Assured Guaranty Q4 net income rises significantly

Overview

• Financial guaranty insurer's Q4 net income rose significantly, driven by strategic asset sale

• Company returned $147 mln to shareholders via share repurchases and dividends

• Gross written premiums for Q4 were $61 mln

Outlook

• Assured Guaranty expects strong results from financial guaranty product lines in 2026

• Company enters annuity reinsurance market to diversify revenue sources

Result Drivers

• ASSET SALE - Net income increase partly due to $23 mln gain from sale of a commercially leased building as part of a loss mitigation strategy

• FOREIGN EXCHANGE GAINS - Significant increase in net income due to $73 mln gain from foreign exchange remeasurement

• LOWER LOSS EXPENSES - Insurance segment adjusted operating income rose due to lower loss expenses and a gain from a building sale

Company press release: ID:nBw8MWsgda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the property & casualty insurance peer group is "buy"

• Wall Street's median 12-month price target for Assured Guaranty Ltd is $108.00, about 25.2% above its February 25 closing price of $86.24

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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