What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-08-07 compared with 2026-05-08 · 419 added, 275 removed, 1197 unchanged (37% of the section changed)

14 unchanged sentences

(v) developments in the world’s financial and capital markets, including stresses in banking institutions, and the possibility that increasing participation of unregulated financial institutions in these markets results in losses or lower valuations of assets, reduced liquidity and credit and/or contraction of these markets, that adversely affect repayment rates of insured obligors, Assured Guaranty’s insurance loss or recovery experience, or investments of Assured Guaranty;

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

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

(vii) the failure or ineffectiveness of Assured Guaranty’s risk mitigation strategies or activities, including distressed credit workouts, management of exposure limits, hedging activities, and the procurement of third-party reinsurance for insured exposures;

(viii) the possibility that investments made by Assured Guaranty for its investment portfolio do not result in the benefits anticipated or subject Assured Guaranty to negative consequences;

(ix) the possibility that Assured Guaranty’s strategies or strategic transactions do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences;

(x) the impact of the announcement of Assured Guaranty’s strategies on Assured Guaranty and the perception of Assured Guaranty by its investors, regulators, rating agencies, and employees;

(xi) risks related to the expansion into annuity reinsurance and the launching of Assured Life Reinsurance Ltd.;

(xii) the failure of Assured Guaranty to successfully integrate acquired businesses, including Assured Guaranty’s acquisition of Warwick Company (UK) Limited;

(xiii) loss of key personnel;

(xiv) the possibility that longevity, mortality, lapse, withdrawal or surrender experience in Assured Guaranty’s annuity reinsurance business is less favorable than the rates Assured Guaranty used in pricing its reinsurance agreements;

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

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

(xvii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing, changes in applicable laws or regulations or other factors will result in credit losses or liquidity claims on obligations that Assured Guaranty insures or reinsures;

(xviii) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures;

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

(xx) increased competition, including from new market entrants and alternative forms of credit protection;

(xxi) any rating agency action in relation to Assured Guaranty, and/or of any securities Assured Guaranty has issued, and/or of transactions that Assured Guaranty has insured, including rating agency requirements to hold additional capital against insured exposures;

(viii) any rating agency action in relation to Assured Guaranty, and/or of any securities Assured Guaranty has issued, and/or of transactions that Assured Guaranty has insured, including requirements to maintain rating agency capital redundancy and to hold additional capital against certain insured exposures;

(ix) the possibility that investments made by Assured Guaranty for its investment portfolio do not result in the benefits anticipated or subject Assured Guaranty to negative consequences;

(x) the possibility that Assured Guaranty’s strategies or strategic transactions do not result in the benefits anticipated and/or subject Assured Guaranty to negative consequences;

(xi) the impact of the announcement of Assured Guaranty’s strategies on Assured Guaranty and the perception of Assured Guaranty by its investors, regulators, rating agencies, and employees;

(xii) risks related to the expansion into annuity reinsurance and the launching of Assured Life Reinsurance Ltd.;

(xiii) the failure of Assured Guaranty to successfully integrate acquired businesses, including Assured Guaranty’s acquisition of Warwick Company (UK) Limited;

(xiv) loss of key personnel;

(xv) the possibility that longevity, mortality, lapse, withdrawal or surrender experience in Assured Guaranty’s annuity reinsurance business is less favorable than the rates Assured Guaranty used in pricing its reinsurance agreements;

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

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

(xviii) the possibility that budget or pension shortfalls, difficulties in obtaining additional financing, changes in applicable laws or regulations or other factors will result in credit losses or liquidity claims on obligations that Assured Guaranty insures or reinsures;

(xix) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures;

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

(xxi) increased competition, including from new market entrants and alternative forms of credit protection;

(xxii) the inability of Assured Guaranty to access capital on acceptable terms or have sufficient liquidity to cover unexpected stress;

5 unchanged sentences

(xxviii) natural or man-made catastrophes;

(xxix) the impact of climate change on Assured Guaranty’s business and regulatory actions taken related to such risk;

(xxx) other risk

factors identified in AGL’s filings with the U.S.

(xxix) the impact of climate change on Assured

Guaranty’s business and regulatory actions taken related to such risk;

(xxx) other risk factors identified in AGL’s filings with the U.S.

Securities and Exchange Commission;

20 unchanged sentences

The Company’s Corporate division and other activities (including financial guaranty variable interest entities (FG VIEs) and consolidated investment vehicles (CIVs)) are presented separately.

In the Financial Guaranty segment (which, prior to the three-month period ended March 31, 2026 (first quarter 2026), was called the Insurance segment), the Company provides credit protection products to the United States (U.S.) and non-U.S.

In the Financial Guaranty segment (which, prior to March 31, 2026, was called the Insurance segment), the Company provides credit protection products to the U.S.

public finance (including infrastructure) and structured finance markets.

1 unchanged sentence

(Assured Life Re) and other subsidiaries acquired in the acquisition of Assured Life Re.

The Company participates in the asset management business through its ownership interest in Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment management affiliates (together with Sound Point, LP, Sound Point).

The Company participates in the asset management business through its ownership interest in Sound Point Capital Management, LP (Sound Point, LP) and certain of its investment

management affiliates (together with Sound Point, LP, Sound Point).

Financial Statements, Note 1.

Business and Basis of Presentation.

Business and Basis of Presentation and Note 9.

The Corporate division primarily consists of the results of holding companies that have issued public equity or debt.

3 unchanged sentences

Financial Strength Ratings

Demand for the financial guaranties issued by the Company’s financial guaranty (FG) insurance subsidiaries may be impacted by changes in the credit ratings assigned to them by the rating agencies.

The financial strength ratings (or similar ratings) assigned to AGL’s FG insurance subsidiaries, along with the date of the most recent rating action (or confirmation) by the rating agency assigning the rating, are shown in the table below.

Demand for the financial guaranties issued by the Company’s financial guaranty insurance subsidiaries may be impacted by changes in the credit ratings assigned to them by the rating agencies.

The financial strength ratings (or similar ratings) assigned to AGL’s financial guaranty insurance subsidiaries, along with the date of the most recent rating action (or confirmation) by the rating agency assigning the rating, are shown in the table below.

S&P KBRA Moody’s A.M.

19 unchanged sentences

For example, the U.S.

Supreme Court held on February 20, 2026, that the International Emergency Economic Powers Act (IEEPA) does not authorize the President of the U.S.

Supreme Court held on February 20, 2026 that the International Emergency Economic Powers Act does not authorize the President of the U.S.

to impose tariffs.

However, the U.S.

administration has indicated that tariffs found to be illegal by the U.S.

Supreme Court will be replaced with alternative tariffs.

However, following this decision, the U.S.

administration implemented alternative tariffs effective July 24, 2026, and tariff levels and related trade policies continue to evolve.

trading partners have announced or imposed tariffs or other trading restrictions in response to U.S.

These actions by the U.S.

and its trading partners have disrupted international trade and are negatively impacting the U.S.

and global economies.

According to the first quarter 2026 advance estimate released by the U.S.

Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 2.0% in first quarter 2026, compared to a real GDP increase of 0.5% in the fourth quarter of 2025.

At the end of March 2026, the U.S.

unemployment rate, seasonally adjusted, stood at 4.3%, slightly lower than where it started the year at 4.4%.

The Company believes a more robust economy makes it less likely that obligors whose obligations it guarantees in its FG business will default, while a recession, if it were to occur, would make it more likely that obligors whose obligations it guarantees will default.

According to the advance estimate released by the U.S.

Bureau of Economic Analysis, real gross domestic product (GDP) increased at an annual rate of 1.5% in the three-month period ended June 30, 2026 (second quarter 2026), compared to a real GDP increase of 2.1% in the first quarter of 2026.

At the end of June 2026, the U.S.

unemployment rate, seasonally adjusted, stood at 4.2%, lower than where it started the year at 4.4%.

The Company believes a more robust economy makes it less likely that obligors whose obligations it guarantees in its financial guaranty business will default, while a recession, if it were to occur, would make it more likely that obligors whose obligations it guarantees will default.

However, a recession may also cause credit spreads to widen as investors seek security, which tends to create new business opportunities for the Company in its financial guaranty business.

1 unchanged sentence

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

before seasonal adjustment for the 12-month period ending March 2026, as measured by the Consumer Price Index for All Urban Consumers, was 3.3%, as compared to 2.4% for the 12-month period ending March 2025.

According to the United Kingdom (U.K.) Office for National

Statistics, the Consumer Prices Index including owner occupiers’ housing costs rose 3.4% for the 12 months through March 2026, the same as for the 12 months through March 2025.

The most recent events around the Strait of Hormuz have caused oil prices to rise, which the Company believes has increased upward pressure on inflation, especially in the U.K.

before seasonal adjustment for the 12-month period ending June 2026, as measured by the Consumer Price Index for All Urban Consumers, was 3.5%, as compared to 2.7% for the 12-month period ending June 2025.

According to the United Kingdom (U.K.) Office for National Statistics, the Consumer Prices Index including owner occupiers’ housing costs rose 2.8% for the 12 months through June 2026, lower than for the 12 months through June 2025.

Recent increases in oil prices associated with geopolitical developments in the Middle East have contributed to market concerns regarding future inflation, particularly in economies that are more exposed to imported energy costs, including the U.K.

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

3 unchanged sentences

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

affects reported net par outstanding for certain U.K.

exposures with $24.0 billion of net par outstanding as of March 31, 2026, and also affects projected future installment premiums on the portion of such exposure that pays at least a portion of the premium on an installment basis over the term of the exposure.

affects the Company’s reported net par outstanding for certain U.K.

exposures with $24.0 billion of net par outstanding as of June 30, 2026, and also affects projected future installment premiums on the portion of such exposure that pays at least a portion of the premium on an installment basis over the term of the exposure.

The Company’s U.K.

bulk purchase annuity (pension risk transfer, PRT) reinsurance business is also subject to U.K.

bulk purchase annuity (pension risk transfers, PRT) reinsurance business is also subject to U.K.

inflation, as the annuity payments under such transactions are typically adjusted for changes in U.K.

8 unchanged sentences

From September 2024 through December 2025, the Federal Open Market Committee (FOMC) lowered the federal funds rate from a target range of 5.25% to 5.50% to a range of 3.50% to 3.75%.

Most recently, at its April 2026 meeting, the FOMC held the federal funds rate at a target range of 3.50% to 3.75%, stating that it is strongly committed to supporting maximum employment and returning inflation to its 2% objective.

Most recently, at its July 2026 meeting, the FOMC held the federal funds rate at a target range of 3.50% to 3.75%, stating that it is strongly committed to supporting maximum employment and returning inflation to its 2% objective.

From 2024, the Bank of England’s Monetary Policy Committee (MPC) took actions similar to those of the FOMC to spur economic growth.

2 unchanged sentences

In 2025 and early 2026, with inflation being closer to the MPC’s target level and economic growth slowed, the MPC further lowered the Bank Rate several times.

As of April 30, 2026, the Bank Rate stood at 3.75%, down from a high of 5.25% in mid-2024.

As of July 30, 2026, the Bank Rate stood at 3.75%, down from a high of 5.25% in mid-2024.

Recent increases in oil prices may contribute to higher inflation expectations, which could influence future Bank of England policy decisions and place upward pressure on U.K.

gilt yields, as longer-term rates reflect, among other factors, market expectations regarding future short-term rates and the term premium investors require to hold longer-dated securities.

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

1 unchanged sentence

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

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

The most recent events around the Strait of Hormuz have caused oil prices to rise, which the Company believes has increased upward pressure on interest rates, especially in the U.K.

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

Credit Spreads.

1 unchanged sentence

public finance.

The MMD rate averaged 4.30% for the quarter ended March 2026, higher than the 4.18% average rate for the quarter ended December 2025 and higher than the 4.04% average rate for the quarter ended March 2025.

Meanwhile, the difference, or credit spread, between the 30-year BBB rated general obligation relative to the 30-year AAA MMD averaged 84 basis points (bps) for the quarter ended March 2026, which is narrower compared to the 88 bps average for the quarter ended December 2025 and narrower compared to the 90 bps average for the quarter ended March 2025.

The MMD rate averaged 4.33% for second quarter 2026, slightly higher to the 4.30% average rate for the quarter ended March 2026 and lower than the 4.47% average rate for the quarter ended June 2025.

Meanwhile, the difference, or credit spread, between the 30-year BBB rated general obligation relative to the 30-year AAA MMD averaged 83.7 basis points (bps) for second quarter 2026, which is slightly narrower compared to the 84.3 bps average for the quarter ended March 2026 and narrower compared to the 90.0 bps average for the quarter ended June 2025.

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

Residential Mortgage Rates .

According to Freddie Mac, the 30-year fixed-rate mortgage rate averaged 6.38% for the week ending March 26, 2026, lower than the 30-year mortgage rate average of 6.65% from one year ago.

The National Association of Realtors reported that there was a 3.6% decrease in year-over-year existing-home sales from March 2025 to March 2026, and that the median existing-home sales price increased 1.4% from March 2025 ($403,100) to March 2026 ($408,800).

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

According to Freddie Mac, the 30-year fixed-rate mortgage rate averaged 6.49% for the week ending June 25, 2026, lower than the 30-year mortgage rate average of 6.77% from one year ago.

The National Association of Realtors reported that there was a 2.8% increase in year-over-year existing-home sales from June 2025 to June 2026, and that the median existing-home sales price increased 1.8% from June 2025 ($432,700) to June 2026 ($440,600).

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

Foreign Exchange Rates .

For the quarter ended March 31, 2026, the exchange rates between the pound sterling and the U.S.

For second quarter 2026, the exchange rates between the pound sterling and the U.S.

dollar and between the euro and the U.S.

dollar traded in a tight range, both finishing the quarter near where they started.

dollar traded within relatively narrow ranges and finished the quarter at levels generally consistent with where they began.

The Company is subject to foreign exchange risk in several areas of its business.

2 unchanged sentences

Second, PRT reinsurance liabilities are denominated in pound sterling, along with the assets (after hedging) supporting this business.

The impact of fluctuations in the pound sterling/U.S.

dollar exchange rate on premiums receivable, financial guaranty loss reserves and PRT liabilities, along with any cross-currency derivatives, is reflected in the Company's consolidated statements of operations, while the impact of fluctuations in the pound sterling/U.S.

dollar exchange rate on the Company’s investments classified as available-for-sale is reported in other comprehensive income.

The impact of fluctuations in exchange rates on premiums receivable, financial guaranty loss reserves and PRT liabilities, along with any cross-currency derivatives, is reflected in the Company's consolidated statements of operations, while the impact of fluctuations in exchange rates on the Company’s investments classified as available-for-sale is reported in other comprehensive income.

Key Business Strategies

5 unchanged sentences

Insurance and Asset Management Growth

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

The Company seeks to grow its core financial guaranty insurance business through new business production in established sectors and jurisdictions and by entering into new markets, lines and classes of business.

In addition, the Company seeks to leverage its core credit competencies by expanding its business into additional revenue streams, such as annuity reinsurance and asset management, with the objective of diversifying its revenue streams and growing its net income.

FG Insurance Portfolio

The Company seeks to grow its FG insurance portfolio through new business production in each of its markets:

Financial Guaranty Insurance Portfolio

The Company seeks to grow its financial guaranty insurance portfolio through new business production in each of its markets:

public finance (including infrastructure) and structured finance.

From time to time, the Company also considers acquiring 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 below-investment-grade (BIG) exposures, as a whole in the context of the proposed transaction.

The Company believes high-profile defaults by municipal obligors, such as the Commonwealth of Puerto Rico (Puerto Rico), Detroit, Michigan and Stockton, California as well as events such as the COVID-19 pandemic have led to increased awareness of the value of bond insurance and stimulated demand for the product.

6 unchanged sentences

municipal credit spreads from when the financial crisis began in 2008 through early 2020 dampened demand for bond insurance compared with the levels before the financial crisis.

After the onset of the COVID-19 pandemic in early 2020, credit spreads initially widened as a result of market concerns about the impact of the COVID-19 pandemic on some municipal credits, thereby improving demand for FG insurance even in a low interest rate environment, before narrowing again in 2022.

After the onset of the COVID-19 pandemic in early 2020, credit spreads initially widened as a result of market concerns about the impact of the COVID-19 pandemic on some municipal credits, thereby improving demand for financial guaranty insurance even in a low interest rate environment, before narrowing again in 2022.

The Company believes that, over time, wider credit spreads may improve demand for bond insurance.

1 unchanged sentence

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

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

In the infrastructure market, the Company’s financial

guaranty can enhance the insured obligation’s rating, lower the cost of long-term funding and enhance the liquidity and transferability of debt obligations.

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

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

public finance.

2 unchanged sentences

Based on Sale Date

First Quarter 2026 First Quarter 2025 (2) Year Ended December 31, 2025

Six Months 2026 (2) Six Months 2025 (2) Year Ended December 31, 2025

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

16 unchanged sentences

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

(2) The three-month period ended March 31, 2025 (first quarter 2025).

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

(2) Six-month period ended June 30, 2026 (six months 2026) and six-month period ended June 30, 2025 (six months 2025).

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

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

12 unchanged sentences

The Company participates in the asset management business through its ownership interest in Sound Point, and does not directly manage investments for third parties.

The Company’s ownership interest in Sound Point furthers its growth strategy

of participating in a diversifying fee-based earnings stream independent of the risk-based premiums generated by its FG business.

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

Loss Mitigation

6 unchanged sentences

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

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

Financial Statements, Note 8.

Derivatives, for additional information.

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

The fair value of Loss Mitigation Securities as of March 31, 2026 (excluding the value of the Company’s insurance) was $135 million.

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

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

The fair value of Loss Mitigation Securities as of June 30, 2026 (excluding the value of the Company’s insurance) was $151 million.

The Company is, and for over a decade has been, working with the servicers of some of the U.S.

12 unchanged sentences

Capital Management

The Company’s capital management strategy is designed to efficiently allocate and utilize capital across the Assured Guaranty group in order to optimize outcomes for rating agency assessments, regulatory compliance and the Company’s own strategic initiatives and risk management requirements.

The Company believes this disciplined approach to capital management

supports the long-term stability and strength of Assured Guaranty, enabling it to advance its financial guaranty, annuity reinsurance and asset management businesses, and other corporate strategies.

The Company’s capital management strategy is designed to efficiently allocate and utilize capital across the Assured Guaranty group in order to enhance outcomes for rating agency assessments, regulatory compliance and the Company’s own strategic initiatives and risk management requirements.

The Company believes this disciplined approach to capital management supports the long-term stability and strength of Assured Guaranty, enabling it to advance its financial guaranty, annuity reinsurance and asset management businesses, and other corporate strategies.

Assured Guaranty seeks to enhance financial flexibility and resiliency by proactively managing its capital and aligning resources with its business objectives and stakeholder interests.

Since the launch of its share repurchase program in 2013, the Company has returned $6.0 billion of excess capital to its shareholders by repurchasing 81% of its common shares outstanding at the beginning of the program.

