Assured Guaranty reported strong Q1 2025 results, with adjusted operating income per share of $3.18, up 62% from $1.96 in Q1 2024, driven largely by a $103M pretax gain from the Lehman Brothers litigation.
Key valuation metrics reached new highs: adjusted operating shareholders' equity at $117.4 per share, adjusted book value at $172.79 per share, and shareholders' equity per share at $112.8.
New business production was $39M of PVP, with 65% from US public finance; Assured Guaranty led the US municipal bond insurance market, capturing 64% of primary market insured par sold and 58% of insured transaction count.
Investment income from alternative investments reached a record $59M in the quarter, with an inception-to-date annualized return of 13%; the asset management segment contributed $12M, mainly from the 30% SoundPoint ownership.
The company repurchased 1.3M shares for $120M and returned $18M in dividends; management expects continued strong demand for its guarantee products amid market volatility and is investing in technology to grow its secondary market business.