What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-11-07 compared with 2025-08-08 · 288 added, 254 removed, 1198 unchanged (31% of the section changed)

11 unchanged sentences

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

(iv) the possibility of a U.S.

government shutdown, payment defaults on the debt of the U.S.

(iv) the impact of a U.S.

government shutdown and/or the possibility of payment defaults on the debt of the U.S.

government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings;

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

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

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

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

(x) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences;

(xi) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers;

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

(xiii) the possibility that Assured Guaranty’s mergers, acquisitions, divestitures and other strategic transactions, including the transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP), do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences;

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

(xv) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities (CCS), and its consolidated variable interest entities (VIEs);

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

(viii) the possibility that Assured Guaranty’s mergers, acquisitions, divestitures and other strategic transactions, including the transactions with Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point) and/or Assured Healthcare Partners LLC (AHP), do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences;

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

(x) the impact of market volatility on the fair value of Assured Guaranty’s assets and liabilities subject to mark-to-market, including certain of its investments, contracts accounted for as derivatives, its committed capital securities (CCS), and its consolidated variable interest entities (VIEs);

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

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

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

(xiv) the possibility that underwriting insurance in new jurisdictions and/or covering new sectors, lines or classes of business does not result in the benefits anticipated or subjects Assured Guaranty to negative consequences;

(xv) increased competition, including from new entrants into the financial guaranty industry, nonpayment insurance and other forms of capital saving or risk syndication available to banks and insurers;

(xvi) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s insurance subsidiaries have insured;

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(xxii) changes in applicable accounting policies or practices;

(xxiii) public health crises,

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

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

(xxiv) natural or man-made catastrophes;

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On April 2, 2025, the U.S.

government announced a “reciprocal tariff” strategy entailing extensive global tariff increases, with the objective of rectifying trade practices that contribute to large and persistent annual U.S.

government announced a “reciprocal tariff” strategy under the authority of the International Emergency Economic Powers Act (IEEPA) entailing extensive global tariff increases, with the objective of rectifying trade practices that contribute to large and persistent annual U.S.

goods trade deficits.

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

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

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

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

subsequently postponed newly announced reciprocal tariffs, which took effect on August 7, 2025, as significant uncertainty remains.

On August 29, 2025, the U.S.

Court of Appeals for the Federal Circuit ruled that the U.S.

government had exceeded its authority under the IEEPA but permitted the tariffs to remain in effect to provide time for the government to appeal.

Supreme Court granted certiorari on September 9, 2025, and heard oral arguments on the case on November 5, 2025;

as of November 6, 2025, a decision is pending.

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

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

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

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

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

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

At the end of August 2025, the latest published data available, the U.S.

unemployment rate, seasonally adjusted, stood at 4.3%, higher than the 4.1% where it started the year.

As of November 6, 2025, the U.S.

Bureau of Economic Analysis (BEA) had not released the three-month period ended September 30, 2025 (third quarter 2025) gross domestic product (GDP) estimate due to the 2025 U.S.

federal government shutdown.

According to the BEA’s third estimate of second quarter 2025 GDP, the latest BEA data available, GDP increased at an annual rate of 3.8%, compared to a real GDP decrease of 0.6% in the first quarter of 2025.

According to the U.S.

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

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

before seasonal adjustment for the 12-month period ending September 2025, as measured by the Consumer Price Index for All Urban Consumers, was 3.0%, as compared to 2.4% for the 12-month period ending September 2024.

According to the U.K.

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

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

Office for National Statistics, the Consumer Prices Index including owner occupiers’ housing costs rose 4.1% for the 12 months through September 2025, as compared to 2.6% for the 12 months through September 2024.

Generally, inflation reduces the real value of money over time.

For obligors whose payments the Company insures, inflation can mean that the real value of their fixed debt payments decreases, potentially making it relatively easier for obligors to service these fixed-rate debts and less likely for them to default.

However, if inflation increases operating expenses and revenues or incomes do not keep pace, obligors may find it more difficult to make their payment obligations, even if nominal debt payments remain unchanged.

Higher inflation can also lead to tighter monetary policies, which are actions taken by sovereign central banks to reduce the amount of money circulating in the economy, including raising interest rates, which can make refinancing or servicing debt more difficult.

In addition, consumer price inflation in the U.K.

increases reported net par outstanding for certain U.K.

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

affects reported net par outstanding for certain U.K.

exposures with $25.1 billion of net par outstanding as of September 30, 2025, and also affects projected future installment premiums on the portion of such exposure that pays at least a portion of the premium on an installment basis over the term of the exposure.

