ASSURED GUARANTY LTDAGO

ASSURED GUARANTY LTD Earnings Per Share Disclosure

10-KFiled Feb 27, 20262 min read
Earnings Per Share
 
Accounting Policy

The Company computes earnings per share (EPS) using the two-class method, which is an earnings allocation formula that determines EPS for: (i) each class of common shares (the Company has a single class of common shares); and (ii) participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Awards and share units under the AGS SERP with non-forfeitable dividends are considered participating securities.

Basic EPS is computed by dividing net income (loss) available to common shareholders of Assured Guaranty by the weighted average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock, restricted stock units, stock options and other potentially dilutive financial instruments (dilutive securities) only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of: (1) the treasury stock method; or (2) the two-class method assuming nonvested shares are not converted into common shares.
Computation of Earnings Per Share 
 Year Ended December 31,
 202520242023
 (in millions, except per share amounts)
Basic EPS:
Net income (loss) attributable to AGL$503 $376 $739 
Less: Distributed and undistributed income (loss) available to nonvested shareholders4 3 6 
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic$499 $373 733 
Basic shares48.1 53.3 58.4 
Basic EPS$10.39 $7.01 $12.54 
Diluted EPS:
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic$499 $373 $733 
Plus: Re-allocation of undistributed income (loss) available to nonvested shareholders of AGL and subsidiaries— — — 
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, diluted$499 $373 $733 
Basic shares48.1 53.3 58.4 
Dilutive securities:
Restricted stock awards0.6 1.0 1.2 
Diluted shares48.7 54.3 59.6 
Diluted EPS$10.26 $6.87 $12.30 
Potentially dilutive securities excluded from computation of EPS because of antidilutive effect0.1 0.1 0.1 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 28, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Mar 1, 2019
2017Feb 23, 2018
2016Feb 24, 2017
2015Feb 26, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

Income TaxesRevenueFair ValueGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance