What changed in this filing

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Item 1. Financial Statements

2025-08-08 compared with 2025-05-09 · 565 added, 259 removed, 1609 unchanged (34% of the section changed)

3 unchanged sentences

(dollars in millions except share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $ 47 and $ 60 (amortized cost of $ 6,765 and $ 6,827 )

7 unchanged sentences

Salvage and subrogation recoverable 382 396

Financial guaranty variable interest entities’ assets, at fair value 145 147

Financial guaranty variable interest entities’ assets (includes $ 176 and $ 147 , at fair value)

Assets of consolidated investment vehicles (includes $ 121 and $ 99 , at fair value)

4 unchanged sentences

Long-term debt 1,701 1,699

Financial guaranty variable interest entities’ liabilities, at fair value (with recourse $ 153 and $ 155 , without recourse $ 10 and $ 9 )

Financial guaranty variable interest entities’ liabilities (includes $ 201 and $ 164 at fair value, $ 186 and $ 155 with recourse, $ 16 and $ 9 without recourse)

Other liabilities (includes $ 35 and $ 34 , at fair value)

16 unchanged sentences

(dollars in millions except share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net earned premiums $ 89 $ 84 $ 180 $ 203

22 unchanged sentences

Net income (loss) attributable to Assured Guaranty Ltd.

$ 103 $ 78 $ 279 $ 187

Earnings per share:

5 unchanged sentences

(in millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income (loss) $ 106 $ 81 $ 291 $ 194

1 unchanged sentence

Investments with no credit impairment, net of tax provision (benefit) of $ 11 , $( 4 ), $ 17 and $( 9 )

85 ( 12 ) 137 ( 41 )

Investments with credit impairment, net of tax provision (benefit) of $( 1 ), $ 1 , $ 4 and $ 1

6 unchanged sentences

Comprehensive income (loss) attributable to Assured Guaranty Ltd.

$ 190 $ 73 $ 437 $ 154

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(dollars in millions, except share data)

For the Three Months Ended March 31, 2025

For the Three Months Ended June 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

4 unchanged sentences

Shareholders’ Equity

As of December 31, 2024 50,505,320 $ 1 $ 5,878 $ ( 385 ) $ 1 $ 5,495 $ 58 $ 5,553

As of March 31, 2025 49,553,438 $ — $ 5,903 $ ( 314 ) $ 1 $ 5,590 $ 67 $ 5,657

Net income — — 103 — — 103 3 106

1 unchanged sentence

— — ( 19 ) — — ( 19 ) — ( 19 )

Consolidation — — — — — — 26 26

Common shares repurchases ( 1,537,505 ) — ( 132 ) — — ( 132 ) — ( 132 )

1 unchanged sentence

Other comprehensive income — — — 87 — 87 — 87

As of June 30, 2025 48,109,439 $ — $ 5,859 $ ( 227 ) $ 1 $ 5,633 $ 96 $ 5,729

For the Three Months Ended June 30, 2024

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

Common Shares Outstanding Common

Par Value Retained Earnings Accumulated

Comprehensive Income (Loss) Deferred

Equity Compensation Total Nonredeemable Noncontrolling Interests

Shareholders’ Equity

As of March 31, 2024 55,081,584 $ 1 $ 6,014 $ ( 387 ) $ 1 $ 5,629 $ 53 $ 5,682

For the Three Months Ended March 31, 2024

Net income — — 78 — — 78 3 81

Dividends ($ 0.31 per share)

— — ( 17 ) — — ( 17 ) — ( 17 )

Common shares repurchases ( 1,928,328 ) — ( 154 ) — — ( 154 ) — ( 154 )

Share-based compensation 32,451 — 8 — — 8 — 8

Other comprehensive loss — — — ( 5 ) — ( 5 ) — ( 5 )

As of June 30, 2024 53,185,707 $ 1 $ 5,929 $ ( 392 ) $ 1 $ 5,539 $ 56 $ 5,595

Assured Guaranty Ltd.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(dollars in millions, except share data)

For the Six Months Ended June 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

8 unchanged sentences

— — ( 37 ) — — ( 37 ) — ( 37 )

Consolidation — — — — — — 26 26

Common shares repurchases ( 2,872,733 ) ( 1 ) ( 251 ) — — ( 252 ) — ( 252 )

Share-based compensation 476,852 — ( 10 ) — — ( 10 ) — ( 10 )

Other comprehensive income — — — 158 — 158 — 158

As of June 30, 2025 48,109,439 $ — $ 5,859 $ ( 227 ) $ 1 $ 5,633 $ 96 $ 5,729

For the Six Months Ended June 30, 2024

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

Common Shares Outstanding Common

Par Value Retained Earnings Accumulated

Comprehensive Income (Loss) Deferred

Equity Compensation Total Nonredeemable Noncontrolling Interests

Shareholders’ Equity

As of December 31, 2023 56,217,305 $ 1 $ 6,070 $ ( 359 ) $ 1 $ 5,713 $ 52 $ 5,765

Net income — — 187 — — 187 7 194

Dividends ($ 0.62 per share)

— — ( 36 ) — — ( 36 ) — ( 36 )

Common shares repurchases ( 3,467,606 ) — ( 285 ) — — ( 285 ) — ( 285 )

Share-based compensation 436,008 — ( 7 ) — — ( 7 ) — ( 7 )

Distributions — — — — — — ( 3 ) ( 3 )

Other comprehensive loss — — — ( 33 ) — ( 33 ) — ( 33 )

As of March 31, 2024 55,081,584 $ 1 $ 6,014 $ ( 387 ) $ 1 $ 5,629 $ 53 $ 5,682

As of June 30, 2024 53,185,707 $ 1 $ 5,929 $ ( 392 ) $ 1 $ 5,539 $ 56 $ 5,595

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Net cash flows provided by (used in) operating activities $ 165 $ ( 16 )

30 unchanged sentences

(in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Supplemental cash flow information

3 unchanged sentences

Receipt of fixed-maturity securities, available-for-sale $ 7 $ —

Distributions from equity method investments — 7

March 31, 2025 March 31, 2024

June 30, 2025 June 30, 2024

Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:

Cash $ 301 $ 92

Cash and cash equivalents of consolidated investment vehicles (See Note 8)

Cash and cash equivalents of financial guaranty variable interest entities (see Note 8) 23 —

Cash and cash equivalents of consolidated investment vehicles — 15

Restricted cash (included in other assets) 1 2

24 unchanged sentences

The Company designated certain assets and liabilities supporting the Insurance segment as held for sale in the first quarter of 2023.

The held for sale assets and liabilities were $ 28 million (reported in “other assets”) and $ 3 million (reported in “other liabilities”), respectively, as of March 31, 2025.

The held for sale assets and liabilities were $ 29 million (reported in “other assets”) and $ 3 million (reported in “other liabilities”), respectively, as of June 30, 2025.

Asset Management

1 unchanged sentence

In addition, in accordance with the terms of a letter agreement (Letter Agreement), effective July 1, 2023, AG (i) engaged Sound Point as its sole alternative credit manager, and (ii) transitioned to Sound Point the management of certain existing alternative investments and related commitments.

The Letter Agreement also provides that, within the first two years of Sound Point’s engagement, AG, including through its investment subsidiary AG Asset Strategies LLC (AGAS), would, subject to regulatory approval, cure terms and other terms of the Letter Agreement, make new investments in funds, other vehicles and separately managed accounts managed by Sound Point which, when aggregated with the alternative investments and commitments transitioned from the Company and any reinvestments (collectively, Sound Point Investments), and investments made by other Assured Guaranty affiliates, will total $ 1 billion.

The Letter Agreement contemplates a long-term investment partnership between Sound Point and Assured Guaranty, whereby AG has agreed to reinvest all returns of capital from Sound Point Investments for a period of 15 years, until July 1, 2038.

Similarly, the Letter Agreement provides that AG will reinvest all gains and dividends from Sound Point Investments for the first two years of Sound Point’s engagement, and reinvest half of all such gains and dividends thereafter until July 1, 2033.

On July 1, 2028, AG may choose to reduce the amounts invested or required to be reinvested in certain Sound Point Investments under the Letter Agreement, subject to adjustment of Assured Guaranty’s portion of its ownership interest in Sound Point.

The Letter Agreement also provides that AG, including through its investment subsidiary AG Asset Strategies LLC (AGAS), would, subject to the terms and conditions of the Letter Agreement, make new investments in funds, other vehicles and separately managed accounts managed by Sound Point which, when aggregated with the alternative investments and commitments transitioned from the Company and any reinvestments (collectively, Sound Point Investments), and investments made by other Assured Guaranty affiliates, will total $ 1 billion.

AG has made substantial investments with Sound Point across a variety of their strategies in order to seek to enhance its investment returns and anticipates continuing to invest with Sound Point pursuant to the terms of the Letter Agreement.

The Letter Agreement contemplates a long-term investment partnership between Sound Point and Assured Guaranty, whereby AG agreed to reinvest all returns of capital from Sound Point Investments until July 1, 2038.

Similarly, under the Letter Agreement AG agreed to reinvest all gains and dividends from Sound Point Investments through July 1, 2025, and reinvest half of all such gains and dividends thereafter until July 1, 2033.

To the extent not required to be reinvested by the Letter Agreement, all proceeds from Sound Point Investments received in accordance with their operative investment documents can be distributed to AG.

12 unchanged sentences

Actual results could differ from those estimates.

These unaudited interim condensed consolidated financial statements are as of March 31, 2025 and cover the three-month period ended March 31, 2025 (first quarter 2025) and the three-month period ended March 31, 2024 (first quarter 2024).

These unaudited interim condensed consolidated financial statements are as of June 30, 2025 and cover the three-month period ended June 30, 2025 (second quarter 2025), the three-month period ended June 30, 2024 (second quarter 2024), the six-month period ended June 30, 2025 (six months 2025) and the six-month period ended June 30, 2024 (six months 2024).

Certain financial information that is normally included in annual financial statements prepared in accordance with GAAP, but is not required for interim reporting purposes, has been condensed or omitted.

44 unchanged sentences

The Insurance segment primarily consists of the adjusted operating income (loss) of the Company’s insurance subsidiaries and AGAS.

The Asset Management segment primarily includes the results of the Company’s equity method ownership interest in Sound Point.

The Asset Management segment includes the results of the Company’s equity method ownership interest in Sound Point and other asset management-related incentive fees.

The Corporate division primarily consists of:

5 unchanged sentences

See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

The following table presents information for the Company’s operating segments.

Intersegment revenues include transactions between and among the segments, the Corporate division and Other category.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The following table presents information for the Company’s operating segments.

Intersegment revenues include transactions between and among the segments, the Corporate division and other.

