Assured Guaranty Ltd. · NYSE:AGO
Assured Guaranty — Debt Investor Presentation (June 2015)
80 slides from Assured Guaranty's debt investor presentation, Jun 8, 2015
Slide 1: Fixed Income Investor Presentation March 31, 2015
EMBRACE POSSIBILITIES, INVEST IN CERTAINTIES Fixed Income Investor Presentation March 31, 2015
Slide 2: Table of Contents
Table of Contents Page Forward-Looking Statements and Safe Harbor Disclosure 2 Conventions, Disclaimers and Non-GAAP Financial Measures 3 Corporate Overview 4 Assured Guaranty Ltd. Consolidated Insured Portfolio Overview 30 AGM1 Portfolio Review 41 Municipal Assurance Corp. Portfolio Review 53 Assur
Slide 3: Forward-Looking Statements and Safe Harbor Disclosure
Forward-Looking Statements and Safe Harbor Disclosure • This presentation contains information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give the expectations or forecasts of future
Slide 4: Conventions, Disclaimers and Non-GAAP Financial Measures
Conventions, Disclaimers and Non-GAAP Financial Measures • Unless otherwise noted, the following conventions are used in this presentation: – “AGM Consolidated” means Assured Guaranty Municipal Corp. and its consolidated entities (consisting primarily of Assured Guaranty (Europe) Ltd., Municipal Ass
Slide 5: Corporate Overview
ASSURED GUARANTY Corporate Overview
Slide 6: Corporate Overview
Corporate Overview • Assured Guaranty Ltd. (“AGL” and, together with its subsidiaries, “Assured Guaranty” or the “Company”) is the leading financial guaranty franchise – We are the only long-standing financial guaranty company to continue to write new business throughout the financial crisis and rec
Slide 7: Corporate Overview (Continued): Radian Acquisition
Corporate Overview (Continued) Radian Acquisition • On April 1, 2015, AGC acquired Radian Asset Assurance Inc. (Radian Asset) for a cash purchase price of $804.5 million • Immediately following the acquisition, Radian Asset was merged with and into AGC, with AGC as the surviving company – Bonds insu
Slide 8: Operating Principles and Investor and Issuer Benefits
Operating Principles and Investor and Issuer Benefits • Underwriting principles and a strong risk management culture designed to protect our franchise • Experienced and disciplined management • Commitment to disclosure and transparency • Our guaranty benefits investors and issuers because we provide
Slide 9: Strategic Priorities
Strategic Priorities • Exercise underwriting and pricing discipline • Increase penetration in the U.S. public finance market • Increase new business activity in our structured finance and international segments • Maintain strong financial strength ratings • Pursue loss mitigation strategies • Utiliz
Slide 10: Corporate Structure
Assured Guaranty Ltd. Corporate Structure Assured Guaranty Ltd. Hamilton, Bermuda Publicly traded Holding Company (NYSE: AGO) A (stable outlook) / Baa2 (stable outlook) issuer credit ratings Assured Guaranty Finance Assured Guaranty Re Ltd. (AG Re) Overseas Ltd. Financial Guaranty Reinsurance Europe
Slide 11: Four Discrete Operating Companies With Separate Capital Bases
Four Discrete Operating Companies With Separate Capital Bases Consolidated Claims-Paying Resources and Statutory-Basis Exposures As of March 31, 2015 ($ in millions) AGM AGC MAC AG Re8 Eliminations4 Consolidated Claims-paying resources Policyholders' surplus $ 2,211 $ 1,098 $ 618 $ 1,054 $ (878) $ 4
Slide 12: Assured Guaranty Operating Platforms
Assured Guaranty Operating Platforms • Assured Guaranty Municipal1, MAC and AGC operate as three separate direct financial guaranty platforms, with AG Re operating as a reinsurer – Assured Guaranty Municipal1 focuses exclusively on public finance and global infrastructure transactions – MAC insures
