What changed in this filing

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Item 1. Financial Statements

2025-11-07 compared with 2025-08-08 · 381 added, 363 removed, 1811 unchanged (29% of the section changed)

3 unchanged sentences

(dollars in millions except share data)

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $ 54 and $ 60 (amortized cost of $ 6,492 and $ 6,827 )

7 unchanged sentences

Salvage and subrogation recoverable 453 396

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

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

Assets of consolidated investment vehicles (includes $ 132 and $ 99 , at fair value)

4 unchanged sentences

Long-term debt 1,702 1,699

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

Financial guaranty variable interest entities’ liabilities, at fair value ($ 150 and $ 155 with recourse, $ 9 and $ 9 without recourse)

Other liabilities (includes $ 31 and $ 34 , at fair value)

16 unchanged sentences

(dollars in millions except share data)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

31 unchanged sentences

(in millions)

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

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

16 unchanged sentences

(dollars in millions, except share data)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

4 unchanged sentences

Shareholders’ Equity

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

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

Net income — — 105 — — 105 9 114

1 unchanged sentence

— — ( 16 ) — — ( 16 ) — ( 16 )

Consolidation — — — — — — 26 26

Deconsolidation — — — — — — ( 26 ) ( 26 )

Common shares repurchases ( 1,423,121 ) — ( 120 ) — — ( 120 ) — ( 120 )

1 unchanged sentence

Other comprehensive income — — — 48 — 48 — 48

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

For the Three Months Ended June 30, 2024

As of September 30, 2025 46,708,564 $ — $ 5,836 $ ( 179 ) $ 1 $ 5,658 $ 79 $ 5,737

For the Three Months Ended September 30, 2024

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

4 unchanged sentences

Shareholders’ Equity

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

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

Net income — — 171 — — 171 5 176

3 unchanged sentences

Share-based compensation 29,484 — 5 — — 5 — 5

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

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

Distributions — — — — — — ( 7 ) ( 7 )

Other comprehensive income — — — 161 — 161 — 161

As of September 30, 2024 51,556,750 $ 1 $ 5,957 $ ( 231 ) $ 1 $ 5,728 $ 54 $ 5,782

Assured Guaranty Ltd.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - (Continued)

(dollars in millions, except share data)

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

8 unchanged sentences

— — ( 53 ) — — ( 53 ) — ( 53 )

Consolidation — — — — — — 26 26

Common shares repurchases ( 4,295,854 ) ( 1 ) ( 371 ) — — ( 372 ) — ( 372 )

1 unchanged sentence

Other comprehensive income — — — 206 — 206 — 206

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

For the Six Months Ended June 30, 2024

As of September 30, 2025 46,708,564 $ — $ 5,836 $ ( 179 ) $ 1 $ 5,658 $ 79 $ 5,737

For the Nine Months Ended September 30, 2024

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

11 unchanged sentences

Distributions — — — — — — ( 10 ) ( 10 )

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

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

Other comprehensive income — — — 128 — 128 — 128

As of September 30, 2024 51,556,750 $ 1 $ 5,957 $ ( 231 ) $ 1 $ 5,728 $ 54 $ 5,782

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

2 unchanged sentences

(in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Net cash flows provided by (used in) operating activities $ 220 $ 1

30 unchanged sentences

(in millions)

Six Months Ended June 30,

Nine Months Ended September 30,

Supplemental cash flow information

3 unchanged sentences

Receipt of fixed-maturity securities, available-for-sale $ 9 $ —

June 30, 2025 June 30, 2024

September 30, 2025 September 30, 2024

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

Cash $ 157 $ 147

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

Cash and cash equivalents of consolidated investment vehicles 4 23

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Through its insurance subsidiaries, the Company applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments.

If an obligor defaults on a scheduled payment due on an obligation, including a scheduled principal or interest payment (collectively, debt service), the Company is required under its unconditional and irrevocable financial guaranty to pay the amount of the shortfall to the holder of the obligation.

If an obligor defaults on a scheduled payment, including a scheduled principal or interest payment (collectively, debt service), the Company is required under its unconditional and irrevocable financial guaranty to pay the amount of the shortfall to the holder of the obligation.

The Company markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities as well as to investors in such obligations.

The Company guarantees obligations issued principally in the U.S.

and the United Kingdom (U.K.), and also guarantees obligations issued in other countries and regions, including Western Europe.

and the United Kingdom (U.K.), and also guarantees obligations issued in other countries and regions, including Western Europe and Australia.

The Company also provides specialty insurance and reinsurance on transactions with risk profiles similar to those of its structured finance exposures written in financial guaranty form.

9 unchanged sentences

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

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

These assets and liabilities had carrying values of $ 30 million (reported in “other assets”) and $ 4 million (reported in “other liabilities”), respectively, as of September 30, 2025, and were sold in the fourth quarter of 2025.

The Company is evaluating the effect on its consolidated financial statements.

Asset Management

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Actual results could differ from those estimates.

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

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

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

2 unchanged sentences

The unaudited interim condensed consolidated financial statements include the accounts of AGL, its direct and indirect subsidiaries, and its consolidated financial guaranty VIEs (FG VIEs) and consolidated investment vehicles (CIVs).

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

See Note 8, Variable Interest Entities.

Intercompany accounts and transactions between and among all consolidated entities have been eliminated.

3 unchanged sentences

Securities and Exchange Commission.

Recent Accounting Standards Adopted

In September 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606):

Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract .

This ASU refines the scope of Accounting Standards Codification (ASC) 815 to clarify which contracts are subject to derivative accounting and provides clarification under ASC 606 for share-based payments from a customer in a revenue contract.

The Company elected to early adopt this ASU as of January 1, 2025, with no effect on the Company's consolidated financial statements.

Recent Accounting Standards Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-09, Income Taxes (Topic 740):

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures .

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In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) .

The amendments in this ASU require disclosure about specific expense categories, including employee compensation, depreciation and intangible asset amortization, in the notes to financial statements at interim and annual reporting periods.

The amendments in this ASU require disclosure about specific expense categories, including employee compensation, depreciation and intangible asset amortization, in the notes to financial

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

statements at interim and annual reporting periods.

This ASU is effective in fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

2 unchanged sentences

The Company is evaluating when and how it will adopt this ASU and the effect that the amendments in this ASU may have on its expense disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40):

Targeted Improvements to the Accounting for Internal-Use Software .

