ASSURED GUARANTY LTDAGO
ASSURED GUARANTY LTD Segments Disclosure
Segment Information
The Company reports its results of operations in two segments: Insurance and Asset Management. The Company separately reports the results of its Corporate division and the effects of consolidating FG VIEs and CIVs. This presentation is consistent with the manner in which the Chief Executive Officer and President, the chief operating decision maker (CODM), reviews the business to assess performance and allocate resources. The CODM predominantly uses adjusted operating income to allocate resources for each segment in the annual budget and forecasting process and to assess the performance for each segment.
The Company analyzes the operating performance of each segment using “segment adjusted operating income (loss).” Results for each segment and division include specifically identifiable expenses as well as intersegment expense allocations, as applicable, based on time studies and other cost allocation methodologies based on headcount or other metrics. Segment adjusted operating income is defined as “net income (loss) attributable to AGL,” adjusted for the following items, which primarily affect the Insurance segment and Corporate division:
•Elimination of realized gains (losses) on the Company’s investments, except for gains and losses on securities classified as trading.
•Elimination of non-credit impairment-related 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.
•Elimination of fair value gains (losses) on the Company’s committed capital securities (CCS) that are recognized in net income.
•Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and loss adjustment expense (LAE) reserves that are recognized in net income.
•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.
In addition to the adjustments listed above, segment adjusted operating income (loss) differs from GAAP in other respects. The Insurance segment includes: (i) premiums and losses from the financial guaranty insurance policies issued by AG that guarantee FG VIE debt; and (ii) the insurance subsidiaries’ share of earnings from all their investments in funds managed by Sound Point and AHP funds (prior to July 1, 2023, AssuredIM) in “equity in earnings (losses) of investees.” Under GAAP, (i) FG VIEs are consolidated by AG and the premiums and losses/recoveries associated with the financial guaranty policies in respect of the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”); and (ii) certain investments in funds managed by Sound Point (prior to July 1, 2023, AssuredIM) and AHP funds are, or were in prior periods, accounted for as CIVs (in the reconciliation tables below, the CIVs and related eliminations of the Insurance segment’s “equity in earnings (losses) of investees” associated with the Company’s ownership interest in CIVs are presented in “other”). Until July 1, 2023, under GAAP, reimbursable fund expenses were shown as a component of “asset management fees” and included in total revenues, whereas in the Asset Management segment in the tables below these expenses were netted in “segment expenses.”
The Company does not report assets by reportable segment as the CODM does not assess performance or allocate resources based on assets.
The Insurance segment primarily consists of the adjusted operating income (loss) of the Company’s insurance subsidiaries and AG Asset Strategies LLC (AGAS). See Note 7. Investments and Cash. The Asset Management segment includes the results of the Company’s equity method ownership interest in Sound Point and other asset management-related incentive fees.
Prior to July 1, 2023, the Asset Management segment consisted of the adjusted operating income (loss) of AssuredIM. Since July 2023, the Company participates in the asset management business through its ownership interest in Sound Point as described in Note 1. Business and Basis of Presentation. Beginning in the third quarter of 2023, the Asset Management segment primarily includes the results of the Company’s equity method ownership interest in Sound Point.
The Corporate division primarily consists of: (i) interest expense and any losses on the extinguishment of the U.S. Holding Companies’ debt; (ii) other corporate operating expenses of AGL and the U.S. Holding Companies; (iii) beginning in the third quarter of 2024, equity in earnings from certain alternative investments that were transferred from AG to AGMH as part of a stock redemption; (iv) beginning in the fourth quarter of 2025, a portion of the equity in earnings of AHP managed funds that were transferred from AG to AGMH as a part of a stock redemption; and (v) gains and losses associated with certain corporate development or other strategic initiatives. The Corporate division also included the gain, net of transaction expenses, associated with the Sound Point Transaction and the AHP Transaction in 2023.
The Other category in the tables below primarily includes the effect of consolidating FG VIEs, CIVs and intersegment eliminations and, prior to July 1, 2023, the reclassification of reimbursable fund expenses. See Note 8. Variable Interest Entities.
The following table presents information for the Company’s operating segments. Intersegment revenues include transactions between and among the segments, the Corporate division and the Other category.