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

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

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

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

At the FOMC’s first five meetings of 2025, it held the federal funds rate at a target range of 4.25% to 4.50%, before deciding at its September 2025 meeting to further lower the federal funds rate to a target range of 4.00% to 4.25%, stating that it is strongly committed to maximum employment and returning inflation to its 2% objective.

Most recently, at its October 2025 meeting, the FOMC lowered the federal funds rate to a target range of 3.75% to 4.00%.

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

These assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

From 2022 through November 2025, the Bank of England’s Monetary Policy Committee (MPC) took actions similar to those of the FOMC to combat inflation and spur economic growth.

In 2022, the MPC raised the Bank of England base rate (Bank Rate) from historic lows in response to surging inflation, increasing the rate multiple times into 2023 as inflation remained high above MPC’s 2% target.

By the end of 2023, the MPC signaled a pause in further increases as inflation began to

decline and economic growth slowed.

During 2024, as inflationary pressures eased further and the U.K.

economy showed signs of stagnation or mild recession, the MPC kept the rate unchanged for most of the year, before beginning to decrease the Bank Rate in August 2024.

In 2025, with inflation being closer to the MPC’s target level and economic growth slowed, the MPC further lowered the Bank Rate several times, standing at 4.00% as of November 6, 2025, aiming to support economic growth while maintaining price stability.

The level and direction of change of interest rates and credit spreads impact the Company in numerous ways.

On the one hand, lower interest rates may increase the fair value of fixed-maturity securities currently held in the Company’s investment portfolio, encourage municipal bond issuance and positively impact the finances of some of the obligors whose payments the Company insures.

On the other hand, lower interest rates may decrease the base on which the Company charges up-front premium on most new U.S.

municipal bond transactions and may also decrease amounts the Company can earn on fixed maturity securities newly acquired for its investment portfolio.

Lower interest rates also are often accompanied by narrower credit spreads, which may also decrease the level of premiums the Company can charge for those products.

On the one hand, lower interest rates may increase the fair value of fixed-maturity securities currently held in the Company’s investment portfolio, encourage municipal and infrastructure bond issuance and positively impact the finances of some of the obligors whose payments the Company insures.

On the other hand, lower interest rates may decrease the base on which the Company charges up-front premium on most new municipal and infrastructure bond transactions and may also decrease amounts the Company can earn on fixed-maturity securities newly acquired for its investment portfolio.

Lower interest rates also are often accompanied by narrower credit spreads, which may also decrease the level of premiums the Company can charge for transactions.

The 30-year AAA Municipal Market Data (MMD) rate is a measure of interest rates in the Company’s largest financial guaranty insurance market, U.S.

public finance.

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

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

quarter ended March 2025 and the quarter ended June 2024.

The MMD rate averaged 4.52% for the quarter ended September 2025, higher than the 4.47% average for the quarter ended June 2025 and higher than the 3.60% average for the quarter ended September 2024.

Meanwhile, the difference, or credit spread, between the 30-year BBB-rated general obligation relative to the 30-year AAA MMD averaged 90 basis points (bps) for the quarter ended September 2025, which is the same as the 90 bps average for the quarter ended June 2025 and the quarter ended September 2024.

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

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

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

According to Freddie Mac, the 30-year fixed-rate mortgage rate averaged 6.30% for the week ending September 25, 2025, higher than the 30-year mortgage rate average of 6.08% from one year ago.

The National Association of Realtors reported that there was a 4.1% increase in year-over-year existing-home sales from September 2024 to September 2025, and that the median existing-home sales price increased 2.1% from September 2024 ($406,700) to September 2025 ($415,200).

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

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

Key Business Strategies

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(i) insurance;

(ii) asset management, (iii) alternative investments;

(ii) asset management;

(iii) alternative investments;

and (iv) capital management.

The Company seeks to grow the insurance business through new business production in established sectors and jurisdictions and by entering into new markets and classes of business.

The Company seeks to grow the insurance business through new business production in established sectors and jurisdictions and by entering into new markets and lines and classes of business.

The Company also furthers its insurance strategy by mitigating losses in its insured portfolio.

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public finance.

The timing of new business production in the infrastructure and structured finance sectors is influenced by typically long lead times and therefore may vary from period to period.

The timing of new business production in the infrastructure and structured finance sectors is influenced by typically long lead times and therefore production may vary from period to period.

Municipal Market Data and Bond Insurance Penetration Rates (1)

Based on Sale Date

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

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

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

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

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

(2) Nine-month period ended September 30, 2025 (nine months 2025) and nine-month period ended September 30, 2024 (nine months 2024).

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

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

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

The Company has recently undertaken, and continues to undertake, several initiatives to broaden its insurance lines, classes of business, and improve the efficiency of its secondary market execution.

