Assured Guaranty Ltd. · NYSE:AGO
Assured Guaranty — Merger or Acquisition (July 2024)
20 slides from Assured Guaranty's merger presentation, Jul 8, 2024
Slide 1: Merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc.
EMBRACE POSSIBILITIES, INVEST IN CERTAINTIES Assured Guaranty July 8, 2024 Merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc. Expected Effective Date: August 1, 2024
Slide 2: Table of Contents
Table of Contents Page Forward-Looking Statements and Safe Harbor Disclosure 3 Conventions 4 Corporate Overview 5 Merger of Assured Guaranty Municipal Corp. into Assured Guaranty Inc. 9 Combined Portfolio Review 14 2 ASSURED GUARANTY MUNICIPAL | ASSURED GUARANTY INC.
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
Conventions • Unless otherwise noted, the following conventions are used in this presentation: – "Combined AG" means AG after the merger of Assured Guaranty Municipal Corp. (AGM) and its subsidiaries (consisting primarily of Assured Guaranty UK Limited (AGUK), Assured Guaranty (Europe) SA (AGE), AG
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 – With nearly four decades of experience in the financial guaranty industry, we are the only long-standing financial guaranty compan
Slide 7: Corporate Structure Before Merger
Assured Guaranty Ltd. Corporate Structure BEFORE Merger Assured Guaranty Ltd. Hamilton, Bermuda Publicly Traded Holding Company (NYSE: AGO) A (stable outlook) / Baa1 (stable outlook) issuer credit ratings Assured Guaranty US Holdings Inc. (AGUS) U.S. Holding Company S&P: A (stable outlook) / KBRA: A
Slide 8: Corporate Structure After Merger
Assured Guaranty Ltd. Corporate Structure AFTER Merger Assured Guaranty Ltd. Hamilton, Bermuda Publicly Traded Holding Company (NYSE: AGO) A (stable outlook) / Baa1 (stable outlook) issuer credit ratings Assured Guaranty US Holdings Inc. (AGUS) U.S. Holding Company S&P: A (stable outlook) / KBRA: A+
Slide 9: Merger of AGM into AG
Merger of AGM into AG Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret
Slide 10: Overview of Merger
Overview of Merger • Assured Guaranty Municipal Corp. (AGM) will merge with and into Assured Guaranty Inc. (AG), effective August 1, 2024 • Background – Assured Guaranty Corp. (AGC) was the original financial guaranty insurance subsidiary of Assured Guaranty Ltd. (AGL), changing its name to AG in Ma
Slide 11: Benefits and Features of the Merger
Benefits and Features of the Merger • Some of the benefits of the merger are: – Creates a larger, combined company to guarantee all the obligations in both the AGM and AG insured portfolios. – Produces a larger, more highly diversified insured portfolio – Improves policyholder protection as holders
Slide 12: Assured Guaranty Overview: Combined AG
Assured Guaranty Overview Combined AG Combined AG1 ($ in billions) AGM AG Eliminations Combined AG (fka AGC) Insured net par outstanding $162.0 $28.8 $(0.4) $190.4 U.S. public finance $127.3 $19.6 $— $146.9 Non-U.S. public finance $32.8 $4.9 $(0.3) $37.4 U.S. and Non-U.S. (Global) $1.8 $4.3 $— $6.1
Slide 13: Two Discrete Insurance Companies with Separate Capital Bases
Two Discrete Insurance Companies with Separate Capital Bases Consolidated Statutory-Basis Claims-Paying Resources and Exposures As of March 31, 2024 AG Combined ($ in millions) AGM1 (fka AGC) Eliminations2 AG AGRe7 Eliminations3 Consolidated Claims-paying resources Policyholders' surplus $ 2,665 $ 1
Slide 14: Financial Strength Ratings
Financial Strength Ratings U.S. Insurance Companies Financial Strength Ratings1 S&P KBRA Moody's AA AA+ A1 AGM Stable Outlook Stable Outlook Stable Outlook (May 2024) (October 2023) (April 2024) AA AA+ A1 AG Stable Outlook Stable Outlook Stable Outlook (May 2024) (October 2023) (April 2024) Recent R
Slide 15: Combined AG Portfolio Review
Combined AG Portfolio Review Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret 1. Please see page 4 for a definition of this convention.
Slide 16: Combined AG Insured Portfolio by Sector
Combined AG1 Insured Portfolio Net Par Outstanding as of March 31, 2024 Portfolio Diversification by Sector Non-U.S. Structured Finance 1% U.S. Public Finance U.S. 77% Structured Finance 3% Non-U.S. Public Finance 20% $190.4 billion2 U.S. & Non-U.S. U.S. Public Finance Portfolio Non-U.S. Public Fina
Slide 17: Consolidated AG Insured Portfolio Ratings
Consolidated AG1 Insured Portfolio Ratings Net Par Outstanding as of March 31, 2024 Portfolio Diversification by Rating BIG AAA 2% 1% AA 10% BBB 39% A 48% $190.4 billion2 U.S. & Non-U.S. U.S. Public Finance Portfolio Non-U.S. Public Finance Portfolio Structured Finance Portfolios BIG AAA BIG AAA BIG
Slide 18: Combined AG Net Par Outstanding by Asset Type
Combined AG1 Insured Portfolio Net Par Outstanding as of March 31, 2024 Net Par Outstanding By Asset Type ($ in millions) Net Par Net Par Outstanding Outstanding U.S. public finance: U.S. structured finance: General obligation $ 56,905 RMBS $ 1,572 Tax backed 25,116 Insurance securitization 1,298 Mu
Slide 19: Combined AG Investment Portfolio
Combined AG1 Investment Portfolio Value as of March 31, 2024 Invested Assets and Cash2,3 As of March 31, 2024 4 AAA U.S. government & agencies 30% • Predominately consists of highly rated, 1% fixed maturity and short-term investments, Other invested and cash; 57% rated AA or higher assets <1% • Appr
Slide 20: Assured Guaranty Contacts
Assured Guaranty Contacts: Robert Tucker Senior Managing Director Investor Relations and Corporate Communications Direct: 212.339.0861 rtucker@agltd.com Michael Walker Managing Director Fixed Income Investor Relations Direct: 212.261.5575 mwalker@agltd.com Andre Thomas Managing Director Investor Rel