Since the launch of its share repurchase program in 2013, the Company has returned $6.0 billion of capital to its shareholders by repurchasing 81% of its common shares outstanding at the beginning of the program.

Summary of Share Repurchases

4 unchanged sentences

2026 (January 1 - March 31) 75 0.882 85.58

2026 (April 1 - May 6) 29 0.35 82.67

2026 (April 1 - June 30) 45 0.554 80.68

2026 (July 1 - August 5) 10 0.123 83.78

Cumulative repurchases since the beginning of 2013 $ 5,993 $ 157.650 38.01

1 unchanged sentence

(1) Excludes commissions.

As of May 6, 2026, the Company was authorized to repurchase an additional $147 million of its common shares.

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 to a target of $30 million of its common shares over the next three months 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 of August 5, 2026, the Company was authorized to repurchase an additional $121 million of its common shares.

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.

Any such share repurchases may be made from time to time through open‑market purchases or privately negotiated transactions, and there can be no assurance of the amount of share repurchases that will occur in the future.

As of March 31, 2026, the estimated accretive effect of the cumulative repurchases of common shares since the beginning of 2013 was approximately:

As of June 30, 2026, the estimated accretive effect of the cumulative repurchases of common shares since the beginning of 2013 was approximately:

$69.85 per share in shareholders’ equity attributable to AGL, $72.75 per share in adjusted operating shareholders’ equity and $119.45 per share in adjusted book value (ABV).

11 unchanged sentences

Financial Results

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions, except per share amounts)

15 unchanged sentences

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

79 64 152 103

Gross par written 8,351 10,396 15,862 15,398

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

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

Amount Per Share Amount Per Share

10 unchanged sentences

Condensed Consolidated Results of Operations

Three Months Ended March 31,

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

2026 2025 2026 2025

(in millions)

26 unchanged sentences

Net income (loss) attributable to Assured Guaranty Ltd.

$ 39 $ 103 $ 127 $ 279

Effective tax rate 18.0 % 20.9 % (9.9) % 19.7 %

First Quarter 2026 Compared with First Quarter 2025

Net income attributable to AGL for first quarter 2026 was lower compared with first quarter 2025 primarily due to the following:

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

• foreign exchange losses on remeasurement of $19 million in first quarter 2026, compared with gains of $37 million in first quarter 2025, and

• lower equity in earnings of investees in first quarter 2026, primarily due to losses generated by the Company’s investment in a collateralized loan obligation (CLO) fund.

Second Quarter 2026 Compared with Second Quarter 2025

Net income attributable to AGL for second quarter 2026 was lower compared with the three-month period ended June 30, 2025 (second quarter 2025) primarily due to the following:

• foreign exchange losses on remeasurement of $2 million in second quarter 2026, compared with gains of $79 million in second quarter 2025, and

• lower equity in earnings of investees in second quarter 2026, primarily due to losses generated by the Company’s investment in a collateralized loan obligation (CLO) fund.

These decreases were partially offset by:

• a discrete tax benefit of $33 million in first quarter 2026 resulting from the enactment of the U.K.

Finance Act 2026, which clarified that certain Bermuda pre-regime deferred taxes are excluded from covered taxes under the Pillar Two global minimum tax framework,

• the increase of $25 million in performance fees (net of related expenses) due to the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund in first quarter 2026, and

• a lower loss and LAE in first quarter 2026 of $17 million, compared with a loss and LAE of $40 million in first quarter 2025.

• a loss and LAE in second quarter 2026 of $4 million compared with a loss and LAE of $28 million in second quarter 2025.

Six Months 2026 Compared with Six Months 2025

Net income attributable to AGL for six months 2026 was lower compared with six months 2025 primarily due to the following:

• foreign exchange losses on remeasurement of $21 million in six months 2026, compared with gains of $116 million in six months 2025,

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

• a decrease of $36 million in equity in earnings of investees in six months 2026, primarily due to losses generated by the Company’s investment in a CLO equity fund.

These decreases were partially offset by:

• a lower loss and LAE in six months 2026 of $21 million, compared with a loss and LAE of $68 million in six months 2025,

• a discrete tax benefit of $33 million in the first quarter of 2026 resulting from the enactment of the U.K.

Finance Act 2026, which clarified that certain Bermuda pre-regime deferred taxes are excluded from covered taxes under the Pillar Two global minimum tax framework, and

• the increase of $21 million in performance fees (net of related expenses) due to the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund in the first quarter of 2026.

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

9 unchanged sentences

Pre-tax Income (Loss) by Tax Jurisdiction

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

$ (5) $ 10 $ (13) $ 1

$ 40 $ 96 $ 107 $ 290

Bermuda 17 28 27 74

2 unchanged sentences

Adjusted Operating Income

Adjusted operating income in first quarter 2026 was $115 million, compared with $162 million in first quarter 2025.

The decrease was primarily due to a $103 million gain related to the resolution of the LBIE litigation in first quarter 2025 and a decrease of $22 million of equity in earnings of investees in first quarter 2026, primarily due to losses generated by the Company’s investment in a CLO fund, offset in part by a $33 million discrete tax benefit resulting from the enactment of the U.K.

Finance Act 2026, a $25 million increase in performance fees, net of related expenses, due to the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund in first quarter 2026 and a $23 million decrease in loss expense in the public finance sector in first quarter 2026.

Adjusted operating income in second quarter 2026 was $55 million, compared with $50 million in second quarter 2025.

The increase was primarily due to lower loss expense of $24 million primarily related to the U.S.

public finance sectors and the increase of $14 million in net earned premiums and credit derivative revenues in second quarter 2026, partially offset by the decreases of $14 million in equity in earnings of investees, $9 million in foreign exchange remeasurement gains related primarily to cash and lower other income due primarily to $6 million of interest received on late financial guaranty premiums in second quarter 2025.

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

Adjusted operating income in six months 2026 was $170 million, compared with $212 million in six months 2025.

The decrease was primarily due to a $103 million gain related to the resolution of the LBIE litigation in six months 2025, a decrease of $36 million in equity in earnings of investees in six months 2026 primarily due to losses generated by the Company’s investment in a CLO equity fund, and lower other income due to $15 million recognized in six months 2025 associated with the workout and purchase of bonds issued by a U.K.

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

These decreases were offset in part by a $51 million decrease in loss expense in the public finance sector, a $33 million discrete tax benefit resulting from the enactment of the U.K.

Finance Act 2026, and a $21 million increase in performance fees, net of related expenses, due to the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund in six months 2026.

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

Book Value and ABV

Shareholders’ equity attributable to AGL as of March 31, 2026 decreased compared with December 31, 2025, primarily due to unrealized losses on the investment portfolio, share repurchases and dividends, partially offset by net income.

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

Shareholders’ equity attributable to AGL as of June 30, 2026 decreased compared with December 31, 2025, primarily due to unrealized losses on the investment portfolio, share repurchases and dividends, partially offset by net income.

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

ABV decreased primarily due to share repurchases, dividends and loss development, partially offset by adjusted operating income, GWP and the accretive effect of Assured Life Re Acquisition.

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

On a per share basis, shareholders’ equity attributable to AGL decreased primarily due to unrealized losses on the investment portfolio.

Adjusted operating shareholders’ equity and ABV increased as of March 31, 2026 compared with December 31, 2025, due, in part, to the accretive effect of the share repurchase program and Assured Life Re Acquisition.

On a per share basis, shareholders’ equity attributable to AGL, adjusted operating shareholders’ equity and ABV increased as of June 30, 2026 compared with December 31, 2025, due, in part, to the accretive effect of the share repurchase program and Assured Life Re Acquisition.

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

8 unchanged sentences

The Company rates all such insurance exposure investment grade.

The most recent events around the Strait of Hormuz have caused oil prices to rise, which the Company believes has increased upward pressure on interest rates and inflation, especially in the U.K.

The most recent events around the Strait of Hormuz have caused oil prices to rise, which the Company believes has contributed to market concerns regarding future inflation, particularly in economies that are more exposed to imported energy costs, including the U.K.

For information on the impact on the Company of any future increases in interest rates and inflation, see “ — Overview — Economic Environment — Inflation" and " — Interest Rates.”

3 unchanged sentences

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

In fact, the Company’s direct insurance exposure to Eastern Europe generally is limited to $196 million in net par outstanding as of March 31, 2026, consisting of the sovereign debt of Poland.

In fact, the Company’s direct insurance exposure to Eastern Europe generally is limited to $191 million in net par outstanding as of June 30, 2026, consisting of the sovereign debt of Poland.

The Company rates this exposure investment grade.

4 unchanged sentences

In light of this development, the Company’s surveillance and treasury functions have reviewed the Company’s insurance and investment portfolios, respectively, and have identified no direct exposure to Venezuela.

The Company’s direct insurance exposure to South America is generally limited to $132 million in net par outstanding as of March 31, 2026, consisting of infrastructure finance in Colombia and Chile.

The Company’s direct insurance exposure to South America is generally limited to $141 million in net par outstanding as of June 30, 2026, consisting of infrastructure finance located primarily in Colombia.

The Company rates these exposures investment grade.

12 unchanged sentences

• Assets and liabilities of FG VIEs;

• Derivatives;

• Impairments of equity method investments and credit allowances for financial instruments;

1 unchanged sentence

See Part II, Item 8, Financial Statements and Supplementary Data, Note 1, Business and Basis of Presentation, of the Company’s 2025 Annual Report on Form 10-K for the Company’s significant accounting policies which includes a reference to the applicable note where further details regarding the significant estimates and assumptions are provided, as well as Part II, Item 7A, Quantitative and Qualitative Disclosures About Market Risk, of the Company’s 2025 Annual Report on Form 10-K for further details regarding the sensitivity analyses.

