Earning Date, Transcript Summary & Report

Record Year-End Financial Metrics: Assured Guaranty achieved record year-end highs for adjusted book value per share at $170.12, adjusted operating shareholders equity per share at $114.75, and shareholders’ equity per share at $108.80.

Stock Price Increase: The company's common stock share price rose 20% for the year to $90.01, indicating strong market performance.

Share Repurchase Strategy: In 2024, Assured Guaranty repurchased 11% of its common shares outstanding, totaling $500 million, effectively managing excess capital.

Consistent Financial Performance: PVP across the three financial guaranty businesses topped $400 million for the second consecutive year, demonstrating consistent business production.

Public Finance Growth: US public finance originated $270 million in PVP, its highest annual total in four years, reflecting strong demand for their services.

Industry Leadership Recognition: Assured Guaranty insured the winner of the Bond Buyer’s overall 2024 Deal of the Year, showcasing their leadership in the industry.

Geographic Expansion Strategy: The company expanded its geographic reach by opening offices in Australia and Singapore, pursuing further opportunities in Asia.

Insurance Subsidiary Consolidation: The consolidation of their two primary insurance subsidiaries into one has created a more efficient capital structure and a larger insurer with a diversified portfolio.

Alternative Investments Performance: The inception-to-date return on alternative investments was approximately 13% through year-end, indicating strong investment performance.

Litigation Settlement Gain: Assured Guaranty successfully concluded litigation with Lehman Brothers International Europe, recognizing a pre-tax gain of approximately $103 million in Q1 2025.

Dividend Increase Commitment: The company paid $68 million in dividends in 2024 and increased its quarterly dividend per share by 10%, reflecting a commitment to returning value to shareholders.

Operating Income Decline: Adjusted operating income per share decreased significantly from $5.75 in Q4 2023 to $1.27 in Q4 2024, primarily due to non-recurring benefits in the previous year.

Insurance Segment Income Decline: The Insurance segment's adjusted operating income fell from $339 million in Q4 2023 to $98 million in Q4 2024, largely impacted by a prior year tax law change benefit of $189 million.

Rising Loss Expenses: Loss expenses increased from $7 million in Q4 2023 to $31 million in Q4 2024, attributed to lower expected recoveries on long-dated US public finance transactions and increased losses on healthcare transactions.

Operating Income Decline: The company reported a full year adjusted operating income of $389 million in 2024, down from $648 million in 2023, which included significant non-recurring gains.

Corporate Division Operating Loss: The Corporate Division experienced an adjusted operating loss of $34 million in Q4 2024, compared to a $16 million loss in the prior year, which had included a tax benefit.

Decline in Investment Income: Net investment income from loss mitigation securities dropped from $24 million in Q4 2023 to $11 million in Q4 2024, indicating a decline in this revenue stream.

Strategic Exposure Reduction: The company held only 21% of the original notional amount of Puerto Rico Contingent Value Instruments, reflecting a strategic reduction in this exposure.

Financial Performance Comparison: The overall financial performance in 2024 was impacted by the absence of large non-recurring benefits that were present in 2023, leading to a less favorable comparison.