Assured Guaranty Ltd. · NYSE:AGO
Assured Guaranty — Debt Investor Presentation (December 2016)
78 slides from Assured Guaranty's debt investor presentation, Dec 31, 2016
Slide 1: Fixed Income Investor Presentation December 31, 2016
EMBRACE POSSIBILITIES, INVEST IN CERTAINTIES Fixed Income Investor Presentation December 31, 2016
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 31 AGM1 Portfolio Review 41 Municipal Assurance Corp. Portfolio Review 54 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 and Non-GAAP Financial Measures
Conventions 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 Assurance Holdin
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: 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 8: Strategic Priorities
Strategic Priorities • Generate current and future revenue through new business production • Manage capital efficiently • Execute alternative strategies to create value, including through acquisitions, investments and commutations • Mitigate losses 7
Slide 9: Assured Guaranty Ltd. Corporate Structure
Assured Guaranty Ltd. Corporate Structure 8
Slide 10: Four Discrete Operating Companies with Separate Capital Bases
Four Discrete Operating Companies with Separate Capital Bases Consolidated Statutory-Basis Claims-Paying Resources and Exposures As of December 31, 2016 ($ in millions) AGM AGC MAC AG Re8 Eliminations3 Consolidated Claims-paying resources Policyholders' surplus $2,321 $1,896 $487 $1,066 $(734) $5,03
Slide 11: Principal Operating Platforms
Assured Guaranty Principal Operating Platforms • Assured Guaranty Municipal1, MAC and AGC operate as three separate direct financial guaranty platforms, with AG Re operating as a reinsurer – Assured Guaranty Municipal1 focuses exclusively on public finance and global infrastructure transactions – MA
Slide 12: Principal Operating Platforms (Continued)
Assured Guaranty Principal Operating Platforms (Continued) • Companies distinct for legal and regulatory purposes – Separate insurance licenses – Separate regulators – Assured Guaranty Municipal1 and MAC are domiciled in New York; AGC is domiciled in Maryland – Dividend restrictions – New York, Mary
Slide 13: Assured Guaranty Municipal's Commitment to the Public Finance Market
Assured Guaranty Municipal’s1 Commitment to the Public Finance Market AGM1 Insured Portfolio Amortization Current and Projected Year-End Net Par Outstanding As of December 31, 2016 ($ in billions) • Assured Guaranty Municipal1 is committed to Public Finance Structured Finance insuring only U.S. publ
Slide 14: Municipal Assurance Corp. (MAC)
Municipal Assurance Corp. (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 December 31, 2016, Municipal Assurance Corp. (MAC) has: • $1.4 billion in claims-paying resources, consisting of $
Slide 15: AGC is Our Most Diversified Platform
AGC is Our Most Diversified Platform • AGC, a diversified insurer, will write all classes Net Par Outstanding1 of financial guaranty business, including: U.S. As of December 31, 2016 ($ in billions) public finance, global infrastructure and structured finance Non-U.S. Non-U.S. • Structured finance n
Slide 16: AG Re's Operating Structure
AG Re’s Operating Structure Net Par Outstanding As of December 31, 2016 ($ in billions) • AG Re is an insurance company primarily engaged in providing Non-U.S. Structured reinsurance to financial guarantors Non-U.S. Finance Public $0.3 – AG Re is rated AA (stable outlook) by S&P Finance A- average r
Slide 17: Underwriting Discipline
Underwriting Discipline • Our U.S. public finance portfolio, our largest exposure category, generally performed well Consolidated Net Par Outstanding during the recession and in subsequent As of December 31, 2016 years, despite persistent financial pressures ($ in billions) U.S. on municipal obligor
