What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-08 · 646 added, 385 removed, 1785 unchanged (37% of the section changed)

3 unchanged sentences

(dollars in millions except share data)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $ 72 and $ 54 (amortized cost of $ 7,147 and $ 6,572 )

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(dollars in millions except share data)

Three Months Ended March 31,

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

2026 2025 2026 2025

Net earned premiums $ 102 $ 89 $ 184 $ 180

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Net income (loss) attributable to Assured Guaranty Ltd.

$ 39 $ 103 $ 127 $ 279

Earnings per share:

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(in millions)

Three Months Ended March 31,

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

2026 2025 2026 2025

Net income (loss) $ 40 $ 106 $ 125 $ 291

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Investments with no credit impairment, net of tax provision (benefit) of $ 2 , $ 11 , $( 14 ) and $ 17

8 85 ( 76 ) 137

Investments with credit impairment, net of tax provision (benefit) of $ 7 , $( 1 ), $( 4 ) and $ 4

28 ( 1 ) ( 16 ) 20

Change in net unrealized gains (losses) on investments 36 84 ( 92 ) 157

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(dollars in millions, except share data)

For the Three Months Ended March 31, 2026

For the Three Months Ended June 30, 2026

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

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Shareholders’ Equity

As of March 31, 2026 44,591,054 $ — $ 5,821 $ ( 280 ) $ 1 $ 5,542 $ 22 $ 5,564

Net income — — 39 — — 39 1 40

Dividends ($ 0.38 per share)

— — ( 17 ) — — ( 17 ) — ( 17 )

Common shares repurchases ( 553,564 ) — ( 45 ) — — ( 45 ) — ( 45 )

Share-based compensation 17,737 — 11 — — 11 — 11

Other comprehensive income — — — 29 — 29 — 29

As of June 30, 2026 44,055,227 $ — $ 5,809 $ ( 251 ) $ 1 $ 5,559 $ 23 $ 5,582

For the Three Months Ended June 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

Common Shares Outstanding Common

Par Value Retained Earnings Accumulated

Comprehensive Income (Loss) Deferred

Equity Compensation Total Non-redeemable Noncontrolling Interest

Shareholders’ Equity

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

Net income — — 103 — — 103 3 106

Dividends ($ 0.34 per share)

— — ( 19 ) — — ( 19 ) — ( 19 )

Consolidation — — — — — — 26 26

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

Share-based compensation 93,506 — 4 — — 4 — 4

Other comprehensive income — — — 87 — 87 — 87

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

Assured Guaranty Ltd.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

(dollars in millions, except share data)

For the Six Months Ended June 30, 2026

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

Common Shares Outstanding Common

Par Value Retained Earnings Accumulated

Comprehensive Income (Loss) Deferred

Equity Compensation Total Non-redeemable Noncontrolling Interest

Shareholders’ Equity

As of December 31, 2025 45,184,791 $ — $ 5,830 $ ( 168 ) $ 1 $ 5,663 $ 126 $ 5,789

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Other comprehensive loss — — — ( 83 ) — ( 83 ) — ( 83 )

As of March 31, 2026 44,591,054 $ — $ 5,821 $ ( 280 ) $ 1 $ 5,542 $ 22 $ 5,564

For the Three Months Ended March 31, 2025

As of June 30, 2026 44,055,227 $ — $ 5,809 $ ( 251 ) $ 1 $ 5,559 $ 23 $ 5,582

For the Six Months Ended June 30, 2025

Total Shareholders’ Equity Attributable to Assured Guaranty Ltd.

8 unchanged sentences

— — ( 37 ) — — ( 37 ) — ( 37 )

Consolidation — — — — — — 26 26

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

1 unchanged sentence

Other comprehensive income — — — 158 — 158 — 158

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

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

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

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(in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Net cash flows provided by (used in) operating activities $ 230 $ 165

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Purchases ( 826 ) ( 754 )

Sales 585 427

Maturities and paydowns 314 424

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acquisition, net of cash acquired (see Note 2)

Issuance of a loan ( 40 ) —

Other ( 1 ) ( 7 )

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(in millions)

Three Months Ended March 31,

Six Months Ended June 30,

Supplemental disclosure of non-cash activities:

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

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

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

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Cash and cash equivalents of financial guaranty variable interest entities 20 23

Cash and cash equivalents of consolidated investment vehicles — 1

Restricted cash (included in other assets) 1 1

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public finance (including infrastructure) and structured finance markets.

Assured Guaranty also participates in the annuity reinsurance and asset management businesses.

Assured Guaranty also participates in annuity reinsurance and asset management businesses.

Financial Guaranty Insurance

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

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

If an obligor defaults on a scheduled payment, including a scheduled principal or interest payment (collectively, debt service), the Company is required under its unconditional and irrevocable financial guaranty to pay the shortfall of the scheduled amount to the holder of the obligation, but generally cannot be required by the holder to pay on an accelerated basis.

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

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

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

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

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

The Company’s principal FG insurance subsidiaries are:

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

The Company’s principal financial guaranty insurance subsidiaries are:

• Assured Guaranty Inc.

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• Assured Guaranty UK Limited (AGUK), domiciled in the U.K.;

• Assured Guaranty (Europe) SA (AGE), domiciled in France;

• Assured Guaranty (Europe) SA, domiciled in France;

• Assured Guaranty Re Ltd.

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Assured Life Re specializes in annuity reinsurance.

As of the date of acquisition, Assured Life Re had reinsured two blocks of business:

As of the Acquisition Date, Assured Life Re had reinsured two blocks of business:

bulk purchase annuities (pension risk transfers, PRT) denominated in pound sterling and U.S.

multi-year guaranteed annuities (MYGA) denominated in U.S.

PRT annuity obligations are generally long‑term, benefit‑driven cash flows that are long-dated, inflation-linked liabilities.

PRT annuity obligations are generally benefit‑driven cash flows that are long-dated, inflation-linked liabilities.

MYGA typically provide for guaranteed crediting rates over a specified term and include contractual features such as surrender charges, market value adjustments and limited withdrawal provisions.

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Holding Companies), have public debt outstanding.

Basis of Presentation

The unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).

In management’s opinion, all material adjustments

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

necessary for a fair statement of the financial condition, results of operations and cash flows of the Company, including its consolidated variable interest entities (VIEs), are reflected in the periods presented and are of a normal, recurring nature.

Basis of Presentation

The unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP).

In management’s opinion, all material adjustments necessary for a fair statement of the financial condition, results of operations and cash flows of the Company, including its consolidated variable interest entities (VIEs), are reflected in the periods presented and are of a normal, recurring nature.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

These unaudited interim condensed consolidated financial statements are as of March 31, 2026 and cover the three-month period ended March 31, 2026 (first quarter 2026) and the three-month period ended March 31, 2025 (first quarter 2025).

These unaudited interim condensed consolidated financial statements are as of June 30, 2026 and cover the three-month period ended June 30, 2026 (second quarter 2026), the three-month period ended June 30, 2025 (second quarter 2025) the six-month period ended June 30, 2026 (six months 2026) and the six-month period ended June 30, 2025 (six months 2025).

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

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Narrow-Scope Improvements .

This ASU is intended to improve the navigability of guidance in ASC 270, Interim Reporting , and clarify when it applies.

This ASU is intended to improve the navigability of guidance in Accounting Standards Codification (ASC) 270, Interim Reporting , and clarify when it applies.

The ASU also provides additional guidance on what disclosures should be provided in interim reporting periods.

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

Assured Life Re Acquisition

On the Acquisition Date, the Company purchased all of the outstanding share capital in Warwick, which is the 100 % indirect owner of Assured Life Re, for a purchase price of $ 158 million, subject to certain post-closing adjustments (Assured Life Re Acquisition).

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Assured Life Re Acquisition

The Assured Life Re Acquisition was accounted for under the acquisition method of accounting, which requires that the assets and liabilities acquired be recorded at fair value.

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Bargain purchase gain $ 6

Revenue and net income related to Assured Life Re from the Acquisition Date through March 31, 2026 included in the condensed consolidated statement of operations were approximately $ 14 million and $ 2 million, respectively.

Revenue and net income (loss) related to Assured Life Re from the Acquisition Date through June 30, 2026 included in the condensed consolidated statements of operations were approximately $ 11 million and $( 1 ) million for second quarter 2026 and $ 25 million and $ 1 million for six months 2026, respectively.

The Company incurred $ 7 million of transaction costs primarily consisting of legal and advisory fees related to the Assured Life Re Acquisition.

Of this amount, $ 4 million was recognized as expenses in first quarter 2026 and reported in “other operating expenses” in the condensed consolidated statements of operations.

Had the Assured Life Re Acquisition occurred on January 1, 2025, the unaudited pro forma revenue and net income would be $ 257 million and $ 81 million, respectively, for the three months ended March 31, 2026, and $ 349 million and $ 178 million, respectively, for the three months ended March 31, 2025.

The pro forma accounts include the estimated historical results of the Company and Assured Life Re and pro forma adjustments related to the differences in the accounting standards

Of this amount, $ 4 million was

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

and policies between the Company and Assured Life Re, as well as the bargain purchase gain and acquisition-related expenses, together with the consequential tax effects.

recognized as expenses in six months 2026 and reported in “other operating expenses” in the condensed consolidated statements of operations.

Had the Assured Life Re Acquisition occurred on January 1, 2025, the unaudited pro forma revenue would be $ 194 million and $ 451 million for second quarter 2026 and six months 2026, respectively, and $ 268 million and $ 617 million for second quarter 2025 and six months 2025, respectively.

The unaudited pro forma net income would be $ 40 million and $ 121 million for second quarter 2026 and six months 2026, respectively, and $ 90 million and $ 268 million for second quarter 2025 and six months 2025, respectively.

The pro forma accounts include the estimated historical results of the Company and Assured Life Re and pro forma adjustments related to the differences in the accounting standards and policies between the Company and Assured Life Re, as well as the bargain purchase gain and acquisition-related expenses, together with the consequential tax effects.

The unaudited pro forma combined financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined as of January 1, 2025, nor is it indicative of the results of operations in future periods.

Statutory Information and Restrictions

Assured Life Re prepares its statutory financial statements in conformity with the accounting principles set forth in Bermuda’s Insurance Act 1978, amendments thereto and related regulations.

Assured Life Re prepares its statutory financial statements in conformity with the accounting principles set forth in Bermuda’s Insurance Act 1978, amendments thereto and related regulations (collectively, the Insurance Act).

As of December 31, 2016, the Bermuda Monetary Authority (the Authority) requires insurers to prepare statutory financial statements in accordance with the particular accounting principles adopted by the insurer (which, in the case of Assured Life Re, are GAAP), subject to certain adjustments.

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Any such dividends would also be subject to the limitations that they may not exceed Assured Life Re’s statutory surplus or its unencumbered assets.

As of March 31, 2026, Assured Life Re’s statutory surplus was zero and, accordingly, it had no dividend capacity at that date;

The Insurance Act also prohibits Assured Life Re from declaring or paying any dividends to any person other than a policyholder unless its approved actuary certifies that the proposed amount of the dividend would not exceed the excess of funds available to satisfy its long-term business obligations.

As of June 30, 2026, Assured Life Re did not have a statutory surplus to pay dividends;

its unencumbered assets were $ 27 million.

2 unchanged sentences

Segment Information

Prior to first quarter 2026, the Company disclosed two reportable segments:

Prior to the first quarter of 2026, the Company disclosed two reportable segments:

Insurance and Asset Management.

As a result of the expansion of the Company’s business into annuity reinsurance, the chief operating decision maker (CODM) began assessing the results of operations of the Company’s annuity reinsurance business separately and therefore a new operating segment, Annuity Reinsurance, was added in first quarter 2026.

In addition, the Insurance segment was renamed the Financial Guaranty segment starting in first quarter 2026.

In addition, the Insurance segment was renamed the Financial Guaranty segment starting in the first quarter of 2026, which includes financial guaranty insurance and reinsurance and also specialty insurance and reinsurance on transactions with risk profiles similar to those of the Company’s structured finance exposures written in financial guaranty form.

The Company separately reports the results of its Corporate division and the effects of consolidating financial guaranty VIEs (FG VIEs) and consolidated investment vehicles (CIVs).

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• Elimination of realized gains (losses) on investments, except for gains and losses on securities classified as trading.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

• Elimination of non-credit impairment-related fair value gains (losses) on credit derivatives, which is the amount of fair value gains (losses) in excess of the present value of the expected estimated economic credit losses.