Segment Information
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 (4) | ||||||||||||||||||||||||||||||||||||
| Insurance (1) | Asset Management | Insurance | Asset Management | Insurance | Asset Management | |||||||||||||||||||||||||||||||||
| (in millions) | ||||||||||||||||||||||||||||||||||||||
| Third-party revenues | $ | 861 | $ | 24 | $ | 811 | $ | 8 | $ | 845 | $ | 49 | ||||||||||||||||||||||||||
| Intersegment revenues | 9 | 5 | 10 | 2 | 10 | 27 | ||||||||||||||||||||||||||||||||
| Segment revenues | 870 | 29 | 821 | 10 | 855 | 76 | ||||||||||||||||||||||||||||||||
| Segment loss and LAE (benefit) | (8) | — | (18) | — | 161 | — | ||||||||||||||||||||||||||||||||
| Segment employee compensation and benefit expenses | 182 | — | 170 | — | 154 | 59 | ||||||||||||||||||||||||||||||||
| Segment amortization of deferred acquisition costs (DAC) | 22 | — | 20 | — | 13 | — | ||||||||||||||||||||||||||||||||
| Other segment items (2) | 125 | 17 | 117 | 6 | 107 | 19 | ||||||||||||||||||||||||||||||||
| Segment expenses | 321 | 17 | 289 | 6 | 435 | 78 | ||||||||||||||||||||||||||||||||
| Segment equity in earnings (losses) of investees | 63 | 14 | 102 | 2 | 82 | 5 | ||||||||||||||||||||||||||||||||
| Less: Segment provision (benefit) for income taxes | 104 | 6 | 109 | 1 | (119) | — | ||||||||||||||||||||||||||||||||
| Segment adjusted operating income (loss) | $ | 508 | $ | 20 | $ | 525 | $ | 5 | $ | 621 | $ | 3 | ||||||||||||||||||||||||||
| Selected components of segment adjusted operating income: | ||||||||||||||||||||||||||||||||||||||
| Net investment income | $ | 358 | $ | — | $ | 339 | $ | — | $ | 370 | $ | — | ||||||||||||||||||||||||||
| Non-cash compensation and operating expenses (3) | 65 | — | 60 | — | 38 | 8 | ||||||||||||||||||||||||||||||||
_____________________
(1) 2025 results include the gain recognized in connection with the Lehman Brothers International (Europe) (in administration) (LBIE) litigation, which represents the full satisfaction of the judgment the Company was awarded and its claims for attorneys’ fees, expenses and interest. See Note 6. Contracts Accounted for as Credit Derivatives, for additional information.
(2) Other segment items for the Insurance segment include professional services expenses, maintenance, depreciation expense, lease expense, investment management expenses and certain overhead expenses; and for the Asset Management segment include expenses associated with incentive fees.
(3) Amounts consist of depreciation, amortization and share-based compensation (see Note 12. Employee Benefit Plans) and the write-off of long-lived intangible assets related to Assured Guaranty Municipal Corp. (AGM) licenses in 2024.
(4) In 2023, the Corporate division had revenues of $275 million primarily consisting of a gain on the Sound Point and AHP transactions. Expenses for the Corporate division consisted of $99 million of interest expense, $38 million of employee compensation and benefit expenses and $79 million of other expenses.
The tables below present a reconciliation of significant components of segment information to the comparable consolidated amounts.