Slide 18: Creating Value: New Business Production
Creating Value New Business Production (Par Insured) Penetration in the U.S. Public Finance Market • We are focused on building demand for our New Issue U.S. Public Finance guaranties, both in the primary and the Insured Par Sold and Transaction Penetration1 secondary markets for U.S. public finance
Slide 19: Broadening Market Awareness Advertising Campaigns
Broadening Market Awareness Advertising Campaigns ISSUERS INSTITUTIONAL MAC RETAIL SECONDARY MARKET 18
Slide 20: Select Municipal Transactions in 2016
Assured Guaranty Select Municipal Transactions in 2016 In the Primary Market, $14.2 Billion of Insured Par on Over 900 Transactions Sold With Our Insurance in 20161, Including These Selected Issues $122,515,000 $72,000,324 $133,595,000 $105,140,000 $114,505,000 $172,020,000 Combined Fee Revenue 0 Fi
Slide 21: Creating Value: U.S. Structured Finance Business Activity
Creating Value New Business Production U.S. Structured Finance Business Activity • Focus has been on bilateral transactions to improve capital management efficiency • In 2016, completed the following: • Provided reinsurance related to Triple-X U.S. Structured PVP1 excess of loss life transactions ($
Slide 22: Creating Value: Non-U.S. Business Activity
Creating Value New Business Production Non-U.S. Business Activity • During 4Q-16, we guaranteed a U.K. student housing transaction Non-U.S. PVP1 by Quarter ($ in millions) • During 3Q-16 and 2Q-16, we issued secondary market financial guarantees on $28 utility bonds • During 1Q-16, we guaranteed a r
Slide 23: Creating Value: Alternative Strategies, MBIA UK Acquisition
Creating Value Alternative Strategies MBIA UK Acquisition • On January 10, 2017, AGC completed its acquisition of MBIA UK Insurance Limited (“MBIA UK”). AGC exchanged all its holdings of the Zohar II 2005-1 notes (which had an outstanding par of $347 million and fair value of $334 million as of the
Slide 24: MBIA UK Acquisition
Creating Value MBIA UK Acquisition Net Par Exposure1 ($ in millions) Assured Guaranty Ltd. MBIA UK Assured Guaranty Ltd. 12/31/2016 12/31/2016 Pro Forma Non-U.S. Structured Non-U.S. Non-U.S. Finance 0% Structured Finance Structured $0.1 $3.1 Finance $3.1 <1% Non-U.S. 1% Non-U.S. Public 1% Public U.S
Slide 25: Creating Value: Commutations
Creating Value Commutations • Reassumption of previously ceded business has increased the unearned premium reserve and Ceded Par Outstanding by Reinsurer non-GAAP adjusted book value1 As of December 31, 2016 Commutation Reassumed Par Reassumed UPR Gain / (Loss) Net Par ($ in millions) Year ($ in bil
Slide 26: Creating Value: Loss Mitigation
Creating Value Loss Mitigation Bond Purchases • Since 2008, for loss mitigation purposes, we have strategically purchased bonds we had previously insured. Besides reducing our losses, these purchases can potentially relieve rating agency capital charges, increase future investment income and increas
Slide 27: Financial Strength Ratings
Financial Strength Ratings • On January 13, 2017, AGC requested that Moody’s Financial Strength Ratings withdraw AGC’s financial strength rating As of December 31, 2016 – Since Moody’s assigned AGC’s current rating, the rating S&P Moody’s KBRA has failed to keep pace with the substantial strengtheni
Slide 28: Net Par Outstanding Amortization
Net Par Outstanding Amortization Consolidated Net Par Outstanding Amortization1 • Amortization of the existing portfolio reduces rating As of December 31, 2016 ($ in billions) agency capital charges, but also embedded future earned premiums $640 Public Finance $617 Structured Finance • New direct or
Slide 29: Insured Portfolio and Capital Changes Since the Global Financial Crisis