For example, the Company has expanded its structured finance new business production with guaranties of subscription finance facilities and specialty insurance products executed in non-financial guaranty form.

In addition, the Company is pursuing life and annuity reinsurance business strategies through organic and/or inorganic growth opportunities.

Merger of the U.S.

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

corporate structure and Assured Guaranty Municipal Inc.

corporate structure and Assured Guaranty Municipal Corp.

(AGM) merged with and into Assured Guaranty Inc.

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The Company believes that Assured Guaranty’s simplified organizational and capital structure following the merger will help it grow its business.

The combined company, as compared with either AG or AGM before the merger, has a larger, more highly diversified insured portfolio, a larger investment portfolio and a larger capital base, creating a more efficient capital structure and greater claims-paying resources.

The combined company, as compared with either AG or AGM before the merger, has a larger,

more highly diversified insured portfolio, a larger investment portfolio and a larger capital base, creating a more efficient capital structure and greater claims-paying resources.

In addition, the combined company, as compared with either AG or AGM before the merger, has larger regulatory single risk limits.

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

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

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

The fair value of Loss Mitigation Securities as of September 30, 2025 (excluding the value of the Company’s insurance) was $140 million.

In July 2025, the Company’s largest BIG exposure in the investment portfolio, which was obtained as 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.

Also, in October 2025, a commercially leased building that was part of a loss mitigation strategy was sold, resolving another insured troubled transaction.

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

RMBS transactions it insures to encourage the servicers to provide alternatives to distressed borrowers that will encourage them to continue making payments on their loans to help improve the performance of the related RMBS.

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

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

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The Company’s ownership interest in Sound Point furthers its strategy of participating in a fee-based earnings stream independent of the risk-based premiums generated by its financial guaranty business.

The Sound Point business was strengthened by the addition of assets under management (AUM) transitioned from the Company (excluding AUM relating to AHP).

The Sound Point business was strengthened by the addition of assets under management (AUM) transitioned from the

Company (excluding AUM relating to AHP).

See Item 1, Financial Statements, Note 1, Business and Basis of Presentation, for a description of the Company’s participation in the asset management business through its ownership interest in Sound Point.

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

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

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

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

From 2013 through November 5, 2025, the Company has repurchased 155 million common shares for $5.8 billion, representing 80% of the total shares outstanding at the beginning of the repurchase program in 2013.

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.

Shares may be repurchased from time to time in the open market or in privately negotiated transactions.

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2025 (April 1 - June 30) 131 1.54 85.03

2025 (July 1 - August 6) 45 0.538 84.16

2025 (July 1 - September 30) 118 1.42 83.06

2025 (October 1 - November 5) 51 0.62 82.14

Cumulative repurchases since the beginning of 2013 $ 5,782 155.19 37.26

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(1) Excludes commissions and excise taxes.

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

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

$65.18 per share in shareholders’ equity attributable to AGL, $66.70 per share in adjusted operating shareholders’ equity and $111.42 per share in adjusted book value (ABV).

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

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

Most recently, in third quarter 2025, after receiving approval from the Maryland Insurance Administration (MIA), AG redeemed $250 million of its common stock from AGMH in exchange for $213 million in cash and $37 million in alternative investments.

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

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

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

(AGUS) and Assured Guaranty Municipal Holdings Inc.

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Financial Results

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Gross par written 9,141 7,437 24,539 20,603

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

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

Amount Per Share Amount Per Share

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Condensed Consolidated Results of Operations

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

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

2025 2024 2025 2024

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Effective tax rate 15.4 % 19.9 % 18.5 % 19.2 %

Second Quarter 2025 Compared with Second Quarter 2024

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

Six Months 2025 Compared with Six Months 2024

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

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

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

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

Third Quarter 2025 Compared with Third Quarter 2024

Net income attributable to AGL for third quarter 2025 was lower compared with the three-month period ended September 30, 2024 (third quarter 2024) primarily due to foreign exchange losses on remeasurement of $23 million in third quarter 2025 compared with foreign exchange gains on remeasurement of $55 million in third quarter 2024, and lower loss and LAE benefit in third quarter 2025.

Nine Months 2025 Compared with Nine Months 2024

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

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

• foreign exchange gains on remeasurement of $93 million in nine months 2025, compared with of $43 million in nine months 2024,

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

• higher net investment income in nine months 2025 primarily due to investment income on collateralized loan obligations (CLOs) equity tranches in the available-for-sale portfolio.

These increases were offset in part by:

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

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

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

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

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

subsidiaries generally taxed at the U.S.

