What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-08-08 compared with 2025-05-09 · 351 added, 231 removed, 1101 unchanged (35% of the section changed)

9 unchanged sentences

(i) significant changes in inflation, interest rates, the world’s credit markets or segments thereof, credit spreads, foreign exchange rates, tariff regimes or general economic conditions, including the possibility of a recession or stagflation;

(ii) geopolitical risk, terrorism and political violence risk, including those arising out of Russia’s invasion of Ukraine and intentional or accidental escalation between The North Atlantic Treaty Organization and Russia, conflicts in South Asia and the Middle East, confrontation over Iran’s nuclear program, the polarized political environment in the United States (U.S.), and strategic competition and tensions between the U.S.

(ii) geopolitical risk, terrorism and political violence risk, including those arising out of Russia’s invasion of Ukraine and intentional or accidental escalation between The North Atlantic Treaty Organization and Russia, conflict in the Middle East, confrontation over Iran’s nuclear program, the polarized political environment in the United States (U.S.), and strategic competition and tensions between the U.S.

(iii) cybersecurity risk and the impacts of artificial intelligence, machine learning and other technological advances, including potentially increasing the risks of malicious cyber attacks, dissemination of misinformation, and disruption of markets, including the markets in which the Company participates;

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(vi) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty’s insurance;

(vii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments, their related authorities, public corporations and other obligors that Assured Guaranty insures or reinsures;

(viii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including below-investment-grade (BIG) healthcare, United Kingdom (U.K.) regulated utilities, European renewable energy, and Puerto Rico Electric Power Authority (PREPA) exposures;

(vii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing, changes in applicable laws or regulations or other factors will result in credit losses or liquidity claims on obligations of state, territorial and local governments, their related authorities, public corporations and other obligors that Assured Guaranty insures or reinsures;

(viii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including below-investment-grade (BIG) healthcare, United Kingdom (U.K.) regulated utility, European renewable energy, and Puerto Rico Electric Power Authority (PREPA) exposures;

(ix) the impact of Assured Guaranty satisfying its obligations under insurance policies with respect to legacy insured Puerto Rico bonds;

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(xii) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to other negative or unanticipated consequences;

(xiii) the possibility that Assured Guaranty’s mergers, acquisitions, divestitures and other strategic transactions, including the transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP) and/or merger of Assured Guaranty Municipal Corp.

(AGM) with and into Assured Guaranty Inc.

(AG, formerly Assured Guaranty Corp.), do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences;

(xiv) the inability to control the business, management or policies of entities in which Assured Guaranty holds a minority interest;

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(xvii) the inability of Assured Guaranty to access external sources of capital on acceptable terms;

(xviii) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, including tariffs, or other governmental actions;

(xviii) noncompliance with, and/or changes in, applicable laws or regulations, including insurance, bankruptcy and tax laws, tariffs, or other governmental actions;

(xix) the possibility that legal or regulatory decisions or determinations subject Assured Guaranty or obligations that it insures or reinsures to negative consequences;

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(xxi) loss of key personnel;

(xxii) changes in applicable

accounting policies or practices;

(xxiii) public health crises, including pandemics and endemics, and the governmental and private actions taken in response to such events;

(xxii) changes in applicable accounting policies or practices;

(xxiii) public health crises,

including pandemics and endemics, and the governmental and private actions taken in response to such events;

(xxiv) natural or man-made catastrophes;

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Accordingly, investors should monitor the Company Statements, Investor Information and Businesses portions of the Company’s website as well as the Company’s social media account on LinkedIn, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s website is not incorporated by reference into, and is not a part of, this report.

The information contained on, or that may be accessed through, the Company’s website and social media account is not incorporated by reference into, and is not a part of, this report.

The Company reports its results of operations in two distinct segments, Insurance and Asset Management, consistent with the manner in which the Company’s chief operating decision maker reviews the business to assess performance and allocate resources.

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goods trade deficits.

The announcement of global tariffs caused stock markets to drop, disrupted international trade, sent shocks through the global economy, and heightened volatility in the financial markets.

subsequently paused newly announced tariffs for most countries and suspended “reciprocal tariffs” on all countries except China.

As of May 8, 2025, China faces U.S.

tariffs of at least 145% as trade tensions deepen with the U.S., while the U.S.

maintains a 10% universal tariff for other countries as significant uncertainty remains.

The announcement of global tariffs disrupted international trade, sent shocks through the global economy, and heightened volatility in the financial markets.

subsequently postponed newly announced reciprocal tariffs to August 7, 2025.

As of August 7, 2025, the U.S.

has reached agreements with several countries while lifting its pause on “reciprocal tariffs” for other countries as significant uncertainty remains.

tariffs can add to inflation, and the Company believes that ongoing uncertainty may increase volatility in U.S.

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However, market volatility may also cause credit spreads to widen as investors seek security, which tends to create new business opportunities for the Company.

At the end of March 2025, the U.S.

unemployment rate, seasonally adjusted, stood at 4.2% near where it started the year at 4.1%.

According to the three-month period ended March 31, 2025 (first quarter 2025) advance estimate released by the U.S.

Bureau of Economic Analysis, real gross domestic product (GDP) decreased at an annual rate of 0.3% in first quarter 2025, primarily reflecting an increase in imports, which are a subtraction in the calculation of GDP, and a decrease in government spending, compared to a real GDP increase of 2.4% in the fourth quarter of 2024.

At the end of June 2025, the U.S.

unemployment rate, seasonally adjusted, stood at 4.1%, the same as where it started the year.

According to the second quarter 2025 advance estimate released by the U.S.

Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 3.0% in second quarter 2025, compared to a real GDP decrease of 0.5% in the first quarter of 2025.

According to the U.S.

Bureau of Labor Statistics, the inflation rate in the U.S.

before seasonal adjustment for the 12-month period ending March 2025, as measured by the Consumer Price Index for All Urban Consumers, was 2.4%, as compared to 3.5% for the 12-month period ending March 2024.

before seasonal adjustment for the 12-month period ending June 2025, as measured by the Consumer Price Index for All Urban Consumers, was 2.7%, as compared to 3.0% for the 12-month period ending June 2024.

According to the U.K.

Office for National Statistics, the Consumer Prices Index including owner occupiers’ housing costs rose 3.4% for the 12 months through March 2025, as compared to 3.8% for the 12 months through March 2024.

Office for National Statistics, the Consumer Prices Index including owner occupiers’ housing costs rose 4.1% for the 12 months through June 2025, as compared to 2.8% for the 12 months through June 2024.

The Company believes that higher inflation may put pressure on the budgets of obligors whose obligations it guarantees and make defaults more likely.

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increases reported net par outstanding for certain U.K.

exposures with approximately $24.1 billion of net par outstanding as of March 31, 2025, and also increases projected future installment premiums on the portion of such exposure that pays at least a portion of the premium on an installment basis over the term of the exposure.

exposures with approximately $25.8 billion of net par outstanding as of June 30, 2025, and also increases projected future installment premiums on the portion of such exposure that pays at least a portion of the premium on an installment basis over the term of the exposure.

At its September 17-18, 2024 meeting, the Federal Open Market Committee (FOMC) decided to lower the federal funds rate, which was a reversal of the rate increases it had initiated in March 2022 to combat inflation.

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From September 2024 through December 2024, the FOMC lowered the federal funds rate from a target range of 5.25% to 5.50% to a range of 4.25% to 4.50%.

At its January 28-29, 2025, March 18-19, 2025 and May 6-7, 2025 meetings, the FOMC held the federal funds at a range of 4.25% to 4.50%, stating that it seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.

At the FOMC’s first five meetings of 2025, including most recently at its July 29-30, 2025 meeting, it held the federal funds rate at a range of 4.25% to 4.50%, stating that it seeks to achieve maximum employment and inflation at the rate of 2% over the longer run.

In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the FOMC has indicated it will carefully assess incoming data, the evolving outlook, and the balance of risks.

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public finance.

The MMD rate averaged 4.04% for the quarter ended March 2025, higher than the 3.74% average for the quarter ended December 2024 and higher than the 3.57% average for the quarter ended March 2024.

Meanwhile, the difference, or credit spread, between the 30-year BBB-rated general obligation relative to the 30-year AAA MMD averaged 90 basis points (bps) for the quarter ended March 2025, which is the same as the 90 bps average for the quarter

ended December 2024, and modestly narrower than the 92 bps average for the quarter ended March 2024.

The MMD rate averaged 4.47% for the quarter ended June 2025, higher than the 4.03% average for the quarter ended March 2025 and higher than the 3.82% average for the quarter ended June 2024.

Meanwhile, the difference, or credit spread, between the 30-year BBB-rated general obligation relative to the 30-year AAA MMD averaged 90 basis points (bps) for the quarter ended June 2025, which is the same as the 90 bps average for the

quarter ended March 2025 and the quarter ended June 2024.

