Assured Guaranty Ltd
) delivered operating net income of 56 cents per share in the
second quarter of 2014, surpassing the Zacks Consensus Estimate by
50%. Earnings improved 7.7% from the prior-year quarter on lower
Share price gained 3.3% to close at $22.70 on Friday.
Including one-time items, net income of Assured Guaranty came in at
89 cents per share, declining 23.2% year over year.
Assured Guaranty generated total revenue of $239 million, down
15.8% year over year due to significantly lower net earned
Net investment income of Assured Guaranty increased 3.2% year over
year to $97 million.
Present Value of New Business Production (PVP) improved 69% year
over year to $27 million. The company continued to benefit from a
diversified strategy, which includes targeting U.S. public finance,
international infrastructure and structured finance opportunities.
Total expenses of Assured Guaranty fell nearly 27% year over year
to $124 million. The decline was primarily attributed to lower loss
expense in the reported quarter.
Loss expense at Assured Guaranty fell 50% year over year to $41
million, largely attributable to improvements in U.S. RMBS expected
Assured Guaranty exited the quarter with $106 million in cash,
decreasing from $184 million as of 2013 end.
Operating shareholders' equity at quarter end stood at $6.15
billion, declining slightly from $6.16 billion as of 2013 end.
Long-term borrowings of Assured Guaranty were $1.3 billion as of
Jun 30 against $0.8 billion as of 2013 end.
Share Repurchase Update
Assured Guaranty bought back 7.1 million of its shares for $177
million and another 5.7 million shares since Jun 30. The board of
directors approved an additional $400 million share repurchase
authorization. Total buyback authorization stands at $445 million.
Assured Guaranty presently carries a Zacks Rank #3 (Hold).
Performance of Other Multi Line Insurers
While Cigna Corp. (
) and Assurant Inc. (
) surpassed their respective Zacks Consensus Estimate, CNO
Financial Group Inc. (
) missed the same in the second quarter.
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