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Assured Guaranty Beats on Q4 Earnings; Expenses Increase

Assured Guaranty Ltd.AGO posted operating net income of 83 cents per share in the fourth quarter of 20Array5. The bottom line not only surpassed the Zacks Consensus Estimate of 76 cents by 9.2% but also improved 66% year over year. The bottom line growth was mainly due to increase in financial guaranty insurance premium, higher credit derivative revenue from refundings and terminations as well as accretion from Radian Asset the acquisition.

Including one-time items, operating net income of Assured Guaranty came in at $3.03 per share, down 7.6% year over year.

Full-year 20Array5 Highlights

Assured Guaranty's full-year operating net income came in at a record $4.69 per share, up 65.7% year over year.

Total revenue for 20Array5 grew Array0.7% year over year to $2.2 billion.

Operational Update

Assured Guaranty generated total revenue of $775 million, down Array5.9% year over year.

Net earned premiums of $Array92 million increased 2Array.5% year over year on higher accelerations and contribution from the acquisition of Radian Asset Assurance Inc.

Total expenses of Assured Guaranty increased Array5.8% to $Array9Array million year over year, largely due to increase in loss and loss adjustment expenses.

Financial Details

Assured Guaranty exited the quarter with $Array66 million in cash, which soared Array2Array.3% from the 20Array4-end level.

Total shareholders' equity at 20Array5-end was $6.Array billion, up 5.3% from $5.76 billion at year-end 20Array4.

Long-term borrowings by Assured Guaranty inched up 0.2% from the 20Array4-end level to Array.3 billion.

Book value grew Array4% from year-end 20Array4 to a record $6Array.Array8 per share as of Dec 3Array, 20Array5.

Share Repurchase Update

In 20Array5, Assured Guaranty spent $555 million to buy back 2Array million shares. On Feb 24, 20Array6, an additional $250 million share repurchase program was approved by the board of directors of the company.

Zacks Rank and Performance by Other Multi-Line Insurers

Assured Guaranty carries a Zacks Rank #3 (Hold). The bottom line at The Hartford Financial Services Group, Inc. HIG , CNO Financial Group, Inc. CNO and Cigna Corp. CI outperformed their respective Zacks Consensus Estimate in the fourth-quarter.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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