Assured Guaranty Ltd. · NYSE:AGO

Assured Guaranty — Q4 2025 Earnings Presentation

71 slides from Assured Guaranty's earnings presentation, Dec 31, 2025

  1. Slide 1: Equity Investor Presentation

    Equity Investor Presentation December 31, 2025

  2. Slide 2: 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

  3. Slide 3: Conventions and Non-GAAP Financial Measures

    Conventions and Non-GAAP Financial Measures • Unless otherwise noted, the following conventions are used in this presentation: – Ratings on Assured Guaranty’s insured portfolio are Assured Guaranty’s internal ratings. ▪ Internal credit ratings are expressed on a ratings scale similar to that used by

  4. Slide 4: Table of Contents

    Table of Contents • Quarterly and annual highlights • Assured Guaranty overview – Strength of business model – Claims-paying resources – Financial strength ratings – Track record of creating shareholder value – Dividend limitation calculations – Simplified corporate structure • Underlying value – Hi

  5. Slide 5: Highlights

    ASSURED GUARANTY Highlights

  6. Slide 6: Fourth Quarter 2025 Highlights

    Fourth Quarter 2025 Highlights Financial Results • Earned $109 million of adjusted operating income1 ($2.32 per share), – This represents an 83% increase on a per share basis above the fourth quarter 2024 amount • Increased shareholders’ equity attributable to AGL per share, adjusted operating share

  7. Slide 7: 2025 Highlights

    2025 Highlights Financial Results • Earned $445 million of adjusted operating income1 (or $9.08 per share) – This amount is 28% larger than adjusted operating income1 per share in the same period of 2024 Insurance • Insured $33 billion of new business par, the highest amount of annual insured par in

  8. Slide 8: New Insurance Business Production

    New Insurance Business Production Gross Par Written ($ in millions) Assured Guaranty insured $33 billion of aggregate par $31,829 $32,916 in 2025 $28,960 • This aggregate amount of par is the largest annual amount in $26,656 a decade $22,047 – U.S. public finance insured the largest amount of par in

  9. Slide 9: Assured Guaranty Overview

    ASSURED GUARANTY Assured Guaranty Overview

  10. Slide 10: Financial Guaranty Business Model

    Assured Guaranty Overview Financial Guaranty Business Model • What do we insure? – We insure financial obligations in three main sectors ▪ U.S. public finance and infrastructure transactions ▪ Non-U.S. public finance and infrastructure transactions ▪ Global structured finance transactions – We focus

  11. Slide 11: Financial Guaranty Business Model (Continued)

    Assured Guaranty Overview Financial Guaranty Business Model (Continued) • How do we invest our investment portfolio? – Our portfolio predominately consists of highly rated fixed-maturity and short-term investments, and cash – We also have a strategy to invest a portion of our investment portfolio in

  12. Slide 12: Overview

    Assured Guaranty Overview Overview Assured Guaranty Ltd. • Assured Guaranty is the leading financial guaranty franchise, with four decades of ($ in billions) Dec. 31, 2025 experience in the municipal and structured finance markets Insured net par outstanding $277.1 – We participate in the bond insur

  13. Slide 13: Resilience and Enduring Financial Strength

    Assured Guaranty Overview Resilience and Enduring Financial Strength Assured Guaranty maintained over $10 billion of claims-paying resources1 over 17 years while paying nearly $15 billion to insured investors From January 1, 2008 through $16 As of December 31 of each full year December 31, 2025: ($

  14. Slide 14: Insurance Subsidiaries' Claims-Paying Resources

    Assured Guaranty Overview Insurance Subsidiaries’ Claims-Paying Resources As of December 31, 2025 AG AG Re2 Eliminations3 Total Claims-paying resources ($ in millions): Policyholders' surplus $ 3,249 $ 731 $ 53 $ 4,033 Contingency reserve 1,511 — — 1,511 Qualified statutory capital 4,760 731 53 5,54