This ASU updates the capitalization guidance for internal-use software development costs by removing all references to software development project stages and providing new guidance requiring an entity to start capitalizing when both of the following occur:

(i) management has authorized and committed to funding the software project;

and (ii) it is probable that the project will be completed and the software will be used to perform the function intended.

This ASU is effective for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years, with early adoption permitted.

This ASU allows entities to adopt the new guidance prospectively, retrospectively, or with a modified transition.

The Company is evaluating when and how it will adopt this ASU and the effect it may have on its consolidated financial statements.

Segment Information

3 unchanged sentences

This presentation is consistent with the manner in which the Chief Executive Officer and President, the chief operating decision maker (CODM), reviews the business to assess performance and allocate resources.

The CODM predominantly uses adjusted operating income

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

to allocate resources for each segment in the annual budget and forecasting process and to assess the performance for each segment.

The CODM predominantly uses adjusted operating income to allocate resources for each segment in the annual budget and forecasting process and to assess the performance for each segment.

The Company analyzes the operating performance of each segment using “segment adjusted operating income (loss).” Results for each segment and division include specifically identifiable expenses as well as intersegment expense allocations, as applicable, based on time studies and other cost allocation methodologies based on headcount or other metrics.

11 unchanged sentences

The Company does not report assets by reportable segment as the CODM does not assess performance or allocate resources based on assets.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

6 unchanged sentences

The Other category in the tables below primarily includes the effect of consolidating FG VIEs, CIVs and intersegment eliminations.

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

See Note 8, Variable Interest Entities.

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Segment Information

Second Quarter

Third Quarter

Insurance Asset Management Insurance Asset Management

5 unchanged sentences

Segment employee compensation and benefit expenses 44 — 40 —

Segment amortization of deferred acquisition cost 5 — 3 —

Segment amortization of deferred acquisition costs (DAC) 6 — 5 —

Other segment items (2) 32 4 36 2

6 unchanged sentences

Non-cash compensation and operating expenses (3) 15 — 18 —

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Insurance (1) Asset Management Insurance Asset Management

5 unchanged sentences

Segment employee compensation and benefit expenses 140 — 128 —

Segment amortization of deferred acquisition cost 10 — 9 —

Segment amortization of DAC 16 — 14 —

Other segment items (2) 91 17 90 6

7 unchanged sentences

_____________________

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

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

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

6 unchanged sentences

Reconciliation of Segment Information to Consolidated Information

Three Months Ended June 30, 2025

Three Months Ended September 30, 2025

Equity in Earnings (Losses) of Investees Less:

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Reconciliation of Segment Information to Consolidated Information

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

Equity in Earnings (Losses) of Investees Less:

18 unchanged sentences

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 2025

Nine Months Ended September 30, 2025

Equity in Earnings (Losses) of Investees Less:

16 unchanged sentences

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

Equity in Earnings (Losses) of Investees Less:

31 unchanged sentences

Structured finance obligations insured by the Company are generally issued by special purpose entities, including VIEs, and backed by pools of assets having an ascertainable cash flow or market value or other specialized financial obligations.

Some of these VIEs are consolidated as described in Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

Some of these VIEs are consolidated as described in Note 8, Variable Interest Entities.

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

30 unchanged sentences

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

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

As of September 30, 2025 and December 31, 2024, the Company excluded net par outstanding of $ 801 million and $ 1.2 billion attributable to Loss Mitigation Securities.

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

13 unchanged sentences

Debt Service and Par Outstanding

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

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

Gross Net Gross Net

7 unchanged sentences

Total financial guaranty $ 275,355 $ 274,875 $ 262,032 $ 261,552

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

In addition to amounts shown in the table above, the Company had outstanding commitments to provide financial guaranties of $ 1.6 billion of public finance gross par and $ 2.2 billion of structured finance gross par as of September 30, 2025.

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

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

The Company and Financial Guaranty Insurance Company (FGIC) had been parties to a novation agreement, dated as of February 8, 2024 (Novation Agreement) pursuant to which certain FGIC policies insuring approximately $ 353 million of public finance (including infrastructure) gross par and approximately $ 50 million of structured finance gross par as of December 31, 2023 could in the future have been novated to the Company in accordance with the terms and conditions of the Novation Agreement.

The Novation Agreement was entered into in connection with a potential transaction that would accelerate the run-off of FGIC’s insured portfolio (Proposed Transaction), and the Proposed Transaction and novations contemplated by the Novation Agreement, had been subject in all respects to review and approval by New York State Department of Financial Services (NYDFS).

On September 10, 2024, following the NYDFS’s review of the Proposed Transaction and information submitted by FGIC, FGIC received a written communication from the NYDFS stating that the NYDFS does not support the Proposed Transaction.

The Novation Agreement provided that either the Company or FGIC could terminate such agreement in accordance with its terms in the event the Proposed Transaction did not occur on or prior to September 30, 2025.

As the Proposed Transaction did not occur by such date, the Company terminated the Novation Agreement effective October 6, 2025.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio by Internal Rating

As of June 30, 2025

As of September 30, 2025

Public Finance

15 unchanged sentences

Total net par outstanding $ 212,091 100.0 % $ 51,327 100.0 % $ 8,102 100.0 % $ 3,355 100.0 % $ 274,875 100.0 %

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio by Internal Rating

19 unchanged sentences

Components of BIG Net Par Outstanding

As of June 30, 2025

As of September 30, 2025

BIG Net Par Outstanding Net Par

10 unchanged sentences

Total $ 7,251 $ 2,897 $ 1,230 $ 11,378 $ 274,875

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

13 unchanged sentences

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Portfolio

BIG Net Par Outstanding and Number of Risks

As of June 30, 2025

As of September 30, 2025

Net Par Outstanding Number of Risks (2)

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(2) A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Specialty Business

1 unchanged sentence

Specialty Business

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

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

Gross Exposure Net Exposure Gross Exposure Net Exposure

6 unchanged sentences

(1) Excess-of-loss guaranty of a minimum amount of billed rent on a diversified portfolio of real estate properties with an internal rating of AAA that matures in 2044.

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

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

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

This guaranty is accounted for in accordance with ASC 460, Guarantees.

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

In addition to the amounts shown in the table above, as of September 30, 2025, the Company had $ 60 million of outstanding aggregate gross aircraft residual value insurance commitments.