• a loss and LAE in nine months 2025 of $38 million, compared with a benefit of $54 million in nine months 2024,

• lower fair value gains on trading securities, which primarily consist of Puerto Rico contingent value instruments (CVIs) in nine months 2025,

• net realized investment losses in nine months 2025 primarily due to changes in the allowance for credit losses for alternative investments and Loss Mitigation Securities and realized losses on sales of securities, and

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

The Company’s effective tax rate reflects the proportion of income recognized by each of the Company’s operating subsidiaries in the jurisdiction in which they are taxed, with U.S.

subsidiaries and foreign subsidiaries that have made an election to be a U.S.

taxpayer generally taxed at the U.S.

marginal corporate income tax rate of 21%, U.K.

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Pre-tax Income (Loss) by Tax Jurisdiction

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Bermuda 21 37 95 84

10 (7) 1 (18)

France (3) (1) (6) (8)

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Adjusted Operating Income

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

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

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

Adjusted operating income in third quarter 2025 was $124 million, compared with $130 million in third quarter 2024.

The decrease was primarily due to a lower benefit in loss expense for U.S.

RMBS sector in third quarter 2025, partially offset by higher income from investment portfolio.

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

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

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

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

Adjusted operating income in nine months 2025 was $336 million, compared with $323 million in nine months 2024.

The increase was primarily due to the gain related to the resolution of the LBIE litigation in 2025, and higher equity in earnings and net investment income in nine months 2025, offset in part by a higher loss expense in public finance sectors, lower fair value gains on the trading portfolio and lower earned premiums on refundings of financial guaranty insurance contracts in nine months 2025.

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

Book Value and ABV

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

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

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

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

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

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

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

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

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

The Company rates all such exposure investment grade.

In fact, the Company’s direct insurance exposure to Eastern Europe generally is limited to $210 million in net par outstanding as of September 30, 2025, comprising of the sovereign debt of Poland.

The Company rates this exposure investment grade.

Middle East Conflict

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The Company’s surveillance function has reviewed the Company’s insurance portfolio for exposures located within Los Angeles County and currently has not identified any material impact on the ability of such exposures to pay their obligations.

Federal Government Shutdown

On October 1, 2025, the U.S.

federal government began a shutdown as a result of congressional failure to pass appropriations legislation for the 2026 fiscal year.

The Company’s surveillance function has reviewed the Company’s insurance portfolio for exposures dependent on financial assistance from the U.S.

federal government in order to meet their obligations.

There has been no material impact on the payment of their obligations as of November 6, 2025;

however, in the event the U.S.

federal government shutdown continues for an extended period of time, certain obligors insured by the Company may experience financial strain which could result in liquidity claims being made on the Company.

Results of Operations

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Insurance Segment Results

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Net Earned Premiums and Credit Derivative Revenues

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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(1) Includes accretion of discount.

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

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

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

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

Net earned premiums and credit derivative revenues decreased in third quarter 2025 compared with third quarter 2024 primarily due to lower refundings and terminations, partially offset by an increase in scheduled premiums due to earnings on large transactions and supplemental premiums written in 2024.

Net earned premiums and credit derivative revenues increased in nine months 2025 compared with nine months 2024 primarily due to credit derivative revenues related to the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives) and earnings on large transactions and supplemental premiums written in 2024, partially offset by lower financial guaranty refundings and terminations.

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

New Business Production

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New Business Production

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Public finance—non-U.S.

(13) 7 (6) 34

Structured finance—U.S.

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See “— Non-GAAP Financial Measures” below.

Second Quarter 2025

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

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

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

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

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

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

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

regulated utility transactions that were closed in second quarter 2024.

Second quarter 2025 non-U.S.

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

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

Six Months 2025

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

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

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

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

Third Quarter 2025

The increase in U.S.

public finance GWP and PVP in third quarter 2025 compared with third quarter 2024 was primarily attributable to several large transportation, health care and tax-backed transactions as well as higher GWP and PVP generated in the secondary market.

The Company’s primary par written represented 61% of the total municipal market insured par sold in third quarter 2025, compared with 60% in third quarter 2024, and the Company’s penetration of all municipal issuance was 4.9% in third quarter 2025 compared with 4.2% in third quarter 2024.

public finance secondary market, GWP and PVP both increased to $10 million in third quarter 2025 compared with $2 million in third quarter 2024.

The Company’s par written in the secondary market represented 7.4% of U.S.

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

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

regulated utilities in six months 2024.

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

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

public sector entity.

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

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

public finance par written in third quarter 2025, compared with 3.9% in third quarter 2024.

GWP for non-U.S.

public finance in third quarter 2025 was negative due to the early repayment of several U.K.

sub-sovereign credits.

In third quarter 2025, non-U.S.

public finance GWP and PVP consisted of guaranties of regulated utilities.