Segment Information

First Quarter

Second Quarter

Insurance Asset Management Insurance Asset Management

14 unchanged sentences

Non-cash compensation and operating expenses (3) 14 — 11 —

Insurance (1) Asset Management Insurance Asset Management

(in millions)

Third-party revenues $ 433 $ 18 $ 413 $ 7

Intersegment revenues 5 3 5 1

Segment revenues 438 21 418 8

Segment loss and LAE (benefit) 4 — 4 —

Segment employee compensation and benefit expenses 96 — 88 —

Segment amortization of deferred acquisition cost 10 — 9 —

Other segment items (2) 59 13 54 4

Segment expenses 169 13 155 4

Segment equity in earnings (losses) of investees 32 12 55 ( 2 )

Segment provision (benefit) for income taxes 57 4 53 1

Segment adjusted operating income (loss) $ 244 $ 16 $ 265 $ 1

Selected components of segment adjusted operating income:

Net investment income $ 175 $ — $ 164 $ —

Non-cash compensation and operating expenses (3) 32 — 28 —

_____________________

(1) First quarter 2025 results include the gain recognized in connection with the Lehman Brothers International (Europe) (in administration) (LBIE) litigation, which represents the full satisfaction of the judgment it was awarded and its claims for attorneys’ fees, expenses and interest.

(1) Six months 2025 results include the gain recognized in connection with the Lehman Brothers International (Europe) (in administration) (LBIE) litigation, which represents the full satisfaction of the judgment the Company was awarded and its claims for attorneys’ fees, expenses and interest.

See Note 6, Contracts Accounted for as Credit Derivatives, for additional information.

(2) Other segment items include professional services expenses, maintenance, depreciation expense, lease expense, investment management expenses and certain overhead expenses.

(3) Consists of depreciation and amortization and share-based compensation expenses.

(2) Other segment items for the Insurance segment include professional services expenses, maintenance, depreciation expense, lease expense, investment management expenses and certain overhead expenses;

and for the Asset Management segment include expenses associated with incentive fees.

(3) Amounts consist of depreciation, amortization and share-based compensation expenses.

Assured Guaranty Ltd.

2 unchanged sentences

Reconciliation of Segment Information to Consolidated Information

First Quarter 2025

Three Months Ended June 30, 2025

Equity in Earnings (Losses) of Investees Less:

15 unchanged sentences

Consolidated $ 281 $ 151 $ 3 $ 27 $ 3 $ 103

Reconciliation of Segment Information to Consolidated Information

Three Months Ended June 30, 2024

Equity in Earnings (Losses) of Investees Less:

Net Income (Loss) Attributable to AGL

Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests

(in millions)

Insurance $ 189 $ 70 $ 15 $ 18 $ — $ 116

Asset Management 7 4 ( 3 ) — — —

Total segments 196 74 12 18 — 116

Corporate division 4 44 — ( 5 ) — ( 35 )

Other 4 ( 5 ) ( 7 ) — 3 ( 1 )

Subtotal 204 113 5 13 3 80

Reconciling items:

Realized gains (losses) on investments ( 6 ) — — — — ( 6 )

Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives 3 — — — — 3

Fair value gains (losses) on CCS 1 — — — — 1

Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves — — — — — —

Tax effect — — — — — —

Consolidated $ 202 $ 113 $ 5 $ 13 $ 3 $ 78

Assured Guaranty Ltd.

1 unchanged sentence

Reconciliation of Segment Information to Consolidated Information

First Quarter 2024

Six Months Ended June 30, 2025

Equity in Earnings (Losses) of Investees Less:

15 unchanged sentences

Consolidated $ 626 $ 320 $ 56 $ 71 $ 12 $ 279

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 2024

Equity in Earnings (Losses) of Investees Less:

Net Income (Loss) Attributable to AGL

Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interests

(in millions)

Insurance $ 418 $ 155 $ 55 $ 53 $ — $ 265

Asset Management 8 4 ( 2 ) 1 — 1

Total segments 426 159 53 54 — 266

Corporate division 9 91 — ( 10 ) — ( 72 )

Other 20 ( 10 ) ( 24 ) — 7 ( 1 )

Subtotal 455 240 29 44 7 193

Reconciling items:

Realized gains (losses) on investments 2 — — — — 2

Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives 11 ( 2 ) — — — 13

Fair value gains (losses) on CCS ( 9 ) — — — — ( 9 )

Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves ( 12 ) — — — — ( 12 )

Tax effect — — — — — —

Consolidated $ 447 $ 238 $ 29 $ 44 $ 7 $ 187

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Outstanding Exposure

4 unchanged sentences

The Company also seeks to acquire portfolios of insurance from financial guarantors that are no longer writing new business by acquiring such companies, providing reinsurance on or novating a portfolio of insurance;

in such instances, it evaluates the risk characteristics of the target portfolio, which may include some BIG exposures, as a whole in the context of the proposed transaction.

in such instances, the Company evaluates the risk characteristics of the target portfolio, which may include some BIG exposures, as a whole in the context of the proposed transaction.

The Company diversifies its insured portfolio across sector and geography and, in the structured finance portfolio, generally requires subordination or collateral to protect it from loss.

7 unchanged sentences

Unless otherwise specified, the outstanding par and debt service amounts presented in this note include outstanding exposures on these VIEs whether or not they are consolidated.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company also provides specialty insurance and reinsurance, and other types of financial guaranties, that are consistent with its risk profile and benefit from its underwriting experience.

9 unchanged sentences

For assumed exposures, the Company may use the ceding company’s credit ratings of transactions where it is impractical for it to assign its own rating.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company assigns each BIG exposure to one of the three BIG surveillance categories below, which generally represent the following:

4 unchanged sentences

As discussed in Note 4, Expected Loss to be Paid (Recovered), for financial statement measurement purposes, the Company uses risk-free rates (as determined each quarter) for discounting, rather than the pre-tax book yield of the investment portfolio, to calculate the expected losses to be paid.

Expected losses to be paid (recovered) are based on probability weighted scenarios and serve as the basis for the loss reserves reported in accordance with U.S.

Expected losses to be paid (recovered) are based on probability weighted scenarios and serve as the basis for the loss reserves reported in accordance with GAAP.

Financial Guaranty Exposure

3 unchanged sentences

Gross par outstanding generally represents the principal amount of the insured obligation at a point in time.

Net par outstanding equals

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

gross par outstanding net of any reinsurance.

Net par outstanding equals gross par outstanding net of any reinsurance.

The Company includes in its par outstanding calculation the impact of any consumer price index inflator to the reporting date as well as, in the case of accreting (zero-coupon) obligations, accretion to the reporting date.

3 unchanged sentences

The Company manages such securities as investments and not insurance exposure.

As of both March 31, 2025 and December 31, 2024, the Company excluded net par outstanding of $ 1.2 billion attributable to Loss Mitigation Securities.

As of both June 30, 2025 and December 31, 2024, the Company excluded net par outstanding of $ 1.2 billion attributable to Loss Mitigation Securities.

Gross debt service outstanding represents the sum of all estimated future debt service payments on the insured obligations, on an undiscounted basis.

3 unchanged sentences

• for insured obligations that are not supported by homogeneous pools of assets (which category includes most of the Company’s public finance transactions), as the total estimated contractual future debt service due through maturity, regardless of whether the obligations may be called and regardless of whether, in the case of obligations where principal payments are due when an underlying asset makes a principal payment, the Company believes the obligations will be repaid prior to contractual maturity;

• for insured obligations that are supported by homogeneous pools of assets that are contractually permitted to prepay principal (which category includes, for example, residential mortgage-backed securities (RMBS)), as the total estimated expected future debt service due on insured obligations through their respective expected terms, which reflects the Company’s expectations as to whether the obligations may be called and, in the case of obligations where principal payments are due when an underlying asset makes a principal payment, when the Company expects principal payments to be made prior to contractual maturity.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

reflects the Company’s expectations as to whether the obligations may be called and, in the case of obligations where principal payments are due when an underlying asset makes a principal payment, when the Company expects principal payments to be made prior to contractual maturity.

The calculation of debt service requires the use of estimates, which the Company updates periodically, including estimates and assumptions for the expected remaining term of insured obligations supported by homogeneous pools of assets, updated interest rates for floating and variable rate insured obligations, behavior of consumer price indices for obligations with consumer price index inflators, foreign exchange rates and other assumptions based on the characteristics of each insured obligation.

2 unchanged sentences

dollar denominated insured obligations and other factors.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

Debt Service and Par Outstanding

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Gross Net Gross Net

7 unchanged sentences

Total financial guaranty $ 273,260 $ 272,778 $ 262,032 $ 261,552

In addition to amounts shown in the table above, the Company had outstanding commitments to provide guaranties of $ 956 million of public finance gross par and $ 1.6 billion of structured finance gross par as of March 31, 2025.

These commitments are contingent on the satisfaction of all conditions set forth in the guaranties and may expire unused or be canceled at the counterparty’s request.

In addition to amounts shown in the table above, the Company had outstanding commitments to provide financial guaranties of $ 2.0 billion of public finance gross par and $ 2.2 billion of structured finance gross par as of June 30, 2025.

These commitments are contingent on the satisfaction of all conditions set forth in the financial guaranties and may expire unused or be canceled at the counterparty’s request.

Therefore, the total commitment amount does not necessarily reflect actual future guaranteed amounts.

Financial Guaranty Portfolio by Internal Rating

As of March 31, 2025

As of June 30, 2025

Public Finance

15 unchanged sentences

Total net par outstanding $ 208,716 100.0 % $ 53,132 100.0 % $ 8,166 100.0 % $ 2,764 100.0 % $ 272,778 100.0 %

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio by Internal Rating

17 unchanged sentences

Total net par outstanding $ 201,175 100.0 % $ 49,200 100.0 % $ 8,453 100.0 % $ 2,724 100.0 % $ 261,552 100.0 %

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

Components of BIG Net Par Outstanding

As of March 31, 2025

As of June 30, 2025

BIG Net Par Outstanding Net Par

25 unchanged sentences

Total $ 8,102 $ 706 $ 1,374 $ 10,182 $ 261,552

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

BIG Net Par Outstanding and Number of Risks

As of March 31, 2025

As of June 30, 2025

Net Par Outstanding Number of Risks (2)

9 unchanged sentences

Total BIG $ 10,478 $ 30 $ 10,508 202 7 209

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

18 unchanged sentences

Specialty Business

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Gross Exposure Net Exposure Gross Exposure Net Exposure

7 unchanged sentences

This guaranty is accounted for in accordance with Accounting Standards Codification (ASC) 460, Guarantees.

All exposures in the table above are rated investment-grade, except for aircraft residual value insurance gross and net exposure of $ 5 million as of both March 31, 2025 and December 31, 2024.

In addition to the amounts shown in the table above, as of March 31, 2025, the Company had outstanding aggregate gross and net aircraft residual value insurance commitments of $ 90 million and $ 51 million, respectively.

All exposures in the table above are rated investment grade, except for aircraft residual value insurance gross and net exposure of $ 5 million as of both June 30, 2025 and December 31, 2024.

In addition to the amounts shown in the table above, as of June 30, 2025, the Company had outstanding aggregate gross and net aircraft residual value insurance commitments of $ 90 million and $ 51 million, respectively.

These commitments are contingent on the satisfaction of specified conditions and may expire unused or be cancelled at the request of the respective counterparty.

Therefore, the total commitment amount does not necessarily reflect actual future covered amounts .

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Expected Loss to be Paid (Recovered)

8 unchanged sentences

Expected loss to be paid (recovered) is important in that it represents the present value of amounts that the Company expects to pay or recover in future periods.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company removes any related expected loss to be paid (recovered) associated with Loss Mitigation Securities.

