Bermuda's Assured Guaranty Q1 net income falls, gross written premiums double

Assured Guaranty

07/05/2026 22:12

Overview

Bermuda-based financial guaranty insurer's Q1 net income and adjusted operating income declined yr/yr

Gross written premiums doubled yr/yr, driven by increased new business production

Company returned $93 mln to shareholders via share repurchases and dividends in Q1

Outlook

Company plans to reduce share repurchases to $30 mln over the next three months

Result Drivers

NEW BUSINESS PRODUCTION - Co said gross written premiums and present value of new business production nearly doubled yr/yr, with increased production in U.S. public finance, non-U.S. public finance and global structured finance

U.S. PUBLIC FINANCE TRANSACTIONS - Co attributed higher U.S. public finance premiums to healthcare and infrastructure finance transactions

ASSET MANAGEMENT IMPACT - Asset management segment contributed $44 mln to adjusted operating income, including carried interest payout

LITIGATION AND INVESTMENT CHANGES - Adjusted operating income declined yr/yr due to absence of prior yr litigation gain and lower CLO investment earnings

LOWER LOSS EXPENSE - Loss expense in public finance sector declined, mainly due to reduced exposure to Puerto Rico Electric Power Authority and certain healthcare exposures

Company press release: ID:nBwb4D85Pa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Gross Written Premiums
$70 mln
Q1 EPS
$1.91
Q1 Net Investment Income
$88 mln
Q1 Adjusted EBIT
$115 mln


Analyst Coverage

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

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

Wall Street's median 12-month price target for Assured Guaranty Ltd is $103.00, about 25.6% above its May 6 closing price of $82.01

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

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)