Assured Guaranty starts the year strong with 35% y-o-y net income increase

Assured Guaranty has announced its financial results for the first quarter of 2024, reporting an increased net income of $109 million compared to the $81 million reported in the same period the year prior.

Adjusted operating income was also up, to $113 million for Q1 2024, compared to $68 million Q1 2023.

Dominic Frederico, President and CEO, said: “Assured Guaranty produced excellent first quarter 2024 results. First quarter net income increased 35% year over year, and adjusted operating income increased 66%.

“Shareholders’ equity per share, adjusted operating shareholders’ equity per share, and adjusted book value per share all reached record levels of $102.19, $107.69 and $157.31, respectively. New business written produced $61 million of GWP and $63 million of PVP, reflecting strong production in U.S. public finance and global structured finance.”

The insurance segment’s net earned premiums and credit derivative revenues for this year’s first quarter significantly increased compared to Q1 2023, to $122 million from $84 million.

According to Assured, this increase was primarily due to a large refunded transaction in first quarter 2024.

Net investment income for the segment was $83 million, a slight increase compared to the $82 million in reported Q1 2023, this change was the result of higher short-term interest rates and average balances, partially offset by lower income on loss mitigation securities.

Fair value gains on trading securities also saw an improvement as the firm reported $26 million compared to a loss of $2 million in the prior year quarter.

Assured Guaranty also reported an adjusted operating income of $113 million for Q1 2023, a 66% increase compared to the $68 million reported in Q1 2023.

This figure included $149 million from the insurance segment, $ million from the asset management segment and a loss of $37 million from the corporate division.

Frederico added: “In U.S. public finance, we continued to lead the bond insurance industry in primary market par sold. Premiums were strong in the first quarter, with new municipal business producing approximately twice as much GWP and PVP as in last year’s first quarter, on a similar amount of gross par written, due to several large transportation revenue issuances this year.”

He concluded: “In April of this year, we celebrated the 20th anniversary of our IPO. Since that time through the end of the first quarter, our share price has increased almost 385%, more than those of the S&P 500 Financials, the S&P 500, the Dow Jones Industrial Average and the NYSE Composite Index, and we have paid common share dividends of $1 billion.

“For 2024, we have ramped up our share repurchase program, repurchasing $129 million of common shares in the first quarter alone, which equals 2.7% of our shares outstanding on December 31, 2023.”

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