Slide 13: Assured Guaranty Operating Platforms (Continued)
Assured Guaranty Operating Platforms (Continued) • Companies distinct for legal and regulatory purposes – Separate insurance licenses – Separate regulators – Assured Guaranty Municipal1 and MAC are domiciled in New York; AGC is domiciled in Maryland – Dividend restrictions – including New York, Mary
Slide 14: Assured Guaranty Municipal's Commitment to the Public Finance Market
Assured Guaranty Municipal’s1 Commitment to the Public Finance Market AGM1 Net Par Outstanding Amortization Current and Projected Year-End Amounts As of March 31, 2015 ($ in billions) • Assured Guaranty Municipal1 is committed to Public Finance Structured Finance insuring only U.S. public finance an
Slide 15: Introduction to MAC
Introduction to MAC MAC was launched in July of 2013 as a municipal-only bond insurer with the positive attributes it takes most start-up companies years to establish. As of March 31, 2015, Municipal Assurance Corp. (MAC) has: • $1.9 billion in claims-paying resources, consisting of $929 million in
Slide 16: AGC is Our Most Diversified Platform
AGC is Our Most Diversified Platform Net Par Outstanding • AGC, a diversified insurer, writes all classes As of March 31, 2015 ($ in billions) of financial guaranty business, including: U.S. public finance, global infrastructure and Non-U.S. Non-U.S. structured finance Public Structured Finance Fina
Slide 17: AG Re's Operating Structure
AG Re’s Operating Structure Net Par Outstanding As of March 31, 2015 ($ in billions) • AG Re is an insurance company primarily engaged in providing Non-U.S. reinsurance to financial guarantors Structured Non-U.S. Finance $1.3 – AG Re is rated AA (stable outlook) by Public A average Finance S&P1 $8.7
Slide 18: Underwriting Discipline
Underwriting Discipline • Our U.S. public finance portfolio, our largest Consolidated Net Par Outstanding exposure category, performed well during the As of March 31, 2015 recession and in subsequent years, despite ($ in billions) persistent financial pressures on municipal U.S. Structured obligors
Slide 19: New Business Production
New Business Production Penetration in the U.S. Public Finance Market • We are focused on building demand for our Assured Guaranty guaranties, both in the primary and the New Issue U.S. Public Finance secondary markets Insured Par Sold and Transaction Penetration1 ($ in millions) – Secondary market
Slide 20: The Fundamental Demand for Bond Insurance Continued in 2015
The Fundamental Demand for Bond Insurance Continued in 2015 In the Primary Market, $6.7 Billion of Insured Par on 475 Transactions Sold With Our Insurance1, Including These Selected Issues $99,745,000 $72,000,324 $108,315,000 $146,325,000 $103,000,000 $100,565,000 General Obligation Bonds, First Tax
Slide 21: Broadening Market Awareness
Broadening Market Awareness Advertising Campaign 20
Slide 22: New Business Production: U.S. Structured Finance Business Activity
New Business Production U.S. Structured Finance Business Activity U.S. Structured PVP1 ($ in millions) • In 1Q-15, we closed a reserve $32 financing transaction in the insurance sector, generating $18 million of PVP1 • New structured finance business $18 production tends to fluctuate as large, $16 c
Slide 23: New Business Production: Non-U.S. Business Activity
New Business Production Non-U.S. Business Activity Non-U.S. PVP1 by Quarter • During 1Q-15, we closed a reinsurance ($ in millions) transaction and had a $5 million increase in non-U.S. PVP1 related to a previously insured transaction $13 • During 3Q-14, we insured a non-U.S. diversified payment rig
Slide 24: New Business Production: Reinsurance Platform
