logo
Plus   Neg
Share
Email
Comment

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
BlackRock Inc., the world's largest asset manager, said it plans to speak with gun makers and distributors following public outcry after the Florida high school shooting that killed 17 people. BlackRock, which had $6.3 trillion in assets under management as of December 31, 2017, holds shares in gun makers Sturm Ruger & Co. Inc. as well as American Outdoor Brands Corp. An upgraded boarding in Southwest Airline will cost you more. The airline usually not assign seats to passengers, but one can choose from an open seat. The Upgraded Boarding will allow passengers to choose from A1 - A15 boarding positions. The cost for these positions would be $30, $40 and $50, depending on flight and route. This option can be availed from the ticket counter or gate. Citigroup Inc.'s co-head of mergers and acquisitions, Peter Tague, is leaving the company, according to media reports, citing people familiar with the matter. Tague has been co-head of Global M&A business at Citigroup since March 2012, alongside Cary Kochman and Mark Shafir. It was not immediately clear what Tague intends to do after he leaves Citigroup.
comments powered by Disqus
Follow RTT