21 unchanged sentences

Each quarter, the Company may revise its scenarios and update its assumptions, including the probability weightings of its scenarios, based on public as well as nonpublic information obtained through its surveillance and loss mitigation activities.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes over a reporting period in the Company’s loss estimates for public finance obligations supported by specified revenue streams, such as revenue bonds issued by toll road authorities, municipal and regulated utilities, airport authorities or healthcare systems, generally will be influenced by factors impacting their revenue levels, such as changes in demand;

5 unchanged sentences

rating agency actions that affect the issuer’s ability to refinance maturing obligations or issue new debt at a reasonable cost;

changes in the priority or amount of pensions and other obligations owed to workers;

changes in the priority and amount of pensions and other obligations owed to workers;

developments in restructuring or settlement negotiations;

1 unchanged sentence

Changes in loss estimates may also be affected by the Company’s loss mitigation efforts and other variables.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes in the Company’s loss estimates for structured finance transactions can be influenced by the performance of the assets supporting those transactions, by macroeconomic factors and by specific actions taken to mitigate losses.

13 unchanged sentences

Net Expected Loss to be Paid (Recovered) Net Economic Loss Development (Benefit)

As of First Quarter

Accounting Model March 31, 2025 December 31, 2024 2025 2024

As of Second Quarter Six Months

Accounting Model June 30, 2025 December 31, 2024 2025 2024 2025 2024

(in millions)

2 unchanged sentences

FG VIEs (see Note 8)

16 16 ( 1 ) 1 ( 1 ) 1

Credit derivatives (see Note 6)

( 1 ) — ( 1 ) 1 ( 64 ) 1

The following tables present a roll forward of net expected loss to be paid (recovered) for all contracts, which are accounted for under one of the following accounting models:

insurance, derivative or FG VIE.

The Company used risk-free rates that ranged from 1.99 % to 5.41 % with a weighted average of 4.18 % as of March 31, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

$ 186 $ 106 $ 36 $ 21 $ 21 $ 14

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The following tables present a roll forward of net expected loss to be paid (recovered) for all contracts, which are accounted for under one of the following accounting models:

insurance, derivative or FG VIE.

The Company used risk-free rates for U.S.

currencies that ranged from 1.84 % to 5.48 % with a weighted average of 4.15 % as of June 30, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

Net Expected Loss to be Paid (Recovered)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

8 unchanged sentences

____________________

(1) First quarter 2025 amounts include recoveries recognized in connection with the resolution of the LBIE litigation.

(1) Six months 2025 amounts include recoveries recognized in connection with the resolution of the LBIE litigation.

See Note 6, Contracts Accounted for as Credit Derivatives, for additional information.

1 unchanged sentence

Roll Forward by Sector

First Quarter 2025

Sector Net Expected Loss to be Paid (Recovered) as of December 31, 2024 Net Economic Loss

Second Quarter 2025

Sector Net Expected Loss to be Paid (Recovered) as of March 31, 2025 Net Economic Loss

Development (Benefit) Net (Paid)

Net Expected Loss to be Paid (Recovered) as of March 31, 2025

Net Expected Loss to be Paid (Recovered) as of June 30, 2025

(in millions)

8 unchanged sentences

Total $ 150 $ 36 $ — $ 186

____________________

(1) First quarter 2025 amounts include recoveries recognized in connection with the resolution of the LBIE litigation.

See Note 6, Contracts Accounted for as Credit Derivatives, for additional information.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

First Quarter 2024

Second Quarter 2024

Sector Net Expected Loss to be Paid (Recovered) as of March 31, 2024 Net Economic Loss

Development (Benefit) Net (Paid)

Net Expected Loss to be Paid (Recovered) as of June 30, 2024

(in millions)

Public finance:

public finance $ 378 $ 12 $ ( 16 ) $ 374

public finance 20 17 — 37

Public finance 398 29 ( 16 ) 411

Structured finance:

RMBS ( 2 ) ( 10 ) 12 —

Other structured finance 37 2 ( 3 ) 36

Structured finance 35 ( 8 ) 9 36

Total $ 433 $ 21 $ ( 7 ) $ 447

Six Months 2025

Sector Net Expected Loss to be Paid (Recovered) as of December 31, 2024 Net Economic Loss

Development (Benefit) Net (Paid)

Net Expected Loss to be Paid (Recovered) as of March 31, 2024

Net Expected Loss to be Paid (Recovered) as of June 30, 2025

(in millions)

8 unchanged sentences

Total $ 106 $ 21 $ 59 $ 186

Six Months 2024

Sector Net Expected Loss to be Paid (Recovered) as of December 31, 2023 Net Economic Loss

Development (Benefit) Net (Paid)

Net Expected Loss to be Paid (Recovered) as of June 30, 2024

(in millions)

Public finance:

public finance $ 398 $ 9 $ ( 33 ) $ 374

public finance 20 17 — 37

Public finance 418 26 ( 33 ) 411

Structured finance:

RMBS 43 ( 13 ) ( 30 ) —

Other structured finance 44 1 ( 9 ) 36

Structured finance 87 ( 12 ) ( 39 ) 36

Total $ 505 $ 14 $ ( 72 ) $ 447

____________________

(1) Net of ceded paid losses, whether or not such amounts have been settled with reinsurers.

(1) Amounts are net of ceded paid losses, whether or not such amounts have been settled with reinsurers.

Ceded paid losses are typically settled 45 days after the end of the reporting period.

Such amounts are recorded as reinsurance recoverable on paid losses in “other assets.”

The tables above include (i) net LAE paid (recovered) of $( 61 ) million and $ 7 million for first quarter 2025 and first quarter 2024, respectively, and (ii) net expected LAE to be paid of $ 12 million as of March 31, 2025 and $ 11 million as of December 31, 2024, respectively.

(2) Six months 2025 amounts include recoveries recognized in connection with the resolution of the LBIE litigation.

See Note 6, Contracts Accounted for as Credit Derivatives, for additional information.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The tables above include (i) net LAE paid (recovered) of $ 5 million, $ 13 million, $( 56 ) million and $ 20 million for second quarter 2025, second quarter 2024, six months 2025 and six months 2024, respectively, and (ii) net expected LAE to be paid of $ 8 million as of June 30, 2025 and $ 11 million as of December 31, 2024.

Public Finance

The largest components of the public finance net expected losses to be paid (recovered) relate to certain healthcare and U.K.

regulated utilities exposures.

regulated utility exposures.

The total net expected loss to be paid for U.S.

public finance exposures is net of expected recoveries of $ 260 million and $ 262 million as of March 31, 2025 and December 31, 2024, respectively, for certain claims that have already been paid.

In first quarter 2025, the economic loss development for public finance transactions was primarily attributable to higher expected losses for Puerto Rico Electric Power Authority (PREPA) and U.K.

regulated utilities exposures.

Regulated Utilities and European Renewable Energy

In 2024, the Company internally downgraded to BIG certain U.K.

regulated utilities and European renewable energy transactions that are experiencing operational strain, high financing costs and/or other capital constraints.

public finance exposures is net of expected recoveries of $ 258 million and $ 262 million as of June 30, 2025 and December 31, 2024, respectively, for certain claims that have already been paid.

In second quarter 2025, the economic loss development for public finance transactions was primarily attributable to higher expected losses for certain healthcare and U.K.

regulated utility exposures.

In six months 2025, the economic loss development for public finance transactions was primarily attributable to higher expected losses for certain U.K.

regulated utility exposures, Puerto Rico Electric Power Authority (PREPA) and certain healthcare exposures.

Regulated Utility and European Renewable Energy

As of June 30, 2025, the Company insures net par of £ 3.8 billion (or $ 5.3 billion) of BIG U.K.

regulated utility and € 792 million (or $ 934 million) of BIG European renewable energy transactions that are experiencing operational strain.

As of June 30, 2025, the Company had $ 2.4 billion of net par outstanding of Thames Water Utilities Finance PLC (Thames), a BIG U.K.

regulated utility.

All of the Company’s insured exposure to Thames is to senior Class A debt at the regulated operating company level and not holding company debt or subordinated debt.

The Company, as part of the Thames senior Class A creditors, continues to engage the Water Services Regulation Authority (the governmental body responsible for the economic regulation of the privatized water and sewage industry in England and Wales, or Ofwat), His Majesty’s Treasury, and other members of the U.K.

Government in restructuring negotiations, and is taking other actions to work out this insured credit.

The first scheduled principal payment that comes due under the Company’s Thames exposure is in 2037.

The Company is actively working to mitigate losses and reduce risk.

Following sustained controversy about the failures in the wider water sector, the U.K.

Government formed an independent commission to conduct a wide ranging review (known as the Cunliffe review) in recognition of the need for fundamental reform.

It is the most comprehensive review since the industry’s privatization and covers a wide range of topics, including regulatory reform, company governance, long term investment, the legislative framework and overall strategy and planning in the water system.

Key amongst the many recommendations in its final report was the overhaul of the regulatory system and the consolidation of the U.K.

water utility regulators into a single regulator.

Some of the recommendations, if implemented, are expected to improve the financial condition of the Company’s insured obligations.

Government is reviewing the report.

Certain BIG healthcare exposures are experiencing rising labor costs due to competition for labor and shortages in certain markets.

Additionally, inflation has increased the cost of medical supplies, medical equipment and pharmacy products, while U.S.

hospitals with large Medicaid and Medicare payor mixes have not seen reimbursement levels keep pace with rising costs.

hospitals with large Medicaid and Medicare payor mixes have not seen reimbursement levels keep pace with rising costs and may be further impacted by recent cuts to Medicaid funding that will go into effect in 2026 and 2027.

The combined revenue and expense challenges have led to cash flow and liquidity stress in certain transactions.

In addition, certain credits are struggling to make necessary capital expenditures and improvements to facilities.

In addition, certain credits are struggling to make, or are in dispute as to who should fund, necessary capital expenditures and improvements to facilities.

All of the Company’s exposure to the Commonwealth of Puerto Rico (Puerto Rico or the Commonwealth) and its various authorities and public corporations is rated BIG.

The Company’s Puerto Rico net par and net debt service outstanding as of March 31, 2025 were $ 637 million and $ 744 million, respectively, compared with net par and net debt service outstanding as of December 31, 2024 of $ 637 million and $ 756 million, respectively.

The Company’s Puerto Rico net par and net debt service outstanding as of June 30, 2025 were $ 637 million and $ 742 million, respectively, compared with net par and net debt service outstanding as of December 31, 2024 of $ 637 million and $ 756 million, respectively.

Defaulting Puerto Rico Exposure

As of March 31, 2025, the Company’s only unresolved outstanding insured Puerto Rico exposure subject to a payment default was PREPA.

As of March 31, 2025, the Company’s PREPA net par and debt service outstanding were $ 532 million and

As of June 30, 2025, the Company’s only unresolved outstanding insured Puerto Rico exposure subject to a payment default was PREPA.

As of June 30, 2025, the Company’s PREPA net par and debt service outstanding were $ 532 million and

Assured Guaranty Ltd.

7 unchanged sentences

The Company has taken legal action, and may take additional legal action in the future, to enforce its rights with respect to the remaining Puerto Rico obligations it still insures.

In addition, the Commonwealth, the Financial Oversight and Management Board (FOMB) established under the Puerto Rico

Oversight, Management, and Economic Stability Act (PROMESA) and others have taken legal action naming the Company as a party.

In addition, the Commonwealth, the Financial Oversight and Management Board (FOMB) established under the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) and others have taken legal action naming the Company as a party.

Certain legal actions involving the Company and relating to defaults by the Commonwealth and its authorities and public corporations were resolved in 2022.

The remaining proceedings relate to PREPA’s default, including recently active proceedings and a number of proceedings that remain stayed pending the United States District Court for the District of Puerto Rico’s (Federal District Court of Puerto Rico) determination on the FOMB PREPA Plan, as described below in PREPA – Current Proceedings, Plan of Adjustment and Disclosure Statement.

The remaining proceedings relate to PREPA’s default, including recently active proceedings and a number of proceedings that remain stayed pending the U.S.

District Court for the District of Puerto Rico’s (Federal District Court of Puerto Rico) determination on the FOMB PREPA Plan, as described below in PREPA – Current Proceedings, Plan of Adjustment and Disclosure Statement.

PREPA – Current Proceedings

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On November 28, 2023, the Federal District Court of Puerto Rico finally adjudicated all claims and counterclaims in the PREPA lien challenge adversary proceeding.

On November 30, 2023, the Company filed a notice of appeal with the United States Court of Appeals for the First Circuit (First Circuit) for portions of the March 22, 2023 decision, including the lien scope ruling and the need for a claim estimation proceeding, as well as the June 26, 2023 claim estimation ruling.

On November 30, 2023, the Company filed a notice of appeal with the U.S.

Court of Appeals for the First Circuit (First Circuit) for portions of the March 22, 2023 decision, including the lien scope ruling and the need for a claim estimation proceeding, as well as the June 26, 2023 claim estimation ruling.

On June 12, 2024, the First Circuit held that bondholders have a claim against PREPA for the full principal amount of the bonds, plus matured interest, that there was no need for a claim estimation proceeding because the PREPA bonds specify the amount that PREPA legally owes bondholders, and that the claim is secured by PREPA’s net revenues, including future net revenues.

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On March 13, 2025, the parties submitted competing proposals.

At an Omnibus Hearing held on March 19, 2025, the Federal District Court of Puerto Rico indicated that it would allow the bondholders, including AG, to litigate an administrative expense claim based on PREPA’s post-petition use of the bondholders’ collateral and that the parties could revisit the possibility of litigating other key issues at a later time.

On March 28, 2025, the FOMB filed its Fifth Amended Title III Plan of Adjustment and related Disclosure Statement for informational purposes of the parties, as directed by the Federal District Court of Puerto Rico at the March 19, 2025 Omnibus Hearing.

At an Omnibus Hearing held on March 19, 2025, the Federal District Court of Puerto Rico indicated that it would allow the bondholders, including the Company, to litigate an administrative expense claim based on PREPA’s post-petition use of the bondholders’ collateral and that the parties could revisit the possibility of litigating other key issues at a later time.

On July 23, 2025, the Federal District Court of Puerto Rico heard oral arguments on the administrative expense claim, and ordered the parties to submit a discovery schedule by August 18, 2025 and a joint status report by August 25, 2025.

As directed by the Federal District Court of Puerto Rico at the March 19, 2025 Omnibus Hearing, the FOMB filed on March 28, 2025 its Fifth Amended Title III Plan of Adjustment and related Disclosure Statement for informational purposes of the parties.

On August 5, 2025, the FOMB announced that the U.S.

administration terminated five of its seven board members.

PREPA Mediation and Stayed Proceedings

On July 10, 2024, the Federal District Court of Puerto Rico ordered the FOMB and bondholders to resume mediation and instituted a 60-day stay of all PREPA litigation.

The Federal District Court of Puerto Rico most recently extended the PREPA litigation stay through March 24, 2025 and the term of mediation through October 31, 2025.

The Federal District Court of Puerto Rico most recently extended the PREPA litigation stay indefinitely and the term of mediation through October 31, 2025.

Following the Omnibus Hearing held on March 19, 2025, the Federal District Court of Puerto Rico partially lifted the PREPA litigation stay, and indicated that the PREPA litigation stay otherwise remains in place for the time being.

The following proceedings involving the Company and relating to the default by PREPA remain stayed in the Federal District Court of Puerto Rico pending its determination on the FOMB PREPA Plan:

• AG motion to compel the FOMB to certify the PREPA restructuring support agreement executed in May 2019 (PREPA RSA) for implementation under Title VI of PROMESA.

• AG motion to dismiss PREPA’s Title III Bankruptcy proceeding or, in the alternative, to lift the PROMESA automatic stay to allow for the appointment of a receiver.

• Adversary complaint by certain fuel line lenders of PREPA against AG, among other parties, including various PREPA bondholders and bond insurers, seeking, among other things, declarations that there is no valid lien securing the PREPA bonds unless and until such lenders are paid in full, as well as orders subordinating the PREPA bondholders’ lien and claims to such lenders’ claims, and declaring the PREPA RSA null and void.

• AG motion to intervene in a lawsuit by the retirement system for PREPA employees against, among others, the FOMB, PREPA, the Commonwealth, and the trustee for PREPA bondholders seeking, among other things, declarations that there is no valid lien securing the PREPA bonds other than on amounts in the sinking funds, and order subordinating the PREPA bondholders’ lien and claim to the PREPA employees’ claims.

• The Company’s motion to compel the FOMB to certify the PREPA restructuring support agreement executed in May 2019 (PREPA RSA) for implementation under Title VI of PROMESA.

• The Company’s motion to dismiss PREPA’s Title III Bankruptcy proceeding or, in the alternative, to lift the PROMESA automatic stay to allow for the appointment of a receiver.

• Adversary complaint by certain fuel line lenders of PREPA against the Company, among other parties, including various PREPA bondholders and bond insurers, seeking, among other things, declarations that there is no valid lien securing the PREPA bonds unless and until such lenders are paid in full, as well as orders subordinating the PREPA bondholders’ lien and claims to such lenders’ claims, and declaring the PREPA RSA null and void.

• The Company’s motion to intervene in a lawsuit by the retirement system for PREPA employees against, among others, the FOMB, PREPA, the Commonwealth, and the trustee for PREPA bondholders seeking, among other things, declarations that there is no valid lien securing the PREPA bonds other than on amounts in the sinking funds, and order subordinating the PREPA bondholders’ lien and claim to the PREPA employees’ claims.

Non-Defaulting Puerto Rico Exposure

As of both March 31, 2025 and December 31, 2024, the Company had approximately $ 92 million of remaining non-defaulting Puerto Rico net par outstanding related primarily to the Puerto Rico Municipal Finance Agency (MFA).

As of both June 30, 2025 and December 31, 2024, the Company had approximately $ 92 million of remaining non-defaulting Puerto Rico net par outstanding related primarily to the Puerto Rico Municipal Finance Agency (MFA).

The MFA exposures are secured by a lien on local tax revenues and remain current on debt service payments.

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The resulting projected claim payments or reimbursements are then discounted using risk-free rates.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The rate at which borrowers from a particular delinquency category (number of monthly payments behind) eventually default is referred to as the “liquidation rate.” The Company derives its liquidation rate assumptions from observed roll rates, which are the rates at which loans progress from one delinquency category to the next and eventually to default and liquidation.

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Each quarter the Company reviews recent third party data and (if necessary) adjusts its liquidation rates based on its observations.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Performing borrowers that eventually default will also need to progress through delinquency categories before any defaults occur.

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Expected losses are also a function of the structure of the transaction, the interest rate environment and other factors.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Economic Loss Development (Benefit)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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RMBS economic loss development (benefit) $ ( 6 ) $ ( 10 ) $ ( 9 ) $ ( 13 )

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

First Lien U.S.

9 unchanged sentences

First Lien U.S.

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Range Weighted Average Range Weighted Average

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The Company believes the most important driver of its projected second lien U.S.

RMBS losses is the performance of its HELOC transactions.

RMBS losses is the performance

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

of its HELOC transactions.

The Company believes the primary variable affecting its expected losses in second lien U.S.

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Once the plateau period ends, the CDR is assumed to trend down in uniform increments for one year to its final long-term steady state CDR ( 5 % of original plateau).

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The following table shows the range as well as the average, weighted by net par outstanding, for key assumptions used in the calculation of expected loss to be paid (recovered) for individual transactions for vintage 2004 - 2008 HELOCs.

Key Assumptions in Base Scenario Expected Loss Estimates

As of March 31, 2025 As of As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Range Weighted Average Range Weighted Average

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In the ordinary course of their respective businesses, certain of AGL’s subsidiaries are involved in litigation or other dispute resolution with third parties to recover insurance losses paid or return benefits received in prior periods or prevent or reduce losses in the future.

The impact, if any, of these and other proceedings on the amount of recoveries the Company ultimately receives and losses it pays in the future is uncertain, and the impact of any one or more of these proceedings during any quarter or year could be material to the Company’s financial statements.

The Company has asserted claims in a number of legal proceedings in connection with its exposure to Puerto Rico.

For example, the Company has asserted claims in a number of legal proceedings in connection with its exposure to Puerto Rico.

See above for a discussion of the Company’s exposure to Puerto Rico and related recovery litigation being pursued by the Company.

Contracts Accounted for as Insurance

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Net Earned Premiums

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

7 unchanged sentences

Gross Premium Receivable,

Net of Commissions Payable on Assumed Business

First Quarter

Net of Commissions Payable on Assumed Business and Allowance for Credit Losses

(in millions)

7 unchanged sentences

Foreign exchange gain (loss) on remeasurement 101 ( 10 )

Change in allowance for credit losses ( 1 ) —

Financial guaranty insurance premium receivable 1,630 1,471

Specialty insurance premium receivable 1 1

March 31, $ 1,568 $ 1,450

Approximately 69 % of gross premiums receivable, net of commissions payable, as of both March 31, 2025 and December 31, 2024, are denominated in currencies other than the U.S.

June 30, $ 1,631 $ 1,472

Approximately 69 % of gross premiums receivable, net of commissions payable, as of both June 30, 2025 and December 31, 2024, are denominated in currencies other than the U.S.

dollar, primarily the pound sterling and euro.

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Expected Future Premium Collections and Earnings

As of March 31, 2025

As of June 30, 2025

Future Net Premiums to be Earned (2)

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(in millions)

2025 (April 1 - June 30) $ 71 $ 76 $ 9 $ 85

2025 (July 1 - September 30) $ 76 $ 77 $ 10 $ 87

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Selected Information for Financial Guaranty Insurance Policies with Premiums Paid in Installments

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(dollars in millions)

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Insurance Contracts’ Losses Reported in the Consolidated Financial Statements

Loss reserves and salvage and subrogation recoverable are discounted at risk-free rates for financial guaranty insurance obligations that ranged from 1.99 % to 5.41 % with a weighted average of 4.19 % as of March 31, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

Loss reserves and salvage and subrogation recoverable are discounted at risk-free rates for financial guaranty insurance obligations that ranged from 1.84 % to 5.48 % with a weighted average of 4.16 % as of June 30, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

Assured Guaranty Ltd.