Assured Guaranty Today Insured Portfolio and Capital Changes Since the Global Financial Crisis Claims-Paying Resources Insured Leverage $ in billions $13.1 $12.8 $12.6 $12.3 $12.3 72.2x 71.6x $12.1 $12.2 64.5x 61.3x $11.7 54.6x 48.0x 47.4x 47.9x 42.2x 40.8x 40.3x 35.8x 34.3x 4Q-09 4Q-10 4Q-11 4Q-12
Slide 30: AGL Consolidated Investment Portfolio
AGL Consolidated Investment Portfolio Fair Value as of December 31, 2016 Total Invested Assets and Cash1 Total Invested Assets and Cash1,2 By Category By Rating U.S. Other Other U.S. Treasuries, Invested 6 Invested Treasuries & Agency Gov't & Assets AAA Short-term NR Assets Cash Government Obligatio
Slide 31: 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 securities market’s pricing
Slide 32: Assured Guaranty Ltd. Consolidated Insured Portfolio Overview
Assured Guaranty Ltd. Consolidated Insured Portfolio Overview
Slide 33: AGL Consolidated Insured Portfolio
AGL Consolidated Insured Portfolio Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Sector Non-U.S. Non-U.S. Structured Public Finance Finance U.S. 1% 9% Structured Finance 7% U.S. Public Finance 83% $296.3 billion1,2 Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Str
Slide 34: AGL Consolidated Insured Portfolio Ratings
AGL Consolidated Insured Portfolio Ratings Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Rating BIG AAA 4% 5% AA 18% BBB 25% A 48% $296.3 billion1,2 Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance BIG AAA BIG
Slide 35: Puerto Rico Exposure
Public Finance Puerto Rico Exposure Par Exposure to the Commonwealth and its Agencies As of December 31, 2016 Net Par Gross Par ($ in millions) Outstanding2,5 Outstanding Commonwealth Commonwealth of Puerto Rico - General Obligation Bonds4 $1,476 $1,577 Constitutionally Puerto Rico Public Buildings
Slide 36: Puerto Rico Net Par Amortization
Public Finance Puerto Rico Exposure Scheduled Net Par Amortization of Exposure to the Commonwealth and its Agencies1 As of December 31, 2016 1Q 2Q 3Q 4Q 2027- 2032- 2037- 2042- ($ in millions) 2017 2017 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2031 2036 2041 2047 Total Commonwealth Con
Slide 37: Puerto Rico Net Debt Service Amortization
Public Finance Puerto Rico Exposure Scheduled Net Debt Service Amortization of Exposure to the Commonwealth and its Agencies1 As of December 31, 2016 1Q 2Q 3Q 4Q 2027- 2032- 2037- 2042- ($ in millions) 2017 2017 2017 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2031 2036 2041 2047 Total Commonw
Slide 38: Detroit & Stockton Exposure
AGL Consolidated Detroit & Stockton Exposure Details of Assured Guaranty’s Exposure to Detroit • Municipal utilities exposure is $446 million of water revenue bonds and $1,054 million of sewer revenue bonds. Both the water and sewer systems provide services to areas that extend significantly beyond
Slide 39: Structured Finance Exposures
Structured Finance Exposures Net Par Outstanding By Type As of December 31, 2016 ($ in billions) • We expect Assured Guaranty’s global U.S. and structured finance insured portfolio ($25.1 Non-U.S. Pooled billion as of December 31, 2016) to amortize Other Structured 46% Corporate rapidly ─ 40% expect
Slide 40: Consolidated U.S. RMBS
Consolidated U.S. RMBS • Our $5.6 billion U.S. RMBS portfolio is amortizing both on a dollar basis and as a U.S. RMBS by Exposure Type percentage of the portfolio As of December 31, 2016 ($ in billions) – Total U.S. RMBS has declined from $29.2 billion at Subprime December 31, 2009 to $5.6 billion a
Slide 41: Consolidated Non-U.S. Exposure
Consolidated Non-U.S. Exposure Non-U.S. Public and Structured Finance Non-U.S. Exposure As of December 31, 2016 ($ in billions) • 90% of non-U.S. exposure is Public Finance Other Canada – Direct sovereign debt is limited to Poland ($208 $5.9 $2.7 million outstanding) 20% 9% 6% France $1.8 • 10% of n