6 unchanged sentences

The Financial Guaranty segment includes:

(i) premiums and losses from the FG insurance policies issued by AG that guarantee FG VIE debt;

(ii) the insurance subsidiaries’ share of earnings from all its investments in funds managed by Sound

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Point in “equity in earnings (losses) of investees;

and (iii) investment income on the FG VIE debt owned.” Under GAAP, (i) FG VIEs are consolidated by AG and the premiums and losses/recoveries associated with the financial guaranty policies in respect of the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”);

(i) premiums and losses from the financial guaranty insurance policies issued by AG that guarantee FG VIE debt;

(ii) the insurance subsidiaries’ share of earnings from all its investments in funds managed by Sound Point in “equity in earnings (losses) of investees;” and (iii) investment income on the FG VIE debt owned.

Under GAAP, (i) FG VIEs are consolidated by AG and the premiums and losses/recoveries associated with the financial guaranty policies in respect of the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”);

(ii) certain investments in funds managed by Sound Point are, or were in prior periods, accounted for as CIVs (in the reconciliation tables below, the CIVs and related eliminations of the Financial Guaranty segment’s “equity in earnings (losses) of investees” associated with the Company’s ownership interest in CIVs are presented in “other”);

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

The Financial Guaranty segment primarily consists of the adjusted operating income (loss) of the Company’s FG insurance subsidiaries and AG Asset Strategies LLC (AGAS).

The Financial Guaranty segment primarily consists of the adjusted operating income (loss) of the Company’s financial guaranty insurance subsidiaries and AG Asset Strategies LLC (AGAS).

The Annuity Reinsurance segment comprises the results of Assured Life Re and other subsidiaries acquired in the Assured Life Re Acquisition.

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

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

The incentive fees are performance fees earned by the consolidated general partner of a fund managed by Sound Point.

The Asset Management segment recognized revenues and expenses of this general partnership of $ 118 million and $ 68 million, respectively, in first quarter 2026, and $ 6 million and $ 4 million, respectively, in first quarter 2025.

There were no Asset Management revenues and expenses recognized in second quarter 2026.

The Asset Management segment recognized revenues of this general partnership of $ 15 million, $ 118 million and $ 21 million in second quarter 2025, six months 2026 and six months 2025, respectively.

The Asset Management segment recognized expenses of this general partnership of $ 9 million, $ 68 million and $ 13 million in second quarter 2025, six months 2026 and six months 2025, respectively.

For segment reporting, the Company includes intersegment revenues, which are eliminated in consolidation, but are included in the measure of Asset Management segment’s results.

At the end of first quarter 2026, the Company deconsolidated this general partner and the corresponding CIV after the payout of carried interest from the sale of the underlying asset in a single-asset fund.

At the end of the first quarter of 2026, the Company deconsolidated this general partner and the corresponding CIV after the payout of carried interest from the sale of the underlying asset in a single-asset fund.

Variable Interest Entities.

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(ii) other corporate operating expenses of AGL and the U.S.

Holding Companies, (iii) equity in earnings from certain alternative investments;

(iv) beginning in the fourth quarter of 2025, a portion of the equity in earnings of Assured Healthcare Partners LLC managed funds that were transferred from AG to AGMH as a part of a stock redemption;

and (v) gains and losses associated with certain corporate development or other strategic initiatives.

In addition, the Corporate division includes a bargain purchase gain recognized in connection with the Assured Life Re Acquisition in first quarter 2026.

Holding Companies, (iii) equity in earnings from certain alternative investments, including, beginning in the fourth quarter of 2025, a portion of the equity in earnings of Assured Healthcare Partners LLC managed funds that were transferred from AG to AGMH as a part of a stock redemption;

and (iv) gains and losses associated with certain corporate development or other strategic initiatives.

In addition, the Corporate division includes a bargain purchase gain recognized in connection with the Assured Life Re Acquisition in the first quarter of 2026.

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

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Segment Information

First Quarter

Second Quarter

Financial Guaranty Annuity Reinsurance Asset Management Financial Guaranty Asset Management

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Segment employee compensation and benefit expenses 47 3 — 44 —

Segment amortization of deferred acquisition costs 5 — — 5 —

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

Other segment items (2) 30 2 — 29 9

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Non-cash compensation and operating expenses (3) 15 — — 14 —

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Annuity Reinsurance Asset Management Financial Guaranty (1) Asset Management

(in millions)

Third-party revenues $ 377 $ 25 $ 94 $ 433 $ 18

Intersegment revenues 4 — 24 5 3

Segment revenues 381 25 118 438 21

Segment loss and LAE (benefit) 22 — — 4 —

Segment benefit expense for annuity reinsurance contracts — 15 — — —

Segment employee compensation and benefit expenses 101 5 — 96 —

Segment amortization of DAC 10 — — 10 —

Other segment items (2) 61 4 68 59 13

Segment expenses 194 24 68 169 13

Segment equity in earnings (losses) of investees ( 2 ) — 1 32 12

Segment provision (benefit) for income taxes ( 2 ) ( 1 ) 11 57 4

Segment adjusted operating income (loss) $ 187 $ 2 $ 40 $ 244 $ 16

Selected components of segment adjusted operating income:

Net investment income $ 177 $ 16 $ — $ 175 $ —

Non-cash compensation and operating expenses (3) 36 1 — 32 —

_____________________

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

Derivatives, for additional information.

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

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

for the Asset Management segment include expenses associated with incentive fees;

and for the Annuity Reinsurance segment include professional service fees and certain overhead expenses.

for the Asset Management segment these include expenses associated with incentive fees;

and for the Annuity Reinsurance segment these include professional service fees and certain overhead expenses.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The tables below present a reconciliation of significant components of segment information to the comparable consolidated amounts.

Reconciliation of Segment Information to Consolidated Information

Three Months Ended June 30, 2026

Equity in Earnings (Losses) of Investees Less:

Net Income (Loss) Attributable to AGL

Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interest

(in millions)

Financial Guaranty $ 199 $ 87 $ ( 10 ) $ 17 $ — $ 85

Annuity Reinsurance 15 13 — — — 2

Asset Management — — ( 5 ) ( 1 ) — ( 4 )

Total segments 214 100 ( 15 ) 16 — 83

Corporate division 3 38 4 ( 3 ) — ( 28 )

Other ( 2 ) ( 3 ) — — 1 —

Subtotal 215 135 ( 11 ) 13 1 55

Reconciling items:

Realized gains (losses) on investments ( 10 ) — — — — ( 10 )

Non-credit impairment-related fair value gains (losses) on credit derivatives ( 1 ) — — — — ( 1 )

Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment ( 1 ) — — — — ( 1 )

Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld — — — — — —

Fair value gains (losses) on CCS ( 7 ) — — — — ( 7 )

Foreign exchange gains (losses) on remeasurement of certain assets and liabilities ( 1 ) — — — — ( 1 )

Tax effect — — — ( 4 ) — 4

Consolidated $ 195 $ 135 $ ( 11 ) $ 9 $ 1 $ 39

Assured Guaranty Ltd.

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Reconciliation of Segment Information to Consolidated Information

Three Months Ended March 31, 2026

Three Months Ended June 30, 2025

Equity in Earnings (Losses) of Investees Less:

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Financial Guaranty $ 199 $ 105 $ 2 $ 20 $ — $ 76

Asset Management 15 9 ( 1 ) 1 — 4

Total segments 214 114 1 21 — 80

Corporate division 4 39 3 ( 3 ) — ( 29 )

Other — ( 2 ) ( 1 ) ( 1 ) 3 ( 1 )

Subtotal 218 151 3 17 3 50

Reconciling items:

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

Non-credit impairment-related fair value gains (losses) on credit derivatives ( 1 ) — — — — ( 1 )

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

Foreign exchange gains (losses) on remeasurement of certain assets and liabilities 71 — — — — 71

Tax effect — — — 10 — ( 10 )

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 2026

Equity in Earnings (Losses) of Investees Less:

Net Income (Loss) Attributable to AGL

Revenues Expenses Provision (Benefit) for Income Taxes Noncontrolling Interest

(in millions)

Financial Guaranty $ 381 $ 194 $ ( 2 ) $ ( 2 ) $ — $ 187

Annuity Reinsurance 25 24 — ( 1 ) — 2

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Reconciliation of Segment Information to Consolidated Information

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Equity in Earnings (Losses) of Investees Less:

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Outstanding Exposure

The Company’s outstanding exposure presented in this note includes all FG contracts outstanding as of the dates presented, regardless of contractual form written (i.e., credit derivative form or traditional FG insurance) or applicable accounting model (i.e., FG insurance, credit derivatives, or FG VIE).

The presentation also includes specialty business with risk characteristics similar to those of the Company’s structured finance exposures written in FG form.

The Company sells credit protection primarily in FG insurance form.

The Company’s outstanding exposure presented in this note includes all financial guaranty contracts outstanding as of the dates presented, regardless of contractual form written (i.e., credit derivative form or traditional financial guaranty insurance) or applicable accounting model (i.e., financial guaranty insurance, credit derivatives or FG VIE).

The presentation also includes specialty business with risk characteristics similar to those of the Company’s structured finance exposures written in financial guaranty form.

The Company sells credit protection primarily in financial guaranty insurance form.

The Company may also sell credit protection in other forms of insurance or by issuing policies that guarantee payment obligations under credit default swaps (CDS).

The Company’s guaranties of CDS are generally structured such that the circumstances giving rise to the Company’s obligation to make loss payments are similar to those for its FG insurance contracts.

The Company’s guaranties of CDS are generally structured such that the circumstances giving rise to the Company’s obligation to make loss payments are similar to those for its financial guaranty insurance contracts.

The Company seeks to limit its exposure to losses by underwriting obligations that it views to be investment grade at inception, although on occasion it may underwrite new issuances that it views to be below-investment-grade (BIG), typically as part of its loss mitigation strategy for existing troubled exposures.

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

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

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

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state or municipal governmental authorities, as well as tax-supported bonds, revenue bonds and other obligations supported by covenants from state or municipal governmental authorities or other municipal obligors to impose and collect fees and charges for public services or specific infrastructure projects.

The Company includes within public finance obligations those obligations backed by the cash flow from leases or other revenues from projects serving substantial public purposes, including utilities, toll roads, healthcare facilities and government office buildings as well as obligations issued by U.S.

The Company includes within public finance obligations those obligations backed by cash flows from leases or other revenues from projects serving substantial public purposes, including utilities, toll roads, healthcare facilities and government office buildings as well as obligations issued by U.S.

sovereign and sub-sovereign issuers and governmental authorities.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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Variable Interest Entities.

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

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

Unless otherwise specified,

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Surveillance Categories

The Company segregates its FG insured portfolio into investment grade and BIG surveillance categories to facilitate the appropriate allocation of resources to monitoring and loss mitigation efforts and to aid in establishing the appropriate cycle for periodic review of each exposure.

The Company segregates its financial guaranty insured portfolio into investment grade and BIG surveillance categories to facilitate the appropriate allocation of resources to monitoring and loss mitigation efforts and to aid in establishing the appropriate cycle for periodic review of each exposure.

BIG exposures include all exposures with internal credit ratings below BBB-.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Exposure

The Company measures its FG exposure in terms of (i) gross and net par outstanding and (ii) gross and net debt service.

The Company measures its financial guaranty exposure in terms of (i) gross and net par outstanding and (ii) gross and net debt service.

The Company typically guarantees the payment of debt service when due.

Since most of these payments are due in the future, the Company generally uses gross and net par outstanding as a proxy for its FG exposure.

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

Since most of these payments are due in the future, the Company generally uses gross and net par outstanding as a proxy for its financial guaranty exposure.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

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

dollar denominated par outstanding is translated at the spot rate at the end of the reporting period.

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

As of both March 31, 2026 and December 31, 2025, the Company excluded net par outstanding of $ 0.8 billion, attributable to Loss Mitigation Securities.

As of both June 30, 2026 and December 31, 2025, the Company excluded net par outstanding of $ 0.8 billion, attributable to Loss Mitigation Securities.

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

Net debt service outstanding equals gross debt service outstanding net of any reinsurance.

Future debt service payments include the estimated impact of any consumer price index inflator after the reporting date, as well as, in the case of accreting (zero-coupon) obligations, accretion after the reporting date.

Future debt service payments include the estimated impact of any CPI inflator after the reporting date, as well as, in the case of accreting (zero-coupon) obligations, accretion after the reporting date.

The Company calculates its debt service outstanding as follows:

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

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

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

Debt service is a measure of the estimated maximum potential exposure to insured obligations before considering the Company’s various legal rights to the underlying collateral and other remedies available to it under its financial guaranty contract.

Actual debt service may differ from estimated debt service due to refundings, terminations, negotiated restructurings, prepayments, changes in interest rates on floating and variable rate insured obligations, consumer price indices differing from projections, changes in foreign exchange rates on non-U.S.

Actual debt service may differ from estimated debt service due to refundings, terminations, negotiated restructurings, prepayments, changes in interest rates on floating and variable rate insured obligations, CPIs differing from projections, changes in foreign exchange rates on non-U.S.

dollar denominated insured obligations and other factors.

