Assured Guaranty Ltd. Reports Third Quarter 2025 Financial Performance and Highlights Continued Growth Momentum
Assured Guaranty Ltd. (NYSE: AGO) (referred to as “AGL,” or collectively with its subsidiaries, “Assured Guaranty” or the “Company”) released its financial results for the three-month period ending September 30, 2025. The results reflect continued progress in strengthening shareholder value, expanding business activity in key guarantee markets, and sustaining strong capital management practices.
During the third quarter and the first nine months of 2025, the Company continued to demonstrate financial resilience and operational performance across its business lines. The Company highlighted that it achieved record levels of shareholders’ equity, adjusted operating shareholders’ equity, and adjusted book value on a per-share basis. These metrics underscore the Company’s ability to compound long-term value, maintain disciplined underwriting, and efficiently manage capital allocation.
For the first nine months of 2025, the Company reported net income of $7.73 per diluted share, representing a 20% increase compared with the same period in 2024. Additionally, adjusted operating income rose to $6.77 per diluted share, which is 17% higher than the prior-year period. These increases were supported by strong premium activity, positive credit performance, and favorable market conditions that allowed the Company to expand its financial guaranty production.
One of the notable operational achievements in the year-to-date period was the performance in the U.S. public finance market. During this timeframe, the Company guaranteed approximately $21 billion in total par amount, marking a record level for the first nine months of any year. This included a significant rise in secondary market municipal guarantee business — the Company insured four times more par amount in the secondary market compared to the first three quarters of 2024.
Third Quarter Business Production Growth
Production results in the third quarter of 2025 further illustrated positive momentum. Across Assured Guaranty’s three main financial guaranty business lines — U.S. public finance, non-U.S. public finance, and global structured finance — the Company reported:
- $75 million in Gross Written Premiums (GWP), representing a 23% increase compared with the third quarter of 2024.
- $91 million in Present Value of New Business Production (PVP), a 44% increase year-over-year.
These results also represent increases of 25% for GWP and 77% for PVP when compared to the average levels recorded in the first two quarters of 2025. The strong third quarter performance was largely driven by a resurgence in triple-B-rated municipal issuances, where Assured Guaranty provided insurance support for several large transactions. This trend reflects continuing demand from municipal issuers seeking to lower borrowing costs through credit enhancement.
The Company also reported positive economic loss development of approximately $38 million during the third quarter. This benefit primarily stemmed from continued improvement in legacy residential mortgage-backed securities (RMBS) exposures and recovery activity in certain non-U.S. public finance credits.
Share Repurchase and Capital Management Strategy
Assured Guaranty continued its capital management initiatives through significant share repurchases. As of November 5, 2025, the Company had repurchased 9.7% of the shares outstanding as of December 31, 2024. On the same date, the Company’s Board of Directors approved an additional $100 million share repurchase authorization, signifying the Company’s ongoing commitment to shareholder return enhancement and confidence in its financial position.
Summary of Financial Results
| Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Net Income Attributable to AGL | $105 million | $171 million |
| Net Income per Diluted Share | $2.18 | $3.17 |
| Adjusted Operating Income | $124 million | $130 million |
| Adjusted Operating Income per Diluted Share | $2.57 | $2.42 |
As of September 30, 2025, shareholders’ equity per share increased to $121.13, up from $108.80 at year-end 2024. Adjusted book value (ABV) per share rose to $181.37, compared with $170.12 at year-end 2024. Both increases were primarily driven by net income, gains in the investment portfolio, and continued share repurchases, partially offset by dividends.
Insurance Segment Performance
The Insurance segment includes credit protection products for U.S. and international public finance markets and structured finance sectors. During the third quarter:
- U.S. public finance production increased meaningfully due to larger transactions in sectors such as healthcare, transportation, and tax-backed financing.
- U.S. municipal secondary market premiums more than quadrupled compared to the same period in 2024.
- Global structured finance activity included higher transaction volume related to bank portfolio protection and subscription financing deals.
Insurance segment adjusted operating income totaled $145 million in Q3 2025, compared to $162 million in Q3 2024. The slight decline was primarily attributed to lower favorable development in RMBS exposures year-over-year, although overall economic development remained positive.
Investment Portfolio Performance
The Company’s investment portfolio continued to deliver stable results. Net investment income Assured rose to $94 million in Q3 2025 from $82 million in Q3 2024, driven by:
- A strategic portfolio shift toward higher-yielding corporate securities.
- Income contributions from collateralized loan obligation (CLO) equity tranches.
- A decline in short-term investment yields and balances partially offsetting these gains.
As of September 30, 2025, Assured Guaranty held $945 million in alternative investments across both the Insurance and Corporate divisions, generating a 13% inception-to-date annualized internal rate of return.
Overall, Assured Guaranty delivered strong financial and operating results in the third quarter of 2025. Record equity levels, robust new business production, positive credit performance, and disciplined capital management reinforce the Company’s ability to navigate evolving market conditions while delivering sustained long-term shareholder value.
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