Slide 42: AGM Portfolio Review
AGM Portfolio Review Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret
Slide 43: AGM Insured Portfolio Overview
AGM1 Insured Portfolio Overview Net Par Outstanding1,2 As of December 31, 2016 • AGM’s1 portfolio is diversified by asset ($ in billions) class Non-U.S. Public Finance – 77% U.S. public finance Non-U.S. $16.0 Structured BBB+ average – 9% U.S. structured finance Finance rating $1.7 – 13% Non-U.S. pub
Slide 44: AGM Insured Portfolio
AGM1 Insured Portfolio Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Sector Non-U.S. Public Non-U.S. Finance Structured 13% Finance 1% U.S. Structured Finance 9% U.S. Public $122.7 billion2 Finance 77% Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finan
Slide 45: AGM Insured Portfolio Ratings
AGM1 Insured Portfolio Ratings Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Rating BIG AAA 5% 7% AA 15% BBB 28% A 46% $122.7 billion2 Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance BIG AAA BIG AAA AA 3% <1%
Slide 46: AGM Net Par Outstanding By Asset Type
AGM1 Insured Portfolio Net Par Outstanding as of December 31, 2016 Net Par Outstanding By Asset Type ($ in millions) Net Par Avg. Internal Net Par Avg. Internal Outstanding Rating Outstanding Rating U.S. public finance: U.S. structured finance: General obligation $ 36,920 A- Pooled corporate obligat
Slide 47: Reinsurance
Reinsurance AGM1 Has Ceded 6% 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: $189.3 billion $10.5 billion (6%) As of December 31, 2016 As of December 31, 2016 Ceded to Assure
Slide 48: AGM Amortization of Global Insured Structured Finance Portfolio
AGM1 Amortization of Global Insured Structured Finance Portfolio Other Structured BIG Finance $2.3 Financial Products 3 $0.8 (GICs) $1.5 BBB $0.3 A $0.2 U.S. Consumer AAA Receivables $6.9 U.S. and Non-U.S. $0.1 Pooled Corporate AA $6.5 $2.5 U.S. Residential Mortgages • We expect AGM’s legacy global
Slide 49: AGM U.S. RMBS Exposure
AGM1 U.S. RMBS Exposure By Type As of December 31, 2016 ($ 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 <$1.0 Lien $0.4 of the portfolio 1% – $3.3 billion net par outstanding versus $17.1 billion at 13% yea
Slide 50: AGM Non-RMBS Exposure
AGM1 Non-RMBS Exposure U.S. Structured Finance U.S. Non-RMBS Structured Finance • 75% of AGM’s1 non-RMBS U.S. As of December 31, 2016 Other structured finance portfolio consists of ($ in billions) Structured Finance pooled corporate obligations $0.2 – 100% of U.S. pooled corporate exposure is Consum
Slide 51: AGM Global Pooled Corporate Obligations
AGM1 Global Pooled Corporate Obligations Pooled Corporate Obligations • AGM’s1 pooled corporate exposure is By Asset Class generally highly rated and well protected December 31, 2016 – Average current credit enhancement of 23.4% ($ in billions) Other – 90% rated AAA $0.2 – AAA average rating 2 CBOs/
Slide 52: AGM Investment Portfolio
AGM1 Investment Portfolio Fair Value as of December 31, 2016 Total Invested Assets and Cash2 Total Invested Assets and Cash2,3 By Category By Rating Other U.S. Cash Invested Short-term <1% Treasuries & Agency U.S. 7 Government AAA Assets 3% Treasuries, Obligations Obligations 14% 1% <1% Gov't <1% As
Slide 53: AGM Consolidated Expected Loss and LAE to Be Paid
AGM Consolidated1 Expected Loss and Loss Adjustment Expense (LAE) to Be Paid As of December 31, 2016 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Three Months Ended December 31, 2016 Net Expected Loss Net Expected Loss to be Paid Economic Loss (Paid) Recovered to be Pa
Slide 54: AGM Consolidated Expected Loss and LAE to Be Paid
