EX-99.2 3 agl4q23supplement.htm AGL FINANCIAL SUPPLEMENT
Assured Guaranty Ltd.
December 31, 2023
Financial Supplement

Table of Contents |  |  | Page
| Selected Financial Highlights | 1
| Condensed Consolidated Statements of Operations (unaudited) | 3
| Condensed Consolidated Balance Sheets (unaudited) | 4
| Selected Financial Highlights GAAP to Non-GAAP Reconciliations | 5
| Income Components | 8
| Fixed-Maturity Securities, Short-Term Investments and Cash | 12
| Investment Portfolio, Cash and CIVs | 13
| Income from Investment Portfolio and CIVs | 15
| Insurance Segment: | 17
| Insurance Segment Results | 18
| Claims-Paying Resources | 19
| New Business Production | 20
| Gross Par Written | 21
| New Business Production by Quarter | 23
| Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues | 24
| Roll Forward of Net Expected Loss and Loss Adjustment Expenses to be Paid | 25
| Loss Measures | 26
| Net Expected Loss to be Expensed | 27
| Financial Guaranty Profile | 28
| Specialty Business | 31
| Expected Amortization of Net Par Outstanding | 32
| Exposure to Puerto Rico | 33
| U.S. RMBS Profile | 35
| Direct Pooled Corporate Obligations Profile | 36
| Below Investment Grade Exposures | 37
| Largest Exposures by Sector | 40
| Asset Management Segment | 43
| Asset Management Results | 44
| Corporate Division | 45
| Corporate Results | 46
| Other | 47
| Other Results | 48
| Summary | 50
| Summary of Financial and Statistical Data | 51
| Summary of GAAP to Non-GAAP Reconciliations | 52
| Glossary | 54
| Non-GAAP Financial Measures | 57

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2023.

Cautionary Statement Regarding Forward Looking Statements:
Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (1) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession or stagflation; (2) geopolitical risk, including Russia’s invasion of Ukraine and risk of intentional or accidental escalation between The North Atlantic Treaty Organization (NATO) and Russia, conflict in the Middle East, confrontation over Iran’s nuclear program, United States (U.S.) – China strategic competition and pursuit of technological independence; (3) global terrorism risk with threats increasing from conflicts in the Middle East and Ukraine/Russia, and the polarized political environment of the 2024 U.S. presidential election; (4) the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets; (5) the possibility of a U.S government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (6) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events; (7) developments in the world’s financial and capital markets, including stresses in the financial condition of banking institutions in the U.S., that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty; (8) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance; (9) the possibility that budget or pension shortfalls or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (10) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including as a result of the final resolution of Assured Guaranty’s Puerto Rico Electric Power Authority exposure or the amounts recovered on securities received in connection with the resolution of Puerto Rico exposures already resolved; (11) the impact of the Company satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds; (12) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers; (13) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences; (14) the impacts of Assured Guaranty’s transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP) on Assured Guaranty and its relationships with its shareholders, regulators, rating agencies, employees and the obligors it insures and on the asset management business contributed to Sound Point, LP and on the business of AHP and their relationships with their respective clients and employees; (15) the possibility that strategic transactions made by Assured Guaranty, including the consummation of the transactions with Sound Point and/or AHP, do not result in the benefits anticipated or subject Assured Guaranty to negative consequences; (16) the inability to control the business, management or policies of entities in which the Company holds a minority interest; (17) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities, its consolidated investment vehicles and certain consolidated variable interest entities (VIEs); (18) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured; (19) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (20) changes in applicable accounting policies or practices; (21) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (22) difficulties with the execution of Assured Guaranty’s business strategy; (23) loss of key personnel; (24) the effects of mergers, acquisitions and divestitures; (25) natural or man-made catastrophes; (26) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk; (27) other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission (SEC); (28) other risks and uncertainties that have not been identified at this time; and (29) management’s response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Assured Guaranty Ltd.
Selected Financial Highlights (1 of 2)
(dollars in millions, except per share amounts)

| Three Months Ended |  | Year Ended
| December 31, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
GAAP (1) Highlights |  |  |  |  |  |  |
Net income (loss) attributable to AGL | $ | 376 |  |  | $ | 94 |  |  | $ | 739 |  |  | $ | 124 |
Net income (loss) attributable to AGL per diluted share | $ | 6.40 |  |  | $ | 1.52 |  |  | $ | 12.30 |  |  | $ | 1.92 |
Weighted average shares outstanding |  |  |  |  |  |  |
Basic shares outstanding | 57.0 |  |  | 59.8 |  |  | 58.4 |  |  | 62.9 |
Diluted shares outstanding | 58.3 |  |  | 61.0 |  |  | 59.6 |  |  | 63.9 |
Effective tax rate on net income | (87.9) | % |  | 16.8 | % |  | (13.9) | % |  | 7.2 | %
GAAP return on equity (ROE) (4) | 27.5 | % |  | 7.5 | % |  | 13.7 | % |  | 2.2 | %
Non-GAAP Highlights (2) |  |  |  |  |  |  |
Adjusted operating income (loss) | $ | 338 |  |  | $ | 14 |  |  | $ | 648 |  |  | $ | 267 |
Adjusted operating income (loss) per diluted share | $ | 5.75 |  |  | $ | 0.22 |  |  | $ | 10.78 |  |  | $ | 4.14 |
Weighted average diluted shares outstanding | 58.3 |  |  | 61.0 |  |  | 59.6 |  |  | 63.9 |
Effective tax rate on adjusted operating income (3) | (117.0) | % |  | 61.4 | % |  | (19.6) | % |  | 9.2 | %
Adjusted operating ROE (4) | 23.1 | % |  | 1.0 | % |  | 11.2 | % |  | 4.6 | %
Components of adjusted operating income (loss) (2) |  |  |  |  |  |  |
Insurance segment | $ | 339 |  |  | $ | 66 |  |  | $ | 621 |  |  | $ | 413 |
Asset Management segment | 6 |  |  | (3) |  |  | 3 |  |  | (6) |
Corporate division | (16) |  |  | (36) |  |  | 45 |  |  | (134) |
Other (6) | 9 |  |  | (13) |  |  | (21) |  |  | (6) |
Adjusted operating income (loss) | $ | 338 |  |  | $ | 14 |  |  | $ | 648 |  |  | $ | 267 |
Insurance Segment |  |  |  |  |  |  |
Gross written premiums (GWP) | $ | 136 |  |  | $ | 131 |  |  | $ | 357 |  |  | $ | 360 |
Present value of new business production (PVP) (2) | 155 |  |  | 135 |  |  | 404 |  |  | 375 |
Gross par written | 8,675 |  |  | 7,035 |  |  | 28,960 |  |  | 22,047 |
Effect of refundings and terminations on GAAP measures: |  |  |  |  |  |  |
Net earned premiums, pre-tax | $ | 3 |  |  | $ | 34 |  |  | $ | 29 |  |  | $ | 179 |
Fair value gains (losses) of credit derivatives, pre-tax | — |  |  | — |  |  | 1 |  |  | 2 |
Net income effect | 2 |  |  | 27 |  |  | 23 |  |  | 142 |
Net income per diluted share | 0.04 |  |  | 0.44 |  |  | 0.39 |  |  | 2.23 |
Effect of refundings and terminations on non-GAAP measures: |  |  |  |  |  |  |
Operating net earned premiums and credit derivative revenues (5), pre-tax | $ | 3 |  |  | $ | 34 |  |  | $ | 30 |  |  | $ | 181 |
Adjusted operating income (5) effect | 2 |  |  | 27 |  |  | 23 |  |  | 142 |
Adjusted operating income per diluted share (5) | 0.04 |  |  | 0.44 |  |  | 0.39 |  |  | 2.23 |

1) Accounting principles generally accepted in the United States of America (GAAP).
2) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
3) Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.
4) Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.
5) Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums and credit derivative revenues) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
6) Represents the effect of consolidating financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs) (FG VIE and CIV consolidation).
1

Assured Guaranty Ltd.
Selected Financial Highlights (2 of 2)
(dollars in millions, except per share amounts)

|  | As of
|  | December 31, 2023 |  | December 31, 2022
|  | Amount |  | Per Share |  | Amount |  | Per Share
Shareholders’ equity attributable to AGL |  | $ | 5,713 |  |  | $ | 101.63 |  |  | $ | 5,064 |  |  | $ | 85.80 |
Adjusted operating shareholders’ equity (1) |  | 5,990 |  |  | 106.54 |  |  | 5,543 |  |  | 93.92 |
Adjusted book value (1) |  | 8,765 |  |  | 155.92 |  |  | 8,379 |  |  | 141.98 |
Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |  |  |
Adjusted operating shareholders’ equity |  | 5 |  |  | 0.07 |  |  | 17 |  |  | 0.28 |
Adjusted book value |  | — |  |  | — |  |  | 11 |  |  | 0.19 |
Shares outstanding at the end of period |  | 56.2 |  |  |  |  | 59.0 |  |  |
Exposure |  |  |  |  |  |  |  |
Financial guaranty net debt service outstanding |  | $ | 397,636 |  |  |  |  | $ | 369,951 |  |  |
Financial guaranty net par outstanding: |  |  |  |  |  |  |  |
Investment grade |  | $ | 243,716 |  |  |  |  | $ | 227,366 |  |  |
Below-investment-grade (BIG) |  | 5,437 |  |  |  |  | 5,892 |  |  |
Total |  | 249,153 |  |  |  |  | 233,258 |  |  |
Claims-paying resources (2) |  | $ | 10,665 |  |  |  |  | $ | 10,818 |  |  |
AUM |  | $ | — |  |  |  |  | $ | 17,464 |  |  |

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
2) See page 19 for additional detail on claims-paying resources.
2

Assured Guaranty Ltd.
Condensed Consolidated Statements of Operations (unaudited)
(dollars in millions, except per share amounts)

|  | Three Months Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Revenues |  |  |  |  |  |  |  |
Net earned premiums |  | $ | 83 |  |  | $ | 109 |  |  | $ | 344 |  |  | $ | 494 |
Net investment income |  | 95 |  |  | 78 |  |  | 365 |  |  | 269 |
Asset management fees |  | — |  |  | 22 |  |  | 53 |  |  | 93 |
Net realized investment gains (losses) |  | 6 |  |  | (17) |  |  | (14) |  |  | (56) |
Fair value gains (losses) on credit derivatives |  | (1) |  |  | 31 |  |  | 114 |  |  | (11) |
Fair value gains (losses) on committed capital securities (CCS) |  | — |  |  | 12 |  |  | (35) |  |  | 24 |
Fair value gains (losses) on FG VIEs |  | 10 |  |  | (5) |  |  | 8 |  |  | 22 |
Fair value gains (losses) on CIVs |  | 28 |  |  | (8) |  |  | 88 |  |  | 17 |
Foreign exchange gains (losses) on remeasurement |  | 44 |  |  | 69 |  |  | 53 |  |  | (112) |
Fair value gains (losses) on trading securities |  | 32 |  |  | (4) |  |  | 74 |  |  | (34) |
Gain on sale of asset management subsidiaries |  | 7 |  |  | — |  |  | 262 |  |  | — |
Other income (loss) |  | 23 |  |  | 5 |  |  | 61 |  |  | 17 |
Total revenues |  | 327 |  |  | 292 |  |  | 1,373 |  |  | 723 |
Expenses |  |  |  |  |  |  |  |
Loss and loss adjustment expense (LAE) (benefit) |  | 3 |  |  | 45 |  |  | 162 |  |  | 16 |
Interest expense |  | 23 |  |  | 21 |  |  | 90 |  |  | 81 |
Amortization of deferred acquisition costs (DAC) |  | 3 |  |  | 3 |  |  | 13 |  |  | 14 |
Employee compensation and benefit expenses |  | 52 |  |  | 69 |  |  | 251 |  |  | 258 |
Other operating expenses |  | 47 |  |  | 47 |  |  | 217 |  |  | 167 |
Total expenses |  | 128 |  |  | 185 |  |  | 733 |  |  | 536 |
Income (loss) before income taxes and equity in earnings (losses) of investees |  | 199 |  |  | 107 |  |  | 640 |  |  | 187 |
Equity in earnings (losses) of investees |  | 3 |  |  | (8) |  |  | 28 |  |  | (39) |
Income (loss) before income taxes |  | 202 |  |  | 99 |  |  | 668 |  |  | 148 |
Less: Provision (benefit) for income taxes |  | (177) |  |  | 17 |  |  | (93) |  |  | 11 |
Net income (loss) |  | 379 |  |  | 82 |  |  | 761 |  |  | 137 |
Less: Noncontrolling interests |  | 3 |  |  | (12) |  |  | 22 |  |  | 13 |
Net income (loss) attributable to AGL |  | $ | 376 |  |  | $ | 94 |  |  | $ | 739 |  |  | $ | 124 |
Earnings per share: |  |  |  |  |  |  |  |
Basic |  | $ | 6.54 |  |  | $ | 1.55 |  |  | $ | 12.54 |  |  | $ | 1.95 |
Diluted |  | $ | 6.40 |  |  | $ | 1.52 |  |  | $ | 12.30 |  |  | $ | 1.92 |

3

Assured Guaranty Ltd.
Condensed Consolidated Balance Sheets (unaudited)
(dollars in millions)

|  | As of
|  | December 31, |  | December 31,
|  | 2023 |  | 2022
Assets |  |  |  |
Investments: |  |  |  |
Fixed-maturity securities available-for-sale, at fair value |  | $ | 6,307 |  |  | $ | 7,119 |
Fixed-maturity securities, trading, at fair value |  | 318 |  |  | 303 |
Short-term investments, at fair value |  | 1,661 |  |  | 810 |
Other invested assets |  | 829 |  |  | 133 |
Total investments |  | 9,115 |  |  | 8,365 |
Cash |  | 97 |  |  | 107 |
Premiums receivable, net of commissions payable |  | 1,468 |  |  | 1,298 |
DAC |  | 161 |  |  | 147 |
Salvage and subrogation recoverable |  | 298 |  |  | 257 |
FG VIEs’ assets |  | 328 |  |  | 416 |
Assets of CIVs |  | 366 |  |  | 5,493 |
Goodwill and other intangible assets |  | 6 |  |  | 163 |
Other assets |  | 700 |  |  | 597 |
Total assets |  | $ | 12,539 |  |  | $ | 16,843 |
Liabilities |  |  |  |
Unearned premium reserve |  | $ | 3,658 |  |  | $ | 3,620 |
Loss and LAE reserve |  | 376 |  |  | 296 |
Long-term debt |  | 1,694 |  |  | 1,675 |
Credit derivative liabilities, at fair value |  | 53 |  |  | 163 |
FG VIEs’ liabilities, at fair value |  | 554 |  |  | 715 |
Liabilities of CIVs |  | 4 |  |  | 4,625 |
Other liabilities |  | 435 |  |  | 457 |
Total liabilities |  | 6,774 |  |  | 11,551 |
Shareholders’ equity |  |  |  |
Common shares |  | 1 |  |  | 1 |
Retained earnings |  | 6,070 |  |  | 5,577 |
Accumulated other comprehensive income (loss) |  | (359) |  |  | (515) |
Deferred equity compensation |  | 1 |  |  | 1 |
Total shareholders’ equity attributable to AGL |  | 5,713 |  |  | 5,064 |
Nonredeemable noncontrolling interests |  | 52 |  |  | 228 |
Total shareholders’ equity |  | 5,765 |  |  | 5,292 |
Total liabilities and shareholders’ equity |  | $ | 12,539 |  |  | $ | 16,843 |

4

Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (1 of 3)
(dollars in millions, except per share amounts)

Adjusted Operating Income Reconciliation |  | Three Months Ended |  | Year Ended
|  | December 31, |  | December 31,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
Net income (loss) attributable to AGL |  | $ | 376 |  |  | $ | 94 |  |  | $ | 739 |  |  | $ | 124 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |
Realized gains (losses) on investments |  | 6 |  |  | (17) |  |  | (14) |  |  | (56) |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | (3) |  |  | 28 |  |  | 106 |  |  | (18) |
Fair value gains (losses) on CCS |  | — |  |  | 12 |  |  | (35) |  |  | 24 |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves |  | 42 |  |  | 70 |  |  | 51 |  |  | (110) |
Total pre-tax adjustments |  | 45 |  |  | 93 |  |  | 108 |  |  | (160) |
Less tax effect on pre-tax adjustments |  | (7) |  |  | (13) |  |  | (17) |  |  | 17 |
Adjusted operating income (loss) |  | $ | 338 |  |  | $ | 14 |  |  | $ | 648 |  |  | $ | 267 |
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income |  | $ | 9 |  |  | $ | (13) |  |  | $ | (21) |  |  | $ | (6) |
Components of adjusted operating income: |  |  |  |  |  |  |  |
Segments: |  |  |  |  |  |  |  |
Insurance |  | $ | 339 |  |  | $ | 66 |  |  | $ | 621 |  |  | $ | 413 |
Asset Management |  | 6 |  |  | (3) |  |  | 3 |  |  | (6) |
Total segments |  | 345 |  |  | 63 |  |  | 624 |  |  | 407 |
Corporate division |  | (16) |  |  | (36) |  |  | 45 |  |  | (134) |
Other |  | 9 |  |  | (13) |  |  | (21) |  |  | (6) |
Adjusted operating income (loss) |  | $ | 338 |  |  | $ | 14 |  |  | $ | 648 |  |  | $ | 267 |
Per diluted share: |  |  |  |  |  |  |  |
Net income (loss) attributable to AGL |  | $ | 6.40 |  |  | $ | 1.52 |  |  | $ | 12.30 |  |  | $ | 1.92 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |
Realized gains (losses) on investments |  | 0.11 |  |  | (0.29) |  |  | (0.23) |  |  | (0.87) |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | (0.06) |  |  | 0.47 |  |  | 1.75 |  |  | (0.27) |
Fair value gains (losses) on CCS |  | — |  |  | 0.19 |  |  | (0.57) |  |  | 0.37 |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves |  | 0.71 |  |  | 1.13 |  |  | 0.84 |  |  | (1.72) |
Total pre-tax adjustments |  | 0.76 |  |  | 1.50 |  |  | 1.79 |  |  | (2.49) |
Less tax effect on pre-tax adjustments |  | (0.11) |  |  | (0.20) |  |  | (0.27) |  |  | 0.27 |
Adjusted operating income (loss) |  | $ | 5.75 |  |  | $ | 0.22 |  |  | $ | 10.78 |  |  | $ | 4.14 |
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income |  | $ | 0.15 |  |  | $ | (0.22) |  |  | $ | (0.35) |  |  | $ | (0.10) |

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
5

Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (2 of 3)
(dollars in millions)

