Assured Guaranty: ‘Near-Record Results’
Bermuda’s Assured Guaranty Ltd. together with its subsidiaries, announced today [Feb.29] financial results for the year ended December 31, 2011 and for the three-month period ended December 31, 2011.
The company reported operating income for fourth quarter 2011 of $173.5 million, or $0.95 per diluted share, which represents a 13.6% increase compared with the three-month period ended December 31, 2010, primarily as a result of lower loss expense3 included in operating income. This brings FY 2011 operating income to $604.4 million, or $3.26 per diluted share. The comparable operating income for the year ended December 31, 2010 was $664.1 million, or $3.51 per diluted share.
Operating income reflects certain adjustments to net income, including the removal of the effects of changes in fair value that are not expected to result in economic loss.
Fourth quarter 2011 GAAP net loss of $83.6 million, or $0.46 per diluted share, was a $99.9 million improvement over fourth quarter 2010 net loss of $183.5 million, or $1.00 per diluted share. In FY 2011 net income increased 57.1% to $775.6 million, or $4.18 per diluted share, compared with $493.7 million, or $2.61 per diluted share, in FY 2010.
“Our near-record operating income results were impressive in 2011, a year marked by uncertainty about our ratings, persistent problems in the economy, a steep decline in municipal issuance and delayed recovery in structured and international infrastructure finance markets,” said Dominic Frederico [pictured], president and CEO. “In 2011 we strengthened our rating agency capital position, developed new business opportunities, and mitigated a substantial amount of losses through our R&W recoveries.”
The Bermuda-based holding company provides financial guaranty insurance and reinsurance, as well as mortgage guaranty coverage, through its operating subsidiaries.
Operating through its main subsidiaries Assured Guaranty Corp. and Assured Guaranty Municipal Corp, its products include guaranties for municipal finance, structured finance, and corporate bonds. It operates throughout the US and Puerto Rico. Its UK subsidiary writes insurance in Britain and other European markets. The company provides financial guaranty reinsurance through its Bermuda operation Assured Guaranty Re.