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Expected Loss to be Paid (Recovered)

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The three primary models are:

(i) insurance, as described in Note 5, Contracts Accounted for as Insurance;

(i) insurance, as described in Note 5, Contracts Accounted for as

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

(ii) derivatives, as described in Note 6, Contracts Accounted for as Credit Derivatives, and Note 9, Fair Value Measurement;

and (iii) FG VIE consolidation, as described in Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.

and (iii) FG VIE consolidation, as described in Note 8, Variable Interest Entities.

The Company has paid and may pay future claims and/or recover past claims on policies which fall under each of these accounting models.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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The Company’s reserve committees estimate expected loss to be paid (recovered) by reviewing analyses that consider various scenarios with corresponding probabilities assigned to them.

Depending upon the characteristics of the risk, the Company’s view of the potential size of any loss and the information available to the Company, that analysis may be based upon individually developed cash flow models, internal credit rating assessments, sector-driven loss severity assumptions and/or judgmental assessments.

Depending upon the characteristics of the risk, the

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Company’s view of the potential size of any loss and the information available to the Company, that analysis may be based upon individually developed cash flow models, internal credit rating assessments, sector-driven loss severity assumptions and/or judgmental assessments.

In the case of its assumed business, the Company may conduct its own analysis or use loss estimates provided by ceding insurers.

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

As of Second Quarter Six Months

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

As of Third Quarter Nine Months

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

(in millions)

6 unchanged sentences

$ 104 $ 106 $ ( 38 ) $ ( 34 ) $ ( 17 ) $ ( 20 )

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

1 unchanged sentence

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

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

currencies that ranged from 1.92 % to 5.70 % with a weighted average of 4.02 % as of September 30, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

Net Expected Loss to be Paid (Recovered)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

9 unchanged sentences

____________________

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Expected Loss to be Paid (Recovered)

Roll Forward by Sector

Second Quarter 2025

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

Third Quarter 2025

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

Development (Benefit) Net (Paid)

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

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

(in millions)

8 unchanged sentences

Total $ 186 $ ( 38 ) $ ( 44 ) $ 104

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Second Quarter 2024

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

Third Quarter 2024

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

Development (Benefit) Net (Paid)

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

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

(in millions)

8 unchanged sentences

Total $ 447 $ ( 34 ) $ ( 107 ) $ 306

Six Months 2025

Nine 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 June 30, 2025

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

(in millions)

8 unchanged sentences

Total $ 106 $ ( 17 ) $ 15 $ 104

Six Months 2024

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Nine Months 2024

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

Development (Benefit) Net (Paid)

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

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

(in millions)

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

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Includes cash proceeds for recoveries related to claims previously paid.

The tables above include (i) net LAE paid (recovered) of $ 5 million, $ 5 million, $( 51 ) million and $ 25 million for third quarter 2025, third quarter 2024, nine months 2025 and nine months 2024, respectively, and (ii) net expected LAE to be paid of $ 4 million as of September 30, 2025 and $ 11 million as of December 31, 2024.

Public Finance

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

regulated utility exposures.

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

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

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

regulated utility exposures.

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

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

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

regulated utility exposures, as well as Puerto Rico Electric Power Authority (PREPA).

The total net expected loss to be paid for public finance exposures is net of expected recoveries of $ 310 million and $ 265 million as of September 30, 2025 and December 31, 2024, respectively, for certain claims and LAE that have already been paid.

In third quarter 2025, the economic benefit for public finance transactions was primarily attributable to certain healthcare exposures.

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

regulated utility exposures, PREPA and certain healthcare exposures.

Regulated Utility and European Renewable Energy

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

As of September 30, 2025, the Company insures net par of £ 3.8 billion (or $ 5.2 billion) of BIG U.K.

regulated utility and € 792 million (or $ 930 million) of BIG European renewable energy transactions that are experiencing operational strain.

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

As of September 30, 2025, the Company had £ 1.7 billion (or $ 2.3 billion) of net par outstanding of Thames Water Utilities Finance PLC (Thames), a BIG U.K.

regulated utility.

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

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

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

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

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

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

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

The final report, published in 2025, is the most comprehensive review since the industry’s privatization and covers a wide range of topics, including regulatory reform, company governance, long term investment, the legislative framework and overall strategy and planning in the water system.

Key amongst the many recommendations in this final report

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

was the overhaul of the regulatory system and the consolidation of the U.K.

water utility regulators into a single regulator.

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

Government is reviewing the report.

Government indicated that it is reviewing the report and will publish a white paper in late 2025 with its full response.

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

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

The Company’s Puerto Rico net par and net debt service outstanding as of 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.

The Company’s Puerto Rico net par and net debt service outstanding as of September 30, 2025 were $ 553 million and $ 645 million, respectively, compared with net par and net debt service outstanding as of December 31, 2024 of $ 637 million and $ 756 million, respectively.

Defaulting Puerto Rico Exposure

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

$ 617 million, respectively.

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

As of September 30, 2025, the Company’s PREPA net par and debt service outstanding were $ 464 million and $ 539 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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Certain legal actions involving the Company and relating to defaults by the Commonwealth and its authorities and public corporations were resolved in 2022.

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

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

PREPA – Current Proceedings

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

District Court for the District of Puerto Rico’s (Federal District Court of Puerto Rico) determination on a plan of adjustment and disclosure statement, as described below.

PREPA – Recently Active Proceedings

Lien Challenge Adversary Proceeding and Appeal.

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The ultimate value of the claim, according to the Federal District Court of Puerto Rico, should be determined through a claim estimation proceeding.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

On June 26, 2023, the Federal District Court of Puerto Rico issued an opinion and order estimating the unsecured net revenue claim to be $ 2.4 billion as of July 3, 2017.

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The FOMB asked the First Circuit to reconsider its determination that bondholders’ security interest in future net revenues is perfected twice, once on June 26, 2024, and again on November 27, 2024.

The First Circuit denied both requests, with the most recent denial published on December 31, 2024.

Plan of Adjustment and Disclosure Statement .

In both instances, the First Circuit upheld its determination, with the most recent decision published on December 31, 2024.

Bondholders’ Administrative Expense Claim .

In light of the decision by the First Circuit described above in Lien Challenge Adversary Proceeding and Appeal, in March 2025, the Federal District Court of Puerto Rico ordered the parties to propose an agreed proposal or competing proposals for a litigation schedule for resolving certain key issues related to PREPA bondholders’ claims, including determining whether the bondholders’ perfected lien described above includes collateral used for PREPA’s administrative expenses, prior to a further plan confirmation hearing.

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

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

At an Omnibus Hearing held on October 22, 2025, the Federal District Court of Puerto Rico instructed the parties to submit a joint discovery schedule and status report for the administrative expense claim by November 24, 2025.

