Q2 2026 Assured Guaranty Ltd Earnings Call Transcript
Key Points
- Record-high adjusted book value per share of $189.72 and adjusted operating shareholders' equity per share of $129.94, reflecting strong strategic execution.
- New business production (PVP) surged 48% year-over-year to $152 million in the first half of 2026, driven by robust US public finance and global structured finance activity.
- Maintained leadership in US municipal bond insurance, insuring $9.6 billion of new issue par across 423 transactions, including 17 large deals over $100 million.
- Global structured finance PVP more than doubled to $35 million, supported by growth in fund finance and life insurance capital management transactions.
- Strong third-quarter pipeline with $42 million of PVP already committed, including large US public finance deals, a European toll road, and new structured finance counterparties.
- Alternative investments continue to deliver a 12% inception-to-date IRR, significantly outperforming the 4.3% yield on fixed maturity portfolio.
- Ratings affirmed by S&P, KBRA, and Moody's with stable outlooks, highlighting excellent capital, earnings, and liquidity.
- Shareholder returns remain robust with $45 million in buybacks and $17 million in dividends during Q2, totaling $6 billion in repurchases since 2013.
- Adjusted operating income per share growth of 22% was partly offset by a $19 million mark-to-market loss on a CLO equity fund investment, reflecting market volatility.
- Brightline transaction continues to face liquidity pressure, leading to adverse economic loss development, though it did not impact adjusted operating income.
- Thames Water exposure remains a concern, with no significant developments in Q2 and ongoing uncertainty around the resolution.
- Capital allocation is increasingly directed toward growth initiatives like annuity reinsurance and new business, potentially reducing share repurchase capacity.
- The soft capital facility exploration, while a 2026 event, could alter buyback math and create uncertainty for shareholders.
- CLO marks are reported on a one-quarter lag, meaning Q2 volatility could impact Q3 results, adding unpredictability to earnings.
Good morning, and welcome to the Assured Guaranty Limited second quarter 2026 earnings conference call. My name is Kelsey, and I will be the operator for today's call. (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 second quarter 2026 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 or other items that may affect our future results. These statements are subject to change due to new
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