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Debt Service and Par Outstanding

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Gross Net Gross Net

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Financial Guaranty Portfolio by Internal Rating

As of March 31, 2026

As of June 30, 2026

Public Finance

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Components of BIG Net Par Outstanding

As of March 31, 2026

As of June 30, 2026

BIG Net Par Outstanding

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BIG Net Par Outstanding and Number of Risks

As of March 31, 2026

As of June 30, 2026

Net Par Outstanding Number of Risks (2)

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Specialty Business

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Gross Exposure Net Exposure Gross Exposure Net Exposure

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

(2) Insurance reserve financings and securitizations exposure is projected to reach $ 1.6 billion gross and $ 1.3 billion net in 2027.

All of the exposure in the table above was rated investment grade except for $ 5 million of gross and net exposure of RVI that was rated BIG as of December 31, 2025.

In addition to the exposure disclosed above, the Company had outstanding commitments to provide financial guaranties of $ 1.4 billion of public finance gross par and $ 3.5 billion of structured finance gross par as of March 31, 2026.

In addition to the exposure disclosed above, the Company had outstanding commitments to provide financial guaranties of $ 0.8 billion of public finance gross par and $ 3.3 billion of structured finance gross par as of June 30, 2026.

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

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Expected Loss to be Paid (Recovered)

In order to effectively evaluate and manage the economics and liquidity of the entire insured portfolio regardless of contractual form written (i.e., credit derivative form or traditional FG insurance) or the applicable accounting model, management assigns ratings and calculates expected loss to be paid (recovered), on a contract-by-contract basis, in the same manner for all its insured exposures regardless of form or differing accounting models.

In order to effectively evaluate and manage the economics and liquidity of the entire insured portfolio regardless of contractual form written (i.e., credit derivative form or traditional financial guaranty insurance) or the applicable accounting model, management assigns ratings and calculates expected loss to be paid (recovered), on a contract-by-contract basis, in the same manner for all its insured exposures regardless of form or differing accounting models.

The exposure reported in Note 4.

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The three primary models are:

(i) FG insurance, as described in Note 6.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Accounted for as Financial Guaranty Insurance;

(i) financial guaranty insurance, as described in Note 6.

Contracts Accounted for as Financial Guaranty Insurance;

(ii) credit derivatives, as described in Note 8.

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Variable Interest Entities.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

This note provides information regarding expected loss to be paid (recovered), regardless of the accounting method.

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Credit performance can be affected by, among other things, economic, fiscal and financial conditions and political developments over the life of most contracts.

The Company guarantees payment of interest and principal when those amounts are scheduled to be paid and generally cannot be required to pay on an accelerated basis, although in certain circumstances it may elect to do so.

The Company guarantees payment of principal and interest when those amounts are scheduled to be paid and generally cannot be required to pay on an accelerated basis, although in certain circumstances it may elect to do so.

When obligors default on their obligations, the Company is only required to pay the shortfall between the debt service due in any given period and the amount paid by the obligors.

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Changes over a reporting period in the Company’s loss estimates for public finance obligations supported by specified revenue streams, such as revenue bonds issued by toll road authorities, municipal and regulated utilities, airport authorities or healthcare systems, generally will be influenced by factors impacting their revenue levels, such as changes in demand, changing demographics and other economic and regulatory factors, especially if the obligations do not benefit from financial support from other tax revenues or governmental authorities.

Changes over a reporting period in the Company’s loss estimates for its tax-supported and general obligation public finance transactions generally will be influenced by factors impacting the public

Changes over a reporting period in the Company’s loss estimates for its tax-supported and general obligation public finance transactions generally will be influenced by factors impacting the public issuer’s ability and willingness to pay, such as changes in the economy and population of the relevant area;

changes in the

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

issuer’s ability and willingness to pay, such as changes in the economy and population of the relevant area;

changes in the issuer’s ability or willingness to raise taxes, decrease spending or receive federal assistance;

issuer’s ability or willingness to raise taxes, decrease spending or receive federal assistance;

new legislation;

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

As of First Quarter

Accounting Model March 31, 2026 December 31, 2025 2026 2025

As of Second Quarter Six Months

Accounting Model June 30, 2026 December 31, 2025 2026 2025 2026 2025

(in millions)

FG insurance (see Note 6)

Financial guaranty insurance (see Note 6)

$ 179 $ 88 $ 48 $ 38 $ 92 $ 86

FG VIEs (see Note 10)

13 13 — ( 1 ) — ( 1 )

Credit derivatives (see Note 8)

— — — ( 1 ) — ( 64 )

$ 192 $ 101 $ 48 $ 36 $ 92 $ 21

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

FG insurance, credit derivative or FG VIE.

financial guaranty insurance, credit derivative or FG VIE.

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

currencies that ranged from 1.93 % to 5.68 % with a weighted average of 4.16 % as of March 31, 2026 and 1.93 % to 5.35 % with a weighted average of 3.92 % as of December 31, 2025.

currencies that ranged from 2.18 % to 5.67 % with a weighted average of 4.35 % as of June 30, 2026 and 1.93 % to 5.35 % with a weighted average of 3.92 % as of December 31, 2025.

Assured Guaranty Ltd.

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Net Expected Loss to be Paid (Recovered)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

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____________________

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

Derivatives, for additional information.

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

Net Expected Loss to be Paid (Recovered)

Roll Forward by Sector

First Quarter 2026

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

Second Quarter 2026

Sector Net Expected Loss to be Paid (Recovered) as of March 31, 2026 Net Economic Loss

Development (Benefit) Net (Paid)

Net Expected Loss to be Paid (Recovered) as of March 31, 2026

Net Expected Loss to be Paid (Recovered) as of June 30, 2026

(in millions)

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Total $ 141 $ 48 $ 3 $ 192

Second Quarter 2025

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

Development (Benefit) Net (Paid)

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

(in millions)

Public finance:

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

public finance 122 18 ( 1 ) 139

Public finance 157 42 ( 7 ) 192

Structured finance:

RMBS ( 37 ) ( 6 ) 8 ( 35 )

Other structured finance 30 — ( 1 ) 29

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

Total $ 150 $ 36 $ — $ 186

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

First Quarter 2025

Six Months 2026

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

Development (Benefit) Net (Paid)

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

Net Expected Loss to be Paid (Recovered) as of June 30, 2026

(in millions)

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Total $ 101 $ 92 $ ( 1 ) $ 192

Six Months 2025

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

Development (Benefit) Net (Paid)

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

(in millions)

Public finance:

public finance $ 18 $ 53 $ ( 18 ) $ 53

public finance 98 42 ( 1 ) 139

Public finance 116 95 ( 19 ) 192

Structured finance:

RMBS ( 43 ) ( 9 ) 17 ( 35 )

Other structured finance (2) 33 ( 65 ) 61 29

Structured finance ( 10 ) ( 74 ) 78 ( 6 )

Total $ 106 $ 21 $ 59 $ 186

____________________

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

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

Derivatives, for additional information.

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

Includes cash proceeds for recoveries related to amounts previously paid.

The tables above include (i) net LAE paid (recovered) of $ 2 million and $( 61 ) million for first quarter 2026 and first quarter 2025, respectively, and (ii) net expected LAE to be paid of $ 13 million and $ 8 million as of March 31, 2026 and December 31, 2025, respectively.

The tables above include (i) net LAE paid (recovered) of $ 2 million, $ 5 million, $ 4 million and $( 56 ) million for second quarter 2026, second quarter 2025, six months 2026 and six months 2025, respectively, and (ii) net expected LAE to be paid of $ 9 million and $ 8 million as of June 30, 2026 and December 31, 2025, respectively.

Public Finance

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

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

The total net expected loss to be paid for public finance exposures is net of expected recoveries of $ 309 million and $ 311 million as of March 31, 2026 and December 31, 2025, respectively, for certain claims and LAE that have already been paid.

In first quarter 2026, the economic loss development for public finance transactions was primarily attributable to Brightline Trains Florida LLC (Brightline) and PREPA.

As of March 31, 2026, the Company had £ 1.8 billion (or $ 2.4 billion) of net par outstanding of Thames Water Utilities Finance PLC (Thames), a BIG rated U.K.

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

transportation, global healthcare and U.K.

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

The total net expected loss to be paid for public finance exposures is net of expected recoveries of $ 302 million and $ 311 million as of June 30, 2026 and December 31, 2025, respectively, for certain claims and LAE that have already been paid.

In second quarter 2026, the economic loss development for public finance transactions was primarily attributable to Brightline Trains Florida LLC (Brightline).

In six months 2026, the economic loss development for public finance transactions was primarily attributable to Brightline and PREPA, partially offset by improvements in certain healthcare exposures.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Thames Water Utilities Finance PLC

As of June 30, 2026, the Company had £ 1.8 billion (or $ 2.4 billion) of net par outstanding of Thames Water Utilities Finance PLC (Thames), a BIG rated U.K.

regulated utility.

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Although uncertainty remains, the Thames creditors and Ofwat are engaged in discussions regarding a comprehensive settlement to restructure and recapitalize Thames.

Transportation

As of June 30, 2026, the Company had insured BIG net par of $ 1.1 billion related to Brightline, supporting the development and operation of a private high speed passenger rail system connecting Miami, Orlando and population centers in between.

The Company insures a portion of the senior revenue bonds issued by Brightline, whose credit performance is dependent on ridership growth, fare revenues and available liquidity.

Brightline’s revenues and ridership, while growing, have lagged the initial projections.

The Company’s exposure benefits from a continuing senior lien on the assets of Brightline.

European Renewable Energy and U.K.

Student Accommodation Transactions

As of March 31, 2026, the Company had insured net par of € 758 million (or $ 876 million) related to BIG European renewable energy transactions that are experiencing operational strain, and £ 292 million (or $ 386 million) in BIG U.K.

As of June 30, 2026, the Company had insured net par of € 727 million (or $ 831 million) related to BIG European renewable energy transactions that are experiencing operational strain, and £ 291 million (or $ 385 million) in BIG U.K.

student accommodation transactions that are experiencing weak occupancy rates and financial strain.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The Company has guaranteed project financings involving certain National Health Service (NHS) Trusts.

As of March 31, 2026, the Company had £ 417 million (or $ 552 million) of BIG net par outstanding with expected losses related to NHS Trusts.

The Company has guaranteed project financings involving certain National Health Service (NHS) Trusts and NHS Foundation Trusts.

As of June 30, 2026, the Company had £ 484 million (or $ 643 million) of BIG net par outstanding related to NHS Trusts.

Proceeds from the financings funded new and refurbished hospital buildings and facilities in the service area of the particular NHS Trust.

Certain of the bond issuers are involved in negotiations (including in some cases triggered by contract disputes) with the relevant NHS Trusts regarding various matters including the condition of the hospital facilities and service standards.

Certain of the bond issuers and the Company are involved in negotiations (including in some cases triggered by contract disputes) with the relevant NHS Trusts regarding various matters including the condition of the hospital facilities and service standards.

The Company takes into account the nature and severity of any disputes in its internal ratings.

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

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

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

Transportation

As of March 31, 2026, the Company had insured net par of $ 1.1 billion related to Brightline, supporting the development and operation of a private high speed passenger rail system connecting Miami, Orlando and population centers in between.

The Company insures a portion of the senior revenue bonds issued by Brightline, whose credit performance is dependent on ridership growth, fare revenues and available liquidity.

Brightline’s revenues and ridership, while growing, have lagged the initial projections.

The Company’s exposure benefits from a perpetual senior lien on the assets of Brightline.

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

The Company’s Puerto Rico net par and net debt service outstanding as of March 31, 2026 were $ 553 million and $ 632 million, respectively, compared with net par and net debt service outstanding as of December 31, 2025 of $ 553 million and $ 643 million, respectively.

The Company’s Puerto Rico net par and net debt service outstanding as of June 30, 2026 were $ 553 million and $ 630 million, respectively, compared with net par and net debt service outstanding as of December 31, 2025 of $ 553 million and $ 643 million, respectively.

Defaulting Puerto Rico Exposure

As of March 31, 2026, the Company’s only unresolved outstanding insured Puerto Rico exposure subject to a payment default was PREPA.

As of March 31, 2026, the Company’s PREPA net par and debt service outstanding were $ 464 million and $ 528 million, respectively.

As of June 30, 2026, the Company’s only unresolved outstanding insured Puerto Rico exposure subject to a payment default was PREPA.

As of June 30, 2026, the Company’s PREPA net par and debt service outstanding were $ 464 million and $ 526 million, respectively.

As of December 31, 2025, the Company’s PREPA net par and debt service outstanding were $ 464 million and $ 537 million, respectively.

1 unchanged sentence

The default of PREPA’s obligations has been the subject of restructuring negotiations, mediation and litigation since 2014.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Puerto Rico Litigation

7 unchanged sentences

PREPA Litigation Stay and Motion for Relief from the Litigation Stay .

