Assured Guaranty Ltd. Profits Dip Sharply
Bermuda-based Assured Guaranty Ltd. yesterday [May 9] reported a 60 percent decline in first-quarter profit, its bottom line hurt by derivative-related losses and lower earned premiums.
Assured Guaranty, which provides credit support and reinsurance services, posted net income of $125.4 million or $0.67 per share for the quarter, a decline from $322 million or $1.69 per share reported in 2010.
Results for the quarter include, impairment charges related to credit derivatives totalling $217.4 million, while the prior year had a gain of $230.8 million.
Excluding certain gains/losses, operating income for the quarter was $248.9 million or $1.33 per share, up from $112.6 million or $0.59 per share a year ago.
Total revenues for the quarter dropped sharply to $254 million from $667.3 million in the comparable 2010 quarter.
Wall Street analysts had anticipated revenues of $367.47 million for the quarter.
Revenue for the quarter include a loss of $296.6 million related to change in fair value of derivatives, compared to a gain of $300.5 million last year.
