$	77	$	30	$	83	$	257	$	212
Public finance - non-U.S.	12		18		37		1		30		6		2		45		68		83
Structured finance - U.S.	2		—		1		40		27		3		12		26		43		68
Structured finance - non-U.S.	6		1		—		—		33		5		2		1		7		41
Total PVP (1)	$	69	$	76	$	95	$	135	$	112	$	91	$	46	$	155	$	375	$	404

Reconciliation of GWP to PVP:

Total GWP	$	70	$	65	$	94	$	131	$	86	$	95	$	40	$	136	$	360	$	357
Less: Installment GWP and other GAAP adjustments	19		8		39		79		69		58		17		103		145		247
Upfront GWP	51		57		55		52		17		37		23		33		215		110
Plus: Installment premiums and other(2)	18		19		40		83		95		54		23		122		160		294
Total PVP	$	69	$	76	$	95	$	135	$	112	$	91	$	46	$	155	$	375	$	404

Gross par written:
Public finance - U.S.	$	3,931	$	6,429	$	3,622	$	5,819	$	2,907	$	7,747	$	5,098	$	6,712	$	19,801	$	22,464
Public finance - non-U.S.	223		207		194		—		360		249		61		874		624		1,544
Structured finance - U.S.	60		16		30		971		582		252		267		785		1,077		1,886
Structured finance - non-U.S.(1)	257		43		—		245		1,514		726		522		304		545		3,066
Total	$	4,471	$	6,695	$	3,846	$	7,035	$	5,363	$	8,974	$	5,948	$	8,675	$	22,047	$	28,960

1) PVP and gross par written includes the present value (PV) of future premiums and total exposure, respectively, associated with other guaranties written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.

2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Estimated Net Exposure Amortization(1) and Estimated Future Financial Guaranty Net Premium

and Credit Derivative Revenues

(dollars in millions)


					Financial Guaranty Insurance (2)
	Estimated Net Debt Service Amortization		Estimated Ending Net Debt Service Outstanding		Expected PV Net Earned Premiums (i.e. Net Deferred Premium Revenue)		Accretion of Discount		Effect of FG VIE Consolidation on Expected PV Net Earned Premiums and Accretion of Discount		Future Credit Derivative Revenues (3)
2023 (as of December 31)			$	397,636
2024 Q1	$	4,336	393,300		$	72	$	7	$	1	$	3
2024 Q2	4,206		389,094		71		7		1		2
2024 Q3	6,809		382,285		70		7		1		2
2024 Q4	5,141		377,144		69		7		1		2
2025	21,822		355,322		264		26		3		8
2026	20,756		334,566		247		25		2		8
2027	18,845		315,721		234		23		2		8
2028	19,404		296,317		220		22		2		7

2024-2028	101,319		296,317		1,247		124		13		40
2029-2033	90,738		205,579		909		90		11		29
2034-2038	70,764		134,815		602		62		9		23
2039-2043	50,280		84,535		375		41		—		14
After 2043	84,535		—		513		53		—		8
Total	$	397,636			$	3,646	$	370	$	33	$	114

Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve(4)


	GAAP		Effect of FG VIE Consolidation on Net Unearned Premium Reserve
Net deferred premium revenue:
Financial guaranty	$	3,646	$	32
Specialty	8		—
Net deferred premium revenue	3,654		32
Contra-paid	(22)		(3)
Net unearned premium reserve	$	3,632	$	29

1) Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of December 31, 2023. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations, terminations and because of management's assumptions on structured finance amortization.

2) See also page 27, for ‘‘Net Expected Loss to be Expensed.’’

3) Represents expected future premiums on insured credit derivatives.

4) Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).

Assured Guaranty Ltd.

Roll Forward of Net Expected Loss and LAE to be Paid

(dollars in millions)

Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Three Months Ended December 31, 2023


	Net Expected Loss to be Paid (Recovered) as of September 30, 2023		Net Economic Loss Development (Benefit) During 4Q-23		Net (Paid) Recovered Losses During 4Q-23		Net Expected Loss to be Paid (Recovered) as of December 31, 2023
Public Finance:
U.S. public finance	$	399	$	8	$	(9)	$	398
Non-U.S public finance	9		11		—		20
Public Finance	408		19		(9)		418

Structured Finance:
U.S. RMBS	38		(4)		9		43
Other structured finance	44		2		(2)		44
Structured Finance	82		(2)		7		87
Total	$	490	$	17	$	(2)	$	505

Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Year Ended December 31, 2023


	Net Expected Loss to be Paid (Recovered) as of December 31, 2022		Net Economic Loss Development (Benefit) During 2023		Net (Paid) Recovered Losses During 2023		Net Expected Loss to be Paid (Recovered) as of December 31, 2023
Public Finance:
U.S. public finance	$	403	$	201	$	(206)	$	398
Non-U.S public finance	9		11		—		20
Public Finance	412		212		(206)		418

Structured Finance:
U.S. RMBS	66		(56)		33		43
Other structured finance	44		8		(8)		44
Structured Finance	110		(48)		25		87
Total	$	522	$	164	$	(181)	$	505

1) Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e., those accounted for as insurance, credit derivatives and FG VIEs).

Assured Guaranty Ltd.

Loss Measures

As of December 31, 2023

(dollars in millions)


			Three Months Ended December 31, 2023						Year Ended December 31, 2023
	Total Net Par Outstanding for BIG Transactions		GAAP Loss and LAE(1)		Loss and LAE included in Adjusted Operating Income (2)		Insurance Segment Loss and LAE(3)		GAAP Loss and LAE (1)		Loss and LAE included in Adjusted Operating Income (2)		Insurance Segment Loss and LAE(3)
Public finance:
U.S. public finance	$	3,271	$	6	$	6	$	7	$	192	$	192	$	191
Non-U.S public finance	1,131		—		—		—		—		—		—
Public finance	4,402		6		6		7		192		192		191
Structured finance:
U.S. RMBS	$	941	(3)		(3)		(1)		(34)		(34)		(36)
Other structured finance	94		—		1		1		4		6		6
Structured finance	1,035		(3)		(2)		—		(30)		(28)		(30)
Total	$	5,437	$	3	$	4	$	7	$	162	$	164	$	161

1) Includes loss expense related to contracts that are accounted for as insurance contracts.

2) Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.

3) Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Net Expected Loss to be Expensed (1)

As of December 31, 2023

(dollars in millions)


	GAAP

2024 Q1	$	3
2024 Q2	3
2024 Q3	3
2024 Q4	3
2025	12
2026	16
2027	16
2028	15
2024-2028	71
2029-2033	69
2034-2038	48
2039-2043	11
After 2043	11
Total expected present value of net expected loss to be expensed (2)	210
Future accretion	19
Total expected future loss and LAE	$	229

1) The present value of net expected loss to be paid is discounted using risk free rates ranging from 3.79% to 5.40% for U.S. dollar denominated obligations.