  15. Slide 15: Assured Guaranty Ltd. Corporate Structure

    Assured Guaranty Overview Assured Guaranty Ltd. Corporate Structure Assured Guaranty Ltd. Hamilton, Bermuda Publicly Traded Holding Company (NYSE: AGO) S&P: A (stable outlook) / Moody’s: Baa1 (stable outlook) issuer credit ratings Assured Guaranty US Holdings Inc. (AGUS) Assured Guaranty Re Ltd. (AG

  16. Slide 16: Financial Strength Ratings of Financial Guaranty Companies

    Assured Guaranty Overview Financial Strength Ratings of Financial Guaranty Companies Financial Strength Ratings1 S&P KBRA Moody's AA AA+ A1 AG Stable Outlook Stable Outlook Stable Outlook (June 2025) (August 2025) (July 2024) Recent Updates • In June 2025, S&P affirmed the AA (stable outlook) financ

  17. Slide 17: Adjusted Operating Income

    Assured Guaranty Overview Adjusted Operating Income • Adjusted operating income per share1 was $9.08 in 2025, nearly 28% higher than the same period in 2024 ($7.10) and the second largest amount of adjusted operating income per share in our history – On a dollar basis, adjusted operating income per

  18. Slide 18: Track Record of Creating Shareholder Value

    Assured Guaranty Overview Track Record of Creating Shareholder Value • We have returned excess capital to shareholders by repurchasing our common shares and distributing dividends – Since 2013, when we started our capital management strategy of repurchasing our common shares, through February 25, 20

  19. Slide 19: Expected 2026 Dividend Limitation Calculations

    Assured Guaranty Overview Expected 2026 Dividend Limitation Calculations Assured Guaranty Inc. (AG) Assured Guaranty Re Ltd. (AG Re) (Domiciled in Maryland) (Domiciled in Bermuda) • Cannot exceed the lesser of: • Cannot exceed 25% of prior year total statutory capital and surplus (i) 10% of prior ye

  20. Slide 20: Simplified Corporate Structure With Expected Dividend Capacity

    Assured Guaranty Overview Simplified Corporate Structure With Expected Dividend Capacity1 Shareholders • Total investment portfolio and cash of Assured Guaranty Ltd. $56 million2 • Annual net expenses of $43 million (Head Office – Bermuda; Tax Residence – U.K.) • Annual dividend distribution of $69

  21. Slide 21: Underlying Value

    ASSURED (GUARANTY

  22. Slide 22: Historical Growth

    Underlying Value Historical Growth Adjusted Book Value Per Share1,2 $186.43 $170.12 $155.92 59.65 $141.98 $130.67 55.37 CA GR) 49.38 ase (10% 48.06 cre 41.94 6 1% in Val ue: 6 Book Adj. $126.78 $114.75 $41.90 $106.54 $35.66 $88.73 $93.92 $26.06 $29.54 16.53 $24.51 12.13 7.18 8.17 6.43 $18.88 $21.37

  23. Slide 23: High-Quality Investment Portfolio

    Underlying Value High-Quality Investment Portfolio Total Invested Assets and Cash1 As of December 31, 2025 U.S. government & agencies 2 1% AAA 24% Other invested assets3 8% 4 Sound Point 5% • Predominately consists of highly-rated, fixed maturity and short-term investments, and cash; 49% rated AA or

  24. Slide 24: Total Assets and Cash

    Underlying Value Total Assets and Cash • Total invested assets and cash have declined by approximately $2.1 billion since year-end 2009, despite the Company returning $5.5 billion to shareholders in the form of share repurchases and dividends as well as paying $1.1 billion in net claims Total Invest

  25. Slide 25: Net Investment Income and Operating Expenses

    Underlying Value Net Investment Income1 and Operating Expenses • Nearly all of the Company’s annual operating expenses (excluding asset management expenses)2 are covered by annual net investment income1 Net Investment Income1,3 ($ in millions) $378 $365 $359 $366 $355 $340 $281 $286 $269 $269 2021 2