In July 2024, the Federal District Court of Puerto Rico entered a global stay of all PREPA-related litigation in the District Court.

In February 2025, the Company and

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

certain other PREPA bondholders moved for relief from that litigation stay.

In March 2025, the Federal District Court of Puerto Rico granted relief from the litigation stay to permit discrete PREPA-related litigation to go forward.

In July 2024, the Federal District Court of Puerto Rico entered a global stay of all PREPA-related litigation.

In February 2025, the Company and certain other PREPA bondholders moved for relief from that litigation stay.

In March 2025, the Federal District Court of Puerto Rico granted relief from the litigation stay to permit discrete PREPA-related litigation to go forward in PREPA’s bankruptcy proceeding under Title III of PROMESA (Title III Proceeding).

Bondholders’ Administrative Expense Claim .

The Federal District Court of Puerto Rico permitted bondholders to file a motion asserting that they are entitled to compensation in the form of an administrative expense priority claim for PREPA’s consumption of net revenues during the pendency of the Title III case.

The bondholders filed their administrative expense motion in April 2025.

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On March 16, 2026, the Federal District Court of Puerto Rico denied the bondholders’ administrative expense claim motion purely on legal grounds.

The bondholders appealed the decision, and such appeals are currently pending before the First Circuit, with briefing to occur over the next few months.

Reinstated Accounting Counterclaim.

On March 30, 2026, the Company and certain other bondholders sought relief from the Federal District Court of Puerto Rico’s litigation stay with respect to their counterclaim for an equitable accounting cause of action to recover net revenues that had been wrongfully diverted from debt service since the beginning of the Title III case.

The bondholders appealed the decision, and such appeals are currently pending before the U.S.

Court of Appeals for the First Circuit (First Circuit).

Equitable Accounting Counterclaim.

On April 13, 2026, the Federal District Court of Puerto Rico issued an order indicating it was inclined to lift the litigation stay to permit the bondholders to pursue such counterclaim.

At the request of the Federal District Court of Puerto Rico, the parties submitted a report and discovery plan on April 18, 2026, which included competing proposals and schedules for litigating the counterclaim, including the scope and timing of relevant discovery.

As of August 6, 2026, discovery for the equitable accounting cause of action is ongoing.

At the July 2026 Omnibus Hearing, the Federal District Court of Puerto Rico flagged a number of key legal issues to be resolved during the summary judgment phase of the equitable accounting counterclaim litigation, with motions on these issues targeted for submission in late September 2026.

Composition of the Financial Oversight and Management Board for Puerto Rico

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administration filed a notice of appeal of the preliminary injunction to the First Circuit.

Subsequently, the U.S.

administration requested a stay of the litigation pending the U.S.

The litigation was subsequently stayed pending the U.S.

Supreme Court’s decision in Trump v.

Cook, a case involving related questions of the powers of the U.S.

President to terminate a member of the Federal Reserve Board of Governors;

the requested stay was unopposed and granted on December 30, 2025.

Oral arguments in the Trump v.

Cook case were heard on January 21, 2026, with a decision expected to follow by the end of the U.S.

Supreme Court’s current term in late June or early July 2026.

After the Commonwealth purported to unilaterally terminate a 2019 restructuring support agreement for PREPA’s bonds in March 2022, the Federal District Court of Puerto Rico ordered the parties into mediation and appointed the Honorable Shelley C.

Chapman as lead mediator.

After the First Circuit issued its decision in the lien and estimation appeal, the Federal District Court of Puerto Rico ordered the FOMB and bondholders to resume mediation, subsequently extending mediation several times.

The Federal District Court of Puerto Rico most recently extended the mediation through October 31, 2026.

Plan of Adjustment, Disclosure Statement and Related Stayed Proceedings

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

The Plan of Adjustment remains before the Federal District Court of Puerto Rico with no schedule for any confirmation proceedings in anticipation that a revised Plan will be submitted.

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

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

Cook , a case involving the President’s authority to remove a member of the Board of Governors of the Federal Reserve System.

On June 29, 2026, the U.S.

Supreme Court issued its decision in Trump v.

Supreme Court concluded that the attempted removal of a Federal Reserve Board member was ineffective because required pre-removal procedures were not followed.

This decision has implications for the claims asserted by the former FOMB members regarding the procedural requirements applicable to their removals.

The ultimate impact of the U.S.

Supreme Court’s Trump v.

Cook decision on the composition of the FOMB remains

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

bonds unless and until such lenders are paid in full, as well as orders subordinating the PREPA bondholders’ lien and claims to such lenders’ claims, and declaring the PREPA restructuring support agreement executed in May 2019 null and void.

uncertain as the U.S.

administration may seek to remove FOMB members following procedures in accordance with the Trump v.

Cook decision.

Mediation and Stayed Proceedings

On July 10, 2024, following the First Circuit’s determinations that bondholders have a claim against PREPA for the full principal amount of the bonds plus matured interest and that the claim is secured by PREPA’s net revenues, including future net revenues, the Federal District Court of Puerto Rico ordered the FOMB and bondholders to resume mediation and instituted a stay of all PREPA litigation, subsequently extending mediation and the litigation stay several times.

The Federal District Court of Puerto Rico most recently extended the mediation through October 31, 2026, and the litigation stay indefinitely.

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

• Adversary complaint by certain unsecured lenders of PREPA against the Company, among other parties, including various PREPA bondholders and bond insurers, seeking, among other things, declarations that the unsecured lines of credit qualify as “Current Expenses” under the trust agreement, there is no valid lien securing the PREPA bonds unless and until such lenders are paid in full, as well as orders subordinating the PREPA bondholders’ lien and claims to such lenders’ claims, and declaring the PREPA restructuring support agreement executed in May 2019 null and void.

• Adversary complaint filed in 2023 by the official committee of unsecured creditors, PREPA’s employee union, PREPA’s retirement system, and certain other unsecured creditors, against the FOMB, PREPA, Puerto Rico Fiscal Agency and Financial Advisory Authority, and the PREPA bond trustee.

1 unchanged sentence

Non-Defaulting Puerto Rico Exposure

As of both March 31, 2026 and December 31, 2025, the Company had $ 76 million, of remaining non-defaulting Puerto Rico net par outstanding related primarily to the Puerto Rico Municipal Finance Agency (MFA).

As of both June 30, 2026 and December 31, 2025, the Company had $ 76 million of remaining non-defaulting Puerto Rico net par outstanding related primarily to the Puerto Rico Municipal Finance Agency (MFA).

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

9 unchanged sentences

(i) the rate at which borrowers from a particular delinquency category (number of monthly payments behind) eventually default (which is referred to as the liquidation rate), (ii) projections of how many of the currently performing loans will default and when they will default, (iii) loss severity, which is the amount of loss the transaction experiences on a defaulted loan after the application of net proceeds from the disposal of the underlying property, and (iv) recovery assumptions to reflect observed trends in recoveries of principal balances of modified loans that had been previously written off.

In recent years, the two primary drivers of changes in expected loss have been the projected and actual recoveries on previously written off or deferred loan balances, and changes in discount rates.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

In recent years, the two primary drivers of changes in expected loss have been the projected and actual recoveries on previously written off or deferred loan balances and changes in discount rates.

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

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

March 31, December 31, First Quarter

June 30, December 31, Second Quarter Six Months

2026 2025 2026 2025 2026 2025

20 unchanged sentences

The Company establishes its scenarios by assuming various levels of recoveries on known deferred balances and increasing and decreasing the periods and levels of stress on the remaining collateral.

In the Company’s most stressful scenario where 20 % of deferred principal balances are assumed to be recovered, loss severities experience stress for nine years and the initial ramp-down of the conditional default rates (CDR) was assumed to occur over 16 months, expected loss to be paid would increase from current projections by approximately $ 32 million for all first lien U.S.

In the Company’s most stressful scenario where 20 % of deferred principal balances are assumed to be recovered, loss severities experience stress for nine years and the initial ramp-down of the conditional default rates (CDR) was assumed to occur over 16 months after being held constant for 42 months, expected loss to be paid would increase from current projections by approximately $ 31 million for all first lien U.S.

RMBS transactions.

In the Company’s least stressful scenario where 80 % of deferred principal balances are assumed to be recovered, the CDR plateau was six months shorter ( 30 months, effectively assuming that liquidation rates would improve) and the CDR recovery was more pronounced (including an initial ramp-down of the CDR over eight months ), expected loss to be paid would decrease from current projections by approximately $ 31 million for all first lien U.S.

In the Company’s least stressful scenario where 80 % of deferred principal balances are assumed to be recovered, loss severities experience stress for four years and the initial ramp-down of the CDR was assumed to occur over eight months after being held constant for 30 months, expected loss to be paid would decrease from current projections by approximately $ 30 million for all first lien U.S.

RMBS transactions.

3 unchanged sentences

If projected future interest rates were to fall below the weighted average coupon of the underlying mortgages, excess spread projections may increase.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Second Lien U.S.

4 unchanged sentences

RMBS claims and reimbursements are the amount and timing of future recoveries from previously charged-off loans and changes in discount rates.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

In the Company’s most stressful scenario, assuming 40 % recoveries on charged-off loans would decrease the expected recovery by approximately $ 45 million for HELOC transactions.

12 unchanged sentences

Outstanding Exposure, and Note 5.

Expected Loss to be Paid (Recovered), includes contracts that are accounted for as FG insurance contracts, credit derivatives and consolidated FG VIEs.

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

Expected Loss to be Paid (Recovered), includes contracts that are accounted for as financial guaranty insurance contracts, credit derivatives and consolidated FG VIEs.

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

Derivatives, for amounts related to CDS and Note 10.

1 unchanged sentence

Net Earned Premiums

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

FG insurance:

Financial guaranty insurance:

Scheduled net earned premiums $ 80 $ 75 $ 156 $ 151

1 unchanged sentence

Accretion of discount on net premiums receivable 10 9 20 18

FG insurance net earned premiums 80 90

Financial guaranty insurance net earned premiums 101 88 181 178

Specialty net earned premiums 1 1 3 2

Net earned premiums $ 102 $ 89 $ 184 $ 180

____________________

(1) Negative net earned premiums for first quarter 2026 resulted from significant modifications to FG insurance contracts.

Assured Guaranty Ltd.

2 unchanged sentences

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

First Quarter

(in millions)

1 unchanged sentence

Specialty insurance premium receivable 2 1

FG insurance premiums receivable 1,570 1,550

Financial guaranty insurance premiums receivable 1,570 1,550

New business and supplemental premiums, net of commissions 153 124

3 unchanged sentences

Foreign exchange gain (loss) on remeasurement ( 23 ) 101

FG insurance premium receivable 1,541 1,567

Change in allowance for credit losses ( 4 ) ( 1 )

Financial guaranty insurance premium receivable 1,521 1,630

Specialty insurance premium receivable 2 1

March 31, $ 1,543 $ 1,568

Approximately 67 % and 68 % of gross premiums receivable, net of commissions payable, as of March 31, 2026 and December 31, 2025, respectively, are denominated in currencies other than the U.S.

As of June 30, $ 1,523 $ 1,631

Approximately 66 % and 68 % of gross premiums receivable, net of commissions payable, as of June 30, 2026 and December 31, 2025, respectively, are denominated in currencies other than the U.S.

dollar, primarily the pound sterling and euro.

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

The timing and cumulative amount of actual collections and net earned premiums may differ from those of expected collections and of expected net earned premiums in the table below due to factors such as foreign exchange rate fluctuations, counterparty collectability issues, accelerations, commutations, restructurings, changes in the CPIs, changes in expected lives, new business and changes in ratings of the insured obligations and/or the Company’s financial guaranty insurance subsidiaries.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Insurance

Expected Future Premium Collections and Earnings

As of March 31, 2026

As of June 30, 2026

Future Net Premiums to be Earned (2)

3 unchanged sentences

(in millions)

2026 (April 1 - June 30) $ 82 $ 81 $ 10 $ 91

2026 (July 1 - September 30) $ 76 $ 81 $ 10 $ 91

14 unchanged sentences

(1) Net of assumed commissions payable.

The future premiums to be collected are not adjusted for the allowance for credit losses.

(2) Net of reinsurance.

Selected Information for FG Insurance Policies with Premiums Paid in Installments

March 31, 2026 December 31, 2025

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

June 30, 2026 December 31, 2025

(dollars in millions)

3 unchanged sentences

Weighted-average period of premiums receivable (in years) 11.8 11.7

FG Insurance Contracts’ Losses Reported in the Condensed Consolidated Financial Statements

Loss and LAE reserve and salvage and subrogation recoverable are discounted at risk-free rates for FG insurance obligations that ranged from 1.93 % to 5.68 % with a weighted average of 4.17 % as of March 31, 2026 and 1.93 % to 5.35 % with a weighted average of 3.93 % as of December 31, 2025.