2) Excludes $27 million related to FG VIEs, which are eliminated in consolidation.

Assured Guaranty Ltd.

Financial Guaranty Profile (1 of 3)

(dollars in millions)

Net Par Outstanding by Asset Type


	As of December 31, 2023		As of December 31, 2022
U.S. public finance:
General obligation	$	74,609	$	71,868
Tax backed	33,060		33,752
Municipal utilities	29,300		26,436
Transportation	22,052		19,688
Healthcare	12,604		11,304
Infrastructure finance	8,796		6,955
Higher education	7,250		7,137
Housing revenue	1,152		959
Investor-owned utilities	329		332
Renewable energy	167		180
Other public finance	970		1,025
Total U.S. public finance	190,289		179,636
Non-U.S public finance:
Regulated utilities	20,545		17,855
Infrastructure finance	15,430		13,915
Sovereign and sub-sovereign	9,869		9,526
Renewable energy	2,030		2,086
Pooled infrastructure	1,133		1,081
Total non-U.S. public finance	49,007		44,463
Total public finance	239,296		224,099

U.S. structured finance:
Insurance securitizations	4,379		3,879
RMBS	1,774		1,956
Pooled corporate obligations	631		625
Financial products	464		453
Consumer receivables	314		437
Subscription finance facilities	178		72
Other structured finance	892		806
Total U.S. structured finance	8,632		8,228
Non-U.S. structured finance:
Subscription finance facilities	444		219
Pooled corporate obligations	425		344
RMBS	252		263
Other structured finance	104		105
Total non-U.S structured finance	1,225		931
Total structured finance	9,857		9,159

Total net par outstanding	$	249,153	$	233,258

Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (2 of 3)

As of December 31, 2023

(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio


	Public Finance - U.S.				Public Finance - Non-U.S.				Structured Finance - U.S.				Structured Finance - Non-U.S.				Total
Ratings:	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
AAA	$	110	0.1	%	$	2,062	4.2	%	$	867	10.0	%	$	465	38.0	%	$	3,504	1.4	%
AA	17,883		9.4		3,379		6.9		4,517		52.3		89		7.3		25,868		10.4
A	102,945		54.1		12,968		26.5		1,639		19.0		571		46.6		118,123		47.4
BBB	66,080		34.7		29,467		60.1		574		6.7		100		8.1		96,221		38.6
BIG	3,271		1.7		1,131		2.3		1,035		12.0		—		—		5,437		2.2
Net Par Outstanding (1)	$	190,289	100.0	%	$	49,007	100.0	%	$	8,632	100.0	%	$	1,225	100.0	%	$	249,153	100.0	%

1) As of December 31, 2023, the Company excluded $1.2 billion of net par outstanding primarily attributable to Loss Mitigation Securities.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (3 of 3)

As of December 31, 2023

(dollars in millions)

Geographic Distribution of Financial Guaranty Portfolio


	Net Par Outstanding		% of Total

U.S.:
U.S. public finance:
California	$	36,200	14.5	%
Texas	22,783		9.1
New York	17,751		7.1
Pennsylvania	16,941		6.8
Illinois	12,953		5.2
New Jersey	9,255		3.7
Florida	8,586		3.5
Michigan	5,533		2.2
Louisiana	4,758		1.9
Alabama	3,819		1.5
Other	51,710		20.8
Total U.S. public finance	190,289		76.3
U.S. structured finance	8,632		3.5
Total U.S.	198,921		79.8

Non-U.S.:
United Kingdom	39,394		15.8
Canada	1,696		0.7
Spain	1,649		0.7
France	1,565		0.6
Australia	1,518		0.6
Other	4,410		1.8
Total non-U.S.	50,232		20.2

Total net par outstanding	$	249,153	100.0	%

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Specialty Business

(dollars in millions)


	As of December 31, 2023				As of December 31, 2022
	Gross Exposure		Net Exposure		Gross Exposure		Net Exposure
Insurance securitizations (1)	$	1,370	$	1,043	$	1,314	$	986
Aircraft residual value insurance policies (2)	355		200		355		200
Other guaranties	2,057		2,057		228		228

1) Insurance securitizations net exposure is projected to reach $1.2 billion in 2026.

2) As of both December 31, 2023 and December 31, 2022, gross exposure of $144 million and net exposure of $84 million of aircraft residual value insurance was internally rated BIG. All other exposures in the table above are investment-grade.

Assured Guaranty Ltd.

Expected Amortization of Net Par Outstanding

(dollars in millions)


	Public Finance				Structured Finance
	Estimated Net Par Amortization		Estimated Ending Net Par Outstanding		U.S. and Non-U.S. Pooled Corporate		U.S. RMBS		Financial Products		Other Structured Finance		Total		Estimated Ending Net Par Outstanding

2023 (as of December 31)			$	239,296											$	9,857
2024 Q1	$	1,577	237,719		$	8	$	68	$	19	$	(1)	$	94	9,763
2024 Q2	1,487		236,232		10		65		2		51		128		9,635
2024 Q3	3,918		232,314		7		66		(4)		141		210		9,425
2024 Q4	2,227		230,087		7		61		(7)		363		424		9,001
2025	10,994		219,093		148		239		30		340		757		8,244
2026	10,538		208,555		198		186		37		250		671		7,573
2027	9,113		199,442		214		168		(9)		287		660		6,913
2028	10,026		189,416		204		159		51		330		744		6,169

2024-2028	49,880		189,416		796		1,012		119		1,761		3,688		6,169
2029-2033	51,004		138,412		122		351		265		2,678		3,416		2,753
2034-2038	44,051		94,361		49		404		65		752		1,270		1,483
2039-2043	32,379		61,982		89		—		15		781		885		598
After 2043	61,982		—		—		7		—		591		598		—
Total	$	239,296			$	1,056	$	1,774	$	464	$	6,563	$	9,857

Net par outstanding (end of period)


		1Q-22		2Q-22		3Q-22		4Q-22		1Q-23		2Q-23		3Q-23		4Q-23
Public finance - U.S.		$	175,957	$	179,648	$	177,842	$	179,636	$	180,837	$	186,323	$	185,973	$	190,289
Public finance - non-U.S.		48,506		44,447		41,063		44,463		45,909		47,658		45,748		49,007
Structured finance - U.S.		8,101		7,935		7,449		8,228		8,660		8,827		8,975		8,632
Structured finance - non-U.S.		815		782		717		931		977		1,205		1,137		1,225
	Net par outstanding	$	233,379	$	232,812	$	227,071	$	233,258	$	236,383	$	244,013	$	241,833	$	249,153