In addition, see Item 1.

Financial Statements, Note 2.

Assured Life Re Acquisition, and Note 7.

Annuity Reinsurance, for further details regarding the significant estimates and assumptions, as well as Item 3, Quantitative and Qualitative Disclosures About Market Risk, for further details regarding the sensitivity analyses related to Assured Life Re.

Results of Operations by Segment

4 unchanged sentences

Financial Guaranty Segment Results

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

17 unchanged sentences

Net Earned Premiums and Credit Derivative Revenues

Premiums are earned over the contractual lives, or in the case of insured obligations backed by homogeneous pools of assets, the remaining expected lives, of FG insurance contracts.

Premiums are earned over the contractual lives, or in the case of insured obligations backed by homogeneous pools of assets, the remaining expected lives, of financial guaranty insurance contracts.

The Company periodically estimates remaining expected lives of its insured obligations backed by homogeneous pools of assets and makes prospective adjustments for such changes in expected lives.

10 unchanged sentences

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

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

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

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

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

The Company accounts for a financial guaranty modification by derecognizing the existing insurance balances of the original financial guaranty insurance contract and recording a replacement policy based on the modified terms.

Financial Guaranty Segment

Net Earned Premiums and Credit Derivative Revenues

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

Net earned premiums:

FG insurance:

Financial guaranty insurance:

Public finance

12 unchanged sentences

(1) Includes accretion of discount.

Net earned premiums and credit derivative revenues decreased in first quarter 2026 compared with first quarter 2025 primarily due to credit derivative revenues related to the resolution of the LBIE litigation in first quarter 2025 (see Item 1.

Financial Statements, Note 8.

Derivatives) and negative refundings, terminations and modifications in first quarter 2026, which was a result of a significant modification of a large long-dated financial guaranty transaction, which was accounted for as an

extinguishment of the old policy and a recording of the corresponding replacement policy.

As of March 31, 2026, $3.6 billion of net deferred premium revenue remained to be earned over the life of the FG insurance contracts.

Net earned premiums and credit derivative revenues increased in second quarter 2026 compared with second quarter 2025 primarily due to higher refundings and higher scheduled structured finance net earned premiums, which are primarily attributable to continued growth in shorter duration strategies like fund finance.

Net earned premiums and credit derivative revenues decreased in six months 2026 compared with six months 2025 primarily due to credit derivative revenues related to the resolution of the LBIE litigation in six months 2025, lower refundings due to negative refundings, terminations and modifications in the first quarter of 2026, which was a result of a significant modification of a large long-dated financial guaranty transaction, which was accounted for as an extinguishment of the old policy and a recording of the corresponding replacement policy, offset in part by higher refundings in second quarter 2026 and higher scheduled premiums.

As of June 30, 2026, $3.6 billion of net deferred premium revenue remained to be earned over the life of the financial guaranty insurance contracts.

New Business Production

Gross Written Premiums and New Business Production

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

Public finance—U.S.

$ 54 $ 73 $ 102 $ 98

Public finance—non-U.S.

Structured finance—U.S.

(2) 11 (1) 17 6

Structured finance—non-U.S.

1 unchanged sentence

Public finance—U.S.

$ 58 $ 49 $ 106 $ 74

Public finance—non-U.S.

6 unchanged sentences

Public finance—non-U.S.

362 275 454 472

Structured finance—U.S.

(2) 399 5 1,933 126

Structured finance—non-U.S.

1,486 1,255 3,414 1,670

Total gross par written $ 8,351 $ 10,396 $ 15,862 $ 15,398

1 unchanged sentence

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

See “— Non-GAAP Financial Measures — PVP or Present Value of New Business Production.” PVP was discounted at 4.5% and 5.0% in first quarter 2026 and first quarter 2026, respectively.

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

FG insurance and reinsurance GWP includes:

See “— Non-GAAP Financial Measures — PVP or Present Value of New Business Production.” PVP was discounted at 4.5% in both second quarter 2026 and six months 2026.

PVP was discounted at 5.0% in both second quarter 2025 and six months 2025.

(2) Second quarter 2026 and six months 2026 include $12 million of GWP, $9 million of PVP and $395 million of gross par written for a transaction in which the Company’s exposure is to U.S.

government treasury securities.

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

Financial guaranty insurance and reinsurance GWP includes:

(i) amounts collected upfront on new business written;

3 unchanged sentences

Credit derivatives are accounted for at fair value and therefore not included in GWP.

PVP and gross par written include the present value of future gross revenues and exposure, respectively, associated with a financial guaranty written by the Company that, under GAAP, is accounted for under Accounting Standards Codification (ASC) 460, Guarantees .

The non-GAAP financial measure, PVP, includes upfront premiums and the present value of expected future installments on new business at the time of issuance, discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, for all contracts regardless of form or accounting model.

See “— Non-GAAP Financial Measures” below.

Second Quarter 2026

public finance GWP and PVP include transactions closed in both the primary and secondary markets.

public finance GWP and PVP were nearly double in first quarter 2026 compared with first quarter 2025, primarily due to healthcare and infrastructure finance transactions that were written in first quarter 2026.

While GWP and PVP both increased in first quarter 2026, compared with first quarter 2025, gross par written in first quarter 2026 decreased compared with first quarter 2025.

public finance GWP in second quarter 2026 decreased compared with second quarter 2025 due to additional installment premiums in second quarter 2025 on a transportation revenue transaction.

PVP increased in second quarter 2026 compared with second quarter 2025, primarily due to infrastructure finance transactions that were written in second quarter 2026.

The Company’s primary par written represented 51% of the total U.S.

municipal market insured par sold in first quarter 2026, compared with 64% in first quarter 2025, and the Company’s penetration of all municipal issuance was 3.2% in first quarter 2026 compared with 3.9% in first quarter 2025.

public finance GWP and PVP in first quarter 2026 included a secondary local authority transaction in the U.K.

annual extensions of liquidity facilities, and a primary social housing transaction in France, marking the Company’s inaugural primary guarantee in the social housing market within the European Union.

structured finance GWP and PVP in first quarter 2026 were primarily attributable to fund finance and financial guarantees for life insurance capital management purposes.

municipal market insured par sold in second quarter 2026, compared with 64% in second quarter 2025, and the Company’s penetration of all municipal issuance was 3.3% in second quarter 2026 compared with 6.0% in second quarter 2025.

public finance GWP and PVP in second quarter 2026 included a regulated utility in Spain and a secondary market regulated utility in the U.K.

structured finance GWP and PVP in second quarter 2026 included fund finance and financial guaranties for life insurance capital management purposes.

Six Months 2026

public finance GWP and PVP include transactions closed in both the primary and secondary markets.

public finance GWP and PVP increased in six months 2026 compared with six months 2025, primarily due to infrastructure finance and healthcare transactions that were written in six months 2026.

The Company’s primary par written represented 52% of the total U.S.

municipal market insured par sold in six months 2026, compared with 64% in six months 2025, and the Company’s penetration of all municipal issuance was 3.2% in six months 2026 compared with 5.1% in six months 2025.

public finance GWP and PVP in six months 2026 included a primary social housing transaction in France, annual extensions of liquidity facilities and a Spanish regulated utility.

structured finance GWP and PVP in six months 2026 were primarily attributable to fund finance and financial guaranties for life insurance capital management purposes.

Business activity in the non-U.S.

4 unchanged sentences

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

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

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

Equity method investments in the Financial Guaranty segment include certain alternative investments.

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

As part of a stock redemption that occurred in the third quarter of 2025, certain alternative investments were distributed to AGMH, whose results are reported in the Corporate division.

As part of a stock redemption that occurred in the third quarter of 2025, certain alternative investments were distributed to Assured Guaranty Municipal Holdings Inc.

(AGMH), whose results are reported in the Corporate division.

Financial Guaranty Segment

Income from Investments (1)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

13 unchanged sentences

Commercial real estate finance 2 — 3 —

Other — 1 — 2

Equity in earnings (losses) of investees $ (10) $ 2 $ (2) $ 32

Net investment income for first quarter 2026 increased compared with first quarter 2025, primarily due to a shift in the portfolio to higher yielding corporate securities, offset in part by $8 million of lower income from CLOs and Loss Mitigation Securities.

____________________

(1) Foreign exchange gains on remeasurement of certain investments were $4 million for second quarter 2025 and $6 million for six months 2025.

Net investment income for six months 2026 increased compared with six months 2025, primarily due to a shift in the portfolio to higher yielding corporate securities, offset in part by $15 million of lower income from CLOs and Loss Mitigation Securities.

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

The Company’s overall pre-tax book yield of available-for-sale fixed-maturity securities and short-term investments was 4.78% as of March 31, 2026 and 4.58% as of March 31, 2025.

Equity in earnings (losses) of investees for first quarter 2026 decreased compared with first quarter 2025, primarily due to losses in a CLO fund.

The Company’s overall pre-tax book yield of available-for-sale fixed-maturity securities and short-term investments was 4.92% and 4.67% as of June 30, 2026 and June 30, 2025, respectively.

Equity in earnings (losses) of investees for second quarter 2026 and six months 2026 decreased compared with second quarter 2025 and six months 2025, primarily due to losses in a CLO equity fund.

Foreign Exchange Gains (Losses) on Remeasurement

The variances in foreign exchange gains (losses) on remeasurement for second quarter 2026 and six months 2026 compared with second quarter 2025 and six months 2025 are primarily due to remeasurement of cash.

