Assured Guaranty Ltd. (NYSE: AGO) reported full‑year 2025 results that set new company records, with net income per share of $10.26—up 49% from $6.87 in 2024—and adjusted operating income per share of $9.08, a 28% year‑over‑year increase. The company also highlighted record highs in key shareholder‑value metrics, underscoring the strength of its capital position and the impact of a $500 million share‑repurchase program that has driven per‑share growth.
In the fourth quarter, Assured Guaranty posted GAAP earnings per share of $2.53 and an adjusted EPS of $2.32, beating the consensus estimate of $1.54 by $0.78 or 51%. Revenue for the quarter reached $277 million, well above analyst expectations of roughly $194 million to $206 million. The earnings beat was driven by robust demand for municipal bond guarantees, pricing power in the core business, and disciplined cost management that kept loss‑adjustment expenses low.
The company’s core municipal bond guarantee segment continued to dominate, capturing 58.5% of new issue insured par in 2025. In addition, the acquisition of Warwick Re—now Assured Life Reinsurance Limited—expanded the firm’s footprint into annuity reinsurance, providing a new revenue stream and diversification of risk exposure. Alternative investments grew to over $1 billion, contributing significantly to adjusted operating income and reinforcing the company’s strategy of leveraging its credit expertise across multiple asset classes.
Margin performance improved, with adjusted operating income per share rising 28% YoY. The expansion was largely attributable to a higher mix of high‑margin structured‑finance contracts and effective cost control, while the aggressive share‑repurchase program amplified earnings per share. These dynamics illustrate the company’s ability to generate sustainable profitability from its core operations while maintaining a strong capital base.
CEO Dominic Frederico noted that the 2025 results “reached record highs in our key shareholder‑value metrics” and highlighted the company’s continued focus on creating future earnings from financial guaranty originations in U.S. public finance, non‑U.S. infrastructure finance, and global structured finance. CFO Robert Bailenson emphasized that the results reflect successful execution of strategic initiatives and effective risk management, and that opportunities for growth remain in alternative investments and asset‑management segments.
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