ROE Reconciliation and Calculation |  |  |  |  |  |  |  |  |  |
|  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31,
|  | 2023 |  | 2023 |  | 2022 |  | 2022 |  | 2021
Shareholders’ equity attributable to AGL |  | $ | 5,713 |  |  | $ | 5,252 |  |  | $ | 5,064 |  |  | $ | 4,929 |  |  | $ | 6,292 |
Adjusted operating shareholders’ equity |  | 5,990 |  |  | 5,735 |  |  | 5,543 |  |  | 5,575 |  |  | 5,991 |
Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders’ equity |  | 5 |  |  | 4 |  |  | 17 |  |  | 27 |  |  | 32 |
|  |  |  | Three Months Ended |  | Year Ended
|  |  |  | December 31, |  | December 31,
|  |  |  | 2023 |  | 2022 |  | 2023 |  | 2022
Net income (loss) attributable to AGL |  |  |  | $ | 376 |  |  | $ | 94 |  |  | $ | 739 |  |  | $ | 124 |
Adjusted operating income (loss) |  |  |  | 338 |  |  | 14 |  |  | 648 |  |  | 267 |
Average shareholders’ equity attributable to AGL |  |  |  | $ | 5,483 |  |  | $ | 4,997 |  |  | $ | 5,389 |  |  | $ | 5,678 |
Average adjusted operating shareholders’ equity |  |  |  | 5,863 |  |  | 5,559 |  |  | 5,767 |  |  | 5,767 |
Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders’ equity |  |  |  | 5 |  |  | 22 |  |  | 11 |  |  | 25 |
GAAP ROE (1) |  |  |  | 27.5 | % |  | 7.5 | % |  | 13.7 | % |  | 2.2 | %
Adjusted operating ROE (1) |  |  |  | 23.1 | % |  | 1.0 | % |  | 11.2 | % |  | 4.6 | %

1) Quarterly ROE calculations represent annualized returns.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
6

Assured Guaranty Ltd.
Selected Financial Highlights
GAAP to Non-GAAP Reconciliations (3 of 3)
(dollars in millions)

|  | As of
|  | December 31, |  | September 30, |  | December 31, |  | September 30, |  | December 31,
|  | 2023 |  | 2023 |  | 2022 |  | 2022 |  | 2021
Reconciliation of shareholders’ equity attributable to AGL to adjusted book value: |  |  |  |  |  |  |  |  |  |
Shareholders’ equity attributable to AGL |  | $ | 5,713 |  |  | $ | 5,252 |  |  | $ | 5,064 |  |  | $ | 4,929 |  |  | $ | 6,292 |
Less pre-tax reconciling items: |  |  |  |  |  |  |  |  |  |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | 34 |  |  | 38 |  |  | (71) |  |  | (101) |  |  | (54) |
Fair value gains (losses) on CCS |  | 13 |  |  | 12 |  |  | 47 |  |  | 35 |  |  | 23 |
Unrealized gain (loss) on investment portfolio |  | (361) |  |  | (609) |  |  | (523) |  |  | (672) |  |  | 404 |
Less taxes |  | 37 |  |  | 76 |  |  | 68 |  |  | 92 |  |  | (72) |
Adjusted operating shareholders’ equity |  | 5,990 |  |  | 5,735 |  |  | 5,543 |  |  | 5,575 |  |  | 5,991 |
Pre-tax reconciling items: |  |  |  |  |  |  |  |  |  |
Less: Deferred acquisition costs |  | 161 |  |  | 158 |  |  | 147 |  |  | 142 |  |  | 131 |
Plus: Net present value of estimated net future revenue |  | 199 |  |  | 190 |  |  | 157 |  |  | 159 |  |  | 160 |
Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed |  | 3,436 |  |  | 3,404 |  |  | 3,428 |  |  | 3,373 |  |  | 3,402 |
Plus taxes |  | (699) |  |  | (612) |  |  | (602) |  |  | (594) |  |  | (599) |
Adjusted book value |  | $ | 8,765 |  |  | $ | 8,559 |  |  | $ | 8,379 |  |  | $ | 8,371 |  |  | $ | 8,823 |
Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |  |  |  |  |
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $(1), $(1), $(4), $(6) and $(5)) |  | $ | 5 |  |  | $ | 4 |  |  | $ | 17 |  |  | $ | 27 |  |  | $ | 32 |
Adjusted book value (net of tax (provision) benefit of $0, $1, $(3), $(4) and $(3)) |  | $ | — |  |  | $ | (2) |  |  | $ | 11 |  |  | $ | 16 |  |  | $ | 23 |

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
7

Assured Guaranty Ltd.
Income Components (1 of 4)
(in millions)
Components of Income for the Three Months Ended December 31, 2023

| Segments |  | Corporate and Other |  |  |  |
| Insurance |  | Asset Management |  | Corporate |  | Other (1) |  | Reconciling Items |  | Consolidated
Revenues |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 83 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 83 |
Net investment income | 97 |  |  | — |  |  | 2 |  |  | (4) |  |  | — |  |  | 95 |
Asset management fees | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net realized investment gains (losses) | — |  |  | — |  |  | — |  |  | — |  |  | 6 |  |  | 6 |
Fair value gains (losses) on credit derivatives (2) | 3 |  |  | — |  |  | — |  |  | — |  |  | (4) |  |  | (1) |
Fair value gains (losses) on CCS | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value gains (losses) on FG VIEs | — |  |  | — |  |  | — |  |  | 10 |  |  | — |  |  | 10 |
Fair value gains (losses) on CIVs | — |  |  | — |  |  | — |  |  | 28 |  |  | — |  |  | 28 |
Foreign exchange gains (losses) on remeasurement | 2 |  |  | — |  |  | — |  |  | — |  |  | 42 |  |  | 44 |
Fair value gains (losses) on trading securities | 32 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 32 |
Gain on sale of asset management subsidiaries | — |  |  | — |  |  | 7 |  |  | — |  |  | — |  |  | 7 |
Other income (loss) | 16 |  |  | 5 |  |  | 3 |  |  | (1) |  |  | — |  |  | 23 |
Total revenues | 233 |  |  | 5 |  |  | 12 |  |  | 33 |  |  | 44 |  |  | 327 |
Expenses |  |  |  |  |  |  |  |  |  |  |
Loss and LAE (benefit) (3) | 7 |  |  | — |  |  | — |  |  | (3) |  |  | (1) |  |  | 3 |
Interest expense | — |  |  | — |  |  | 26 |  |  | (3) |  |  | — |  |  | 23 |
Amortization of DAC | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |
Employee compensation and benefit expenses | 42 |  |  | — |  |  | 10 |  |  | — |  |  | — |  |  | 52 |
Other operating expenses | 29 |  |  | 3 |  |  | 15 |  |  | — |  |  | — |  |  | 47 |
Total expenses | 81 |  |  | 3 |  |  | 51 |  |  | (6) |  |  | (1) |  |  | 128 |
Equity in earnings (losses) of investees | 22 |  |  | 5 |  |  | — |  |  | (24) |  |  | — |  |  | 3 |
Less: Provision (benefit) for income taxes | (165) |  |  | 1 |  |  | (23) |  |  | 3 |  |  | 7 |  |  | (177) |
Less: Noncontrolling interests | — |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 3 |
Total | $ | 339 |  |  | $ | 6 |  |  | $ | (16) |  |  | $ | 9 |  |  | $ | 38 |  |  | $ | 376 |

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
8

Assured Guaranty Ltd.
Income Components (2 of 4)
(in millions)
Components of Income for the Three Months Ended December 31, 2022

| Segments |  | Corporate and Other |  |  |  |
| Insurance |  | Asset Management |  | Corporate |  | Other (1) |  | Reconciling Items |  | Consolidated
Revenues |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 109 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 109 |
Net investment income | 80 |  |  | — |  |  | 1 |  |  | (3) |  |  | — |  |  | 78 |
Asset management fees | — |  |  | 20 |  |  | — |  |  | 2 |  |  | — |  |  | 22 |
Net realized investment gains (losses) | — |  |  | — |  |  | — |  |  | — |  |  | (17) |  |  | (17) |
Fair value gains (losses) on credit derivatives (2) | 2 |  |  | — |  |  | — |  |  | — |  |  | 29 |  |  | 31 |
Fair value gains (losses) on CCS | — |  |  | — |  |  | — |  |  | — |  |  | 12 |  |  | 12 |
Fair value gains (losses) on FG VIEs | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | (5) |
Fair value gains (losses) on CIVs | — |  |  | — |  |  | — |  |  | (8) |  |  | — |  |  | (8) |
Foreign exchange gains (losses) on remeasurement | 2 |  |  | — |  |  | — |  |  | (3) |  |  | 70 |  |  | 69 |
Fair value gains (losses) on trading securities | (4) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (4) |
Other income (loss) | 4 |  |  | 4 |  |  | — |  |  | (3) |  |  | — |  |  | 5 |
Total revenues | 193 |  |  | 24 |  |  | 1 |  |  | (20) |  |  | 94 |  |  | 292 |
Expenses |  |  |  |  |  |  |  |  |  |  |
Loss and LAE (benefit) (3) | 44 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 45 |
Interest expense | — |  |  | 1 |  |  | 23 |  |  | (3) |  |  | — |  |  | 21 |
Amortization of DAC | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |
Employee compensation and benefit expenses | 41 |  |  | 18 |  |  | 10 |  |  | — |  |  | — |  |  | 69 |
Other operating expenses | 24 |  |  | 9 |  |  | 6 |  |  | 8 |  |  | — |  |  | 47 |
Total expenses | 112 |  |  | 28 |  |  | 39 |  |  | 5 |  |  | 1 |  |  | 185 |
Equity in earnings (losses) of investees | (5) |  |  | — |  |  | — |  |  | (3) |  |  | — |  |  | (8) |
Less: Provision (benefit) for income taxes | 10 |  |  | (1) |  |  | (2) |  |  | (3) |  |  | 13 |  |  | 17 |
Less: Noncontrolling interests | — |  |  | — |  |  | — |  |  | (12) |  |  | — |  |  | (12) |
Total | $ | 66 |  |  | $ | (3) |  |  | $ | (36) |  |  | $ | (13) |  |  | $ | 80 |  |  | $ | 94 |

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
9

Assured Guaranty Ltd.
Income Components (3 of 4)
(in millions)
Components of Income for the Year Ended December 31, 2023

| Segments |  | Corporate and Other |  |  |  |
| Insurance |  | Asset Management |  | Corporate |  | Other (1) |  | Reconciling Items |  | Consolidated
Revenues |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 347 |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | 344 |
Net investment income | 370 |  |  | — |  |  | 8 |  |  | (13) |  |  | — |  |  | 365 |
Asset management fees | — |  |  | 64 |  |  | — |  |  | (11) |  |  | — |  |  | 53 |
Net realized investment gains (losses) | — |  |  | — |  |  | — |  |  | — |  |  | (14) |  |  | (14) |
Fair value gains (losses) on credit derivatives (2) | 10 |  |  | — |  |  | — |  |  | — |  |  | 104 |  |  | 114 |
Fair value gains (losses) on CCS | — |  |  | — |  |  | — |  |  | — |  |  | (35) |  |  | (35) |
Fair value gains (losses) on FG VIEs | — |  |  | — |  |  | — |  |  | 8 |  |  | — |  |  | 8 |
Fair value gains (losses) on CIVs | — |  |  | — |  |  | — |  |  | 88 |  |  | — |  |  | 88 |
Foreign exchange gains (losses) on remeasurement | 3 |  |  | — |  |  | — |  |  | (1) |  |  | 51 |  |  | 53 |
Fair value gains (losses) on trading securities | 74 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 74 |
Gain on sale of asset management subsidiaries | — |  |  | — |  |  | 262 |  |  | — |  |  | — |  |  | 262 |
Other income (loss) | 51 |  |  | 12 |  |  | 5 |  |  | (7) |  |  | — |  |  | 61 |
Total revenues | 855 |  |  | 76 |  |  | 275 |  |  | 61 |  |  | 106 |  |  | 1,373 |
Expenses |  |  |  |  |  |  |  |  |  |  |
Loss and LAE (benefit) (3) | 161 |  |  | — |  |  | — |  |  | 3 |  |  | (2) |  |  | 162 |
Interest expense | — |  |  | 1 |  |  | 99 |  |  | (10) |  |  | — |  |  | 90 |
Amortization of DAC | 13 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 13 |
Employee compensation and benefit expenses | 154 |  |  | 59 |  |  | 38 |  |  | — |  |  | — |  |  | 251 |
Other operating expenses | 107 |  |  | 18 |  |  | 79 |  |  | 13 |  |  | — |  |  | 217 |
Total expenses | 435 |  |  | 78 |  |  | 216 |  |  | 6 |  |  | (2) |  |  | 733 |
Equity in earnings (losses) of investees | 82 |  |  | 5 |  |  | — |  |  | (59) |  |  | — |  |  | 28 |
Less: Provision (benefit) for income taxes | (119) |  |  | — |  |  | 14 |  |  | (5) |  |  | 17 |  |  | (93) |
Less: Noncontrolling interests | — |  |  | — |  |  | — |  |  | 22 |  |  | — |  |  | 22 |
Total | $ | 621 |  |  | $ | 3 |  |  | $ | 45 |  |  | $ | (21) |  |  | $ | 91 |  |  | $ | 739 |

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
10

Assured Guaranty Ltd.
Income Components (4 of 4)
(in millions)
Components of Income for the Year Ended December 31, 2022

| Segments |  | Corporate and Other |  |  |  |
| Insurance |  | Asset Management |  | Corporate |  | Other (1) |  | Reconciling Items |  | Consolidated
Revenues |  |  |  |  |  |  |  |  |  |  |
Net earned premiums | $ | 497 |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | — |  |  | $ | 494 |
Net investment income | 278 |  |  | — |  |  | 4 |  |  | (13) |  |  | — |  |  | 269 |
Asset management fees | — |  |  | 106 |  |  | — |  |  | (13) |  |  | — |  |  | 93 |
Net realized investment gains (losses) | — |  |  | — |  |  | — |  |  | — |  |  | (56) |  |  | (56) |
Fair value gains (losses) on credit derivatives (2) | 11 |  |  | — |  |  | — |  |  | — |  |  | (22) |  |  | (11) |
Fair value gains (losses) on CCS | — |  |  | — |  |  | — |  |  | — |  |  | 24 |  |  | 24 |
Fair value gains (losses) on FG VIEs | — |  |  | — |  |  | — |  |  | 22 |  |  | — |  |  | 22 |
Fair value gains (losses) on CIVs | — |  |  | — |  |  | — |  |  | 17 |  |  | — |  |  | 17 |
Foreign exchange gains (losses) on remeasurement | (5) |  |  | (1) |  |  | — |  |  | 4 |  |  | (110) |  |  | (112) |
Fair value gains (losses) on trading securities | (34) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (34) |
Commutation gains (losses) | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2 |
Other income (loss) | 8 |  |  | 7 |  |  | — |  |  | — |  |  | — |  |  | 15 |
Total revenues | 757 |  |  | 112 |  |  | 4 |  |  | 14 |  |  | (164) |  |  | 723 |
Expenses |  |  |  |  |  |  |  |  |  |  |
Loss and LAE (benefit) (3) | 12 |  |  | — |  |  | — |  |  | 8 |  |  | (4) |  |  | 16 |
Interest expense | 1 |  |  | 1 |  |  | 89 |  |  | (10) |  |  | — |  |  | 81 |
Amortization of DAC | 14 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 14 |
Employee compensation and benefit expenses | 148 |  |  | 80 |  |  | 30 |  |  | — |  |  | — |  |  | 258 |
Other operating expenses | 84 |  |  | 38 |  |  | 24 |  |  | 21 |  |  | — |  |  | 167 |
Total expenses | 259 |  |  | 119 |  |  | 143 |  |  | 19 |  |  | (4) |  |  | 536 |
Equity in earnings (losses) of investees | (51) |  |  | — |  |  | — |  |  | 12 |  |  | — |  |  | (39) |
Less: Provision (benefit) for income taxes | 34 |  |  | (1) |  |  | (5) |  |  | — |  |  | (17) |  |  | 11 |
Less: Noncontrolling interests | — |  |  | — |  |  | — |  |  | 13 |  |  | — |  |  | 13 |
Total | $ | 413 |  |  | $ | (6) |  |  | $ | (134) |  |  | $ | (6) |  |  | $ | (143) |  |  | $ | 124 |

1) Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.
2) Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.
3) Insurance segment balances for this line item includes credit derivative impairment (recoveries).
11

Assured Guaranty Ltd.
Fixed-Maturity Securities, Short-Term Investments and Cash
As of December 31, 2023
(dollars in millions)

|  | Amortized Cost |  | Allowance for Credit Losses |  | Pre-Tax Book Yield |  | After-Tax Book Yield |  | Fair Value |  | Annualized Investment Income (1)
Fixed maturity securities, available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions (3)(6) |  | $ | 2,733 |  |  | $ | (13) |  |  | 3.49 | % |  | 3.19 | % |  | $ | 2,661 |  |  | $ | 95 |
U.S. government and agencies |  | 65 |  |  | — |  |  | 2.39 |  |  | 2.12 |  |  | 60 |  |  | 2 |
Corporate securities |  | 2,327 |  |  | (6) |  |  | 3.01 |  |  | 2.67 |  |  | 2,141 |  |  | 70 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage-backed securities (RMBS) (2)(3) |  | 428 |  |  | (21) |  |  | 5.13 |  |  | 4.27 |  |  | 342 |  |  | 22 |
Commercial mortgage-backed securities |  | 157 |  |  | — |  |  | 3.20 |  |  | 2.76 |  |  | 151 |  |  | 5 |
Asset-backed securities (ABS) |  |  |  |  |  |  |  |  |  |  |  |
Collateralized loan obligation (CLOs) |  | 456 |  |  | — |  |  | 7.61 |  |  | 6.02 |  |  | 450 |  |  | 35 |
Other ABS (3) |  | 465 |  |  | (37) |  |  | 6.17 |  |  | 4.95 |  |  | 402 |  |  | 29 |
Non-U.S. government securities |  | 115 |  |  | — |  |  | 1.11 |  |  | 1.09 |  |  | 100 |  |  | 1 |
Total fixed maturity securities, available-for-sale |  | 6,746 |  |  | (77) |  |  | 3.84 |  |  | 3.33 |  |  | 6,307 |  |  | 259 |
Short-term investments |  | 1,661 |  |  | — |  |  | 5.21 |  |  | 4.17 |  |  | 1,661 |  |  | 86 |
Cash (4) |  | 97 |  |  | — |  |  | — |  |  | — |  |  | 97 |  |  | — |
Total |  | $ | 8,504 |  |  | $ | (77) |  |  | 4.11 | % |  | 3.50 | % |  | $ | 8,065 |  |  | $ | 345 |
Fixed maturity securities, trading (8) |  |  |  |  |  |  |  |  |  | $ | 318 |  |  |
Ratings (5): |  | Fair Value |  | % of Portfolio |  |  |  |  |  |  |  |
U.S. government and agencies |  | $ | 60 |  |  | 1.0 | % |  |  |  |  |  |  |  |
AAA/Aaa |  | 840 |  |  | 13.3 | % |  |  |  |  |  |  |  |
AA/Aa |  | 2,346 |  |  | 37.2 | % |  |  |  |  |  |  |  |
A/A |  | 1,742 |  |  | 27.6 | % |  |  |  |  |  |  |  |
BBB |  | 740 |  |  | 11.7 | % |  |  |  |  |  |  |  |
BIG |  | 491 |  |  | 7.8 | % |  |  |  |  |  |  |  |
Not rated (6) |  | 88 |  |  | 1.4 | % |  |  |  |  |  |  |  |
Total fixed maturity securities, available-for-sale |  | $ | 6,307 |  |  | 100.0 | % |  |  |  |  |  |  |  |
Duration of available-for-sale fixed maturity securities and short-term investments (in years): |  |  |  | 3.1 |  |  |  |  |  |  |  |