New Business Production Reinsurance Platform • Reassumption of previously ceded business has increased the unearned premium reserve and adjusted book value1 Ceded Par Outstanding by Reinsurer2 As of March 31, 2015 Reassumed Reassumed Commutation Year Par UPR Gain / (Loss) Net Par ($ in billions) ($
Slide 25: Financial Strength Ratings
Financial Strength Ratings • We maintain strong financial strength ratings Financial Strength Ratings As of June 8, 2015 • On March 18, 2014, S&P upgraded the financial strength ratings of AGM, MAC, and AGC to AA S&P Moody’s KBRA (stable outlook) – A key factor listed by S&P in support of the upgrad
Slide 26: Pursuing Loss Mitigation Strategies: R&W Activity
Pursuing Loss Mitigation Strategies R&W Activity • The cumulative total (gross of reinsurance) of settlement receipts and commitments, R&W putback receipts, and future projected losses on terminated insurance protection was approximately $4.2 billion1,2 • Our largest agreement was with Bank of Ameri
Slide 27: Pursuing Loss Mitigation Strategies: Loss Mitigation Bond Purchases
Pursuing Loss Mitigation Strategies: Other Capital Creation or Rating Agency Capital Relief Activities – Loss Mitigation Bond Purchases • We purchase securities we have insured in order to reduce our losses and potentially relieve rating agency capital charges, increase future investment income and
Slide 28: Insured Portfolio Amortization Also Creates Rating Agency Capital
Insured Portfolio Amortization Also Creates Rating Agency Capital • Amortization of the portfolio reduces rating agency capital charges but also embedded future earned premiums • Public finance exposure amortizes at a steady rate – $343.1 billion net par outstanding – 13% expected to amortize by yea
Slide 29: AGL Consolidated Investment Portfolio
AGL Consolidated Investment Portfolio Fair Value as of March 31, 2015 Investments Available for Sale and Cash1 Investments Available for Sale and Cash1,2 By Category By Rating U.S. Treasuries & U.S. Government Treasuries, Cash 6 Short-term Obligations Agency Gov't AAA 3% 8% 3% Obligations Obligation
Slide 30: Credit Default Swap Spreads
Credit Default Swap Spreads Credit Default Swap Spreads • Movements in credit default swap (CDS) levels for Assured Guaranty Municipal1 and AGC continue to be significantly affected by technical factors such as supply/demand imbalance and light trading volume • The deterioration in the asset-backed
Slide 31: Assured Guaranty Ltd. Consolidated Insured Portfolio Overview
Assured Guaranty Ltd. Consolidated Insured Portfolio Overview
Slide 32: AGL Consolidated Insured Portfolio
AGL Consolidated Insured Portfolio Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Sector Non-U.S. Non-U.S. Public Structured Finance Finance 8% U.S. 2% Structured Finance 10% U.S. Public Finance $389.1 billion1,2 81% Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Struc
Slide 33: AGL Consolidated Insured Portfolio Ratings
AGL Consolidated Insured Portfolio Ratings Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Rating BIG AAA 5% 7% BBB 17% AA 25% A 47% $389.1 billion1,2 Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance BIG AAA BIG AAA
Slide 34: Impact of Radian Asset Assurance Acquisition
AGL Consolidated Insured Portfolio Impact of Radian Asset Assurance Acquisition Assured Guaranty Ltd. Radian Asset Assurance1 Assured Guaranty Ltd. As of March 31, 2015 As of March 31, 2015 Pro Forma Non-U.S. Non-U.S. Non-U.S. Non-U.S. Non-U.S. Public Non-U.S. Public Structured Public Structured Fin
Slide 35: Detroit & Stockton Exposure
AGL Consolidated Detroit & Stockton Exposure Details of Assured Guaranty’s Exposure to Detroit Water / Sewer Exposure As of March 31, 2015 ($ in millions) Exposure Net Par Outstanding Internal Rating Water $ 878 BBB Sewer $ 1,048 BBB Total $ 1,926 BBB • Municipal utilities exposure is $878 million o