In August 2025, the FOMB announced that the U.S.

administration terminated six of its seven board members.

On September 18, 2025, three of the terminated board members sued the U.S.

administration for reinstatement, alleging that they had been unlawfully terminated without cause and that their offices are a form of property protected by due process.

On October 3, 2025, the Federal District Court of Puerto Rico granted the plaintiffs’ request for a preliminary injunction.

Mediation and PREPA Litigation Stay

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

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

The Federal District Court of Puerto Rico most recently extended the term of mediation through April 30, 2026.

Plan of Adjustment, Disclosure Statement and Related Stayed Proceedings

The FOMB filed an initial plan of adjustment and disclosure statement for PREPA with the Federal District Court of Puerto Rico on December 16, 2022.

On November 17, 2023, the Federal District Court of Puerto Rico approved a supplemental disclosure statement (Supplemental Disclosure Statement) relating to the PREPA plan of adjustment filed by the FOMB (as amended or modified from time to time).

On February 16, 2024, the FOMB filed with the Federal District Court of Puerto Rico the Modified Fourth Amended Title III Plan of Adjustment (FOMB PREPA Plan).

The Supplemental Disclosure Statement and the FOMB PREPA Plan are based on the PREPA fiscal plan certified by the FOMB on June 23, 2023.

The confirmation hearing for the FOMB PREPA Plan occurred in March 2024.

At the end of the hearing, the Federal District Court of Puerto Rico stated that it was taking the confirmation of the FOMB PREPA Plan under advisement.

On February 16, 2024, the FOMB filed with the Federal District Court of Puerto Rico the Modified Fourth Amended Title III Plan of Adjustment (Fourth FOMB PREPA Plan).

The Supplemental Disclosure Statement and the Fourth FOMB PREPA Plan are based on the PREPA fiscal plan certified by the FOMB on June 23, 2023.

The confirmation hearing for the Fourth FOMB PREPA Plan occurred in March 2024.

At the end of the hearing, the Federal District Court of Puerto Rico stated that it was taking the confirmation of the Fourth FOMB PREPA Plan under advisement.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

In light of the decision by the First Circuit described above in Lien Challenge Adversary Proceeding and Appeal, in March 2025, the Federal District Court of Puerto Rico ordered the parties to propose an agreed proposal or competing proposals for a litigation schedule for resolving certain key issues related to PREPA bondholders’ claims prior to a further FOMB PREPA Plan confirmation hearing.

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

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

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

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

administration terminated five of its seven board members.

PREPA Mediation and Stayed Proceedings

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

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

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

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

The following proceedings involving the Company and relating to the default by PREPA remain stayed in the Federal District Court of Puerto Rico pending its determination on a plan of adjustment and disclosure statement:

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

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Non-Defaulting Puerto Rico Exposure

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

As of September 30, 2025 and December 31, 2024, the Company had $ 76 million and $ 92 million, respectively, of remaining non-defaulting Puerto Rico net par outstanding related primarily to the Puerto Rico Municipal Finance Agency (MFA).

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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The Company continues to update its evaluation of these loss severities as new information becomes available.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company incorporates a recovery assumption into its loss modeling to reflect observed trends in recoveries of deferred principal balances of modified first lien loans that had been previously written off.

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The Company evaluates its assumptions quarterly based on actual recoveries of charged-off loans observed from period to period and reasonable expectations of future recoveries.

During third quarter 2025, due to observed trends and high levels of home equity, the Company updated its assumptions of such recoveries to reflect a base scenario, and a weighted-average, recovery of 60 %, up from 50 %, which resulted in a benefit in economic development of $ 26 million.

The Company projects the overall future cash flow from a collateral pool by adjusting the payment stream from the principal and interest contractually due on the underlying mortgages for the collateral losses it projects as described above;

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Economic Loss Development (Benefit)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Collateral losses are projected to be offset by recoveries on deferred principal balances.

In the base scenario, the Company assumes the final CDR will be reached one year after the 36 -month CDR plateau period.

In the most heavily weighted scenario (base scenario), the Company assumes the final CDR will be reached one year after the 36 -month CDR plateau period.

The Company then assumes that loss severities begin returning to levels consistent with underwriting assumptions beginning after the initial 18 -month period, staying or trending, as applicable, to 40 % in the base scenario over 2.5 years.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Key Assumptions in Base Scenario Expected Loss Estimates

First Lien U.S.

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

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

Range Weighted Average Range Weighted Average

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

RMBS losses is the performance

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

of its HELOC transactions.

RMBS losses is the performance of its HELOC transactions.

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

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Key Assumptions in Base Scenario Expected Loss Estimates

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

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

Range Weighted Average Range Weighted Average

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(1) The liquidation rates range from current but recently delinquent loans to foreclosed loans.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company modeled scenarios with a longer period of elevated defaults and others with a shorter period of elevated defaults as well as various levels of assumed recoveries.

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Amounts presented in this note relate only to contracts accounted for as insurance, unless otherwise specified.

See Note 6, Contracts Accounted for as Credit Derivatives, for amounts related to CDS and Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles, for amounts related to consolidated FG VIEs.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

See Note 6, Contracts Accounted for as Credit Derivatives, for amounts related to CDS and Note 8, Variable Interest Entities, for amounts related to consolidated FG VIEs.

Net Earned Premiums

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Net earned premiums $ 94 $ 97 $ 274 $ 300

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Gross Premium Receivable,

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Specialty insurance premium receivable 1 1

June 30, $ 1,631 $ 1,472

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

September 30, $ 1,583 $ 1,513

Approximately 68 % and 69 % of gross premiums receivable, net of commissions payable, as of September 30, 2025 and December 31, 2024, respectively, are denominated in currencies other than the U.S.

dollar, primarily the pound sterling and euro.

The timing and cumulative amount of actual collections and net earned premiums may differ from those of expected collections and of expected net earned premiums in the table below due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the consumer price indices, changes in expected lives and new business.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Insurance

Expected Future Premium Collections and Earnings

As of June 30, 2025

As of September 30, 2025

Future Net Premiums to be Earned (2)

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(in millions)

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

2025 (October 1 - December 31) $ 60 $ 78 $ 10 $ 88

Subtotal 2025 119 153 20 173

2026 157 294 37 331

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(2) Net of reinsurance.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(dollars in millions)

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Insurance Contracts’ Losses Reported in the Consolidated Financial Statements

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Loss reserves and salvage and subrogation recoverable are discounted at risk-free rates for financial guaranty insurance obligations that ranged from 1.92 % to 5.70 % with a weighted average of 4.03 % as of September 30, 2025 and 1.98 % to 5.22 % with a weighted average of 4.38 % as of December 31, 2024.