2 unchanged sentences

Net Reserve (Salvage) by Sector

Sector March 31, 2025 December 31, 2024

Sector June 30, 2025 December 31, 2024

(in millions)

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Financial Guaranty Insurance Contracts

As of March 31, 2025

As of June 30, 2025

(in millions)

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Net expected loss to be expensed (present value) $ 260

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The following table provides a schedule of the expected timing of financial guaranty net expected losses to be expensed.

1 unchanged sentence

This table excludes amounts related to FG VIEs, which are eliminated in consolidation.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Expected Loss to be Expensed

Financial Guaranty Insurance Contracts

As of March 31, 2025

As of June 30, 2025

(in millions)

2025 (April 1 - June 30) $ 4

2025 (July 1 - September 30) $ 3

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Loss and LAE (Benefit) by Sector

First Quarter

Second Quarter Six Months

Sector 2025 2024 2025 2024

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Structured finance:

RMBS $ — $ ( 5 ) — ( 3 )

Other structured finance ( 1 ) 2 ( 3 ) 1

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BIG Transaction Loss Summary

As of March 31, 2025

As of June 30, 2025

Gross Net Total BIG

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The components of the Company’s credit derivative net par outstanding by sector are presented in the table below.

The estimated remaining weighted average life of credit derivatives was 9.1 years and 8.4 years as of March 31, 2025 and December 31, 2024, respectively.

The estimated remaining weighted average life of credit derivatives was 9.0 years and 8.4 years as of June 30, 2025 and December 31, 2024, respectively.

Credit Derivatives (1)

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Sector Net Par

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Fair Value Gains (Losses) on Credit Derivatives

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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Following a bench trial, on March 8, 2023, the Court rendered its decision and found in favor of AGFP.

Following the exhaustion of LBIE’s appeals, the Company recognized a realized gain on credit derivatives in first quarter 2025 of $ 103 million, which represents the full satisfaction of the judgment it was awarded and its claims for attorneys’ fees, expenses and interest in connection with this litigation.

Following the exhaustion of LBIE’s appeals, the Company recognized a realized gain on credit derivatives in the first quarter of 2025 of $ 103 million, which represents the full satisfaction of the judgment it was awarded and its claims for attorneys’ fees, expenses and interest in connection with this litigation.

The impact of changes in credit spreads will vary based upon the volume, tenor, interest rates and other market conditions at the time these fair values are determined.

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CDS Spread on AG (in basis points)

As of March 31,

2025 As of December 31, 2024 As of March 31,

As of June 30,

2025 As of December 31, 2024 As of June 30,

2024 As of December 31, 2023

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and Effect of AG Credit Spread

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in millions)

2 unchanged sentences

Net fair value of credit derivatives $ ( 29 ) $ ( 29 )

The fair value of CDS contracts as of March 31, 2025, before considering the benefit applicable to AG’s credit spread, is a direct result of the relatively wider credit spreads under current market conditions, sometimes related to downgrades, compared with those at the time of underwriting for certain underlying credits with longer tenor.

The fair value of CDS contracts as of June 30, 2025, before considering the benefit applicable to AG’s credit spread, is a direct result of the relatively wider credit spreads under current market conditions, sometimes related to downgrades, compared with those at the time of underwriting for certain underlying credits with longer tenor.

The largest component of the investment portfolio is fixed-maturity securities, the majority of which are investment grade and managed by outside managers.

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Carrying Value

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in millions)

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____________________

(1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $ 547 million and $ 569 million as of March 31, 2025 and December 31, 2024, respectively, excluding the Company’s ownership interest in Sound Point of $ 411 million and $ 418 million as of March 31, 2025 and December 31, 2024, respectively, and excluding certain investments in funds that are accounted for as CIVs.

As of March 31, 2025 and December 31, 2024, 12.3 % and 12.6 % of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities and collateralized loan obligation (CLO) equity tranches.

As of March 31, 2025 and December 31, 2024, the carrying value of Loss Mitigation Securities was $ 497 million and $ 479 million, respectively.

As of March 31, 2025 and December 31, 2024, the carrying value of CLO equity tranches was $ 240 million and $ 277 million, respectively.

(1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $ 582 million and $ 569 million as of June 30, 2025 and December 31, 2024, respectively, excluding the Company’s ownership interest in Sound Point of $ 412 million and $ 418 million as of June 30, 2025 and December 31, 2024, respectively, and excluding certain investments in funds that are accounted for as CIVs.

As of June 30, 2025 and December 31, 2024, 13.4 % and 12.6 %, respectively, of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities and collateralized loan obligation (CLO) equity tranches.

As of June 30, 2025 and December 31, 2024, the carrying value of Loss Mitigation Securities was $ 503 million and $ 479 million, respectively.

In July 2025, the Company’s largest Loss Mitigation Security with a carrying value of $ 408 million as of June 30, 2025 reached its final resolution and was paid down after liquidation of the trust assets.

This paydown had no significant effect on the consolidated statement of operations.

As of June 30, 2025 and December 31, 2024, the carrying value of CLO equity tranches was $ 238 million and $ 277 million, respectively.

Fixed-maturity securities classified as trading securities primarily include contingent value instruments (CVIs) and are not rated.

The investment portfolio includes $ 923 million in alternative investments primarily consisting of (i) CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $ 583 million of investments across various asset classes that are reported in other invested assets.

In addition, as of March 31, 2025 and December 31, 2024, $ 39 million and $ 33 million, respectively, of the Company’s total alternative investments was invested in a Sound Point managed fund which was reported in “assets of CIVs,” “other liabilities” and “nonredeemable noncontrolling interests.” See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

The Company’s alternative investment commitments as of March 31, 2025 include $ 608 million in unfunded commitments which together with its $ 892 million in funded commitments total $ 1.5 billion, including a $ 1 billion commitment to invest in Sound Point managed alternative investments.

In addition, as of June 30, 2025 and December 31, 2024, $ 40 million and $ 33 million, respectively, of the Company’s total alternative investments was invested in a Sound Point managed fund which was reported in “assets of CIVs,” “other liabilities” and “nonredeemable noncontrolling interests.” See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

The Company’s alternative investment commitments as of

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Capital allocated to alternative investments was committed to several funds pursuing various strategies, including private healthcare investing, asset-based/specialty finance, CLOs, and middle market direct lending.

June 30, 2025 include $ 567 million in unfunded commitments which together with its $ 923 million in funded commitments total $ 1.5 billion, including a $ 1 billion commitment to invest in Sound Point managed alternative investments, subject to certain conditions precedent.

Capital allocated to alternative investments was committed to several funds pursuing various strategies, including private healthcare investing, asset-based/specialty finance and CLOs.

See Note 1, Business and Basis of Presentation, for a description of the Company’s alternative investments agreement with Sound Point.

In addition to the commitments above, the Company has agreed to subscribe for liquidity bonds to be issued by a U.K.

In addition to the commitments above, the Company agreed to subscribe for liquidity bonds to be issued by a U.K.

regulated utility to which it has insured exposure.

As of March 31, 2025, the Company estimated that it would purchase approximately £ 110 million (or $ 142 million) in liquidity bonds under this commitment.

Accrued investment income, which is reported in “other assets,” was $ 67 million as of March 31, 2025 and $ 64 million as of December 31, 2024.

As of June 30, 2025, the Company purchased approximately £ 55 million (or $ 75 million) in liquidity bonds and is committed to purchase an additional £ 55 million (or $ 75 million).

Accrued investment income, which is reported in “other assets,” was $ 67 million as of June 30, 2025 and $ 64 million as of December 31, 2024.

Available-for-Sale Fixed-Maturity Securities by Security Type

As of March 31, 2025

As of June 30, 2025

Security Type Percent

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____________________

(1) Based on amortized cost.

(2) Includes securities issued by taxable universities and hospitals.

government-agency obligations were approximately 68 % of mortgage-backed securities as of both March 31, 2025 and December 31, 2024, based on fair value.

(4) Includes an investment in an affiliated entity with amortized cost of $ 41 million and fair value of $ 42 million as of both March 31, 2025 and December 31, 2024.

(1) Percentages are based on amortized cost.

(2) Corporate securities include securities issued by taxable universities and hospitals.

government-agency obligations represented 73 % and 68 % of mortgage-backed securities as of June 30, 2025 and December 31, 2024, respectively, based on fair value.

(4) This category includes an investment in an affiliated entity with amortized cost of $ 41 million and fair value of $ 42 million as of both June 30, 2025 and December 31, 2024.

Gross Unrealized Loss by Length of Time

for Available-for-Sale Fixed-Maturity Securities for Which a Credit Loss was Not Recorded

As of March 31, 2025

As of June 30, 2025

Less than 12 months 12 months or more Total

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The Company considered the credit quality, cash flows, interest rate movements, ability to hold a security to recovery and intent to sell a security in determining whether a security had a credit loss.

The Company has determined that the unrealized losses recorded as of March 31, 2025 and December 31, 2024 were primarily related to higher interest rates rather than credit quality.

As of March 31, 2025, the Company did not intend to and was not required to sell investments in an unrealized loss position prior to expected recovery in value.

As of March 31, 2025, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 371 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2024, 438 securities had unrealized losses in excess of 10% of their carrying value.

The total unrealized loss for these securities was $ 202 million as of March 31, 2025 and $ 223 million as of December 31, 2024.

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of March 31, 2025 are shown below.

The Company has determined that the unrealized losses recorded as of June 30, 2025 and December 31, 2024 were primarily related to higher interest rates rather than credit quality.

As of June 30, 2025, the Company did not intend to and was not required to sell investments in an unrealized loss position prior to the expected recovery in value.

As of June 30, 2025, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 321 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2024, 438 securities had unrealized losses in excess of 10% of their carrying value.

The total unrealized loss for these securities was $ 169 million as of June 30, 2025 and $ 223 million as of December 31, 2024.

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2025 are shown below.

Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Distribution of Available-for-Sale Fixed-Maturity Securities by Contractual Maturity

As of March 31, 2025

As of June 30, 2025

Cost Estimated

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Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Based on fair value, fixed-maturity securities, short-term investments and cash that are either held in trust for the benefit of third-party ceding insurers in accordance with statutory requirements, placed on deposit to fulfill state licensing requirements or otherwise pledged or restricted totaled $ 82 million as of March 31, 2025 and $ 79 million as of December 31, 2024.

The investment portfolio also contains securities that are held in trust by certain AGL subsidiaries or are otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements with a fair value of $ 1,079 million and $ 1,135 million as of March 31, 2025 and December 31, 2024, respectively.

Based on fair value, fixed-maturity securities, short-term investments and cash that are either held in trust for the benefit of third-party ceding insurers in accordance with statutory requirements, placed on deposit to fulfill state licensing requirements or otherwise pledged or restricted totaled $ 79 million as of both June 30, 2025 and December 31, 2024.

The investment portfolio also contains securities that are held in trust by certain AGL subsidiaries or are otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements with a fair value of $ 1,092 million and $ 1,135 million as of June 30, 2025 and December 31, 2024, respectively.

Income from Investments

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Income from Investments

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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____________________

(1) Includes $ 7 million income on Loss Mitigation Securities for both first quarter 2025 and first quarter 2024.