  26. Slide 26: New Business Activity

    ASSURED GUARANTY New Business Activity

  27. Slide 27: Insurance: U.S. Public Finance

    New Business Activity Insurance: U.S. Public Finance • In 2025, Assured Guaranty’s U.S. public finance par was its largest amount in a decade – U.S. public finance total par insured that closed in 2025 was $27 billion – U.S. public finance PVP1 that closed in 2025 was $206 million – PVP from seconda

  28. Slide 28: Insurance: Non-U.S. Public Finance

    New Business Activity Insurance: Non-U.S. Public Finance • In 2025, business activity primarily included (i) Non-U.S. Public Finance PVP1 infrastructure transactions in the European ($ in millions) Union, (ii) U.K. regulated utility transactions, (iii) U.K. infrastructure transactions, (iv) debt ser

  29. Slide 29: Insurance: Global Structured Finance

    New Business Activity Insurance: Global Structured Finance Global Structured Finance PVP1 • In 2025, business activity primarily included an ($ in millions) upsize of a transaction in Australia, fund finance $109 facilities, pooled corporate obligations and consumer receivable transactions $65 • Dur

  30. Slide 30: Asset Management and Alternative Investments

    Asset Management and Alternative Investments

  31. Slide 31: Asset Management and Alternative Investments Highlights

    Asset Management and Alternative Investments Highlights Asset Management • Assured Guaranty participates in the asset management business primarily through its 30% ownership interest in Sound Point – Assured Guaranty’s share of Sound Point’s net income was $14 million (pre-tax) for full year 2025 ▪

  32. Slide 32: Annuity Reinsurance

    ASSURED (GUARANTY Annuity Reinsurance

  33. Slide 33: Annuity Reinsurance Business

    Annuity Reinsurance Business To further its strategic objectives, Assured Guaranty is diversifying into annuity reinsurance by launching Assured Life Reinsurance Ltd. (Assured Life Re), a rebranding of its newly acquired life and annuity reinsurer Warwick Re Limited (Warwick Re) Entry into Strategic

  34. Slide 34: Annuity Business and Assured Life Re's Product Focus

    Annuity Business and Assured Life Re’s Product Focus Annuities are contracts sold by life insurance companies that provide a series of regular, guaranteed payments over a set period of time Annuities • People typically purchase annuities to save for retirement so they can receive a steady income str

  35. Slide 35: Transaction Overview

    Annuity Reinsurance Transaction Overview On January 21, 2026, Assured Guaranty acquired Warwick Company (UK) Limited and its subsidiaries. The acquisition includes Warwick Re Limited (Warwick Re), which provides reinsurance of fixed-term annuities and pension risk transfer annuities. • Assured Guara

  36. Slide 36: Financial Results

    ASSURED (GUARANTY Financial Results M4

  37. Slide 37: Fourth Quarter 2025 Results

    Fourth Quarter 2025 Results Select Financial Items Select GAAP Results ($ in millions, except per share data) Three Months Ended December 31, % Change vs. 4Q-24 2025 2024 Net income (loss) attributable to AGL $119 $18 561% Net income (loss) attributable to AGL per diluted share $2.53 $0.35 623% Net

  38. Slide 38: Full Year 2025 Results

    Full Year 2025 Results Select Financial Items Select GAAP Results ($ in millions, except per share data) Year Ended December 31, % Change vs. FY24 2025 2024 Net income (loss) attributable to AGL $503 $376 34% Net income (loss) attributable to AGL per diluted share $10.26 $6.87 49% Net earned premium

  39. Slide 39: Fourth Quarter 2025 Results: Supplemental Information

    Fourth Quarter 2025 Results Supplemental Information Select Income Components ($ in millions) Three Months Ended December 31, 2025 Employee Equity in Net Income (Loss) Compensation, Benefit Earnings Attributable to Net Earned Net Investment Loss Expense Expenses and Other (Losses) of Assured Guarant