Global structured finance GWP and PVP in third quarter 2025 primarily consisted of the upsize of a transaction providing protection on a core lending portfolio for an Australian bank, as well as subscription finance transactions.

Business activity in the non-U.S.

public finance and structured finance markets often has long lead times and therefore may vary from period to period.

Nine Months 2025

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

Nine months 2025 included a large transportation transaction.

The Company’s primary par written represented 63% of the total U.S.

municipal market insured par sold in nine months 2025, compared with 57% in nine months 2024, and the Company’s penetration of all municipal issuance was 5.0% in nine months 2025 compared with 4.4% in nine months 2024.

public finance secondary market, GWP and PVP both increased to $32 million in nine months 2025 compared with $5 million in nine months 2024.

The Company’s par written in the secondary market represented 7.0% of U.S.

public finance par written in nine months 2025, compared with 2.4% in nine months 2024.

public finance GWP in nine months 2025 was negative due to the early repayment of several U.K.

sub-sovereign credits.

public finance PVP in nine months 2025 was lower than PVP in nine months 2024, primarily due to a lower volume of large transactions in nine months 2025.

public finance in nine months 2025 included several primary infrastructure finance and regulated utility transactions in the U.K.

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

sub-sovereign credits.

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

Global structured finance GWP and PVP in nine months 2025 were primarily attributable to subscription finance business and the upsize of a transaction providing protection on a core lending portfolio for an Australian bank.

Financial Strength Ratings

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

There can be no assurance that any of the

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

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

Income from Investments

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

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

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

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

The fair value of remaining CVIs as of September 30, 2025 and December 31, 2024 was $125 million and $123 million, respectively.

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

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Income from Investments

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Equity in earnings (losses) of investees

Collateralized loan obligations (CLOs) $ (5) $ 6 $ 3 $ 26

CLOs $ 3 $ 12 $ 6 $ 38

Private healthcare investing 5 6 18 8

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Equity in earnings (losses) of investees $ 16 $ 28 $ 48 $ 83

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

Net investment income for third quarter 2025 and nine months 2025 increased compared to third quarter 2024 and nine months 2024, primarily due to a shift in the portfolio from municipal securities to higher yielding corporate securities and 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.

The Company had previously held the CLO equity tranches in a Sound Point managed fund with changes in net asset value (NAV) reported in “equity in earnings (losses) of investees.” Short-term investment income declined as a result of lower short-term interest rates and lower average short-term investment balances.

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

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

portfolio, as described above.

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

The Company’s overall pre-tax book yield of available-for-sale fixed-maturity securities and short-term investments was 4.80% as of September 30, 2025 and 4.10% as of September 30, 2024.

Equity in earnings (losses) of investees for third quarter 2025 and nine months 2025 decreased compared to third quarter 2024 and nine months 2024, primarily due to the reclassification of certain CLO equity tranches to the available-for-sale portfolio, as described above.

In addition, equity in earnings (losses) of investees in third quarter 2024 and nine months 2024 included $6 million and $18 million, respectively, related to certain alternative investments which AG transferred to AGMH as

part of a stock redemption that occurred on August 5, 2024.

See “Corporate Division” below.

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

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

Other Income (Loss)

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

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

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

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

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

The weighted average discount rates used to discount expected losses (recoveries) were 4.02% and 4.38% as of September 30, 2025 and December 31, 2024, respectively.

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

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

As of 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)

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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)

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

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)

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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)

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Total $ 106 $ (17) $ 15 $ 104

Six Months 2024

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.”

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

Second Quarter 2025 Net Economic Loss Development

The effects of changes in the risk-free rates included in economic loss development (benefit) were losses of $3 million in third quarter 2024, $6 million in nine months 2025 and $1 million in nine months 2024.

Third Quarter 2025 Net Economic Loss Development

Public Finance:

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

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

The economic benefit of $8 million for public finance exposures was primarily attributable to lower estimated costs related to certain healthcare exposures.

The economic benefit of $31 million for U.S.

RMBS primarily consisted of a $26 million benefit due to higher assumed recoveries for charged-off second lien loans.

Third Quarter 2024 Net Economic Loss Development

Public Finance:

The economic benefit of $23 million for U.S.

public finance exposures was primarily attributable to certain healthcare exposures.

The economic loss development of $46 million for non-U.S.

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

regulated utility and U.K.

student accommodation exposures.

The economic development for U.S.

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

Second Quarter 2024 Net Economic Loss Development

Public Finance:

The economic loss development on U.S.

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

The economic benefit attributable to U.S.

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

Six Months 2025 Net Economic Loss Development

regulated utilities.

The economic benefit for U.S.

RMBS was $56 million and was primarily attributable to a $29 million benefit from higher assumed recoveries for charged-off second lien loans and a $15 million benefit from higher assumed recoveries for deferred principal balances of modified first lien loans.