(2) Fair value gains on trading securities pertaining to securities still held as of March 31, 2024 were $ 22 million for first quarter 2024.

(1) Amounts include $ 7 million income on Loss Mitigation Securities for both second quarter 2025 and second quarter 2024, and $ 14 million for both six months 2025 and six months 2024.

The increase in second quarter 2025 and six months 2025 is primarily due to investment income on CLO equity tranches in the available-for-sale portfolio.

Certain CLO equity tranche investments were reclassified to the available-for-sale fixed-maturity portfolio in the fourth quarter of 2024, with interest income now reported in net investment income, and changes in fair value reported in other comprehensive income (OCI).

The Company had previously held the CLO equity tranches in a Sound Point managed fund with changes in net asset value (NAV) reported in “equity in earnings (losses) of investees.”

(2) Fair value gains on trading securities pertaining to securities still held as of June 30, 2025 were $ 2 million for second quarter 2025 and $ 3 million for six months 2025.

Fair value gains on trading securities pertaining to securities still held as of June 30, 2024 were $ 14 million for second quarter 2024 and $ 31 million for six months 2024.

Fair Value Gains (Losses) on Trading Securities

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The CVIs are intended to provide creditors with additional recoveries tied to the outperformance of the Puerto Rico 5.5% sales and use tax receipts against May 2020 certified fiscal plan projections, subject to annual and lifetime caps.

As of March 31, 2025, the remaining CVIs had a fair value of $ 115 million.

As of June 30, 2025, the remaining CVIs had a fair value of $ 117 million.

The Company may sell in the future any CVIs it continues to hold.

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Net Realized Investment Gains (Losses)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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Change in the allowance for credit losses and intent to sell ( 3 ) ( 2 ) ( 13 ) 8

Other net realized gains (losses) ( 3 ) 1 ( 3 ) 1

Net realized investment gains (losses) $ ( 6 ) $ ( 6 ) $ ( 22 ) $ 2

____________________

(1) Change in the allowance for credit losses for all periods was primarily related to Loss Mitigation Securities.

The proceeds from sales of fixed-maturity securities classified as available-for-sale were $ 211 million in second quarter 2025, $ 129 million in second quarter 2024, $ 427 million in six months 2025 and $ 488 million in six months 2024.

The following table presents the roll forward of the allowance for the credit losses on available-for-sale fixed-maturity securities.

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for Available-for-Sale Fixed-Maturity Securities

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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In the case of excess spread, the financial assets contributed to VIEs generate interest income that is in excess of the interest payments on the debt issued by the VIE.

Such excess spread is typically distributed through the transaction’s cash flow waterfall and may be used to create additional credit enhancement, applied to redeem debt issued by the VIE (thereby, creating additional overcollateralization), or distributed to equity or other investors in the transaction.

The insurance subsidiaries are not primarily liable for the insured debt obligations issued by structured finance FG VIEs and would only be required to make payments on those insured debt obligations in the event that the issuer of such debt obligations defaults on any principal or interest due and only for the amount of the shortfall.

AGL’s and its insurance

Such excess spread is typically distributed through the transaction’s cash

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

subsidiaries’ creditors do not have any rights with regard to the collateral supporting the debt issued by the structured finance FG VIEs.

flow waterfall and may be used to create additional credit enhancement, applied to redeem debt issued by the VIE (thereby, creating additional overcollateralization), or distributed to equity or other investors in the transaction.

AGL’s and its insurance subsidiaries’ creditors do not have any rights with regard to the collateral supporting the debt issued by the structured finance FG VIEs.

Proceeds from sales, maturities, prepayments and interest from such underlying collateral may only be used to pay debt service on the respective FG VIEs’ liabilities.

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The structured finance FG VIEs’ liabilities that are not guaranteed by the insurance subsidiaries are considered to be without recourse, because the payment of principal and interest of these liabilities is wholly dependent on the performance of the FG VIEs’ assets.

The Company has elected the fair value option (FVO) for all assets and all liabilities of the structured finance FG VIEs, which are all RMBS as of both March 31, 2025 and December 31, 2024.

Upon initial adoption of the accounting guidance for VIEs in 2010, the Company elected to fair value its structured finance FG VIEs’ assets and liabilities as the carrying amount transition method was not practical, and to allow for consistency in the accounting for the assets and liabilities of its consolidated FG VIEs.

The change in fair value of all structured finance FG VIEs’ assets and liabilities is reported in “fair value gains (losses) on FG VIEs” in the condensed consolidated statement of operations, except for the change in fair value attributable to change in instrument-specific credit risk (ISCR) on the structured finance FG VIEs’ liabilities, which is reported in other comprehensive income (OCI).

As of both March 31, 2025 and December 31, 2024, the Company consolidated 23 structured finance FG VIEs.

Net fair value gains and losses on FG VIEs are expected to reverse to zero by the maturity of the FG VIEs’ debt, except for net premiums received and net claims paid by the insurance subsidiaries under the financial guaranty insurance contracts.

The Company has elected the fair value option (FVO) for the assets and liabilities of all of its structured finance FG VIEs, except for one VIE consolidated in second quarter 2025, and subsequently deconsolidated in July 2025.

Upon consolidation, the assets and liabilities of this VIE were recorded pursuant to the guidance in ASC 805, Business Combinations , which specifies that the VIE’s assets and liabilities are recorded at fair value except for a contract asset which is recognized and measured pursuant to ASC 606, Revenue from Contracts with Customers .

To allow for consistency in the accounting for the assets and liabilities of its consolidated FG VIEs, the Company elects the FVO if permissible under GAAP based on the nature of the VIE’s assets and liabilities.

The change in fair value of all structured finance FG VIEs’ assets and liabilities is reported in “fair value gains (losses) on FG VIEs” in the condensed consolidated statement of operations, except for the change in fair value attributable to the change in instrument-specific credit risk (ISCR) on the structured finance FG VIEs’ liabilities for which the FVO was elected, which is reported in OCI.

Interest income and interest expense are derived from the trustee reports and are also included in “fair value gains (losses) on FG VIEs.”

As of June 30, 2025 and December 31, 2024, the Company consolidated 24 and 23 structured finance FG VIEs, respectively.

Components of FG VIE Assets and Liabilities

Net fair value gains and losses on FG VIEs are expected to reverse to zero by the maturity of the FG VIEs’ debt, except for net premiums received and net claims paid by AG under its financial guaranty insurance contracts.

The Company’s estimate of expected loss to be paid (recovered) for FG VIEs is included in Note 4, Expected Loss to be Paid (Recovered).

The inception-to-date change in fair value of the FG VIEs’ liabilities with recourse attributable to the ISCR is calculated by holding all current period assumptions constant for each security and isolating the effect of the change in the Company’s CDS spread from the most recent date of consolidation to the current period.

In general, if the Company’s CDS spread tightens, more value will be assigned to the Company’s credit;

however, if the Company’s CDS spread widens, less value is assigned to the Company’s credit.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The table below shows the carrying value of FG VIEs’ assets and liabilities, segregated by type of collateral.

Consolidated FG VIEs by Type of Collateral

June 30, 2025 December 31, 2024

(in millions)

FG VIEs’ assets:

RMBS (3) $ 144 $ 147

Other (includes $ 32 at fair value in 2025) (1) (2)

Total FG VIEs’ assets $ 211 $ 147

FG VIEs’ liabilities with recourse:

RMBS (3) $ 152 $ 155

Other, at fair value (2) 34 —

Total FG VIEs’ liabilities with recourse $ 186 $ 155

FG VIEs’ liabilities without recourse:

RMBS (3) $ 9 $ 9

Other (includes $ 6 at fair value in 2025) (2)

Total FG VIEs’ liabilities without recourse $ 16 $ 9

____________________

(1) Includes a contract asset related to a services agreement of approximately $ 35 million as of June 30, 2025 accounted for in accordance with ASC 606, Revenue from Contracts with Customers , as well as debt and equity investments, and cash and cash equivalents.

(2) Other amounts represent the assets and liabilities of the FG VIE that was consolidated on June 30, 2025.

RMBS assets and liabilities are measured at fair value under the FVO.

The inception-to-date change in fair value of the FG VIEs’ liabilities with recourse measured at fair value under the FVO, attributable to the ISCR is calculated by holding all current period assumptions constant for each security and isolating the effect of the change in the Company’s CDS spread from the most recent date of consolidation to the current period.

In general, if the Company’s CDS spread tightens, more value will be assigned to the Company’s credit;

however, if the Company’s CDS spread widens, less value is assigned to the Company’s credit.

Selected Information for FG VIEs’ Assets and Liabilities

Measured under the FVO

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in millions)

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The assets of the CIVs are not available to creditors of the Company, other than creditors of the applicable CIVs.

In addition, creditors of the CIVs have no recourse against the assets of the Company, other than the assets of such applicable CIVs.

In addition, creditors of the CIVs have no

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

recourse against the assets of the Company, other than the assets of such applicable CIVs.

Liquidity available at the Company’s CIVs is not available for corporate liquidity needs, except to the extent of the Company’s investment in the funds, subject to redemption provisions.

As of March 31, 2025, the Company consolidated one CIV with assets of $ 119 million, consisting of $ 1 million of cash and $ 118 million of investments with Sound Point affiliated entities.

As of December 31, 2024, the Company consolidated one active CIV with assets of $ 101 million, consisting of $ 2 million of cash and $ 99 million of investments with Sound Point affiliated entities.

Noncontrolling Interest in CIVs

Noncontrolling interest (NCI) represents the portion of the consolidated funds not owned by the Company and includes ownership interests of third parties and former employees.

As of June 30, 2025 and December 31, 2024, the Company consolidated one active CIV with assets of $ 121 million and $ 101 million, respectively, consisting primarily of investments with Sound Point affiliated entities.

Noncontrolling Interest in FG VIEs and CIVs

Noncontrolling interest (NCI) represents the portion of the consolidated FG VIEs and CIVs not owned by the Company and includes ownership interests of third parties and former employees.

The NCI is nonredeemable and presented on the statement of shareholders’ equity.

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As described in Note 3, Outstanding Exposure, the Company monitors all policies in the insured portfolio.

Of the approximately 15 thousand policies monitored as of March 31, 2025, approximately 14 thousand policies are not within the scope of FASB ASC 810, Consolidation , because these financial guaranties relate to the debt obligations of governmental organizations or financing entities established by a governmental organization.

Of the approximately 15 thousand policies monitored as of June 30, 2025, approximately 14 thousand policies are not within the scope of FASB ASC 810, Consolidation , because these financial guaranties relate to the debt obligations of governmental organizations or financing entities established by a governmental organization.

The majority of the remaining policies involve transactions where the Company is not deemed to currently have control over the FG VIEs’ most significant activities.

As of both March 31, 2025 and December 31, 2024, the Company identified 50 policies that contain provisions and experienced events that may trigger consolidation.

As of June 30, 2025 and December 31, 2024, the Company identified 51 and 50 policies, respectively, that contain provisions and experienced events that may trigger consolidation.

The Company holds variable interests in non-FG VIEs which are not consolidated, as the Company is not the primary beneficiary.

As of March 31, 2025, the Company’s maximum exposure to losses relating to these VIEs was $ 766 million, which is limited to the carrying value of these assets.