AGM Consolidated1 Expected Loss and Loss Adjustment Expense (LAE) to Be Paid As of December 31, 2016 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Year Ended December 31, 2016 Net Expected Loss Net Expected Loss to be Paid Economic Loss (Paid) Recovered to be Paid (Reco
Slide 55: Municipal Assurance Corp. Portfolio Review
Municipal Assurance Corp. Portfolio Review
Slide 56: MAC Insured Portfolio (100% U.S. Public Finance)
MAC Insured Portfolio (100% U.S. Public Finance) Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Sector Portfolio Diversification by Rating 1 BIG AAA Muni Utility 2% <1% AA Revenue 27% 15% BBB 14% Tax Backed 14% General Obligations 60% Other 11% A 57% $56.6 billion Net Par O
Slide 57: MAC Investment Portfolio
MAC Investment Portfolio Fair Value as of December 31, 2016 Total Invested Assets and Cash1 Total Invested Assets and Cash1,2 By Category By Rating U.S. Treasuries & U.S. Cash Government Treasuries, 4 <1% Obligations Agency Gov't AAA 1% Obligations & 10% Short-term Obligations Agency 2% 1% Obligatio
Slide 58: Assured Guaranty Corp. Portfolio Review
Assured Guaranty Corp. Portfolio Review Eiffage CEVM / Foster + Partners / Jean-Pierre Lescourret
Slide 59: AGC Insured Portfolio Overview
AGC Insured Portfolio Overview • AGC’s portfolio is diversified by asset Net Par Outstanding class As of December 31, 2016 ($ in billions) – 66% U.S. public finance Non-U.S. Non-U.S. – 22% U.S. structured finance Public Structured Finance Finance – 10% Non-U.S. public finance $3.8 $1.1 A- average ra
Slide 60: AGC Insured Portfolio
AGC Insured Portfolio Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Sector Non-U.S. Non-U.S. Structured Public Finance Finance U.S. 3% 10% Structured Finance 22% U.S. Public $37.5 billion Finance 66% Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance
Slide 61: AGC Insured Portfolio Ratings
AGC Insured Portfolio Ratings Net Par Outstanding as of December 31, 2016 Portfolio Diversification by Rating BIG AAA 12% 12% AA 15% BBB 24% A 37% $37.5 billion Non-U.S. Portfolios U.S. Public Finance Portfolio U.S. Structured Finance Portfolio Public & Structured Finance AAA AA BIG BIG BIG <1% 14%
Slide 62: AGC Net Par Outstanding By Asset Type
AGC Insured Portfolio Net Par Outstanding as of December 31, 2016 Net Par Outstanding By Asset Type ($ in millions) Net Par Avg. Internal Net Par Avg. Internal Outstanding Rating Outstanding Rating U.S. public finance: U.S. structured finance: General obligation $ 6,546 BBB+ Pooled corporate obligat
Slide 63: Reinsurance
Reinsurance AGC Has Ceded 1.0% of Its Gross Insured Portfolio to Several Non-Affiliated Reinsurers and Other Monolines (1) AGC’s Total Gross Par Outstanding: Externally Ceded Par Outstanding: $72.0 billion $0.6 billion (1.0%) As of December 31, 2016 As of December 31, 2016 Ceded to Assured ($ in bil
Slide 64: AGC U.S. RMBS Exposure
AGC U.S. RMBS Exposure By Type As of December 31, 2016 ($ in billions) Alt-A First Second • AGC’s U.S. RMBS portfolio is amortizing on Lien $0.5 Lien $0.2 an absolute basis and has declined as a percentage of the portfolio Prime First 25% Lien – $1.8 billion versus $13.4 billion at year-end 2007, $0
Slide 65: AGC Non-RMBS Exposure
AGC Non-RMBS Exposure U.S. Structured Finance U.S. Non-RMBS Structured Finance • AGC’s non-RMBS U.S. structured finance As of December 31, 2016 ($ in billions) exposures consist principally of: Other – Pooled corporate obligations structured finance Commercial – Consumer receivables receivables $0.2
Slide 66: AGC Global Direct Pooled Corporate Obligations
AGC Global Direct Pooled Corporate Obligations • Our pooled corporate exposure is highly rated and Direct Pooled Corporate Obligations1 protected by overcollateralization. In AGC’s direct By Asset Class portfolio: As of December 31, 2016 ($ in billions) – Average current credit enhancement of 33.2%