Nine Months 2025 Net Economic Loss Development

Public Finance:

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The economic benefit for U.S.

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

RMBS was $40 million and was primarily attributable to a $31 million benefit related to higher recoveries for charged-off second lien loans.

Other Structured Finance :

The benefit attributable to other structured finance of $64 million was primarily attributable to recoveries related to the resolution of the LBIE litigation (see Item 1, Financial Statements, Note 6, Contracts Accounted for as Credit Derivatives).

Six Months 2024 Net Economic Loss Development

Public Finance:

The economic loss development on U.S.

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

The economic benefit attributable to U.S.

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

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

Nine Months 2024 Net Economic Loss Development

Public Finance:

The economic benefit of $14 million for U.S.

public finance exposures was primarily attributable to certain healthcare exposures, partially offset by higher expected loss adjustment expenses related to certain Puerto Rico exposures.

The economic loss development of $63 million for non-U.S.

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

regulated utilities and healthcare exposures.

The economic benefit for U.S.

RMBS was $69 million and was mainly attributable to a $41 million benefit from higher assumed recoveries for charged-off first and second lien loans and a $15 million benefit from higher assumed recoveries for deferred principal first lien balances.

Insurance Segment Loss Expense

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Loss Expense (Benefit)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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____________________

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

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

Asset Management Segment Results

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Segment adjusted operating income (loss) $ 3 $ 4 $ 19 $ 5

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

Results in the table above primarily represent (i) equity in earnings (losses) of Sound Point of $4 million in third quarter 2024, $12 million in nine months 2025 and $5 million in nine months 2024 (Sound Point results are reported on a one quarter lag), net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point, (ii) an impairment loss of $3 million in nine months 2024 for a smaller financial services advisory firm, and (iii) other asset management related income.

Corporate Division Results

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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Holding Companies, Intercompany Loans Payable” for additional information.

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

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

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

The carrying value of these transferred investments as of September 30, 2025 was $130 million.

In third quarter 2025, after receiving approval from the MIA, AG redeemed $250 million of its common stock from AGMH in exchange for $213 million in cash and $37 million in alternative investments, which will be recognized in equity in earnings of investees beginning in the fourth quarter of 2025.

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

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

Other (Effect of Consolidating FG VIEs and CIVs)

The effect of consolidating FG VIEs and CIVs and intersegment eliminations are presented in “other.” See Item 1, Financial Statements, Note 2, Segment Information.

As described in Item 1, Financial Statements, Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles, the types of entities the Company consolidates when it is deemed to be the primary beneficiary primarily include:

As described in Item 1, Financial Statements, Note 8, Variable Interest Entities, the types of entities the Company consolidates when it is deemed to be the primary beneficiary primarily include:

and (ii) CIVs.

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Increase (Decrease)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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FG VIEs $ (1) $ (8) $ (1) $ (10)

CIVs (1) — 1 1

Effect on net income (loss) attributable to AGL $ — $ (7) $ 1 $ (8)

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to Adjusted Operating Income (Loss)

Second Quarter 2025 Second Quarter 2024

Third Quarter 2025 Third Quarter 2024

Total Per Diluted Share Total Per Diluted Share

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Gain (loss) related to FG VIE and CIV consolidation (net of tax provision (benefit) of $0 and $(2)) included in adjusted operating income $ — $ — $ (7) $ (0.12)

Six Months 2025 Six Months 2024

Nine Months 2025 Nine Months 2024

Total Per Diluted Share Total Per Diluted Share

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Net Realized Investment Gains (Losses)

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

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

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.

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

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

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

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

During nine months 2024, non-credit impairment-related unrealized fair value gains of $11 million were generated primarily due to the termination of certain structured finance policies.

Fair Value Gains (Losses) on CCS

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

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

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

Foreign Exchange Gain (Loss) on Remeasurement

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

Foreign exchange losses of $22 million in third quarter 2025 and gains of $54 million in third quarter 2024, $82 million in nine months 2025 and $42 million in nine months 2024, were primarily related to the remeasurement of long-dated premiums receivable, for which the Company records the present value of future installment premiums.

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

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

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.

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

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Dollar Per Foreign Currency

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

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

Pound sterling $1.345 $1.252 $1.338 $1.273

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

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

(iii) ABV per share, further

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

(iv) core operating return on equity, which is calculated as core operating income divided by the average of core operating shareholders’ equity at the beginning and end of the period;

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to Adjusted Operating Shareholders’ Equity and ABV

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

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

Total Per Share Total Per Share

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Reconciliation of GWP to PVP

Second Quarter 2025 Second Quarter 2024

Third Quarter 2025 Third Quarter 2024

Public Finance Structured Finance Public Finance Structured Finance

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PVP $ 78 $ 5 $ — $ 8 $ 91 $ 34 $ 10 $ 5 $ 14 $ 63

Six Months 2025 Six Months 2024

Nine Months 2025 Nine Months 2024

Public Finance Structured Finance Public Finance Structured Finance

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Net Par Outstanding by Sector

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

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

Sector (dollars in millions)

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

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

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

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.