As of June 30, 2025, the Company’s maximum exposure to losses relating to these VIEs was $ 798 million, which is limited to the carrying value of these assets.

Fair Value Measurement

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Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e., exit or transfer price).

The price represents the price available in the principal market for the asset or

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The price represents the price available in the principal market for the asset or liability.

If there is no principal market, then the price is based on a hypothetical market that maximizes the value received for an asset or minimizes the amount paid for a liability (i.e., the most advantageous market).

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As markets and products develop and the pricing transparency for certain products changes, the Company may refine its methodologies and assumptions.

During first quarter 2025, no changes were made to the Company’s valuation models that had (or are expected to have) a material impact on the Company’s condensed consolidated balance sheets or statements of operations and comprehensive income.

During six months 2025, no changes were made to the Company’s valuation models that had (or are expected to have) a material impact on the Company’s condensed consolidated balance sheets or statements of operations and comprehensive income.

The Company’s valuation methods produce fair values that may not be indicative of net realizable value or future fair values.

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Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect Company estimates of market assumptions.

The fair value hierarchy prioritizes model inputs into three broad levels, with Level 1 being the highest and Level 3 the lowest.

The fair value hierarchy prioritizes

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

model inputs into three broad levels, with Level 1 being the highest and Level 3 the lowest.

The categorization, of an asset or liability, within the hierarchy is based on the lowest level of significant input to its valuation.

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Level 3 financial instruments include those for which the determination of fair value requires significant management judgment or estimation.

There were transfers of securities into Level 3 in the investment portfolio and in CIVs due to changes in observability of pricing inputs in first quarter 2024.

There were transfers of securities into Level 3 in the investment portfolio and CIVs due to changes in observability of pricing inputs in six months 2024.

There were no other transfers from or into Level 3 during the periods presented.

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The pricing services evaluate each asset class based on relevant market and credit information, perceived market movements and sector news.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

In many cases, benchmark yields have proven to be more reliable indicators of the market for a security, as compared to reported trades for infrequently traded securities and distressed transactions.

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The valuation of fixed-maturity securities is more subjective when markets are less liquid due to the lack of market-based inputs.

As of March 31, 2025, the Company used models to price 175 securities.

As of June 30, 2025, the Company used models to price 173 securities.

All Level 3 securities were priced with the assistance of independent third parties.

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Due to their approaching maturity, the cost of discount notes approximates fair value.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Committed Capital Securities

AG has entered into put agreements with eight separate custodial trusts allowing it to issue an aggregate of $ 400 million of non-cumulative redeemable perpetual preferred securities to the trusts in exchange for cash.

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The Company classified assets included in the Company’s various supplemental executive retirement plans as either Level 1 or Level 2.

The fair value of these assets is based on the observable published daily values of the underlying mutual funds included in the plans (Level 1) or based upon the net asset value (NAV) of the funds if a published daily value is not available (Level 2).

The fair value of these assets is based on the observable published daily values of the underlying mutual funds included in the plans (Level 1) or based upon the NAV of the funds if a published daily value is not available (Level 2).

The NAVs are based on observable information.

The change in fair value of these assets is reported in “other operating expenses” in the condensed consolidated statements of operations.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Contracts Accounted for as Credit Derivatives

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A credit derivative liability on protection sold is the result of contractual cash inflows on in-force transactions that are lower than what a hypothetical financial guarantor could receive if it sold protection on the same risk as of the reporting date.

Consistent with previous years, market conditions as of March 31, 2025 were such that market prices of the Company’s CDS contracts were not available.

Consistent with previous years, market conditions as of June 30, 2025 were such that market prices of the Company’s CDS contracts were not available.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Assumptions and Inputs

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This assumption can have the effect of limiting the amount of unrealized gains that are recognized on certain CDS contracts.

The minimum premium had no effect on the fair value of CDS contracts as of March 31, 2025 and December 31, 2024.

The minimum premium had no effect on the fair value of CDS contracts as of both June 30, 2025 and December 31, 2024.

FG VIEs’ Assets and Liabilities

Structured finance FG VIEs’ assets and liabilities are carried at fair value under the FVO and are classified as Level 3.

Structured finance FG VIEs’ assets and liabilities for which the Company elected the FVO are carried at fair value and classified as Level 3.

The fair value of the residential mortgage loans in the FG VIEs’ assets is generally sensitive to changes in estimated prepayment speeds;

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yields implied by market prices for similar securities;

and, as applicable, house price depreciation/appreciation rates based on

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

macroeconomic forecasts.

and, as applicable, house price depreciation/appreciation rates based on macroeconomic forecasts.

Significant changes to some of these inputs could have materially changed the fair value of the FG VIEs’ assets and the implied collateral losses within these transactions.

In general, the fair value of the FG VIEs’ assets is most sensitive to changes in the projected collateral losses, where an increase in collateral losses typically leads to a potential decrease in the fair value of FG VIEs’ assets, while a decrease in collateral losses typically leads to an increase in the fair value of FG VIEs’ assets.

The prices of the assets and liabilities of the FG VIEs are generally determined with the assistance of an independent third party and based on a discounted cash flow approach.

The prices of these assets and liabilities of the structured finance FG VIEs are generally determined with the assistance of an independent third party and based on a discounted cash flow approach.

The third party pricing service utilizes an internal model to determine an appropriate yield at which to discount the cash flows of the security by factoring in collateral types, weighted-average lives and other structural attributes specific to the security being priced.

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In general, a longer time period until the Company’s expected loss payments typically leads to a decrease in the value of the Company’s insurance and a decrease in the fair value of the Company’s FG VIEs’ liabilities with recourse, while a shorter time period until the Company’s expected loss payments typically could lead to an increase in the value of the Company’s insurance and an increase in the fair value of the Company’s FG VIEs’ liabilities with recourse.

The change in fair value of FG VIEs’ assets and liabilities is reported in “fair value gains (losses) on FG VIEs” in the condensed consolidated statement of operations, except for the change in fair value attributable to change in ISCR on FG VIEs’ liabilities, which is reported in other comprehensive income.

Interest income and interest expense are derived from the trustee reports and also included in “fair value gains (losses) on FG VIEs.”

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Assets and Liabilities of CIVs

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Significant changes to any of the inputs described above could have a material effect on the fair value of the CIV’s assets and liabilities.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes in the fair value of assets and liabilities of CIVs, interest income and interest expense are reported in “fair value gains (losses) on consolidated investment vehicles” in the condensed consolidated statements of operations.

Amounts recorded at fair value in the Company’s financial statements are presented in the tables below.

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

As of March 31, 2025

As of June 30, 2025

Fair Value Hierarchy

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___________________

(1) Includes Level 3 mortgage loans that are recorded at fair value on a non-recurring basis.

(2) Includes FG VIEs’ liabilities with recourse and FG VIEs’ liabilities without recourse.

(1) Other invested assets includes Level 3 mortgage loans that are recorded at fair value on a non-recurring basis.

(2) FG VIEs’ liabilities include those with and without recourse, some of which are measured at a fair value on a non-recurring basis as June 30, 2025.

See Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

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Changes in Level 3 Fair Value Measurements

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during first quarter 2025 and first quarter 2024.

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during second quarter 2025, second quarter 2024, six months 2025 and six months 2024.

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

First Quarter 2025

Second Quarter 2025

Fixed-Maturity Securities, Available-for-Sale

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(in millions)

Fair value as of December 31, 2024 $ 10 $ — $ 145 $ 1,031 $ 5 $ 147 $ 99 $ 5

Fair value as of March 31, 2025 $ 10 $ 5 $ 144 $ 983 $ 5 $ 145 $ 118 $ 6

Total pre-tax realized and unrealized gains (losses) recorded in:

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Settlements ( 2 ) — ( 7 ) ( 24 ) ( 1 ) ( 5 ) — —

Consolidations — — — — — 9 — —

Fair value as of June 30, 2025 $ 10 $ 84 $ 142 $ 977 $ 4 $ 153 $ 121 $ 5

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2025 included in:

Earnings $ — $ 3 (2) $ 3 (4) $ ( 1 ) (3)

OCI $ — $ 10 $ 4 $ 10 $ —

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Second Quarter 2025

Credit Derivative

Liability, net (5) FG VIEs’ Liabilities (8)

(in millions)

Fair value as of March 31, 2025 $ ( 30 ) $ ( 163 )

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2025 included in:

Total pre-tax realized and unrealized gains (losses) recorded in:

Net income (loss) 1 (6) ( 3 ) (2)

Other comprehensive income (loss) — 1

Settlements — 4

Fair value as of June 30, 2025 $ ( 29 ) $ ( 161 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2025 included in:

Earnings $ 1 (6) $ ( 2 ) (2)

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Second Quarter 2024

Fixed-Maturity Securities, Available-for-Sale Assets of CIVs

Subdivisions RMBS Asset-

Securities FG VIEs’

Assets Equity Securities Structured Products Other

(in millions)

Fair value as of March 31, 2024 $ 6 $ 153 $ 821 $ 167 $ 89 $ 220 $ 5

Total pre-tax realized and unrealized gains (losses) recorded in:

Net income (loss) — 4 (1) 1 (1) ( 1 ) (2) 4 (2) ( 9 ) (4) 2 (3)

Other comprehensive income (loss) 2 1 6 — — — ( 1 )

Purchases — — 1 — — 22 —

Sales — — — — — ( 8 ) —

Settlements ( 1 ) ( 8 ) ( 34 ) ( 6 ) — — —

Fair value as of June 30, 2024 $ 7 $ 150 $ 795 $ 160 $ 93 $ 225 $ 6

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2024 included in:

Earnings $ ( 2 ) (2) $ 5 (2) $ ( 8 ) (4) $ 2 (3)

OCI $ 2 $ 1 $ 6 $ ( 1 )

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

First Quarter 2025

Second Quarter 2024

Credit Derivative

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(in millions)

Fair value as of March 31, 2024 $ ( 39 ) $ ( 399 )

Total pre-tax realized and unrealized gains (losses) recorded in:

Net income (loss) 6 (6) — (2)

Other comprehensive income (loss) — 2

Settlements ( 1 ) 4

Fair value as of June 30, 2024 $ ( 34 ) $ ( 393 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2024 included in:

Earnings $ 3 (6) $ 2 (2)

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Six Months 2025

Fixed-Maturity Securities, Available-for-Sale

Subdivisions Corporate RMBS Asset-

Securities Fixed-Maturity Securities, Trading FG VIEs’

Assets Assets of CIVs, Equity Securities Other

(in millions)

Fair value as of December 31, 2024 $ 10 $ — $ 145 $ 1,031 $ 5 $ 147 $ 99 $ 5

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Other comprehensive income (loss) — 10 6 11 — — — ( 1 )

Purchases — 74 — — — — — —

Sales — — — ( 12 ) — — — —

Settlements ( 2 ) — ( 13 ) ( 71 ) ( 1 ) ( 10 ) — —

Fair value as of March 31, 2025 $ ( 30 ) $ ( 163 )

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2025 included in:

Consolidations — — — — — 9 — —

Fair value as of June 30, 2025 $ 10 $ 84 $ 142 $ 977 $ 4 $ 153 $ 121 $ 5

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2025 included in:

Earnings $ — $ 5 (2) $ 22 (4) $ 1 (3)

OCI $ — $ 10 $ 6 $ 11 $ ( 1 )

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

Six Months 2025

Credit Derivative

Liability, net (5) FG VIEs’ Liabilities (8)

(in millions)

Fair value as of December 31, 2024 $ ( 29 ) $ ( 164 )

Total pre-tax realized and unrealized gains (losses) recorded in:

Net income (loss) 105 (6) ( 5 ) (2)

Other comprehensive income (loss) — —

Settlements ( 105 ) 8

Fair value as of June 30, 2025 $ ( 29 ) $ ( 161 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2025 included in:

Earnings $ — $ ( 4 ) (2)

Assured Guaranty Ltd.