Slide 67: AGC Investment Portfolio
AGC Investment Portfolio Fair Value as of December 31, 2016 Total Invested Assets and Cash1 Total Invested Assets and Cash1,2 By Category By Rating Other U.S. Invested Agency Treasuries & Assets Obligations Foreign Government 6 3% 2% Gov't AAA Short-term Obligations U.S. Cash 3% Securities 14% 3% Tr
Slide 68: AGC Expected Loss and LAE to Be Paid
AGC Expected Loss and LAE to Be Paid As of December 31, 2016 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Three Months Ended December 31, 2016 Net Expected Loss to Economic Loss (Paid) Recovered Net Expected Loss to be Paid (Recovered) as Development During Losses Duri
Slide 69: AGC Expected Loss and LAE to Be Paid
AGC Expected Loss and LAE to Be Paid As of December 31, 2016 ($ in millions) Rollforward of Net Expected Loss and LAE to be Paid for the Year Ended December 31, 2016 Net Expected Loss to Net Expected Loss to be Paid (Recovered) Economic Loss (Paid) Recovered Net Expected Loss to be Paid (Recovered)
Slide 70: Appendix
ASSURED GUARANTY
Slide 71: Explanation of Non-GAAP Financial Measures
Appendix Explanation of Non-GAAP Financial Measures To reflect the key financial measures that management analyzes in evaluating the Company’s operations and progress towards long-term goals, the Company discloses both financial measures determined in accordance with GAAP and financial measures not
Slide 72: Explanation of Non-GAAP Financial Measures
Appendix Explanation of Non-GAAP Financial Measures Operating Income: Management believes that operating income is a useful measure because it clarifies the understanding of the underwriting results and financial conditions of the Company and presents the results of operations of the Company excludi
Slide 73: Explanation of Non-GAAP Financial Measures (Cont'd)
Appendix Explanation of Non-GAAP Financial Measures (Cont’d) Non-GAAP Adjusted Book Value: Management uses non-GAAP adjusted book value, adjusted for FG VIE consolidation, to measure the intrinsic value of the Company, excluding franchise value. Growth in non-GAAP adjusted book value per share adjus
Slide 74: Reconciliation of Gross Written Premiums (GWP) to PVP
Appendix Reconciliation of Gross Written Premiums (GWP) to PVP1 Reconciliation of GWP to PVP Year Ended December 31, (dollars in millions) 2016 2015 2014 2013 2012 Total GWP $154 $181 $104 $123 $253 Less: Installment GWP and other GAAP adjustments1 (10) 55 (22) 8 88 Plus: Financial guaranty intallme
Slide 75: Reconciliation of Net Income (Loss) to Operating Income
Appendix Reconciliation of Net Income (Loss) to Operating Income1 Three Month Ended Year Ended Non-GAAP Operating Income Reconciliation December 31, December 31, (dollars in millions, except per share amounts) 2016 2015 2016 2015 Per Diluted Per Diluted Per Diluted Per Diluted Total Share Total Shar
Slide 76: Reconciliation of Shareholders' Equity to non-GAAP Adjusted Book Value
Appendix Reconciliation of Shareholders’ Equity to non-GAAP Adjusted Book Value1 Non-GAAP Adjusted book value reconciliation As of December 31, (dollars in millions, except per share amounts) 2016 2015 Total Per Share Total Per Share Reconciliation of shareholders' equity to adjusted book value: Sha
Slide 77: Reconciliation of GAAP ROE to Non-GAAP Operating ROE
Appendix Reconciliation of GAAP ROE to Non-GAAP Operating ROE ROE Reconciliation Three Months Ended Year Ended (dollars in millions) December 31, December 31, 2016 2015 2016 2015 Net income (loss) $197 $429 $881 $1,056 Operating income 139 130 895 710 Gain (loss) related to FG VIE consolidation incl
Slide 78: 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
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