The Company believes that wider spreads could permit it to increase its premium rates on new business.

According to Freddie Mac, the 30-year fixed-rate mortgage rate averaged 6.65% for the week ending March 27, 2025, lower than the 30-year mortgage rate average of 6.79% from one year ago.

According to Freddie Mac, the 30-year fixed-rate mortgage rate averaged 6.77% for the week ending June 26, 2025, lower than the 30-year mortgage rate average of 6.86% from one year ago.

The Company believes that restricted housing inventory continues to influence home prices where demand outpaces supply.

Higher housing prices may benefit distressed residential mortgage-backed securities (RMBS) the Company insures.

The National Association of Realtors reported that year-over-year existing-home sales decreased 2.4% from March 2024 to March 2025, and that the median existing-home sales price increased from March 2024 ($392,900) to March 2025 ($403,700), a 2.7% increase.

The National Association of Realtors reported that there was no change in year-over-year existing-home sales from June 2024 to June 2025, and that the median existing-home sales price increased from June 2024 ($426,900) to June 2025 ($435,300), a 2% increase.

Key Business Strategies

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infrastructure and global structured finance markets, the Company believes its financial guaranty product is competitive with other financing options.

For example, certain investors may receive advantageous capital requirement treatment with the addition of the Company’s guaranty.

In the infrastructure market, the Company's financial guaranty can enhance the insured obligation's rating, lower the cost of long-term funding, and enhance the liquidity and transferability of debt obligations.

Certain investors may receive advantageous capital requirement treatment with the addition of the Company’s financial guaranty.

The Company considers its involvement in both infrastructure and structured finance transactions to be beneficial because such transactions diversify both the Company’s business opportunities and its risk profile beyond U.S.

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Based on Sale Date

First Quarter 2025 First Quarter 2024 Year Ended December 31, 2024

Six Months 2025 (2) Six Months 2024 (2) Year Ended December 31, 2024

(dollars in billions, except number of issues and percentages)

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The table excludes private placements and Corporate-CUSIP transactions insured by Assured Guaranty, certain of which the Company also considers to be public finance business.

The Company also considers opportunities to acquire financial guaranty portfolios, whether by acquiring financial guarantors that are no longer actively writing new business or their insured portfolios, generally through reinsurance or novations.

(2) Six-month period ended June 30, 2025 (six months 2025) and six-month period ended June 30, 2024 (six months 2024).

In addition, the Company considers opportunities to acquire financial guaranty portfolios, whether by acquiring financial guarantors that are no longer actively writing new business or their insured portfolios, generally through reinsurance or novations.

These transactions enable the Company to improve its future earnings and deploy excess capital.

The Company seeks to expand its financial guaranty business geographically by entering new markets;

in 2024, the Company opened new offices in Australia and Singapore.

The Company also intends to broaden its insurance lines of business, including recent efforts to pursue opportunities with subscription finance facilities, specialty insurance products with risk profiles similar to structured finance exposures offered in financial guaranty form, and life and annuity reinsurance.

Merger of the U.S.

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On August 1, 2024, the Company reorganized its U.S.

corporate structure and AGM merged with and into AG, with AG as the surviving company.

corporate structure and Assured Guaranty Municipal Inc.

(AGM) merged with and into Assured Guaranty Inc.

(AG, formerly known as Assured Guaranty Corp.), with AG as the surviving company.

Upon the merger all liabilities of AGM, including insurance policies issued or assumed by AGM, became obligations of AG.

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This has been illustrated by the Company’s role in negotiating various agreements in connection with the restructuring of obligations of the Commonwealth of Puerto Rico and various obligations of its related authorities and public corporations, as well as Detroit, Michigan and Stockton, California.

For public finance credits,

the Company’s surveillance function monitors and proactively engages with the distressed credits to offer assistance aimed to improve operations and financial performance, including access to external consultants and other industry experts.

For public finance credits, the Company’s surveillance function monitors and proactively engages with the distressed credits to offer assistance aimed to improve operations and financial performance, including access to external consultants and other industry experts.

The Company will also, where appropriate, participate in litigation to enforce or defend its rights.

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In addition, the Company successfully defended claims brought by Lehman Brothers International (Europe) (in administration) (LBIE) and prevailed in its counterclaim against LBIE;

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.

See Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives, for additional information.

Also, 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 after many years of negotiation and was paid down after liquidation of the trust assets.

The Company is, and for several years has been, working with the servicers of some of the U.S.

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The Company may also purchase attractively priced obligations, including BIG obligations, that it has insured and for which it had expected losses to be paid, in order to mitigate the economic effect of insured losses (Loss Mitigation Securities).

The fair value of Loss Mitigation Securities as of March 31, 2025 (excluding the value of the Company’s insurance) was $497 million.

The fair value of Loss Mitigation Securities as of June 30, 2025 (excluding the value of the Company’s insurance) was $503 million.

In some instances, the terms of the Company’s policy or the terms of certain workout orders and resolutions give it the option to pay principal on an accelerated basis on an obligation on which it has paid a claim, thereby reducing the amount of guaranteed interest due in the future.

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The Company expects its relationship with Sound Point to enhance its alternative investment opportunities and the return on its investments.

The Company has agreed to invest an aggregate amount of $1.5 billion in alternative investments, including $1 billion in Sound Point managed investments.

The Company has agreed to invest an aggregate amount of $1.5 billion in alternative investments, including $1 billion in Sound Point managed investments, subject to certain conditions precedent.

See Item 1, Financial Statements, Note 1, Business and Basis of Presentation, for a description of the alternative investments agreement with Sound Point.

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The Company has developed strategies to efficiently manage capital within the Assured Guaranty group.

From 2013 through May 8, 2025, the Company has repurchased 152 million common shares for approximately $5.5 billion, representing approximately 78% of the total shares outstanding at the beginning of the repurchase program in 2013.

On November 8, 2024, the AGL Board authorized the repurchase of an additional $250 million of the Company’s common shares.

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

From 2013 through August 6, 2025, the Company has repurchased 154 million common shares for approximately $5.7 billion, representing approximately 79% of the total shares outstanding at the beginning of the repurchase program in 2013.

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.

Shares may be repurchased 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 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.

The repurchase program may be modified, extended or

terminated by the Board at any time and it does not have an expiration date.

The repurchase program may be modified, extended or terminated by the Board at any time and it does not have an expiration date.

See Item 1, Financial Statements, Note 12, Shareholders’ Equity, for additional information about the Company’s repurchases of its common shares.

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2025 (January 1 - March 31) 120 1.335 89.72

2025 (April 1 - May 8) 51 0.60 84.43

2025 (April 1 - June 30) 131 1.538 85.03

2025 (July 1 - August 6) 45 0.538 84.16

Cumulative repurchases since the beginning of 2013 $ 5,658 153.682 36.82

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(1) Excludes commissions and excise taxes.

As of March 31, 2025, the estimated accretive effect of the cumulative repurchases of common shares since the beginning of 2013 was approximately:

As of June 30, 2025, the estimated accretive effect of the cumulative repurchases of common shares since the beginning of 2013 was approximately:

$61.77 per share in shareholders’ equity attributable to AGL, $64.07 per share in adjusted operating shareholders’ equity and $107.29 per share in adjusted book value (ABV).

Over the last several years, the Company has received approval from its insurance regulators to redeem a portion of its insurance subsidiaries’ stock and pay extraordinary dividends from its insurance subsidiaries.

Most recently, in connection with the merger of AGM with and into AG, the U.S.

insurance subsidiaries distributed, in aggregate, $400 million in cash and investments to the U.S.

Most recently, AG received approval from the Maryland Insurance Administration (MIA) to redeem shares of its common stock held by its parent for $250 million, and expects to redeem such shares in exchange for cash and alternative investments in the third quarter of 2025.

During 2024, in connection with the merger of AGM with and into AG, the U.S.

insurance subsidiaries distributed, in aggregate, $400 million in cash and investments to the Assured Guaranty US Holdings Inc.

(AGUS) and Assured Guaranty Municipal Holdings Inc.

(AGMH) (the U.S.

Holding Companies).

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Financial Results

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions, except per share amounts)

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Present value of new business production (PVP) (1)

64 155 103 218

Gross par written 10,396 9,423 15,398 13,166

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

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

Amount Per Share Amount Per Share

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Condensed Consolidated Results of Operations

Three Months Ended March 31,

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

2025 2024 2025 2024

(in millions)

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Net income (loss) 106 81 291 194

Noncontrolling interests 9 4

Noncontrolling interests (NCI) 3 3 12 7

Net income (loss) attributable to Assured Guaranty Ltd.