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Exposure to Puerto Rico (1 of 2)

As of December 31, 2023

(dollars in millions)

Exposure to Puerto Rico


	Par Outstanding				Debt Service Outstanding
	Gross		Net		Gross		Net
Total	$	1,120	$	1,105	$	1,526	$	1,508

Exposure to Puerto Rico by Company


	Net Par Outstanding
	AGM		AGC		AG Re		Eliminations (1)		Total Net Par Outstanding		Gross Par Outstanding
Defaulted Puerto Rico Exposures
Puerto Rico Electric Power Authority (PREPA)	$	377	$	67	$	180	$	—	$	624	$	633
Total Defaulted	377		67		180		—		624		633
Resolved Puerto Rico Exposures (2)(3)
Puerto Rico Highways and Transportation Authority (PRHTA) (Transportation revenue)	14		157		87		(14)		244		244
PRHTA (Highway revenue)	109		11		8		—		128		128
Total Resolved	123		168		95		(14)		372		372
Other Puerto Rico Exposures (4)
Puerto Rico Municipal Finance Agency (MFA)	84		6		18		—		108		114
Puerto Rico Aqueduct and Sewer Authority (PRASA) and University of Puerto Rico (U of PR)	—		1		—		—		1		1
Total Other	84		7		18		—		109		115
Total exposure to Puerto Rico	$	584	$	242	$	293	$	(14)	$	1,105	$	1,120

1) Net par outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

2) A substantial portion of the Company’s Puerto Rico exposure was resolved in 2022 in accordance with four orders (including orders implementing the GO/PBA Plan and HTA Plan described below) entered by the United States District Court of the District of Puerto Rico related to the Company’s exposure to all insured Puerto Rico credits experiencing payment default in 2022 except PREPA (2022 Puerto Rico Resolutions). Under the Modified Eighth Amended Title III Joint Plan of Adjustment of the Commonwealth of Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Public Buildings Authority (GO/PBA Plan), the Company received cash, new general obligation bonds and CVIs. In connection with the Modified Fifth Amended Title III Plan of Adjustment for PRHTA (HTA Plan) and related arrangements, the Company received cash and new bonds backed by toll revenues (Toll Bonds) from the PRHTA and CVIs from the Commonwealth of Puerto Rico.

3) Resolved pursuant to the 2022 Puerto Rico Resolutions. Consideration (e.g., Toll Bonds and CVIs) received under the HTA Plan related to the remaining insured exposure is reported in FG VIEs’ assets. In January 2024, $144 million of the remaining PRHTA net par was paid down. The remaining liabilities are payable in full by the U.S. Insurance Subsidiaries under their financial guaranty policies and are no longer dependent on the credit of PRHTA.

4) All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.

Assured Guaranty Ltd.

Exposure to Puerto Rico (2 of 2)

As of December 31, 2023

(dollars in millions)

Amortization Schedule of Net Par Outstanding of Puerto Rico


	2024 Q1		2024 Q2		2024 Q3		2024 Q4		2025		2026		2027		2028		2029		2030		2031		2032		2033		2034-2038		2039 -2041		Total
Defaulted Puerto Rico Exposures
PREPA	$	—	$	—	$	93	$	—	$	68	$	105	$	105	$	68	$	39	$	44	$	75	$	14	$	4	$	9	$	—	$	624
Total Defaulted	—		—		93		—		68		105		105		68		39		44		75		14		4		9		—		624
Resolved Puerto Rico Exposures
PRHTA (Transportation revenue)	—		—		—		—		—		—		—		—		—		—		—		—		—		127		117		244
PRHTA (Highway revenue)	—		—		—		—		—		—		—		—		—		—		—		27		17		84		—		128
Total Resolved	—		—		—		—		—		—		—		—		—		—		—		27		17		211		117		372
Other Puerto Rico Exposures
MFA	—		—		16		—		16		35		15		13		7		6		—		—		—		—		—		108
PRASA and U of PR	—		—		1		—		—		—		—		—		—		—		—		—		—		—		—		1
Total Other	—		—		17		—		16		35		15		13		7		6		—		—		—		—		—		109

Total	$	—	$	—	$	110	$	—	$	84	$	140	$	120	$	81	$	46	$	50	$	75	$	41	$	21	$	220	$	117	$	1,105

Amortization Schedule of Net Debt Service Outstanding of Puerto Rico


	2024 Q1		2024 Q2		2024 Q3		2024 Q4		2025		2026		2027		2028		2029		2030		2031		2032		2033		2034-2038		2039 -2041		Total
Defaulted Puerto Rico Exposures
PREPA	$	12	$	3	$	105	$	3	$	92	$	126	$	122	$	80	$	47	$	51	$	81	$	15	$	5	$	9	$	—	$	751
Total Defaulted	12		3		105		3		92		126		122		80		47		51		81		15		5		9		—		751
Resolved Puerto Rico Exposures
PRHTA (Transportation revenue)	6		—		6		—		13		13		12		13		13		13		13		13		13		172		128		428
PRHTA (Highway revenue)	3		—		3		—		7		7		7		7		7		7		6		34		22		93		—		203
Total Resolved	9		—		9		—		20		20		19		20		20		20		19		47		35		265		128		631
Other Puerto Rico Exposures
MFA	3		—		19		—		20		39		17		14		7		6		—		—		—		—		—		125
PRASA and U of PR	—		—		1		—		—		—		—		—		—		—		—		—		—		—		—		1
Total Other	3		—		20		—		20		39		17		14		7		6		—		—		—		—		—		126

Total	$	24	$	3	$	134	$	3	$	132	$	185	$	158	$	114	$	74	$	77	$	100	$	62	$	40	$	274	$	128	$	1,508

Assured Guaranty Ltd.

U.S. RMBS Profile

As of December 31, 2023

(dollars in millions)

Distribution of U.S. RMBS by Rating and Type of Exposure


Ratings:	Prime First Lien		Alt-A First Lien		Option ARMs		Subprime First Lien		Second Lien		Total Net Par Outstanding
AAA	$	9	$	56	$	9	$	323	$	2	$	399
AA	8		71		6		140		168		393
A	—		—		—		2		—		2
BBB	3		—		1		33		2		39
BIG	30		191		14		602		104		941
Total exposures	$	50	$	318	$	30	$	1,100	$	276	$	1,774

Distribution of U.S. RMBS by Year Insured and Type of Exposure


Year insured:	Prime First Lien		Alt-A First Lien		Option ARMs		Subprime First Lien		Second Lien		Total Net Par Outstanding
2004 and prior	$	8	$	7	$	—	$	301	$	9	$	325
2005	21		110		14		178		40		363
2006	21		22		1		37		93		174
2007	—		179		15		554		134		882
2008	—		—		—		30		—		30
Total exposures	$	50	$	318	$	30	$	1,100	$	276	$	1,774

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding, internal ratings and a description of sectors.

