Assured Guaranty Ltd. Reports Results for First Quarter 2021
Assured Guaranty Ltd. (NYSE: AGO) reported financial results for Q1 2021, highlighting key achievements. The company reached settlement agreements addressing over 93% of its Puerto Rico exposures. Shareholder equity measures hit new highs, with adjusted operating income at $43 million. The new business production generated $86 million of PVP, supported by strong U.S. public finance activity. The asset management segment benefited from a resurgence in the CLO market, doubling last year's management fees.
- Achieved over 93% resolution of Puerto Rico exposures.
- Adjusted operating income increased to $43 million.
- New business production reached $86 million in PVP.
- Asset management fees more than doubled compared to Q1 2020.
- Net income for Q1 2021 was only $11 million compared to a loss of $55 million in Q1 2020.
- Weighted average diluted shares increased from 92.6 million to 77.5 million.
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 March 31, 2021 (first quarter 2021).
Commenting on first quarter activity, Dominic Frederico, President and CEO said: “Assured Guaranty has now reached important new consensual settlement agreements relating to Puerto Rico that, combined with a previous agreement, will resolve over
“Additionally,” he continued, “in a quarter when our important shareholder value measures of adjusted operating shareholders' equity per share and adjusted book value per share again achieved new highs, our new business production generated
“The first quarter also saw a resurgence in the global CLO market that benefited our asset management business, which issued two new CLOs during the quarter and continued to sell legacy CLO equity to third parties. CLO management fees for the quarter were more than double those of last year’s first quarter.”
(1) |
All per share information for net income and adjusted operating income is based on diluted shares. |
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(2) |
Please see “Explanation of Non-GAAP Financial Measures.” |
Summary Financial Results (in millions, except per share amounts) |
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Quarter Ended |
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March 31, |
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2021 |
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2020 |
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GAAP |
|
|
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Net income (loss) attributable to AGL |
$ |
11 |
|
|
$ |
(55 |
) |
Net income (loss) attributable to AGL per diluted share |
$ |
0.14 |
|
|
$ |
(0.59 |
) |
Weighted average diluted shares |
77.5 |
|
|
92.6 |
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Non-GAAP |
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|
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Adjusted operating income (loss) (1) (2) |
$ |
43 |
|
|
$ |
33 |
|
Adjusted operating income per diluted share(2) |
$ |
0.55 |
|
|
$ |
0.36 |
|
Weighted average diluted shares |
77.5 |
|
|
93.4 |
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Segment (1) |
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Insurance |
$ |
79 |
|
|
$ |
85 |
|
Asset Management |
(7 |
) |
|
(9 |
) |
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Corporate |
(29 |
) |
|
(39 |
) |
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Other |
— |
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|
(4 |
) |
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Adjusted operating income (loss) |
$ |
43 |
|
|
$ |
33 |
|
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As of |
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March 31, 2021 |
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December 31, 2020 |
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Amount |
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Per Share |
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Amount |
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Per Share |
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Shareholders' equity attributable to AGL |
$ |
6,430 |
|
|
$ |
84.67 |
|
|
$ |
6,643 |
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