Assured Guaranty, a financial guaranty insurer, has reported a net income of $81 million for the first quarter of 2023.
The income figure represented an improvement on the $66 million the company recorded in the same period last year.
Moreover, Assured Guaranty’s insurance segment’s adjusted operating income was $117 million for Q123, compared to Q122’s $133 million.
The insurance segments net earned premiums and credit derivative revenues in Q1 were lower than last year’s prior quarter primarily due to lower accelerations. The largest component of accelerations in Q122 was attributable to the March 2022 Puerto Rico Resolutions, which extinguished $1.3 billion of Puerto Rico insured net par.
Additionally, the insurance segment’s gross written premiums (GWP) for Q1 were $86 million.
Dominic Frederico, President and CEO, commented on the company’s results: “Assured Guaranty’s diversified financial guaranty strategy led to impressive new business production in the first quarter of 2023. Gross written premium of $86 million was 23% higher than in the first quarter of 2022 and 59% higher than the average for the previous 10 first quarters. In terms of PVP, it was our most successful first quarter in over a decade. We closed $112 million of PVP in the quarter, up 62% from first quarter 2022 and approximately double the PVP average for the previous 10 first quarters.”
He continued: “We benefited from a strong start to the year for both global structured finance, where we achieved our best GWP and PVP results in more than a decade, and international infrastructure, where we more than doubled the first quarter 2022 results for both GWP and PVP. In U.S. public finance, we guaranteed 60% of insured municipal bonds’ par issued in the first quarter.
“And, significantly, on April 5, we reached an agreement with Sound Point Capital Management that, when implemented, is expected to advance our strategic objectives in the asset management sector.”