Foreign exchange gains and losses are primarily due to changes in the exchange rate of the pound sterling relative to the U.S.

Other Income (Loss)

The decrease in “other income (loss)” in first quarter 2026 was primarily related to additional income in first quarter 2025 associated with the workout and purchase of bonds issued by a U.K.

regulated utility to which the Company has insured exposure.

The decrease in “other income (loss)” in second quarter 2026 was primarily attributable to $6 million of interest received on late financial guaranty premiums recognized in second quarter 2025 and $4 million in credit loss provision for premiums receivable in second quarter 2026 compared with $1 million in second quarter 2025.

In addition, the decrease for six months 2026 was attributable to $9 million in of consent and usage fees associated with the workout and purchase of bonds issued by a U.K.

regulated utility to which the Company had insured exposure in six months 2025.

Economic Loss Development (Benefit)

The insured portfolio includes policies accounted for under several different accounting models depending on the characteristics of the contract and the Company’s control rights.

For a discussion of methodologies and significant estimates for expected loss to be paid (recovered), see Part II, Item 8, Financial Statements and Supplementary Data, Note 4, Expected Loss to be Paid (Recovered), of the Company’s 2025 Annual Report on Form 10-K.

For a discussion of methodologies and significant estimates for expected loss to be paid (recovered), see Part II, Item 8, Financial Statements and Supplementary Data, Note 4, Expected Loss

to be Paid (Recovered), of the Company’s 2025 Annual Report on Form 10-K.

The GAAP accounting policies for measurement and recognition for each type of contract are described in the notes listed below in Part II, Item 8, Financial Statements and Supplementary Data, of the Company’s 2025 Annual Report on Form 10-K:

13 unchanged sentences

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

The weighted average discount rates used to discount expected losses (recoveries) were 4.16% and 3.92% as of March 31, 2026 and December 31, 2025, respectively.

The weighted average discount rates used to discount expected losses (recoveries) were 4.35% and 3.92% as of June 30, 2026 and December 31, 2025, respectively.

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

2 unchanged sentences

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 $ 129 $ 88 $ 44 $ 48

Financial guaranty insurance $ 179 $ 88 $ 48 $ 38 $ 92 $ 86

FG VIEs 13 13 — (1) — (1)

7 unchanged sentences

Roll Forward by Sector

First Quarter 2026

Second Quarter 2026

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

Development (Benefit) Net (Paid)

Losses (1) Net Expected Loss to be Paid (Recovered) as of June 30, 2026

(in millions)

Public finance:

public finance $ 3 $ 44 $ (5) $ 42

public finance 128 4 — 132

Public finance 131 48 (5) 174

Structured finance:

RMBS (48) (1) 9 (40)

Other structured finance 58 1 (1) 58

Structured finance 10 — 8 18

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)

Losses (1) 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

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, 2026

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

(in millions)

8 unchanged sentences

Total $ 101 $ 92 $ (1) $ 192

First Quarter 2025

Six Months 2025

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

Development (Benefit) Net (Paid)

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

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

(in millions)

12 unchanged sentences

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

The effect of changes in the risk-free rates included in economic loss development (benefit) was a benefit of $4 million in first quarter 2026 and a loss of $5 million in first quarter 2025.

First Quarter 2026 Net Economic Loss Development

The effect of changes in the risk-free rates included in economic loss development (benefit) was a benefit of $2 million and $6 million in second quarter 2026 and six months 2026, respectively, and a loss of $1 million and $6 million in second quarter 2025 and six months 2025, respectively.

Second Quarter 2026 Net Economic Loss Development

Public Finance:

The economic loss development of $44 million for U.S.

public finance exposures was primarily attributable to Brightline Trains Florida LLC and Puerto Rico Electric Power Authority (PREPA).

The economic benefit for U.S.

RMBS was $2 million and was primarily attributable to higher recoveries for charged-off second lien loans.

public finance exposures was primarily attributable to Brightline Trains Florida LLC (Brightline).

Second Quarter 2025 Net Economic Loss Development

Public Finance:

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

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

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

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

regulated utility and U.K.

student accommodation exposures.

The economic development for U.S.

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

Six Months 2026 Net Economic Loss Development

Public Finance:

The economic loss development of $89 million for U.S.

public finance exposures was primarily attributable to Brightline and Puerto Rico Electric Power Authority (PREPA), partially offset by an economic benefit for certain healthcare exposures.

Financial Statements, Note 5.

Expected Loss to be Paid (Recovered), for additional information.

First Quarter 2025 Net Economic Loss Development

Six Months 2025 Net Economic Loss Development

Public Finance:

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

public finance exposures was primarily attributable to PREPA.

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

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

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

regulated utilities.

regulated utility exposures.

The economic benefit for U.S.

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

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

Other Structured Finance :

The benefit attributable to other structured finance of $65 million was primarily attributable to recoveries related to the resolution of the LBIE litigation (see Item 1.

Financial Statements, Note 8.

Derivatives).

The benefit attributable to other structured finance of $65 million was primarily attributable to recoveries related to the resolution of the LBIE litigation.

Financial Guaranty Segment Loss Expense

The primary differences between net economic loss development and the amount reported as “loss and LAE (benefit)” in the condensed consolidated statements of operations are that loss and LAE (benefit):

(i) considers deferred premium revenue in the calculation of loss reserves for FG insurance contracts;

(i) considers deferred premium revenue in the calculation of loss reserves for financial guaranty insurance contracts;

(ii) eliminates loss and LAE related to FG VIEs;

and (iii) does not include estimated losses or benefits on credit derivatives.

For FG insurance contracts, each transaction’s expected loss to be expensed is compared with the deferred premium revenue of that transaction.

For financial guaranty insurance contracts, each transaction’s expected loss to be expensed is compared with the deferred premium revenue of that transaction.

Expected loss to be expensed represents past or expected future net claim payments that have not yet been expensed.

Such amounts will be expensed in future periods as deferred premium revenue amortizes into income on FG insurance policies.

Such amounts will be expensed in future periods as deferred premium revenue amortizes into income on financial guaranty insurance policies.

Expected loss to be expensed is the Company’s projection of incurred losses that will be recognized in future periods, excluding accretion of discount.

1 unchanged sentence

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

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

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

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

7 unchanged sentences

Loss Expense (Benefit)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

2 unchanged sentences

Structured finance:

RMBS 2 (1) 1 (1)

Other structured finance (1) 2 (1) 1 (66)

2 unchanged sentences

____________________

(1) First quarter 2025 includes $63 million of recoveries in connection with the resolution of the LBIE litigation (see Item 1.

Financial Statements, Note 8.

Derivatives).

(1) Six Months 2025 includes $63 million of recoveries in connection with the resolution of the LBIE litigation.

Annuity Reinsurance Segment Results

First Quarter

Second Quarter Six Months

(in millions)

8 unchanged sentences

Total segment expenses 13 24

Income (loss) before income taxes (1)

Segment adjusted operating income (loss) before income taxes 2 1

Provision (benefit) for income taxes — (1)

1 unchanged sentence

____________________

(1) Segment revenues include $5 million related to PRT and $5 million related to MYGA.

(2) Benefit expense for annuity reinsurance contracts includes $4 million related to PRT and $3 million related to MYGA.

(1) Represents primarily net investment income on assets supporting the PRT contract.

(2) Represents the change in the fair value of the embedded derivative in funds withheld, excluding realized and unrealized gains (losses) on the underlying investments of the funds withheld account supporting Assured Life Re’s MYGA contract.

(3) Benefit expense for annuity reinsurance contracts for second quarter 2026 and six months 2026 includes $5 million and $9 million related to PRT benefit expense, respectively, and $3 million and $6 million related to MYGA interest expense, respectively.

On January 21, 2026, the Company entered the annuity reinsurance market through the acquisition of Warwick.

See “— Overview — Key Business Strategies — Annuity Reinsurance.” Assured Life Re reinsures a block of PRT business, with future policy benefit reserves of $475 million, supported by a $594 million portfolio of fixed-maturity, short-term securities, cash, derivatives and other assets, as well as a block of MYGA business with a policyholder account value of $263 million, as part of a funds withheld coinsurance arrangement, for which the Company carries funds withheld receivable of $296 million.

The assets supporting the PRT contract primarily consist of U.S.

corporate and government bonds, including a portfolio of inflation-linked bonds, as well as derivatives which economically hedge the currency, inflation and interest rate mismatches between the PRT liabilities, which are long-dated inflation-linked obligations denominated in pounds sterling, and the investment portfolio which includes certain U.S.

See “— Overview — Key Business Strategies — Annuity Reinsurance.”

Assured Life Re reinsures a block of PRT business, with reserves of $484 million, supported by a $596 million asset portfolio that consists primarily of U.S.

corporate and government bonds, including a portfolio of inflation-linked bonds.

The asset portfolio also includes derivatives that economically hedge currency, inflation and interest rate mismatches between the PRT liabilities, which are long-dated inflation-linked obligations denominated in pounds sterling, and the investment portfolio, which includes certain U.S.

dollar denominated and non-inflation linked securities.

The MYGA policyholder account balances for annuity reinsurance contracts are supported by assets in a funds withheld arrangement with the cedant primarily consisting of mortgage and other asset-backed securities.

See “— Reconciliation to GAAP.”

Assured Life Re also reinsures a block of MYGA business with a policyholder account value of $256 million, assumed under a funds withheld coinsurance arrangement, for which the Company reports a funds withheld receivable of $296 million.

Assets within the funds withheld account primarily consist of mortgage and other asset-backed securities.

The Company also maintains $22 million of fixed-maturity securities for Assured Life Re’s own account.