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

5 unchanged sentences

Net Par Outstanding and Net Debt Service Outstanding

As of June 30, 2025

As of September 30, 2025

Scheduled Net Par Amortization Scheduled Net Debt Service Amortization

(in millions)

2025 (October 1 - December 31) $ — $ 2

2026 (January 1 - March 31) — 9

2026 (April 1 - June 30) — 2

2026 (July 1 - September 30) 106 114

30 unchanged sentences

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

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

company net cash flows over the next four quarters.

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

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

10 unchanged sentences

Long-Term Debt and Intercompany Loans

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

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

(in millions)

21 unchanged sentences

For example, on October 25, 2013, AGL, as borrower, and AGUS, as lender, entered into a revolving credit facility pursuant to which AGL may, from time to time, borrow for general corporate purposes.

Under the credit facility, AGUS committed to lend a principal amount not exceeding $225 million in the aggregate.

Under the credit facility, AGUS committed to lend a principal amount not

exceeding $225 million in the aggregate.

The commitment under the revolving credit facility terminates on October 25, 2033 (the loan commitment termination date).

1 unchanged sentence

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

AGL must repay unpaid principal amounts

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

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

AGL has not drawn upon the credit facility.

8 unchanged sentences

Holding Companies, excluding their investments in subsidiaries.

As of June 30, 2025

As of September 30, 2025

Holding Companies

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Receivables from affiliates (2) 54 —

Dividends receivable from U.S.

Holding Companies 110 —

Dividends receivable from other subsidiaries 50 —

Other assets 4 50

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Payable to affiliates (2) 11 17

Dividends payable to AGL — 110

Other liabilities 16 78

____________________

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

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

Holding Companies’ fixed-maturity securities were 10.2 years and 3.0 years, respectively.

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

Six Months 2025

Nine Months 2025

Holding Companies

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Selected Cash Flow Items

Six Months 2025

Nine Months 2025

Holding Companies

7 unchanged sentences

Investments in subsidiaries (21) (3)

Redemption of stock by insurance subsidiaries — 213

Dividends paid to AGL — (440)

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

As of June 30, 2025, the

As of September 30, 2025, the

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

7 unchanged sentences

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

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

The Company had $464 million in insured net par outstanding of PREPA obligations as of September 30, 2025.

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

13 unchanged sentences

The maximum amount available during 2025 for AG to distribute as ordinary dividends is approximately $287 million.

Such payments would be payable in the second half of 2025 because AG’s ordinary dividends were concentrated in the second half of 2024 following the August 1, 2024, merger of AGM with and into AG.

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

Such payments would have been payable in the second half of 2025 because AG’s ordinary dividends were concentrated in the second half of 2024 following the August 1, 2024, merger of AGM with and into AG.

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

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

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

dividend by November 21, 2025 (and previously obtained the MIA’s non-objection to pay, and paid, equivalent dividends on March 6, 2025, May 19, 2025 and August 18, 2025).

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

2 unchanged sentences

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

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

provided that such payment cannot exceed AG Re’s unencumbered assets ($225 million as of September 30, 2025) or its statutory surplus ($314 million as of September 30, 2025).

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

2 unchanged sentences

to Holding Companies

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

(in millions)

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

Dividends declared by AG to U.S.

Dividends by AG Re to AGL $ 50 $ — $ 50 $ 47

Dividends by AG to U.S.

Holding Companies (1) 71 154 215 262

___________________

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

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

2 unchanged sentences

Stock Redemption by Assured Guaranty Inc.

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

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

In third quarter 2025, after receiving approval from the MIA, AG redeemed $250 million of its common stock from AGMH in exchange for $213 million in cash and $37 million in alternative investments.

Committed Capital Securities

3 unchanged sentences

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

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

As of September 30, 2025, the Company had $6,278 million of available-for-sale fixed-maturity securities, of which $5,529 million were managed by three investment managers who are required to, in accordance with the Company’s investment guidelines, maintain their portion of the Company’s investment portfolio with an overall credit quality rated at a minimum of A+/A1/A+ by S&P/Moody’s/Fitch Ratings Inc.

In addition, $242 million of available-for-sale fixed-maturity securities were CLO equity tranches managed by Sound Point.