1) Represents annualized investment income based on amortized cost and pre-tax book yields.
2) Includes fair value of $135 million in subprime RMBS, of which 91% were rated BIG.
3) Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.
4) Cash is not included in the yield calculation.
5) Ratings are the lower of the Moody’s Investors Service, Inc. (Moody’s) or Standard & Poor's Financial Services LLC (S&P) classifications except for purchased securities that the Company has insured, and for which it had expected losses to be paid (Loss Mitigation Securities) and certain other securities, which use internal ratings classifications. Loss mitigation and other securities total $848 million in par with carrying value of $554 million and are primarily included in the BIG category.
6) Includes $14 million of new general obligation bonds and new bonds backed by toll revenue received in connection with the 2022 Puerto Rico Resolutions (see page 33).
7) Represents contingent value instruments (CVI) received in connection with the 2022 Puerto Rico Resolutions (see page 33). These securities are not rated.
12

Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (1 of 2)
(dollars in millions)
Investment Portfolio, Cash and CIVs as of December 31, 2023

|  | Insurance Related Subsidiaries (1) |  | Holding Companies (2) |  | Other (3) |  | AGL Consolidated
Fixed-maturity securities, available-for-sale |  | $ | 6,286 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 6,307 |
Fixed-maturity securities, trading |  | 318 |  |  | — |  |  | — |  |  | 318 |
Total fixed-maturity securities |  | 6,604 |  |  | 21 |  |  | — |  |  | 6,625 |
Short-term investments |  | 1,328 |  |  | 332 |  |  | 1 |  |  | 1,661 |
Cash |  | 52 |  |  | 7 |  |  | 38 |  |  | 97 |
Total short-term investments and cash |  | 1,380 |  |  | 339 |  |  | 39 |  |  | 1,758 |
Other invested assets |  |  |  |  |  |  |  |
Equity method investments: |  |  |  |  |  |  |  |
Sound Point |  | — |  |  | 429 |  |  | — |  |  | 429 |
Funds: |  |  |  |  |  |  |  |
CLOs |  | 302 |  |  | — |  |  | (223) |  |  | 79 |
Asset-based |  | 171 |  |  | — |  |  | (82) |  |  | 89 |
Healthcare |  | 102 |  |  | — |  |  | — |  |  | 102 |
Other |  | 117 |  |  | — |  |  | — |  |  | 117 |
Total funds |  | 692 |  |  | — |  |  | (305) |  |  | 387 |
Other |  | — |  |  | 7 |  |  | — |  |  | 7 |
Total equity method investments |  | 692 |  |  | 436 |  |  | (305) |  |  | 823 |
Other |  | 3 |  |  | 3 |  |  | — |  |  | 6 |
Other invested assets |  | 695 |  |  | 439 |  |  | (305) |  |  | 829 |
Total investment portfolio and cash (4) |  | $ | 8,679 |  |  | $ | 799 |  |  | $ | (266) |  |  | $ | 9,212 |
CIVs (5) |  |  |  |  |  |  |  |
Assets of CIVs |  | $ | — |  |  | $ | — |  |  | $ | 366 |  |  | $ | 366 |
Liabilities of CIVs |  | — |  |  | — |  |  | (4) |  |  | (4) |
Nonredeemable noncontrolling interests |  | — |  |  | — |  |  | (52) |  |  | (52) |
Total CIVs |  | $ | — |  |  | $ | — |  |  | $ | 310 |  |  | $ | 310 |

1) Includes the Company’s U.S., Bermuda, U.K. and French subsidiaries and AG Asset Strategies LLC (separate company, excluding the effect of consolidating CIVs).
2) Includes the Company’s holding companies: AGL, Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH).
3) Includes the Company’s non insurance subsidiaries, non-U.S. holding companies and CIVs and related intercompany eliminations.
4) The alternative investments had an inception-to-date annualized internal rate of return (IRR) of 12.8%, the year to date return of 13.8% and the quarter to date return of 3.4%. For funds, the returns represent IRR based on mark-to-market gains (losses). The inception-to-date IRRs are annualized; the quarterly and year-to-date returns are not annualized.
5) In connection with the Sound Point and AHP transactions in July 2023, the Company re-evaluated the consolidation conclusions for all of its CIVs and determined that the Company was no longer the primary beneficiary (in accordance with GAAP) for all but three funds (Sound Point CLO Warehouse Fund (US) L.P., Sound Point Asset Backed Income Fund (US) L.P. and Sound Point GLS Fund L.P). Therefore, all but these three funds were deconsolidated in July 2023.
13

Assured Guaranty Ltd.
Investment Portfolio, Cash and CIVs
GAAP (2 of 2)
(dollars in millions)
Investment Portfolio, Cash and CIVs as of December 31, 2022

|  | Insurance Related Subsidiaries (1) |  | Holding Companies (2) |  | Other |  | AGL Consolidated
Fixed-maturity securities, available-for-sale |  | $ | 7,095 |  |  | $ | 24 |  |  | $ | — |  |  | $ | 7,119 |
Fixed-maturity securities, trading |  | 303 |  |  | — |  |  | — |  |  | 303 |
Total fixed-maturity securities |  | 7,398 |  |  | 24 |  |  | — |  |  | 7,422 |
Short-term investments |  | 668 |  |  | 132 |  |  | 10 |  |  | 810 |
Cash |  | 44 |  |  | 7 |  |  | 56 |  |  | 107 |
Total short-term investments and cash |  | 712 |  |  | 139 |  |  | 66 |  |  | 917 |
Other invested assets |  |  |  |  |  |  |  |
AssuredIM Funds (3) |  |  |  |  |  |  |  |
CLOs |  | 272 |  |  | — |  |  | (272) |  |  | — |
Asset-based |  | 101 |  |  | — |  |  | (101) |  |  | — |
Healthcare |  | 91 |  |  | — |  |  | (91) |  |  | — |
Municipal bonds |  | 105 |  |  | — |  |  | (105) |  |  | — |
Equity method investments AssuredIM Funds |  | 569 |  |  | — |  |  | (569) |  |  | — |
Other |  | 122 |  |  | 9 |  |  | 2 |  |  | 133 |
Other invested assets |  | 691 |  |  | 9 |  |  | (567) |  |  | 133 |
Total investment portfolio and cash |  | $ | 8,801 |  |  | $ | 172 |  |  | $ | (501) |  |  | $ | 8,472 |
CIVs |  |  |  |  |  |  |  |
Assets of CIVs |  | $ | — |  |  | $ | — |  |  | $ | 5,493 |  |  | $ | 5,493 |
Liabilities of CIVs |  | — |  |  | — |  |  | (4,625) |  |  | (4,625) |
Nonredeemable noncontrolling interests |  | — |  |  | — |  |  | (228) |  |  | (228) |
Total CIVs |  | $ | — |  |  | $ | — |  |  | $ | 640 |  |  | $ | 640 |

1) Includes the Company's U.S., Bermuda, U.K. and French insurance subsidiaries.
2) Includes the Company's' holding companies: AGL, AGUS and AGMH
3) Funds managed by Assured Investment Management LLC (AssuredIM LLC) and its investment management affiliates (together with AssuredIM LLC, AssuredIM) (AssuredIM Funds), prior to July 2023.
14

Assured Guaranty Ltd.
Income from Investment Portfolio and CIVs
Segment (1 of 2)
(dollars in millions)
Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs on a Segment basis

| Three Months Ended December 31, 2023
| Insurance |  | Asset Management |  | Corporate |  | Other |  | Total
Net investment income | $ | 97 |  |  | $ | — |  |  | $ | 2 |  |  | $ | (4) |  |  | $ | 95 |
Fair value gains (losses) on trading securities | $ | 32 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 32 |
Equity in earnings (losses) of investees |  |  |  |  |  |  |  |  |
Sound Point (1) | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
Funds: |  |  |  |  |  |  |  |  |
CLOs | 27 |  |  | — |  |  | — |  |  | (23) |  |  | 4 |
Asset-based | 2 |  |  | — |  |  | — |  |  | (1) |  |  | 1 |
Healthcare | (2) |  |  | — |  |  | — |  |  | — |  |  | (2) |
Other | (5) |  |  | — |  |  | — |  |  | — |  |  | (5) |
Total funds (2) | 22 |  |  | — |  |  | — |  |  | (24) |  |  | (2) |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Equity in earnings (losses) of investees | $ | 22 |  |  | $ | 5 |  |  | $ | — |  |  | $ | (24) |  |  | $ | 3 |
CIVs |  |  |  |  |  |  |  |  |
Fair value gains (losses) on CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 28 |  |  | $ | 28 |
Noncontrolling interests | — |  |  | — |  |  | — |  |  | (3) |  |  | (3) |
Total CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 25 |  |  | $ | 25 |

| Three Months Ended December 31, 2022
| Insurance |  | Asset Management |  | Corporate |  | Other |  | Total
Net investment income | $ | 80 |  |  | $ | — |  |  | $ | 1 |  |  | $ | (3) |  |  | $ | 78 |
Fair value gains (losses) on trading securities | $ | (4) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (4) |
Equity in earnings (losses) of investees |  |  |  |  |  |  |  |  |
AssuredIM Funds | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | — |
Other | (8) |  |  | — |  |  | — |  |  | — |  |  | (8) |
Equity in earnings (losses) of investees | $ | (5) |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | (8) |
CIVs |  |  |  |  |  |  |  |  |
Fair value gains (losses) on CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (8) |  |  | $ | (8) |
Noncontrolling interests | — |  |  | — |  |  | — |  |  | 12 |  |  | 12 |
Total CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | 4 |

1) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.
2) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.
15

Assured Guaranty Ltd.
Income from Investment Portfolio and CIVs
Segment (2 of 2)
(dollars in millions)
Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs on a Segment basis

| Year Ended December 31, 2023
| Insurance |  | Asset Management |  | Corporate |  | Other |  | Total
Net investment income | $ | 370 |  |  | $ | — |  |  | $ | 8 |  |  | $ | (13) |  |  | $ | 365 |
Fair value gains (losses) on trading securities | $ | 74 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 74 |
Equity in earnings (losses) of investees |  |  |  |  |  |  |  |  |
Sound Point (1) | $ | — |  |  | $ | 5 |  |  | $ | — |  |  | $ | — |  |  | $ | 5 |
Funds: |  |  |  |  |  |  |  |  |
CLOs | 50 |  |  | — |  |  | — |  |  | (46) |  |  | 4 |
Asset-based | 5 |  |  | — |  |  | — |  |  | (4) |  |  | 1 |
Healthcare | 19 |  |  | — |  |  | — |  |  | (9) |  |  | 10 |
Other | 8 |  |  | — |  |  | — |  |  | — |  |  | 8 |
Total funds (2) | 82 |  |  | — |  |  | — |  |  | (59) |  |  | 23 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |
Equity in earnings (losses) of investees | $ | 82 |  |  | $ | 5 |  |  | $ | — |  |  | $ | (59) |  |  | $ | 28 |
CIVs |  |  |  |  |  |  |  |  |
Fair value gains (losses) on CIVs (3) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 88 |  |  | $ | 88 |
Noncontrolling interests | — |  |  | — |  |  | — |  |  | (22) |  |  | (22) |
Total CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 66 |  |  | $ | 66 |

| Year Ended December 31, 2022
| Insurance |  | Asset Management |  | Corporate |  | Other |  | Total
Net investment income | $ | 278 |  |  | $ | — |  |  | $ | 4 |  |  | $ | (13) |  |  | $ | 269 |
Fair value gains (losses) on trading securities | $ | (34) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (34) |
Equity in earnings (losses) of investees |  |  |  |  |  |  |  |  |
AssuredIM Funds | $ | (10) |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | 2 |
Other | (41) |  |  | — |  |  | — |  |  | — |  |  | (41) |
Equity in earnings (losses) of investees | $ | (51) |  |  | $ | — |  |  | $ | — |  |  | $ | 12 |  |  | $ | (39) |
CIVs |  |  |  |  |  |  |  |  |
Fair value gains (losses) on CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 17 |  |  | $ | 17 |
Noncontrolling interests | — |  |  | — |  |  | — |  |  | (13) |  |  | (13) |
Total CIVs | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | 4 |

1) The Company’s share of Sound Point earnings is reported for the first time in the fourth quarter of 2023.
2) Relates to funds managed by Sound Point and AHP, and certain other managers, as well as, prior to July 1, 2023, AssuredIM. Investments in funds are reported on a one-quarter lag.
3) Includes loss on deconsolidation of $16 million.
16

Insurance Segment
17

Assured Guaranty Ltd.
Insurance Segment Results
(dollars in millions)

| Three Months Ended |  | Year Ended
| December 31, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Segment revenues |  |  |  |  |  |  |
Net earned premiums and credit derivative revenues | $ | 86 |  |  | $ | 111 |  |  | $ | 357 |  |  | $ | 508 |
Net investment income | 97 |  |  | 80 |  |  | 370 |  |  | 278 |
Fair value gains (losses) on trading securities | 32 |  |  | (4) |  |  | 74 |  |  | (34) |
Foreign exchange gains (losses) on remeasurement and other income (loss) | 18 |  |  | 6 |  |  | 54 |  |  | 5 |
Total segment revenues | 233 |  |  | 193 |  |  | 855 |  |  | 757 |
Segment expenses |  |  |  |  |  |  |
Loss expense (benefit) | 7 |  |  | 44 |  |  | 161 |  |  | 12 |
Interest expense | — |  |  | — |  |  | — |  |  | 1 |
Amortization of DAC | 3 |  |  | 3 |  |  | 13 |  |  | 14 |
Employee compensation and benefit expenses | 42 |  |  | 41 |  |  | 154 |  |  | 148 |
Other operating expenses | 29 |  |  | 24 |  |  | 107 |  |  | 84 |
Total segment expenses | 81 |  |  | 112 |  |  | 435 |  |  | 259 |
Equity in earnings (losses) of investees | 22 |  |  | (5) |  |  | 82 |  |  | (51) |
Segment adjusted operating income (loss) before income taxes | 174 |  |  | 76 |  |  | 502 |  |  | 447 |
Less: Provision (benefit) for income taxes | (165) |  |  | 10 |  |  | (119) |  |  | 34 |
Segment adjusted operating income (loss) | $ | 339 |  |  | $ | 66 |  |  | $ | 621 |  |  | $ | 413 |

18

Assured Guaranty Ltd.
Claims-Paying Resources
(dollars in millions)

|  | As of December 31, 2023
|  | AGM |  | AGC |  | AG Re (6) |  | Eliminations(2) |  | Consolidated
Claims-paying resources |  |  |  |  |  |  |  |  |  |
Policyholders’ surplus |  | $ | 2,646 |  |  | $ | 1,651 |  |  | $ | 734 |  |  | $ | (224) |  |  | $ | 4,807 |
Contingency reserve |  | 876 |  |  | 420 |  |  | — |  |  | — |  |  | 1,296 |
Qualified statutory capital |  | 3,522 |  |  | 2,071 |  |  | 734 |  |  | (224) |  |  | 6,103 |
Unearned premium reserve and net deferred ceding commission income(1) |  | 2,077 |  |  | 350 |  |  | 592 |  |  | (64) |  |  | 2,955 |
Loss and LAE reserves (1)(7) |  | 7 |  |  | — |  |  | 138 |  |  | — |  |  | 145 |
Total policyholders' surplus and reserves |  | 5,606 |  |  | 2,421 |  |  | 1,464 |  |  | (288) |  |  | 9,203 |
Present value of installment premium |  | 545 |  |  | 257 |  |  | 260 |  |  | — |  |  | 1,062 |
CCS |  | 200 |  |  | 200 |  |  | — |  |  | — |  |  | 400 |
Total claims-paying resources |  | $ | 6,351 |  |  | $ | 2,878 |  |  | $ | 1,724 |  |  | $ | (288) |  |  | $ | 10,665 |
Statutory net exposure (1)(3) |  | $ | 161,630 |  |  | $ | 29,115 |  |  | $ | 61,296 |  |  | $ | (908) |  |  | $ | 251,133 |
Net debt service outstanding (1)(3) |  | $ | 260,771 |  |  | $ | 47,396 |  |  | $ | 93,351 |  |  | $ | (1,770) |  |  | $ | 399,748 |
Ratios: |  |  |  |  |  |  |  |  |  |
Net exposure to qualified statutory capital |  | 46:1 |  | 14:1 |  | 84:1 |  |  |  | 41:1
Capital ratio (4) |  | 74:1 |  | 23:1 |  | 127:1 |  |  |  | 66:1
Financial resources ratio (5) |  | 41:1 |  | 16:1 |  | 54:1 |  |  |  | 37:1
Statutory net exposure to claims-paying resources |  | 25:1 |  | 10:1 |  | 36:1 |  |  |  | 24:1

1) The numbers shown for Assured Guaranty Municipal Corp. (AGM) have been adjusted to include 100% share of its United Kingdom (U.K.) and French insurance subsidiaries.
2) Eliminations are primarily for (i) intercompany surplus notes between AGM and Assured Guaranty Corp. (AGC), and (ii) eliminations of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.
3) Net exposure and net debt service outstanding are presented on a statutory basis. Includes $3,300 million of specialty business.
4) The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.
5) The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.
6) Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of AG Re on a U.S. statutory basis, except for contingency reserves.
7) Loss and LAE reserves exclude adjustments to claims-paying resources for AGC because the balance was in a net recoverable position of $108 million.
Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.
19