3 unchanged sentences

Asset Management Segment Results

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

5 unchanged sentences

Segment adjusted operating income (loss) $ (4) $ 4 $ 40 $ 16

Results in the table above primarily represent (i) equity in earnings (losses) of Sound Point $6 million in first quarter 2026 and $13 million in first quarter 2025 (Sound Point results are reported on a one quarter lag), net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point, and (ii) other asset management related income, including the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund.

Results in the table above primarily represent (i) equity in earnings (losses) of Sound Point, net of the amortization of finite-lived intangible assets associated with the basis difference in Sound Point, and (ii) other asset management related income, including the impact of the payout of carried interest from the sale of the underlying asset in a single-asset fund.

Corporate Division Results

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

Bargain purchase gain $ — $ — $ 6 $ —

Other 3 4 5 8

Total revenues 3 4 11 8

7 unchanged sentences

Adjusted operating income (loss) $ (28) $ (29) $ (43) $ (49)

In connection with the Assured Life Re Acquisition, the Company recognized a provisional bargain purchase gain of $6 million.

In connection with the Assured Life Re Acquisition, the Company recognized a provisional bargain purchase gain of $6 million in six months 2026.

Financial Statements, Note 2.

4 unchanged sentences

Holding Companies, Intercompany Loans Payable” for additional information.

Equity in earnings of investees in first quarter 2026 and first quarter 2025 relates to certain legacy alternative investments.

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

Other operating expenses were higher in first quarter 2026 compared to first quarter 2025 primarily due to higher professional fees related to Assured Life Re Acquisition.

Other operating expenses were higher in six months 2026 compared with six months 2025 primarily due to higher professional fees related to Assured Life Re Acquisition.

Equity in earnings of investees relates to certain alternative investments.

Other (Effect of Consolidating FG VIEs and CIVs)

5 unchanged sentences

Variable Interest Entities, the types of entities the Company consolidates when it is deemed to be the primary beneficiary primarily include:

and (iii) annuity reinsurance VIEs that have been established as part of coinsurance arrangements with cedants in the annuity reinsurance business to hold assets supporting assumed blocks of business.

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

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

and (iii) annuity reinsurance VIEs, which are included in the Annuity Reinsurance segment, that have been established as part of coinsurance arrangements with cedants in the annuity reinsurance business to hold assets supporting assumed blocks of business.

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

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

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

(ii) eliminating the premiums and losses/recoveries associated with the FG insurance contracts between the FG insurance subsidiaries and the FG VIEs;

and (iii) eliminating the investment balances associated with the FG insurance subsidiaries’ purchases of the debt obligations of the FG VIEs.

Consolidating investment vehicles in which the Company invests (as opposed to accounting for them as equity method investments) has a significant effect on assets, liabilities and cash flows, and includes:

(ii) eliminating the premiums and losses/recoveries associated with the financial guaranty insurance contracts between the financial guaranty insurance subsidiaries and the FG VIEs;

(iii) eliminating the investment balances associated with the financial guaranty insurance subsidiaries’ purchases of the debt obligations of the FG VIEs;

and (iv) establishing NCI.

CIVs in which the Company invests (as opposed to accounting for them as equity method investments) has a significant effect on assets, liabilities and cash flows, and includes:

(i) the establishment of the assets and liabilities of the CIVs, and related changes in fair value;

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

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

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

6 unchanged sentences

Increase (Decrease)

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

Effect on Financial Statement Line Item (in millions)

10 unchanged sentences

FG VIEs $ — $ — $ — $ —

CIVs — (1) (16) 1

Effect on net income (loss) attributable to AGL $ — $ (1) $ (16) $ 1

8 unchanged sentences

to Adjusted Operating Income (Loss)

First Quarter 2026 First Quarter 2025

Second Quarter 2026 Second Quarter 2025

Total Per Diluted Share Total Per Diluted Share

12 unchanged sentences

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

Six Months 2026 Six Months 2025

Total Per Diluted Share Total Per Diluted Share

(in millions, except per share amounts)

Net income (loss) attributable to AGL $ 127 $ 2.80 $ 279 $ 5.54

Less pre-tax adjustments:

Realized gains (losses) on investments (25) (0.54) (22) (0.43)

Non-credit impairment-related fair value gains (losses) on credit derivatives (3) (0.06) (3) (0.07)

Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment (3) (0.08) — —

Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld (2) (0.04) — —

Fair value gains (losses) on CCS (1) (0.03) 1 0.02

Foreign exchange gains (losses) on remeasurement of certain assets and liabilities (19) (0.41) 104 2.06

Total pre-tax adjustments (53) (1.16) 80 1.58

Less tax effect on pre-tax adjustments 10 0.22 (13) (0.25)

Adjusted operating income (loss) $ 170 $ 3.74 $ 212 $ 4.21

Gain (loss) related to FG VIE and CIV consolidation (net of tax provision (benefit) of $(5) and $0) included in adjusted operating income $ (16) $ (0.36) $ 1 $ 0.02

Net Realized Investment Gains (Losses)

1 unchanged sentence

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 (9) (3) (25) (13)

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

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

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.

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.

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

4 unchanged sentences

Unrealized gains (losses) on credit derivatives may fluctuate significantly in future periods.

for underlying credit impairment, which is recognized as loss expense in the Financial Guaranty segment, the fair value adjustments on credit derivatives in the insured portfolio are non-economic adjustments that reverse to zero over the remaining term of that portfolio.

Except for underlying credit impairment, which is recognized as loss expense in the Financial Guaranty segment, the fair value adjustments on credit derivatives in the insured portfolio are non-economic adjustments that reverse to zero over the remaining term of that portfolio.

Financial Statements, Note 11.

16 unchanged sentences

Foreign Exchange Gains (Losses) on Remeasurement

Foreign exchange losses of $18 million in first quarter 2026 and gains $33 million gain in first quarter 2025 were primarily related to certain assets and liabilities such as premiums receivables and insurance liabilities that are long term in nature.

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

Approximately 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.

Foreign exchange losses of $1 million and $19 million in second quarter 2026 and six months 2026, respectively, and foreign exchange gains of $71 million and $104 million in second quarter 2025 and six months 2025, respectively, were primarily related to certain assets and liabilities such as premiums receivables and insurance liabilities that are long-term in nature.

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

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.

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

4 unchanged sentences

Dollar Per Foreign Currency

As of March 31, 2026 As of December 31, 2025 As of March 31, 2025 As of December 31, 2024

As of June 30, 2026 As of December 31, 2025 As of June 30, 2025 As of December 31, 2024

Pound sterling $1.326 $1.348 $1.373 $1.252

6 unchanged sentences

The primary limitation of non-GAAP financial measures is the potential lack of comparability to financial measures of other companies, whose definitions of non-GAAP financial measures may differ from those of the Company.

decision to recommend, buy or sell AGL’s common shares and provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty.

The Company’s management believes that many investors, analysts and financial news reporters use adjusted operating shareholders’ equity and/or ABV, each further adjusted to remove the effect of FG VIE and CIV consolidation, as the principal financial measures for valuing AGL’s current share price or projected share price and also as the basis of their decision to recommend, buy or sell AGL’s common shares and provides information that is necessary for analysts to calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty.

Adjusted operating income, further adjusted for the effect of FG VIE and CIV consolidation, enables investors and analysts to evaluate the Company’s financial results in comparison with the consensus analyst estimates distributed publicly by financial databases.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the FG insurance contract, and certain CIVs in which subsidiaries invest.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and certain CIVs in which subsidiaries invest.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable.

6 unchanged sentences

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

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

(iii) ABV per

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

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

2 unchanged sentences

Adjusted Operating Income

GAAP, (i) may vary significantly from period to period due to near-term market conditions or are otherwise not directly comparable or reflective of the underlying performance of the Company’s business, (ii) result in asymmetrical accounting adjustments, and/or (iii) non-economic accounting adjustments.

The Company’s management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company and excludes certain items including (i) items that, under GAAP, may vary significantly from period to period due to near-term market conditions or are otherwise not directly comparable or reflective of the underlying performance of the Company’s business, (ii) items that, under GAAP, result in asymmetrical accounting adjustments, and/or (iii) non-economic gains and losses.

Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

5 unchanged sentences

3) Elimination of changes in fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP).

rates, and interest rates, and certain components of changes in insurance liabilities as a result of changes in interest rates.

In addition, the timing of the recognition of mark-to-market movements as a result of inflation changes may not match the timing of the corresponding derivative gain and loss recognition.

Certain mark-to-market movements of the hedged market risks are not reported in net income (loss) attributable to AGL, such as changes in the unrealized gains and losses on the available-for-sale investment portfolio due to fluctuations in exchange rates, and interest rates, and certain components of changes in insurance liabilities as a result of changes in interest rates.

4) Elimination of the changes in fair value of the embedded derivative in funds withheld that are recognized in net income (loss) attributable to AGL related to realized and unrealized gains (losses) of the underlying investment portfolio, whose value may change significantly from period to period due to near term market conditions.

7 unchanged sentences

The method for calculating weighted average diluted shares is in accordance with GAAP.

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

See “— Results of

Operations — Reconciliation to GAAP” for a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

Adjusted Operating Shareholders’ Equity and ABV

10 unchanged sentences

The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore would not result in an economic gain or loss.

4) Elimination of the fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP), such as changes in fair value on derivatives that hedge fluctuations in foreign exchange, interest rates and inflation on the available-for-sale investment portfolio.

5) Elimination of the unrealized gains (losses) of the underlying investments in funds withheld arrangements.

4 unchanged sentences

2) Addition of the net present value of estimated net future revenue.

