Assured Guaranty Q4 2024: Navigating Contradictions in Market Exposure, Regulatory Developments, and Wildfire Risks

These are the key contradictions discussed in Assured Guaranty's latest 2024 Q4 earnings call, specifically including: Exposure to DC Market and PREPA Resolution, UK Water Sector Regulatory Progress and Thames Water Outlook, and Assured Guaranty's Exposure to Wildfires:



Financial Performance and Shareholder Value:
- Assured Guaranty reported adjusted operating income per share of $7.10 and achieved record year-end highs for adjusted book value per share at $170.12 and adjusted operating shareholders' equity per share at $114.75.
- The company also repurchased 11% of its common shares outstanding, managing excess capital effectively.

New Business Production and Geographic Expansion:
- PVP across financial guaranty businesses topped $400 million for the second year in a row, with US public finance reaching $270 million.
- Assured Guaranty expanded its geographic reach by opening offices in Australia and Singapore, and pursuing opportunities in Continental Europe and Asia.

Dividends and Capital Management:
- The company distributed $68 million in dividends and announced a 10% increase in its quarterly dividend, reflecting its strong financial position.
- Share repurchases totaled $502 million in 2024, with over 150 million shares retired, supporting shareholder returns.

Asset Management and Alternative Investments:
- The company's alternative investments generated an annualized internal rate of return of approximately 13%, enhancing investment results.
- The partnership with Sound Point was highlighted as a strategic initiative to increase overall investment returns.