Assured Guaranty Ltd.
New Business Production
(dollars in millions)
Reconciliation of GWP to PVP for the Three Months Ended December 31, 2023 and December 31, 2022

|  | Three Months Ended |  | Three Months Ended
|  | December 31, 2023 |  | December 31, 2022
|  | Public Finance |  | Structured Finance |  |  |  | Public Finance |  | Structured Finance |  |
|  | U.S. |  | Non - U.S. |  | U.S. |  | Non - U.S. |  | Total |  | U.S. |  | Non - U.S. |  | U.S. |  | Non - U.S. |  | Total
Total GWP |  | $ | 82 |  |  | $ | 42 |  |  | $ | 11 |  |  | $ | 1 |  |  | $ | 136 |  |  | $ | 88 |  |  | $ | 9 |  |  | $ | 33 |  |  | $ | 1 |  |  | $ | 131 |
Less: Installment GWP and other GAAP adjustments (1) |  | 54 |  |  | 37 |  |  | 11 |  |  | 1 |  |  | 103 |  |  | 40 |  |  | 9 |  |  | 29 |  |  | 1 |  |  | 79 |
Upfront GWP |  | 28 |  |  | 5 |  |  | — |  |  | — |  |  | 33 |  |  | 48 |  |  | — |  |  | 4 |  |  | — |  |  | 52 |
Plus: Installment premiums and other(2) |  | 55 |  |  | 40 |  |  | 26 |  |  | 1 |  |  | 122 |  |  | 46 |  |  | 1 |  |  | 36 |  |  | — |  |  | 83 |
Total PVP |  | $ | 83 |  |  | $ | 45 |  |  | $ | 26 |  |  | $ | 1 |  |  | $ | 155 |  |  | $ | 94 |  |  | $ | 1 |  |  | $ | 40 |  |  | $ | — |  |  | $ | 135 |
Gross par written |  | $ | 6,712 |  |  | $ | 874 |  |  | $ | 785 |  |  | $ | 304 |  |  | $ | 8,675 |  |  | $ | 5,819 |  |  | $ | — |  |  | $ | 971 |  |  | $ | 245 |  |  | $ | 7,035 |

Reconciliation of GWP to PVP for the Year Ended December 31, 2023 and December 31, 2022

|  | Year Ended |  | Year Ended
|  | December 31, 2023 |  | December 31, 2022
|  | Public Finance |  | Structured Finance |  |  |  | Public Finance |  | Structured Finance |  |
|  | U.S. |  | Non - U.S. |  | U.S. |  | Non - U.S. |  | Total |  | U.S. |  | Non - U.S. |  | U.S. |  | Non - U.S. |  | Total
Total GWP |  | $ | 211 |  |  | $ | 82 |  |  | $ | 59 |  |  | $ | 5 |  |  | $ | 357 |  |  | $ | 248 |  |  | $ | 75 |  |  | $ | 37 |  |  | $ | — |  |  | $ | 360 |
Less: Installment GWP and other GAAP adjustments (1) |  | 109 |  |  | 74 |  |  | 59 |  |  | 5 |  |  | 247 |  |  | 40 |  |  | 75 |  |  | 30 |  |  | — |  |  | 145 |
Upfront GWP |  | 102 |  |  | 8 |  |  | — |  |  | — |  |  | 110 |  |  | 208 |  |  | — |  |  | 7 |  |  | — |  |  | 215 |
Plus: Installment premiums and other(2) |  | 110 |  |  | 75 |  |  | 68 |  |  | 41 |  |  | 294 |  |  | 49 |  |  | 68 |  |  | 36 |  |  | 7 |  |  | 160 |
Total PVP |  | $ | 212 |  |  | $ | 83 |  |  | $ | 68 |  |  | $ | 41 |  |  | $ | 404 |  |  | $ | 257 |  |  | $ | 68 |  |  | $ | 43 |  |  | $ | 7 |  |  | $ | 375 |
Gross par written |  | $ | 22,464 |  |  | $ | 1,544 |  |  | $ | 1,886 |  |  | $ | 3,066 |  |  | $ | 28,960 |  |  | $ | 19,801 |  |  | $ | 624 |  |  | $ | 1,077 |  |  | $ | 545 |  |  | $ | 22,047 |

(1) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.
(2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
20

Assured Guaranty Ltd.
Gross Par Written (1 of 2)
(dollars in millions)
Gross Par Written by Asset Type

|  | Three Months Ended December 31,
|  | 2023 |  | 2022
Sector: |  |  |  |
U.S. public finance: |  |  |  |
General obligation |  | $ | 2,336 |  |  | $ | 1,403 |
Transportation |  | 1,597 |  |  | 732 |
Municipal utilities |  | 1,153 |  |  | 980 |
Healthcare |  | 844 |  |  | 769 |
Tax backed |  | 654 |  |  | 949 |
Higher education |  | 104 |  |  | 366 |
Housing revenue |  | 16 |  |  | — |
Infrastructure finance |  | 8 |  |  | 573 |
Investor-owned utilities |  | — |  |  | 47 |
Total U.S. public finance |  | 6,712 |  |  | 5,819 |
Non-U.S. public finance: |  |  |  |
Infrastructure finance |  | 614 |  |  | — |
Regulated utilities |  | 157 |  |  | — |
Sovereign and sub-sovereign |  | 103 |  |  | — |
Total non-U.S. public finance |  | 874 |  |  | — |
Total public finance |  | 7,586 |  |  | 5,819 |
U.S. structured finance: |  |  |  |
Insurance securitizations |  | 575 |  |  | 653 |
Structured credit |  | 90 |  |  | 10 |
Subscription finance facilities |  | 79 |  |  | 79 |
Pooled corporate obligations |  | 41 |  |  | 129 |
Commercial mortgage-backed securities |  | — |  |  | 100 |
Total U.S. structured finance |  | 785 |  |  | 971 |
Non-U.S. structured finance: |  |  |  |
Subscription finance facilities |  | 228 |  |  | 234 |
Pooled corporate obligations |  | 76 |  |  | 11 |
Total non-U.S. structured finance |  | 304 |  |  | 245 |
Total structured finance |  | 1,089 |  |  | 1,216 |
Total gross par written |  | $ | 8,675 |  |  | $ | 7,035 |

Please refer to the Glossary for a description of sectors.
21

Assured Guaranty Ltd.
Gross Par Written (2 of 2)
(dollars in millions)
Gross Par Written by Asset Type

|  | Year Ended December 31,
|  | 2023 |  | 2022
Sector: |  |  |  |
U.S. public finance: |  |  |  |
General obligation |  | $ | 8,450 |  |  | $ | 6,267 |
Municipal utilities |  | 5,048 |  |  | 3,240 |
Transportation |  | 2,636 |  |  | 3,707 |
Tax backed |  | 2,324 |  |  | 2,754 |
Infrastructure finance |  | 1,793 |  |  | 697 |
Healthcare |  | 1,550 |  |  | 2,355 |
Higher education |  | 403 |  |  | 734 |
Housing revenue |  | 233 |  |  | — |
Investor-owned utilities |  | — |  |  | 47 |
Other public finance |  | 27 |  |  | — |
Total U.S. public finance |  | 22,464 |  |  | 19,801 |
Non-U.S. public finance: |  |  |  |
Infrastructure finance |  | 614 |  |  | 207 |
Regulated utilities |  | 574 |  |  | 417 |
Sovereign and sub-sovereign |  | 356 |  |  | — |
Total non-U.S. public finance |  | 1,544 |  |  | 624 |
Total public finance |  | 24,008 |  |  | 20,425 |
U.S. structured finance: |  |  |  |
Insurance securitizations |  | 1,325 |  |  | 653 |
Structured credit |  | 365 |  |  | 27 |
Subscription finance facilities |  | 155 |  |  | 95 |
Pooled corporate obligations |  | 41 |  |  | 129 |
Commercial mortgage-backed securities |  | — |  |  | 113 |
Other structured finance |  | — |  |  | 60 |
Total U.S. structured finance |  | 1,886 |  |  | 1,077 |
Non-U.S. structured finance: |  |  |  |
Subscription finance facilities |  | 1,083 |  |  | 277 |
Pooled corporate obligations |  | 564 |  |  | 11 |
Other structured finance |  | 1,419 |  |  | 257 |
Total non-U.S. structured finance |  | 3,066 |  |  | 545 |
Total structured finance |  | 4,952 |  |  | 1,622 |
Total gross par written |  | $ | 28,960 |  |  | $ | 22,047 |

22

Assured Guaranty Ltd.
New Business Production by Quarter
(dollars in millions)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Year Ended
|  | 1Q-22 |  | 2Q-22 |  | 3Q-22 |  | 4Q-22 |  | 1Q-23 |  | 2Q-23 |  | 3Q-23 |  | 4Q-23 |  | 2022 |  | 2023
PVP: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Public finance - U.S. |  | $ | 49 |  |  | $ | 57 |  |  | $ | 57 |  |  | $ | 94 |  |  | $ | 22 |  |  | $ | 77 |  |  | $ | 30 |  |  | $ | 83 |  |  | $ | 257 |  |  | $ | 212 |
Public finance - non-U.S. |  | 12 |  |  | 18 |  |  | 37 |  |  | 1 |  |  | 30 |  |  | 6 |  |  | 2 |  |  | 45 |  |  | 68 |  |  | 83 |
Structured finance - U.S. |  | 2 |  |  | — |  |  | 1 |  |  | 40 |  |  | 27 |  |  | 3 |  |  | 12 |  |  | 26 |  |  | 43 |  |  | 68 |
Structured finance - non-U.S. |  | 6 |  |  | 1 |  |  | — |  |  | — |  |  | 33 |  |  | 5 |  |  | 2 |  |  | 1 |  |  | 7 |  |  | 41 |
Total PVP (1) |  | $ | 69 |  |  | $ | 76 |  |  | $ | 95 |  |  | $ | 135 |  |  | $ | 112 |  |  | $ | 91 |  |  | $ | 46 |  |  | $ | 155 |  |  | $ | 375 |  |  | $ | 404 |
Reconciliation of GWP to PVP: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total GWP |  | $ | 70 |  |  | $ | 65 |  |  | $ | 94 |  |  | $ | 131 |  |  | $ | 86 |  |  | $ | 95 |  |  | $ | 40 |  |  | $ | 136 |  |  | $ | 360 |  |  | $ | 357 |
Less: Installment GWP and other GAAP adjustments |  | 19 |  |  | 8 |  |  | 39 |  |  | 79 |  |  | 69 |  |  | 58 |  |  | 17 |  |  | 103 |  |  | 145 |  |  | 247 |
Upfront GWP |  | 51 |  |  | 57 |  |  | 55 |  |  | 52 |  |  | 17 |  |  | 37 |  |  | 23 |  |  | 33 |  |  | 215 |  |  | 110 |
Plus: Installment premiums and other(2) |  | 18 |  |  | 19 |  |  | 40 |  |  | 83 |  |  | 95 |  |  | 54 |  |  | 23 |  |  | 122 |  |  | 160 |  |  | 294 |
Total PVP |  | $ | 69 |  |  | $ | 76 |  |  | $ | 95 |  |  | $ | 135 |  |  | $ | 112 |  |  | $ | 91 |  |  | $ | 46 |  |  | $ | 155 |  |  | $ | 375 |  |  | $ | 404 |
Gross par written: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Public finance - U.S. |  | $ | 3,931 |  |  | $ | 6,429 |  |  | $ | 3,622 |  |  | $ | 5,819 |  |  | $ | 2,907 |  |  | $ | 7,747 |  |  | $ | 5,098 |  |  | $ | 6,712 |  |  | $ | 19,801 |  |  | $ | 22,464 |
Public finance - non-U.S. |  | 223 |  |  | 207 |  |  | 194 |  |  | — |  |  | 360 |  |  | 249 |  |  | 61 |  |  | 874 |  |  | 624 |  |  | 1,544 |
Structured finance - U.S. |  | 60 |  |  | 16 |  |  | 30 |  |  | 971 |  |  | 582 |  |  | 252 |  |  | 267 |  |  | 785 |  |  | 1,077 |  |  | 1,886 |
Structured finance - non-U.S.(1) |  | 257 |  |  | 43 |  |  | — |  |  | 245 |  |  | 1,514 |  |  | 726 |  |  | 522 |  |  | 304 |  |  | 545 |  |  | 3,066 |
Total |  | $ | 4,471 |  |  | $ | 6,695 |  |  | $ | 3,846 |  |  | $ | 7,035 |  |  | $ | 5,363 |  |  | $ | 8,974 |  |  | $ | 5,948 |  |  | $ | 8,675 |  |  | $ | 22,047 |  |  | $ | 28,960 |

1) PVP and gross par written includes the present value (PV) of future premiums and total exposure, respectively, associated with other guaranties written by the Company that, under GAAP, are accounted for under ASC 460, Guarantees.
2) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
23

Assured Guaranty Ltd.
Estimated Net Exposure Amortization(1) and Estimated Future Financial Guaranty Net Premium
and Credit Derivative Revenues
(dollars in millions)

|  |  |  |  |  | Financial Guaranty Insurance (2) |  |
|  | Estimated Net Debt Service Amortization |  | Estimated Ending Net Debt Service Outstanding |  | Expected PV Net Earned Premiums (i.e. Net Deferred Premium Revenue) |  | Accretion of Discount |  | Effect of FG VIE Consolidation on Expected PV Net Earned Premiums and Accretion of Discount |  | Future Credit Derivative Revenues (3)
2023 (as of December 31) |  |  |  | $ | 397,636 |  |  |  |  |  |  |  |  |
2024 Q1 |  | $ | 4,336 |  |  | 393,300 |  |  | $ | 72 |  |  | $ | 7 |  |  | $ | 1 |  |  | $ | 3 |
2024 Q2 |  | 4,206 |  |  | 389,094 |  |  | 71 |  |  | 7 |  |  | 1 |  |  | 2 |
2024 Q3 |  | 6,809 |  |  | 382,285 |  |  | 70 |  |  | 7 |  |  | 1 |  |  | 2 |
2024 Q4 |  | 5,141 |  |  | 377,144 |  |  | 69 |  |  | 7 |  |  | 1 |  |  | 2 |
2025 |  | 21,822 |  |  | 355,322 |  |  | 264 |  |  | 26 |  |  | 3 |  |  | 8 |
2026 |  | 20,756 |  |  | 334,566 |  |  | 247 |  |  | 25 |  |  | 2 |  |  | 8 |
2027 |  | 18,845 |  |  | 315,721 |  |  | 234 |  |  | 23 |  |  | 2 |  |  | 8 |
2028 |  | 19,404 |  |  | 296,317 |  |  | 220 |  |  | 22 |  |  | 2 |  |  | 7 |
2024-2028 |  | 101,319 |  |  | 296,317 |  |  | 1,247 |  |  | 124 |  |  | 13 |  |  | 40 |
2029-2033 |  | 90,738 |  |  | 205,579 |  |  | 909 |  |  | 90 |  |  | 11 |  |  | 29 |
2034-2038 |  | 70,764 |  |  | 134,815 |  |  | 602 |  |  | 62 |  |  | 9 |  |  | 23 |
2039-2043 |  | 50,280 |  |  | 84,535 |  |  | 375 |  |  | 41 |  |  | — |  |  | 14 |
After 2043 |  | 84,535 |  |  | — |  |  | 513 |  |  | 53 |  |  | — |  |  | 8 |
Total |  | $ | 397,636 |  |  |  |  | $ | 3,646 |  |  | $ | 370 |  |  | $ | 33 |  |  | $ | 114 |

Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve(4)

|  | GAAP |  | Effect of FG VIE Consolidation on Net Unearned Premium Reserve
Net deferred premium revenue: |  |  |  |
Financial guaranty |  | $ | 3,646 |  |  | $ | 32 |
Specialty |  | 8 |  |  | — |
Net deferred premium revenue |  | 3,654 |  |  | 32 |
Contra-paid |  | (22) |  |  | (3) |
Net unearned premium reserve |  | $ | 3,632 |  |  | $ | 29 |

1) Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of December 31, 2023. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations, terminations and because of management's assumptions on structured finance amortization.
2) See also page 27, for ‘‘Net Expected Loss to be Expensed.’’
3) Represents expected future premiums on insured credit derivatives.
4) Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).
24

Assured Guaranty Ltd.
Roll Forward of Net Expected Loss and LAE to be Paid
(dollars in millions)
Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Three Months Ended December 31, 2023

|  | Net Expected Loss to be Paid (Recovered) as of September 30, 2023 |  | Net Economic Loss Development (Benefit) During 4Q-23 |  | Net (Paid) Recovered Losses During 4Q-23 |  | Net Expected Loss to be Paid (Recovered) as of December 31, 2023
Public Finance: |  |  |  |  |  |  |  |
U.S. public finance |  | $ | 399 |  |  | $ | 8 |  |  | $ | (9) |  |  | $ | 398 |
Non-U.S public finance |  | 9 |  |  | 11 |  |  | — |  |  | 20 |
Public Finance |  | 408 |  |  | 19 |  |  | (9) |  |  | 418 |
Structured Finance: |  |  |  |  |  |  |  |
U.S. RMBS |  | 38 |  |  | (4) |  |  | 9 |  |  | 43 |
Other structured finance |  | 44 |  |  | 2 |  |  | (2) |  |  | 44 |
Structured Finance |  | 82 |  |  | (2) |  |  | 7 |  |  | 87 |
Total |  | $ | 490 |  |  | $ | 17 |  |  | $ | (2) |  |  | $ | 505 |

Roll Forward of Net Expected Loss and LAE to be Paid (1) for the Year Ended December 31, 2023

|  | Net Expected Loss to be Paid (Recovered) as of December 31, 2022 |  | Net Economic Loss Development (Benefit) During 2023 |  | Net (Paid) Recovered Losses During 2023 |  | Net Expected Loss to be Paid (Recovered) as of December 31, 2023
Public Finance: |  |  |  |  |  |  |  |
U.S. public finance |  | $ | 403 |  |  | $ | 201 |  |  | $ | (206) |  |  | $ | 398 |
Non-U.S public finance |  | 9 |  |  | 11 |  |  | — |  |  | 20 |
Public Finance |  | 412 |  |  | 212 |  |  | (206) |  |  | 418 |
Structured Finance: |  |  |  |  |  |  |  |
U.S. RMBS |  | 66 |  |  | (56) |  |  | 33 |  |  | 43 |
Other structured finance |  | 44 |  |  | 8 |  |  | (8) |  |  | 44 |
Structured Finance |  | 110 |  |  | (48) |  |  | 25 |  |  | 87 |
Total |  | $ | 522 |  |  | $ | 164 |  |  | $ | (181) |  |  | $ | 505 |

1) Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e., those accounted for as insurance, credit derivatives and FG VIEs).
25