  40. Slide 40: Full Year 2025 Results: Supplemental Information

    Full Year 2025 Results Supplemental Information Select Income Components ($ in millions) Year Ended December 31, 2025 Employee Equity in Net Income (Loss) Compensation, Benefit Earnings Attributable to Net Earned Net Investment Loss Expense Expenses and Other (Losses) of Assured Guaranty Premiums In

  41. Slide 41: Insurance Loss Measures

    Insurance Loss Measures Loss and LAE reported on the GAAP Consolidated Statement of Operations: • Represents loss and loss adjustment expenses (LAE) for contracts accounted for as insurance and excludes losses related to credit derivatives, FG VIEs and contracts accounted for under other GAAP accoun

  42. Slide 42: Net Expected Loss and LAE to Be Paid (Recovered)

    Net Expected Loss and LAE to Be Paid (Recovered) Three Months Ended December 31, 2025 Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)1 for the Three Months Ended December 31, 2025 ($ in millions) Net Expected Loss Net Economic Loss Net Expected Loss to be Paid Development Net (Paid)

  43. Slide 43: Net Expected Loss and LAE to Be Paid (Recovered)

    Net Expected Loss and LAE to Be Paid (Recovered) Year Ended December 31, 2025 Roll Forward of Net Expected Loss and LAE to be Paid (Recovered)1 for the Year Ended December 31, 2025 ($ in millions) Net Expected Loss Net Economic Loss Net Expected Loss to be Paid Development Net (Paid) to be Paid (Rec

  44. Slide 44: Assured Guaranty Insured Portfolio

    Assured Guaranty Insured Portfolio Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret

  45. Slide 45: Net Par Outstanding by Sector

    Assured Guaranty Insured Portfolio Net Par Outstanding by Sector as of December 31, 2025 Portfolio Diversification by Sector Non-U.S. Structured Finance U.S. 1% Public Finance 78% U.S. Structured Finance 3% Non-U.S. Public Finance 18% $277.1 billion1,2 Global U.S. Public Finance Portfolio Non-U.S. P

  46. Slide 46: Net Par Outstanding by Rating

    Assured Guaranty Insured Portfolio Net Par Outstanding by Rating as of December 31, 2025 Portfolio Diversification by Rating BIG AAA 3% 1% AA 9% BBB 36% A 51% $277.1 billion1 Global U.S. Public Finance Portfolio Non-U.S. Public Finance Portfolio Structured Finance Portfolio BIG AAA BIG AAA BIG AAA 2

  47. Slide 47: Net Par Outstanding Amortization

    Assured Guaranty Insured Portfolio Net Par Outstanding Amortization • Since year-end 2022, net par outstanding increased by $44 billion, with increased par outstanding in each of U.S. public finance, non-U.S. public finance and global structured finance • Since year-end 2016, the composition of the

  48. Slide 48: Puerto Rico Update

    Assured Guaranty Insured Portfolio Puerto Rico Update • The Company continues to work to resolve its only unresolved defaulted Puerto Rico exposure, PREPA – On December 31, 2024, the United States Court of Appeals for the First Circuit (First Circuit) ruled on the FOMB’s second request that it recon

  49. Slide 49: Puerto Rico Exposure

    Assured Guaranty Insured Portfolio Puerto Rico Exposure Exposure to Puerto Rico As of December 31, 2025 ($ in millions) Net Par Outstanding Total Net Par Gross Par AG AG Re Outstanding Outstanding Defaulted Puerto Rico Exposure Puerto Rico Electric Power Authority (PREPA) $322 $142 $464 $470 Resolve

