On August 7, 2024, Assured Guaranty Ltd (AGO, Financial) released its 8-K filing detailing its financial results for the second quarter of 2024. Assured Guaranty Ltd. provides credit protection products to the United States and international public finance and structured finance markets, and manages assets across collateralized loan obligations as well as opportunity funds and liquid funds that build on its corporate credit, asset-based finance, municipal and healthcare experience. The company operates in two segments: the Insurance segment and the Asset Management segment, with the majority of revenue earned from the Insurance segment.
Performance Overview
Assured Guaranty Ltd (AGO, Financial) reported net income attributable to shareholders of $78 million, or $1.41 per share, for the second quarter of 2024. This performance exceeded the analyst estimate of $1.36 per share. The company also reported adjusted operating income of $80 million, or $1.44 per share, surpassing the previous year's $36 million, or $0.60 per share.
Key Financial Achievements
Assured Guaranty Ltd (AGO, Financial) achieved several notable financial milestones in Q2 2024:
- Gross written premiums (GWP) were $132 million.
- Present value of new business production (PVP) was $155 million.
- Shareholders’ equity per share increased to $104.15 from $101.63 as of December 31, 2023.
- Adjusted operating shareholders’ equity per share and adjusted book value (ABV) per share were $109.88 and $161.65, respectively.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net income attributable to AGL | $78 million | $125 million |
| Net income per diluted share | $1.41 | $2.06 |
| Adjusted operating income | $80 million | $36 million |
| Adjusted operating income per diluted share | $1.44 | $0.60 |
Balance Sheet and Cash Flow
As of June 30, 2024, shareholders' equity attributable to Assured Guaranty Ltd (AGO, Financial) was $5.539 billion, down from $5.713 billion at the end of 2023. The company returned $169 million to shareholders in Q2 2024, including $152 million in share repurchases and $17 million in dividends.
Insurance Segment Performance
The Insurance segment reported adjusted operating income of $116 million, up from $106 million in Q2 2023. This increase was driven by lower loss expenses and higher earnings from alternative investments, partially offset by lower fair value gains on trading securities.
Commentary
"We have laid the foundation for an exceptional year in new business production. In the second quarter alone, our U.S. and international public finance and structured finance GWP totaled $132 million, and PVP totaled $155 million. These results were driven by the second best direct GWP and the best direct PVP produced in a second quarter since 2009," said Dominic Frederico, President and CEO.
Analysis
Assured Guaranty Ltd (AGO, Financial) has demonstrated robust financial performance in Q2 2024, exceeding analyst estimates and achieving significant milestones in new business production and shareholder returns. The company's strategic focus on high-quality credit and disciplined pricing has contributed to its strong results. However, challenges such as lower fair value gains on trading securities and potential market volatility remain areas to watch.
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Explore the complete 8-K earnings release (here) from Assured Guaranty Ltd for further details.