Slide 36: Puerto Rico Exposure
AGL Consolidated Puerto Rico Exposure • In June 2014, the Puerto Rico legislature passed the Recovery Act in order to provide a legislative framework for certain public corporations experiencing severe financial stress to restructure their debt, but it was declared void and preempted by U.S. Bankrup
Slide 37: Puerto Rico Exposure: Scheduled Net Par Amortization
AGL Consolidated Puerto Rico Exposure Scheduled Net Par Amortization of Exposure to the Commonwealth and its Agencies As of March 31, 2015 2025- 2030- 2035- 2040- 2045- ($ in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total 2029 2034 2039 2044 2047 Highways and Previously Subject to
Slide 38: Puerto Rico Exposure: Scheduled Net Debt Service Amortization
AGL Consolidated Puerto Rico Exposure Scheduled Net Debt Service Amortization of Exposure to the Commonwealth and its Agencies As of March 31, 2015 2025- 2030- 2035- 2040- 2045- ($ in millions) 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total 2029 2034 2039 2044 2047 Highways and Previously S
Slide 39: Structured Finance Exposures
AGL Consolidated Structured Finance Exposures Net Par Outstanding By Type As of March 31, 2015 ($ in billions) Other • We expect Assured Guaranty’s global Structured U.S. and structured finance insured portfolio ($46.0 Finance 52% Non-U.S. billion as of March 31, 2015) to amortize $10.8 Pooled 23% C
Slide 40: U.S. RMBS
AGL Consolidated U.S. RMBS U.S. RMBS by Exposure Type • Our $9.1 billion U.S. RMBS portfolio is As of March 31, 2015 amortizing both on a dollar basis and as a ($ in billions) Subprime percentage of the portfolio First Lien $3.9 – Total U.S. RMBS has declined from $29.2 Option ARMs billion at Decemb
Slide 41: Non-U.S. Public and Structured Finance
AGL Consolidated Non-U.S. Public and Structured Finance Net Par Outstanding Non-U.S. Exposure As of March 31, 2015 ($ in billions) Other $8.9 Canada $3.4 • Non-U.S. exposure is 80% public finance and 20% structured finance 24% 9% • Approximately 70% of non-U.S. structured 7% France exposure is to po
Slide 42: AGM Portfolio Review
AGM1 Portfolio Review Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret 1. “AGM Consolidated” means Assured Guaranty Municipal Corp. and its consolidated entities (consisting primarily of Assured Guaranty (Europe) Ltd., Municipal Assurance Holdings Inc. (MAC Holdings), Municipal Assurance Co
Slide 43: AGM Insured Portfolio Overview
AGM1 Insured Portfolio Overview Net Par Outstanding1,2 • AGM’s1 portfolio is diversified by asset As of March 31, 2015 ($ in billions) class – 73% U.S. public finance Non-U.S. Public Finance – 13% U.S. structured finance $19.2 Non-U.S. BBB+ average – 12% Non-U.S. public finance Structured rating Fin
Slide 44: AGM Insured Portfolio
AGM1 Insured Portfolio Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Sector Non-U.S. Public Finance Non-U.S. 12% Structured Finance 2% U.S. Structured Finance 13% U.S. Public Finance $156.3 billion2 73% Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance
Slide 45: AGM Insured Portfolio Ratings
AGM1 Insured Portfolio Ratings Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Rating BIG 5% AAA 10% BBB 19% AA 23% A 43% $156.3 billion2 Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance BIG AAA BIG AAA BBB 3% 1% BI
Slide 46: AGM Net Par Outstanding By Asset Type
AGM1 Insured Portfolio Net Par Outstanding as of March 31, 2015 Net Par Outstanding By Asset Type ($ in millions) Net Par Avg. Internal Net Par Avg. Internal Outstanding Rating Outstanding Rating U.S. public finance: U.S. structured finance: General obligation $ 41,247 A Pooled corporate obligations
Slide 47: Reinsurance
Reinsurance AGM1 Has Ceded 7% of Its Gross Insured Portfolio to a Diversified Group of Non-Affiliated Reinsurers and Other Monolines AGM’s1 Total Gross Par Outstanding: Externally Ceded Par Outstanding: $298.8 billion $20.6 billion (6.9%) As of March 31, 2015 As of March 31, 2015 Ceded to Assured ($
Slide 48: AGM Amortization of Global Insured Structured Finance Portfolio
AGM1 Amortization of Global Insured Structured Finance Portfolio Other Structured Finance BIG Financial $3.6 3 $1.6 Products (GICs) $2.1 BBB $0.4 U.S. Consumer Receivables $0.2 U.S. and Non- A U.S. Pooled $0.2 Corporate $15.0 U.S. Residential AA Mortgages $4.8 AAA $4.8 $14.7 • We expect AGM’s1 legac
Slide 49: AGM U.S. RMBS Exposure
AGM1 U.S. RMBS Exposure By Type As of March 31, 2015 ($ in billions) • AGM’s1 U.S. RMBS portfolio is amortizing on an Prime First Lien Alt-A First absolute basis and has declined as a percentage $0.1 Lien 1% $0.8 of the portfolio Closed End – $4.8 billion net par outstanding versus $17.1 billion at
Slide 50: AGM Non-RMBS Exposure
AGM1 Non-RMBS Exposure U.S. Structured Finance • 81% of AGM’s1 non-RMBS U.S. U.S. Non-RMBS Structured Finance As of March 31, 2015 structured finance portfolio consists of ($ in billions) pooled corporate obligations – 90% of U.S. pooled corporate exposure is of Other U.S. ABS AAA quality $0.4 2% •
Slide 51: AGM Global Pooled Corporate Obligations
AGM1 Global Pooled Corporate Obligations Pooled Corporate Obligations By Asset Class • AGM’s1 pooled corporate exposure is March 31, 2015 ($ in billions) generally highly rated and well protected Other – Average current credit enhancement of 27.6% Trust Preferred $0.6 <$0.1 – 88% rated AAA <1% 4% –
Slide 52: AGM Investment Portfolio
AGM1 Investment Portfolio Fair Value as of March 31, 2015 Investments Available for Sale and Cash2 Investments Available for Sale and Cash2,3 By Category By Rating U.S. Treasuries & U.S. Cash Government Agency Treasuries, Short-term <1% Obligations 6 Obligations Gov't AAA 3% 1% Asset- <1% Obligation
Slide 53: AGM Consolidated Expected Loss and LAE to Be Paid
AGM Consolidated1 Expected Loss and Loss Adjustment Expense (“LAE”) to Be Paid As of March 31, 2015 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Three Months Ended March 31, 2015 Net Expected Loss Net Expected Loss to be Paid Economic Loss (Paid) Recovered to be Paid F
Slide 54: Municipal Assurance Corp. Portfolio Review
Municipal Assurance Corp. Portfolio Review
Slide 55: MAC Insured Portfolio (100% U.S. Public Finance)
MAC Insured Portfolio (100% U.S. Public Finance) Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Sector Portfolio Diversification by Rating 1 BIG AAA Muni Utility 2% <1% Revenue AA 16% BBB 33% 9% Tax Backed 15% General Obligations 59% Other 10% A 56% $86.8 billion Net Par Outst
Slide 56: MAC Investment Portfolio
MAC Investment Portfolio Fair Value as of March 31, 2015 Investments Available for Sale and Cash1 Investments Available for Sale and Cash1,2 By Category By Rating U.S. Treasuries & U.S. Short-term & Government Treasuries, 4 cash Obligations Agency Gov't AAA 2% 1% Obligations & 14% Asset- Obligations
Slide 57: Assured Guaranty Corp. Portfolio Review
Assured Guaranty Corp. Portfolio Review Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret The information in this presentation, which is generally as of March 31, 2015, excludes the impact of the April 1, 2015 acquisition by Assured Guaranty Corp. (AGC) of Radian Asset Assurance Inc. (Radian
Slide 58: AGC Insured Portfolio Overview