  50. Slide 50: Assured Guaranty CLO Exposures

    Assured Guaranty CLO Exposures Exposure in Three Distinct Areas Non-CLO Exposure $276.2 1. $0.9 billion of insured exposure • Ten transactions • All of the exposure is investment grade • Average credit enhancement is approximately 38% • The Company only pays a claim in the event of a shortfall in in

  51. Slide 51: BIG Surveillance Categories

    Assured Guaranty Insured Portfolio BIG Surveillance Categories The Company assigns each BIG exposure to one of the three BIG surveillance categories based on loss modeling1 and scenario probability weighting: BIG Surveillance Category 1: Exposures for which there are possible future losses, on a pre

  52. Slide 52: Net Par Outstanding by BIG Surveillance Category

    Assured Guaranty Insured Portfolio Net Par Outstanding by BIG Surveillance Category1 Financial Guaranty Portfolio Categories As of December 31, 2025 Net Par Percent of Percent of ($ billions) Outstanding BIG Par Total Par • Approximately $3.7 billion (1.3% of total BIG Surveillance Category 1 277.1

  53. Slide 53: Total BIG Exposure

    Assured Guaranty Insured Portfolio Total BIG Exposure • Exposure with an internal BIG rating is $8.8 billion, down from $11.4 billion in the third quarter of 2025 – This reduction of approximately $2.6 billion in the fourth quarter of 2025 was driven primarily by a decrease in BIG 1 related to an up

  54. Slide 54: BIG 2 and BIG 3 Exposure

    Assured Guaranty Insured Portfolio BIG 2 and BIG 3 Exposure • Transactions rated BIG 2 represent approximately 44% of all BIG transactions (1.4% of total net par outstanding) – The largest components of our BIG 2 exposure are U.K. regulated utilities at 63% and international infrastructure at 25% •

  55. Slide 55: BIG Exposures > $250 Million

    Assured Guaranty Insured Portfolio BIG Exposures > $250 Million BIG Exposures Greater Than $250 Million As of December 31, 2025 ($ in millions) Net Par Internal Type1 Name or Description Outstanding Rating2 PF Thames Water Utilities Finance Plc $2,400 B PF Brightline Trains Florida LLC 1,133 BB+ PF

  56. Slide 56: Appendix

    ASSURED (GUARANTY

  57. Slide 57: Explanation of Non-GAAP Financial Measures

    Appendix Explanation of Non-GAAP Financial Measures The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be conside

  58. Slide 58: Explanation of Non-GAAP Financial Measures (Cont'd)

    Appendix Explanation of Non-GAAP Financial Measures (Cont’d) The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure

  59. Slide 59: Explanation of Non-GAAP Financial Measures (Cont'd)

    Appendix Explanation of Non-GAAP Financial Measures (Cont’d) Adjusted Operating Shareholders’ Equity and Adjusted Book Value: The Company’s management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit deriv

  60. Slide 60: Explanation of Non-GAAP Financial Measures (Cont'd)

    Appendix Explanation of Non-GAAP Financial Measures (Cont’d) Adjusted Operating Return on Equity (Adjusted Operating ROE): Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end

  61. Slide 61: Reconciliation of Gross Written Premiums to PVP

    Appendix AGL Consolidated Reconciliation of Gross Written Premiums (GWP) to PVP1 Three Months Ended Year Ended Reconciliation of GWP to PVP1 December 31, December 31, ($ in millions) 2025 2024 2025 2024 2023 2022 2021 2020 2019 Total GWP $61 $186 $256 $440 $357 $360 $377 $454 $677 Less: Installment

  62. Slide 62: Reconciliation of Net Income to Adjusted Operating Income

    Appendix Reconciliation of Net Income (Loss) Attributable to AGL to Adjusted Operating Income1,2 Three Months Ended Year Ended Adjusted Operating Income1 Reconciliation December 31, December 31, ($ in millions, except per share amounts) 2025 2024 2025 2024 Total Per Share Total Per Share Total Per S

