FONT-SIZE Plus   Neg

Assured Guaranty Swings To Q1 Net Loss; Announces RMBS Settlement Agreement

Assured Guaranty Ltd. (AGO) reported a net loss for the first quarter of $483.0 million or $2.65 per share, compared to net income of $139.3 million or $0.74 per share for the year-ago quarter.

The latest quarter net loss includes non-economic net fair value losses of $560.0 million, while the year-ago net income included non-economic net fair value losses of $119.2 million as well as the benefit of the Bank of America agreement that was executed last year.

Operating income, a non-GAAP measure, for first quarter was $71.2 million or $0.38 per share, compared to $247.4 million or $1.32 per share in the prior year quarter.

The latest quarter operating income includes commutation gains of $54.2 million, or $0.30 per share, from two re-assumptions of previously ceded books of business. It also includes an after-tax net loss of $136.5 million or $0.73 per share representing the company's expected ultimate loss on its Greek sovereign exposures.

Net earned premium for the quarter dropped to $193.7 million from $254.0 million in the year-ago quarter.

Analysts polled by Thomson Reuters expected the company to earn $0.36 per share on revenue of $192.65 million for the first quarter. Analysts' estimates typically exclude special items.

Additionally, Assured Guaranty said that it has reached a settlement with Deutsche Bank AG and certain of its affiliates, resolving claims related to residential mortgage-backed securities transactions issued, underwritten or sponsored by Deutsche Bank that were insured by Assured Guaranty under financial guaranty insurance policies and to certain RMBS exposures in re-securitization transactions on which Assured Guaranty provided credit protection through credit default swaps.

As part of the agreement with Deutsche Bank, Assured Guaranty said it received a cash payment of $165.6 million, a portion of which will partially reimburse Assured Guaranty for past losses on certain transactions that are covered by a loss-sharing agreement, which also requires Deutsche Bank to pay a portion of Assured Guaranty's future RMBS related losses.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Germany's Deutsche Bank AG reported Thursday a profit in its third quarter, compared to loss a year ago. Last year, the company had registered a hefty 5.8 billion euros impairment charge related to Hua Xia Bank Co. Revenues also were higher in the quarter. Shares of Nokia Corp. were losing around 8 percent in the early morning trading after the Finnish network equipment maker reported a loss in its third quarter, compared to a profit last year. The results reflected costs related to Alcatel-Lucent deal. The company also said its Chief Financial Officer Timo Ihamuotila resigned to join Swiss engineering firm ABB Ltd. as CFO. Electric car maker Tesla Motors Inc. (TSLA), Wednesday reported a profit for the third quarter beating Wall Street estimates by a large margin, driven primarily by record production and deliveries. Shares of the company gained over 5 percent in extended hours after the company reaffirmed its delivery...
comments powered by Disqus
Follow RTT