Reconciliation of Segment Information to Consolidated Information
Year Ended December 31, 2025
| Less: | Net Income (Loss) Attributable to AGL | ||||||||||||||||||||||||||||||||||
| Revenues | Expenses | Equity in Earnings (Losses) of Investees | Provision (Benefit) for Income Taxes | Noncontrolling Interest (NCI) | |||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||||||||
| Insurance | $ | 870 | $ | 321 | $ | 63 | $ | 104 | $ | — | $ | 508 | |||||||||||||||||||||||
| Asset Management | 29 | 17 | 14 | 6 | — | 20 | |||||||||||||||||||||||||||||
| Total segments | 899 | 338 | 77 | 110 | — | 528 | |||||||||||||||||||||||||||||
| Corporate division | 14 | 157 | 48 | (6) | — | (89) | |||||||||||||||||||||||||||||
| Other | 63 | (8) | (23) | 2 | 40 | 6 | |||||||||||||||||||||||||||||
| Subtotal | 976 | 487 | 102 | 106 | 40 | 445 | |||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (40) | — | — | — | — | (40) | |||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 69 | 63 | — | — | — | 6 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | 20 | — | — | — | — | 20 | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 85 | — | — | — | — | 85 | |||||||||||||||||||||||||||||
| Tax effect | — | — | — | 13 | — | (13) | |||||||||||||||||||||||||||||
| Consolidated | $ | 1,110 | $ | 550 | $ | 102 | $ | 119 | $ | 40 | $ | 503 | |||||||||||||||||||||||
Reconciliation of Segment Information to Consolidated Information
Year Ended December 31, 2024
| Less: | Net Income (Loss) Attributable to AGL | ||||||||||||||||||||||||||||||||||
| Revenues | Expenses | Equity in Earnings (Losses) of Investees | Provision (Benefit) for Income Taxes | NCI | |||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||||||||
| Insurance | $ | 821 | $ | 289 | $ | 102 | $ | 109 | $ | — | $ | 525 | |||||||||||||||||||||||
| Asset Management | 10 | 6 | 2 | 1 | — | 5 | |||||||||||||||||||||||||||||
| Total segments | 831 | 295 | 104 | 110 | — | 530 | |||||||||||||||||||||||||||||
| Corporate division | 17 | 169 | 5 | (12) | — | (135) | |||||||||||||||||||||||||||||
| Other | 38 | (17) | (47) | (2) | 16 | (6) | |||||||||||||||||||||||||||||
| Subtotal | 886 | 447 | 62 | 96 | 16 | 389 | |||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | 9 | — | — | — | — | 9 | |||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 13 | (1) | — | — | — | 14 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | (10) | — | — | — | — | (10) | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (26) | — | — | — | — | (26) | |||||||||||||||||||||||||||||
| Tax effect | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Consolidated | $ | 872 | $ | 446 | $ | 62 | $ | 96 | $ | 16 | $ | 376 | |||||||||||||||||||||||
Reconciliation of Segment Information to Consolidated Information
Year Ended December 31, 2023
| Less: | Net Income (Loss) Attributable to AGL | ||||||||||||||||||||||||||||||||||
| Revenues | Expenses | Equity in Earnings (Losses) of Investees | Provision (Benefit) for Income Taxes (1) | NCI | |||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||||||||
| Insurance | $ | 855 | $ | 435 | $ | 82 | $ | (119) | $ | — | $ | 621 | |||||||||||||||||||||||
| Asset Management | 76 | 78 | 5 | — | — | 3 | |||||||||||||||||||||||||||||
| Total segments | 931 | 513 | 87 | (119) | — | 624 | |||||||||||||||||||||||||||||
| Corporate division | 275 | 216 | — | 14 | — | 45 | |||||||||||||||||||||||||||||
| Other | 61 | 6 | (59) | (5) | 22 | (21) | |||||||||||||||||||||||||||||
| Subtotal | 1,267 | 735 | 28 | (110) | 22 | 648 | |||||||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||||||||
| Realized gains (losses) on investments | (14) | — | — | — | — | (14) | |||||||||||||||||||||||||||||
| Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 104 | (2) | — | — | — | 106 | |||||||||||||||||||||||||||||
| Fair value gains (losses) on CCS | (35) | — | — | — | — | (35) | |||||||||||||||||||||||||||||
| Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 51 | — | — | — | — | 51 | |||||||||||||||||||||||||||||
| Tax effect | — | — | — | 17 | — | (17) | |||||||||||||||||||||||||||||
| Consolidated | $ | 1,373 | $ | 733 | $ | 28 | $ | (93) | $ | 22 | $ | 739 | |||||||||||||||||||||||
_____________________
(1) Includes $189 million of tax benefit related to a Bermuda tax law change, which is included in the Insurance segment. See Note 13. Income Taxes.