1 unchanged sentence

Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

First Quarter 2024

Six Months 2024

Fixed-Maturity Securities, Available-for-Sale Assets of CIVs

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Transfers into Level 3 — — 20 — 3 10 —

Fair value as of March 31, 2024 $ 6 $ 153 $ 821 $ 167 $ 89 $ 220 $ 5

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2024 included in:

Fair value as of June 30, 2024 $ 7 $ 150 $ 795 $ 160 $ 93 $ 225 $ 6

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2024 included in:

Earnings $ ( 5 ) (2) $ 12 (4) $ ( 2 ) (4) $ ( 8 ) (3)

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Roll Forward of Level 3 Assets (Liabilities) at Fair Value on a Recurring Basis

First Quarter 2024

Six Months 2024

Credit Derivative

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Settlements — 152

Fair value as of March 31, 2024 $ ( 39 ) $ ( 399 )

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2024 included in:

Fair value as of June 30, 2024 $ ( 34 ) $ ( 393 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2024 included in:

Earnings $ 7 (6) $ 4 (2)

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(8) Includes FG VIEs’ liabilities with recourse and FG VIEs’ liabilities without recourse.

(9) Reported in “fair value gains (losses) on trading securities.”

Assured Guaranty Ltd.

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Quantitative Information About Level 3 Fair Value Inputs

As of March 31, 2025

As of June 30, 2025

Financial Instrument Description Fair Value Assets (Liabilities)

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___________________

(1) Discounted cash flow is used as the primary valuation technique.

(2) Excludes several investments reported in “other invested assets” with a fair value of $ 3 million.

(1) Discounted cash flows are used as the primary valuation technique.

(2) This amount excludes several investments reported in “other invested assets” with a fair value of $ 3 million.

(3) The primary valuation technique uses the income and/or market approach.

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____________________

(1) Discounted cash flow is used as the primary valuation technique.

(2) Excludes several investments reported in “other invested assets” with a fair value of $ 4 million.

(1) Discounted cash flows are used as the primary valuation technique.

(2) This amount excludes several investments reported in “other invested assets” with a fair value of $ 4 million.

(3) The primary valuation technique uses the income and/or market approach.

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Fair Value of Financial Instruments Not Carried at Fair Value

As of March 31, 2025 As of December 31, 2024

As of June 30, 2025 As of December 31, 2024

Amount Estimated

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On December 27, 2023, the Bermuda government enacted a corporate income tax at the rate of 15 % which applies to the Bermuda Subsidiaries (collectively, AG Re, AGRO and Cedar Personnel Ltd.) for accounting periods starting on or after January 1, 2025.

On July 4, 2025, the U.S.

Congress passed budget reconciliation bill H.R.

1 referred to as the One Big Beautiful Bill Act (OBBBA).

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company is currently assessing its impact on its consolidated financial statements but does not expect it to have a material impact.

AGUS files a consolidated federal income tax return with all of its U.S.

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and its subsidiaries, AGRO and AG Intermediary Inc., file their own consolidated federal income tax return.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Provision for Income Taxes

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marginal corporate tax rate of 25 %.

For first quarter 2025, the Company’s effective tax rate was 18.9 % compared to 21.4 % in the prior year period.

The Company’s effective tax rate was 20.9 %, 14.5 %, 19.7 % and 18.6 % for second quarter 2025, second quarter 2024, six months 2025 and six months 2024, respectively.

The effective tax rates are different from the expected tax provision (benefit) primarily due to a tax provision for U.S.

state taxes, a tax benefit for U.S.

tax-exempt interest and the exclusion of income from noncontrolling interests.

In addition, the prior period included a tax provision for foreign taxes and the global minimum tax.

During first quarter 2025, the IRS audit of AGUS’s 2018 and 2019 tax years closed with no impact to previously accrued taxes.

As of March 31, 2025, AGUS had open tax years with the IRS for 2021 forward and is not currently under audit.

As of March 31, 2025, Assured Guaranty Overseas US Holdings Inc.

tax-exempt interest, and foreign taxes.

In addition, second quarter 2024 and six months 2024 included the global minimum tax.

During six months 2025, the IRS audit of AGUS’s 2018 and 2019 tax years closed with no impact to previously accrued taxes.

As of June 30, 2025, AGUS had open tax years with the IRS for 2021 forward and is currently under audit for the 2021 tax year.

As of June 30, 2025, Assured Guaranty Overseas US Holdings Inc.

had open tax years with the IRS for 2021 forward and is not currently under audit with the IRS.

In December 2023, His Majesty’s Revenue & Customs (HMRC) issued an inquiry into the Company’s 2021 U.K.

As of March 31, 2025, the Company’s U.K.

As of June 30, 2025, the Company’s U.K.

subsidiaries had open tax years with HMRC for 2021 forward.

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See Note 4, Expected Loss to be Paid (Recovered), Loss Estimation Process, Public Finance, Puerto Rico, for a description of such actions.

The impact, if any, of these and other proceedings on the amount of recoveries the Company receives and losses it pays in the future is uncertain, and the impact of any one or more of these proceedings during any quarter or year could be material to the Company’s results of operations in that particular quarter or year.

The Company also receives subpoenas and interrogatories from regulators from time to time.

The impact, if any, of these and other proceedings on the amount of recoveries the Company receives and losses it pays in the future is uncertain, and the impact of any one or more of these

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

proceedings during any quarter or year could be material to the Company’s results of operations in that particular quarter or year.

The Company also receives subpoenas and interrogatories from regulators from time to time.

Shareholders’ Equity

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Changes in Accumulated Other Comprehensive Income (Loss) by Component

First Quarter 2025

Second Quarter 2025

Net Unrealized Gains (Losses) on Investments with:

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(in millions)

Balance, December 31, 2024 $ ( 235 ) $ ( 99 ) $ ( 18 ) $ ( 37 ) $ 4 $ ( 385 )

Balance, March 31, 2025 $ ( 183 ) $ ( 78 ) $ ( 19 ) $ ( 38 ) $ 4 $ ( 314 )

Other comprehensive income (loss) before reclassifications 85 ( 3 ) — 2 — 84

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— ( 3 ) — — — ( 3 )

Fair value gains (losses) on FG VIEs — — ( 1 ) — — ( 1 )

Total before tax

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Other comprehensive income (loss) 85 ( 1 ) 1 2 — 87

Balance, June 30, 2025 $ ( 98 ) $ ( 79 ) $ ( 18 ) $ ( 36 ) $ 4 $ ( 227 )

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Second Quarter 2024

Net Unrealized Gains (Losses) on Investments with:

FG VIEs’ Liabilities with Recourse Cumulative

Adjustment Cash Flow

Hedge Total AOCI

No Credit Impairment Credit Impairment

(in millions)

Balance, March 31, 2024 $ ( 231 ) $ ( 103 ) $ ( 21 ) $ ( 37 ) $ 5 $ ( 387 )

Other comprehensive income (loss) before reclassifications ( 15 ) 4 1 ( 1 ) — ( 11 )

Amounts reclassified from AOCI to:

Net realized investment gains (losses)

( 4 ) ( 2 ) — — — ( 6 )

Total before tax

( 4 ) ( 2 ) — — — ( 6 )

Tax (provision) benefit

1 ( 1 ) — — — —

Total amount reclassified from AOCI, net of tax ( 3 ) ( 3 ) — — — ( 6 )

Other comprehensive income (loss) ( 12 ) 7 1 ( 1 ) — ( 5 )

Balance, June 30, 2024 $ ( 243 ) $ ( 96 ) $ ( 20 ) $ ( 38 ) $ 5 $ ( 392 )

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes in Accumulated Other Comprehensive Income (Loss) by Component

First Quarter 2024

Six Months 2025

Net Unrealized Gains (Losses) on Investments with:

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Tax (provision) benefit

Total amount reclassified from AOCI, net of tax ( 6 ) ( 10 ) ( 1 ) — — ( 17 )

Other comprehensive income (loss) 137 20 — 1 — 158

Balance, June 30, 2025 $ ( 98 ) $ ( 79 ) $ ( 18 ) $ ( 36 ) $ 4 $ ( 227 )

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Six Months 2024

Net Unrealized Gains (Losses) on Investments with:

FG VIEs’ Liabilities with Recourse Cumulative

Adjustment Cash Flow

Hedge Total AOCI

No Credit Impairment Credit Impairment

(in millions)

Balance, December 31, 2023 $ ( 202 ) $ ( 104 ) $ ( 20 ) $ ( 38 ) $ 5 $ ( 359 )

Other comprehensive income (loss) before reclassifications ( 46 ) 14 ( 1 ) — — ( 33 )

Amounts reclassified from AOCI to:

Net realized investment gains (losses)

( 6 ) 8 — — — 2

Fair value gains (losses) on FG VIEs — — ( 1 ) — — ( 1 )

Total before tax

( 6 ) 8 ( 1 ) — — 1

Tax (provision) benefit

1 ( 2 ) — — — ( 1 )

Total amount reclassified from AOCI, net of tax ( 5 ) 6 ( 1 ) — — —

Other comprehensive income (loss) ( 41 ) 8 — — — ( 33 )

Balance, March 31, 2024 $ ( 231 ) $ ( 103 ) $ ( 21 ) $ ( 37 ) $ 5 $ ( 387 )

Balance, June 30, 2024 $ ( 243 ) $ ( 96 ) $ ( 20 ) $ ( 38 ) $ 5 $ ( 392 )

Share Repurchases

The repurchase program may be modified, extended or terminated by AGL’s Board of Directors at any time and does not have an expiration date.

As of May 8, 2025, the remaining amount the Company was authorized to purchase was approximately $ 181 million of its common shares.

The repurchase program may be modified, extended or terminated by AGL’s Board of Directors (the Board) at any time and does not have an expiration date.

On August 6, 2025, the Board authorized the repurchase of an additional $ 300 million of the Company’s common shares.

As of August 6, 2025, the remaining amount the Company was authorized to purchase was approximately $ 356 million of its common shares.

The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions.

The timing, form and amount of the share repurchases under the program are at

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company’s capital position, legal requirements and other factors.

Share Repurchases

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2025 (January 1 - March 31) 1,335,228 120 89.72

2025 (April 1 - May 8) 603,103 51 84.43

2025 (April 1 - June 30) 1,537,505 131 85.03

2025 (July 1 - August 6) 537,550 45 84.16

Total 2025 3,410,283 $ 296 $ 86.73

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Computation of Earnings Per Share

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions, except per share amounts)

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements