Q4 2025 Assured Guaranty Ltd Earnings Call Transcript
Key Points
- Assured Guaranty Ltd (AGO) achieved new per share highs in key shareholder value metrics, including adjusted book value and shareholders' equity.
- The company reported a significant increase in adjusted operating income per share, rising from $7.10 in 2024 to $9.08 in 2025.
- AGO successfully repurchased 12% of its common shares and increased its quarterly dividend by 12%, marking 14 consecutive years of dividend growth.
- The company's alternative investments performed well, providing an annualized inception-to-date internal rate of return of 13%.
- AGO expanded its business by acquiring Warwick Re Limited, entering the life and annuity reinsurance market, which diversifies revenue sources.
- The mix of business in 2025 resulted in fewer large transactions in the BBB category, impacting the premium generated from municipal par insured.
- While the company increased its insured par in the secondary market, these higher-rated deals produced less premium per dollar of insured par.
- The company's exposure to UK utilities, particularly Thames Water, remains a concern, although efforts are underway to work with the UK government on a solution.
- The alternative investment portfolio, while performing well, includes exposure to CLOs, which may carry market risks.
- Capital allocation to the annuity reinsurance market could potentially impact the company's ability to maintain its $500 million annual buyback target.
Good morning, and welcome to the Assured Guaranty Limited fourth-quarter and full-year 2025 earnings conference call. My name is Becky, and I will be the operator for the call today. (Operator Instructions)
Please note that this event is being recorded. I would now like to turn the conference over to our host, Robert Tucker, Senior Managing Director, Investor Relations and Corporate Communications. Please go ahead.
Thank you, operator, and thank you all for joining Assured Guaranty for our full-year and fourth-quarter 2025 financial results conference call. Today's presentation is made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The presentation may contain forward-looking statements about our new business and credit outlooks, market conditions, credit spreads, financial ratings, loss reserves, financial results and other items that may affect our future results. These statements are subject
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