Financial Guaranty Insurance Contracts’ Losses Reported in the Condensed Consolidated Financial Statements

Loss and LAE reserve and salvage and subrogation recoverable for financial guaranty insurance obligations are discounted at risk-free rates that ranged from 2.18 % to 5.67 % with a weighted average of 4.36 % as of June 30, 2026 and 1.93 % to 5.35 % with a weighted average of 3.93 % as of December 31, 2025.

Assured Guaranty Ltd.

2 unchanged sentences

Net Reserve (Salvage) by Sector

Sector March 31, 2026 December 31, 2025

Sector June 30, 2026 December 31, 2025

(in millions)

8 unchanged sentences

Total $ ( 120 ) $ ( 139 )

The table below provides a reconciliation of net expected loss to be paid (recovered) for FG insurance contracts to net expected loss to be expensed.

Expected loss to be paid (recovered) for FG insurance contracts differs from expected loss to be expensed due to:

The table below provides a reconciliation of net expected loss to be paid (recovered) for financial guaranty insurance contracts to net expected loss to be expensed.

Expected loss to be paid (recovered) for financial guaranty insurance contracts differs from expected loss to be expensed due to:

(i) the contra-paid, which represents the claim payments made and recoveries received that have not yet been recognized in the statements of operations;

2 unchanged sentences

Reconciliation of Net Expected Loss to be Paid (Recovered) to Net Expected Loss to be Expensed

FG Insurance Contracts

As of March 31, 2026

Financial Guaranty Insurance Contracts

As of June 30, 2026

(in millions)

Net expected loss to be paid (recovered) - FG insurance $ 129

Net expected loss to be paid (recovered) - Financial guaranty insurance $ 179

Contra-paid, net 22

Salvage and subrogation recoverable, net 425

Loss and LAE reserve - FG insurance contracts, net of reinsurance ( 309 )

Loss and LAE reserve - Financial guaranty insurance contracts, net of reinsurance ( 305 )

Net expected loss to be expensed (present value) $ 321

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

The amount and timing of actual loss and LAE may differ from the estimates shown below due to factors such as accelerations, commutations, changes in expected lives, changes in foreign exchange rates and updates to loss estimates.

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

2 unchanged sentences

Net Expected Loss to be Expensed

FG Insurance Contracts

As of March 31, 2026

Financial Guaranty Insurance Contracts

As of June 30, 2026

(in millions)

2026 (April 1 - June 30) $ 4

2026 (July 1 - September 30) $ 4

4 unchanged sentences

Total expected future loss and LAE $ 282

The following table presents the loss and LAE (benefit) reported in the condensed consolidated statements of operations by sector for FG insurance contracts.

The following table presents the loss and LAE (benefit) reported in the condensed consolidated statements of operations by sector for financial guaranty insurance contracts.

Loss and LAE (Benefit) by Sector

First Quarter

Second Quarter Six Months

Sector 2026 2025 2026 2025

10 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The following tables provide information on FG insurance contracts categorized as BIG.

The following tables provide information on financial guaranty insurance contracts categorized as BIG.

Financial Guaranty Insurance

BIG Transaction Loss Summary

As of March 31, 2026

As of June 30, 2026

Gross Net Total BIG

19 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Financial Guaranty Insurance

BIG Transaction Loss Summary

23 unchanged sentences

(3) Represents expected inflows from future payments by obligors pursuant to restructuring agreements, settlements, excess spread on any underlying collateral and other estimated recoveries.

Potential recoveries also include recoveries on certain investment grade credits, related mainly to exposures that were previously BIG and for which claims have been paid in the past.

Potential recoveries also include recoveries on certain investment grade credits, related primarily to exposures that were previously BIG and for which claims have been paid in the past.

(4) The increases in BIG 2 exposure, expected losses to be paid and deferred premium revenue in 2026 relate primarily to Brightline.

Annuity Reinsurance

6 unchanged sentences

(ii) a liability for future policy benefits (LFPB) and a deferred profit liability (DPL) that are reported together in the condensed consolidated balance sheets in the line item “future policy benefits for annuity reinsurance contracts;” and (iii) a VOBA asset representing the difference between the fair value of the PRT obligation and the sum of the insurance liabilities described in (ii) above.

Gross premiums are recognized as revenue when due from policyholders.

As PRT agreements are single-premium reinsurance contracts, the premium on the PRT contract was collected prior to the Acquisition Date, and no future premiums are due.

The LFPB is calculated using the net premium ratio approach and represents the present value of estimated future benefits

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

and related expenses less the present value of estimated future net premiums for the PRT block of business.

Gross premiums are recognized as revenue when due from policyholders.

As PRT agreements are single-premium reinsurance contracts, the premium on the PRT contract was collected prior to the Acquisition Date, and no future premiums are due.

The LFPB is calculated using the net premium ratio approach and represents the present value of estimated future benefits and related expenses less the present value of estimated future net premiums for the PRT block of business.

The principal assumptions used in the measurement of these insurance liabilities include longevity, investment returns, inflation, discount rate and other factors.

6 unchanged sentences

Updates to assumptions are applied on a retrospective basis, and the change in reserves resulting from updates to assumptions is reported in “benefit expense for annuity reinsurance contracts” in the condensed consolidated statements of operations.

The discount rate used to measure the LFPB is based on the yield of upper-medium grade (low-credit-risk) fixed-income instruments, as prescribed by ASC 944.

This is interpreted as a single-A corporate yield, constructed from the U.K.

The discount rate used to measure the LFPB is based on the yield of upper-medium grade (low-credit-risk) fixed-income instruments which is interpreted as a single-A corporate yield, constructed from the U.K.

gilt curve plus an observed credit spread.

3 unchanged sentences

On the Acquisition Date, in respect of the MYGA agreement, the Company recorded (i) funds withheld at fair value;

(ii) a liability representing the account value of the assumed block of business (i.e., the policyholder account balances), (iii) a VOBA liability representing the excess of fair value of the MYGA obligation over the account value;

(ii) a liability representing the account value of the assumed block of business (i.e., the policyholder account balances);

(iii) a VOBA liability representing the excess of fair value of the MYGA obligation over the account value;

and (iv) other payables representing pending settlement amounts due to the ceding company.

The MYGA block of business is an investment-type contract accounted for under the deposit method.

Deposits related to investment-type contracts are credited (i.e., reported as deposits) to “policyholder account balances for annuity reinsurance contracts” on the condensed consolidated balance sheets.

Deposits related to investment-type contracts are reported as deposits in “policyholder account balances for annuity reinsurance contracts” on the condensed consolidated balance sheets.

Expenses consist primarily of the interest credited to policyholder deposits and are reported in “benefit expense for annuity reinsurance contracts” on the condensed consolidated statements of operations.

2 unchanged sentences

The change in the fair value of this embedded derivative is based on the unrealized gains and losses of the underlying assets and reported as a component of “fair value gains (losses) on derivatives” in the condensed consolidated statements of operations.

Policyholder account balances for annuity reinsurance contracts represent the assumed contract values that have accrued to the benefit of the policyholders as of the balance sheet date where account balances are equal to deposits plus interest credited less withdrawals and other charges assessed against the account balance, as applicable.

Policyholder account balances for annuity reinsurance contracts represent the assumed contract values that have accrued to the benefit of the policyholders as of the balance sheet date and are equal to deposits plus interest credited less withdrawals and other charges assessed against the account balance, as applicable.

Future Policy Benefits for Annuity Reinsurance Contracts

3 unchanged sentences

Future Policy Benefits for Annuity Reinsurance Contracts

As of March 31, 2026

As of June 30, 2026

(in millions)

4 unchanged sentences

Roll Forward of LFPB

First Quarter

(dollars in millions)

3 unchanged sentences

Effect of actual variances from expected experience 1

Adjusted balance as January 21, 2026 475

Adjusted balance as of January 21, 2026 470

Interest accrual 9

10 unchanged sentences

____________________

(1) The weighted average duration represents average cohort-level duration, weighted by the benefit reserves amount, derived from the discounted expected future benefit cash flows.

The interest expense included in “benefit expense for annuity reinsurance contracts” in the condensed consolidated statement of operations was $ 4 million for first quarter 2026.

(1) The weighted average duration represents average cohort-level duration, weighted by the reserves amount, derived from the discounted expected future benefit cash flows.

The interest expense included in “benefit expense for annuity reinsurance contracts” in the condensed consolidated statements of operations was $ 6 million and $ 10 million for second quarter 2026 and six months 2026, respectively.

Policyholder Account Balances for Annuity Reinsurance Contracts

The following table presents the balances and the rollforward of “policyholder account balances for annuity reinsurance contracts” which consists of MYGA.

The following table presents the balances and the rollforward of “policyholder account balances for annuity reinsurance contracts”, which consists of MYGA, on the condensed consolidated balance sheet.

Assured Guaranty Ltd.

1 unchanged sentence

Roll Forward of Policyholder Account Balances for Annuity Reinsurance Contracts

First Quarter

(dollars in millions)

11 unchanged sentences

The Company is currently not accepting renewals on the MYGA book of business.

As of March 31, 2026

As of June 30, 2026

Range of Guaranteed Minimum Crediting Rate At Guaranteed Minimum

10 unchanged sentences

The Company’s credit derivatives are generally governed by International Swaps and Derivatives Association, Inc.

documentation and have certain characteristics that differ from FG insurance contracts.

For example, the Company’s control rights with respect to a reference obligation under a CDS may be more limited than when the Company issues a FG insurance contract.

documentation and have certain characteristics that differ from financial guaranty insurance contracts.

For example, the Company’s control rights with respect to a reference obligation under a CDS may be more limited than when the Company issues a financial guaranty insurance contract.

In addition, there are more circumstances under which the Company may be obligated to make payments.

Similar to a FG insurance contract, the Company would be obligated to pay if the obligor failed to make a scheduled payment of principal or interest in full.

Similar to a financial guaranty insurance contract, the Company would be obligated to pay if the obligor failed to make a scheduled payment of principal or interest in full.

In certain credit derivative transactions, the Company also specifically agreed to pay if the obligor were to become bankrupt or if the reference obligation were restructured.

1 unchanged sentence

If events of default or termination events specified in the credit derivative documentation were to occur, the non-defaulting or the non-affected party, which may be either the Company or the counterparty, depending upon the circumstances, may decide to terminate a credit derivative prior to maturity.

In that case, the Company may be required to make a termination payment to its swap counterparty upon such termination.

Absent such an event of default or termination event, the

In that case, the Company may be required to make a termination payment to its swap counterparty upon such

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Company may not unilaterally terminate a credit derivative contract;

Absent such an event of default or termination event, the Company may not unilaterally terminate a credit derivative contract;

however, the Company on occasion has mutually agreed to terminate certain CDS with related counterparties.

The components of the Company’s credit derivative net par outstanding and net fair value asset (liability) by sector are presented in the table below.

The estimated remaining weighted average life of credit derivatives was 9.3 years and 8.6 years as of March 31, 2026 and December 31, 2025, respectively.

The estimated remaining weighted average life of credit derivatives was 8.6 years as of both June 30, 2026 and December 31, 2025.

Credit Derivatives (1)

Net Par Outstanding Net Fair Value Asset (Liability)

As of March 31, 2026 As of December 31, 2025 As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025 As of June 30, 2026 As of December 31, 2025

(in billions) (in millions)

12 unchanged sentences

CDS Spread on AG (in basis points)

As of March 31,

2026 As of December 31, 2025 As of March 31,

As of June 30,

2026 As of December 31, 2025 As of June 30,

2025 As of December 31, 2024

3 unchanged sentences

and Effect of AG Credit Spread

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions)

2 unchanged sentences

Net fair value of credit derivatives $ ( 14 ) $ ( 15 )

The fair value of CDS contracts as of March 31, 2026, before considering the benefit applicable to AG’s credit spread, is a direct result of the relatively wider credit spreads under current market conditions, sometimes related to downgrades, compared with those at the time of underwriting for certain underlying credits with longer tenor.

The fair value of CDS contracts as of June 30, 2026, before considering the benefit applicable to AG’s credit spread, is a direct result of the relatively wider credit spreads under current market conditions, sometimes related to downgrades, compared with those at the time of underwriting for certain underlying credits with longer tenor.

Annuity Reinsurance Derivatives

2 unchanged sentences

These derivative instruments are subject to a master netting arrangement, which creates a right of offset for amounts due to and due from a counterparty that is enforceable in the event of a default or bankruptcy.

These derivatives are measured at fair value and reported on a gross basis in “other assets” or “other liabilities” on the condensed consolidated balance sheets, with changes in fair value reported in “fair value gains (losses) on derivatives” in the condensed consolidated statements of operations.

These derivatives are measured at fair value and reported on a gross basis in “other assets” or “other liabilities” on the condensed

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

consolidated balance sheets, with changes in fair value reported in “fair value gains (losses) on derivatives” in the condensed consolidated statements of operations.