AGC Insured Portfolio Overview Net Par Outstanding • AGC’s portfolio is diversified by asset As of March 31, 2015 class ($ in billions) – 62% U.S. public finance Non-U.S. Non-U.S. Public Structured – 27% U.S. structured finance Finance Finance $2.2 $2.5 – 5% Non-U.S. public finance A+ average rating
Slide 59: AGC Insured Portfolio
AGC Insured Portfolio Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Sector Non-U.S. Non-U.S. Structured Public Finance Finance 6% 5% U.S. Structured Finance 27% U.S. Public Finance 62% $44.1 billion Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Por
Slide 60: AGC Insured Portfolio Ratings
AGC Insured Portfolio Ratings Net Par Outstanding as of March 31, 2015 Portfolio Diversification by Rating BIG AAA 12% 13% BBB 18% AA 17% A 40% $44.1 billion Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance BIG AAA AA BIG 7% <1% 14% BIG
Slide 61: AGC Impact of Radian Asset Assurance Acquisition
AGC Insured Portfolio Impact of Radian Asset Assurance Acquisition Assured Guaranty Corp. Radian Asset Assurance1 Assured Guaranty Corp. As of March 31, 2015 As of March 31, 2015 Pro Forma Non-U.S. Non-U.S. Non-U.S. Non-U.S. Non-U.S. Public Non-U.S. Public Public Structured Structured Finance Struct
Slide 62: AGC Net Par Outstanding By Asset Type
AGC Insured Portfolio Net Par Outstanding as of March 31, 2015 Net Par Outstanding By Asset Type ($ in millions) Net Par Avg. Internal Net Par Avg. Internal Outstanding Rating Outstanding Rating U.S. public finance: U.S. structured finance: General obligation $ 7,272 A Pooled corporate obligations $
Slide 63: Reinsurance
Reinsurance AGC Has Ceded 1.4% of Its Gross Insured Portfolio to a Diversified Group of Non-Affiliated Reinsurers and Other Monolines (1) AGC’s Total Gross Par Outstanding: Externally Ceded Par Outstanding: $94.0 billion $1.3 billion (1.4%) As of March 31, 2015 As of March 31, 2015 Ceded to Assured
Slide 64: AGC U.S. RMBS Exposure
AGC U.S. RMBS Exposure By Type As of March 31, 2015 ($ in billions) Alt-A First • AGC’s U.S. RMBS portfolio is amortizing on Lien $1.2 an absolute basis and has declined as a Prime First percentage of the portfolio Lien $0.3 9% 39% – $3.1 billion versus $13.4 billion at year-end 2007, Closed End a d
Slide 65: AGC Non-RMBS Exposure
AGC Non-RMBS Exposure U.S. Structured Finance U.S. Non-RMBS Structured Finance • AGC’s non-RMBS U.S. structured finance As of March 31, 2015 ($ in billions) exposures consist principally of: – Pooled corporate obligations Structured credit Commercial – CMBS receivables $0.1 1% Other $0.3 structured
Slide 66: AGC Global Direct Pooled Corporate Obligations
AGC Global Direct Pooled Corporate Obligations Direct Pooled Corporate Obligations1 • Our pooled corporate exposure is highly rated and protected by overcollateralization. In AGC’s direct By Asset Class As of March 31, 2015 portfolio: ($ in billions) – Average current credit enhancement of 40.3% Syn
Slide 67: AGC Direct U.S. CMBS Exposure
AGC Direct U.S. CMBS Exposure • AGC’s CMBS-related exposures were underwritten at high Direct U.S. Commercial Real Estate Exposure1 attachment points By Sector – All deals were written with triple-A ratings at inception As of March 31, 2015 ($ in billions) – AAA current average rating CDOs of • $1.3
Slide 68: AGC Direct U.S. Consumer Receivables
AGC Direct U.S. Consumer Receivables Direct U.S. Consumer Receivables by Type1 • Despite the economic stress caused by the As of March 31, 2015 financial crisis, AGC’s consumer receivable ($ in billions) portfolio is entirely investment grade: – Average rating of A+ – For all transactions, current c
Slide 69: AGC Investment Portfolio
AGC Investment Portfolio Fair Value as of March 31, 2015 Investments Available for Sale and Cash1 Investments Available for Sale and Cash1,2 By Category By Rating U.S. Treasuries & Government U.S. 6 Cash Treasuries, AAA 34% Obligations Gov't 42% 7% Obligations & Agency Agency Obligations Obligations