  63. Slide 63: Reconciliation of Net Income to Adjusted Operating Income (2013-2024)

    Appendix Reconciliation of Net Income (Loss) Attributable to AGL to Adjusted Operating Income1,2 (2013-2024) Adjusted Operating Income1 Reconciliation Year Ended December 31, ($ in millions, except per share amounts) 2024 2023 2022 2021 2020 2019 Total Per Share Total Per Share Total Per Share Total

  64. Slide 64: Reconciliation of Net Income to Adjusted Operating Income (2004-2012)

    Appendix Reconciliation of Net Income (Loss) Attributable to AGL to Adjusted Operating Income1,2 (2004-2012) Adjusted Operating Income1 Reconciliation Year Ended December 31, ($ in millions, except per share amounts) 2012 2011 2010 2009 2008 2007 Total Per Share Total Per Share Total Per Share Total

  65. Slide 65: Reconciliation of Shareholders' Equity to Adjusted Book Value

    Appendix Reconciliation of Shareholders’ Equity Attributable to AGL to Adjusted Book Value1 Adjusted book value1 reconciliation As of ($ in millions, except per share amounts) Dec 31, 2025 Sep 30, 2025 Dec 31, 2024 Sep 30, 2024 Dec 31, 2023 Per Per Per Per Per Total Share Total Share Total Share Tot

  66. Slide 66: Reconciliation of Shareholders' Equity to Adjusted Book Value (2018-2022)

    Appendix Reconciliation of Shareholders’ Equity Attributable to AGL to Adjusted Book Value1 (2018-2022) Adjusted book value1 reconciliation As of December 31, ($ in millions, except per share amounts) 2022 2021 2020 2019 2018 Per Per Per Per Per Total Share Total Share Total Share Total Share Total

  67. Slide 67: Reconciliation of Shareholders' Equity to Adjusted Book Value (2013-2017)

    Appendix Reconciliation of Shareholders’ Equity Attributable to AGL to Adjusted Book Value1 (2013-2017) Adjusted book value1 reconciliation As of December 31, ($ in millions, except per share amounts) 2017 2016 2015 2014 2013 Per Per Per Per Per Total Share Total Share Total Share Total Share Total

  68. Slide 68: Reconciliation of Shareholders' Equity to Adjusted Book Value (2008-2012)

    Appendix Reconciliation of Shareholders’ Equity Attributable to AGL to Adjusted Book Value1 (2008-2012) Adjusted book value1 reconciliation As of December 31, ($ in millions, except per share amounts) 2012 2011 2010 2009 2008 Per Per Per Per Per Total Share Total Share Total Share Total Share Total

  69. Slide 69: Reconciliation of Shareholders' Equity to Adjusted Book Value (2004-2007)

    Appendix Reconciliation of Shareholders’ Equity Attributable to AGL to Adjusted Book Value1 (2004-2007) Adjusted book value1 reconciliation As of December 31, ($ in millions, except per share amounts) 2007 2006 2005 2004 2004 Q2 Per Per Per Per Per Total Share Total Share Total Share Total Share Tot

  70. Slide 70: Reconciliation of AGL GAAP ROE to Adjusted Operating ROE

    Appendix Reconciliation of AGL GAAP ROE1 to Adjusted Operating ROE1,2 ROE Reconciliation ($ in millions) Three Months Ended Year Ended December 31, December 31, 2025 2024 2025 2024 Net income (loss) attributable to AGL $119 $18 $503 $376 Adjusted operating income2 109 66 445 389 Average shareholders

  71. Slide 71: Assured Guaranty Contacts

    Assured Guaranty Contacts: Robert Tucker Senior Managing Director Investor Relations and Corporate Communications Direct: 212.339.0861 rtucker@agltd.com Andre Thomas Managing Director Equity Investor Relations Direct: 212.339.3551 athomas@agltd.com Glenn Alterman Director Investor Relations Direct:

Assured Guaranty — Q4 2025 Earnings Presentation on 6ix