The Company also evaluates its reinsurance contract terms to identify embedded derivatives.

5 unchanged sentences

Freestanding Derivatives (1)

As of March 31, 2026

As of June 30, 2026

Notional Net Fair Value Asset (Liability)

8 unchanged sentences

Fair Value Gains (Losses) on Derivatives

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

9 unchanged sentences

Fair value gains (losses) on derivatives $ 5 $ 1 $ 7 $ 105

On November 28, 2011, LBIE sued AG Financial Products Inc.

(AGFP), a subsidiary of AGL which, in the past, had provided credit protection to counterparties under CDS.

Following defaults by LBIE under transaction documents governing CDS between LBIE and AGFP, AGFP terminated the CDS in compliance with the transaction documents and properly calculated that LBIE owed AGFP approximately $ 25 million in connection with the termination, whereas LBIE asserted in its complaint filed in the Supreme Court of the State of New York (the Court) that AGFP owed LBIE a termination payment of approximately $ 1.4 billion.

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

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

____________________

(1) Six months 2025 results include $ 103 million gain recognized in connection with the LBIE litigation, which represents the full satisfaction of the judgment the Company was awarded and its claims for attorneys’ fees, expenses and interest.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

The Company has established investment guidelines for these investment managers regarding credit quality, exposure to a particular sector and exposure to a particular obligor within a sector.

10 unchanged sentences

Carrying Value

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions)

6 unchanged sentences

Funds and other investments 676 664

Other (1) 116 12

Total (2) $ 8,930 $ 8,487

____________________

(1) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $ 549 million and $ 628 million as of March 31, 2026 and December 31, 2025, respectively, excluding the Company’s ownership interest in Sound Point and, as of December 31, 2025, certain investments in funds that were accounted for as CIVs.

As of March 31, 2026 and December 31, 2025, 7.0 % and 8.6 %, respectively, of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of collateralized loan obligation (CLO) equity tranches, liquidity bonds issued by a U.K.

(1) The June 30, 2026 balance consists primarily of loans issued by a U.K.

regulated utility and a U.S.

infrastructure project to which the Company has insured exposure.

(2) In the investment portfolio, the aggregate carrying value of Sound Point managed investments was $ 548 million and $ 628 million as of June 30, 2026 and December 31, 2025, respectively, excluding the Company’s ownership interest in Sound Point and, as of December 31, 2025, certain investments in funds that were accounted for as CIVs.

As of June 30, 2026 and December 31, 2025, based on fair value, 7.4 % and 8.6 %, respectively, of available-for-sale fixed-maturity securities were either rated BIG or not rated, primarily consisting of collateralized loan obligation (CLO) equity tranches, liquidity bonds issued by a U.K.

regulated utility and Loss Mitigation Securities.

As of March 31, 2026 and December 31, 2025, the carrying value of CLO equity tranches was $ 173 million and $ 228 million, respectively.

As of March 31, 2026 and December 31, 2025, the carrying value of liquidity bonds issued by a U.K.

regulated utility was $ 162 million and $ 168 million, respectively.

As of March 31, 2026 and December 31, 2025, the carrying value of Loss Mitigation Securities was $ 135 million and $ 140 million, respectively.

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

The investment portfolio includes $ 965 million in alternative investments primarily consisting of (i) $ 173 million of CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $ 730 million of investments across various asset classes that are reported in other invested assets.

The Company’s alternative investment commitments as of

As of June 30, 2026 and December 31, 2025, the carrying value of CLO equity tranches was $ 182 million and $ 228 million, respectively.

As of June 30, 2026 and December 31, 2025, the carrying value of liquidity bonds issued by a U.K.

regulated utility to which the Company has insured exposure was $ 160 million and $ 168 million, respectively.

As of June 30, 2026 and December 31, 2025, the carrying value of Loss Mitigation Securities was $ 151 million and $ 140 million, respectively.

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

In 2022, as a result of the resolution of certain defaulting Puerto Rico exposures, the Company

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

March 31, 2026 include $ 554 million in unfunded commitments which together with its $ 965 million in funded commitments total $ 1.5 billion.

Alternative investment commitments of $ 1.5 billion include a $ 1 billion commitment to invest in Sound Point managed alternative investments, subject to certain conditions precedent.

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

received Puerto Rico CVIs, along with other consideration.

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

The fair value of remaining CVIs as of June 30, 2026 and December 31, 2025 was $ 127 million and $ 114 million, respectively.

The Company may sell any CVIs it continues to hold.

The investment portfolio includes $ 928 million in alternative investments primarily consisting of (i) $ 182 million of CLO equity securities classified as available-for-sale fixed-maturity securities, and (ii) $ 681 million of investments across various asset classes that are reported in other invested assets.

The Company’s alternative investment commitments as of June 30, 2026 include $ 480 million in unfunded commitments which together with its $ 928 million in funded commitments total $ 1.4 billion.

Alternative investment commitments of $ 1.4 billion include the $ 1 billion commitment to invest in Sound Point managed alternative investments, subject to certain conditions precedent.

Since the Assured Life Re Acquisition Date, the investment portfolio includes available-for-sale fixed-maturity securities and short-term investments supporting the PRT block of business that are held in a consolidated VIE.

Variable Interest Entities.

Accrued investment income, which is reported in “other assets,” was $ 77 million as of March 31, 2026 and $ 70 million as of December 31, 2025.

Accrued investment income, which is reported in “other assets,” was $ 77 million and $ 70 million as of June 30, 2026 and December 31, 2025, respectively.

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

As of March 31, 2026

As of June 30, 2026

Security Type Percent

39 unchanged sentences

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

government-agency obligations represented 70 % and 75 % of mortgage-backed securities as of March 31, 2026 and December 31, 2025, respectively, based on fair value.

(4) This category includes an investment in an affiliated entity with amortized cost of $ 53 million and fair value of $ 54 million, as of both March 31, 2026 and December 31, 2025.

government-agency obligations represented 71 % and 75 % of mortgage-backed securities as of June 30, 2026 and December 31, 2025, respectively, based on fair value.

(4) This category includes an investment in an affiliated entity with amortized cost of $ 59 million and $ 53 million as of June 30, 2026 and December 31, 2025, respectively, and fair value of $ 62 million and $ 54 million as of June 30, 2026 and December 31, 2025, respectively.

Gross Unrealized Loss by Length of Time

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

As of March 31, 2026

As of June 30, 2026

Less than 12 months 12 months or more Total

40 unchanged sentences

If a security appears in both categories, it is counted only once in the total column.

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

The Company has determined that the unrealized losses recorded as of March 31, 2026 and December 31, 2025 were primarily related to higher interest rates and spread compression rather than credit quality.

As of March 31, 2026, the Company did not intend to and was not required to sell investments in an unrealized loss position prior to the expected recovery in value.

As of March 31, 2026, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 270 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2025, 253 securities had unrealized losses in excess of 10% of their carrying value.

The total unrealized loss for these securities was $ 152 million and $ 147 million as of March 31, 2026 and December 31, 2025, respectively.

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of March 31, 2026 are shown below.

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

The Company has determined that the unrealized losses recorded as of June 30, 2026 and December 31, 2025 were primarily related to higher interest rates and spread compression rather than credit quality.

As of June 30, 2026, the Company did not intend to and was not required to sell investments in an unrealized loss position prior to the expected recovery in value.

As of June 30, 2026, of the securities in an unrealized loss position for which an allowance for credit loss was not recorded, 274 securities had unrealized losses in excess of 10% of their carrying value, whereas as of December 31, 2025, 253 securities had unrealized losses in excess of 10% of their carrying value.

The total unrealized loss for these securities was $ 147 million as of both June 30, 2026 and December 31, 2025.

The amortized cost and estimated fair value of available-for-sale fixed-maturity securities by contractual maturity as of June 30, 2026 are shown below.

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

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

As of March 31, 2026

As of June 30, 2026

Cost Estimated

8 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Based on fair value, fixed-maturity securities, short-term investments and cash that are either held in trust for the benefit of third-party ceding insurers in accordance with statutory requirements, placed on deposit to fulfill state licensing requirements or otherwise pledged or restricted totaled $ 76 million and $ 77 million as of March 31, 2026 and December 31, 2025, respectively.

The total collateral funded into a reinsurance trust or a similar account by certain AGL subsidiaries or is otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements had a fair value of $ 812 million and $ 813 million as of March 31, 2026 and December 31, 2025, 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 $ 73 million and $ 77 million as of June 30, 2026 and December 31, 2025, respectively.

The total collateral funded into a reinsurance trust or a similar account by certain AGL subsidiaries or otherwise restricted for the benefit of other AGL subsidiaries in accordance with statutory and regulatory requirements had a fair value of $ 796 million and $ 813 million as of June 30, 2026 and December 31, 2025, respectively.

Fixed-maturity securities of $ 583 million, short-term investments of $ 3 million and cash of $ 7 million are held in a consolidated VIE supporting the PRT block of business.

1 unchanged sentence

The use of the VIE’s assets is restricted based on the terms of the PRT reinsurance agreement.

Included in the above is $ 4 million of fixed-maturity securities that were pledged as collateral for derivatives.

Total above includes $ 7 million of fixed-maturity securities that were pledged as collateral for derivatives.

Income from Investments

1 unchanged sentence

Income from Investments

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

12 unchanged sentences

____________________

(1) Amounts include $ 3 million and $ 7 million of investment income on Loss Mitigation Securities for first quarter 2026 and first quarter 2025, respectively.

(2) Fair value gains on trading securities pertaining to securities still held as of March 31, 2026 were $ 5 million for first quarter 2026.

A majority of the trading securities are Puerto Rico CVIs.

In 2022, as a result of the resolution of certain defaulting Puerto Rico exposures, the Company received Puerto Rico CVIs, along with other consideration.

The fair value of remaining CVIs as of March 31, 2026 and December 31, 2025 was $ 119 million and $ 114 million, respectively.

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

(1) Amounts include $ 3 million, $ 7 million, $ 6 million and $ 14 million of investment income on Loss Mitigation Securities for second quarter 2026, second quarter 2025, six months 2026 and six months 2025, respectively.

(2) Fair value gains on trading securities pertaining to securities still held as of June 30, 2026 were $ 7 million for second quarter 2026 and $ 12 million for six months 2026.

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

Realized Investment Gains (Losses)

4 unchanged sentences

Net Realized Investment Gains (Losses)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

3 unchanged sentences

Change in the allowance for credit losses and intent to sell (1) ( 9 ) ( 3 ) ( 25 ) ( 13 )

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

Net realized investment gains (losses) $ ( 10 ) $ ( 6 ) $ ( 25 ) $ ( 22 )

____________________

(1) The change in the allowance for credit losses for first quarter 2026 was primarily related to CLO equity tranches and, in first quarter 2025, was primarily related to Loss Mitigation Securities.

(1) The change in the allowance for credit losses for second quarter 2026, second quarter 2025 and six months 2026 was primarily related to CLO equity tranches.

The change in the allowance for credit losses for six months 2025 was primarily related to Loss Mitigation Securities.

The proceeds from sales of fixed-maturity securities classified as available-for-sale were $ 492 million in second quarter 2026, $ 211 million in second quarter 2025, $ 585 million in six months 2026 and $ 427 million in six months 2025.

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

1 unchanged sentence

for Available-for-Sale Fixed-Maturity Securities

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

4 unchanged sentences

Balance, end of period $ 72 $ 47 $ 72 $ 47

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

The Company purchased one Loss Mitigation Security with credit deterioration during second quarter 2026 and six months 2026.

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

The majority of securities with credit losses relate to RMBS, CLOs and obligations of state and political subdivisions.

6 unchanged sentences

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

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

Such excess spread is typically distributed through the transaction’s cash flow waterfall and may be used to create additional credit

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

enhancement, applied to redeem debt issued by the VIE (thereby, creating additional overcollateralization) or distributed to equity or other investors in the transaction.

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

1 unchanged sentence

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

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

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

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

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

5 unchanged sentences

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

The Company elected the fair value option (FVO) for all assets and liabilities of its consolidated FG VIEs, except for one FG VIE consolidated during the fourth quarter of 2025.

The Company elected the fair value option (FVO) for all assets and liabilities of its consolidated FG VIEs, except for one FG VIE that was consolidated during the fourth quarter of 2025.

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

2 unchanged sentences

The change in fair value of FG VIEs’ assets and liabilities where the FVO was elected is reported in “gains (losses) on financial guaranty variable interest entities” in the condensed consolidated statements of operations, except for the change in fair value attributable to change in instrument-specific credit risk (ISCR) on FG VIEs’ liabilities for which the FVO was elected, which is reported in “other comprehensive income (loss).” Interest income and interest expense are derived from the trustee reports and also included in “gains (losses) on financial guaranty variable interest entities.”

As of both March 31, 2026 and December 31, 2025, the Company consolidated 24 FG VIEs.

As of June 30, 2026 and December 31, 2025, the Company consolidated 23 and 24 FG VIEs, respectively.

Components of FG VIE Assets and Liabilities

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

The Company’s estimate of expected loss to be paid (recovered) for FG VIEs is included in Note 5.

4 unchanged sentences

Consolidated FG VIEs by Type of Collateral

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions)

13 unchanged sentences

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

(2) Includes a contract asset related to a services agreement of approximately $ 34 million and $ 40 million as of March 31, 2026 and December 31, 2025, respectively, accounted for in accordance with ASC 606, Revenue from Contracts with Customers , as well as debt and equity investments, and cash and cash equivalents.

(2) Includes a contract asset related to a services agreement of approximately $ 34 million and $ 40 million as of June 30, 2026 and December 31, 2025, respectively, accounted for in accordance with ASC 606, Revenue from Contracts with Customers , as well as debt and equity investments, and cash and cash equivalents.

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

3 unchanged sentences

Measured under the FVO

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions)

16 unchanged sentences

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

During first quarter 2026, the Company deconsolidated a CIV related to its investments with Sound Point affiliated entities and recognized a gain on deconsolidation of $ 2 million, which was reported in “fair value gains (losses) on consolidated investment vehicles.” As of March 31, 2026, the Company did not consolidate any CIVs.

During six months 2026, the Company deconsolidated a CIV related to its investments with Sound Point affiliated entities and recognized a gain on deconsolidation of $ 2 million, which was reported in “fair value gains (losses) on consolidated investment vehicles.” As of June 30, 2026, the Company did not consolidate any CIVs.

As of December 31, 2025, the Company consolidated one CIV with assets of $ 175 million.

3 unchanged sentences

Annuity Reinsurance VIEs

The Company performs a consolidation analysis of any entities established in its annuity reinsurance business.

The assets related to the PRT block of business are held in a sub-fund of an Irish collective asset-management vehicle which meets the definition of a VIE (the PRT VIE).

1 unchanged sentence

In instances where the Company consolidates a VIE that was established as part of an assumed annuity reinsurance contract, the Company classifies the assets of that VIE in the financial statement line items that most accurately reflect their nature as opposed to a one-line-item presentation for the VIE’s assets.

As of March 31, 2026, the assets of the PRT VIE consisted of available-for-sale fixed-maturity securities of $ 574 million, short-term investments of $ 4 million, accrued interest of $ 9 million reported in “other assets,” a net derivative liability of $ 3 million and cash of $ 10 million.

As of June 30, 2026, the assets of the PRT VIE consisted of available-for-sale fixed-maturity securities of $ 583 million, short-term investments of $ 3 million, cash of $ 7 million, accrued interest of $ 9 million reported in “other assets,” and a net derivative liability of $ 6 million reported in “other assets” and “other liabilities.”

Non-Consolidated VIEs

1 unchanged sentence

Outstanding Exposure, the Company monitors all policies in the insured portfolio.

Of the approximately 16 thousand policies monitored as of March 31, 2026, approximately 15 thousand policies are not within the scope of FASB ASC 810, Consolidation , because these financial guaranties relate to the debt obligations of governmental organizations or financing entities established by a governmental organization.

Of the approximately 16 thousand policies monitored as of June 30, 2026, approximately 15 thousand policies are not within the scope of ASC 810, Consolidation , because these financial guaranties relate to the debt obligations of governmental organizations or financing entities established by a governmental organization.

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

As of March 31, 2026 and December 31, 2025, the Company identified 54 and 53 policies, respectively, that contain provisions and experienced events that may trigger consolidation.

As of both June 30, 2026 and December 31, 2025, the Company identified 53 policies that contain provisions and experienced events that may trigger consolidation.

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

As of March 31, 2026, the Company’s maximum exposure to losses relating to these VIEs was $ 837 million, which is limited to the carrying value of the investment vehicles.

As of June 30, 2026, the Company’s maximum exposure to losses relating to these VIEs was $ 827 million, which is limited to the carrying value of the investment vehicles.

Fair Value Measurement

8 unchanged sentences

These adjustments include amounts to reflect counterparty credit quality, the Company’s creditworthiness and constraints on liquidity.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

During first quarter 2026, no changes were made to the Company’s valuation models that had (or are expected to have) a material impact on the Company’s condensed consolidated balance sheets, statements of operations and comprehensive income.

During six months 2026, no changes were made to the Company’s valuation models that had (or are expected to have) a material impact on the Company’s condensed consolidated balance sheets, statements of operations and comprehensive income.

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

13 unchanged sentences

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

There was a transfer of fixed-maturity trading securities to Level 3 during first quarter 2026 as observable inputs were no longer available to the Company.

There was a transfer of fixed-maturity trading securities to Level 3 during six months 2026 as observable inputs were no longer available to the Company.

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

9 unchanged sentences

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

As of March 31, 2026, the Company used models to price 143 securities.

As of June 30, 2026, the Company used models to price 146 securities.

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

15 unchanged sentences

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

Committed Capital Securities

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

The arrangement entails eight custodial trusts (Woodbourne Capital Trust I, II, III and IV and Sutton Capital Trust I, II, III and IV), each of which issued $ 50 million face amount of CCS and invested the proceeds of that issuance in eligible assets that enable the trust to have the cash necessary to respond to AG’s exercise of a put option.

The put option consists of a right that AG has, pursuant to separate put agreements that AG entered into with each of the trusts, to issue to each trust $ 50 million of non-cumulative redeemable perpetual preferred stock, in exchange for an equivalent amount of cash (i.e., an aggregate of $ 400 million).

When AG exercises its put option, the relevant trust must liquidate the portfolio of high-quality, liquid assets that it currently maintains and use the liquidation proceeds to purchase AG preferred stock.

The put agreements have no scheduled termination date or maturity but may be terminated upon the occurrence of certain specified events.

None of the events that would give rise to a termination of the put agreements have occurred.

The fair value of CCS, which is reported in “other assets” in the condensed consolidated balance sheets, represents the difference between the present value of the remaining expected put option premium payments under the put agreements and the estimated present value of the amounts that the Company would hypothetically have to pay as of the reporting date for a comparable security.

The change in fair value of the CCS is reported in “fair value gains (losses) on committed capital securities” in the condensed consolidated statements of operations.

The estimated current cost of the Company’s CCS as of the reporting date is based on several factors, including AG’s CDS spreads, the Company’s publicly traded debt and an estimation of the securities’ remaining term.

The CCS are classified as Level 3.

Supplemental Executive Retirement Plans

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

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

The NAVs are based on observable information.

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

Credit Derivatives

3 unchanged sentences

There are multiple unobservable inputs deemed significant to the valuation model, most importantly the Company’s estimate of the value of the non-standard terms and conditions of its credit derivative contracts and how the Company’s own credit spread affects the pricing of its transactions.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

The fair value of the Company’s credit derivative contracts generally represents the difference between the present value of remaining premiums the Company expects to receive and the estimated present value of premiums that a financial guarantor of comparable credit-worthiness would hypothetically charge at the reporting date for the same protection.

The fair value of the Company’s credit derivative contracts generally represents the difference between the present value of remaining premiums the Company expects to receive and the estimated present value of premiums that a financial guarantor of comparable creditworthiness would hypothetically charge at the reporting date for the same protection.

The fair value of the Company’s credit derivatives depends on a number of factors, including notional amount of the contract, expected term, credit spreads, changes in interest rates, the credit ratings of referenced entities, the Company’s own credit risk and remaining contractual cash flows.

2 unchanged sentences

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

Consistent with previous years, market conditions as of March 31, 2026 were such that market prices of the Company’s CDS contracts were not available.

Consistent with previous years, market conditions as of June 30, 2026 were such that market prices of the Company’s CDS contracts were not available.

Assumptions and Inputs

8 unchanged sentences

The extent of the hedge depends on the types of instruments insured and current market conditions.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

In the Company’s valuation model, the current premium is not permitted to go below the minimum rate that the Company would charge to assume similar risks in the reporting period.

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

The minimum premium had no effect on the fair value of CDS contracts as of both March 31, 2026 and December 31, 2025.

The minimum premium had no effect on the fair value of CDS contracts as of both June 30, 2026 and December 31, 2025.

Annuity Reinsurance Derivatives

10 unchanged sentences

historical collateral performance, borrower profiles and other features relevant to the evaluation of collateral credit quality);

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

implied by market prices for similar securities;

yields implied by market prices for similar securities;

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

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

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

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

16 unchanged sentences

and/or (vi) evaluating information provided by the investment manager.

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

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

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

Committed Capital Securities

The put agreements have no scheduled termination date or maturity but may be terminated upon the occurrence of certain specified events.

None of the events that would give rise to a termination of the put agreements have occurred.

The change in fair value of the CCS is reported in “fair value gains (losses) on committed capital securities” in the condensed consolidated statements of operations.

The CCS are classified as Level 3.

Supplemental Executive Retirement Plans

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

The NAVs are based on observable information.

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

Assured Guaranty Ltd.

2 unchanged sentences

Fair Value Hierarchy of Financial Instruments Carried at Fair Value

As of March 31, 2026

As of June 30, 2026

Fair Value Hierarchy

55 unchanged sentences

Changes in Level 3 Fair Value Measurements

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during first quarter 2026 and first quarter 2025.

The tables below present a roll forward of the Company’s Level 3 financial instruments carried at fair value on a recurring basis during second quarter 2026, second quarter 2025, six months 2026 and six months 2025.

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

First Quarter 2026

Second Quarter 2026

Fixed-Maturity Securities, Available-for-Sale

1 unchanged sentence

Securities Fixed-Maturity Securities, Trading Funds Withheld FG VIEs’

(in millions)

Fair value as of March 31, 2026 $ 10 $ 162 $ 140 $ 429 $ 8 $ 296 $ 146 $ 30

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

Net income (loss) — 1 (1) 2 (1) 2 (1) — 4 (6) 3 (2) ( 8 ) (3)

Other comprehensive income (loss) — ( 3 ) 17 20 — — — —

Purchases — — 2 48 — — — —

Settlements — — ( 6 ) ( 36 ) ( 4 ) ( 4 ) ( 6 ) —

Deconsolidations — — — — — — — —

Fair value as of June 30, 2026 $ 10 $ 160 $ 155 $ 463 $ 4 $ 296 $ 143 $ 22

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2026 included in:

Earnings $ ( 1 ) (9) $ 4 (6) $ 2 (2) $ ( 8 ) (3)

OCI $ — $ ( 3 ) $ 17 $ 20 $ —

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

Second Quarter 2026

Credit Derivative

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

(in millions)

Fair value as of March 31, 2026 $ ( 16 ) $ ( 152 )

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

Net income (loss) 2 (6) ( 2 ) (2)

Other comprehensive income (loss) — 2

Settlements — 5

Fair value as of June 30, 2026 $ ( 14 ) $ ( 147 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2026 included in:

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Second Quarter 2025

Fixed-Maturity Securities, Available-for-Sale

Subdivisions Corporate RMBS Asset-

Securities Fixed-Maturity Securities, Trading FG VIEs’

Assets Assets of CIVs Other

(in millions)

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

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

Net income (loss) 2 (1) — 1 (1) 11 (1) — 4 (2) 3 (4) ( 1 ) (3)

Other comprehensive income (loss) — 10 4 10 — — — —

Purchases — 69 — — — — — —

Sales — — — ( 3 ) — — — —

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

Consolidations — — — — — 9 — —

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

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

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

OCI $ — $ 10 $ 4 $ 10 $ —

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

Second Quarter 2025

Credit Derivative

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

(in millions)

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

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

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

Other comprehensive income (loss) — 1

Settlements — 4

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

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

Six Months 2026

Fixed-Maturity Securities, Available-for-Sale

Subdivisions Corporate RMBS Asset-

Securities Fixed-Maturity Securities, Trading Funds Withheld FG VIEs’

Assets Assets of CIVs Other

(in millions)

Fair value as of December 31, 2025 $ 10 $ 168 $ 144 $ 511 $ 4 $ — $ 150 $ 167 $ 24

7 unchanged sentences

Transfers into Level 3 — — — — 5 — — — —

Fair value as of March 31, 2026 $ 10 $ 162 $ 140 $ 429 $ 8 $ 296 $ 146 $ — $ 30

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2026 included in:

Fair value as of June 30, 2026 $ 10 $ 160 $ 155 $ 463 $ 4 $ 296 $ 143 $ — $ 22

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2026 included in:

Earnings $ ( 1 ) (9) $ 7 (6) $ 2 (2) $ — $ ( 2 ) (3)

1 unchanged sentence

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

First Quarter 2026

Six Months 2026

Credit Derivative

6 unchanged sentences

Settlements ( 2 ) 8

Fair value as of March 31, 2026 $ ( 16 ) $ ( 152 )

Change in unrealized gains (losses) related to financial instruments held as of March 31, 2026 included in:

Fair value as of June 30, 2026 $ ( 14 ) $ ( 147 )

Change in unrealized gains (losses) related to financial instruments held as of June 30, 2026 included in:

Earnings $ — $ —

2 unchanged sentences

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

First Quarter 2025

Six Months 2025

Fixed-Maturity Securities, Available-for-Sale

10 unchanged sentences

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

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

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

Consolidations — — — — — 9 — —

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

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

Earnings $ — $ 5 (2) $ 22 (4) $ 1 (3)

1 unchanged sentence

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

First Quarter 2025

Six Months 2025

Credit Derivative

6 unchanged sentences

Settlements ( 105 ) 8

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

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

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

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

Earnings $ — $ ( 4 ) (2)

____________________

(1) Included in “net realized investment gains (losses)” and “net investment income.”

(1) Included in “net realized investment gains (losses)” or “net investment income.”

(2) Reported in “gains (losses) on financial guaranty variable interest entities.”

(3) Reported in “fair value gains (losses) on committed capital securities,” “net investment income” and “other income (loss).”

(3) Reported in “fair value gains (losses) on committed capital securities,” “net investment income” or “other income (loss).”

(4) Reported in “fair value gains (losses) on consolidated investment vehicles.”

9 unchanged sentences

Quantitative Information About Level 3 Fair Value Inputs

As of March 31, 2026

As of June 30, 2026

Financial Instrument Description Fair Value Assets (Liabilities)

80 unchanged sentences

Not Carried at Fair Value

FG Insurance Contracts

Fair value is based on management’s estimate of the consideration that would be paid to, or received from, a similarly rated FG insurance company to acquire the Company’s in-force book of FG insurance contracts.

Financial Guaranty Insurance Contracts

Fair value is based on management’s estimate of the consideration that would be paid to, or received from, a similarly rated financial guaranty insurance company to acquire the Company’s in-force book of financial guaranty insurance contracts.

It is based upon the ratio of current trends in premium pricing to risk-based expected loss for investment grade portions of the portfolio and stressed loss pricing for BIG transactions.

The Company classified the fair value of FG insurance contracts as Level 3.

The Company classified the fair value of financial guaranty insurance contracts as Level 3.

Policyholder Account Balances for Annuity Reinsurance Contracts

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Fair Value of Financial Instruments Not Carried at Fair Value

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

Amount Estimated

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Other assets (including other invested assets) (1) $ 200 $ 207 $ 90 $ 91

FG insurance contracts (1) ( 1,938 ) ( 1,664 ) ( 1,906 ) ( 1,485 )

Financial guaranty insurance contracts (2) ( 1,949 ) ( 1,824 ) ( 1,906 ) ( 1,485 )

Policyholder account balances for annuity reinsurance contracts ( 256 ) ( 266 ) — —

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____________________

(1) Carrying amount includes the assets and liabilities related to FG insurance contract premiums, losses and salvage and subrogation and other recoverables net of reinsurance.

(1) The Company’s other assets and other liabilities primarily consist of accrued interest and receivables for securities sold and payables for securities purchased, for which the carrying value approximates fair value.

Other assets as of June 30, 2026 also include loans issued by a U.K.

regulated utility and a U.S.

infrastructure project to which the Company has insured exposure.

Valuations for these loans were based on either observed market pricing of comparable securities or a discounted cash flow analysis using market-derived spread assumptions.

The Company classified the fair value of loans as Level 3 in the fair value hierarchy.

(2) Carrying amount includes the assets and liabilities related to financial guaranty insurance contract premiums, losses and salvage and subrogation and other recoverables net of reinsurance.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

AGL is a tax resident in the U.K.

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Assured Life Re, another Bermuda-domiciled company, plans to elect under Internal Revenue Code Section 953(d) to be taxed as a U.S.

domestic corporation beginning with the 2026 tax

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

As a result of this election, the Company accrues and records U.S.

federal income taxes related to Assured Life Re starting in first quarter 2026.

domestic corporation beginning with the 2026 tax year.

As a result of this election, the Company started accruing and recording U.S.

federal income taxes related to Assured Life Re in the first quarter of 2026.

In July 2023, the U.K.

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

The Company does not expect it to have a material impact.

The Company does not expect it to have a material impact on its financial condition or results of operation.

Finance Act 2026, enacted on March 18, 2026, clarified that certain pre-regime deferred taxes are not considered covered taxes for purposes of the Pillar Two global minimum tax framework, with the amendments effective for accounting periods ending on or after July 21, 2025.

As a result of this enactment, the Company revised its 2025 global minimum tax calculation to exclude certain Bermuda pre-regime deferred tax assets and liabilities arising from the introduction of Bermuda’s corporate income tax on January 1, 2025, and recorded a discrete tax benefit of $ 33 million in first quarter 2026.

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

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marginal corporate tax rate of 25 %.

The Company’s effective tax rate was ( 31.5 )% and 18.9 % for first quarter 2026 and first quarter 2025, respectively.

The effective tax rates are different from the expected tax provision (benefit) primarily due to tax law changes to the Pillar Two global minimum tax for 2025 recognized in 2026 of $ 33 million, a tax benefit recognized upon Assured Life Re’s change in tax status effective for the 2026 tax year, and a tax benefit for U.S.

tax-exempt interest.

In addition, first quarter 2026 and first quarter 2025 included the global minimum tax.

During 2025, the IRS closed the audit of AGUS’ 2018 and 2019 tax years with no impact to previously accrued taxes and opened an audit of AGUS’ 2021 tax year.

As of March 31, 2026, AGUS had open tax years with the IRS for 2021 forward.

As of March 31, 2026, Assured Guaranty Overseas US Holdings Inc.

The Company’s effective tax rate was 18.0 %, 20.9 %, ( 9.9 )% and 19.7 % for second quarter 2026, second quarter 2025, six months 2026 and six months 2025, respectively.

The effective tax rate for six months 2026 is different from the expected tax provision (benefit) primarily due to tax law changes to the Pillar Two global minimum tax for 2025 recorded in the first

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

quarter of 2026 of $ 33 million, a tax benefit recognized upon Assured Life Re’s change in tax status effective for the 2026 tax year, as well as a tax benefit for U.S.

tax-exempt interest in each period.

During 2025, the Internal Revenue Service (IRS) closed the audit of AGUS’ 2018 and 2019 tax years with no impact to previously accrued taxes and opened an audit of AGUS’ 2021 tax year.

As of June 30, 2026, AGUS had open tax years with the IRS for 2021 forward.

As of June 30, 2026, Assured Guaranty Overseas US Holdings Inc.

had open tax years with the IRS for 2022 forward and is not currently under audit.

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tax returns along with issuing inquires into AGUK, Assured Guaranty (UK) Services Limited and Assured Guaranty Finance Overseas Ltd.’s 2023 U.K.

In March 2026, HMRC closed the audit of the Company’s 2021, 2022 and 2023

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

inquiries with no impact to previously accrued taxes.

As of March 31, 2026, the Company had open tax years with HMRC for 2024 forward;

In March 2026, HMRC closed the audit of the Company’s 2021, 2022 and 2023 inquiries with no impact to previously accrued taxes.

As of June 30, 2026, the Company had open tax years with HMRC for 2024 forward;

AGUK, Assured Guaranty (UK) Services Limited and Assured Guaranty Finance Overseas Ltd.

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and the Company’s other U.K.

subsidiaries had open tax year with HMRC for 2024 forward.

subsidiaries had open tax years with HMRC for 2024 forward.

The Company’s French subsidiary is not currently under examination and has open tax years of 2021 forward.

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

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

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

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

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

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Shareholders’ Equity

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Changes in Accumulated Other Comprehensive Income (Loss) by Component

First Quarter 2026

Second Quarter 2026

Net Unrealized Gains (Losses) on Investments with:

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(in millions)

Balance, December 31, 2025 $ ( 48 ) $ ( 72 ) $ ( 17 ) $ — $ ( 35 ) $ 4 $ ( 168 )

Balance, March 31, 2026 $ ( 132 ) $ ( 116 ) $ ( 17 ) $ 17 $ ( 36 ) $ 4 $ ( 280 )

Other comprehensive income (loss) before reclassifications 2 27 — ( 8 ) — — 21

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( 8 ) ( 2 ) — — — — ( 10 )

Gains (losses) on FG VIEs — — ( 1 ) — — — ( 1 )

Total before tax

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Other comprehensive income (loss) 8 28 1 ( 8 ) — — 29

Balance, June 30, 2026 $ ( 124 ) $ ( 88 ) $ ( 16 ) $ 9 $ ( 36 ) $ 4 $ ( 251 )

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Second Quarter 2025

Net Unrealized Gains (Losses) on Investments with:

FG VIEs’ Liabilities with Recourse Cumulative

Adjustment Cash Flow

Hedge Total AOCI

No Credit Impairment Credit Impairment

(in millions)

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

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

Amounts reclassified from AOCI to:

Net realized investment gains (losses)

— ( 3 ) — — — ( 3 )

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

Total before tax

— ( 3 ) ( 1 ) — — ( 4 )

Tax (provision) benefit

Total amount reclassified from AOCI, net of tax — ( 2 ) ( 1 ) — — ( 3 )

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

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

Assured Guaranty Ltd.

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Changes in Accumulated Other Comprehensive Income (Loss) by Component

First Quarter 2025

Six Months 2026

Net Unrealized Gains (Losses) on Investments with:

FG VIEs’ Liabilities with Recourse Change in Discount Rates on the LFPB Cumulative

Adjustment Cash Flow

Hedge Total AOCI

No Credit Impairment Credit Impairment

(in millions)

Balance, December 31, 2025 $ ( 48 ) $ ( 72 ) $ ( 17 ) $ — $ ( 35 ) $ 4 $ ( 168 )

Other comprehensive income (loss) before reclassifications ( 81 ) ( 30 ) — 9 ( 1 ) — ( 103 )

Amounts reclassified from AOCI to:

Net realized investment gains (losses)

( 7 ) ( 18 ) — — — — ( 25 )

Gains (losses) on FG VIEs — — ( 1 ) — — — ( 1 )

Total before tax

( 7 ) ( 18 ) ( 1 ) — — — ( 26 )

Tax (provision) benefit

2 4 — — — — 6

Total amount reclassified from AOCI, net of tax ( 5 ) ( 14 ) ( 1 ) — — — ( 20 )

Other comprehensive income (loss) ( 76 ) ( 16 ) 1 9 ( 1 ) — ( 83 )

Balance, June 30, 2026 $ ( 124 ) $ ( 88 ) $ ( 16 ) $ 9 $ ( 36 ) $ 4 $ ( 251 )

Changes in Accumulated Other Comprehensive Income (Loss) by Component

Six Months 2025

Net Unrealized Gains (Losses) on Investments with:

FG VIEs’ Liabilities with Recourse Cumulative

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( 6 ) ( 13 ) — — — ( 19 )

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

Total before tax

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

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

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

Share Repurchases

The following table presents information regarding AGL’s repurchases of its common shares during the period from January 1, 2025 through May 6, 2026.

The following table presents information regarding AGL’s repurchases of its common shares during the period from January 1, 2025 through August 5, 2026.

Assured Guaranty Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited), Continued

Share Repurchases

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2026 (January 1 - March 31) 881,981 75 85.58

2026 (April 1 - May 6) 349,639 29 82.67

2026 (April 1 - June 30) 553,564 45 80.68

2026 (July 1 - August 5) 123,333 10 83.78

Total 2026 1,558,878 $ 130 $ 83.70

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(1) Excludes commissions.

As of May 6, 2026, AGL was authorized to repurchase an additional $ 147 million of its common shares.

As of August 5, 2026, AGL was authorized to repurchase an additional $ 121 million of its common shares.

The Board of Directors may modify, suspend or terminate the repurchase program at any time, and the program does not have a stated expiration date.

As part of its overall capital management strategy, the Company regularly evaluates the level of its share repurchase program on a quarter-to-quarter basis, including alternative uses of available capital.

The Company currently plans to reduce its share repurchases in order to use a portion of its available capital to support growth opportunities in its financial guaranty insurance and annuity reinsurance businesses, in addition to other strategic considerations.

As part of its overall capital management strategy, the Company evaluates on a quarterly basis planned uses of available capital, which may include growth opportunities in its financial guaranty insurance and annuity reinsurance businesses, maintaining a capital cushion to support its existing business and share repurchases.

The timing, form and amount of any future share repurchases will be determined at the Company’s discretion and will depend on various factors, including alternative uses for capital, the Company’s regulatory capital position, rating agency capital considerations, availability of cash at the parent company, market conditions and legal and regulatory requirements.

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Computation of Earnings Per Share

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions, except per share amounts)

15 unchanged sentences

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

What changed 10-Q

Item 1. Financial Statements