Slide 70: AGC Expected Loss and LAE to Be Paid
AGC Expected Loss and LAE to Be Paid As of March 31, 2015 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Three Months Ended March 31, 2015 Net Expected Loss Net Expected Loss to be Paid Economic Loss (Paid) Recovered to be Paid Financial Guaranty Insurance Contracts and
Slide 71: Appendix
ASSURED GUARANTY
Slide 72: Explanation of Non-GAAP Financial Measures
Appendix Explanation of Non-GAAP Financial Measures Endnotes related to non-GAAP financial measures discussed in the presentation: The Company references financial measures that are not in accordance with GAAP. Management and the board of directors utilize non-GAAP financial measures in evaluating t
Slide 73: Explanation of Non-GAAP Financial Measures (Continued)
Appendix Explanation of Non-GAAP Financial Measures (Continued) Operating Shareholders’ Equity: Management believes that operating shareholders’ equity is a useful measure because it presents the equity of Assured Guaranty Ltd. with all financial guaranty contracts accounted for on a more consistent
Slide 74: Explanation of Non-GAAP Financial Measures (Continued)
Appendix Explanation of Non-GAAP Financial Measures (Continued) Adjusted Book Value: Management believes that adjusted book value is a useful measure because it enables an evaluation of the net present value of the Company’s in-force premiums and revenues in addition to operating shareholders’ equit
Slide 75: Reconciliation of PVP to GWP
Appendix AGL Consolidated Reconciliation of PVP to GWP ($ in millions) Three Months Ended March 31, 2015 2014 New business production analysis: PVP: Public finance - U.S. $ 13 $ 23 Public finance - non-U.S. — 7 Structured finance - U.S. 18 1 Structured finance - non-U.S. 5 — Total PVP $ 36 $ 31 Reco
Slide 76: Reconciliation of GAAP Book Value to Adjusted Book Value
Appendix AGL Consolidated Reconciliation of GAAP Book Value to Adjusted Book Value ($ in millions, except per share amounts) As of: March 31, 2015 December 31, 2014 Total Per Share Total Per Share Reconciliation of shareholders' equity to adjusted book value: Shareholders' equity $ 5,786 $ 37.86 $ 5
Slide 77: Reconciliation of AGM Net Par Outstanding to AGM Consolidated
Appendix Reconciliation of AGM1 Net Par Outstanding to AGM Consolidated1 Net Par Outstanding Net Par Outstanding by Asset Type March 31, 2015 ($ in millions) AGM AGM1 MAC Consolidated1 U.S. public finance: General obligation $ 41,247 $ 51,104 $ 92,351 Tax backed 24,845 13,044 37,889 Municipal utilit
Slide 78: Reconciliation of AGM Investment Portfolio and Cash to AGM Consolidated
Appendix Reconciliation of AGM1 Investment Portfolio and Cash to AGM Consolidated1 Investment Portfolio and Cash Fair Value March 31, 2015 ($ in millions) AGM AGM1 MAC Consolidated1 Investment portfolio, available-for-sale Fixed-maturity securities: Obligations of states and political subdivisions $
Slide 79: Reconciliation of AGM Expected Amortization to AGM Consolidated
Appendix Reconciliation of AGM1 Expected Amortization to AGM Consolidated1 Expected Amortization AGM1 – Estimated Ending Net Par Outstanding2 March 31, 2015 ($ in millions) Public Finance Structured Finance Total 2015 (as of March 31) $ 132,654 $ 23,665 $ 156,319 2015 124,043 18,243 142,286 2016 115
Slide 80: Assured Guaranty Contacts
Assured Guaranty Contacts: Robert Tucker Managing Director Investor Relations and Corporate Communications Direct: 212.339.0861 [email protected] Michael Walker Managing Director Fixed Income Investor Relations Direct: 212.261.5575 [email protected] Glenn Alterman Associate Inves
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