$ 103 $ 78 $ 279 $ 187

Effective tax rate 20.9 % 14.5 % 19.7 % 18.6 %

First Quarter 2025 Compared with First Quarter 2024

Net income attributable to AGL for first quarter 2025 was higher compared with the three-month period ended March 31, 2024 (first quarter 2024) primarily due to:

• a fair value gain on credit derivatives related to the resolution of the LBIE litigation of $103 million in first quarter 2025,

• foreign exchange gains on remeasurement of $37 million in first quarter 2025, compared with foreign exchange losses of $12 million in first quarter 2024, and

• higher equity in earnings of investees in first quarter 2025, primarily generated by the Company’s investment in Sound Point and alternative investments in healthcare and legacy alternative investments.

Second Quarter 2025 Compared with Second Quarter 2024

Net income attributable to AGL for second quarter 2025 was higher compared with the three-month period ended June 30, 2024 (second quarter 2024) primarily due to foreign exchange gains on remeasurement of $79 million in second quarter 2025, offset in part by a loss and LAE in second quarter 2025 of $28 million, compared with benefit of $2 million in second quarter 2024.

Six Months 2025 Compared with Six Months 2024

Net income attributable to AGL for six months 2025 was higher compared with six months 2024 primarily due to:

• foreign exchange gains on remeasurement of $116 million in six months 2025, compared with losses of $12 million in six months 2024,

• a fair value gain on credit derivatives related to the resolution of the LBIE litigation of $103 million in six months 2025, and

• higher equity in earnings of investees in six months 2025, primarily generated by the Company’s investments in Sound Point, healthcare funds and legacy alternative investments.

These increases were offset in part by:

• a loss and LAE in first quarter 2025 of $40 million, compared with a benefit of $1 million in first quarter 2024,

• lower net earned premiums in first quarter 2025, compared with first quarter 2024 due to lower refundings of financial guaranty insurance exposures,

• lower gains on trading securities, which primarily consist of contingent value instruments (CVIs) issued by Puerto Rico, in first quarter 2025, compared with first quarter 2024, and

• net realized investment losses in first quarter 2025 primarily due to a change in the allowance for credit losses for Loss Mitigation Securities and realized losses on sales of securities, compared with gains in first quarter 2024.

• a loss and LAE in six months 2025 of $68 million, compared with a benefit of $3 million in six months 2024,

• lower fair value gains on trading securities, which primarily consists of Puerto Rico CVIs, in six months 2025,

• net realized investment losses in six months 2025 primarily due to a change in the allowance for credit losses for Loss Mitigation Securities and realized losses on sales of securities, compared with gains in six months 2024, and

• lower net earned premiums in six months 2025, compared with six months 2024 due to lower refundings of financial guaranty insurance exposures.

The Company’s effective tax rate reflects the proportion of income recognized by each of the Company’s operating subsidiaries, with U.S.

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Pre-tax Income (Loss) by Tax Jurisdiction

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

$ 96 $ 87 $ 290 $ 216

Bermuda 28 17 74 47

10 (7) 1 (18)

France (1) (3) (3) (7)

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Adjusted Operating Income

Adjusted operating income in first quarter 2025 was $162 million, compared with $113 million in first quarter 2024.

The increase was primarily due to the gain related to the resolution of the LBIE litigation and higher equity in earnings of investees from Sound Point and alternative investments in first quarter 2025, offset in part by a higher loss expense in U.S.

public finance, lower premiums on financial guaranty insurance contracts and lower unrealized gains on the trading portfolio in first quarter 2025.

Adjusted operating income in second quarter 2025 was $50 million, compared with $80 million in second quarter 2024.

The decrease was primarily due to higher loss expense in U.S.

public finance sectors and lower unrealized gains on the trading portfolio in second quarter 2025, partially offset by certain one-time gains related to a loss mitigation effort.

See “— Results of Operations — Reconciliation to GAAP” for the reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Adjusted operating income in six months 2025 was $212 million, compared with $193 million in six months 2024.

The increase was primarily due to the gain related to the resolution of the LBIE litigation, certain one time gains related to loss mitigation and workout efforts and a higher contribution to adjusted operating income from the Asset Management segment in six months 2025, offset in part by a higher loss expense in U.S.

public finance sectors, lower fair value gains on the trading portfolio and lower earned premiums on refundings of financial guaranty insurance contracts in six months 2025.

See “— Results of Operations — Reconciliation to GAAP” for the reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Book Value and ABV

Shareholders’ equity attributable to AGL and adjusted operating shareholders’ equity as of March 31, 2025 increased compared with December 31, 2024, primarily due to net income and unrealized gains on the investment portfolio, partially offset by share repurchases and dividends.

ABV decreased primarily due to share repurchases and dividends, partially offset by adjusted operating income of $162 million and GWP of $35 million.

Shareholders’ equity attributable to AGL as of June 30, 2025 increased compared with December 31, 2024, primarily due to net income and unrealized gains on the investment portfolio, partially offset by share repurchases and dividends.

Adjusted operating shareholders’ equity and ABV decreased primarily due to share repurchases and dividends, partially offset by adjusted operating income and GWP.

See “— Non-GAAP Financial Measures” below for the reconciliation of shareholders’ equity attributable to AGL to adjusted operating shareholders' equity and ABV.

On a per share basis, shareholders’ equity attributable to AGL, adjusted operating shareholders’ equity and ABV increased as of March 31, 2025 compared with December 31, 2024, due, in part, to the accretive effect of the share repurchase program.

On a per share basis, shareholders’ equity attributable to AGL, adjusted operating shareholders’ equity and ABV increased as of June 30, 2025 compared with December 31, 2024, due, in part, to the accretive effect of the share repurchase

See “— Non-GAAP Financial Measures” for the reconciliation of shareholders’ equity attributable to AGL to adjusted operating shareholders’ equity and ABV.

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The Company’s surveillance and treasury functions have reviewed the Company’s insurance and investment portfolios, respectively, and have identified no material direct exposure to Ukraine or Russia.

In fact, the Company’s direct insurance exposure to eastern Europe generally is limited to approximately $207 million in net par outstanding as of March 31, 2025, comprising of the sovereign debt of Poland.

In fact, the Company’s direct insurance exposure to eastern Europe generally is limited to approximately $216 million in net par outstanding as of June 30, 2025, comprising of the sovereign debt of Poland.

The Company rates all such exposure investment grade.

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After review, the Company’s surveillance and treasury functions have identified no material direct exposure to such area.

The Company’s direct insurance exposure to the Middle East is generally limited to approximately $87 million in net par outstanding as of March 31, 2025, comprised of funded commitments to subscription finance facilities;

however, such exposure may increase to a total of approximately $130 million to the extent all unfunded commitments under the facilities are ultimately funded.

The Company’s direct insurance exposure to the Middle East is generally limited to funded and unfunded commitments to subscription finance facilities.

When subscription finance facilities are launched, they obtain aggregate commitments across numerous investors in the fund.

For certain facilities guaranteed by the Company, a small minority of investors are domiciled in the Middle East, which are generally sovereign wealth funds and pensions.

Subscription finance facilities guaranteed by the Company are always overcollateralized with uncalled capital commitments exceeding borrowings, and defaults of Middle East investors alone cannot cause a loss.

Such facilities have additional mitigants, including the ability to call on performing investors to cover the obligations of defaulting investors and rights to sell defaulting positions to other investors at a discount.

The Company rates all such insurance exposure investment grade.

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Insurance Segment Results

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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When issuers pay down insured obligations, the Company is no longer on risk for payment defaults and therefore accelerates the recognition of any remaining nonrefundable deferred premium revenue.

The amortization of the Company’s outstanding

book of business along with the previously high levels of refunding activity and the higher interest rate environment has led to a lower volume of refunding opportunities over the last several years.

The amortization of the Company’s outstanding book of business along with the previously high levels of refunding activity and the higher interest rate environment has led to a lower volume of refunding opportunities over the last several years.

Terminations are generally negotiated agreements with beneficiaries resulting in the extinguishment of the Company’s insurance obligation.

Terminations have been more common in the structured finance asset class but may also occur in the public finance asset class.

Terminations have historically been more common in the structured finance asset class but may also occur in the public finance asset class.

While each termination may have different terms, they all result in the expiration of the Company’s insurance risk, the acceleration of the recognition of the associated deferred premium revenue and the reduction of any remaining premiums receivable.

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Net Earned Premiums and Credit Derivative Revenues

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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(1) Includes accretion of discount.

Net earned premiums and credit derivative revenues increased in first quarter 2025 compared with first quarter 2024 primarily due to credit derivative revenues related to the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives), which were partially offset by lower financial guaranty refundings and terminations.

As of March 31, 2025, $3.7 billion of net deferred premium revenue on financial guaranty insurance remained to be earned over the life of the insurance contracts.

Net earned premiums and credit derivative revenues increased in second quarter 2025 compared with second quarter 2024 primarily due to earnings on new large transactions and supplemental premiums written in 2024.