Assured Guaranty Ltd.
Loss Measures
As of December 31, 2023
(dollars in millions)

|  |  |  |  | Three Months Ended December 31, 2023 |  |  | Year Ended December 31, 2023
|  | Total Net Par Outstanding for BIG Transactions |  |  | GAAP Loss and LAE(1) |  | Loss and LAE included in Adjusted Operating Income (2) |  | Insurance Segment Loss and LAE(3) |  |  | GAAP Loss and LAE (1) |  | Loss and LAE included in Adjusted Operating Income (2) |  | Insurance Segment Loss and LAE(3)
Public finance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. public finance |  | $ | 3,271 |  |  |  | $ | 6 |  |  | $ | 6 |  |  | $ | 7 |  |  |  | $ | 192 |  |  | $ | 192 |  |  | $ | 191 |
Non-U.S public finance |  | 1,131 |  |  |  | — |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |
Public finance |  | 4,402 |  |  |  | 6 |  |  | 6 |  |  | 7 |  |  |  | 192 |  |  | 192 |  |  | 191 |
Structured finance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. RMBS |  | $ | 941 |  |  |  | (3) |  |  | (3) |  |  | (1) |  |  |  | (34) |  |  | (34) |  |  | (36) |
Other structured finance |  | 94 |  |  |  | — |  |  | 1 |  |  | 1 |  |  |  | 4 |  |  | 6 |  |  | 6 |
Structured finance |  | 1,035 |  |  |  | (3) |  |  | (2) |  |  | — |  |  |  | (30) |  |  | (28) |  |  | (30) |
Total |  | $ | 5,437 |  |  |  | $ | 3 |  |  | $ | 4 |  |  | $ | 7 |  |  |  | $ | 162 |  |  | $ | 164 |  |  | $ | 161 |

1) Includes loss expense related to contracts that are accounted for as insurance contracts.
2) Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.
3) Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.
Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
26

Assured Guaranty Ltd.
Net Expected Loss to be Expensed (1)
As of December 31, 2023
(dollars in millions)

|  | GAAP
2024 Q1 |  | $ | 3 |
2024 Q2 |  | 3 |
2024 Q3 |  | 3 |
2024 Q4 |  | 3 |
2025 |  | 12 |
2026 |  | 16 |
2027 |  | 16 |
2028 |  | 15 |
2024-2028 |  | 71 |
2029-2033 |  | 69 |
2034-2038 |  | 48 |
2039-2043 |  | 11 |
After 2043 |  | 11 |
Total expected present value of net expected loss to be expensed (2) |  | 210 |
Future accretion |  | 19 |
Total expected future loss and LAE |  | $ | 229 |

1) The present value of net expected loss to be paid is discounted using risk free rates ranging from 3.79% to 5.40% for U.S. dollar denominated obligations.
2) Excludes $27 million related to FG VIEs, which are eliminated in consolidation.
27

Assured Guaranty Ltd.
Financial Guaranty Profile (1 of 3)
(dollars in millions)
Net Par Outstanding by Asset Type

|  | As of December 31, 2023 |  | As of December 31, 2022
U.S. public finance: |  |  |  |
General obligation |  | $ | 74,609 |  |  | $ | 71,868 |
Tax backed |  | 33,060 |  |  | 33,752 |
Municipal utilities |  | 29,300 |  |  | 26,436 |
Transportation |  | 22,052 |  |  | 19,688 |
Healthcare |  | 12,604 |  |  | 11,304 |
Infrastructure finance |  | 8,796 |  |  | 6,955 |
Higher education |  | 7,250 |  |  | 7,137 |
Housing revenue |  | 1,152 |  |  | 959 |
Investor-owned utilities |  | 329 |  |  | 332 |
Renewable energy |  | 167 |  |  | 180 |
Other public finance |  | 970 |  |  | 1,025 |
Total U.S. public finance |  | 190,289 |  |  | 179,636 |
Non-U.S public finance: |  |  |  |
Regulated utilities |  | 20,545 |  |  | 17,855 |
Infrastructure finance |  | 15,430 |  |  | 13,915 |
Sovereign and sub-sovereign |  | 9,869 |  |  | 9,526 |
Renewable energy |  | 2,030 |  |  | 2,086 |
Pooled infrastructure |  | 1,133 |  |  | 1,081 |
Total non-U.S. public finance |  | 49,007 |  |  | 44,463 |
Total public finance |  | 239,296 |  |  | 224,099 |
U.S. structured finance: |  |  |  |
Insurance securitizations |  | 4,379 |  |  | 3,879 |
RMBS |  | 1,774 |  |  | 1,956 |
Pooled corporate obligations |  | 631 |  |  | 625 |
Financial products |  | 464 |  |  | 453 |
Consumer receivables |  | 314 |  |  | 437 |
Subscription finance facilities |  | 178 |  |  | 72 |
Other structured finance |  | 892 |  |  | 806 |
Total U.S. structured finance |  | 8,632 |  |  | 8,228 |
Non-U.S. structured finance: |  |  |  |
Subscription finance facilities |  | 444 |  |  | 219 |
Pooled corporate obligations |  | 425 |  |  | 344 |
RMBS |  | 252 |  |  | 263 |
Other structured finance |  | 104 |  |  | 105 |
Total non-U.S structured finance |  | 1,225 |  |  | 931 |
Total structured finance |  | 9,857 |  |  | 9,159 |
Total net par outstanding |  | $ | 249,153 |  |  | $ | 233,258 |

Please refer to the Glossary for an explanation of the presentation of net par outstanding and various sectors.
28

Assured Guaranty Ltd.
Financial Guaranty Profile (2 of 3)
As of December 31, 2023
(dollars in millions)
Distribution by Ratings of Financial Guaranty Portfolio

|  | Public Finance - U.S. |  | Public Finance - Non-U.S. |  | Structured Finance - U.S. |  | Structured Finance - Non-U.S. |  | Total
Ratings: |  | Net Par Outstanding | % |  | Net Par Outstanding | % |  | Net Par Outstanding | % |  | Net Par Outstanding | % |  | Net Par Outstanding | %
AAA |  | $ | 110 |  | 0.1 | % |  | $ | 2,062 |  | 4.2 | % |  | $ | 867 |  | 10.0 | % |  | $ | 465 |  | 38.0 | % |  | $ | 3,504 |  | 1.4 | %
AA |  | 17,883 |  | 9.4 |  |  | 3,379 |  | 6.9 |  |  | 4,517 |  | 52.3 |  |  | 89 |  | 7.3 |  |  | 25,868 |  | 10.4 |
A |  | 102,945 |  | 54.1 |  |  | 12,968 |  | 26.5 |  |  | 1,639 |  | 19.0 |  |  | 571 |  | 46.6 |  |  | 118,123 |  | 47.4 |
BBB |  | 66,080 |  | 34.7 |  |  | 29,467 |  | 60.1 |  |  | 574 |  | 6.7 |  |  | 100 |  | 8.1 |  |  | 96,221 |  | 38.6 |
BIG |  | 3,271 |  | 1.7 |  |  | 1,131 |  | 2.3 |  |  | 1,035 |  | 12.0 |  |  | — |  | — |  |  | 5,437 |  | 2.2 |
Net Par Outstanding (1) |  | $ | 190,289 |  | 100.0 | % |  | $ | 49,007 |  | 100.0 | % |  | $ | 8,632 |  | 100.0 | % |  | $ | 1,225 |  | 100.0 | % |  | $ | 249,153 |  | 100.0 | %

1) As of December 31, 2023, the Company excluded $1.2 billion of net par outstanding primarily attributable to Loss Mitigation Securities.
Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.
29

Assured Guaranty Ltd.
Financial Guaranty Profile (3 of 3)
As of December 31, 2023
(dollars in millions)
Geographic Distribution of Financial Guaranty Portfolio

|  | Net Par Outstanding |  | % of Total
U.S.: |  |  |  |
U.S. public finance: |  |  |  |
California |  | $ | 36,200 |  |  | 14.5 | %
Texas |  | 22,783 |  |  | 9.1 |
New York |  | 17,751 |  |  | 7.1 |
Pennsylvania |  | 16,941 |  |  | 6.8 |
Illinois |  | 12,953 |  |  | 5.2 |
New Jersey |  | 9,255 |  |  | 3.7 |
Florida |  | 8,586 |  |  | 3.5 |
Michigan |  | 5,533 |  |  | 2.2 |
Louisiana |  | 4,758 |  |  | 1.9 |
Alabama |  | 3,819 |  |  | 1.5 |
Other |  | 51,710 |  |  | 20.8 |
Total U.S. public finance |  | 190,289 |  |  | 76.3 |
U.S. structured finance |  | 8,632 |  |  | 3.5 |
Total U.S. |  | 198,921 |  |  | 79.8 |
Non-U.S.: |  |  |  |
United Kingdom |  | 39,394 |  |  | 15.8 |
Canada |  | 1,696 |  |  | 0.7 |
Spain |  | 1,649 |  |  | 0.7 |
France |  | 1,565 |  |  | 0.6 |
Australia |  | 1,518 |  |  | 0.6 |
Other |  | 4,410 |  |  | 1.8 |
Total non-U.S. |  | 50,232 |  |  | 20.2 |
Total net par outstanding |  | $ | 249,153 |  |  | 100.0 | %

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
30

Assured Guaranty Ltd.
Specialty Business
(dollars in millions)

|  | As of December 31, 2023 |  | As of December 31, 2022
|  | Gross Exposure |  | Net Exposure |  | Gross Exposure |  | Net Exposure
Insurance securitizations (1) |  | $ | 1,370 |  |  | $ | 1,043 |  |  | $ | 1,314 |  |  | $ | 986 |
Aircraft residual value insurance policies (2) |  | 355 |  |  | 200 |  |  | 355 |  |  | 200 |
Other guaranties |  | 2,057 |  |  | 2,057 |  |  | 228 |  |  | 228 |

1) Insurance securitizations net exposure is projected to reach $1.2 billion in 2026.
2) As of both December 31, 2023 and December 31, 2022, gross exposure of $144 million and net exposure of $84 million of aircraft residual value insurance was internally rated BIG. All other exposures in the table above are investment-grade.
31

Assured Guaranty Ltd.
Expected Amortization of Net Par Outstanding
(dollars in millions)

|  | Public Finance |  | Structured Finance
|  | Estimated Net Par Amortization |  | Estimated Ending Net Par Outstanding |  | U.S. and Non-U.S. Pooled Corporate |  | U.S. RMBS |  | Financial Products |  | Other Structured Finance |  | Total |  | Estimated Ending Net Par Outstanding
2023 (as of December 31) |  |  |  | $ | 239,296 |  |  |  |  |  |  |  |  |  |  |  |  | $ | 9,857 |
2024 Q1 |  | $ | 1,577 |  |  | 237,719 |  |  | $ | 8 |  |  | $ | 68 |  |  | $ | 19 |  |  | $ | (1) |  |  | $ | 94 |  |  | 9,763 |
2024 Q2 |  | 1,487 |  |  | 236,232 |  |  | 10 |  |  | 65 |  |  | 2 |  |  | 51 |  |  | 128 |  |  | 9,635 |
2024 Q3 |  | 3,918 |  |  | 232,314 |  |  | 7 |  |  | 66 |  |  | (4) |  |  | 141 |  |  | 210 |  |  | 9,425 |
2024 Q4 |  | 2,227 |  |  | 230,087 |  |  | 7 |  |  | 61 |  |  | (7) |  |  | 363 |  |  | 424 |  |  | 9,001 |
2025 |  | 10,994 |  |  | 219,093 |  |  | 148 |  |  | 239 |  |  | 30 |  |  | 340 |  |  | 757 |  |  | 8,244 |
2026 |  | 10,538 |  |  | 208,555 |  |  | 198 |  |  | 186 |  |  | 37 |  |  | 250 |  |  | 671 |  |  | 7,573 |
2027 |  | 9,113 |  |  | 199,442 |  |  | 214 |  |  | 168 |  |  | (9) |  |  | 287 |  |  | 660 |  |  | 6,913 |
2028 |  | 10,026 |  |  | 189,416 |  |  | 204 |  |  | 159 |  |  | 51 |  |  | 330 |  |  | 744 |  |  | 6,169 |
2024-2028 |  | 49,880 |  |  | 189,416 |  |  | 796 |  |  | 1,012 |  |  | 119 |  |  | 1,761 |  |  | 3,688 |  |  | 6,169 |
2029-2033 |  | 51,004 |  |  | 138,412 |  |  | 122 |  |  | 351 |  |  | 265 |  |  | 2,678 |  |  | 3,416 |  |  | 2,753 |
2034-2038 |  | 44,051 |  |  | 94,361 |  |  | 49 |  |  | 404 |  |  | 65 |  |  | 752 |  |  | 1,270 |  |  | 1,483 |
2039-2043 |  | 32,379 |  |  | 61,982 |  |  | 89 |  |  | — |  |  | 15 |  |  | 781 |  |  | 885 |  |  | 598 |
After 2043 |  | 61,982 |  |  | — |  |  | — |  |  | 7 |  |  | — |  |  | 591 |  |  | 598 |  |  | — |
Total |  | $ | 239,296 |  |  |  |  | $ | 1,056 |  |  | $ | 1,774 |  |  | $ | 464 |  |  | $ | 6,563 |  |  | $ | 9,857 |  |  |

Net par outstanding (end of period)

|  |  | 1Q-22 |  | 2Q-22 |  | 3Q-22 |  | 4Q-22 |  | 1Q-23 |  | 2Q-23 |  | 3Q-23 |  | 4Q-23
Public finance - U.S. |  | $ | 175,957 |  |  | $ | 179,648 |  |  | $ | 177,842 |  |  | $ | 179,636 |  |  | $ | 180,837 |  |  | $ | 186,323 |  |  | $ | 185,973 |  |  | $ | 190,289 |
Public finance - non-U.S. |  | 48,506 |  |  | 44,447 |  |  | 41,063 |  |  | 44,463 |  |  | 45,909 |  |  | 47,658 |  |  | 45,748 |  |  | 49,007 |
Structured finance - U.S. |  | 8,101 |  |  | 7,935 |  |  | 7,449 |  |  | 8,228 |  |  | 8,660 |  |  | 8,827 |  |  | 8,975 |  |  | 8,632 |
Structured finance - non-U.S. |  | 815 |  |  | 782 |  |  | 717 |  |  | 931 |  |  | 977 |  |  | 1,205 |  |  | 1,137 |  |  | 1,225 |
| Net par outstanding |  | $ | 233,379 |  |  | $ | 232,812 |  |  | $ | 227,071 |  |  | $ | 233,258 |  |  | $ | 236,383 |  |  | $ | 244,013 |  |  | $ | 241,833 |  |  | $ | 249,153 |

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.
32

Assured Guaranty Ltd.
Exposure to Puerto Rico (1 of 2)
As of December 31, 2023
(dollars in millions)
Exposure to Puerto Rico

| Par Outstanding |  | Debt Service Outstanding
| Gross |  | Net |  | Gross |  | Net
Total | $ | 1,120 |  |  | $ | 1,105 |  |  | $ | 1,526 |  |  | $ | 1,508 |

Exposure to Puerto Rico by Company

| Net Par Outstanding |  |
| AGM |  | AGC |  | AG Re |  | Eliminations (1) |  | Total Net Par Outstanding |  | Gross Par Outstanding
Defaulted Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |
Puerto Rico Electric Power Authority (PREPA) | $ | 377 |  |  | $ | 67 |  |  | $ | 180 |  |  | $ | — |  |  | $ | 624 |  |  | $ | 633 |
Total Defaulted | 377 |  |  | 67 |  |  | 180 |  |  | — |  |  | 624 |  |  | 633 |
Resolved Puerto Rico Exposures (2)(3) |  |  |  |  |  |  |  |  |  |  |
Puerto Rico Highways and Transportation Authority (PRHTA) (Transportation revenue) | 14 |  |  | 157 |  |  | 87 |  |  | (14) |  |  | 244 |  |  | 244 |
PRHTA (Highway revenue) | 109 |  |  | 11 |  |  | 8 |  |  | — |  |  | 128 |  |  | 128 |
Total Resolved | 123 |  |  | 168 |  |  | 95 |  |  | (14) |  |  | 372 |  |  | 372 |
Other Puerto Rico Exposures (4) |  |  |  |  |  |  |  |  |  |  |
Puerto Rico Municipal Finance Agency (MFA) | 84 |  |  | 6 |  |  | 18 |  |  | — |  |  | 108 |  |  | 114 |
Puerto Rico Aqueduct and Sewer Authority (PRASA) and University of Puerto Rico (U of PR) | — |  |  | 1 |  |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total Other | 84 |  |  | 7 |  |  | 18 |  |  | — |  |  | 109 |  |  | 115 |
Total exposure to Puerto Rico | $ | 584 |  |  | $ | 242 |  |  | $ | 293 |  |  | $ | (14) |  |  | $ | 1,105 |  |  | $ | 1,120 |

1) Net par outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.
2) A substantial portion of the Company’s Puerto Rico exposure was resolved in 2022 in accordance with four orders (including orders implementing the GO/PBA Plan and HTA Plan described below) entered by the United States District Court of the District of Puerto Rico related to the Company’s exposure to all insured Puerto Rico credits experiencing payment default in 2022 except PREPA (2022 Puerto Rico Resolutions). Under the Modified Eighth Amended Title III Joint Plan of Adjustment of the Commonwealth of Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Public Buildings Authority (GO/PBA Plan), the Company received cash, new general obligation bonds and CVIs. In connection with the Modified Fifth Amended Title III Plan of Adjustment for PRHTA (HTA Plan) and related arrangements, the Company received cash and new bonds backed by toll revenues (Toll Bonds) from the PRHTA and CVIs from the Commonwealth of Puerto Rico.
3) Resolved pursuant to the 2022 Puerto Rico Resolutions. Consideration (e.g., Toll Bonds and CVIs) received under the HTA Plan related to the remaining insured exposure is reported in FG VIEs’ assets. In January 2024, $144 million of the remaining PRHTA net par was paid down. The remaining liabilities are payable in full by the U.S. Insurance Subsidiaries under their financial guaranty policies and are no longer dependent on the credit of PRHTA.
4) All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.
33

Assured Guaranty Ltd.
Exposure to Puerto Rico (2 of 2)
As of December 31, 2023
(dollars in millions)
Amortization Schedule of Net Par Outstanding of Puerto Rico

| 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034-2038 | 2039 -2041 | Total
Defaulted Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PREPA | $ | — |  | $ | — |  | $ | 93 |  | $ | — |  | $ | 68 |  | $ | 105 |  | $ | 105 |  | $ | 68 |  | $ | 39 |  | $ | 44 |  | $ | 75 |  | $ | 14 |  | $ | 4 |  | $ | 9 |  | $ | — |  | $ | 624 |
Total Defaulted | — |  | — |  | 93 |  | — |  | 68 |  | 105 |  | 105 |  | 68 |  | 39 |  | 44 |  | 75 |  | 14 |  | 4 |  | 9 |  | — |  | 624 |
Resolved Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PRHTA (Transportation revenue) | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 127 |  | 117 |  | 244 |
PRHTA (Highway revenue) | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 27 |  | 17 |  | 84 |  | — |  | 128 |
Total Resolved | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 27 |  | 17 |  | 211 |  | 117 |  | 372 |
Other Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MFA | — |  | — |  | 16 |  | — |  | 16 |  | 35 |  | 15 |  | 13 |  | 7 |  | 6 |  | — |  | — |  | — |  | — |  | — |  | 108 |
PRASA and U of PR | — |  | — |  | 1 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 1 |
Total Other | — |  | — |  | 17 |  | — |  | 16 |  | 35 |  | 15 |  | 13 |  | 7 |  | 6 |  | — |  | — |  | — |  | — |  | — |  | 109 |
Total | $ | — |  | $ | — |  | $ | 110 |  | $ | — |  | $ | 84 |  | $ | 140 |  | $ | 120 |  | $ | 81 |  | $ | 46 |  | $ | 50 |  | $ | 75 |  | $ | 41 |  | $ | 21 |  | $ | 220 |  | $ | 117 |  | $ | 1,105 |

Amortization Schedule of Net Debt Service Outstanding of Puerto Rico

| 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | 2034-2038 | 2039 -2041 | Total
Defaulted Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PREPA | $ | 12 |  | $ | 3 |  | $ | 105 |  | $ | 3 |  | $ | 92 |  | $ | 126 |  | $ | 122 |  | $ | 80 |  | $ | 47 |  | $ | 51 |  | $ | 81 |  | $ | 15 |  | $ | 5 |  | $ | 9 |  | $ | — |  | $ | 751 |
Total Defaulted | 12 |  | 3 |  | 105 |  | 3 |  | 92 |  | 126 |  | 122 |  | 80 |  | 47 |  | 51 |  | 81 |  | 15 |  | 5 |  | 9 |  | — |  | 751 |
Resolved Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
PRHTA (Transportation revenue) | 6 |  | — |  | 6 |  | — |  | 13 |  | 13 |  | 12 |  | 13 |  | 13 |  | 13 |  | 13 |  | 13 |  | 13 |  | 172 |  | 128 |  | 428 |
PRHTA (Highway revenue) | 3 |  | — |  | 3 |  | — |  | 7 |  | 7 |  | 7 |  | 7 |  | 7 |  | 7 |  | 6 |  | 34 |  | 22 |  | 93 |  | — |  | 203 |
Total Resolved | 9 |  | — |  | 9 |  | — |  | 20 |  | 20 |  | 19 |  | 20 |  | 20 |  | 20 |  | 19 |  | 47 |  | 35 |  | 265 |  | 128 |  | 631 |
Other Puerto Rico Exposures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
MFA | 3 |  | — |  | 19 |  | — |  | 20 |  | 39 |  | 17 |  | 14 |  | 7 |  | 6 |  | — |  | — |  | — |  | — |  | — |  | 125 |
PRASA and U of PR | — |  | — |  | 1 |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 1 |
Total Other | 3 |  | — |  | 20 |  | — |  | 20 |  | 39 |  | 17 |  | 14 |  | 7 |  | 6 |  | — |  | — |  | — |  | — |  | — |  | 126 |
Total | $ | 24 |  | $ | 3 |  | $ | 134 |  | $ | 3 |  | $ | 132 |  | $ | 185 |  | $ | 158 |  | $ | 114 |  | $ | 74 |  | $ | 77 |  | $ | 100 |  | $ | 62 |  | $ | 40 |  | $ | 274 |  | $ | 128 |  | $ | 1,508 |

34

Assured Guaranty Ltd.
U.S. RMBS Profile
As of December 31, 2023
(dollars in millions)
Distribution of U.S. RMBS by Rating and Type of Exposure

Ratings: |  | Prime First Lien |  | Alt-A First Lien |  | Option ARMs |  | Subprime First Lien |  | Second Lien |  | Total Net Par Outstanding
AAA |  | $ | 9 |  |  | $ | 56 |  |  | $ | 9 |  |  | $ | 323 |  |  | $ | 2 |  |  | $ | 399 |
AA |  | 8 |  |  | 71 |  |  | 6 |  |  | 140 |  |  | 168 |  |  | 393 |
A |  | — |  |  | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |
BBB |  | 3 |  |  | — |  |  | 1 |  |  | 33 |  |  | 2 |  |  | 39 |
BIG |  | 30 |  |  | 191 |  |  | 14 |  |  | 602 |  |  | 104 |  |  | 941 |
Total exposures |  | $ | 50 |  |  | $ | 318 |  |  | $ | 30 |  |  | $ | 1,100 |  |  | $ | 276 |  |  | $ | 1,774 |

Distribution of U.S. RMBS by Year Insured and Type of Exposure

Year insured: |  | Prime First Lien |  | Alt-A First Lien |  | Option ARMs |  | Subprime First Lien |  | Second Lien |  | Total Net Par Outstanding
2004 and prior |  | $ | 8 |  |  | $ | 7 |  |  | $ | — |  |  | $ | 301 |  |  | $ | 9 |  |  | $ | 325 |
2005 |  | 21 |  |  | 110 |  |  | 14 |  |  | 178 |  |  | 40 |  |  | 363 |
2006 |  | 21 |  |  | 22 |  |  | 1 |  |  | 37 |  |  | 93 |  |  | 174 |
2007 |  | — |  |  | 179 |  |  | 15 |  |  | 554 |  |  | 134 |  |  | 882 |
2008 |  | — |  |  | — |  |  | — |  |  | 30 |  |  | — |  |  | 30 |
Total exposures |  | $ | 50 |  |  | $ | 318 |  |  | $ | 30 |  |  | $ | 1,100 |  |  | $ | 276 |  |  | $ | 1,774 |

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding, internal ratings and a description of sectors.
35

Assured Guaranty Ltd.
Direct Pooled Corporate Obligations Profile
As of December 31, 2023
(dollars in millions)
Distribution of Direct Pooled Corporate Obligations by Ratings

|  | Net Par Outstanding |  | % of Total |  | Average Initial Credit Enhancement |  | Average Current Credit Enhancement
Ratings: |  |  |  |  |  |  |  |
AAA |  | $ | 794 |  |  | 75.2 | % |  | 41.7% |  | 50.8%
AA |  | 114 |  |  | 10.8 |  |  | 37.7% |  | 39.3%
A |  | 119 |  |  | 11.3 |  |  | 47.4% |  | 55.2%
BBB |  | 29 |  |  | 2.7 |  |  | 41.7% |  | 45.4%
Total exposures |  | $ | 1,056 |  |  | 100.0 | % |  | 41.9% |  | 49.9%

Distribution of Direct Pooled Corporate Obligations by Asset Class

|  | Net Par Outstanding |  | % of Total |  | Average Initial Credit Enhancement |  | Average. Current Credit Enhancement |  | Number of Transactions
Asset class: |  |  |  |  |  |  |  |  |  |
Trust preferred |  |  |  |  |  |  |  |  |  |
Banks and insurance |  | $ | 333 |  |  | 31.5 | % |  | 43.3% |  | 64.5% |  | 12
U.S. mortgage and real estate investment trusts |  | 79 |  |  | 7.5 |  |  | 47.3% |  | 65.0% |  | 3
CLOs |  | 644 |  |  | 61.0 |  |  | 40.5% |  | 40.6% |  | 8
Total exposures |  | $ | 1,056 |  |  | 100.0 | % |  | 41.9% |  | 49.9% |  | 23

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.
36

Assured Guaranty Ltd.
Below Investment Grade Exposures (1 of 3)
(dollars in millions)
BIG Exposures by Asset Exposure Type

|  | As of
|  | December 31, 2023 |  | December 31, 2022
U.S. public finance: |  |  |  |
Healthcare |  | $ | 1,079 |  |  | $ | 1,085 |
Municipal utilities |  | 914 |  |  | 1,025 |
Tax backed |  | 503 |  |  | 889 |
General obligation |  | 286 |  |  | 337 |
Transportation |  | 109 |  |  | 109 |
Higher education |  | 100 |  |  | 107 |
Housing revenue |  | 70 |  |  | 73 |
Investor-owned utilities |  | 47 |  |  | — |
Infrastructure finance |  | 45 |  |  | 46 |
Other public finance |  | 118 |  |  | 125 |
Total U.S. public finance |  | 3,271 |  |  | 3,796 |
Non-U.S. public finance: |  |  |  |
Infrastructure finance |  | 815 |  |  | 911 |
Renewable energy |  | 271 |  |  | 18 |
Sovereign and sub-sovereign |  | 45 |  |  | 52 |
Total non-U.S. public finance |  | 1,131 |  |  | 981 |
Total public finance |  | 4,402 |  |  | 4,777 |
U.S. structured finance: |  |  |  |
RMBS |  | 941 |  |  | 1,010 |
Consumer receivables |  | 52 |  |  | 60 |
Insurance securitizations |  | 40 |  |  | 40 |
Other structured finance |  | 2 |  |  | 5 |
Total U.S. structured finance |  | 1,035 |  |  | 1,115 |
Non-U.S. structured finance: |  |  |  |
Total non-U.S. structured finance |  | — |  |  | — |
Total structured finance |  | 1,035 |  |  | 1,115 |
Total BIG net par outstanding |  | $ | 5,437 |  |  | $ | 5,892 |

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.
37

Assured Guaranty Ltd.
Below Investment Grade Exposures (2 of 3)
(dollars in millions)
Net Par Outstanding by BIG Category (1)

|  | As of
|  | December 31, 2023 |  | December 31, 2022
BIG Category 1 |  |  |  |
U.S. public finance |  | $ | 1,257 |  |  | $ | 2,364 |
Non-U.S. public finance |  | 1,131 |  |  | 981 |
U.S. structured finance |  | 22 |  |  | 18 |
Non-U.S. structured finance |  | — |  |  | — |
Total BIG Category 1 |  | 2,410 |  |  | 3,363 |
BIG Category 2 |  |  |  |
U.S. public finance |  | 926 |  |  | 108 |
Non-U.S. public finance |  | — |  |  | — |
U.S. structured finance |  | 63 |  |  | 73 |
Non-U.S. structured finance |  | — |  |  | — |
Total BIG Category 2 |  | 989 |  |  | 181 |
BIG Category 3 |  |  |  |
U.S. public finance |  | 1,088 |  |  | 1,324 |
Non-U.S. public finance |  | — |  |  | — |
U.S. structured finance |  | 950 |  |  | 1,024 |
Non-U.S. structured finance |  | — |  |  | — |
Total BIG Category 3 |  | 2,038 |  |  | 2,348 |
BIG Total |  | $ | 5,437 |  |  | $ | 5,892 |

1) Assured Guaranty's surveillance department is responsible for monitoring the Company's portfolio of credits and maintains a list of BIG credits. BIG Category 1: Below-investment-grade transactions showing sufficient deterioration to make future losses possible, but for which none are currently expected. BIG Category 2: Below-investment-grade transactions for which future losses are expected but for which no claims (other than liquidity claims which are claims that the Company expects to be reimbursed within one year) have yet been paid. BIG Category 3: Below-investment-grade transactions for which future losses are expected and on which claims (other than liquidity claims) have been paid.
Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.
38

Assured Guaranty Ltd.
Below Investment Grade Exposures (3 of 3)
As of December 31, 2023
(dollars in millions)
Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million

|  | Net Par Outstanding |  | Internal Rating (1) |  | 60+ Day Delinquencies
Name or description |  |  |  |  |  |
U.S. public finance: |  |  |  |  |  |
ProMedica Healthcare Obligated Group, Ohio |  | $ | 820 |  |  | BB- |  |
Puerto Rico Electric Power Authority |  | 624 |  |  | CCC |  |
Puerto Rico Highways & Transportation Authority |  | 372 |  |  | CCC |  |
OU Health (Medicine), Oklahoma |  | 253 |  |  | BB+ |  |
Jackson Water & Sewer System, Mississippi |  | 157 |  |  | BB |  |
Puerto Rico Municipal Finance Agency |  | 108 |  |  | CCC |  |
Stockton City, California |  | 91 |  |  | B |  |
New Jersey City University |  | 87 |  |  | BB |  |
Harrisburg Parking System, Pennsylvania |  | 80 |  |  | B |  |
San Jacinto River Authority (GRP Project), Texas |  | 59 |  |  | BB+ |  |
Indiana University of Pennsylvania, Pennsylvania |  | 56 |  |  | CCC |  |
Total U.S. public finance |  | 2,707 |  |  |  |  |
Non-U.S. public finance: |  |  |  |  |  |
Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc |  | 531 |  |  | B+ |  |
Q Energy - Phase III - FSL Issuer, S.A.U. |  | 271 |  |  | BB |  |
Road Management Services PLC (A13 Highway) |  | 125 |  |  | B+ |  |
Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc |  | 122 |  |  | BB+ |  |
Total non-U.S. public finance |  | 1,049 |  |  |  |  |
Total public finance |  | 3,756 |  |  |  |  |
U.S. structured finance: |  |  |  |  |  |
RMBS: |  |  |  |  |  |
Option One 2007-FXD2 |  | 106 |  |  | CCC |  | 14.9%
Option One Mortgage Loan Trust 2007-Hl1 |  | 98 |  |  | CCC |  | 25.0%
Argent Securities Inc. 2005-W4 |  | 92 |  |  | CCC |  | 11.5%
Nomura Asset Accept. Corp. 2007-1 |  | 58 |  |  | CCC |  | 15.7%
New Century 2005-A |  | 52 |  |  | CCC |  | 10.6%
Total RMBS-U.S. structured finance |  | 406 |  |  |  |  |
Total non-U.S. structured finance |  | — |  |  |  |  |
Total structured finance |  | 406 |  |  |  |  |
Total |  | $ | 4,162 |  |  |  |  |

1) Transactions rated below B- are categorized as CCC.
Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.
39

Assured Guaranty Ltd.
Largest Exposures by Sector (1 of 3)
As of December 31, 2023
(dollars in millions)
50 Largest U.S. Public Finance Exposures by Revenue Source

Credit Name: |  | Net Par Outstanding |  | Internal Rating(1)
| New Jersey (State of) |  | $ | 2,905 |  |  | BBB
| Pennsylvania (Commonwealth of) |  | 2,196 |  |  | BBB+
| Metro Washington Airports Authority (Dulles Toll Road) |  | 1,633 |  |  | BBB+
| New York Metropolitan Transportation Authority |  | 1,481 |  |  | A-
| New York Power Authority |  | 1,460 |  |  | AA-
| Foothill/Eastern Transportation Corridor Agency, California |  | 1,326 |  |  | BBB+
| Alameda Corridor Transportation Authority, California |  | 1,309 |  |  | BBB+
| North Texas Tollway Authority |  | 1,295 |  |  | A+
| CommonSpirit Health, Illinois |  | 1,000 |  |  | A-
| San Joaquin Hills Transportation, California |  | 988 |  |  | BBB
| Lower Colorado River Authority |  | 976 |  |  | A
| Yankee Stadium LLC New York City Industrial Development Authority |  | 932 |  |  | BBB
| Illinois (State of) |  | 927 |  |  | BBB
| Municipal Electric Authority of Georgia |  | 909 |  |  | BBB+
| San Diego Family Housing, LLC |  | 896 |  |  | AA
| Philadelphia School District, Pennsylvania |  | 891 |  |  | A-
| Chicago Water, Illinois |  | 864 |  |  | BBB+
| Montefiore Medical Center, New York |  | 837 |  |  | BBB-
| ProMedica Healthcare Obligated Group, Ohio |  | 820 |  |  | BB-
| Metropolitan Pier and Exposition Authority, Illinois |  | 811 |  |  | BBB-
| JFK New Terminal One, New York |  | 800 |  |  | BBB-
| Dade County Seaport, Florida |  | 795 |  |  | A-
| Jefferson County Alabama Sewer |  | 784 |  |  | BBB
| Houston Airport System, Texas |  | 783 |  |  | A
| Great Lakes Water Authority (Sewerage), Michigan |  | 769 |  |  | A-
| Pittsburgh Water & Sewer, Pennsylvania |  | 766 |  |  | A-
| California (State of) |  | 757 |  |  | AA-
| Chicago Public Schools, Illinois |  | 746 |  |  | BBB-
| Wisconsin (State of) |  | 739 |  |  | A
| Tucson (City of), Arizona |  | 719 |  |  | A+
| South Carolina Public Service Authority - Santee Cooper |  | 711 |  |  | BBB
| Nassau County, New York |  | 710 |  |  | AA-
| Massachusetts (Commonwealth of) Water Resources |  | 704 |  |  | AA
| New York (City of), New York |  | 698 |  |  | AA-
| Central Florida Expressway Authority, Florida |  | 698 |  |  | A+
| Anaheim (City of), California |  | 674 |  |  | A-
| Pennsylvania Turnpike Commission |  | 670 |  |  | A-
| Clark County School District, Nevada |  | 669 |  |  | A-
| Philadelphia (City of), Pennsylvania |  | 657 |  |  | A-
| LaGuardia Gateway Partners, LLC |  | 638 |  |  | BBB-
| North Carolina Turnpike Authority |  | 638 |  |  | BBB
| Chicago (City of) Wastewater Transmission, Illinois |  | 634 |  |  | BBB+
| Puerto Rico Electric Power Authority |  | 624 |  |  | CCC
| Maine (State of) |  | 621 |  |  | A
| Pittsburgh International Airport, Pennsylvania |  | 612 |  |  | A-
| Mets Queens Ballpark |  | 607 |  |  | BBB
| Private Transaction |  | 598 |  |  | BBB-
| Westchester Medical Center |  | 580 |  |  | BBB-
| Oglethorpe Power Corporation, Georgia |  | 575 |  |  | BBB
| Chicago-O'Hare International Airport, Illinois |  | 570 |  |  | A-
| Total top 50 U.S. public finance exposures |  | $ | 45,002 |  |  |

1) Transactions rated below B- are categorized as CCC.
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
40

Assured Guaranty Ltd.
Largest Exposures by Sector (2 of 3)
As of December 31, 2023
(dollars in millions)
25 Largest U.S. Structured Finance Exposures

Credit Name: |  | Net Par Outstanding |  | Internal Rating(1)
| Private US Insurance Securitization |  | $ | 1,100 |  |  | AA
| Private US Insurance Securitization |  | 950 |  |  | A+
| Private US Insurance Securitization |  | 944 |  |  | AA-
| Private US Insurance Securitization |  | 399 |  |  | AA-
| Private US Insurance Securitization |  | 399 |  |  | AA-
| Private US Insurance Securitization |  | 386 |  |  | AA-
| SLM Student Loan Trust 2007-A |  | 163 |  |  | AA
| Private Middle Market CLO |  | 129 |  |  | AAA
| Private US Insurance Securitization |  | 125 |  |  | AA
| DB Master Finance LLC |  | 119 |  |  | BBB
| Option One 2007-FXD2 |  | 106 |  |  | CCC
| CWABS 2007-4 |  | 102 |  |  | BBB
| Private Balloon Note Guarantee |  | 100 |  |  | A
| Option One Mortgage Loan Trust 2007-Hl1 |  | 98 |  |  | CCC
| Argent Securities Inc. 2005-W4 |  | 93 |  |  | CCC
| CAPCO - Excess SIPC Excess of Loss Reinsurance |  | 63 |  |  | BBB
| Private Balloon Note Guarantee |  | 59 |  |  | BBB
| Private Other Structured Finance Transaction |  | 58 |  |  | A-
| Nomura Asset Accept. Corp. 2007-1 |  | 58 |  |  | CCC
| ALESCO Preferred Funding XIII, Ltd. |  | 53 |  |  | AAA
| CWALT Alternative Loan Trust 2007-HY9 |  | 53 |  |  | BBB+
| Alesco Preferred Funding XVI, Ltd. |  | 52 |  |  | A
| New Century 2005-A |  | 52 |  |  | CCC
| Private Balloon Note Guarantee |  | 50 |  |  | A
| ACE 2007-SL1 |  | 50 |  |  | CCC
| Total top 25 U.S. structured finance exposures |  | $ | 5,761 |  |  |

1) Transactions rated below B- are categorized as CCC.
Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
41

Assured Guaranty Ltd.
Largest Exposures by Sector (3 of 3)
As of December 31, 2023
(dollars in millions)
50 Largest Non-U.S. Exposures by Revenue Source

Credit Name: | Country |  | Net Par Outstanding |  | Internal Rating
| Southern Water Services Limited | United Kingdom |  | $ | 2,409 |  |  | BBB
| Thames Water Utilities Finance PLC | United Kingdom |  | 2,106 |  |  | BBB
| Southern Gas Networks PLC | United Kingdom |  | 2,065 |  |  | BBB+
| Dwr Cymru Financing Limited | United Kingdom |  | 1,834 |  |  | A-
| Anglian Water Services Financing PLC | United Kingdom |  | 1,732 |  |  | A-
| National Grid Gas PLC | United Kingdom |  | 1,632 |  |  | A-
| Quebec Province | Canada |  | 1,436 |  |  | AA-
| Channel Link Enterprises Finance PLC | France, United Kingdom |  | 1,257 |  |  | BBB
| Yorkshire Water Services Finance Plc | United Kingdom |  | 1,087 |  |  | BBB
| British Broadcasting Corporation (BBC) | United Kingdom |  | 1,042 |  |  | A+
| Capital Hospitals (Issuer) PLC | United Kingdom |  | 1,002 |  |  | BBB-
| Verbund, Lease and Sublease of Hydro-Electric Equipment | Austria |  | 914 |  |  | AAA
| Aspire Defence Finance plc | United Kingdom |  | 751 |  |  | BBB+
| National Grid Company PLC | United Kingdom |  | 728 |  |  | BBB+
| Verdun Participations 2 S.A.S. | France |  | 724 |  |  | BBB-
| Severn Trent Water Utilities Finance Plc | United Kingdom |  | 658 |  |  | BBB+
| Envestra Limited | Australia |  | 631 |  |  | A-
| Heathrow Funding Limited | United Kingdom |  | 599 |  |  | BBB
| Campania Region - Healthcare receivable | Italy |  | 576 |  |  | BBB-
| Wessex Water Services Finance Plc | United Kingdom |  | 570 |  |  | BBB+
| United Utilities Water PLC | United Kingdom |  | 568 |  |  | A-
| Private International Sub-Sovereign Transaction | United Kingdom |  | 556 |  |  | A+
| University of Sussex | United Kingdom |  | 536 |  |  | BBB
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | United Kingdom |  | 531 |  |  | B+
| South East Water | United Kingdom |  | 523 |  |  | BBB
| NewHospitals (St Helens & Knowsley) Finance PLC | United Kingdom |  | 517 |  |  | BBB+
| South West Water UK | United Kingdom |  | 504 |  |  | BBB+
| North Staffordshire PFI, 32-year EIB Index-Linked Facility | United Kingdom |  | 502 |  |  | BBB-
| Central Nottinghamshire Hospitals PLC | United Kingdom |  | 499 |  |  | BBB-
| Sydney Airport Finance Company | Australia |  | 475 |  |  | BBB+
| Derby Healthcare PLC | United Kingdom |  | 468 |  |  | BBB
| The Hospital Company (QAH Portsmouth) Limited | United Kingdom |  | 455 |  |  | BBB
| University of Essex, United Kingdom | United Kingdom |  | 405 |  |  | BBB+
| International Infrastructure Pool | United Kingdom |  | 378 |  |  | AAA
| International Infrastructure Pool | United Kingdom |  | 378 |  |  | AAA
| International Infrastructure Pool | United Kingdom |  | 378 |  |  | AAA
| South Lanarkshire Schools | United Kingdom |  | 370 |  |  | BBB
| Western Power Distribution (South West) PLC | United Kingdom |  | 338 |  |  | BBB+
| Catalyst Healthcare (Romford) Financing PLC | United Kingdom |  | 327 |  |  | BBB
| Comision Federal De Electricidad (CFE) El Cajon Project | Mexico |  | 325 |  |  | BBB-
| Northumbrian Water PLC | United Kingdom |  | 322 |  |  | BBB+
| Private International Sub-Sovereign Transaction | United Kingdom |  | 316 |  |  | A
| Japan Expressway Holding and Debt Repayment Agency | Japan |  | 313 |  |  | A+
| Q Energy - Phase II - Pride Investments, S.A. | Spain |  | 298 |  |  | BBB
| Hypersol Solar Inversiones, S.A.U. | Spain |  | 292 |  |  | BBB
| Sutton and East Surrey Water plc | United Kingdom |  | 291 |  |  | BBB
| Bakethin Finance Plc | United Kingdom |  | 289 |  |  | A-
| Feria Muestrario Internacional de Valencia | Spain |  | 287 |  |  | BBB-
| Western Power Distribution (South Wales) PLC | United Kingdom |  | 286 |  |  | BBB+
| Portsmouth Water, United Kingdom | United Kingdom |  | 281 |  |  | BBB
| Total top 50 non-U.S. exposures |  |  | $ | 35,761 |  |  |

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.
42

Asset Management Segment
43

Assured Guaranty Ltd.
Asset Management Segment Results
(dollars in millions)

| Three Months Ended |  | Year Ended
| December 31, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Segment revenues | $ | 5 |  |  | $ | 24 |  |  | $ | 76 |  |  | $ | 112 |
Segment expenses | 3 |  |  | 28 |  |  | 78 |  |  | 119 |
Equity in earnings (losses) of investees | 5 |  |  | — |  |  | 5 |  |  | — |
Segment adjusted operating income (loss) before income taxes | 7 |  |  | (4) |  |  | 3 |  |  | (7) |
Less: Provision (benefit) for income taxes | 1 |  |  | (1) |  |  | — |  |  | (1) |
Segment adjusted operating income (loss) | $ | 6 |  |  | $ | (3) |  |  | $ | 3 |  |  | $ | (6) |
|  |  | As of December 31, |  |  |  | As of December 31,
|  |  | 2023 |  |  |  | 2022
Assets under management (AUM) |  |  | $ | — |  |  |  |  | $ | 17,464 |

44

Corporate Division
45

Assured Guaranty Ltd.
Corporate Division Results
(dollars in millions)

| Three Months Ended |  | Year Ended
| December 31, |  | December 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Revenues |  |  |  |  |  |  |
Gain on sale of asset management subsidiaries | $ | 7 |  |  | $ | — |  |  | $ | 262 |  |  | $ | — |
Other | 5 |  |  | 1 |  |  | 13 |  |  | 4 |
Total revenues | 12 |  |  | 1 |  |  | 275 |  |  | 4 |
Expenses |  |  |  |  |  |  |
Interest expense | 26 |  |  | 23 |  |  | 99 |  |  | 89 |
Employee compensation and benefit expenses | 10 |  |  | 10 |  |  | 38 |  |  | 30 |
Other operating expenses | 15 |  |  | 6 |  |  | 79 |  |  | 24 |
Total expenses | 51 |  |  | 39 |  |  | 216 |  |  | 143 |
Adjusted operating income (loss) before income taxes | (39) |  |  | (38) |  |  | 59 |  |  | (139) |
Less: Provision (benefit) for income taxes | (23) |  |  | (2) |  |  | 14 |  |  | (5) |
Adjusted operating income (loss) | $ | (16) |  |  | $ | (36) |  |  | $ | 45 |  |  | $ | (134) |

46

Other
47

Assured Guaranty Ltd.
Other Results (1 of 2)
(dollars in millions)

| Three Months Ended December 31, 2023
| FG VIEs |  | CIVs |  | Intersegment Eliminations and Reclassifications |  | Total Other
| (in millions)
Revenues |  |  |  |  |  |  |
Net investment income | $ | (1) |  |  | $ | — |  |  | $ | (3) |  |  | $ | (4) |
Fair value gains (losses) on FG VIEs | 10 |  |  | — |  |  | — |  |  | 10 |
Fair value gains (losses) on CIVs | — |  |  | 28 |  |  | — |  |  | 28 |
Other income (loss) | (1) |  |  | — |  |  | — |  |  | (1) |
Total revenues | 8 |  |  | 28 |  |  | (3) |  |  | 33 |
Expenses |  |  |  |  |  |  |
Loss expense (benefit) | (3) |  |  | — |  |  | — |  |  | (3) |
Interest expense | — |  |  | — |  |  | (3) |  |  | (3) |
Total expenses | (3) |  |  | — |  |  | (3) |  |  | (6) |
Equity in earnings (losses) of investees | — |  |  | (24) |  |  | — |  |  | (24) |
Adjusted operating income (loss) before income taxes | 11 |  |  | 4 |  |  | — |  |  | 15 |
Less: Provision (benefit) for income taxes | 2 |  |  | 1 |  |  | — |  |  | 3 |
Less: Noncontrolling interests | — |  |  | 3 |  |  | — |  |  | 3 |
Adjusted operating income (loss) | $ | 9 |  |  | $ | — |  |  | $ | — |  |  | $ | 9 |

| Three Months Ended December 31, 2022
| FG VIEs |  | CIVs |  | Intersegment Eliminations and Reclassifications |  | Total Other
| (in millions)
Revenues |  |  |  |  |  |  |
Net investment income | $ | (1) |  |  | $ | — |  |  | $ | (2) |  |  | $ | (3) |
Asset management fees | — |  |  | (6) |  |  | 8 |  |  | 2 |
Fair value gains (losses) on FG VIEs | (5) |  |  | — |  |  | — |  |  | (5) |
Fair value gains (losses) on CIVs | — |  |  | (8) |  |  | — |  |  | (8) |
Foreign exchange gains (losses) on remeasurement | — |  |  | (3) |  |  | — |  |  | (3) |
Other income (loss) | — |  |  | (3) |  |  | — |  |  | (3) |
Total revenues | (6) |  |  | (20) |  |  | 6 |  |  | (20) |
Expenses |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | (3) |  |  | (3) |
Other operating expenses | — |  |  | (1) |  |  | 9 |  |  | 8 |
Total expenses | — |  |  | (1) |  |  | 6 |  |  | 5 |
Equity in earnings (losses) of investees | — |  |  | (3) |  |  | — |  |  | (3) |
Adjusted operating income (loss) before income taxes | (6) |  |  | (22) |  |  | — |  |  | (28) |
Less: Provision (benefit) for income taxes | (1) |  |  | (2) |  |  | — |  |  | (3) |
Less: Noncontrolling interests | — |  |  | (12) |  |  | — |  |  | (12) |
Adjusted operating income (loss) | $ | (5) |  |  | $ | (8) |  |  | $ | — |  |  | $ | (13) |

48

Assured Guaranty Ltd.
Other Results (2 of 2)
(dollars in millions)

| Year Ended December 31, 2023
| FG VIEs |  | CIVs |  | Intersegment Eliminations and Reclassifications |  | Total Other
| (in millions)
Revenues |  |  |  |  |  |  |
Net earned premiums | $ | (3) |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |
Net investment income | (3) |  |  | — |  |  | (10) |  |  | (13) |
Asset management fees | — |  |  | (25) |  |  | 14 |  |  | (11) |
Fair value gains (losses) on FG VIEs | 8 |  |  | — |  |  | — |  |  | 8 |
Fair value gains (losses) on CIVs | — |  |  | 88 |  |  | — |  |  | 88 |
Foreign exchange gains (losses) on remeasurement | — |  |  | (1) |  |  | — |  |  | (1) |
Other income (loss) | (4) |  |  | (3) |  |  | — |  |  | (7) |
Total revenues | (2) |  |  | 59 |  |  | 4 |  |  | 61 |
Expenses |  |  |  |  |  |  |
Loss expense (benefit) | 3 |  |  | — |  |  | — |  |  | 3 |
Interest expense | — |  |  | — |  |  | (10) |  |  | (10) |
Other operating expenses | — |  |  | (1) |  |  | 14 |  |  | 13 |
Total expenses | 3 |  |  | (1) |  |  | 4 |  |  | 6 |
Equity in earnings (losses) of investees | — |  |  | (59) |  |  | — |  |  | (59) |
Adjusted operating income (loss) before income taxes | (5) |  |  | 1 |  |  | — |  |  | (4) |
Less: Provision (benefit) for income taxes | (1) |  |  | (4) |  |  | — |  |  | (5) |
Less: Noncontrolling interests | — |  |  | 22 |  |  | — |  |  | 22 |
Adjusted operating income (loss) | $ | (4) |  |  | $ | (17) |  |  | $ | — |  |  | $ | (21) |

| Year Ended December 31, 2022
| FG VIEs |  | CIVs |  | Intersegment Eliminations and Reclassifications |  | Total Other
| (in millions)
Revenues |  |  |  |  |  |  |
Net earned premiums | $ | (3) |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |
Net investment income | (4) |  |  | — |  |  | (9) |  |  | (13) |
Asset management fees | — |  |  | (35) |  |  | 22 |  |  | (13) |
Fair value gains (losses) on FG VIEs | 22 |  |  | — |  |  | — |  |  | 22 |
Fair value gains (losses) on CIVs | — |  |  | 17 |  |  | — |  |  | 17 |
Foreign exchange gains (losses) on remeasurement | — |  |  | 4 |  |  | — |  |  | 4 |
Other income (loss) | (2) |  |  | 2 |  |  | — |  |  | — |
Total revenues | 13 |  |  | (12) |  |  | 13 |  |  | 14 |
Expenses |  |  |  |  |  |  |
Loss expense (benefit) | 8 |  |  | — |  |  | — |  |  | 8 |
Interest expense | — |  |  | — |  |  | (10) |  |  | (10) |
Other operating expenses | — |  |  | (2) |  |  | 23 |  |  | 21 |
Total expenses | 8 |  |  | (2) |  |  | 13 |  |  | 19 |
Equity in earnings (losses) of investees | — |  |  | 12 |  |  | — |  |  | 12 |
Adjusted operating income (loss) before income taxes | 5 |  |  | 2 |  |  | — |  |  | 7 |
Less: Provision (benefit) for income taxes | 1 |  |  | (1) |  |  | — |  |  | — |
Less: Noncontrolling interests | — |  |  | 13 |  |  | — |  |  | 13 |
Adjusted operating income (loss) | $ | 4 |  |  | $ | (10) |  |  | $ | — |  |  | $ | (6) |

49

Summary
50

Assured Guaranty Ltd.
Summary of Financial and Statistical Data
(dollars in millions, except per share amounts)

|  | Year Ended December 31,
|  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019
GAAP Summary Statements of Operations Data |  |  |  |  |  |  |  |  |  |
| Net earned premiums |  | $ | 344 |  |  | $ | 494 |  |  | $ | 414 |  |  | $ | 485 |  |  | $ | 476 |
| Net investment income |  | 365 |  |  | 269 |  |  | 269 |  |  | 297 |  |  | 378 |
| Total expenses |  | 733 |  |  | 536 |  |  | 465 |  |  | 729 |  |  | 503 |
| Income (loss) before income taxes |  | 640 |  |  | 187 |  |  | 383 |  |  | 386 |  |  | 460 |
| Net income (loss) attributable to AGL |  | 739 |  |  | 124 |  |  | 389 |  |  | 362 |  |  | 402 |
| Net income (loss) attributable to AGL per diluted share |  | 12.30 |  |  | 1.92 |  |  | 5.23 |  |  | 4.19 |  |  | 4.00 |
GAAP Summary Balance Sheet Data |  |  |  |  |  |  |  |  |  |
| Total investments and cash |  | $ | 9,212 |  |  | $ | 8,472 |  |  | $ | 9,728 |  |  | $ | 10,000 |  |  | $ | 10,409 |
| Total assets |  | 12,539 |  |  | 16,843 |  |  | 18,208 |  |  | 15,334 |  |  | 14,326 |
| Unearned premium reserve |  | 3,658 |  |  | 3,620 |  |  | 3,716 |  |  | 3,735 |  |  | 3,736 |
| Loss and LAE reserve |  | 376 |  |  | 296 |  |  | 869 |  |  | 1,088 |  |  | 1,050 |
| Long-term debt |  | 1,694 |  |  | 1,675 |  |  | 1,673 |  |  | 1,224 |  |  | 1,235 |
| Shareholders’ equity attributable to AGL |  | 5,713 |  |  | 5,064 |  |  | 6,292 |  |  | 6,643 |  |  | 6,639 |
| Shareholders’ equity attributable to AGL per share |  | 101.63 |  |  | 85.80 |  |  | 93.19 |  |  | 85.66 |  |  | 71.18 |
Other Financial Information (GAAP Basis) |  |  |  |  |  |  |  |  |  |
| Financial guaranty: |  |  |  |  |  |  |  |  |  |
| Net debt service outstanding (end of period) |  | $ | 397,636 |  |  | $ | 369,951 |  |  | $ | 367,360 |  |  | $ | 366,233 |  |  | $ | 374,130 |
| Gross debt service outstanding (end of period) |  | 398,037 |  |  | 370,172 |  |  | 367,770 |  |  | 366,692 |  |  | 375,776 |
| Net par outstanding (end of period) |  | 249,153 |  |  | 233,258 |  |  | 236,392 |  |  | 234,153 |  |  | 236,807 |
| Gross par outstanding (end of period) |  | 249,535 |  |  | 233,438 |  |  | 236,765 |  |  | 234,571 |  |  | 238,156 |
Other Financial Information (Statutory Basis) (1) |  |  |  |  |  |  |  |  |  |
| Financial guaranty: |  |  |  |  |  |  |  |  |  |
| Net debt service outstanding (end of period) |  | $ | 396,448 |  |  | $ | 366,883 |  |  | $ | 362,013 |  |  | $ | 360,392 |  |  | $ | 367,630 |
| Gross debt service outstanding (end of period) |  | 396,849 |  |  | 367,103 |  |  | 362,423 |  |  | 360,852 |  |  | 369,251 |
| Net par outstanding (end of period) |  | 247,833 |  |  | 230,294 |  |  | 231,742 |  |  | 229,008 |  |  | 230,984 |
| Gross par outstanding (end of period) |  | 248,215 |  |  | 230,474 |  |  | 232,115 |  |  | 229,426 |  |  | 232,333 |
Claims-paying resources (2) |  |  |  |  |  |  |  |  |  |
| Policyholders' surplus |  | $ | 4,807 |  |  | $ | 5,155 |  |  | $ | 5,572 |  |  | $ | 5,077 |  |  | $ | 5,056 |
| Contingency reserve |  | 1,296 |  |  | 1,202 |  |  | 1,225 |  |  | 1,557 |  |  | 1,607 |
| Qualified statutory capital |  | 6,103 |  |  | 6,357 |  |  | 6,797 |  |  | 6,634 |  |  | 6,663 |
| Unearned premium reserve and net deferred ceding commission income |  | 2,955 |  |  | 2,941 |  |  | 2,972 |  |  | 2,983 |  |  | 2,961 |
| Loss and LAE reserves |  | 145 |  |  | 165 |  |  | 167 |  |  | 202 |  |  | 529 |
| Total policyholders' surplus and reserves |  | 9,203 |  |  | 9,463 |  |  | 9,936 |  |  | 9,819 |  |  | 10,153 |
| Present value of installment premium |  | 1,062 |  |  | 955 |  |  | 883 |  |  | 858 |  |  | 804 |
| CCS and standby line of credit |  | 400 |  |  | 400 |  |  | 400 |  |  | 400 |  |  | 400 |
| Total claims-paying resources |  | $ | 10,665 |  |  | $ | 10,818 |  |  | $ | 11,219 |  |  | $ | 11,077 |  |  | $ | 11,357 |
| Ratios: |  |  |  |  |  |  |  |  |  |
|  | Net exposure to qualified statutory capital |  | 41 | :1 |  | 36 | :1 |  | 34 | :1 |  | 35 | :1 |  | 35 | :1
|  | Capital ratio |  | 66 | :1 |  | 58 | :1 |  | 53 | :1 |  | 54 | :1 |  | 55 | :1
|  | Financial resources ratio |  | 37 | :1 |  | 34 | :1 |  | 32 | :1 |  | 33 | :1 |  | 32 | :1
|  | Adjusted statutory net exposure to claims-paying resources |  | 24 | :1 |  | 21 | :1 |  | 21 | :1 |  | 21 | :1 |  | 20 | :1
Par and Debt Service Written (Financial Guaranty and Specialty) |  |  |  |  |  |  |  |  |  |
| Gross debt service written: |  |  |  |  |  |  |  |  |  |
|  | Public finance - U.S. |  | $ | 41,902 |  |  | $ | 36,954 |  |  | $ | 35,572 |  |  | $ | 33,596 |  |  | $ | 28,054 |
|  | Public finance - non-U.S. |  | 3,286 |  |  | 756 |  |  | 1,890 |  |  | 1,860 |  |  | 17,907 |
|  | Structured finance - U.S. |  | 2,130 |  |  | 1,120 |  |  | 1,319 |  |  | 508 |  |  | 1,704 |
|  | Structured finance - non-U.S. |  | 3,084 |  |  | 551 |  |  | 431 |  |  | 254 |  |  | 88 |
| Total gross debt service written |  | $ | 50,402 |  |  | $ | 39,381 |  |  | $ | 39,212 |  |  | $ | 36,218 |  |  | $ | 47,753 |
| Net debt service written |  | $ | 50,402 |  |  | $ | 39,381 |  |  | $ | 39,212 |  |  | $ | 35,965 |  |  | $ | 47,731 |
| Net par written |  | 28,960 |  |  | 22,047 |  |  | 26,656 |  |  | 23,012 |  |  | 24,331 |
| Gross par written |  | 28,960 |  |  | 22,047 |  |  | 26,656 |  |  | 23,265 |  |  | 24,353 |

1) Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.
2) See page 19 for additional detail on claims-paying resources.
Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.
51

Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations(1) (1 of 2)
(dollars in millions, except per share amounts)

|  | Year Ended December 31,
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019
Total GWP |  | $ | 357 |  |  | $ | 360 |  |  | $ | 377 |  |  | $ | 454 |  |  | $ | 677 |
Less: Installment GWP and other GAAP adjustments (2) |  | 247 |  |  | 145 |  |  | 158 |  |  | 191 |  |  | 469 |
Upfront GWP |  | 110 |  |  | 215 |  |  | 219 |  |  | 263 |  |  | 208 |
Plus: Installment premiums and other(3) |  | 294 |  |  | 160 |  |  | 142 |  |  | 127 |  |  | 361 |
Total PVP |  | $ | 404 |  |  | $ | 375 |  |  | $ | 361 |  |  | $ | 390 |  |  | $ | 569 |
PVP: |  |  |  |  |  |  |  |  |  |
Public finance - U.S. |  | $ | 212 |  |  | $ | 257 |  |  | $ | 235 |  |  | $ | 292 |  |  | $ | 201 |
Public finance - non-U.S. |  | 83 |  |  | 68 |  |  | 79 |  |  | 82 |  |  | 308 |
Structured finance - U.S. |  | 68 |  |  | 43 |  |  | 42 |  |  | 14 |  |  | 53 |
Structured finance - non-U.S. |  | 41 |  |  | 7 |  |  | 5 |  |  | 2 |  |  | 7 |
Total PVP |  | $ | 404 |  |  | $ | 375 |  |  | $ | 361 |  |  | $ | 390 |  |  | $ | 569 |
Adjusted operating income reconciliation: |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to AGL |  | $ | 739 |  |  | $ | 124 |  |  | $ | 389 |  |  | $ | 362 |  |  | $ | 402 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments |  | (14) |  |  | (56) |  |  | 15 |  |  | 18 |  |  | 22 |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | 106 |  |  | (18) |  |  | (64) |  |  | 65 |  |  | (10) |
Fair value gains (losses) on CCS |  | (35) |  |  | 24 |  |  | (28) |  |  | (1) |  |  | (22) |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves |  | 51 |  |  | (110) |  |  | (21) |  |  | 42 |  |  | 22 |
Total pre-tax adjustments |  | 108 |  |  | (160) |  |  | (98) |  |  | 124 |  |  | 12 |
Less tax effect on pre-tax adjustments |  | (17) |  |  | 17 |  |  | 17 |  |  | (18) |  |  | (1) |
Adjusted operating income (loss) |  | $ | 648 |  |  | $ | 267 |  |  | $ | 470 |  |  | $ | 256 |  |  | $ | 391 |
Adjusted operating income per diluted share reconciliation: |  |  |  |  |  |  |  |  |  |
Net income (loss) attributable to AGL per diluted share |  | $ | 12.30 |  |  | $ | 1.92 |  |  | $ | 5.23 |  |  | $ | 4.19 |  |  | $ | 4.00 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Realized gains (losses) on investments |  | (0.23) |  |  | (0.87) |  |  | 0.20 |  |  | 0.21 |  |  | 0.22 |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | 1.75 |  |  | (0.27) |  |  | (0.85) |  |  | 0.75 |  |  | (0.11) |
Fair value gains (losses) on CCS |  | (0.57) |  |  | 0.37 |  |  | (0.38) |  |  | (0.01) |  |  | (0.22) |
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves |  | 0.84 |  |  | (1.72) |  |  | (0.29) |  |  | 0.49 |  |  | 0.21 |
Total pre-tax adjustments |  | 1.79 |  |  | (2.49) |  |  | (1.32) |  |  | 1.44 |  |  | 0.10 |
Tax effect on pre-tax adjustments |  | (0.27) |  |  | 0.27 |  |  | 0.23 |  |  | (0.22) |  |  | (0.01) |
Adjusted operating income (loss) per diluted share |  | $ | 10.78 |  |  | $ | 4.14 |  |  | $ | 6.32 |  |  | $ | 2.97 |  |  | $ | 3.91 |

1) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
2) Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.
3) Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The years 2023 and 2022 also include the present value of future premiums and fees associated with other guaranties written by the Company that, under GAAP, are accounted for under Accounting Standards Codification (ASC) 460, Guarantees.
52

Assured Guaranty Ltd.
Summary of GAAP to Non-GAAP Reconciliations (1) (2 of 2)
(dollars in millions, except per share amounts)

|  | As of December 31,
| 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019
Adjusted book value reconciliation: |  |  |  |  |  |  |  |  |  |
Shareholders’ equity attributable to AGL |  | $ | 5,713 |  |  | $ | 5,064 |  |  | $ | 6,292 |  |  | $ | 6,643 |  |  | $ | 6,639 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | 34 |  |  | (71) |  |  | (54) |  |  | 9 |  |  | (56) |
Fair value gains (losses) on CCS |  | 13 |  |  | 47 |  |  | 23 |  |  | 52 |  |  | 52 |
Unrealized gain (loss) on investment portfolio |  | (361) |  |  | (523) |  |  | 404 |  |  | 611 |  |  | 486 |
Less taxes |  | 37 |  |  | 68 |  |  | (72) |  |  | (116) |  |  | (89) |
Adjusted operating shareholders’ equity |  | 5,990 |  |  | 5,543 |  |  | 5,991 |  |  | 6,087 |  |  | 6,246 |
Pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Less: Deferred acquisition costs |  | 161 |  |  | 147 |  |  | 131 |  |  | 119 |  |  | 111 |
Plus: Net present value of estimated net future revenue |  | 199 |  |  | 157 |  |  | 160 |  |  | 182 |  |  | 206 |
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed |  | 3,436 |  |  | 3,428 |  |  | 3,402 |  |  | 3,355 |  |  | 3,296 |
Plus taxes |  | (699) |  |  | (602) |  |  | (599) |  |  | (597) |  |  | (590) |
Adjusted book value |  | $ | 8,765 |  |  | $ | 8,379 |  |  | $ | 8,823 |  |  | $ | 8,908 |  |  | $ | 9,047 |
Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |  |  |  |  |
Adjusted operating shareholders’ equity (net of tax (provision) benefit of $(1), $(4), $(5), $- and $(2)) |  | $ | 5 |  |  | $ | 17 |  |  | $ | 32 |  |  | $ | 2 |  |  | $ | 7 |
Adjusted book value (net of tax (provision) benefit of $0, $(3), $(3), $2 and $1) |  | $ | — |  |  | $ | 11 |  |  | $ | 23 |  |  | $ | (8) |  |  | $ | (4) |
Adjusted book value per share reconciliation: |  |  |  |  |  |  |  |  |  |
Shareholders’ equity attributable to AGL per share |  | $ | 101.63 |  |  | $ | 85.80 |  |  | $ | 93.19 |  |  | $ | 85.66 |  |  | $ | 71.18 |
Less pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives |  | 0.61 |  |  | (1.21) |  |  | (0.80) |  |  | 0.12 |  |  | (0.60) |
Fair value gains (losses) on CCS |  | 0.22 |  |  | 0.80 |  |  | 0.34 |  |  | 0.66 |  |  | 0.56 |
Unrealized gain (loss) on investment portfolio |  | (6.40) |  |  | (8.86) |  |  | 5.99 |  |  | 7.89 |  |  | 5.21 |
Less taxes |  | 0.66 |  |  | 1.15 |  |  | (1.07) |  |  | (1.50) |  |  | (0.95) |
Adjusted operating shareholders’ equity per share |  | 106.54 |  |  | 93.92 |  |  | 88.73 |  |  | 78.49 |  |  | 66.96 |
Pre-tax adjustments: |  |  |  |  |  |  |  |  |  |
Less: Deferred acquisition costs |  | 2.87 |  |  | 2.48 |  |  | 1.95 |  |  | 1.54 |  |  | 1.19 |
Plus: Net present value of estimated net future revenue |  | 3.54 |  |  | 2.66 |  |  | 2.37 |  |  | 2.35 |  |  | 2.20 |
Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed |  | 61.12 |  |  | 58.10 |  |  | 50.40 |  |  | 43.27 |  |  | 35.34 |
Plus taxes |  | (12.41) |  |  | (10.22) |  |  | (8.88) |  |  | (7.70) |  |  | (6.32) |
Adjusted book value per share |  | $ | 155.92 |  |  | $ | 141.98 |  |  | $ | 130.67 |  |  | $ | 114.87 |  |  | $ | 96.99 |
Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |  |  |  |  |
Adjusted operating shareholders' equity per share |  | $ | 0.07 |  |  | $ | 0.28 |  |  | $ | 0.47 |  |  | $ | 0.03 |  |  | $ | 0.07 |
Adjusted book value per share |  | $ | — |  |  | $ | 0.19 |  |  | $ | 0.34 |  |  | $ | (0.10) |  |  | $ | (0.05) |

1) See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.
53

Glossary
Financial Guaranty Insurance
Net Par Outstanding and Internal Ratings
Net Par Outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.
Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.
Statutory Net Par and Net Debt Service Outstanding. Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).
Performance Indicators
The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:
60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.
Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’s exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.
Sectors
Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2023.
U.S. Public Finance:
General Obligation Bonds are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.
Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.
Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.
Transportation Bonds include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.
Healthcare Bonds are obligations of healthcare facilities, including community based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.
Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.
54

Glossary (continued)
Sectors (continued)
Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.
Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.
Investor-Owned Utility Bonds are obligations primarily issued by investor-owned utilities, and include first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, as well as sale-leaseback obligation bonds supported by such entities.
Renewable Energy Bonds are obligations backed by revenue from renewable energy sources.
Other Public Finance Bonds include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, and obligations of some not-for-profit organizations.
Non-U.S. Public Finance:
Regulated Utility Obligations are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities’ customers. The majority of the Company’s non-U.S. regulated utility business is conducted in the U.K.
Infrastructure Finance Obligations are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodations, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company’s non-U.S. infrastructure business is conducted in the U.K.
Sovereign and Sub-Sovereign Obligations primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.
Renewable Energy Bonds are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company’s non-U.S. renewable energy business is conducted in Spain.
Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.
Structured Finance:
Insurance Securitizations are transactions, including life insurance transactions, where obligations are secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.
Residential Mortgage-Backed Securities (RMBS) are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including “prime,” “subprime” and “Alt-A.” A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008.
Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in “tranches,” with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.
Subscription Finance Facilities are lending facilities provided to closed-end private market funds, most frequently private-equity funds. The facilities are secured by the uncalled capital commitments of the limited partners (LP) to the fund. The Company may guarantee new or existing facilities and on a single facility or portfolio basis. Assured Guaranty’s exposures are generally to facilities with characteristics that include a high-quality fund sponsor with strong historical performance, diverse LP base composed primarily of institutional LPs and experienced bank lenders.
55

Glossary (continued)
Sectors (continued)
Financial Products Business is the guaranteed investment contracts (GICs) portion of a line of business previously conducted by Assured Guaranty Municipal Holdings Inc. (AGMH) that the Company did not acquire when it purchased AGMH in 2009 from Dexia SA and that is being run off. That line of business consisted of AGMH’s GIC business, its medium term notes business and the equity payment agreements associated with AGMH’s leveraged lease business. Although Dexia SA and certain of its affiliates (Dexia) assumed the liabilities related to such businesses when the Company purchased AGMH, AGM policies related to such businesses remained outstanding. Assured Guaranty is indemnified by Dexia against loss from the former financial products business.
Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables.
Other Structured Finance Obligations are obligations backed by assets not generally described in any of the other U.S. and Non-U.S. Structured Finance Obligations categories above.
Specialty Business
The Company also guarantees specialty business with similar risk profiles to its structured finance exposures written in financial guaranty form. Specialty business includes, for example, excess-of-loss guarantees of minimum amount of billed rent on diversified portfolios of real estate properties, insurance securitizations and aircraft residual value insurance (RVI) transactions.
56

Non-GAAP Financial Measures
The Company discloses both: (i) financial measures determined in accordance with GAAP; and (ii) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.
The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty’s financial results.
GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include:
•FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and
•CIVs in which certain subsidiaries invest.
The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty’s financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.
Management of the Company and AGL’s Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company’s results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (1) adjusted operating income, further adjusted to remove the effect of FG VIE and CIV consolidation; (2) adjusted operating shareholders’ equity, further adjusted to remove the effect of FG VIE and CIV consolidation; (3) adjusted book value per share, further adjusted to remove the effect of FG VIE and CIV consolidation; and (4) PVP.
Management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or adjusted book value, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares. Management also believes that many of the Company’s fixed income investors also use adjusted operating shareholders’ equity, further adjusted to remove the effect of FG VIE and CIV consolidation, to evaluate the Company’s capital adequacy.
Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.
The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented within this financial supplement.
Adjusted Operating Income: Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of realized gains (losses) on the Company’s investments, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile.
2) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company’s credit spreads, and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of fair value gains (losses) on the Company’s CCS that are recognized in net income. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
57

Non-GAAP Financial Measures (continued)
4) Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.
5) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Adjusted Operating Shareholders’ Equity and Adjusted Book Value: Management believes that adjusted operating shareholders’ equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.
Adjusted operating shareholders’ equity is defined as shareholders’ equity attributable to AGL, as reported under GAAP, adjusted for the following:
1) Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
2) Elimination of fair value gains (losses) on the Company’s CCS. Such amounts are affected by changes in market interest rates, the Company’s credit spreads, price indications on the Company’s publicly traded debt and other market factors and are not expected to result in an economic gain or loss.
3) Elimination of unrealized gains (losses) on the Company’s investments that are recorded as a component of accumulated other comprehensive income (AOCI). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not recognize an economic gain or loss.
4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
Management uses adjusted book value, further adjusted to remove the effect of FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. Adjusted book value per share, further adjusted for FG VIE and CIV consolidation (core adjusted book value), is one of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors. Management believes that adjusted book value is a useful measure because it enables an evaluation of the Company’s in-force premiums and revenues net of expected losses. Adjusted book value is adjusted operating shareholders’ equity, as defined above, further adjusted for the following:
1) Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.
2) Addition of the net present value of estimated net future revenue. See below.
3) Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed, which are not reflected in GAAP equity.
4) Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.
The unearned premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.
58

Non-GAAP Financial Measures (continued)
Adjusted Operating Return on Equity (Adjusted Operating ROE): Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders’ equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL’s share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.
Net Present Value of Estimated Net Future Revenue: Management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts. This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.
PVP or Present Value of New Business Production: Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP gross written premiums and changes in fair value of credit derivatives do not adequately measure. PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.
Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities. The discount rate is recalculated annually and updated as necessary. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.
Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.
59

Assured Guaranty Ltd.
30 Woodbourne Avenue
Hamilton HM 08
Bermuda
(441) 279-5705
www.assuredguaranty.com
Contacts:
Equity and Fixed Income Investors:
Robert Tucker
Senior Managing Director, Investor Relations and Corporate Communications
(212) 339-0861
rtucker@agltd.com
Michael Walker
Managing Director, Fixed Income Investor Relations
(212) 261-5575
mwalker@agltd.com
Andre Thomas
Managing Director, Equity Investor Relations
(212) 339-3551
athomas@agltd.com
Media:
Ashweeta Durani
Vice President, Media Relations
(212) 408-6042
adurani@agltd.com