The following table provides information on net reserve (salvage), which includes loss and LAE reserves and salvage and subrogation recoverable, both net of reinsurance.

Net Reserve (Salvage) by Sector

Sector June 30, 2025 December 31, 2024

Sector September 30, 2025 December 31, 2024

(in millions)

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Financial Guaranty Insurance Contracts

As of June 30, 2025

As of September 30, 2025

(in millions)

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Net expected loss to be expensed (present value) $ 257

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Expected Loss to be Expensed

Financial Guaranty Insurance Contracts

As of June 30, 2025

As of September 30, 2025

(in millions)

2025 (July 1 - September 30) $ 3

2025 (October 1 - December 31) $ 3

Subtotal 2025 7

Net expected loss to be expensed (present value) 257

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Loss and LAE (Benefit) by Sector

Second Quarter Six Months

Third Quarter Nine Months

Sector 2025 2024 2025 2024

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BIG Transaction Loss Summary

As of June 30, 2025

As of September 30, 2025

Gross Net Total BIG

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

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

The estimated remaining weighted average life of credit derivatives was 8.9 years and 8.4 years as of September 30, 2025 and December 31, 2024, respectively.

Credit Derivatives (1)

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

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

Sector Net Par

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Fair Value Gains (Losses) on Credit Derivatives

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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CDS Spread on AG (in basis points)

As of June 30,

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

As of September 30,

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

2024 As of December 31, 2023

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and Effect of AG Credit Spread

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(in millions)

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Net fair value of credit derivatives $ ( 26 ) $ ( 29 )

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

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

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

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Carrying Value

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(in millions)

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____________________

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

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

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

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

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

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

(1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $ 581 million and $ 569 million as of September 30, 2025 and December 31, 2024, respectively, excluding the Company’s ownership interest in Sound Point and certain investments in funds that are accounted for as CIVs.

As of September 30, 2025 and December 31, 2024, 8.8 % and 12.6 %, respectively, of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of Loss Mitigation Securities, collateralized loan obligation (CLO) equity tranches and liquidity bonds issued by a U.K.

regulated utility.

As of September 30, 2025 and December 31, 2024, the carrying value of Loss Mitigation Securities was $ 140 million and $ 479 million, respectively.

In July 2025, the Company’s largest BIG exposure in the investment portfolio, which was obtained as a part of a loss mitigation strategy, with an aggregate 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 received $ 459 million in connection with this resolution, including principal, accrued interest and other expected recoveries.

This resolution did not have a significant effect on the condensed consolidated statements of operations.

As of September 30, 2025 and December 31, 2024, the carrying value of CLO equity tranches was $ 242 million and $ 277 million, respectively.

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

The investment portfolio includes $ 945 million in alternative investments primarily consisting of (i) CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $ 598 million of investments across various asset classes that are reported in other invested assets.

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

The Company’s alternative investment commitments as of

In addition, as of September 30, 2025 and December 31, 2024, $ 45 million and $ 33 million, respectively, of the Company’s total alternative investments was invested in a Sound Point managed fund which

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

was reported in “assets of CIVs,” “other liabilities” and “nonredeemable noncontrolling interests.” See Note 8, Variable Interest Entities.

The Company’s alternative investment commitments as of September 30, 2025 include $ 563 million in unfunded commitments which together with its $ 945 million in funded commitments total $ 1.5 billion, including a $ 1 billion commitment to invest in Sound Point managed alternative investments, subject to certain conditions precedent.

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

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

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

regulated utility to which it has insured exposure.

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

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

Accrued investment income, which is reported in “other assets,” was $ 70 million as of September 30, 2025 and $ 64 million as of December 31, 2024.

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

As of June 30, 2025

As of September 30, 2025

Security Type Percent

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

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

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

government-agency obligations represented 74 % and 68 % of mortgage-backed securities as of September 30, 2025 and December 31, 2024, respectively, based on fair value.

(4) This category includes an investment in an affiliated entity with amortized cost of $ 48 million and $ 41 million, and fair value of $ 49 million and $ 42 million, as of September 30, 2025 and December 31, 2024, respectively.

Gross Unrealized Loss by Length of Time

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

As of June 30, 2025

As of September 30, 2025

Less than 12 months 12 months or more Total

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

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

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

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

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

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

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

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

As of September 30, 2025, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 277 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2024, 438 securities had unrealized losses in excess of 10% of their carrying value.

The total unrealized loss for these securities was $ 151 million as of September 30, 2025 and $ 223 million as of December 31, 2024.

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

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

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

As of June 30, 2025

As of September 30, 2025

Cost Estimated

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Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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 and $ 79 million as of September 30, 2025 and December 31, 2024, respectively.

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 $ 789 million and $ 1,135 million as of September 30, 2025 and December 31, 2024, respectively.

Income from Investments

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Income from Investments

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

13 unchanged sentences

____________________

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

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

(1) Amounts include $ 7 million of investment income on Loss Mitigation Securities for both third quarter 2025 and third quarter 2024, and $ 21 million for both nine months 2025 and nine months 2024.

The increase in investment income from available-for-sale fixed-maturity securities in third quarter 2025 and nine months 2025 is primarily due to investment income on CLO equity tranches in the available-for-sale portfolio.

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

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

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

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

Fair Value Gains (Losses) on Trading Securities

(2) Fair value gains on trading securities pertaining to securities still held as of September 30, 2025 were $ 7 million for third quarter 2025 and $ 9 million for nine months 2025.

Fair value gains on trading securities pertaining to securities still held as of September 30, 2024 were $ 7 million for third quarter 2024 and $ 26 million for nine months 2024.

A majority of the trading securities are Puerto Rico CVIs.

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

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

As of September 30, 2025, the remaining CVIs had a fair value of $ 125 million.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Realized Investment Gains (Losses)

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Realized gains and losses on sales of investments are determined using the specific identification method.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Net Realized Investment Gains (Losses)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

6 unchanged sentences

Net realized investment gains (losses) $ ( 10 ) $ — $ ( 32 ) $ 2

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

The proceeds from sales of fixed-maturity securities classified as available-for-sale were $ 106 million in third quarter 2025, $ 87 million in third quarter 2024, $ 533 million in nine months 2025 and $ 575 million in nine months 2024.

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

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for Available-for-Sale Fixed-Maturity Securities

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Balance, end of period $ 54 $ 66 $ 54 $ 66

Credit losses for third quarter 2025 and nine months 2025 were primarily associated with alternative investments.

Credit losses for third quarter 2024 and nine months 2024 were primarily related to Loss Mitigation Securities.

The Company did not purchase any securities with credit deterioration during the periods presented.

Most of the Company’s securities with credit deterioration are Loss Mitigation Securities.

Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles

The insurance subsidiaries provide financial guaranties with respect to debt obligations of special purpose entities, including VIEs, but do not act as the servicer or collateral manager for any guaranteed VIE obligations.

The transaction structure generally provides certain financial protections to the insurance subsidiaries.

This financial protection can take several forms, the most common of which are overcollateralization, first loss protection (or subordination) and excess spread.

In the case of overcollateralization (i.e., the principal amount of the securitized assets exceeds the principal amount of the structured finance obligations), the structure allows defaults of the securitized assets before a default is experienced on the structured finance obligation guaranteed by the insurance subsidiaries.

In the case of first loss, the insurance subsidiaries’ financial guaranty insurance policy only covers a senior layer of losses experienced by multiple obligations issued by the VIEs.

Variable Interest Entities

The Company provides financial guaranties with respect to debt obligations of special purpose entities, including VIEs, but does not act as the servicer or collateral manager for any guaranteed VIE obligations.

The transaction structure generally provides certain financial protections to the Company that can take several forms, the most common of which are overcollateralization, first loss protection (or subordination) and excess spread.

In the case of first loss, the Company’s financial guaranty insurance policy only covers a senior layer of losses experienced by multiple obligations issued by the VIEs.

The first loss exposure with respect to the assets is either retained by the seller or sold off in the form of equity or mezzanine debt to other investors.

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

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

As part of the terms of its financial guaranty contracts, the insurance subsidiaries obtain certain protective rights with respect to the VIE that give them additional controls over a VIE.

The Company is not primarily liable for the debt obligations issued by the VIEs it insures and would only be required to make payments on insured debt obligations in the event that the issuer defaults on any principal or interest due and only for the amount of the shortfall.

The Company’s creditors do not have any rights with regard to the collateral supporting the insured debt issued by the VIEs.

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

As part of the terms of its financial guaranty contracts insuring the debt obligations of a VIE, the Company obtains certain protective rights that give it additional controls over the VIE.

These protective rights are triggered by the occurrence of certain events, such as failure to be in compliance with a covenant due to poor deal performance or a deterioration in a servicer’s or collateral manager’s financial condition.

At deal inception, the insurance subsidiaries typically are not deemed to control the VIE;

however, once a trigger event occurs, the insurance subsidiaries’ control of the VIE typically increases.

The Company continuously evaluates its power to direct the activities that most significantly impact the economic performance of VIEs that have debt obligations insured by the insurance subsidiaries and, accordingly, where they are obligated to absorb VIE losses or receive benefits that could potentially be significant to the VIE.

The insurance subsidiaries are deemed to be the control party for certain VIEs under GAAP, typically when their protective rights give them the power to both terminate and replace the transaction’s servicer or collateral manager, which are characteristics specific to the Company’s financial guaranty contracts.

If the protective rights that could make the insurance subsidiaries the control party have not been triggered, then the VIE is not consolidated.

If the insurance subsidiaries are deemed to no longer have those protective rights, the VIE is deconsolidated.

The structured finance FG VIEs’ liabilities that are guaranteed by the insurance subsidiaries are considered to be with recourse, because the insurance subsidiaries guarantee the payment of principal and interest regardless of the performance of the related FG VIEs’ assets.

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

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

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

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

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

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

Typically, at deal inception, the Company is not deemed to control the VIEs whose debt it insures;

however, once a trigger event occurs, the Company’s control of the VIE typically increases.

With respect to the debt obligations of VIEs that it insures, the Company continuously evaluates its power to direct the activities that most significantly impact the VIE’s economic performance and the circumstances where it is obligated to absorb VIE losses or is entitled to receive benefits that could potentially be significant to the VIE.

Under GAAP, the Company is typically deemed to be the control party for a VIE when its protective rights give it the power to both terminate and replace the transaction’s servicer or collateral manager, which are characteristics specific to the Company’s financial guaranty contracts.

If the protective rights that could make the Company the control party have not been triggered, then the VIE is not consolidated.

If the Company is deemed to no longer have those protective rights, the VIE is deconsolidated.

If the Company consolidates a VIE whose debt it insures as a result of its consolidation analysis, the Company refers to such consolidated VIE as an FG VIE.

The FG VIEs’ liabilities that are insured by the Company are considered to be with recourse, because the Company guarantees the payment of principal and interest regardless of the performance of the related FG VIEs’ assets.

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

The Company has elected the fair value option (FVO) for the assets and liabilities of all of the FG VIEs, which are all RMBS as of both September 30, 2025 and December 31, 2024.

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

To allow for consistency in the accounting for the assets and liabilities of its consolidated FG VIEs, the Company elected the FVO.

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

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

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

As of both September 30, 2025 and December 31, 2024, the Company consolidated 23 FG VIEs.

During the second quarter of 2025, the Company consolidated one FG VIE when its protective rights were triggered that made it the control party.

The Company subsequently irrevocably waived its control rights resulting in the deconsolidation of this FG VIE.

Components of FG VIE Assets and Liabilities

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Consolidated FG VIEs by Type of Collateral

June 30, 2025 December 31, 2024

(in millions)

FG VIEs’ assets:

RMBS (3) $ 144 $ 147

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

Total FG VIEs’ assets $ 211 $ 147

FG VIEs’ liabilities with recourse:

RMBS (3) $ 152 $ 155

Other, at fair value (2) 34 —

Total FG VIEs’ liabilities with recourse $ 186 $ 155

FG VIEs’ liabilities without recourse:

RMBS (3) $ 9 $ 9

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

Total FG VIEs’ liabilities without recourse $ 16 $ 9

____________________

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

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

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Selected Information for FG VIEs’ Assets and Liabilities

Measured under the FVO

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(in millions)

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(1) FG VIEs’ liabilities with recourse will mature at various dates ranging from 2025 through 2038.

The change in the ISCR of the FG VIEs’ assets for which the Company elected the FVO held as of September 30, 2025 that was reported in the condensed consolidated statements of operations for third quarter 2025 and nine months 2025 were gains of $ 3 million and $ 6 million, respectively.

The change in the ISCR of the FG VIEs’ assets at FVO held as of September 30, 2024 were losses of $ 2 million and $ 4 million for third quarter 2024 and nine months 2024, respectively.

The ISCR amount is determined by using expected cash flows at the original date of consolidation, discounted at the effective yield, less current expected cash flows discounted at that same original effective yield.

CIVs consist of certain Sound Point funds for which the Company is the primary beneficiary or has a controlling interest.

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

In addition, creditors of the CIVs have no

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

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

Noncontrolling Interest in FG VIEs and CIVs

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

As of September 30, 2025 and December 31, 2024, the Company consolidated one active CIV with assets of $ 136 million and $ 101 million, respectively, consisting primarily of investments with Sound Point affiliated entities.

Noncontrolling Interest in CIVs

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

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

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

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

Of the approximately 16 thousand policies monitored as of September 30, 2025, approximately 14 thousand policies are not within the scope of FASB ASC 810, Consolidation , because these financial guaranties relate to the debt obligations of governmental organizations or financing entities established by a governmental organization.

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

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

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

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

As of September 30, 2025 and December 31, 2024, the Company identified 52 and 50 policies, respectively, that contain provisions and experienced events that may trigger consolidation.

The Company holds variable interests in investment vehicles which are not consolidated, as the Company is not the primary beneficiary.

As of September 30, 2025, the Company’s maximum exposure to losses relating to these VIEs was $ 816 million, which is limited to the carrying value of these assets.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Fair Value Measurement

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

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

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

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

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

The fair value hierarchy prioritizes

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

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

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

There were transfers of securities into Level 3 in the investment portfolio and CIVs due to changes in observability of pricing inputs, and in CIVs, in connection with the distribution of assets from a CIV, in third quarter 2024.

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

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The pricing services prepare estimates of fair value using their pricing models, which take into account:

benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, industry and economic events and sector groupings.

benchmark yields, reported trades, broker/dealer quotes, issuer

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

spreads, two-sided markets, benchmark securities, bids, offers, reference data, industry and economic events and sector groupings.

Additional valuation factors that can be taken into account are nominal spreads and liquidity adjustments.

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

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

As of September 30, 2025, the Company used models to price 154 securities.

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Committed Capital Securities

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

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

The fair value of these assets is based on the observable published daily values of the underlying mutual

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

funds included in the plans (Level 1) or based upon the NAV of the funds if a published daily value is not available (Level 2).

The NAVs are based on observable information.

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Assumptions and Inputs

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

FG VIEs’ Assets and Liabilities

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

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

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

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

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

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Assets and Liabilities of CIVs

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Inputs may include dealer price quotations, yield curves, credit curves, forward/CDS/index spreads, prepayments rates, strike and expiry dates, volatility statistics and other factors.

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

As of June 30, 2025

As of September 30, 2025

Fair Value Hierarchy

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

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

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

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

See Note 8, Variable Interest Entities.

Assured Guaranty Ltd.

1 unchanged sentence

Changes in Level 3 Fair Value Measurements

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

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

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

Second Quarter 2025

Third Quarter 2025

Fixed-Maturity Securities, Available-for-Sale

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(in millions)

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

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

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

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Settlements — — ( 6 ) ( 496 ) ( 1 ) ( 6 ) — —

Consolidations — — — — — 9 — —

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

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

Deconsolidations — — — — — ( 9 ) — —

Fair value as of September 30, 2025 $ 10 $ 168 $ 145 $ 521 $ 4 $ 145 $ 132 $ 15

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

Earnings $ — $ 6 (2) $ 11 (4) $ 9 (3)

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

Second Quarter 2025

Third Quarter 2025

Credit Derivative

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(in millions)

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

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

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

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Settlements ( 2 ) 5

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

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

Fair value as of September 30, 2025 $ ( 26 ) $ ( 159 )

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

Earnings $ 3 (6) $ ( 4 ) (2)

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

Second Quarter 2024

Third Quarter 2024

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

Subdivisions RMBS Asset-

Securities FG VIEs’

Securities Fixed-Maturity Securities, Trading FG VIEs’

Assets Equity Securities Structured Products Other

(in millions)

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

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

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

4 unchanged sentences

Settlements — ( 6 ) ( 31 ) ( 2 ) ( 6 ) — — —

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

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

Reclassifications (9) — — — 8 — — ( 8 ) —

Transfers out of Level 3 — — — — — ( 2 ) — —

Fair value as of September 30, 2024 $ 7 $ 152 $ 787 $ 6 $ 156 $ 97 $ 237 $ 4

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

Earnings $ — $ — $ 9 (4) $ ( 1 ) (4) $ ( 4 ) (3)

1 unchanged sentence

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

Second Quarter 2024

Third Quarter 2024

Credit Derivative

1 unchanged sentence

(in millions)

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

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

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

1 unchanged sentence

Other comprehensive income (loss) — ( 1 )

Issuances ( 2 ) —

Settlements ( 1 ) 5

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

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

Fair value as of September 30, 2024 $ ( 34 ) $ ( 392 )

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

Earnings $ 1 (6) $ ( 4 ) (2)

2 unchanged sentences

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

Six Months 2025

Nine Months 2025

Fixed-Maturity Securities, Available-for-Sale

11 unchanged sentences

Consolidations — — — — — 9 — —

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

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

Deconsolidations — — — — — ( 9 ) — —

Fair value as of September 30, 2025 $ 10 $ 168 $ 145 $ 521 $ 4 $ 145 $ 132 $ 15

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

Earnings $ — $ 11 (2) $ 33 (4) $ 10 (3)

1 unchanged sentence

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

Six Months 2025

Nine Months 2025

Credit Derivative

6 unchanged sentences

Settlements ( 107 ) 13

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

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

Fair value as of September 30, 2025 $ ( 26 ) $ ( 159 )

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

Earnings $ 3 (6) $ ( 8 ) (2)

2 unchanged sentences

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

Six Months 2024

Nine Months 2024

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

Subdivisions RMBS Asset-

Securities FG VIEs’

Securities Fixed-Maturity Securities, Trading FG VIEs’

Assets Equity Securities Structured Products Other

7 unchanged sentences

Settlements ( 1 ) ( 19 ) ( 95 ) ( 2 ) ( 18 ) — — —

Reclassifications (9) — — — 8 — — ( 8 ) —

Transfers into Level 3 — — 20 — — 3 10 —

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

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

Transfers out of Level 3 — — — — — ( 2 ) — —

Fair value as of September 30, 2024 $ 7 $ 152 $ 787 $ 6 $ 156 $ 97 $ 237 $ 4

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

Earnings $ — $ ( 5 ) (2) $ 21 (4) $ ( 3 ) (4) $ ( 12 ) (3)

OCI $ 2 $ 5 $ 3 $ 1 $ 1

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Six Months 2024

Nine Months 2024

Credit Derivative

5 unchanged sentences

Other comprehensive income (loss) — ( 1 )

Issuances ( 2 ) —

Settlements ( 1 ) 157

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

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

Fair value as of September 30, 2024 $ ( 34 ) $ ( 392 )

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

Earnings $ 9 (6) $ —

9 unchanged sentences

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

(9) Represents securities transferred from one of the CIVs to the investment portfolio due to the distribution of assets of that CIV.

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

Assured Guaranty Ltd.

2 unchanged sentences

Quantitative Information About Level 3 Fair Value Inputs

As of June 30, 2025

As of September 30, 2025

Financial Instrument Description Fair Value Assets (Liabilities)

38 unchanged sentences

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

(4) Weighted average is calculated as a percentage of current par outstanding for all categories except for assets of CIVs, for which it is calculated as a percentage of fair value.

(4) Weighted average is calculated as a percentage of current par outstanding for all categories except for assets of CIVs and fixed-maturity securities, trading, for which it is calculated as a percentage of fair value.

Assured Guaranty Ltd.

56 unchanged sentences

Fair Value of Financial Instruments Not Carried at Fair Value

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

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

Amount Estimated

16 unchanged sentences

government passed legislation to implement the Organization for Economic Co-Operation and Development’s Base Erosion and Profit Shifting Pillar Two income inclusion rule.

This includes a multinational top-up tax which will apply to large multinational corporations for accounting periods beginning on or after December 31, 2023.

This includes a multinational top-up tax which applies to large multinational corporations for accounting periods beginning on or after December 31, 2023.

This applies to AGL and its subsidiaries, requiring a minimum effective rate of 15 % in all jurisdictions in which they operate.

14 unchanged sentences

Provision for Income Taxes

The Company’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due, for example, to the variability in loss reserves, fair value of its credit derivatives and VIEs and foreign exchange gains and losses which prevent the Company from projecting a reliable estimated annual effective tax rate and pre-tax income for the full year 2025.

The Company’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due in part to the variability in loss reserves, fair value of its credit derivatives and VIEs and foreign exchange gains and losses which prevent the Company from projecting a reliable estimated annual effective tax rate and pre-tax income for the full year 2025.

A discrete calculation of the provision is calculated for each interim period.

8 unchanged sentences

marginal corporate tax rate of 25 %.

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

The Company’s effective tax rate was 15.4 %, 19.9 %, 18.5 % and 19.2 % for third quarter 2025, third quarter 2024, nine months 2025 and nine months 2024, respectively.

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

1 unchanged sentence

tax-exempt interest, and foreign taxes.

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

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

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

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

In addition, third quarter 2024 and nine months 2024 included the global minimum tax.

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

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

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

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

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

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

In October 2025, HMRC issued an inquiry into the Company’s 2022 and 2023 U.K.

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

subsidiaries had open tax years with HMRC for 2021 forward.

6 unchanged sentences

For example, the Company is involved in a number of legal actions in the Federal District Court of Puerto Rico to enforce or defend its rights with respect to the obligations of PREPA it insures.

There are two current proceedings related to PREPA, while there are a number of other unresolved proceedings related to PREPA that remain stayed pending the Federal District Court of Puerto Rico’s determination on the FOMB PREPA Plan.

There are two recently active proceedings related to PREPA, while there are a number of other unresolved proceedings related to PREPA that remain stayed pending the Federal District Court of Puerto Rico’s determination on a plan of adjustment and disclosure statement.

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

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

The impact, if any, of

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

3 unchanged sentences

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Second Quarter 2025

Third Quarter 2025

Net Unrealized Gains (Losses) on Investments with:

4 unchanged sentences

(in millions)

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

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

Other comprehensive income (loss) before reclassifications 38 — — 1 — 39

8 unchanged sentences

Other comprehensive income (loss) 37 9 1 1 — 48

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

Balance, September 30, 2025 $ ( 61 ) $ ( 70 ) $ ( 17 ) $ ( 35 ) $ 4 $ ( 179 )

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Second Quarter 2024

Third Quarter 2024

Net Unrealized Gains (Losses) on Investments with:

4 unchanged sentences

(in millions)

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

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

Other comprehensive income (loss) before reclassifications 147 13 ( 2 ) — — 158

2 unchanged sentences

( 4 ) 3 — — — ( 1 )

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

Total before tax

4 unchanged sentences

Other comprehensive income (loss) 152 10 ( 1 ) — — 161

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Balance, September 30, 2024 $ ( 91 ) $ ( 86 ) $ ( 21 ) $ ( 38 ) $ 5 $ ( 231 )

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Six Months 2025

Nine Months 2025

Net Unrealized Gains (Losses) on Investments with:

15 unchanged sentences

Other comprehensive income (loss) 174 29 1 2 — 206

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

Balance, September 30, 2025 $ ( 61 ) $ ( 70 ) $ ( 17 ) $ ( 35 ) $ 4 $ ( 179 )

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Six Months 2024

Nine Months 2024

Net Unrealized Gains (Losses) on Investments with:

16 unchanged sentences

Other comprehensive income (loss) 111 18 ( 1 ) — — 128

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

Balance, September 30, 2024 $ ( 91 ) $ ( 86 ) $ ( 21 ) $ ( 38 ) $ 5 $ ( 231 )

Share Repurchases

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

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

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

On August 6, 2025 and November 5, 2025, the Board authorized the repurchase of an additional $ 300 million and $ 100 million, respectively, of the Company’s common shares.

As of November 5, 2025, the remaining amount the Company was authorized to purchase was $ 332 million of its common shares.

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Share Repurchases

8 unchanged sentences

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

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

2025 (July 1 - September 30) 1,423,121 118 83.06

2025 (October 1 - November 5) 621,471 51 82.14

Total 2025 4,917,325 $ 420 $ 85.37

1 unchanged sentence

(1) Excludes commissions and excise taxes.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Earnings Per Share

Computation of Earnings Per Share

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

16 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 1. Financial Statements