Net earned premiums and credit derivative revenues increased in six months 2025 compared with six months 2024 primarily due to credit derivative revenues related to the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as

Credit Derivatives), which were partially offset by lower financial guaranty refundings and terminations.

As of June 30, 2025, $3.7 billion of net deferred premium revenue on financial guaranty insurance remained to be earned over the life of the insurance contracts.

New Business Production

1 unchanged sentence

New Business Production

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

Public finance—U.S.

$ 73 $ 103 $ 98 $ 147

Public finance—non-U.S.

3 unchanged sentences

Public finance—U.S.

$ 49 $ 116 $ 74 $ 159

Public finance—non-U.S.

6 unchanged sentences

Public finance—non-U.S.

275 1,572 472 1,572

Structured finance—U.S.

5 214 126 694

Structured finance—non-U.S.

1,255 594 1,670 948

Total gross par written $ 10,396 $ 9,423 $ 15,398 $ 13,166

1 unchanged sentence

(1) PVP and Gross Par Written in the table above are based on “close date,” when the transaction settles.

See “— Non-GAAP Financial Measures — PVP or Present Value of New Business Production.” PVP was discounted at 5.0% in both first quarter 2025 and first quarter 2024.

See “— Non-GAAP Financial Measures — PVP or Present Value of New Business Production.” PVP was discounted at 5.0% in all periods presented above.

GWP relates to insurance and reinsurance contracts for both financial guaranty and specialty business.

8 unchanged sentences

See “— Non-GAAP Financial Measures” below.

public finance GWP and PVP in first quarter 2025 were lower than GWP and PVP in first quarter 2024, primarily due to two large transportation transactions that were written in first quarter 2024.

Second Quarter 2025

public finance GWP and PVP in second quarter 2025 were lower than GWP and PVP in second quarter 2024, primarily due to two large transportation revenue transactions that were closed in second quarter 2024.

The Company’s primary par written represented 64% of the total U.S.

municipal market insured par sold in first quarter 2025, compared with 53% in first quarter 2024, and the Company’s penetration of all municipal issuance was 3.9% in first quarter 2025 compared with 3.8% in first quarter 2024.

public finance GWP and PVP in the secondary market increased in first quarter 2025 compared with first quarter 2024.

The Company’s par written in the secondary market represented almost 10% of U.S.

public finance par written in first quarter 2025, compared with 1% in first quarter 2024.

public finance GWP and PVP in first quarter 2025 included U.K.

regulated utility transactions as well as a secondary market transaction for a U.K.

municipal market insured par sold in second quarter 2025, compared with 58% in second quarter 2024, and the Company’s penetration of all municipal issuance was 6.0% in second quarter 2025 compared with 5.2% in second quarter 2024.

public finance secondary market, GWP and PVP both increased to $14 million in second quarter 2025 compared with $2 million in second quarter 2024.

The Company’s par written in the secondary market represented 5.7% of U.S.

public finance par written in second quarter 2025, compared with 1.6% in second quarter 2024.

public finance GWP and PVP in second quarter 2025 were lower than GWP and PVP in second quarter 2024, primarily due to several large U.K.

regulated utility transactions that were closed in second quarter 2024.

Second quarter 2025 non-U.S.

public finance transactions included one primary and several secondary infrastructure transactions in the U.K., and two primary infrastructure transactions in the European Union.

Global structured finance GWP and PVP in second quarter 2025 were primarily attributable to subscription finance and pooled corporate business.

Six Months 2025

public finance GWP and PVP in six months 2025 were lower than GWP and PVP in six months 2024, primarily due to several large transportation revenue transactions that were written in six months 2024.

The Company’s primary par written represented 64% of the total U.S.

municipal market insured par sold in six months 2025, compared with 56% in six months 2024, and the Company’s penetration of all municipal issuance was 5.1% in six months 2025 compared with 4.6% in six months 2024.

public finance secondary market, GWP and PVP both increased to $22 million in six months 2025 compared with $3 million in six months 2024.

The Company’s par written in the secondary market represented 6.7% of U.S.

public finance par written in six months 2025, compared with 1.5% in six months 2024.

public finance GWP and PVP in six months 2025 were lower than GWP and PVP in six months 2024, primarily due to large secondary market guaranties of several U.K.

regulated utilities in six months 2024.

Six months 2025 included three primary infrastructure finance transactions throughout the U.K.

and the European Union, as well as secondary market transactions for a U.K.

public sector entity.

public finance GWP in first quarter 2025 also included a reduction in the present value of estimated future premiums from certain transactions in the legacy insured portfolio.

Structured finance GWP and PVP in first quarter 2025 were primarily attributable to subscription finance and pooled corporate transactions.

public finance GWP in six months 2025 also included a reduction in the present value of estimated future premiums from certain transactions in the legacy insured portfolio.

Global structured finance GWP and PVP in six months 2025 were primarily attributable to subscription finance and pooled corporate business.

Business activity in the non-U.S.

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In addition, the Company periodically assesses the value of each rating assigned to each of its companies, and as a result of such assessment may request that a rating agency add or drop a rating from certain of its companies.

There can be no assurance that any of the rating agencies will not take negative action on the financial strength ratings (or similar ratings) of AGL’s insurance subsidiaries in the future or cease to rate one or more of AGL’s insurance subsidiaries, either voluntarily or at the request of that subsidiary.

There can be no assurance that any of the

rating agencies will not take negative action on the financial strength ratings (or similar ratings) of AGL’s insurance subsidiaries in the future or cease to rate one or more of AGL’s insurance subsidiaries, either voluntarily or at the request of that subsidiary.

Income from Investments

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The investment yield on fixed-maturity securities is a function of market interest rates at the time of investment as well as the type, credit quality and maturity of the securities in this portfolio.

CVIs issued by Puerto Rico and received as part of the resolution of defaulting Puerto Rico exposures in 2022 are classified as trading with changes in fair value reported in “fair value gains (losses) on trading securities” in the condensed consolidated statements of operations.

The fair value of remaining CVIs as of March 31, 2025 and December 31, 2024 was $115 million and $123 million, respectively.

Contingent value instruments (CVIs) issued by Puerto Rico and received as part of the resolution of defaulting Puerto Rico exposures in 2022 are classified as trading with changes in fair value reported in “fair value gains (losses) on trading securities” in the condensed consolidated statements of operations.

The fair value of remaining CVIs as of June 30, 2025 and December 31, 2024 was $117 million and $123 million, respectively.

Equity method investments in the Insurance segment include certain alternative investments.

The income (loss) on such investments is reported in “equity in earnings (losses) of investees” and typically represents the Company’s share of earnings of its investees.

As part of a stock redemption that occurred on August 5, 2024, certain alternative investments were distributed to AGMH, whose results are reported in the Corporate division.

As part of a stock redemption that occurred on August 5, 2024, certain alternative investments were distributed to AGMH, whose results are now reported in the Corporate division.

Insurance Segment

Income from Investments

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

12 unchanged sentences

Asset-based/specialty finance 5 7 14 11

Middle market direct lending 1 3

Private minority stakes in alternative asset managers — 2 — 10

Other 1 2 2 6

Equity in earnings (losses) of investees $ 2 $ 15 $ 32 $ 55

Net investment income increased in first quarter 2025 compared with first quarter 2024, primarily due to investment income on CLO equity tranches.

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

This was partially offset by lower short-term investment income as a result of lower short-term interest rates and lower average short-term investment balances.

The Company’s overall pre-tax book yield of available-for-sale fixed-maturity securities and short-term investments was 4.58% as of March 31, 2025 and 3.87% as of March 31, 2024.

Equity in earnings (losses) of investees decreased to $30 million in first quarter 2025 compared with $40 million in first quarter 2024, primarily due to the reclassification of certain CLO equity tranches to the available-for-sale portfolio, as described above.

In addition, equity in earnings (losses) of investees in first quarter 2024 included $9 million related to certain alternative investments which AG transferred to AGMH as part of a stock redemption that occurred on August 5, 2024.

Net investment income for second quarter 2025 and six months 2025 increased compared to second quarter 2024 and six months 2024, primarily due to investment income on CLO equity tranches in the available-for-sale portfolio.

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.” Short-term investment income declined as a result of lower short-term interest rates and lower average short-term investment balances.

The Company’s overall pre-tax book yield of available-for-sale fixed-maturity securities and short-term investments was 4.67% as of June 30, 2025 and 4.08% as of June 30, 2024.

Equity in earnings (losses) of investees for second quarter 2025 and six months 2025 decreased compared to second quarter 2024 and six months 2024, primarily due to the reclassification of certain CLO equity tranches to the available-for-sale

portfolio, as described above.

In addition, equity in earnings (losses) of investees in second quarter 2024 and six months 2024 included $3 million and $12 million, respectively, related to certain alternative investments which AG transferred to AGMH as part of a stock redemption that occurred on August 5, 2024.

See “Corporate Division” below.

These decreases were partially offset by an increase in the net asset value of the AHP fund in first quarter 2025.

These decreases were partially offset by an increase in the NAV of a private healthcare fund in six months 2025.

Other Income (Loss)

The increase in “other income (loss)” in first quarter 2025 was primarily attributable to consent and usage fees associated with the workout and purchase of bonds issued by a U.K.

regulated utility to which the Company has insured exposure.

The increase in “other income (loss)” in six months 2025 was primarily attributable to consent and usage fees associated with the workout and purchase of bonds issued by a U.K.

regulated utility to which the Company has insured exposure and interest on missed financial guaranty premiums.

Economic Loss Development (Benefit)

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However, the effect of changes in discount rates is not indicative of actual credit impairment or improvement.

The weighted average discount rates used to discount expected losses (recoveries) were 4.18% and 4.38% as of March 31, 2025 and December 31, 2024, respectively.

The weighted average discount rates used to discount expected losses (recoveries) were 4.15% and 4.38% as of June 30, 2025 and December 31, 2024, respectively.

The composition of economic loss development (benefit) by accounting model and by sector is presented in the tables that follow, and the drivers of economic loss development (benefit) are discussed below.

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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)

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Roll Forward by Sector

First Quarter 2025

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 June 30, 2025

(in millions)

Public finance:

public finance $ 35 $ 24 $ (6) $ 53

public finance 122 18 (1) 139

Public finance 157 42 (7) 192

Structured finance:

RMBS (37) (6) 8 (35)

Other structured finance 30 — (1) 29

Structured finance (7) (6) 7 (6)

Total $ 150 $ 36 $ — $ 186

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, 2025

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

(in millions)

8 unchanged sentences

Total $ 106 $ 21 $ 59 $ 186

First Quarter 2024

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 March 31, 2024

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

(in millions)

12 unchanged sentences

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

Effect of changes in the risk-free rates included in economic loss development (benefit) was a loss of $5 million in first quarter 2025 and a benefit of $3 million in first quarter 2024.

First Quarter 2025 Net Economic Loss Development

Effect of changes in the risk-free rates included in economic loss development (benefit) was a loss of $1 million in second quarter 2025, a loss of $1 million in second quarter 2024, a loss of $6 million in six months 2025 and a benefit of $2 million in six months 2024.

Second Quarter 2025 Net Economic Loss Development

Public Finance:

The economic loss development of $24 million for U.S.

public finance exposures was primarily attributable to PREPA.

public finance exposures was primarily attributable to an $11 million increase in expected losses for certain healthcare exposures, as well as higher expected losses on certain municipal revenue exposures.

The economic loss development of $18 million for non-U.S.

public finance exposures was primarily attributable to certain U.K.

regulated utilities.

regulated utility and U.K.

student accommodation exposures.

The economic development for U.S.

RMBS was a benefit of $6 million and was primarily attributable to higher recoveries for charged-off second lien loans, changes in discount rates and improved performance in certain transactions.

Second Quarter 2024 Net Economic Loss Development

Public Finance:

The economic loss development on U.S.

public finance exposures in second quarter 2024 was $12 million and $17 million, respectively, and was primarily attributable to certain healthcare exposures.

The economic benefit attributable to U.S.

RMBS was $10 million and was primarily attributable to a $4 million benefit from improved transaction performance, $4 million of higher recoveries for secured second lien charged-off loans and a $2 million benefit from changes in discount rates.

Six Months 2025 Net Economic Loss Development

Public Finance:

The economic loss development of $53 million for U.S.

public finance exposures was primarily attributable to PREPA and certain healthcare exposures.

The economic loss development of $42 million for non-U.S.

public finance exposures was primarily attributable to certain U.K.

regulated utility exposures.

The economic benefit for U.S.

RMBS was $3 million and was primarily attributable to higher recoveries for charged-off second lien loans, and improved performance in certain transactions.

RMBS was $9 million and was primarily attributable to a $5 million benefit related to higher recoveries for charged-off second lien loans, and improved performance in certain transactions.

Other Structured Finance :

The benefit attributable to other structured finance of $65 million was primarily attributable to recoveries related to the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives).

See Item 1, Financial Statements, Note 4, Expected Loss to be Paid (Recovered), for additional information.

First Quarter 2024 Net Economic Loss Development

Six Months 2024 Net Economic Loss Development

Public Finance:

The economic benefit on U.S.

public finance exposures in first quarter 2024 was $3 million, which was primarily attributable to the improved performance across various credits.

The net benefit attributable to U.S.

RMBS was $3 million and was mainly attributable to higher recoveries for secured second lien charged-off loans.

The economic loss development on U.S.

public finance exposures in six months 2024 was $9 million and $17 million, respectively, and was primarily attributable to certain healthcare exposures.

The economic benefit attributable to U.S.

RMBS was $13 million and was mainly attributable to an $8 million benefit related to higher recoveries for second lien charged-off loans, a $4 million benefit related to improved performance in certain transactions and a $4 million benefit related to changes in discount rates, partially offset by a $3 million loss related to lower excess spread.

See Item 1, Financial Statements, Note 4, Expected Loss to be Paid (Recovered), for additional information.

Insurance Segment Loss Expense

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Therefore, the timing of loss recognition in income does not necessarily coincide with the timing of the actual credit impairment or improvement reported in net economic loss development.

Transactions (particularly BIG transactions) acquired in business combinations or seasoned portfolios assumed from legacy financial guaranty insurers generally have the largest deferred premium revenue balances.

Transactions acquired in business combinations or seasoned portfolios assumed from legacy financial guaranty insurers (particularly BIG transactions) generally have large deferred premium revenue balances.

To the extent that a BIG transaction has a large deferred premium revenue, the difference between economic development and loss and LAE may be significant.

4 unchanged sentences

Loss Expense (Benefit)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

2 unchanged sentences

Structured finance:

RMBS (1) (6) (1) (4)

Other structured finance (1) (1) 3 (66) 4

2 unchanged sentences

____________________

(1) First quarter 2025 includes $63 million of recoveries in connection with the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives).

Employee Compensation and Benefit Expenses and Other Operating Expenses

The increases in employee compensation and benefit expenses and other operating expenses in first quarter 2025 compared with first quarter 2024 were primarily attributable to increased compensation and other expenses allocated to the Insurance segment.

(1) Six months 2025 includes $63 million of recoveries in connection with the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives).

Asset Management Segment Results

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

5 unchanged sentences

Segment adjusted operating income (loss) $ 4 $ — $ 16 $ 1

Results in the table above primarily represent (i) equity in earnings of Sound Point of $13 million in first quarter 2025 and $4 million in first quarter 2024 (Sound Point results are reported on a one quarter lag), net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point, (ii) an impairment loss of $3 million in first quarter 2024 for a smaller financial services advisory firm, and (iii) other asset management related income.

Results in the table above primarily represent (i) equity in earnings (losses) of Sound Point of $(1) million in second quarter 2025, $(3) million in second quarter 2024, $12 million in six months 2025 and $1 million in six months 2024 (Sound Point results are reported on a one quarter lag), net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point, (ii) an impairment loss of $3 million in six months 2024 for a smaller financial services advisory firm, and (iii) other asset management related income.

Corporate Division Results

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

8 unchanged sentences

Adjusted operating income (loss) $ (29) $ (35) $ (49) $ (72)

Corporate division interest expense primarily relates to debt issued by Assured Guaranty US Holdings Inc.

(AGUS) and Assured Guaranty Municipal Holdings Inc.

(AGMH) (the U.S.

Corporate division interest expense primarily relates to debt issued by the U.S.

Holding Companies, and also includes intersegment interest expense.

1 unchanged sentence

Holding Companies, Intercompany Loans Payable” for additional information.

Equity in earnings of investees in second quarter 2025 and six months 2025 relates to certain alternative investments, which AG transferred to AGMH as part of a stock redemption that occurred on August 5, 2024.

The carrying value of these transferred investments as of June 30, 2025 was $128 million.

Corporate division employee compensation and benefits expenses and other operating expenses are an allocation of expenses based on time studies and represent the costs incurred and time spent on holding company activities, capital management, corporate oversight and governance including the Board’s expenses, legal fees and other direct or allocated expense.

The decrease in employee compensation and benefit expenses and other operating expenses in first quarter 2025 compared with first quarter 2024 was primarily attributable to lower allocated expenses.

Equity in earnings of investees in first quarter 2025 relates to certain alternative investments, which AG transferred to AGMH as part of a stock redemption that occurred on August 5, 2024.

The carrying value of these transferred investments as of March 31, 2025 was $132 million.

The decrease in employee compensation and benefit expenses and other operating expenses in second quarter 2025 and six months 2025 compared with second quarter 2024 and six months 2024 was primarily attributable to lower allocated expenses.

Other (Effect of Consolidating FG VIEs and CIVs)

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The Company eliminates the effects of intercompany transactions between its FG VIEs and CIVs and its insurance and asset management subsidiaries, as well as intercompany transactions between CIVs.

Consolidating FG VIEs (as opposed to accounting for the related insurance contracts in the Insurance segment) has a significant gross-up effect on the consolidated financial statements, and includes:

Consolidating FG VIEs (as opposed to accounting for the related insurance contracts in the Insurance segment) has a gross-up effect on the consolidated financial statements, and includes:

(i) the establishment of the FG VIEs’ assets and liabilities and related changes in fair value on the condensed consolidated financial statements;

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(ii) eliminating the equity method investments of the insurance subsidiaries, and related equity in earnings (losses) of investees;

and (iii) establishing noncontrolling interest for amounts not owned by the Company.

and (iii) establishing NCI for amounts not owned by the Company.

The economic effect of AG’s ownership interests in CIVs is presented in the Insurance segment as “equity in earnings (losses) of investees,” while the effect of CIVs is presented as separate line items (“fair value gains (losses) on consolidated investment vehicles” and “noncontrolling interest”) on a consolidated basis.

5 unchanged sentences

Increase (Decrease)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

Effect on Financial Statement Line Item (in millions)

6 unchanged sentences

Effect on net income (loss) 2 2 13 6

Effect on noncontrolling interests (4) 9 4

Effect on NCI (4) 3 3 12 7

Effect on net income (loss) attributable to AGL $ (1) $ (1) $ 1 $ (1)

1 unchanged sentence

FG VIEs $ — $ (1) $ — $ (2)

CIVs (1) — 1 1

Effect on net income (loss) attributable to AGL $ (1) $ (1) $ 1 $ (1)

____________________

(1) Changes in fair value of the FG VIEs’ assets and liabilities that are attributable to factors other than (i) changes in the Company’s own credit risk on the FG VIEs’ liabilities with recourse;

(1) Changes in fair value of the FG VIEs’ assets and liabilities reported in the statements of operations are attributable to factors other than (i) changes in the Company’s own credit risk on the FG VIEs’ liabilities with recourse;

and (ii) unrealized gains and losses on available-for-sale fixed maturity securities.

5 unchanged sentences

to Adjusted Operating Income (Loss)

First Quarter 2025 First Quarter 2024

Second Quarter 2025 Second Quarter 2024

Total Per Diluted Share Total Per Diluted Share

10 unchanged sentences

Gain (loss) related to FG VIE and CIV consolidation (net of tax provision (benefit) of $(1) and $0) included in adjusted operating income $ (1) $ (0.02) $ (1) $ (0.03)

Six Months 2025 Six Months 2024

Total Per Diluted Share Total Per Diluted Share

(in millions, except per share amounts)

Net income (loss) attributable to AGL $ 279 $ 5.54 $ 187 $ 3.31

Less pre-tax adjustments:

Realized gains (losses) on investments (22) (0.43) 2 0.04

Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives (3) (0.07) 13 0.23

Fair value gains (losses) on CCS 1 0.02 (9) (0.16)

Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves 104 2.06 (12) (0.21)

Total pre-tax adjustments 80 1.58 (6) (0.10)

Less tax effect on pre-tax adjustments (13) (0.25) — —

Adjusted operating income (loss) $ 212 $ 4.21 $ 193 $ 3.41

Gain (loss) related to FG VIE and CIV consolidation (net of tax provision (benefit) of $0 and $0) included in adjusted operating income $ 1 $ 0.02 $ (1) $ (0.02)

Net Realized Investment Gains (Losses)

1 unchanged sentence

Net Realized Investment Gains (Losses)

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

3 unchanged sentences

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) Relates primarily to Loss Mitigation Securities.

Non-Credit Impairment-Related Unrealized Fair Value Gains (Losses) on Credit Derivatives

6 unchanged sentences

See Item 1, Financial Statements, Note 9, Fair Value Measurement, for additional information.

During first quarter 2025 non-credit impairment-related unrealized fair value losses of $2 million were generated primarily due to generally wider collateral asset spreads.

During first quarter 2024 non-credit impairment-related unrealized fair value gains of $10 million were generated primarily as a result of the termination of certain structured finance policies.

During six months 2025, non-credit impairment-related unrealized fair value losses of $3 million were primarily attributable to generally wider asset spreads and changes in foreign exchange rates.

During second quarter 2024 and six months 2024, non-credit impairment-related unrealized fair value gains of $3 million and $13 million, respectively, were generated primarily due to the termination of certain structured finance policies.

Fair Value Gains (Losses) on CCS

Fair value gains on CCS of $2 million in first quarter 2025 were primarily due to a widening in market credit spreads.

Fair value losses on CCS of $10 million in first quarter 2024 were primarily due to a tightening in market credit spreads.

Fair value losses on CCS of $9 million in six months 2024 were primarily due to a tightening in market credit spreads.

Fair value gains (losses) on CCS are heavily affected by, and in part fluctuate with, changes in market credit spreads and interest rates, and other market factors and are not expected to result in an economic gain or loss.

Foreign Exchange Gain (Loss) on Remeasurement

Foreign exchange gains of $33 million in first quarter 2025 and losses of $12 million in first quarter 2024 were primarily related to remeasurement of long-dated premiums receivable, for which the Company records the present value of future installment premiums, and are mainly due to changes in the exchange rate of the pound sterling and, to a lesser extent, the euro relative to the U.S.

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.

dollar, primarily the pound sterling and euro.

Foreign exchange gains of $71 million and $104 million and losses of $12 million in second quarter 2025, six months 2025 and six months 2024, respectively, were primarily related to the remeasurement of long-dated premiums receivable, for which the Company records the present value of future installment premiums.

Foreign exchange gains and losses are mainly due to changes in the exchange rate of the pound sterling and, to a lesser extent, the euro relative to the U.S.

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.

Premiums on European infrastructure and structured finance transactions typically are paid, in whole or in part, on an installment basis, whereas premiums on U.S.

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Dollar Per Foreign Currency

As of March 31, 2025 As of December 31, 2024 As of March 31, 2024 As of December 31, 2023

As of June 30, 2025 As of December 31, 2024 As of June 30, 2024 As of December 31, 2023

Pound sterling $1.373 $1.252 $1.265 $1.273

15 unchanged sentences

(i) adjusted operating income per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating income per share);

(ii) adjusted operating shareholders’ equity per share, further adjusted to

remove the effect of FG VIE and CIV consolidation (core operating shareholders’ equity per share);

(ii) adjusted operating shareholders’ equity per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core operating shareholders’ equity per share);

(iii) ABV per share, further adjusted to remove the effect of FG VIE and CIV consolidation (core ABV per share);

45 unchanged sentences

to Adjusted Operating Shareholders’ Equity and ABV

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

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

Total Per Share Total Per Share

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Reconciliation of GWP to PVP

First Quarter 2025 First Quarter 2024

Second Quarter 2025 Second Quarter 2024

Public Finance Structured Finance Public Finance Structured Finance

5 unchanged sentences

PVP $ 49 $ 7 $ 1 $ 7 $ 64 $ 116 $ 33 $ 4 $ 2 $ 155

Six Months 2025 Six Months 2024

Public Finance Structured Finance Public Finance Structured Finance

(in millions)

GWP $ 98 $ 7 $ 6 $ 9 $ 120 $ 147 $ 27 $ 15 $ 4 $ 193

Installment GWP and other GAAP adjustments (1) 32 7 6 9 54 97 15 14 4 130

Upfront GWP 66 — — — 66 50 12 1 — 63

Installment premiums and other (2) 8 14 3 12 37 109 22 18 6 155

PVP $ 74 $ 14 $ 3 $ 12 $ 103 $ 159 $ 34 $ 19 $ 6 $ 218

___________________

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Net Par Outstanding by Sector

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

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

Sector (dollars in millions)

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

As of March 31, 2025, the Company’s only remaining outstanding unresolved insured Puerto Rico exposure subject to a payment default was PREPA, to which the Company had net par and debt service outstanding of $532 million and $619 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.

As of June 30, 2025, the Company’s only remaining outstanding unresolved insured Puerto Rico exposure subject to a payment default was PREPA, to which the Company had net par and debt service outstanding of $532 million and $617 million, respectively.

As of December 31, 2024, the Company’s PREPA net par and debt service outstanding were $532 million and $629 million, respectively.

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Net Par Outstanding and Net Debt Service Outstanding

As of March 31, 2025

As of June 30, 2025

Scheduled Net Par Amortization Scheduled Net Debt Service Amortization

(in millions)

2025 (April 1 - June 30) $ — $ 3

2025 (July 1 - September 30) $ 68 $ 78

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• make capital investments in their operating subsidiaries and in alternative investments;

• fund acquisitions of new businesses;

• fund acquisitions of new businesses or expand insurance business;

• purchase or redeem the Company’s outstanding debt;

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In the ordinary course of business, the Company evaluates its liquidity needs and capital resources in light of holding company expenses and dividend policy, as well as rating agency considerations.

The Company also subjects its cash flow projections and its assets to a stress test, maintaining a liquid asset balance of one and a half times its stressed operating company net cash flows over the next four quarters.

The Company also subjects its cash flow projections and its assets to a stress test, maintaining a liquid asset balance of one and a half times its stressed operating

company net cash flows over the next four quarters.

Management believes that AGL will have sufficient liquidity to satisfy its needs over the next twelve months.

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Long-Term Debt and Intercompany Loans

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

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

(in millions)

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Accrued interest on all loans will be paid on the last day of each June and December and at maturity.

AGL must repay unpaid principal amounts of the loans, if any, by the third anniversary of the loan commitment termination date.

AGL must repay unpaid principal amounts

of the loans, if any, by the third anniversary of the loan commitment termination date.

AGL has not drawn upon the credit facility.

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Holding Companies, excluding their investments in subsidiaries.

As of March 31, 2025

As of June 30, 2025

Holding Companies

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Holding Companies 110 —

Dividends receivable from other subsidiaries 50 —

Other assets 5 46

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____________________

(1) As of March 31, 2025, weighted average durations of AGL’s and the U.S.

(1) As of June 30, 2025, weighted average durations of AGL’s and the U.S.

Holding Companies’ fixed-maturity securities were 10.2 years and 3.3 years, respectively.

(2) Primarily represents receivables and payables with non-guarantor subsidiaries.

First Quarter 2025

Six Months 2025

Holding Companies

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Selected Cash Flow Items

First Quarter 2025

Six Months 2025

Holding Companies

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Distributions from equity method investees (1) — 27

Interest paid on intercompany loans — (1)

Interest paid on long-term debt — (43)

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• dividends or other distributions to parent,

• reinsurance premiums, and

• reinsurance premiums,

• expansion of the insurance business, and

• capital investments in their own subsidiaries and in alternative investments.

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Treasuries, agency RMBS and pre-refunded municipal bonds equal to 1.5 times its projected operating company cash flow needs over the next four quarters.

As of March 31, 2025, the Company intended to hold and had the ability to hold securities in an unrealized loss position until the date of anticipated recovery of amortized cost.

As of June 30, 2025, the

Company intended to hold and had the ability to hold securities in an unrealized loss position until the date of anticipated recovery of amortized cost.

Beyond the next twelve months, the ability of the operating subsidiaries to declare and pay dividends may be influenced by a variety of factors, including market conditions, general economic conditions and, in the case of the Company’s insurance subsidiaries, insurance regulations and rating agency capital requirements.

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The Company is continuing its efforts to resolve the one remaining unresolved Puerto Rico insured exposure that is in payment default, PREPA.

The Company had $532 million in insured net par outstanding of PREPA obligations as of March 31, 2025.

The Company had $532 million in insured net par outstanding of PREPA obligations as of June 30, 2025.

For more information, see Item 1, Financial Statements, Note 4, Expected Loss to be Paid (Recovered).

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Dividend restrictions by insurance subsidiary are as follows:

• Under Maryland’s insurance law, AG may, with prior notice to the Commissioner of its domiciliary regulator, the Maryland Insurance Administration (MIA), pay an ordinary dividend in an amount that, together with all dividends and distributions paid in the prior 12 months, does not exceed the lesser of 10% of its policyholders’ surplus (as of the prior December 31) or 100% of its adjusted net investment income during that period.

• Under Maryland’s insurance law, AG may, with prior notice to the Commissioner of its domiciliary regulator, the MIA, pay an ordinary dividend in an amount that, together with all dividends and distributions paid in the prior 12 months, does not exceed the lesser of 10% of its policyholders’ surplus (as of the prior December 31) or 100% of its adjusted net investment income during that period.

“Adjusted net investment income” means the sum of (x) AG’s net investment income during the 12-month period ending December 31 of the preceding year (excluding realized capital gains and pro rata distributions of its own securities), and (y) AG’s net investment income (excluding realized capital gains) from the three calendar years prior to the preceding calendar year that has not already been paid out as dividends.

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However, in order to enable AG to make payments over the course of the year, AG has put in place for 2025 a quarterly process with the MIA, pursuant to which AG will confirm that the MIA does not object to AG dividending $71.8 million (i.e., 25%) of the $287 million amount in each calendar quarter of 2025.

Pursuant to this process, AG obtained the MIA’s non-objection to pay, and expects to pay, a $71.8 million dividend by May 23, 2025 (and previously obtained the MIA’s non-objection to pay, and paid, an equivalent dividend on March 6, 2025).

Pursuant to this process, AG obtained the MIA’s non-objection to pay, and expects to pay, a $71.8 million

dividend by August 22, 2025 (and previously obtained the MIA’s non-objection to pay, and paid, equivalent dividends on March 6, 2025 and May 19, 2025).

See “– Overview – Key Business Strategies – Merger of the U.S.

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Based on applicable law and regulations, in 2025 AG Re has the capacity to declare and pay dividends in an aggregate amount up to 25% of the prior year statutory surplus (i.e., up to $272 million);

provided that such payment cannot exceed AG Re’s unencumbered assets ($222 million as of March 31, 2025) or its statutory surplus ($287 million as of March 31, 2025).

Additionally, in 2025 AG Re can make capital distributions in an aggregate amount up to $129 million without the prior approval of the Authority.

provided that such payment cannot exceed AG Re’s unencumbered assets ($232 million as of June 30, 2025) or its statutory surplus ($278 million as of June 30, 2025).

Additionally, in 2025 AG Re can make capital distributions in an aggregate amount up to $129 million without the prior approval of the Bermuda Monetary Authority.

Ordinary Dividends

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to Holding Companies

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

Dividends paid by AG Re to AGL $ — $ 47

Dividends paid by AG to U.S.

Dividends declared by AG Re to AGL (1) $ 50 $ — $ 50 $ 47

Dividends declared by AG to U.S.

Holding Companies (2) 72 26 144 108

___________________

(1) In second quarter 2025, AG Re declared a dividend of $50 million and expects to pay the dividend in the third quarter of 2025.

(2) Prior to a reorganization of the Company’s U.S.

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As a result of the reorganization, effective as of August 1, 2024, AG is directly owned by AGMH, a subsidiary of AGUS.

Stock Redemption by Assured Guaranty Inc.

In July 2025, the MIA approved AG’s redemption of $250 million of its shares of common stock from AGMH.

AG expects to redeem such shares in exchange for cash and alternative investments in the third quarter of 2025.

Committed Capital Securities

AG is party to an arrangement that enables it to access, at its discretion, up to $400 million of capital, at any time, and has the right to use such capital for any purpose, including to pay claims.

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The Company’s principal objectives in managing its investment portfolio are to support the highest possible ratings for each operating company, manage investment risk within the context of the underlying portfolio of insurance risk, maintain sufficient liquidity to cover unexpected stress in the insurance portfolio, and maximize after-tax net investment income.

As of March 31, 2025, the Company had $6,415 million of available-for-sale fixed-maturity securities, of which $5,443 million were managed by three investment managers who are required to, in accordance with the Company’s investment guidelines, maintain their portion of the Company’s investment portfolio with an overall credit quality rated at a minimum of A+/A1/A+ by S&P/Moody’s/Fitch Ratings Inc.

As of June 30, 2025, the Company had $6,498 million of available-for-sale fixed-maturity securities, of which $5,451 million were managed by three investment managers who are required to, in accordance with the Company’s investment guidelines, maintain their portion of the Company’s investment portfolio with an overall credit quality rated at a minimum of A+/A1/A+ by S&P/Moody’s/Fitch Ratings Inc.

In addition, $238 million of available-for-sale fixed-maturity securities were CLO equity tranches managed by Sound Point.

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Carrying Value

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(in millions)

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See Item 1, Financial Statements, Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

The Company’s available-for-sale fixed-maturity securities had a duration of 4.5 years and 4.3 years as of March 31, 2025 and December 31, 2024, respectively.

The Company’s available-for-sale fixed-maturity securities had a duration of 4.7 years and 4.3 years as of June 30, 2025 and December 31, 2024, respectively.

Available-for-Sale Fixed-Maturity Securities By Rating

The following table summarizes the ratings distributions of the Company’s available-for-sale fixed-maturity securities as of March 31, 2025 and December 31, 2024.

The following table summarizes the ratings distributions of the Company’s available-for-sale fixed-maturity securities as of June 30, 2025 and December 31, 2024.

Ratings generally reflect the lower of Moody’s and S&P classifications, except for (i) Loss Mitigation Securities rated BIG, and (ii) CLO equity tranches, which are not rated.

1 unchanged sentence

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

Rating March 31, 2025 December 31, 2024

Rating June 30, 2025 December 31, 2024

AAA 12.8 % 12.5 %

4 unchanged sentences

Other invested assets, which are generally less liquid than fixed-maturity securities, primarily consist of the ownership interest in Sound Point and alternative investments across a variety of strategies.

The Insurance segment reports the Company’s percentage ownership of Sound Point funds and AHP funds as equity method investments with changes in net asset value included in the Insurance segment adjusted operating income.

As of March 31, 2025 and December 31, 2024, one active fund in which the Company invests was accounted for as a CIV and the majority are accounted as equity method investments in the Company’s condensed consolidated financial statements.

See “— Commitments” below.

Ownership Interest in Sound Point and Alternative Investments

As of March 31, 2025

Investments CIVs Consolidated

Sound Point and Alternative Investments

As of June 30, 2025 (1) As of December 31, 2024

Investments CIVs Consolidated Investments CIVs Consolidated

(in millions)

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Asset-based/specialty finance 151 (40) 111 142 (33) 109

Middle market direct lending 12 — 12

Private minority stakes in alternative asset managers 79 — 79 69 — 69

Other 131 — 131 77 — 77

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(1) The alternative investments, excluding the ownership interest in Sound Point, had an inception-to-date annualized internal rate of return of 13%.

Ownership Interest in Sound Point and Alternative Investments

As of December 31, 2024

Investments CIVs Consolidated

(in millions)

Fixed-maturity securities, available-for-sale $ 319 $ — $ 319

Fixed-maturity securities, trading 24 — 24

Other invested assets:

Ownership interest in Sound Point 418 — 418

CLOs 100 — 100

Private healthcare investing 153 — 153

Asset-based/specialty finance 142 (33) 109

Middle market direct lending 11 — 11

Other 135 — 135

Total $ 1,302 $ (33) $ 1,269

Income from Ownership Interest in Sound Point and Alternative Investments

First Quarter 2025

Investments CIVs Consolidated

Effect of Ownership Interest in Sound Point and Alternative Investments

on Condensed Consolidated Statements of Operations

Second Quarter 2025 Second Quarter 2024

Investments CIVs Consolidated Investments CIVs Consolidated

(in millions)

Net investment income (1) $ 11 $ — $ 11 $ 1 $ — $ 1

Net realized investment gains (losses) (7) — (7) — — —

Fair value gains (losses) on trading securities — — — — — —

2 unchanged sentences

Equity in earnings (losses) of alternative investments:

CLOs (5) — (5) 6 (3) 3

Private healthcare investing 1 — 1 (2) — (2)

Asset-based/specialty finance 5 (1) 4 7 (4) 3

Middle market direct lending 1 — 1

Private minority stakes in alternative asset managers 1 — 1 2 — 2

Other 3 — 3 2 — 2

2 unchanged sentences

____________________

(1) Includes CLO equity tranches distributed from a CLO fund in the fourth quarter of 2024.

Income from Ownership Interest in Sound Point and Alternative Investments

First Quarter 2024

Investments CIVs Consolidated

(1) Second quarter 2025 includes CLO equity tranches distributed from a CLO fund in the fourth quarter of 2024.

Effect of Ownership Interest in Sound Point and Alternative Investments

on Condensed Consolidated Statements of Operations

Six Months 2025 Six Months 2024

Investments CIVs Consolidated Investments CIVs Consolidated

(in millions)

Net investment income (1) $ 23 $ — $ 23 $ 2 $ — $ 2

Net realized investment gains (losses) (7) — (7) — — —

Fair value gains (losses) on trading securities 1 — 1 — — —

Equity in earnings (losses) of investees:

4 unchanged sentences

Asset-based/specialty finance 14 (7) 7 11 (6) 5

Middle market direct lending 3 — 3

Private minority stakes in alternative asset managers 15 — 15 10 — 10

Other 6 6 3 — 3

Equity in earnings (losses) of investees 63 (7) 56 53 (24) 29

Total $ 80 $ (7) $ 73 $ 55 $ (24) $ 31

The Company has agreed to invest an aggregate amount of $1.5 billion in alternative investments, including $1 billion in Sound Point managed investments.

Unfunded commitments for alternative investments as of March 31, 2025 were $608 million.

____________________

(1) Six months 2025 includes CLO equity tranches distributed from a CLO fund in the fourth quarter of 2024.

The Company has agreed to invest an aggregate amount of $1.5 billion in alternative investments, including $1 billion in Sound Point managed investments, subject to certain conditions precedent.

Unfunded commitments for alternative investments as of June 30, 2025 were $567 million.

See Item 1, Financial Statements, Note 1, Business and Basis of Presentation, for a description of the alternative investments agreement with Sound Point.

Restricted Assets

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 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.

Lease Obligations

6 unchanged sentences

The primary sources of cash in FG VIEs are the collection of principal and interest on the collateral supporting the debt obligations, and the primary uses of cash are the payment of principal and interest due on the debt obligations.

The insurance subsidiaries are not primarily liable for the debt obligations issued by the VIEs they insure 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.

The insurance subsidiaries are not primarily liable for the debt obligations issued by the VIEs they insure

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

1 unchanged sentence

The assets and liabilities of the Company’s CIVs are held within separate legal entities.

The assets of the CIVs are not available to creditors of the

Company, other than creditors of the applicable CIVs.

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.

2 unchanged sentences

Condensed Consolidated Cash Flow Summary

The summarized condensed consolidated statements of cash flows in the table below present the cash flow effect for the aggregate of the Insurance and Asset Management businesses and holding companies, separately from the aggregate effect of consolidating FG VIEs and CIVs.

The summarized condensed consolidated statements of cash flows in the table below present the cash flow effect for the aggregate of the Insurance and Asset Management segments and Corporate division, separately from the aggregate effect of consolidating FG VIEs and CIVs.

Summarized Condensed Consolidated Cash Flows

First Quarter

Second Quarter Six Months

2025 2024 2025 2024

(in millions)

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(1) Claims paid on consolidated FG VIEs are presented in the condensed consolidated statements of cash flows as a component of paydowns on FG VIEs’ liabilities in financing activities as opposed to operating activities.

Cash flows from operating activities were inflows of $87 million in first quarter 2025 and outflows of $74 million in first quarter 2024.

The first quarter 2025 cash flow from operations includes the receipt of $97 million in satisfaction of the judgment the Company was awarded and its recoveries in connection with the resolution of the LBIE litigation.

In addition, first quarter 2025 cash flows from operations were higher than in first quarter 2024 due to a $61 million decrease in net claim payments.

Cash flows from operating activities were inflows of $165 million in six months 2025 and outflows of $16 million in six months 2024.

The six months 2025 cash flow from operations includes the receipt of $97 million in satisfaction of the judgment the Company was awarded and its recoveries in connection with the resolution of the LBIE litigation.

In addition, six months 2025 cash flows from operations were higher than in six months 2024 due to a $68 million decrease in net claim payments.

Investing activities primarily consisted of net sales (purchases) of fixed-maturity securities and short-term investments and paydowns on, and sales of, FG VIEs’ assets.

The decrease in investing cash inflows in first quarter 2025 compared with first quarter 2024 was mainly attributable to lower net sales of fixed-maturity securities in first quarter 2025, which were partially offset by higher net sales of short-term investments in first quarter 2025.

Investing inflows in both periods were used to fund

claim payments and share repurchases.

The increase in investing cash inflows in six months 2025 compared with six months 2024 was mainly attributable to higher net sales of short-term investments in six months 2025, which were partially offset by lower net sales of fixed-maturity securities in six months 2025.

See Item 1, Financial Statements, Condensed Consolidated Statements of Cash Flows, and Note 4, Expected Loss to be Paid (Recovered), for additional information.

Financing activities primarily consist of (i) AGL share repurchases and dividends and (ii) paydowns of FG VIEs’ liabilities.

First quarter 2024 FG VIE financing cash flows included the par paydown of liabilities of certain trusts related to Puerto Rico exposures of $144 million.

From April 1, 2025 through May 8, 2025, the Company repurchased an additional 603 thousand of common shares.

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

Six months 2024 FG VIE financing cash flows included the par paydown of liabilities of certain trusts related to Puerto Rico exposures of $144 million.

From July 1, 2025 through August 6, 2025, the Company repurchased an additional 538 thousand of common shares.

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

For more information about the Company’s share repurchases and authorizations, see Item 1, Financial Statements, Note 12, Shareholders’ Equity.

2 unchanged sentences

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 2. Management’s Discussion and Analysis