Assured Guaranty Ltd.

Direct Pooled Corporate Obligations Profile

As of December 31, 2023

(dollars in millions)

Distribution of Direct Pooled Corporate Obligations by Ratings


	Net Par Outstanding		% of Total		Average Initial Credit Enhancement	Average Current Credit Enhancement
Ratings:
AAA	$	794	75.2	%	41.7%	50.8%
AA	114		10.8		37.7%	39.3%
A	119		11.3		47.4%	55.2%
BBB	29		2.7		41.7%	45.4%
Total exposures	$	1,056	100.0	%	41.9%	49.9%

Distribution of Direct Pooled Corporate Obligations by Asset Class


	Net Par Outstanding		% of Total		Average Initial Credit Enhancement	Average. Current Credit Enhancement	Number of Transactions
Asset class:
Trust preferred
Banks and insurance	$	333	31.5	%	43.3%	64.5%	12
U.S. mortgage and real estate investment trusts	79		7.5		47.3%	65.0%	3
CLOs	644		61.0		40.5%	40.6%	8
Total exposures	$	1,056	100.0	%	41.9%	49.9%	23

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (1 of 3)

(dollars in millions)

BIG Exposures by Asset Exposure Type


	As of
	December 31, 2023		December 31, 2022
U.S. public finance:
Healthcare	$	1,079	$	1,085
Municipal utilities	914		1,025
Tax backed	503		889
General obligation	286		337
Transportation	109		109
Higher education	100		107
Housing revenue	70		73
Investor-owned utilities	47		—
Infrastructure finance	45		46
Other public finance	118		125
Total U.S. public finance	3,271		3,796
Non-U.S. public finance:
Infrastructure finance	815		911
Renewable energy	271		18
Sovereign and sub-sovereign	45		52
Total non-U.S. public finance	1,131		981
Total public finance	4,402		4,777

U.S. structured finance:
RMBS	941		1,010
Consumer receivables	52		60
Insurance securitizations	40		40
Other structured finance	2		5
Total U.S. structured finance	1,035		1,115
Non-U.S. structured finance:
Total non-U.S. structured finance	—		—
Total structured finance	1,035		1,115
Total BIG net par outstanding	$	5,437	$	5,892

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (2 of 3)

(dollars in millions)

Net Par Outstanding by BIG Category (1)


	As of
	December 31, 2023		December 31, 2022
BIG Category 1
U.S. public finance	$	1,257	$	2,364
Non-U.S. public finance	1,131		981
U.S. structured finance	22		18
Non-U.S. structured finance	—		—
Total BIG Category 1	2,410		3,363
BIG Category 2
U.S. public finance	926		108
Non-U.S. public finance	—		—
U.S. structured finance	63		73
Non-U.S. structured finance	—		—
Total BIG Category 2	989		181
BIG Category 3
U.S. public finance	1,088		1,324
Non-U.S. public finance	—		—
U.S. structured finance	950		1,024
Non-U.S. structured finance	—		—
Total BIG Category 3	2,038		2,348
BIG Total	$	5,437	$	5,892

1) Assured Guaranty's surveillance department is responsible for monitoring the Company's portfolio of credits and maintains a list of BIG credits. BIG Category 1: Below-investment-grade transactions showing sufficient deterioration to make future losses possible, but for which none are currently expected. BIG Category 2: Below-investment-grade transactions for which future losses are expected but for which no claims (other than liquidity claims which are claims that the Company expects to be reimbursed within one year) have yet been paid. BIG Category 3: Below-investment-grade transactions for which future losses are expected and on which claims (other than liquidity claims) have been paid.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (3 of 3)

As of December 31, 2023

(dollars in millions)

Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million

Net Par Outstanding

Internal Rating (1)

60+ Day Delinquencies

Name or description

U.S. public finance:

ProMedica Healthcare Obligated Group, Ohio

820

BB-

Puerto Rico Electric Power Authority

624

CCC

Puerto Rico Highways & Transportation Authority

372

CCC

OU Health (Medicine), Oklahoma

253

BB+

Jackson Water & Sewer System, Mississippi

157

Puerto Rico Municipal Finance Agency

108

CCC

Stockton City, California

New Jersey City University

Harrisburg Parking System, Pennsylvania

San Jacinto River Authority (GRP Project), Texas

BB+

Indiana University of Pennsylvania, Pennsylvania

CCC

Total U.S. public finance

2,707

Non-U.S. public finance:

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

531

B+

Q Energy - Phase III - FSL Issuer, S.A.U.

271

Road Management Services PLC (A13 Highway)

125

B+

Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc

122

BB+

Total non-U.S. public finance

1,049

Total public finance

3,756

U.S. structured finance:

RMBS:

Option One 2007-FXD2

106

CCC

14.9%

Option One Mortgage Loan Trust 2007-Hl1

CCC

25.0%

Argent Securities Inc. 2005-W4

CCC

11.5%

Nomura Asset Accept. Corp. 2007-1

CCC

15.7%

New Century 2005-A

CCC

10.6%

Total RMBS-U.S. structured finance

406

Total non-U.S. structured finance

—

Total structured finance

406

Total

4,162

1) Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (1 of 3)

As of December 31, 2023

(dollars in millions)

50 Largest U.S. Public Finance Exposures by Revenue Source

Credit Name:

Net Par Outstanding

Internal Rating(1)

New Jersey (State of)

2,905

BBB

Pennsylvania (Commonwealth of)

2,196

BBB+

Metro Washington Airports Authority (Dulles Toll Road)

1,633

BBB+

New York Metropolitan Transportation Authority

1,481

A-

New York Power Authority

1,460

AA-

Foothill/Eastern Transportation Corridor Agency, California

1,326

BBB+

Alameda Corridor Transportation Authority, California

1,309

BBB+

North Texas Tollway Authority

1,295

A+

CommonSpirit Health, Illinois

1,000

A-

San Joaquin Hills Transportation, California

988

BBB

Lower Colorado River Authority

976

Yankee Stadium LLC New York City Industrial Development Authority

932

BBB

Illinois (State of)

927

BBB

Municipal Electric Authority of Georgia

909

BBB+

San Diego Family Housing, LLC

896

Philadelphia School District, Pennsylvania

891

A-

Chicago Water, Illinois

864

BBB+

Montefiore Medical Center, New York

837

BBB-

ProMedica Healthcare Obligated Group, Ohio

820

BB-

Metropolitan Pier and Exposition Authority, Illinois

811

BBB-

JFK New Terminal One, New York

800

BBB-

Dade County Seaport, Florida

795

A-

Jefferson County Alabama Sewer

784

BBB

Houston Airport System, Texas

783

Great Lakes Water Authority (Sewerage), Michigan

769

A-

Pittsburgh Water & Sewer, Pennsylvania

766

A-

California (State of)

757

AA-

Chicago Public Schools, Illinois

746

BBB-

Wisconsin (State of)

739

Tucson (City of), Arizona

719

A+

South Carolina Public Service Authority - Santee Cooper

711

BBB

Nassau County, New York

710

AA-

Massachusetts (Commonwealth of) Water Resources

704

New York (City of), New York

698

AA-

Central Florida Expressway Authority, Florida

698

A+

Anaheim (City of), California

674

A-

Pennsylvania Turnpike Commission

670

A-

Clark County School District, Nevada

669

A-

Philadelphia (City of), Pennsylvania

657

A-

LaGuardia Gateway Partners, LLC

638

BBB-

North Carolina Turnpike Authority

638

BBB

Chicago (City of) Wastewater Transmission, Illinois

634

BBB+

Puerto Rico Electric Power Authority

624

CCC

Maine (State of)

621

Pittsburgh International Airport, Pennsylvania

612

A-

Mets Queens Ballpark

607

BBB

Private Transaction

598

BBB-

Westchester Medical Center

580

BBB-

Oglethorpe Power Corporation, Georgia

575

BBB

Chicago-O'Hare International Airport, Illinois

570

A-

Total top 50 U.S. public finance exposures

45,002

1) Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (2 of 3)

As of December 31, 2023

(dollars in millions)

25 Largest U.S. Structured Finance Exposures

Credit Name:

Net Par Outstanding

Internal Rating(1)

Private US Insurance Securitization

1,100

Private US Insurance Securitization

950

A+

Private US Insurance Securitization

944

AA-

Private US Insurance Securitization

399

AA-

Private US Insurance Securitization

399

AA-

Private US Insurance Securitization

386

AA-

SLM Student Loan Trust 2007-A

163

Private Middle Market CLO

129

AAA

Private US Insurance Securitization

125

DB Master Finance LLC

119

BBB

Option One 2007-FXD2

106

CCC

CWABS 2007-4

102

BBB

Private Balloon Note Guarantee

100

Option One Mortgage Loan Trust 2007-Hl1

CCC

Argent Securities Inc. 2005-W4

CCC

CAPCO - Excess SIPC Excess of Loss Reinsurance

BBB

Private Balloon Note Guarantee

BBB

Private Other Structured Finance Transaction

A-

Nomura Asset Accept. Corp. 2007-1

CCC

ALESCO Preferred Funding XIII, Ltd.

AAA

CWALT Alternative Loan Trust 2007-HY9

BBB+

Alesco Preferred Funding XVI, Ltd.

New Century 2005-A

CCC

Private Balloon Note Guarantee

ACE 2007-SL1

CCC

Total top 25 U.S. structured finance exposures

5,761

1) Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (3 of 3)

As of December 31, 2023

(dollars in millions)

50 Largest Non-U.S. Exposures by Revenue Source

Credit Name:

Country

Net Par Outstanding

Internal Rating

Southern Water Services Limited

United Kingdom

2,409

BBB

Thames Water Utilities Finance PLC

United Kingdom

2,106

BBB

Southern Gas Networks PLC

United Kingdom

2,065

BBB+

Dwr Cymru Financing Limited

United Kingdom

1,834

A-

Anglian Water Services Financing PLC

United Kingdom

1,732

A-

National Grid Gas PLC

United Kingdom

1,632

A-

Quebec Province

Canada

1,436

AA-

Channel Link Enterprises Finance PLC

France, United Kingdom

1,257

BBB

Yorkshire Water Services Finance Plc

United Kingdom

1,087

BBB

British Broadcasting Corporation (BBC)

United Kingdom

1,042

A+

Capital Hospitals (Issuer) PLC

United Kingdom

1,002

BBB-

Verbund, Lease and Sublease of Hydro-Electric Equipment

Austria

914

AAA

Aspire Defence Finance plc

United Kingdom

751

BBB+

National Grid Company PLC

United Kingdom

728

BBB+

Verdun Participations 2 S.A.S.

France

724

BBB-

Severn Trent Water Utilities Finance Plc

United Kingdom

658

BBB+

Envestra Limited

Australia

631

A-

Heathrow Funding Limited

United Kingdom

599

BBB

Campania Region - Healthcare receivable

Italy

576

BBB-

Wessex Water Services Finance Plc

United Kingdom

570

BBB+

United Utilities Water PLC

United Kingdom

568

A-

Private International Sub-Sovereign Transaction

United Kingdom

556

A+

University of Sussex

United Kingdom

536

BBB

Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc

United Kingdom

531

B+

South East Water

United Kingdom

523

BBB

NewHospitals (St Helens & Knowsley) Finance PLC

United Kingdom

517

BBB+

South West Water UK

United Kingdom

504

BBB+

North Staffordshire PFI, 32-year EIB Index-Linked Facility

United Kingdom

502

BBB-

Central Nottinghamshire Hospitals PLC

United Kingdom

499

BBB-

Sydney Airport Finance Company

Australia

475

BBB+

Derby Healthcare PLC

United Kingdom

468

BBB

The Hospital Company (QAH Portsmouth) Limited

United Kingdom

455

BBB

University of Essex, United Kingdom

United Kingdom

405

BBB+

International Infrastructure Pool

United Kingdom

378

AAA

International Infrastructure Pool

United Kingdom

378

AAA

International Infrastructure Pool

United Kingdom

378

AAA

South Lanarkshire Schools

United Kingdom

370

BBB

Western Power Distribution (South West) PLC

United Kingdom

338

BBB+

Catalyst Healthcare (Romford) Financing PLC

United Kingdom

327

BBB

Comision Federal De Electricidad (CFE) El Cajon Project

Mexico

325

BBB-

Northumbrian Water PLC

United Kingdom

322

BBB+

Private International Sub-Sovereign Transaction

United Kingdom

316

Japan Expressway Holding and Debt Repayment Agency

Japan

313

A+

Q Energy - Phase II - Pride Investments, S.A.

Spain

298

BBB

Hypersol Solar Inversiones, S.A.U.

Spain

292

BBB

Sutton and East Surrey Water plc

United Kingdom

291

BBB

Bakethin Finance Plc

United Kingdom

289

A-

Feria Muestrario Internacional de Valencia

Spain

287

BBB-

Western Power Distribution (South Wales) PLC

United Kingdom

286

BBB+

Portsmouth Water, United Kingdom

United Kingdom

281

BBB

Total top 50 non-U.S. exposures

35,761

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Asset Management Segment

Assured Guaranty Ltd.

Asset Management Segment Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022

Segment revenues	$	5	$	24	$	76	$	112
Segment expenses	3		28		78		119
Equity in earnings (losses) of investees	5		—		5		—
Segment adjusted operating income (loss) before income taxes	7		(4)		3		(7)
Less: Provision (benefit) for income taxes	1		(1)		—		(1)
Segment adjusted operating income (loss)	$	6	$	(3)	$	3	$	(6)

			As of December 31,				As of December 31,
			2023				2022

Assets under management (AUM)			$	—			$	17,464

Corporate Division

Assured Guaranty Ltd.

Corporate Division Results

(dollars in millions)


	Three Months Ended				Year Ended
	December 31,				December 31,
	2023		2022		2023		2022
Revenues
Gain on sale of asset management subsidiaries	$	7	$	—	$	262	$	—
Other	5		1		13		4
Total revenues	12		1		275		4

Expenses
Interest expense	26		23		99		89
Employee compensation and benefit expenses	10		10		38		30
Other operating expenses	15		6		79		24
Total expenses	51		39		216		143
Adjusted operating income (loss) before income taxes	(39)		(38)		59		(139)
Less: Provision (benefit) for income taxes	(23)		(2)		14		(5)
Adjusted operating income (loss)	$	(16)	$	(36)	$	45	$	(134)

Other

Assured Guaranty Ltd.

Other Results (1 of 2)

(dollars in millions)


	Three Months Ended December 31, 2023
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
	(in millions)
Revenues

Net investment income	$	(1)	$	—	$	(3)	$	(4)

Fair value gains (losses) on FG VIEs	10		—		—		10
Fair value gains (losses) on CIVs	—		28		—		28

Other income (loss)	(1)		—		—		(1)
Total revenues	8		28		(3)		33
Expenses
Loss expense (benefit)	(3)		—		—		(3)
Interest expense	—		—		(3)		(3)

Total expenses	(3)		—		(3)		(6)
Equity in earnings (losses) of investees	—		(24)		—		(24)
Adjusted operating income (loss) before income taxes	11		4		—		15
Less: Provision (benefit) for income taxes	2		1		—		3
Less: Noncontrolling interests	—		3		—		3
Adjusted operating income (loss)	$	9	$	—	$	—	$	9


	Three Months Ended December 31, 2022
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
	(in millions)
Revenues

Net investment income	$	(1)	$	—	$	(2)	$	(3)
Asset management fees	—		(6)		8		2
Fair value gains (losses) on FG VIEs	(5)		—		—		(5)
Fair value gains (losses) on CIVs	—		(8)		—		(8)
Foreign exchange gains (losses) on remeasurement	—		(3)		—		(3)
Other income (loss)	—		(3)		—		(3)
Total revenues	(6)		(20)		6		(20)
Expenses

Interest expense	—		—		(3)		(3)
Other operating expenses	—		(1)		9		8
Total expenses	—		(1)		6		5
Equity in earnings (losses) of investees	—		(3)		—		(3)
Adjusted operating income (loss) before income taxes	(6)		(22)		—		(28)
Less: Provision (benefit) for income taxes	(1)		(2)		—		(3)
Less: Noncontrolling interests	—		(12)		—		(12)
Adjusted operating income (loss)	$	(5)	$	(8)	$	—	$	(13)

Assured Guaranty Ltd.

Other Results (2 of 2)

(dollars in millions)


	Year Ended December 31, 2023
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
	(in millions)
Revenues
Net earned premiums	$	(3)	$	—	$	—	$	(3)
Net investment income	(3)		—		(10)		(13)
Asset management fees	—		(25)		14		(11)
Fair value gains (losses) on FG VIEs	8		—		—		8
Fair value gains (losses) on CIVs	—		88		—		88
Foreign exchange gains (losses) on remeasurement	—		(1)		—		(1)
Other income (loss)	(4)		(3)		—		(7)
Total revenues	(2)		59		4		61
Expenses
Loss expense (benefit)	3		—		—		3
Interest expense	—		—		(10)		(10)
Other operating expenses	—		(1)		14		13
Total expenses	3		(1)		4		6
Equity in earnings (losses) of investees	—		(59)		—		(59)
Adjusted operating income (loss) before income taxes	(5)		1		—		(4)
Less: Provision (benefit) for income taxes	(1)		(4)		—		(5)
Less: Noncontrolling interests	—		22		—		22
Adjusted operating income (loss)	$	(4)	$	(17)	$	—	$	(21)


	Year Ended December 31, 2022
	FG VIEs		CIVs		Intersegment Eliminations and Reclassifications		Total Other
	(in millions)
Revenues
Net earned premiums	$	(3)	$	—	$	—	$	(3)
Net investment income	(4)		—		(9)		(13)
Asset management fees	—		(35)		22		(13)
Fair value gains (losses) on FG VIEs	22		—		—		22
Fair value gains (losses) on CIVs	—		17		—		17
Foreign exchange gains (losses) on remeasurement	—		4		—		4
Other income (loss)	(2)		2		—		—
Total revenues	13		(12)		13		14
Expenses
Loss expense (benefit)	8		—		—		8
Interest expense	—		—		(10)		(10)
Other operating expenses	—		(2)		23		21
Total expenses	8		(2)		13		19
Equity in earnings (losses) of investees	—		12		—		12
Adjusted operating income (loss) before income taxes	5		2		—		7
Less: Provision (benefit) for income taxes	1		(1)		—		—
Less: Noncontrolling interests	—		13		—		13
Adjusted operating income (loss)	$	4	$	(10)	$	—	$	(6)

Summary

Assured Guaranty Ltd.

Summary of Financial and Statistical Data

(dollars in millions, except per share amounts)


			Year Ended December 31,
			2023			2022			2021			2020			2019
GAAP Summary Statements of Operations Data
	Net earned premiums		$	344		$	494		$	414		$	485		$	476
	Net investment income		365			269			269			297			378
	Total expenses		733			536			465			729			503
	Income (loss) before income taxes		640			187			383			386			460
	Net income (loss) attributable to AGL		739			124			389			362			402
	Net income (loss) attributable to AGL per diluted share		12.30			1.92			5.23			4.19			4.00

GAAP Summary Balance Sheet Data
	Total investments and cash		$	9,212		$	8,472		$	9,728		$	10,000		$	10,409
	Total assets		12,539			16,843			18,208			15,334			14,326
	Unearned premium reserve		3,658			3,620			3,716			3,735			3,736
	Loss and LAE reserve		376			296			869			1,088			1,050
	Long-term debt		1,694			1,675			1,673			1,224			1,235
	Shareholders’ equity attributable to AGL		5,713			5,064			6,292			6,643			6,639
	Shareholders’ equity attributable to AGL per share		101.63			85.80			93.19			85.66			71.18

Other Financial Information (GAAP Basis)
	Financial guaranty:
	Net debt service outstanding (end of period)		$	397,636		$	369,951		$	367,360		$	366,233		$	374,130
	Gross debt service outstanding (end of period)		398,037			370,172			367,770			366,692			375,776
	Net par outstanding (end of period)		249,153			233,258			236,392			234,153			236,807
	Gross par outstanding (end of period)		249,535			233,438			236,765			234,571			238,156

Other Financial Information (Statutory Basis) (1)
	Financial guaranty:
	Net debt service outstanding (end of period)		$	396,448		$	366,883		$	362,013		$	360,392		$	367,630
	Gross debt service outstanding (end of period)		396,849			367,103			362,423			360,852			369,251
	Net par outstanding (end of period)		247,833			230,294			231,742			229,008			230,984
	Gross par outstanding (end of period)		248,215			230,474			232,115			229,426			232,333

Claims-paying resources (2)
	Policyholders' surplus		$	4,807		$	5,155		$	5,572		$	5,077		$	5,056
	Contingency reserve		1,296			1,202			1,225			1,557			1,607
	Qualified statutory capital		6,103			6,357			6,797			6,634			6,663
	Unearned premium reserve and net deferred ceding commission income		2,955			2,941			2,972			2,983			2,961
	Loss and LAE reserves		145			165			167			202			529
	Total policyholders' surplus and reserves		9,203			9,463			9,936			9,819			10,153
	Present value of installment premium		1,062			955			883			858			804
	CCS and standby line of credit		400			400			400			400			400
	Total claims-paying resources		$	10,665		$	10,818		$	11,219		$	11,077		$	11,357

	Ratios:
		Net exposure to qualified statutory capital	41		:1	36		:1	34		:1	35		:1	35		:1
		Capital ratio	66		:1	58		:1	53		:1	54		:1	55		:1
		Financial resources ratio	37		:1	34		:1	32		:1	33		:1	32		:1
		Adjusted statutory net exposure to claims-paying resources	24		:1	21		:1	21		:1	21		:1	20		:1

Par and Debt Service Written (Financial Guaranty and Specialty)
	Gross debt service written:
		Public finance - U.S.	$	41,902		$	36,954		$	35,572		$	33,596		$	28,054
		Public finance - non-U.S.	3,286			756			1,890			1,860			17,907
		Structured finance - U.S.	2,130			1,120			1,319			508			1,704
		Structured finance - non-U.S.	3,084			551			431			254			88
	Total gross debt service written		$	50,402		$	39,381		$	39,212		$	36,218		$	47,753

	Net debt service written		$	50,402		$	39,381		$	39,212		$	35,965		$	47,731
	Net par written		28,960			22,047			26,656			23,012			24,331
	Gross par written		28,960			22,047			26,656			23,265			24,353

1) Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.

2) See page 19 for additional detail on claims-paying resources.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations(1) (1 of 2)

(dollars in millions, except per share amounts)


	Year Ended December 31,
	2023		2022		2021		2020		2019
Total GWP	$	357	$	360	$	377	$	454	$	677
Less: Installment GWP and other GAAP adjustments (2)	247		145		158		191		469
Upfront GWP	110		215		219		263		208
Plus: Installment premiums and other(3)	294		160		142		127		361
Total PVP	$	404	$	375	$	361	$	390	$	569

PVP:
Public finance - U.S.	$	212	$	257	$	235	$	292	$	201
Public finance - non-U.S.	83		68		79		82		308
Structured finance - U.S.	68		43		42		14		53
Structured finance - non-U.S.	41		7		5		2		7
Total PVP	$	404	$	375	$	361	$	390	$	569

Adjusted operating income reconciliation:
Net income (loss) attributable to AGL	$	739	$	124	$	389	$	362	$	402
Less pre-tax adjustments:
Realized gains (losses) on investments	(14)		(56)		15		18		22
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	106		(18)		(64)		65		(10)
Fair value gains (losses) on CCS	(35)		24		(28)		(1)		(22)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	51		(110)		(21)		42		22
Total pre-tax adjustments	108		(160)		(98)		124		12
Less tax effect on pre-tax adjustments	(17)		17		17		(18)		(1)
Adjusted operating income (loss)	$	648	$	267	$	470	$	256	$	391

Adjusted operating income per diluted share reconciliation:
Net income (loss) attributable to AGL per diluted share	$	12.30	$	1.92	$	5.23	$	4.19	$	4.00
Less pre-tax adjustments:
Realized gains (losses) on investments	(0.23)		(0.87)		0.20		0.21		0.22
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	1.75		(0.27)		(0.85)		0.75		(0.11)
Fair value gains (losses) on CCS	(0.57)		0.37		(0.38)		(0.01)		(0.22)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	0.84		(1.72)		(0.29)		0.49		0.21
Total pre-tax adjustments	1.79		(2.49)		(1.32)		1.44		0.10
Tax effect on pre-tax adjustments	(0.27)		0.27		0.23		(0.22)		(0.01)
Adjusted operating income (loss) per diluted share	$	10.78	$	4.14	$	6.32	$	2.97	$	3.91

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

3) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

Assured Guaranty Ltd.

Summary of GAAP to Non-GAAP Reconciliations (1) (2 of 2)

(dollars in millions, except per share amounts)


	As of December 31,
	2023		2022		2021		2020		2019
Adjusted book value reconciliation:
Shareholders’ equity attributable to AGL	$	5,713	$	5,064	$	6,292	$	6,643	$	6,639
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	34		(71)		(54)		9		(56)
Fair value gains (losses) on CCS	13		47		23		52		52
Unrealized gain (loss) on investment portfolio	(361)		(523)		404		611		486
Less taxes	37		68		(72)		(116)		(89)
Adjusted operating shareholders’ equity	5,990		5,543		5,991		6,087		6,246
Pre-tax adjustments:
Less: Deferred acquisition costs	161		147		131		119		111
Plus: Net present value of estimated net future revenue	199		157		160		182		206
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed	3,436		3,428		3,402		3,355		3,296
Plus taxes	(699)		(602)		(599)		(597)		(590)
Adjusted book value	$	8,765	$	8,379	$	8,823	$	8,908	$	9,047

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $(1), $(4), $(5), $- and $(2))	$	5	$	17	$	32	$	2	$	7
Adjusted book value (net of tax (provision) benefit of $0, $(3), $(3), $2 and $1)	$	—	$	11	$	23	$	(8)	$	(4)

Adjusted book value per share reconciliation:
Shareholders’ equity attributable to AGL per share	$	101.63	$	85.80	$	93.19	$	85.66	$	71.18
Less pre-tax adjustments:
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives	0.61		(1.21)		(0.80)		0.12		(0.60)
Fair value gains (losses) on CCS	0.22		0.80		0.34		0.66		0.56
Unrealized gain (loss) on investment portfolio	(6.40)		(8.86)		5.99		7.89		5.21
Less taxes	0.66		1.15		(1.07)		(1.50)		(0.95)
Adjusted operating shareholders’ equity per share	106.54		93.92		88.73		78.49		66.96
Pre-tax adjustments:
Less: Deferred acquisition costs	2.87		2.48		1.95		1.54		1.19
Plus: Net present value of estimated net future revenue	3.54		2.66		2.37		2.35		2.20
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed	61.12		58.10		50.40		43.27		35.34
Plus taxes	(12.41)		(10.22)		(8.88)		(7.70)		(6.32)
Adjusted book value per share	$	155.92	$	141.98	$	130.67	$	114.87	$	96.99

Gain (loss) related to FG VIE and CIV consolidation included in:
Adjusted operating shareholders' equity per share	$	0.07	$	0.28	$	0.47	$	0.03	$	0.07
Adjusted book value per share	$	—	$	0.19	$	0.34	$	(0.10)	$	(0.05)

1) See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Glossary

Financial Guaranty Insurance

Net Par Outstanding and Internal Ratings

Net Par Outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.

Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.

Statutory Net Par and Net Debt Service Outstanding. Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).

Performance Indicators

The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:

60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.

Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’s exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.

Sectors

Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2023.

U.S. Public Finance:

General Obligation Bonds are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.

Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.

Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

Transportation Bonds include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

Healthcare Bonds are obligations of healthcare facilities, including community based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

Glossary (continued)

Sectors (continued)

Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.

Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

Investor-Owned Utility Bonds are obligations primarily issued by investor-owned utilities, and include first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, as well as sale-leaseback obligation bonds supported by such entities.

Renewable Energy Bonds are obligations backed by revenue from renewable energy sources.

Other Public Finance Bonds include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, and obligations of some not-for-profit organizations.

Non-U.S. Public Finance:

Regulated Utility Obligations are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities’ customers. The majority of the Company’s non-U.S. regulated utility business is conducted in the U.K.

Infrastructure Finance Obligations are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodations, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company’s non-U.S. infrastructure business is conducted in the U.K.

Sovereign and Sub-Sovereign Obligations primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.

Renewable Energy Bonds are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company’s non-U.S. renewable energy business is conducted in Spain.

Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.

Structured Finance:

Insurance Securitizations are transactions, including life insurance transactions, where obligations are secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

Residential Mortgage-Backed Securities (RMBS) are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including “prime,” “subprime” and “Alt-A.” A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008.

Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in “tranches,” with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.

Subscription Finance Facilities are lending facilities provided to closed-end private market funds, most frequently private-equity funds. The facilities are secured by the uncalled capital commitments of the limited partners (LP) to the fund. The Company may guarantee new or existing facilities and on a single facility or portfolio basis. Assured Guaranty’s exposures are generally to facilities with characteristics that include a high-quality fund sponsor with strong historical performance, diverse LP base composed primarily of institutional LPs and experienced bank lenders.

Glossary (continued)

Sectors (continued)

Financial Products Business is the guaranteed investment contracts (GICs) portion of a line of business previously conducted by Assured Guaranty Municipal Holdings Inc. (AGMH) that the Company did not acquire when it purchased AGMH in 2009 from Dexia SA and that is being run off. That line of business consisted of AGMH’s GIC business, its medium term notes business and the equity payment agreements associated with AGMH’s leveraged lease business. Although Dexia SA and certain of its affiliates (Dexia) assumed the liabilities related to such businesses when the Company purchased AGMH, AGM policies related to such businesses remained outstanding. Assured Guaranty is indemnified by Dexia against loss from the former financial products business.

Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables.

Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other U.S. and Non-U.S. Structured Finance Obligations categories above.

Specialty Business

The Company also guarantees specialty business with similar risk profiles to its structured finance exposures written in financial guaranty form. Specialty business includes, for example, excess-of-loss guarantees of minimum amount of billed rent on diversified portfolios of real estate properties, insurance securitizations and aircraft residual value insurance (RVI) transactions.

Non-GAAP Financial Measures

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include:

•FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and

•CIVs in which certain subsidiaries invest.

Adjusted Operating Income: Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

Non-GAAP Financial Measures (continued)

5) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Adjusted Operating Shareholders’ Equity and Adjusted Book Value: Management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:

4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2) Addition of the net present value of estimated net future revenue. See below.

4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Non-GAAP Financial Measures (continued)

Adjusted Operating Return on Equity (Adjusted Operating ROE): Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL’s share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.

Net Present Value of Estimated Net Future Revenue: Management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

PVP or Present Value of New Business Production: Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.

Assured Guaranty Ltd.

30 Woodbourne Avenue

Hamilton HM 08

Bermuda

(441) 279-5705

www.assuredguaranty.com

Contacts:

Equity and Fixed Income Investors:

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

(212) 339-0861

rtucker@agltd.com

Michael Walker

Managing Director, Fixed Income Investor Relations

(212) 261-5575

mwalker@agltd.com

Andre Thomas

Managing Director, Equity Investor Relations

(212) 339-3551

athomas@agltd.com

Media:

Ashweeta Durani

Vice President, Media Relations

(212) 408-6042

adurani@agltd.com

Cover Page Cover Page	Feb. 27, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Feb. 27, 2024
Entity Registrant Name	ASSURED GUARANTY LTD.
Entity Incorporation, State or Country Code	D0
Entity File Number	001-32141
Entity Tax Identification Number	98-0429991
Entity Address, Address Line One	30 Woodbourne Avenue
Entity Address, City or Town	Hamilton
Entity Address, Postal Zip Code	HM 08
Entity Address, Country	BM
City Area Code	441
Local Phone Number	279-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0001273813
Common Shares \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Common Shares
Trading Symbol	AGO
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 6.125% Senior Notes Due 2028 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 6.125% Senior Notes due 2028 (and the related guarantee of Registrant)
Trading Symbol	AGO/28
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant)
Trading Symbol	AGO/31
Security Exchange Name	NYSE
Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 \| New York Stock Exchange
Entity Information [Line Items]
Title of 12(b) Security	Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant)
Trading Symbol	AGO/51
Security Exchange Name	NYSE

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