Supplemental Information
Year Ended December 31, 2025
| Net Earned Premiums | Net Investment Income | Loss and LAE (Benefit) | Amortization of DAC | Other Expenses(1) | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||
| Insurance | $ | 383 | $ | 358 | $ | (8) | $ | 22 | $ | 307 | |||||||||||||||||||
| Asset Management | — | — | — | — | 17 | ||||||||||||||||||||||||
| Total segments | 383 | 358 | (8) | 22 | 324 | ||||||||||||||||||||||||
| Corporate division | — | 13 | — | — | 59 | ||||||||||||||||||||||||
| Other | (3) | (12) | 1 | — | — | ||||||||||||||||||||||||
| Subtotal | 380 | 359 | (7) | 22 | 383 | ||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Credit derivative impairment (recoveries) (2) | — | — | 63 | — | — | ||||||||||||||||||||||||
| Consolidated | $ | 380 | $ | 359 | $ | 56 | $ | 22 | $ | 383 | |||||||||||||||||||
_____________________
(1) Consists of “employee compensation and benefit expenses” and “other operating expenses.”
(2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations and in loss and LAE (benefit) on a segment basis.
Supplemental Information
Year Ended December 31, 2024
| Net Earned Premiums | Net Investment Income | Loss and LAE (Benefit) | Amortization of DAC | Other Expenses(1) | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||
| Insurance | $ | 406 | $ | 339 | $ | (18) | $ | 20 | $ | 287 | |||||||||||||||||||
| Asset Management | — | — | — | — | 6 | ||||||||||||||||||||||||
| Total segments | 406 | 339 | (18) | 20 | 293 | ||||||||||||||||||||||||
| Corporate division | — | 14 | — | — | 68 | ||||||||||||||||||||||||
| Other | (3) | (13) | (7) | — | — | ||||||||||||||||||||||||
| Subtotal | 403 | 340 | (25) | 20 | 361 | ||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Credit derivative impairment (recoveries) (2) | — | — | (1) | — | — | ||||||||||||||||||||||||
| Consolidated | $ | 403 | $ | 340 | $ | (26) | $ | 20 | $ | 361 | |||||||||||||||||||
_____________________
(1) Consists of “employee compensation and benefit expenses” and “other operating expenses.”
(2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations and in loss and LAE (benefit) on a segment basis.
Supplemental Information
Year Ended December 31, 2023
| Net Earned Premiums | Net Investment Income | Loss and LAE (Benefit) | Amortization of DAC | Other Expenses(1) | |||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||
| Segments: | |||||||||||||||||||||||||||||
| Insurance | $ | 347 | $ | 370 | $ | 161 | $ | 13 | $ | 261 | |||||||||||||||||||
| Asset Management | — | — | — | — | 77 | ||||||||||||||||||||||||
| Total segments | 347 | 370 | 161 | 13 | 338 | ||||||||||||||||||||||||
| Corporate division | — | 8 | — | — | 117 | ||||||||||||||||||||||||
| Other | (3) | (13) | 3 | — | 13 | ||||||||||||||||||||||||
| Subtotal | 344 | 365 | 164 | 13 | 468 | ||||||||||||||||||||||||
| Reconciling items: | |||||||||||||||||||||||||||||
| Credit derivative impairment (recoveries) (2) | — | — | (2) | — | — | ||||||||||||||||||||||||
| Consolidated | $ | 344 | $ | 365 | $ | 162 | $ | 13 | $ | 468 | |||||||||||||||||||
_____________________
(1) Consists of “employee compensation and benefit expenses” and “other operating expenses.”
(2) Credit derivative impairment (recoveries) are included in “fair value gains (losses) on credit derivatives” in the Company’s consolidated statements of operations and in loss and LAE (benefit) on a segment basis.
The table below summarizes revenues for the operating segments, the Corporate division and the Other category by country of domicile for each period indicated, based on the country of domicile of the Company’s subsidiaries that generated the revenues.
Segment, Corporate Division and Other
Revenues by Country of Domicile
| Year Ended December 31, | ||||||||||||||||||||
| Country of Domicile | 2025 | 2024 | 2023 | |||||||||||||||||
| (in millions) | ||||||||||||||||||||
| U.S. | $ | 749 | $ | 685 | $ | 1,064 | ||||||||||||||
| Bermuda | 177 | 168 | 166 | |||||||||||||||||
| U.K. | 48 | 32 | 36 | |||||||||||||||||
| Other | 2 | 1 | 1 | |||||||||||||||||
| Total | $ | 976 | $ | 886 | $ | 1,267 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.