6 unchanged sentences

Carrying Value

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

(in millions)

7 unchanged sentences

(2) Excludes investments in Sound Point funds that are consolidated.

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

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

See Item 1, Financial Statements, Note 8, Variable Interest Entities.

The Company’s available-for-sale fixed-maturity securities had a duration of 4.9 years and 4.3 years as of September 30, 2025 and December 31, 2024, respectively.

Available-for-Sale Fixed-Maturity Securities By Rating

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

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

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

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

regulated utility, which are not rated.

See Item 1, Financial Statements, Note 7, Investments, for additional information.

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

Rating June 30, 2025 December 31, 2024

Rating September 30, 2025 December 31, 2024

AAA 13.2 % 12.5 %

6 unchanged sentences

Sound Point and Alternative Investments

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

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

Investments CIVs Consolidated Investments CIVs Consolidated

9 unchanged sentences

Other 129 — 129 77 — 77

Total $ 1,335 $ (40) $ 1,295 $ 1,302 $ (33) $ 1,269

Subtotal $ 1,359 $ (45) $ 1,314 $ 1,302 $ (33) $ 1,269

Assets of CIVs, net of nonredeemable noncontrolling interests $ — $ 57 $ 57 $ — $ 43 $ 43

____________________

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

(1) The alternative investments, which do not include the Company’s ownership interest in Sound Point, had an inception-to-date annualized internal rate of return of 13%.

Effect of Ownership Interest in Sound Point and Alternative Investments

on Condensed Consolidated Statements of Operations

Second Quarter 2025 Second Quarter 2024

Third Quarter 2025 Third Quarter 2024

Investments CIVs Consolidated Investments CIVs Consolidated

4 unchanged sentences

Equity in earnings (losses) of investees:

Equity in earnings of Sound Point (1) — (1) (3) — (3)

Equity in earnings (losses) of alternative investments:

Ownership interest in Sound Point — — — 4 — 4

Alternative investments:

CLOs 3 — 3 12 (8) 4

4 unchanged sentences

Equity in earnings (losses) of investees 25 (5) 20 32 (14) 18

Total $ 8 $ (1) $ 7 $ 13 $ (7) $ 6

Subtotal $ 26 $ (5) $ 21 $ 34 $ (14) $ 20

Fair value gains (losses) on CIVs, net of noncontrolling interests $ — $ 8 $ 8 $ — $ 16 $ 16

____________________

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

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

Effect of Ownership Interest in Sound Point and Alternative Investments

on Condensed Consolidated Statements of Operations

Six Months 2025 Six Months 2024

Nine Months 2025 Nine Months 2024

Investments CIVs Consolidated Investments CIVs Consolidated

4 unchanged sentences

Equity in earnings (losses) of investees:

Equity in earnings of Sound Point 12 — 12 1 — 1

Equity in earnings (losses) of alternative investments:

Ownership interest in Sound Point 12 — 12 5 — 5

Alternative investments:

CLOs 6 — 6 38 (26) 12

4 unchanged sentences

Equity in earnings (losses) of investees 88 (12) 76 85 (38) 47

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

Subtotal $ 106 $ (12) $ 94 $ 89 $ (38) $ 51

Fair value gains (losses) on CIVs, net of noncontrolling interests $ — $ 19 $ 19 $ — $ 42 $ 42

____________________

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

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

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

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

Unfunded commitments for alternative investments as of September 30, 2025 were $563 million.

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

Restricted Assets

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

Lease Obligations

6 unchanged sentences

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

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

and would only be required to make payments on those insured debt obligations in the event that the issuer of such debt obligations defaults on any principal or interest due and only for the amount of the shortfall.

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

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

4 unchanged sentences

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.

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

See Item 1, Financial Statements, Note 8, Variable Interest Entities, for additional information.

Condensed Consolidated Cash Flow Summary

1 unchanged sentence

Summarized Condensed Consolidated Cash Flows

Second Quarter Six Months

Third Quarter Nine Months

2025 2024 2025 2024

18 unchanged sentences

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

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

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

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

Cash flows from operating activities were inflows of $220 million in nine months 2025 and inflows of $1 million in nine months 2024.

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

In addition, nine months 2025 cash flows from operations were higher than in nine months 2024 due to a $127 million decrease in net claim payments.

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

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

The decrease in investing cash inflows compared with the prior year is primarily due to the need for liquidity to fund higher claim payments and share repurchases in nine months 2024.

In addition, increased operating cash flows in nine months 2025, due in part to the cash inflow related to the resolution of the LBIE litigation, reduced the need to liquidate investments.

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

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

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

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

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

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

From October 1, 2025 through November 5, 2025, the Company repurchased an additional 621 thousand of common shares.

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

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

2 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis