Assured Guaranty Reports $103 Million Net Income in Q2 2025, Driven by Foreign Exchange Gains

Assured Guaranty Ltd. reported its financial results for the second quarter and first half of 2025, showing a net income attributable to the company of $103 million, or $2.08 per diluted share, compared to $78 million, or $1.41 per diluted share, in the same period last year. For the six months ended June 30, 2025, net income was $279 million, up from $187 million in the prior year. The increase in profitability was primarily driven by foreign exchange gains of $79 million in the second quarter and $116 million in the first half, alongside a significant fair value gain of $103 million related to the resolution of litigation with Lehman Brothers International (Europe).

Total revenues for the second quarter reached $281 million, a 39% increase from $202 million in the same quarter of 2024. This growth was attributed to higher net investment income, which rose to $89 million from $81 million year-over-year, and foreign exchange gains. However, net earned premiums decreased to $89 million from $84 million in the prior year, reflecting lower refundings of financial guaranty insurance exposures. For the first half of 2025, total revenues were $626 million, compared to $447 million in the same period of 2024.

In terms of operational developments, Assured Guaranty has continued to expand its insurance business, reporting gross written premiums of $85 million in the second quarter, down from $132 million in the same quarter of 2024. The company has also made strategic moves, including the merger of its U.S. insurance subsidiaries, which is expected to enhance its operational efficiency and capital structure. As of June 30, 2025, the company had a total of $12.1 billion in assets, up from $11.9 billion at the end of 2024, with total liabilities increasing slightly to $6.4 billion from $6.3 billion.

The company’s insurance segment reported adjusted operating income of $76 million for the second quarter, down from $116 million in the same period last year, primarily due to higher loss expenses in both U.S. and non-U.S. public finance sectors. The asset management segment contributed $4 million in adjusted operating income, a notable increase from a loss in the previous year. Assured Guaranty’s total shareholders’ equity attributable to the company increased to $5.6 billion as of June 30, 2025, compared to $5.5 billion at the end of 2024.

Looking ahead, Assured Guaranty remains focused on expanding its insurance portfolio and enhancing its investment strategies, particularly through its partnership with Sound Point Capital Management. The company anticipates that ongoing market volatility and economic conditions will continue to influence its operations and financial performance. The management has expressed confidence in the company’s ability to navigate these challenges while pursuing growth opportunities in both the insurance and asset management sectors.