Created: Aug 05, 2022 07:54 AM
Assured Guaranty Ltd, the bond insurer based in Bermuda, has reported a net loss of $47 million for the second quarter of the year.
That result includes after-tax losses of $63 million related to foreign exchange remeasurement, $27 million on alternative investments, $25 million on available-for-sale investments, and $15 million on trading securities.
Shareholders’ equity attributable to Assured Guaranty Ltd per share was $84.89 as of June 30.
Adjusted operating income was $30 million for the second quarter.
Adjusted operating shareholders’ equity per share and adjusted book value per share were $90.18 and $134.91, respectively.
Second quarter capital returned to shareholders was $167 million, including the repurchase of 2.6 million shares for $151 million, and dividends of $16 million.
Insurance segment adjusted operating income was $55 million for the quarter, which includes after-tax losses of $27 million on alternative investments, and $15 million on trading securities.
Gross written premiums were $65 million.
Present value of new business production was $76 million.
Asset management segment adjusted operating results were break even for the second quarter.
Assets under management inflows were $1.3 billion in the quarter.
President and CEO Dominic Frederico said: “While Assured Guaranty’s June 30 shareholders’ equity per share was impacted by unrealised losses in the investment portfolio due largely to the rising interest rate environment, we achieved the highest per-share levels of adjusted operating shareholders’ equity and adjusted book value in our history.
“New business production in our insurance segment remained strong during both the first half and second quarter, resulting in $135 million of first half gross written premiums and $145 million of first half PVP, derived from all three of our market sectors.
“We again led the US municipal bond insurance market, where industry penetration reached 8.9 per cent of new-issue par sold in second quarter and 8.8 per cent year-to-date.”
Assured Guaranty president and CEO Dominic Frederico (File photograph)