Assured Guaranty (AGO) Q1 2026 earnings summary

Executive summary

• Adjusted operating income was $115 million ($2.50 per share) for Q1 2026, with net income at $88 million ($1.91 per share), and record adjusted operating shareholders' equity per share of $128.61 and adjusted book value per share of $188.74.

• Gross written premiums doubled year-over-year to $70 million, and new business production (PVP) nearly doubled to $73 million, led by U.S. public finance and global structured finance.

• Asset management contributed $44 million to adjusted operating income, with alternative investments generating $35 million pre-tax and a 12% inception-to-date IRR.

• Expanded into annuity reinsurance through the acquisition and rebranding of Assured Life Re, which contributed $2 million in adjusted operating income and $14 million in revenue.

• Returned $93 million to shareholders in Q1 2026 through $75 million in share repurchases and $18 million in dividends.

Financial highlights

• Net earned premiums were $82 million, and net investment income rose to $92 million, reflecting a shift to higher-yielding corporate securities.

• Adjusted operating ROE was 8.0%, and GAAP ROE was 6.3% for Q1 2026.

• Loss and loss adjustment expenses decreased to $17 million from $40 million year-over-year.

• Economic loss development was $44 million, mainly from Brightline and PREPA.

• Shareholders' equity per share was $124.28 as of March 31, 2026.

Outlook and guidance

• Plans to reduce share repurchases to $30 million over the next quarter to allocate capital for growth in financial guaranty and annuity reinsurance.

• Management expects robust municipal bond issuance and public finance activity, with a strong pipeline and large deals anticipated.

• Anticipated capital needs for life business growth between $50 million and $150 million over 18 months.

• AG Re expects to distribute up to $181 million in dividends in 2026, with a maximum capacity of $292 million, subject to regulatory and asset constraints.