3) Addition of deferred income on insurance contracts (including deferred profit liability and, in the case of FG insurance contracts, the amount of deferred premium revenue in excess of expected loss to be expensed, net of reinsurance).

3) Addition of deferred income on insurance contracts (including deferred profit liability and, in the case of financial guaranty insurance contracts, the amount of deferred premium revenue in excess of expected loss to be expensed, net of reinsurance).

4) Income tax allocated to the adjustments above.

3 unchanged sentences

to Adjusted Operating Shareholders’ Equity and ABV

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

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

Total Per Share Total Per Share

22 unchanged sentences

Net Present Value of Estimated Net Future Revenue

The Company’s management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-FG insurance contracts.

The Company’s management believes that this amount is a useful measure because it enables an evaluation of the present value of estimated net future revenue for non-financial guaranty insurance contracts.

This amount represents the net present value of estimated future revenue from these contracts (other than credit derivatives with net expected losses), net of reinsurance, ceding commissions and premium taxes.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than Loss Mitigation Securities.

Future installment premiums are discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturity securities such as Loss Mitigation Securities.

The discount rate is recalculated annually and updated as necessary.

2 unchanged sentences

PVP or Present Value of New Business Production

The Company’s management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Financial Guaranty segment by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP GWP and changes in fair value of credit derivatives do not adequately measure.

premiums on all new contracts underwritten in a reporting period as well as additional installment premiums and fees on existing contracts (which may result from supplements or fees or from the issuer not calling an insured obligation the Company projected would be called), regardless of form, which management believes GAAP GWP and changes in fair value of credit derivatives do not adequately measure.

PVP in respect of contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums.

discount rate is recalculated annually and updated as necessary.

The discount rate is recalculated annually and updated as necessary.

Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate.

Additionally, under GAAP, management records future installment premiums on FG insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.

Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction.

Actual installment premiums may differ from those estimated in the Company’s PVP calculation due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, amendments to policies, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.

Reconciliation of GWP to PVP

First Quarter 2026 First Quarter 2025

Second Quarter 2026 Second Quarter 2025

Public Finance Structured Finance Public Finance Structured Finance

5 unchanged sentences

PVP $ 58 $ 3 $ 9 $ 9 $ 79 $ 49 $ 7 $ 1 $ 7 $ 64

Six Months 2026 Six Months 2025

Public Finance Structured Finance Public Finance Structured Finance

(in millions)

GWP $ 102 $ 16 $ 17 $ 16 $ 151 $ 98 $ 7 $ 6 $ 9 $ 120

Installment GWP and other GAAP adjustments (1) 20 16 17 16 69 32 7 6 9 54

Upfront GWP 82 — — — 82 66 — — — 66

Installment premiums and other (2) 24 11 16 19 70 8 14 3 12 37

PVP $ 106 $ 11 $ 16 $ 19 $ 152 $ 74 $ 14 $ 3 $ 12 $ 103

___________________

7 unchanged sentences

The following table presents the financial guaranty portfolio by sector, net of cessions to reinsurers.

It includes all financial guaranty contracts outstanding as of the dates presented, regardless of the form written (i.e., credit derivative form or traditional FG insurance form) or the applicable accounting model (i.e., FG insurance, credit derivatives or FG VIE).

It includes all financial guaranty contracts outstanding as of the dates presented, regardless of the form written (i.e., credit derivative form or traditional financial guaranty insurance form) or the applicable accounting model (i.e., financial guaranty insurance, credit derivatives or FG VIE).

Financial Guaranty Portfolio

Net Par Outstanding by Sector

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

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

Sector (in billions)

38 unchanged sentences

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

As of March 31, 2026, the Company’s only remaining outstanding unresolved insured Puerto Rico exposure subject to a payment default was PREPA, to which the Company had net par and debt service outstanding of $464 million and $528

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.

As of June 30, 2026, the Company’s only remaining outstanding unresolved insured Puerto Rico exposure subject to a payment default was PREPA, to which the Company had net par and debt service outstanding of $464 million and $526

million, respectively.

8 unchanged sentences

Net Par Outstanding and Net Debt Service Outstanding

As of March 31, 2026

As of June 30, 2026

Scheduled Net Par Amortization Scheduled Net Debt Service Amortization

(in millions)

2026 (April 1 - June 30) $ — $ 2

2026 (July 1 - September 30) $ 106 $ 114

31 unchanged sentences

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

Management believes that AGL will have sufficient liquidity to satisfy its

needs over the next twelve months.

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

See “— Overview — Key Business Strategies, Capital Management” above for information on common share repurchases.

9 unchanged sentences

Long-Term Debt and Intercompany Loans

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

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

(in millions)

36 unchanged sentences

Holding Companies, excluding their investments in subsidiaries.

As of March 31, 2026

As of June 30, 2026

Holding Companies

6 unchanged sentences

Receivables from affiliates (2) 67 —

Dividends receivable from U.S.

Holding Companies 40 —

Dividend receivable from other subsidiaries 40 —

2 unchanged sentences

Loans payable to affiliates — 220

Dividends payable to AGL — 40

Payable to affiliates (2) 12 9

1 unchanged sentence

____________________

(1) As of March 31, 2026, the weighted average durations of AGL’s and the U.S.

(1) As of June 30, 2026, the weighted average durations of AGL’s and the U.S.

Holding Companies’ fixed-maturity securities were 10.5 years and 1.1 years, respectively.

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

First Quarter 2026

Six Months 2026

Holding Companies

10 unchanged sentences

Selected Cash Flow Items

First Quarter 2026

Six Months 2026

Holding Companies

4 unchanged sentences

Distributions from equity method investees (1) — 25

Interest paid on intercompany loans (1)

Interest paid on long-term debt — (42)

18 unchanged sentences

Insurance Subsidiaries

The Company has several FG insurance subsidiaries.

The Company has several financial guaranty insurance subsidiaries.

AG is an insurance subsidiary domiciled in Maryland.

4 unchanged sentences

AG Re is an insurance company domiciled in Bermuda that owns AGRO, an insurance company that is also domiciled in Bermuda.

The Company conducts its annuity reinsurance business through Assured Life Re, an insurance company domiciled in Bermuda which was acquired by the Company on January 21, 2026.

The Company conducts its annuity reinsurance business through Assured Life Re, an insurance company domiciled in Bermuda which was acquired on January 21, 2026.

Sources and Uses of Funds

8 unchanged sentences

Financial Guaranty

Management believes that the FG insurance subsidiaries’ liquidity needs for the next twelve months can be met from current cash, short-term investments and operating cash flow, including premium collections and coupon payments as well as scheduled maturities and paydowns from their respective investment portfolios.

Management believes that the financial guaranty insurance subsidiaries’ liquidity needs for the next twelve months can be met from current cash, short-term investments and operating cash flow, including premium collections and coupon payments as well as scheduled maturities and paydowns from their respective investment portfolios.

The Company generally targets a balance of its most liquid assets including cash and short-term securities, U.S.

Treasuries, agency RMBS and pre-refunded municipal bonds

equal to 1.5 times its projected operating company cash flow needs over the next four quarters.

As of March 31, 2026, the Company intended to hold and had the ability to hold securities in an unrealized loss position until the date of anticipated recovery of amortized cost.

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

FG insurance policies issued provide, in general, that payments of principal, interest and other amounts insured generally may not be accelerated by the holder of the obligation.

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

As of June 30, 2026, the Company intended to hold and had the ability to hold securities in an unrealized loss position until the date of anticipated recovery of amortized cost.

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

Financial guaranty insurance policies issued provide, in general, that payments of principal, interest and other amounts insured generally may not be accelerated by the holder of the obligation.

Amounts paid by the Company therefore are typically in accordance with the obligation’s original payment schedule, unless the Company accelerates such payment schedule, at its sole option.

3 unchanged sentences

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

The Company had $464 million in insured net par outstanding of PREPA obligations as of March 31, 2026.

The Company had $464 million in insured net par outstanding of PREPA obligations as of June 30, 2026.

For more information, see Item 1.

2 unchanged sentences

The terms of the Company’s credit default swap (CDS) contracts generally are modified from standard CDS contract forms approved by International Swaps and Derivatives Association, Inc.

such that the circumstances giving rise to the Company’s obligation to make loss payments are similar to those for its FG insurance contracts.

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 documentation for certain CDS was negotiated to require the Company to also pay if the obligor were to become bankrupt or if the reference obligation were restructured.

12 unchanged sentences

The Company anticipates that, for the next twelve months, amounts paid by AGL’s direct and indirect insurance subsidiaries as dividends or other distributions will be a major source of the holding companies’ liquidity.

The insurance subsidiaries’ ability to pay dividends depends upon their financial condition, results of operations, cash requirements, other potential uses for such funds and compliance with rating agency requirements, and is also subject to restrictions contained in the insurance laws and related regulations of their states of domicile.

Statements and Supplementary Data, Note 14, Insurance Company Regulatory Requirements, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the Company’s dividend restrictions applicable to AG, AG Re and AGRO.

The insurance

subsidiaries’ ability to pay dividends depends upon their financial condition, results of operations, cash requirements, other potential uses for such funds and compliance with rating agency requirements, and is also subject to restrictions contained in the insurance laws and related regulations of their states of domicile.

For more information, see Item 8.

Financial Statements and Supplementary Data, Note 14, Insurance Company Regulatory Requirements, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a discussion of the Company’s dividend restrictions applicable to AG, AG Re and AGRO.

Dividend restrictions by insurance subsidiary are as follows:

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

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

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

The maximum amount available during 2026 for AG to distribute as ordinary dividends is approximately $245 million of which approximately $72 million is available for distribution in the second quarter of 2026.

• The Company expects the amount of dividends available for distribution by AG Re in 2026 to be approximately $153 million.

Based on applicable law and regulations, in 2026 AG Re has the capacity to declare and pay dividends in an aggregate amount up to 25% of the prior year total statutory capital and surplus (i.e., up to $292 million);

provided that such payment cannot exceed AG Re’s unencumbered assets ($181 million as of March 31, 2026) or its statutory surplus ($268 million as of March 31, 2026).

provided that such payment cannot exceed AG Re’s unencumbered assets ($153 million as of June 30, 2026) or its statutory surplus ($249 million as of June 30, 2026).

Additionally, in 2026 AG Re can make capital distributions in an aggregate amount up to $129 million without the prior approval of the Bermuda Monetary Authority (the Authority).

1 unchanged sentence

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;

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, which 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.

4 unchanged sentences

to Holding Companies

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

Dividends declared by AG Re to AGL (1) $ 40 $ 50 $ 120 $ 50

Dividends declared by AG to U.S.

Holding Companies 29 72

Dividends declared by AG to AGMH 72 72 101 144

___________________

(1) In first quarter 2026, AG Re declared a dividend of $50 million, which was paid in the second quarter of 2026.

(1) In second quarter 2026, AG Re declared a dividend of $40 million, which was paid in the third quarter of 2026.

Committed Capital Securities

5 unchanged sentences

The Board has authorized a maximum borrowing capacity of $600 million.

As of March 31, 2026, the Company had not borrowed any funds or pledged any collateral under the FHLBNY program.

As of June 30, 2026, the Company had not borrowed any funds or pledged any collateral under the FHLBNY program.

Investment Portfolio

As of March 31, 2026, the Company had $6,875 million of available-for-sale fixed-maturity securities, of which $6,189 million were managed by four investment managers:

As of June 30, 2026, the Company had $6,817 million of available-for-sale fixed-maturity securities, of which $6,112 million were managed by four investment managers:

three for the financial guaranty subsidiaries and one for the annuity reinsurance subsidiary.

2 unchanged sentences

In accordance with their respective investment guidelines, the Company’s investment managers for the financial guaranty subsidiaries are also required to maintain their portion of the Company’s investment portfolio with an overall credit quality rated at a minimum of A+/A1/A+ by S&P/Moody’s/Fitch Ratings Inc.

The Company’s annuity reinsurance subsidiary seeks to maintain an investment grade overall credit quality for its reinsured investment portfolios.

The Company’s annuity reinsurance subsidiary seeks to maintain an investment grade overall credit quality for its investment portfolios.

Changes in interest rates affect the value of the Company’s fixed-maturity securities.

8 unchanged sentences

Carrying Value

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(in millions)

9 unchanged sentences

Variable Interest Entities.

(3) March 31, 2026 includes $603 million related to annuity reinsurance consisting of $597 million of fixed-maturity, available-for-sale securities and $6 million of short-term investments.

The Company’s available-for-sale fixed-maturity securities had a duration of 5.4 years and 4.9 years as of March 31, 2026 and December 31, 2025, respectively.

The June 30, 2026 balance includes loans issued by a U.K.

regulated utility and a U.S.

infrastructure project to which the Company has insured exposure.

(3) June 30, 2026 includes $612 million related to annuity reinsurance consisting of $605 million of available-for-sale fixed-maturity securities and $7 million of short-term investments.

The Company’s available-for-sale fixed-maturity securities had a duration of 5.5 years and 4.9 years as of June 30, 2026 and December 31, 2025, respectively.

Available-for-Sale Fixed-Maturity Securities By Rating

The following table summarizes the ratings distributions of the Company’s available-for-sale fixed-maturity securities as of March 31, 2026 and December 31, 2025.

The following table summarizes the ratings distributions of the Company’s available-for-sale fixed-maturity securities as of June 30, 2026 and December 31, 2025, based on fair value.

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

2 unchanged sentences

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

Rating March 31, 2026 December 31, 2025

Rating June 30, 2026 December 31, 2025

AAA 13.6 % 13.3 %

6 unchanged sentences

Sound Point and Alternative Investments

As of March 31, 2026 (1) As of December 31, 2025

As of June 30, 2026 (1) As of December 31, 2025

Investments CIVs (2) Consolidated Investments CIVs Consolidated

14 unchanged sentences

(1) The alternative investments, which do not include the Company’s ownership interest in Sound Point, had an inception-to-date annualized internal rate of return of 12%.

(2) During first quarter 2026, the Company deconsolidated a CIV related to its investments with Sound Point.

As of March 31, 2026, the Company did not consolidate any CIVs.

(2) During six months 2026, the Company deconsolidated a CIV related to its investments in a fund managed by Sound Point.

As of June 30, 2026, the Company did not consolidate any CIVs.

Effect of Ownership Interest in Sound Point and Alternative Investments

on Condensed Consolidated Statements of Operations

First Quarter 2026 First Quarter 2025

Second Quarter 2026 Second Quarter 2025

Investments CIVs Consolidated Investments CIVs Consolidated

15 unchanged sentences

Fair value gains (losses) on CIVs, net of non-redeemable NCI $ — $ — $ — $ — $ 1 $ 1

Six Months 2026 Six Months 2025

Investments CIVs Consolidated Investments CIVs Consolidated

(in millions)

Net investment income $ 19 $ — $ 19 $ 23 $ — $ 23

Net realized investment gains (losses) (21) — (21) (7) — (7)

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

Equity in earnings (losses) of investees:

Ownership interest in Sound Point 1 — 1 12 — 12

Alternative investments:

CLOs (30) — (30) 3 — 3

Private healthcare investing 18 — 18 13 — 13

Asset-based/specialty finance 11 (2) 9 14 (7) 7

Private minority stakes in alternative asset manager 16 — 16 15 — 15

Commercial real estate finance 3 — 3 — — —

Other 3 — 3 6 — 6

Equity in earnings (losses) of investees 22 (2) 20 63 (7) 56

Subtotal $ 20 $ (2) $ 18 $ 80 $ (7) $ 73

Fair value gains (losses) on CIVs, net of non-redeemable NCI $ — $ 6 $ 6 $ — $ 11 $ 11

The Company has agreed to invest an aggregate amount of $1.4 billion in alternative investments, which includes $1 billion in Sound Point managed investments, subject to certain conditions precedent.

Unfunded commitments for alternative investments as of March 31, 2026 were $554 million.

Unfunded commitments for alternative investments as of June 30, 2026 were $480 million.

Financial Statements, Note 9.

1 unchanged sentence

Restricted Assets

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

2 unchanged sentences

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.

Funds Withheld

4 unchanged sentences

Funds Withheld

As of March 31, 2026

As of June 30, 2026

(in millions)

4 unchanged sentences

Cash, cash equivalents and short-term investments 67

Accrued investment income 2

Total funds withheld, net of allowance for credit losses $ 296

2 unchanged sentences

in Funds Withheld

First Quarter

Second Quarter Six Months

(in millions)

6 unchanged sentences

See Part II, Item 8, Financial Statements and Supplementary Data, Note 16, Leases, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a table of minimum lease obligations and other lease commitments.

During second quarter 2026, the Company entered into a renewed lease agreement for its existing Bermuda office space.

This lease, with an additional $2 million of future rental payments, commenced in second quarter 2026 and expires in April 2031.

FG VIEs and CIVs

1 unchanged sentence

however, the Company’s condensed consolidated financial statements include the effect of consolidating FG VIEs and CIVs.

After the Company deconsolidated its remaining CIV in the first quarter of 2026, there are no CIVs outstanding.

The primary sources and uses of cash at Assured Guaranty’s FG VIEs and CIVs are as follows:

12 unchanged sentences

Summarized Condensed Consolidated Cash Flows

First Quarter

Second Quarter Six Months

2026 2025 2026 2025

(in millions)

16 unchanged sentences

____________________

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

Cash flows from operating activities were inflows of $190 million in first quarter 2026 and inflows of $87 million in first quarter 2025.

The first quarter 2026 cash flow from operations attributable to FG VIEs and CIVs includes proceeds from sales of investments of a CIV, which were used to fund distributions and was subsequently deconsolidated.

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

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

Cash flows from operating activities were inflows of $230 million in six months 2026 and inflows of $165 million in six months 2025.

The six months 2026 cash flow from operations attributable to FG VIEs and CIVs includes proceeds from sales of investments of a CIV, which were used to fund distributions and was subsequently deconsolidated.

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

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

During first quarter 2026, the Company paid $145 million (net of cash acquired), to acquire Assured Life Re.

Financial Statements, Condensed Consolidated Statements of Cash Flows, and Note 5.

Expected Loss to be Paid (Recovered), for additional information.

In addition, during six months 2026, the Company paid $145 million (net of cash acquired), to acquire Assured Life Re.

Financial Statements, Note 2.

Assured Life Re Acquisition, for additional information.

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

In addition, first quarter 2026 cash flows include distributions to noncontrolling interests from a CIV.

From April 1, 2026 through May 6, 2026, the Company repurchased an additional 350 thousand common shares.

As of May 6, 2026, the Company was authorized to purchase $147 million of its common shares.

In addition, six months 2026 cash flows include distributions to noncontrolling interests from a CIV.

From July 1, 2026 through August 5, 2026, the Company repurchased an additional 123 thousand common shares for $10 million.

As of August 5, 2026, the Company was authorized to purchase $121 million of its common shares.

For more information about the Company’s share repurchases and authorizations, see Item 1.

2 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis