# EDGAR Filing Document

**Accession Number:** 0001273813
**File Stem:** 0001273813-23-000002
**Filing Date:** 2023-3
**Character Count:** 262732
**Document Hash:** 7afe3c4b522afe12f9811e214d397341
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001273813-23-000002.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001273813-23-000002

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 18

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Completion of Acquisition or Disposition of Assets

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ASSURED GUARANTY LTD
- **CENTRAL INDEX KEY:** 0001273813
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURETY INSURANCE [6351]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** D0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32141
- **FILM NUMBER:** 23688013

**BUSINESS ADDRESS:**
- **STREET 1:** 30 WOODBOURNE AVE
- **STREET 2:** 5TH FLOOR
- **CITY:** HAMILTON BERMUDA
- **STATE:** D0
- **ZIP:** HM08
- **BUSINESS PHONE:** 441-279-5700

**MAIL ADDRESS:**
- **STREET 1:** 30 WOODBOURNE AVE
- **STREET 2:** 5TH FLOOR
- **CITY:** HAMILTON BERMUDA
- **STATE:** D0
- **ZIP:** HM08

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AGR LTD
- **DATE OF NAME CHANGE:** 20040122

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** AGC HOLDINGS LTD
- **DATE OF NAME CHANGE:** 20031218

?xml version="1.0" ? ago-20230228

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**Current Report**

**Pursuant to Section 13 or 15 (d) of the**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported)—February 28, 2023

![ago-20230228_g1.jpg](ago-20230228_g1.jpg)

**ASSURED GUARANTY LTD.** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Bermuda** | **001-32141** | **98-0429991** |
| (State or other jurisdiction <br>of incorporation or organization) | (Commission File Number) | (I.R.S. Employer <br>Identification No.) |

---

**30 Woodbourne Avenue** 

**Hamilton HM 08 Bermuda** 

(Address of principal executive offices)

Registrant's telephone number, including area code: **(441) 279-5700** 

**Not applicable**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

☐&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | | |
|:---|:---|:---|:---|
| **Title of each class:** | **Title of each class:** | **Trading Symbol(s)** | **Name of exchange on which registered** |
| Common Shares | $0.01 par value per share | AGO | New York Stock Exchange |
| Assured Guaranty US Holdings Inc. 5.000% Senior Notes due 2024 (and the related guarantee of Registrant) | Assured Guaranty US Holdings Inc. 5.000% Senior Notes due 2024 (and the related guarantee of Registrant) | AGO 24 | New York Stock Exchange |
| Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant) | Assured Guaranty US Holdings Inc. 3.150% Senior Notes due 2031 (and the related guarantee of Registrant) | AGO/31 | New York Stock Exchange |
| Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant) | Assured Guaranty US Holdings Inc. 3.600% Senior Notes due 2051 (and the related guarantee of Registrant) | AGO/51 | New York Stock Exchange |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

---

| | |
|:---|:---|
| ***Item 2.02*** | |
| ***Item 9.01***<br>**Exhibit <br>Number** | &nbsp;&nbsp;&nbsp;&nbsp;**Results of Operations and Financial Condition.**<br>On February 28, 2023 Assured Guaranty Ltd. issued a press release reporting its fourth quarter 2022 results and the availability of its December 31, 2022 financial supplement. The press release and the financial supplement are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively, and are incorporated by reference herein.<br>**Financial Statements and Exhibits.<br>(d) Exhibits**<br>&nbsp;&nbsp;&nbsp;**Description** |
| 99.1 | <u>[Assured Guaranty Ltd. Press Release dated December 31, 2022 reporting fourth quarter 2022 results](agl4q22pressrelease.htm)</u> |
| 99.2 | <u>[December 31, 2022 Financial Supplement of Assured Guaranty Ltd.](agl4q22supplement.htm)</u> |
| &nbsp;&nbsp;104.1 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |

---

------

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| Assured Guaranty Ltd. | Assured Guaranty Ltd. |
| By: | /s/ ROBERT A. BAILENSON |
|  | Name: Robert A. Bailenson <br>Title: *Chief Financial Officer* |

---

DATE: February 28, 2023

## Exhibit 99.1

![agllogoa.jpg](agllogoa.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Assured Guaranty Ltd. Reports Results for Fourth Quarter 2022 and Full Year 2022**

**Fourth Quarter 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• GAAP Highlights:** Net income attributable to Assured Guaranty Ltd. was $94 million, or $1.52 per share<sup>(1)</sup>, for fourth quarter 2022. Shareholders' equity attributable to Assured Guaranty Ltd. per share was $85.80 as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Non-GAAP Highlights:** Adjusted operating income<sup>(2)</sup> was $14 million, or $0.22 per share, for fourth quarter 2022. Adjusted operating shareholders' equity<sup>(2)</sup> per share and adjusted book value (ABV)<sup>(2)</sup> per share were $93.92 and $141.98, respectively, as of December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Return of Capital to Shareholders:** Fourth quarter 2022 capital returned to shareholders was $115 million, consisting of the repurchase of 1.7 million shares for $100 million, and dividends of $15 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insurance Segment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Insurance segment adjusted operating income was $66 million for fourth quarter 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Gross written premiums (GWP) were $131 million for fourth quarter 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Present value of new business production (PVP)<sup>(2)</sup> was $135 million for fourth quarter 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Asset Management Segment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Asset Management segment adjusted operating loss was $3 million and assets under management (AUM) inflows were $23 million for fourth quarter 2022.

**Full Year (FY) 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• GAAP Highlights:** Net income attributable to Assured Guaranty Ltd. was $124 million, or $1.92 per share, for FY 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Non-GAAP Highlights:** Adjusted operating income was $267 million, or $4.14 per share, for FY 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Return of Capital to Shareholders:** FY 2022 capital returned to shareholders was $567 million, consisting of the repurchase of 8.8 million shares (or approximately 13% of shares outstanding at the beginning of 2022) for $503 million, and dividends of $64 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insurance Segment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Insurance segment adjusted operating income was $413 million for FY 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** GWP were $360 million for FY 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** PVP was $375 million for FY 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Asset Management Segment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Asset Management segment adjusted operating loss was $6 million and AUM inflows were $1.4 billion<sup>(3)</sup> for FY 2022.

Hamilton, Bermuda, February 28, 2023 -- Assured Guaranty Ltd. (NYSE: AGO) (AGL and, together with its consolidated entities, Assured Guaranty or the Company) announced today its financial results for the three-month period ended December 31, 2022 (fourth quarter 2022) and the year ended December 31, 2022 (FY 2022).

"Assured Guaranty performed well in 2022," said Dominic Frederico, President and CEO. "Our insurance business saw a solid performance from our U.S public, international infrastructure and global structured finance sectors, producing $360 million in gross written premiums, or $375 million of total PVP, making 2022 the fifth consecutive year in which we generated more than $350 million of GWP and PVP.

"We reached settlement agreements for all but one of the defaulting Puerto Rico entities in our insured portfolio, and our Puerto Rico insured exposure in total decreased by $2.2 billion. Additionally, we continued to demonstrate thoughtful capital management, while returning $567 million to shareholders through share repurchases and

(1)&nbsp;&nbsp;&nbsp;&nbsp;All per share information for net income and adjusted operating income is based on diluted shares.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Please see "Explanation of Non-GAAP Financial Measures."

(3)&nbsp;&nbsp;&nbsp;&nbsp;Net of transfers between funds managed by Assured Investment Management LLC and its investment management affiliates (AssuredIM Funds).

------

dividends. The share repurchases reduced our shares outstanding by almost 13% from shares outstanding at year-end 2021."

**Summary Financial Results**

(in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **GAAP** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL** | $**94** | $**263** | $**124** | $**389** |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL<br>per diluted share** | $**1.52** | $**3.74** | $**1.92** | $**5.23** |
| &nbsp;&nbsp;&nbsp;**Weighted average diluted shares** | **61.0** | **70.4** | **63.9** | **74.3** |
| Non-GAAP |  |  |  |  |
| &nbsp;&nbsp;Adjusted operating income (loss) <sup>(1)</sup>  | $14 | $273 | $267 | $470 |
| &nbsp;&nbsp;Adjusted operating income per diluted share <sup>(1)</sup> | $0.22 | $3.88 | $4.14 | $6.32 |
| &nbsp;&nbsp;Weighted average diluted shares | 61.0 | 70.4 | 63.9 | 74.3 |
| Gain (loss) related to FG VIE and CIV consolidation<sup>(2)</sup> included in adjusted operating income | $(13) | $30 | $(6) | $30 |
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income per share | $(0.22) | $0.43 | $(0.10) | $0.41 |
| **Components of total adjusted operating income (loss)** |  |  |  |  |
| &nbsp;&nbsp;Insurance segment | $66 | $277 | $413 | $722 |
| &nbsp;&nbsp;Asset Management segment | (3) | (3) | (6) | (19) |
| &nbsp;&nbsp;Corporate division | (36) | (31) | (134) | (263) |
| &nbsp;&nbsp;Other | (13) | 30 | (6) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating income (loss) | $14 | $273 | $267 | $470 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| | **Amount** | **Per Share** | **Amount** | **Per Share** |
| **Shareholders' equity attributable to AGL** | $**5064** | $**85.80** | $**6292** | $**93.19** |
| Adjusted operating shareholders' equity <sup>(1)</sup> | 5543 | 93.92 | 5991 | 88.73 |
| ABV <sup>(1)</sup> | 8379 | 141.98 | 8823 | 130.67 |
| **Common Shares Outstanding** | **59.0** |  | **67.5** |  |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Please see "Explanation of Non-GAAP Financial Measures" at the end of this press release.

(2)&nbsp;&nbsp;&nbsp;&nbsp;The effect of consolidating financial guaranty (FG) variable interest entities (VIEs) (FG VIEs) and consolidated investment vehicles (CIVs).

On a per share basis, shareholders' equity attributable to AGL was $85.80 as of December 31, 2022, which was lower than shareholders' equity attributable to AGL of $93.19 as of December 31, 2021, primarily due to unrealized losses on the investment portfolio that resulted from rising interest rates.

On a per share basis, adjusted operating shareholders' equity increased to $93.92 as of December 31 2022 from $88.73 as of December 31, 2021, and ABV increased to $141.98 as of December 31, 2022 from $130.67 as of December 31, 2021, primarily due to the accretive effect of the share repurchase program, and in the case of ABV, net premiums written and favorable loss development. See "Common Share Repurchases" on page 15.

------

**Fourth Quarter 2022**

***Insurance Segment***

The Insurance segment primarily consists of the Company's insurance subsidiaries that provide credit protection products to the United States (U.S.) and non-U.S. public finance (including infrastructure) and structured finance markets.

**Insurance Segment Results**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **Segment revenues** |  |  |
| Net earned premiums and credit derivative revenues | $111 | $111 |
| Net investment income | 80 | 67 |
| Fair value gains (losses) on trading securities | (4) |  |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 6 | 4 |
| &nbsp;&nbsp;**Total segment revenues** | 193 | 182 |
| **Segment expenses** |  |  |
| Loss expense (benefit) | 44 | (161) |
| Amortization of deferred acquisition costs (DAC) | 3 | 4 |
| Employee compensation and benefit expenses | 41 | 37 |
| Other operating expenses | 24 | 22 |
| &nbsp;&nbsp;**Total segment expenses** | 112 | (98) |
| Equity in earnings (losses) of investees | (5) | 44 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | 76 | 324 |
| Less: Provision (benefit) for income taxes | 10 | 47 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss)** | $66 | $277 |

---

Insurance segment adjusted operating income was $66 million in fourth quarter 2022, compared with $277 million in the three-month period ended December 31, 2021 (fourth quarter 2021). The variance was primarily attributable to loss expense and changes in net asset values of alternative investments reported in "equity in earnings (losses) of investees", as shown in the table above. The components of premiums, losses and income from the investment portfolio are presented below.

*Insurance Segment Net Earned Premiums and Credit Derivative Revenues*

**Insurance Segment**

**Net Earned Premiums and Credit Derivative Revenues**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Scheduled net earned premiums and credit derivative revenues | $77 | $91 |
| Accelerations - Puerto Rico | 29 |  |
| Accelerations | 5 | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $111 | $111 |

---

------

Net earned premiums attributable to accelerations increased in fourth quarter 2022 compared with fourth quarter 2021 primarily due to the resolution of Puerto Rico Highways and Transportation Authority exposures, offset by declines in scheduled net earned premiums due to the effect of terminations and refundings since the fourth quarter of 2021 on recurring net earned premiums.

*Insurance Segment Loss Expense (Benefit) and the Rollforward of Expected Losses*

The table below presents the loss expense (benefit) recognized in the Insurance segment's adjusted operating income.

**Insurance Segment**

**Loss Expense (Benefit)**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Public finance | $58 | $(153) |
| U.S. residential mortgage-backed securities (RMBS) | (16) | (16) |
| Other structured finance | 2 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $44 | $(161) |

---

The table below presents the rollforward of expected losses for fourth quarter 2022.

 **Roll Forward of Net Expected Loss to be Paid (Recovered)**<sup>(1)</sup>

(in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Expected Loss to be Paid (Recovered) as of September 30, 2022** | **Economic Loss Development (Benefit)** | **Net (Paid) Recovered Losses** | **Net Expected Loss to be Paid (Recovered) as of December 31, 2022** |
| Public finance | $632 | $39 | $(259) | $412 |
| U.S. RMBS | 52 | (16) | 30 | 66 |
| Other structured finance | 43 |  | 1 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $727 | $23 | $(228) | $522 |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Economic loss development (benefit) represents the change in net expected loss to be paid (recovered) attributable to the effects of changes in the economic performance of insured transactions, changes in assumptions based on observed market trends, changes in discount rates, accretion of discount and the economic effects of loss mitigation efforts, each net of reinsurance. Economic loss development (benefit) is the principal measure that the Company uses to evaluate the loss experience in its insured portfolio. Expected loss to be paid (recovered) includes all transactions insured by the Company, regardless of the accounting model prescribed under accounting principles generally accepted in the United States of America (GAAP) and without consideration of deferred premium revenue.

Loss expense (benefit) is a function of economic loss development (benefit), as well as the amortization of deferred premium revenue. In fourth quarter 2022 loss expense in the public finance sector was $58 million and the economic development was a loss of $39 million. Public finance economic development was primarily due to certain Puerto Rico exposures. The difference between public finance loss expense and public finance economic development was primarily attributable to the release of deferred premium revenue associated with extinguished Puerto Rico policies.

The economic benefit in fourth quarter 2022 for U.S. RMBS was $16 million, primarily attributable to higher recoveries on previously charged-off loans and improved performance in certain transactions.

In fourth quarter 2021 the Company sold a portion of its salvage and subrogation recoverables associated with certain matured Puerto Rico exposures, and increased its assumptions for the value of recoveries to be received in

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2022 in connection with the resolution of general obligation bonds of the Commonwealth of Puerto Rico and obligations of its related authorities and public corporations, the Public Buildings Authority, the Convention Center District Authority, the Infrastructure Financing Authority and the Highways and Transportation Authority under the Puerto Rico Oversight, Management, and Economic Stability Act (2022 Puerto Rico Resolutions) resulting in a benefit in loss expenses.

*Insurance Segment Income from Investment Portfolio*

**Insurance Segment**

**Income from Investment Portfolio**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Net investment income | $80 | $67 |
| Fair value gains (losses) on trading securities <sup>(1)</sup> | (4) |  |
| Equity in earnings (losses) of investees: |  |  |
| &nbsp;&nbsp;AssuredIM Funds | 3 | 10 |
| &nbsp;&nbsp;Other alternative investments | (8) | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $71 | $111 |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Contingent value instruments (CVIs) issued by Puerto Rico that were received as part of the 2022 Puerto Rico Resolutions are classified as trading securities with changes in fair value reported in the consolidated statements of operations.

Net investment income, which represents interest income on fixed-maturity debt securities and short-term investments, increased to $80 million in fourth quarter 2022 from $67 million in fourth quarter 2021, primarily due to rising interest rates on short-term investments.

In the Insurance segment, investments in AssuredIM Funds are recorded at net asset value (NAV), with the change in NAV reported in "equity in earnings (losses) of investees." Equity in earnings of AssuredIM Funds is mainly generated by healthcare, collateralized loan obligations (CLOs) and asset-based funds. As of December 31, 2022, the Insurance segment had invested $569 million (at fair value) in AssuredIM Funds, and inception-to-date realized and unrealized gains on AssuredIM Funds totaled $110 million. Equity in earnings of other alternative investments was a loss in fourth quarter 2022, primarily attributable to a private equity fund.

Equity in earnings of AssuredIM Funds was a gain of $10 million in fourth quarter 2021, primarily attributable to higher valuations of assets held in the asset-based fund that was launched in 2021. Equity in earnings of other alternative investments was a gain of $34 million in fourth quarter 2021, mainly attributable to a large fair value gain on a specific investment in a private equity fund.

Equity in earnings of investees is more volatile than net investment income on fixed-maturity securities and short-term investments. To the extent that the amounts invested in AssuredIM Funds and other alternative investments increase and available-for-sale fixed-maturity securities decrease, net investment income may decline and mark-to-market volatility may increase.

*Insurance Segment New Business Production* 

PVP, a non-GAAP financial measure, measures the value of the Insurance segment's new business production for all contracts regardless of form or GAAP accounting model. See "Explanation of Non-GAAP Financial Measures" at the end of this press release.

------

**Insurance Segment**

**New Business Production**

(in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Quarter Ended December 31,** | **Quarter Ended December 31,** |
| | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
| | **GWP** | **PVP** <sup>(1)</sup> | **Gross Par Written** <sup>(1)</sup> | **GWP** | **PVP** <sup>(1)</sup> | **Gross Par Written** <sup>(1)</sup> |
| Public finance - U.S. | $**88** | $94 | $5819 | $**71** | $70 | $5947 |
| Public finance - non-U.S. | **9** | 1 |  | **19** | 16 |  |
| Structured finance - U.S. | **33** | 40 | 971 | **8** | 10 | 375 |
| Structured finance - non-U.S. | **1** |  | 245 | **2** | 2 | 164 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**131** | $135 | $7035 | $**100** | $98 | $6486 |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;PVP and Gross Par Written in the table above are based on "close date," when the transaction settles.

U.S. public finance GWP and PVP in fourth quarter 2022, was higher than the comparable GWP and PVP in fourth quarter 2021, primarily due to several large transactions in the healthcare and infrastructure sector in fourth quarter 2022. The Company's direct par written represented 70% of the total U.S. municipal market insured issuance in fourth quarter 2022, compared with 61% in fourth quarter 2021, and the Company's penetration of all municipal issuance increased to 6.1% in fourth quarter 2022 from 4.6% in fourth quarter 2021.

Fourth quarter 2022 structured finance GWP and PVP were primarily attributable to insurance securitization transactions, and commercial real estate and pooled corporate obligations.

***Asset Management Segment***

In the Asset Management segment, the Company provides investment advisory services, which include the management of CLOs and opportunity funds, as well as certain legacy hedge and opportunity funds now subject to an orderly wind-down. The Asset Management segment was affected by the challenging global economy and financial markets and the widening of CLO spreads, as well as the runoff of our legacy funds and certain strategic limitations during the year.

The Company is exploring alternative accretive growth strategies for its asset management business, with the goal of maximizing the value of this business for its stakeholders. The Company remains committed to growing asset management-related earnings and is pursuing strategies that would provide it with an avenue for such growth. Discussions regarding alternative accretive growth strategies are ongoing, and there can be no assurance that such discussions will result in any transaction.

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**Asset Management Segment Results**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **Segment revenues** |  |  |
| Management fees: |  |  |
| &nbsp;&nbsp;CLOs <sup>(1)</sup> | $12 | $12 |
| &nbsp;&nbsp;Opportunity funds and liquid strategies | 6 | 7 |
| &nbsp;&nbsp;Wind-down funds | 1 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total management fees | 19 | 21 |
| Performance fees | 1 |  |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 4 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total segment revenues** | 24 | 23 |
| **Segment expenses** |  |  |
| Employee compensation and benefit expenses | 18 | 14 |
| Interest expense | 1 | 1 |
| Other operating expenses <sup>(2)</sup> | 9 | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total segment expenses** | 28 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | (4) | (3) |
| Less: Provision (benefit) for income taxes | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Segment adjusted operating income (loss)** | $(3) | $(3) |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;CLO fees are the net management fees that AssuredIM retains after rebating the portion of these fees that pertains to the CLO equity that is held directly by AssuredIM Funds.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes amortization of intangible assets of $3 million in both fourth quarter 2022 and fourth quarter 2021.

**Roll Forward of Assets Under Management**

(in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **CLOs** | **Opportunity Funds** | **Liquid Strategies** | **Wind-Down Funds** | **Total** |
| **AUM, September 30, 2022** | $**14951** | $**2018** | $**367** | $**208** | $**17544** |
| Inflows - third party |  | 23 |  |  | 23 |
| Inflows - intercompany |  |  |  |  |  |
| Outflows: |  |  |  |  |  |
| &nbsp;&nbsp;Redemptions |  |  |  |  |  |
| &nbsp;&nbsp;Distributions | (14) | (100) | (127) | (10) | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total outflows | (14) | (100) | (127) | (10) | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | (14) | (77) | (127) | (10) | (228) |
| Change in value | 213 | (57) | 8 | (16) | 148 |
| **AUM, December 31, 2022** | $**15150** | $**1884** | $**248** | $**182** | $**17464** |

---

***Corporate Division***

The Corporate division primarily consists of interest expense on the debt of Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings Inc. (AGMH), as well as other operating expenses attributed to holding company activities. Adjusted operating loss for the Corporate division was $36 million in fourth quarter 2022 compared with $31 million in fourth quarter 2021.

------

***Other (Effect of FG VIE and CIV consolidation)***

The effect of consolidating FG VIEs and CIVs in fourth quarter 2022 was a $5 million loss related to FG VIE consolidation and a $8 million loss related to CIV consolidation. In fourth quarter 2021 the effect of consolidating FG VIEs and CIVs was a gain of $30 million primarily related to a pre-tax gain on consolidation of an AssuredIM healthcare fund.

***Reconciliation to GAAP***

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

**Reconciliation of Net Income (Loss) Attributable to AGL to** 

**Adjusted Operating Income (Loss)**

(in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** | **Quarter Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2022** | **2021** | **2021** |
| | **Total** | **Per Diluted Share** | **Total** | **Per Diluted Share** |
| **Net income (loss) attributable to AGL** | $**94** | $**1.52** | $**263** | $**3.74** |
| Less pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;Realized gains (losses) on investments | (17) | (0.29) | 11 | 0.16 |
| &nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 28 | 0.47 | (23) | (0.32) |
| &nbsp;&nbsp;Fair value gains (losses) on committed capital securities (CCS) | 12 | 0.19 |  | (0.01) |
| &nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and loss adjustment expense (LAE) reserves | 70 | 1.13 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | 93 | 1.50 | (12) | (0.17) |
| Less tax effect on pre-tax adjustments | (13) | (0.20) | 2 | 0.03 |
| Adjusted operating income (loss) | $14 | $0.22 | $273 | $3.88 |
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $(13) | $(0.22) | $30 | $0.43 |

---

Non-credit impairment-related unrealized fair value gains on credit derivatives in fourth quarter 2022 were primarily due to a general decrease in credit spreads of the underlying reference obligations, offset in part by a decrease in the Company's own credit spreads and the effects of foreign exchange movements. Non-credit impairment-related unrealized fair value losses on credit derivatives in fourth quarter 2021 related primarily to a decrease in the Company's own credit spread. Except for credit impairment, 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.

Fair value gains on CCS in fourth quarter 2022 related primarily to increase in London Interbank Offered Rate (LIBOR). Fair value of CCS is heavily affected by, and in part fluctuates with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

Foreign exchange gains in fourth quarter 2022 primarily relate to remeasurement of premiums receivable and are mainly due to changes in the exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

------

**Full Year 2022**

***Insurance Segment***

**Insurance Segment Results**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **Segment revenues** |  |  |
| Net earned premiums and credit derivative revenues | $508 | $438 |
| Net investment income | 278 | 280 |
| Fair value gains (losses) on trading securities | (34) |  |
| Commutation gains (losses) | 2 |  |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 3 | 15 |
| &nbsp;&nbsp;**Total segment revenues** | 757 | 733 |
| **Segment expenses** |  |  |
| Loss expense (benefit) | 12 | (221) |
| Interest expense | 1 |  |
| Amortization of DAC | 14 | 14 |
| Employee compensation and benefit expenses | 148 | 142 |
| Write-off of Municipal Assurance Corp. insurance licenses |  | 16 |
| Other operating expenses | 84 | 82 |
| &nbsp;&nbsp;**Total segment expenses** | 259 | 33 |
| Equity in earnings (losses) of investees | (51) | 144 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | 447 | 844 |
| Less: Provision (benefit) for income taxes | 34 | 122 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss)** | $413 | $722 |

---

Insurance segment adjusted operating income for FY 2022 was $413 million, compared with $722 million for the year ended December 31, 2021 (FY 2021). The decrease was mainly attributable to loss expense and changes in net asset values for alternative investments reported in "equity in earnings (losses) of investees", offset in part by higher net earned premiums and credit derivative revenues, as shown in the table above. The components of premiums, losses and income from the investment portfolio are presented below.

*Insurance Segment Net Earned Premiums and Credit Derivative Revenues*

**Insurance Segment**

**Net Earned Premiums and Credit Derivative Revenues**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Scheduled net earned premiums and credit derivative revenues | $327 | $372 |
| Accelerations - Puerto Rico | 133 |  |
| Accelerations | 48 | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $508 | $438 |

---

------

Net earned premiums attributable to accelerations increased in FY 2022 compared with FY 2021 primarily due to the 2022 Puerto Rico Resolutions, offset by declines in scheduled net earned premiums due to the effect of Puerto Rico and certain other terminations and refundings on recurring scheduled net earned premiums, the scheduled decline of the legacy structured finance book of business, and updates to debt service assumptions in 2022.

*Insurance Segment Loss Expense (Benefit) and the Rollforward of Expected Losses*

**Insurance Segment**

**Loss Expense (Benefit)**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Public finance | $128 | $(155) |
| U.S. RMBS | (120) | (84) |
| Other structured finance | 4 | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $12 | $(221) |

---

**Roll Forward of Net Expected Loss to be Paid (Recovered)**

(in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Expected Loss to be Paid (Recovered) as of December 31, 2021** | **Economic Loss <br>Development <br>(Benefit)** | **Net (Paid) Recovered Losses** <sup>(1)</sup> | **Net Expected Loss to be Paid (Recovered) as of December 31, 2022** |
| Public finance | $209 | $17 | $186 | $412 |
| U.S. RMBS | 150 | (143) | 59 | 66 |
| Other structured finance | 52 | 1 | (9) | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $411 | $(125) | $236 | $522 |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes recoveries received as part of the 2022 Puerto Rico Resolutions.

In FY 2022 loss expense in the public finance sector was $128 million and the economic development was a loss of $17 million, both primarily attributable to Puerto Rico exposures offset in part by the effects of changes in discount rates. The difference between public finance loss expense and public finance economic development was primarily attributable to the release of unearned premium reserves associated with extinguished Puerto Rico policies. The U.S. RMBS economic benefit of $143 million was primarily attributable to changes in discount rates, improved performance of certain transactions, higher recoveries on charged-off second lien loans, the purchase of a loss mitigation security, and updates in projected default curves, partially offset by lower excess spread. The economic development attributable to changes in discount rates across all sectors was a benefit of $115 million in FY 2022.

In FY 2021 loss expense for public finance transactions was a benefit of $155 million, and the economic benefit for public finance transactions was $204 million, primarily due to Puerto Rico exposures. In fourth quarter 2021 the Company sold a portion of its salvage and subrogation recoverable assets associated with Puerto Rico exposures. It also increased its assumptions for the value of recoveries to be received in 2022 under the 2022 Puerto Rico Resolutions, and incorporated refinements in certain terms of the Puerto Rico support agreements, resulting in a net benefit in loss expense. The FY 2021 U.S. RMBS economic benefit of $100 million was primarily attributable to higher projected recoveries on charged-off second lien loans, improved performance of certain transactions, the implementation of a recovery assumption on certain deferred principal balances in first lien loans and changes in discount rates, partially offset by lower excess spread. The economic development attributable to changes in discount rates across all sectors was a benefit of $33 million in FY 2021.

------

*Insurance Segment Income from Investment Portfolio*

**Insurance Segment**

**Income from Investment Portfolio**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| Net investment income | $278 | $280 |
| Fair value gains (losses) on trading securities | (34) |  |
| Equity in earnings (losses) of investees: |  |  |
| &nbsp;&nbsp;AssuredIM Funds | (10) | 80 |
| &nbsp;&nbsp;Other | (41) | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $193 | $424 |

---

Net investment income was consistent in FY 2022 compared with FY 2021. FY 2022 losses on CVIs received as part of the 2022 Puerto Rico Resolutions, and classified as trading securities, were $34 million. Equity in earnings of AssuredIM Funds in FY 2022 was a loss primarily attributable to the dilutive impact of a subsequent close of a healthcare fund, which increased revenues in the Asset Management segment. Equity in earnings of other alternative investments generated losses of $41 million in FY 2022 primarily due to mark-to-market losses in a private equity fund.

Equity in earnings of AssuredIM Funds in FY 2021 was primarily attributable to higher valuations of assets held in: (i) the healthcare fund that opened at the end of 2020; (ii) CLO funds; and (iii) the asset-based fund that was launched in the third quarter of 2021. Equity in earnings of other alternative investments generated gains of $64 million in FY 2021 primarily due to a large fair value gain on a specific investment in a private equity fund.

*Insurance Segment New Business Production* 

**Insurance Segment**

**New Business Production**

(in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
| | **GWP** | **PVP** <sup>(1)</sup> | **Gross Par Written** | **GWP** | **PVP** | **Gross Par Written** |
| Public finance - U.S. | $**248** | $257 | $19801 | $**231** | $235 | $23793 |
| Public finance - non-U.S. | **75** | 68 | 624 | **89** | 79 | 1117 |
| Structured finance - U.S. | **37** | 43 | 1077 | **51** | 42 | 1316 |
| Structured finance - non-U.S. | **—** | 7 | 545 | **6** | 5 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**360** | $375 | $22047 | $**377** | $361 | $26656 |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;In 2022, the maximum potential exposure under a financial guarantee (not accounted for as insurance) is included in non-U.S. structured finance.

U.S. public finance GWP increased in FY 2022 to $248 million from $231 million in FY 2021, and the corresponding PVP increased in FY 2022 to $257 million from $235 million in FY 2021. The increase was primarily due to a higher proportion of secondary market transactions. The Company's direct par written represented 59% of the total U.S. municipal market insured issuance in FY 2022, compared with 60% in FY 2021, and the Company's penetration of all municipal issuance was 4.7% in FY 2022, compared with 5.0% in FY 2021.

------

In FY 2022, non-U.S. public finance GWP and PVP included the restructuring of several existing transactions that resulted in additional GWP and PVP, without an increase in gross par, and several large transactions involving secondary market guarantees for institutional investors and banks, and a United Kingdom water utility liquidity guarantee.

FY 2022 structured finance GWP and PVP were primarily attributable to large insurance securitization transactions and pooled corporate obligations. PVP also includes a guarantee of rental income cash flows.

***Asset Management Segment***

**Asset Management Segment Results**

(in millions)

---

| | | |
|:---|:---|:---|
| | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** |
| | **2022** | **2021** |
| **Segment revenues** |  |  |
| Management fees: |  |  |
| &nbsp;&nbsp;CLOs <sup>(1)</sup> | $48 | $48 |
| &nbsp;&nbsp;Opportunity funds and liquid strategies | 35 | 20 |
| &nbsp;&nbsp;Wind-down funds | 2 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total management fees | 85 | 76 |
| Performance fees | 21 | 1 |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 6 | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total segment revenues** | 112 | 83 |
| **Segment expenses** |  |  |
| Employee compensation and benefit expenses | 80 | 67 |
| Interest expense | 1 | 1 |
| Other operating expenses <sup>(2)</sup> | 38 | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total segment expenses** | 119 | 108 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | (7) | (25) |
| Less: Provision (benefit) for income taxes | (1) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Segment adjusted operating income (loss)** | $(6) | $(19) |

---

________________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;CLO fees are the net management fees that AssuredIM retains after rebating the portion of these fees that pertains to the CLO equity that is held directly by AssuredIM Funds.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes amortization of intangible assets of $11 million in FY 2022 and $12 million in FY 2021.

Asset Management segment adjusted operating loss was $6 million for FY 2022, compared with adjusted operating loss of $19 million for FY 2021. The improvement in Asset Management segment results is primarily attributable to an increase in opportunity fund management and performance fees.

------

**Roll Forward of Assets Under Management**

(in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **CLOs** <sup>(1)</sup> | **Opportunity Funds** <sup>(2)</sup> | **Liquid Strategies** <sup>(3)</sup> | **Wind-Down Funds** | **Total** |
| **AUM, December 31, 2021** | $**14699** | $**1824** | $**389** | $**582** | $**17494** |
| Inflows - third party | 1049 | 315 | 21 |  | 1385 |
| Inflows - intercompany | 165 |  | 105 |  | 270 |
| Outflows: |  |  |  |  |  |
| &nbsp;&nbsp;Redemptions |  |  |  |  |  |
| &nbsp;&nbsp;Distributions | (525) | (290) | (252) | (399) | (1466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total outflows | (525) | (290) | (252) | (399) | (1466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | 689 | 25 | (126) | (399) | 189 |
| Change in value | (238) | 35 | (15) | (1) | (219) |
| **AUM, December 31, 2022** | $**15150** | $**1884** | $**248** | $**182** | $**17464** |

---

_____________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;CLOs inflows and outflows include $105 million related to the transfer of assets between two CLO funds.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Distributions from opportunity funds include $115 million related to the AssuredIM Funds created prior to the acquisition of BlueMountain Capital Management, LLC (now known as AssuredIM LLC). As of December 31, 2022, AUM related to these funds was $68 million.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Liquid strategies' inflows and outflows in 2022 relate to the transfer of assets between funds.

**Components of**

**Assets Under Management** <sup>(1)</sup>

(in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2021** |
| Funded AUM | $16672 | $16821 |
| Unfunded AUM | 792 | 673 |
| Fee earning AUM | $16795 | $16576 |
| Non-fee Earning AUM | 669 | 918 |
| Intercompany AUM |  |  |
| &nbsp;&nbsp;Funded AUM <sup>(2)</sup> | $1022 | $1126 |
| &nbsp;&nbsp;Unfunded AUM | 218 | 244 |

---

_______________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Please see "Definitions" at the end of this press release.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes assets managed by AssuredIM under an Investment Management Agreement with its insurance affiliates of $558 million in investment-grade CLO and liquid municipal strategies as of December 31, 2022 and of $574 million as of December 31, 2021.

***Corporate Division***

Adjusted operating loss for the Corporate division was $134 million in FY 2022 compared with an adjusted operating loss of $263 million in FY 2021. The Corporate division loss in FY 2021 was primarily due to the loss on extinguishment of debt of $175 million on a pre-tax basis ($138 million after-tax) associated with the redemption of AGMH and AGUS debt, which represented the difference between the amount paid to redeem the debt and the carrying value of the debt.

------

***Other (Effect of FG VIE and CIV consolidation)***

The effect of consolidating FG VIEs and CIVs in FY 2022 consisted of a $4 million gain related to FG VIE consolidation and a $10 million loss related to CIV consolidation. In FY 2021 the effect of consolidating FG VIEs and CIVs was a gain of $30 million primarily related to a pre-tax gain on consolidation of an AssuredIM healthcare fund.

***Reconciliation to GAAP***

The following table presents a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

**Reconciliation of Net Income (Loss) Attributable to AGL to** 

**Adjusted Operating Income (Loss)**

(in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2022** | **2021** | **2021** |
| | **Total** | **Per Diluted Share** | **Total** | **Per Diluted Share** |
| **Net income (loss) attributable to AGL** | $**124** | $**1.92** | $**389** | $**5.23** |
| Less pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;Realized gains (losses) on investments | (56) | (0.87) | 15 | 0.20 |
| &nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (18) | (0.27) | (64) | (0.85) |
| &nbsp;&nbsp;Fair value gains (losses) on CCS | 24 | 0.37 | (28) | (0.38) |
| &nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (110) | (1.72) | (21) | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | (160) | (2.49) | (98) | (1.32) |
| Less tax effect on pre-tax adjustments | 17 | 0.27 | 17 | 0.23 |
| Adjusted operating income (loss) | $267 | $4.14 | $470 | $6.32 |
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $(6) | $(0.10) | $30 | $0.41 |

---

Realized losses on investments in FY 2022 primarily relate to losses on sales of Puerto Rico recovery bonds and credit impairment in 2022 on obligations that the Company has insured and for which it had expected losses to be paid, that the Company purchases in order to mitigate the economic effect of insured losses (Loss Mitigation Securities).

Non-credit impairment-related unrealized fair value losses on credit derivatives in FY 2022 were generated primarily as a result of wider asset spreads, partially offset by the increased cost to buy protection on AGC, and changes in discount rates. Non-credit impairment-related unrealized fair value losses on credit derivatives in FY 2021 primarily related to the lower cost to buy protection on the Company's name.

Fair value gains on CCS in FY 2022 were primarily driven by an increase in LIBOR during 2022. Fair value losses on CCS in FY 2021 were primarily driven by tightened market spreads during 2021.

Foreign exchange losses in both periods primarily relate to remeasurement of premiums receivable and are mainly due to changes in exchange rates relative to the U.S. dollar of the pound sterling and, to a lesser extent, the euro.

------

**Common Share Repurchases**

**Summary of Share Repurchases**

(in millions, except per share amounts)

---

| | | | |
|:---|:---|:---|:---|
| | **Amount** | **Number of Shares** | **Average Price Per Share** |
| 2022 (January 1 - March 31) | $155 | 2.74 | $56.62 |
| 2022 (April 1 - June 30) | 151 | 2.61 | 58.03 |
| 2022 (July 1 - September 30) | 97 | 1.79 | 53.77 |
| 2022 (October 1 - December 31) | 100 | 1.71 | 58.34 |
| &nbsp;&nbsp;Total 2022 | $503 | 8.85 | 56.79 |
| 2023 (January 1 - February 28) | $2 | 0.04 | $62.23 |

---

From 2013 through February 28, 2023, the Company has repurchased 141 million common shares at an average price of $33.09, representing approximately 73% of the total shares outstanding at the beginning of the repurchase program in 2013. On February 23, 2022 and August 3, 2022, the Board authorized the repurchase of an additional $350 million and $250 million, respectively, of its common shares. As of February 28, 2023, the Company was authorized to purchase $201 million of its common shares. These repurchases can be made from time to time in the open market or in privately negotiated transactions.

The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, other potential uses for such funds, market conditions, the Company's capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board of Directors at any time. It does not have an expiration date.

------

**Financial Statements**

**Consolidated Statements of Operations (unaudited)**

(in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Quarter Ended** | **Quarter Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;Net earned premiums | $109 | $107 | $494 | $414 |
| &nbsp;&nbsp;Net investment income | 78 | 65 | 269 | 269 |
| &nbsp;&nbsp;Asset management fees | 22 | 23 | 93 | 88 |
| &nbsp;&nbsp;Net realized investment gains (losses) | (17) | 11 | (56) | 15 |
| &nbsp;&nbsp;Fair value gains (losses) on credit derivatives | 31 | (27) | (11) | (58) |
| &nbsp;&nbsp;Fair value gains (losses) on CCS | 12 |  | 24 | (28) |
| &nbsp;&nbsp;Fair value gains (losses) on FG VIEs | (5) | 5 | 22 | 23 |
| &nbsp;&nbsp;Fair value gains (losses) on CIVs | (8) | 74 | 17 | 127 |
| &nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement | 69 | (1) | (112) | (23) |
| &nbsp;&nbsp;Fair value gains (losses) on trading securities | (4) |  | (34) |  |
| &nbsp;&nbsp;Commutation gains (losses) |  |  | 2 |  |
| &nbsp;&nbsp;Other income (loss) | 5 | 6 | 15 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | 292 | 263 | 723 | 848 |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;Loss and LAE (benefit) | 45 | (166) | 16 | (220) |
| &nbsp;&nbsp;Interest expense | 21 | 20 | 81 | 87 |
| &nbsp;&nbsp;Loss on extinguishment of debt |  |  |  | 175 |
| &nbsp;&nbsp;Amortization of DAC | 3 | 4 | 14 | 14 |
| &nbsp;&nbsp;Employee compensation and benefit expenses | 69 | 57 | 258 | 230 |
| &nbsp;&nbsp;Other operating expenses | 47 | 44 | 167 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | 185 | (41) | 536 | 465 |
| **Income (loss) before income taxes and equity in earnings (losses) of investees** | 107 | 304 | 187 | 383 |
| Equity in earnings (losses) of investees | (8) | 28 | (39) | 94 |
| **Income (loss) before income taxes** | 99 | 332 | 148 | 477 |
| Less: Provision (benefit) for income taxes | 17 | 50 | 11 | 58 |
| **Net income (loss)** | 82 | 282 | 137 | 419 |
| Less: Noncontrolling interests | (12) | 19 | 13 | 30 |
| **Net income (loss) attributable to AGL** | $**94** | $**263** | $**124** | $**389** |

---

------

**Consolidated Balance Sheets (unaudited)**

(in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2021** |
| **Assets** | | |
| Investments: |  |  |
| &nbsp;&nbsp;Fixed-maturity securities, available-for-sale, at fair value | $7119 | $8202 |
| &nbsp;&nbsp;Fixed-maturity securities, trading, at fair value | 303 |  |
| &nbsp;&nbsp;Short-term investments, at fair value | 810 | 1225 |
| &nbsp;&nbsp;Other invested assets | 133 | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 8365 | 9608 |
| Cash | 107 | 120 |
| Premiums receivable, net of commissions payable | 1298 | 1372 |
| DAC | 147 | 131 |
| Salvage and subrogation recoverable | 257 | 801 |
| FG VIEs' assets, at fair value | 416 | 260 |
| Assets of CIVs | 5493 | 5271 |
| Goodwill and other intangible assets | 163 | 175 |
| Other assets | 597 | 470 |
| &nbsp;&nbsp;**Total assets** | $**16843** | $**18208** |
| **Liabilities** |  |  |
| Unearned premium reserve | $3620 | $3716 |
| Loss and LAE reserve | 296 | 869 |
| Long-term debt | 1675 | 1673 |
| Credit derivative liabilities, at fair value | 163 | 156 |
| FG VIEs' liabilities, at fair value | 715 | 289 |
| Liabilities of CIVs | 4625 | 4436 |
| Other liabilities | 457 | 569 |
| &nbsp;&nbsp;**Total liabilities** | **11551** | **11708** |
| **Redeemable noncontrolling interests** | **—** | **22** |
| **Shareholders' equity** |  |  |
| Common shares | 1 | 1 |
| Retained earnings | 5577 | 5990 |
| Accumulated other comprehensive income (loss) | (515) | 300 |
| Deferred equity compensation | 1 | 1 |
| &nbsp;&nbsp;**Total shareholders' equity attributable to AGL** | **5064** | **6292** |
| &nbsp;&nbsp;Nonredeemable noncontrolling interests | 228 | 186 |
| &nbsp;&nbsp;**Total shareholders' equity** | **5292** | **6478** |
| &nbsp;&nbsp;**Total liabilities, redeemable noncontrolling interests and shareholders' equity** | $**16843** | $**18208** |

---

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**Explanation of Non-GAAP Financial Measures** 

The Company discloses both: (a) financial measures determined in accordance with GAAP; and (b) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. 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.

The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty's financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty's financial results.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CIVs in which certain subsidiaries invest and which are managed by AssuredIM.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty's financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.

Management of the Company and AGL's Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company's results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (1) adjusted operating income, further adjusted to remove the effect of FG VIE and CIV consolidation; (2) adjusted operating shareholders' equity, further adjusted to remove the effect of FG VIE and CIV consolidation; (3) adjusted book value per share, further adjusted to remove the effect of FG VIE and CIV consolidation; (4) PVP, and (5) gross third-party assets raised.

Management believes that many investors, analysts and financial news reporters use adjusted operating shareholders' equity and/or adjusted book value, 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. Management also believes that many of the Company's fixed income investors also use adjusted operating shareholders' equity, further adjusted to remove the effect of FG VIE and CIV consolidation, to evaluate the Company's capital adequacy.

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.

The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented below.

*Adjusted Operating Income*

Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

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1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of realized gains (losses) on the Company's investments, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company's discretion and influenced by market opportunities, as well as the Company's tax and capital profile.

2)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company's credit spreads and other market factors and are not expected to result in an economic gain or loss.

3)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of fair value gains (losses) on the Company's CCS that are recognized in net income. Such amounts are affected by changes in market interest rates, the Company's credit spreads, price indications on the Company's publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

4)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period's foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

5)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

See "Reconciliation to GAAP" above for a reconciliation of net income (loss) attributable to AGL to adjusted operating income (loss).

*Adjusted Operating Shareholders' Equity and Adjusted Book Value*

Management believes that adjusted operating shareholders' equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders' equity is defined as shareholders' equity attributable to AGL, as reported under GAAP, adjusted for the following:

1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

2)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of fair value gains (losses) on the Company's CCS. Such amounts are affected by changes in market interest rates, the Company's credit spreads, price indications on the Company's publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

3)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of unrealized gains (losses) on the Company's investments that are recorded as a component of accumulated other comprehensive income (AOCI). 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 recognize an economic gain or loss.

------

4) &nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Management uses adjusted book value, further adjusted for FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. Adjusted book value per share, further adjusted for FG VIE and CIV consolidation (core adjusted book value), is one of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors. Management believes that adjusted book value is a useful measure because it enables an evaluation of the Company's in-force premiums and revenues net of expected losses. Adjusted book value is adjusted operating shareholders' equity, as defined above, further adjusted for the following:

1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2)&nbsp;&nbsp;&nbsp;&nbsp;Addition of the net present value of estimated net future revenue. See below.

3)&nbsp;&nbsp;&nbsp;&nbsp;Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed, which are not reflected in GAAP equity.

4) &nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

The unearned premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.

------

**Reconciliation of GAAP Shareholders' Equity attributable to AGL to** 

**Adjusted Operating Shareholders' Equity and ABV**

(in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| | **Total** | **Per Share** | **Total** | **Per Share** |
| **Shareholders' equity attributable to AGL** | $**5064** | $**85.80** | $**6292** | $**93.19** |
| &nbsp;&nbsp;Less pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (71) | (1.21) | (54) | (0.80) |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 47 | 0.80 | 23 | 0.34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment portfolio | (523) | (8.86) | 404 | 5.99 |
| &nbsp;&nbsp;Less taxes | 68 | 1.15 | (72) | (1.07) |
| Adjusted operating shareholders' equity | 5543 | 93.92 | 5991 | 88.73 |
| &nbsp;&nbsp;Pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: DAC | 147 | 2.48 | 131 | 1.95 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: Net present value of estimated net future revenue | 157 | 2.66 | 160 | 2.37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed | 3428 | 58.10 | 3402 | 50.40 |
| &nbsp;&nbsp;Plus taxes | (602) | (10.22) | (599) | (8.88) |
| ABV | $8379 | $141.98 | $8823 | $130.67 |
| Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |
| &nbsp;&nbsp;Adjusted operating shareholders' equity | $17 | $0.28 | $32 | $0.47 |
| &nbsp;&nbsp;ABV | 11 | 0.19 | 23 | 0.34 |
| Shares outstanding at the end of the period | 59.0 |  | 67.5 |  |

---

*Net Present Value of Estimated Net Future Revenue* 

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. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.

*PVP or Present Value of New Business Production* 

Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance 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 gross written premiums 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.

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. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. 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, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.

**Reconciliation of GWP to PVP**

(in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** | **Quarter Ended December 31, 2022** |
| | &nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non-U.S.** | **U.S.** | **Non-U.S.** |<br>**Total** |
| **GWP** | $**88** | $**9** | $**33** | $**1** | $**131** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments <sup>(1)</sup> | 40 | 9 | 29 | 1 | 79 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upfront GWP | 48 |  | 4 |  | 52 |
| &nbsp;&nbsp;Plus: Installment premiums and other <sup>(2)</sup> | 46 | 1 | 36 |  | 83 |
| PVP | $94 | $1 | $40 | $— | $135 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** | **Quarter Ended December 31, 2021** |
| | &nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non-U.S.** | **U.S.** | **Non-U.S.** |<br>**Total** |
| **GWP** | $**71** | $**19** | $**8** | $**2** | $**100** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments<sup>(1)</sup> | 10 | 16 | 5 | 2 | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upfront GWP | 61 | 3 | 3 |  | 67 |
| &nbsp;&nbsp;Plus: Installment premiums and other <sup>(2)</sup> | 9 | 13 | 7 | 2 | 31 |
| PVP | $70 | $16 | $10 | $2 | $98 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| | &nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non-U.S.** | **U.S.** | **Non-U.S.** |<br>**Total** |
| **GWP** | $**248** | $**75** | $**37** | $**—** | $**360** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments<sup>(1)</sup> | 40 | 75 | 30 |  | 145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upfront GWP | 208 |  | 7 |  | 215 |
| &nbsp;&nbsp;Plus: Installment premiums and other <sup>(2)</sup> | 49 | 68 | 36 | 7 | 160 |
| PVP | $257 | $68 | $43 | $7 | $375 |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| | &nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non-U.S.** | **U.S.** | **Non-U.S.** |<br>**Total** |
| **GWP** | $**231** | $**89** | $**51** | $**6** | $**377** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments<sup>(1)</sup> | 43 | 65 | 44 | 6 | 158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upfront GWP | 188 | 24 | 7 |  | 219 |
| &nbsp;&nbsp;Plus: Installment premiums and other <sup>(2)</sup> | 47 | 55 | 35 | 5 | 142 |
| PVP | $235 | $79 | $42 | $5 | $361 |

---

________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturities such as Loss Mitigation Securities. FY 2022 also includes the present value of future premiums and fees associated with a financial guarantee written by the Company that, under GAAP, is accounted for under ASC 460, *Guarantees*.

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**AUM Definitions**

The Company uses AUM as a metric to measure progress in its Asset Management segment. Management fee revenue is based on a variety of factors and is not perfectly correlated with AUM. However, the Company believes that AUM is a useful metric for assessing the relative size and scope of the Company's asset management business. The Company uses measures of its AUM in its decision-making process and uses a measure of change in AUM in its calculation of certain components of management compensation. Investors also use AUM to evaluate companies that participate in the asset management business. AUM refers to the assets managed, advised or serviced by the Asset Management segment and equals the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of aggregate collateral balance and principal cash of AssuredIM's CLOs, including CLO Equity that may be held by AssuredIM Funds. This also includes CLO assets managed by BlueMountain Fuji Management, LLC (BM Fuji), which was sold to a third party in the second quarter of 2021. AssuredIM is not the investment manager of BM Fuji-advised CLOs, but following the sale, AssuredIM sub-advises and continues to provide personnel and other services to BM Fuji associated with the management of BM Fuji-advised CLOs pursuant to a sub-advisory agreement and a personnel and services agreement, consistent with past practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the net asset value of all funds and accounts other than CLOs, plus any unfunded commitments. Changes in NAV attributable to movements in fund value of certain private equity funds are reported on a quarter lag.

The Company's calculation of AUM may differ from the calculation employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. The calculation also differs from the manner in which AssuredIM affiliates registered with the SEC report "Regulatory Assets Under Management" on Form ADV and Form PF in various ways.

&nbsp;&nbsp;&nbsp;&nbsp;The Company also uses several other measurements of AUM to understand and measure its AUM in more detail and for various purposes, including its relative position in the market and its income and income potential:

*"Third-party AUM"* refers to the assets AssuredIM manages or advises on behalf of third-party investors. This includes current and former employee investments in AssuredIM Funds. For CLOs, this also includes CLO Equity that may be held by AssuredIM Funds.

*"Intercompany AUM"* refers to the assets AssuredIM manages or advises on behalf of the Company. This includes investments from affiliates of Assured Guaranty along with general partners' investments of AssuredIM (or its affiliates) into the AssuredIM Funds.

*"Funded AUM"* refers to assets that have been deployed or invested into the funds or CLOs.

*"Unfunded AUM"* refers to unfunded capital commitments from closed-end funds and CLO warehouse funds.

*"Fee earning AUM"* refers to assets where AssuredIM collects fees and has elected not to waive or rebate fees to investors.

*"Non-fee earning AUM"* refers to assets where AssuredIM does not collect fees or has elected to waive or rebate fees to investors. AssuredIM reserves the right to waive some or all fees for certain investors, including investors affiliated with AssuredIM and/or the Company. Further, to the extent that the Company's wind-down and/or opportunity funds are invested in AssuredIM managed CLOs, AssuredIM may rebate any management fees and/or performance fees earned from the CLOs to the extent such fees are attributable to the wind-down and opportunity funds' holdings of CLOs also managed by AssuredIM.

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**Conference Call and Webcast Information**

The Company will host a conference call for investors at 8:00 a.m. Eastern Time (9:00 a.m. Atlantic Time) on Wednesday, March 1, 2023. The conference call will be available via live webcast in the Investor Information section of the Company's website at <u>AssuredGuaranty.com</u> or by dialing 1-844-200-6205 (in the U.S.) or 1-929-526-1599 (International); the passcode is 237902.

A replay of the conference call will be available approximately three hours after the call ends. The webcast replay will be available for 90 days in the Investor Information section of the Company's website at <u>AssuredGuaranty.com</u> and the telephone replay will be available for 30 days by dialing 1-866-813-9403 (in the U.S.) or 1-929-458-6194 (International); the passcode is 439901.

Please refer to Assured Guaranty's December 31, 2022 Financial Supplement, which is posted on the Company's website at <u>assuredguaranty.com/agldata</u>, for more information on the Company's financial guaranty portfolio, investment portfolio and other items. In addition, the Company is posting at <u>assuredguaranty.com/presentations</u> its "December 31, 2022 Equity Investor Presentation."

The Company plans to post by early next week on its website at <u>assuredguaranty.com/agldata</u> the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Public Finance Transactions in 4Q 2022," which lists the U.S. public finance new issues insured by the Company in fourth quarter 2022, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Structured Finance Transactions at December 31, 2022," which lists the Company's structured finance exposure as of that date.

In addition, the Company will post on its website, when available, the Company's separate-company subsidiary financial supplements and its "Fixed Income Presentation" for the current quarter. Those documents will be furnished to the Securities and Exchange Commission in a Current Report on Form 8-K.

\# \# \#

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO), Bermuda-based holding company. Through its subsidiaries, Assured Guaranty provides credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets and also provides asset management services. More information on Assured Guaranty Ltd. and its subsidiaries can be found at <u>AssuredGuaranty.com</u>.

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**Cautionary Statement Regarding Forward-Looking Statements**

Any forward-looking statements made in this press release reflect the Company's current views with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Among factors that could cause actual results to differ adversely are: (1) significant changes in inflation, interest rates, the world's credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession; (2) geopolitical risk, including war in Ukraine and the resulting economic sanctions, fragmentation of global supply chains, volatility in energy prices, potential for increased cyberattacks, and risk of intentional or accidental escalation; (3) the possibility of a United States (U.S.) government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (4) the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response, and the global consequences of the pandemic and such actions, including their impact on the factors listed in this section; (5) developments in the world's financial and capital markets that adversely affect insured obligors' repayment rates, Assured Guaranty's insurance loss or recovery experience, investments of Assured Guaranty or assets it manages; (6) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty's insurance; (7) the loss of investors in Assured Guaranty's asset management strategies or the failure to attract new investors to Assured Guaranty's asset management business; (8) the possibility that budget or pension shortfalls or other factors will result in credit losses or impairments on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (9) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including as a result of the final resolution of Assured Guaranty's remaining Puerto Rico exposures or the amounts recovered on securities received in connection with the resolution of Puerto Rico exposures already resolved; (10) increased competition, including from new entrants into the financial guaranty industry; (11) poor performance of Assured Guaranty's asset management strategies compared to the performance of the asset management strategies of Assured Guaranty's competitors; (12) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments and investments it manages, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to unanticipated consequences; (13) the impact of market volatility on the mark-to-market of Assured Guaranty's assets and liabilities subject to mark-to-market, including certain of its investments, most of its financial guaranty contracts written in credit default swap (CDS) form, and certain consolidated variable interest entities (VIEs); (14) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL's insurance subsidiaries have insured; (15) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (16) changes in applicable accounting policies or practices; (17) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (18) the possibility that strategic transactions made by Assured Guaranty, including its acquisition of BlueMountain Capital Management LLC (BlueMountain, now known as Assured Investment Management LLC) and its associated entities (BlueMountain Acquisition), do not result in the benefits anticipated or subject Assured Guaranty to unanticipated consequences; (19) difficulties with the execution of Assured Guaranty's business strategy; (20) loss of key personnel; (21) the effects of mergers, acquisitions and divestitures; (22) natural or man-made catastrophes or pandemics; (23) other risk factors identified in AGL's filings with the U.S. Securities and Exchange Commission (SEC); (24) other risks and uncertainties that have not been identified at this time; and (25) management's response to these factors. Readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as of February 28, 2023, and Assured Guaranty undertakes no obligation to update publicly or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

------

**<u>Contact Information</u>**

Robert Tucker

Senior Managing Director, Investor Relations and Corporate Communications

212-339-0861

<u>rtucker@agltd.com</u>

Ashweeta Durani

Vice President, Media Relations

212-408-6042

<u>adurani@agltd.com</u>

## Exhibit 99.2

![image2.jpg](image2.jpg)

**Assured Guaranty Ltd.**

**December 31, 2022** 

**Financial Supplement** 

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| | |
|:---|:---|
| **Table of Contents** | Page |
| <u>[Selected Financial Highlights](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_4)</u> | <u>[1](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_4)</u> |
| <u>[Condensed Consolidated Statements of Operations (unaudited)](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_13)</u> | <u>[3](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_13)</u> |
| <u>[Condensed Consolidated Balance Sheets (unaudited)](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_10)</u> | <u>[4](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_10)</u> |
| <u>[Selected Financial Highlights GAAP to Non-GAAP Reconciliations](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_31)</u> | <u>[5](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_31)</u> |
| <u>Income Components</u> | <u>[8](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_19)</u> |
| <u>[Fixed-Maturity Securities, Short-Term Investments and Cash](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_40)</u> | <u>[12](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_40)</u> |
| <u>[Investment Portfolio, Cash and CIVs](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_43)</u> | <u>[13](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_43)</u> |
| <u>[Income from Investment Portfolio and CIVs](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_46)</u> | <u>[14](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_46)</u> |
| <u>[Equity Method Alternative Investments in the Insurance Segment](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_1383)</u> | <u>[16](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_1383)</u> |
| <u>[Insurance Segment:](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_49)</u> | <u>[17](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_49)</u> |
| &nbsp;&nbsp;<u>[Insurance Segment Results](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_52)</u> | <u>[18](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_52)</u> |
| &nbsp;&nbsp;<u>[Claims-Paying Resources](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_55)</u> | <u>[19](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_55)</u> |
| &nbsp;&nbsp;<u>[New Business Production](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_58)</u> | <u>[20](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_58)</u> |
| &nbsp;&nbsp;<u>[Gross Par Written](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_61)</u> | <u>[21](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_61)</u> |
| &nbsp;&nbsp;<u>[New Business Production by Quarter](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_67)</u> | <u>[23](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_67)</u> |
| &nbsp;&nbsp;<u>[Estimated Net Exposure Amortization and Estimated Future Financial Guaranty Net Premium and Credit Derivative Revenues](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_70)</u> | <u>[24](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_70)</u> |
| &nbsp;&nbsp;<u>[Rollforward of Net Expected Loss and Loss Adjustment Expenses to be Paid](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_73)</u> | <u>[25](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_73)</u> |
| &nbsp;&nbsp;<u>[Loss Measures](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_76)</u> | <u>[26](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_76)</u> |
| &nbsp;&nbsp;<u>[Net Expected Loss to be Expensed](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_79)</u> | <u>[27](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_79)</u> |
| &nbsp;&nbsp;<u>[Financial Guaranty Profile](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_82)</u> | <u>[28](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_82)</u> |
| &nbsp;&nbsp;<u>[Specialty Insurance, Reinsurance and Guaranties](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_91)</u> | <u>[31](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_91)</u> |
| &nbsp;&nbsp;<u>[Expected Amortization of Net Par Outstanding](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_94)</u> | <u>[32](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_94)</u> |
| &nbsp;&nbsp;<u>[Exposure to Puerto Rico](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_97)</u> | <u>[33](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_97)</u> |
| &nbsp;&nbsp;<u>[U.S. RMBS Profile](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_106)</u> | <u>[35](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_106)</u> |
| &nbsp;&nbsp;<u>[Direct Pooled Corporate Obligations Profile](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_109)</u> | <u>[36](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_109)</u> |
| &nbsp;&nbsp;<u>[Below Investment Grade Exposures](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_112)</u> | <u>[37](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_112)</u> |
| &nbsp;&nbsp;<u>[Largest Exposures by Sector](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_121)</u> | <u>[40](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_121)</u> |
| <u>[Asset Management Segment](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_130)</u> | <u>[43](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_130)</u> |
| &nbsp;&nbsp;<u>[Asset Management Results](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_133)</u> | <u>[44](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_133)</u> |
| <u>[Corporate Division](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_142)</u> | <u>[47](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_142)</u> |
| &nbsp;&nbsp;<u>[Corporate Results](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_145)</u> | <u>[48](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_145)</u> |
| <u>[Other](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_148)</u> | <u>[49](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_148)</u> |
| &nbsp;&nbsp;<u>[Other Results](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_151)</u> | <u>[50](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_151)</u> |
| <u>[Summary](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_157)</u> | <u>[52](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_157)</u> |
| &nbsp;&nbsp;<u>[Summary of Financial and Statistical Data](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_160)</u> | <u>[53](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_160)</u> |
| &nbsp;&nbsp;<u>[Summary of GAAP to Non-GAAP Reconciliations](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_163)</u> | <u>[54](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_163)</u> |
| <u>[Glossary](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_169)</u> | <u>[56](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_169)</u> |
| <u>[Non-GAAP Financial Measures](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_172)</u> | <u>[59](#ifc2fc4cf8ccd4d4b81a5d08a418fbec1_172)</u> |

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This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty or the Company) with the United States (U.S.) Securities and Exchange Commission (SEC), including its Annual Report on Form 10-K for the year ended December 31, 2022.

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**Cautionary Statement Regarding Forward Looking Statements:**

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (1) significant changes in inflation, interest rates, the world's credit markets or segments thereof, credit spreads, foreign exchange rates or general economic conditions, including the possibility of a recession; (2) geopolitical risk, including war in Ukraine and the resulting economic sanctions, fragmentation of global supply chains, volatility in energy prices, potential for increased cyberattacks, and risk of intentional or accidental escalation; (3) the possibility of a United States (U.S.) government shutdown, payment defaults on the debt of the U.S. government or instruments issued, insured or guaranteed by related institutions, agencies or instrumentalities, and downgrades to their credit ratings; (4) the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response, and the global consequences of the pandemic and such actions, including their impact on the factors listed in this section; (5) developments in the world's financial and capital markets that adversely affect insured obligors' repayment rates, Assured Guaranty's insurance loss or recovery experience, investments of Assured Guaranty or assets it manages; (6) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty's insurance; (7) the loss of investors in Assured Guaranty's asset management strategies or the failure to attract new investors to Assured Guaranty's asset management business; (8) the possibility that budget or pension shortfalls or other factors will result in credit losses or impairments on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (9) insured losses, including losses with respect to related legal proceedings, in excess of those expected by Assured Guaranty or the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates for insurance exposures, including as a result of the final resolution of Assured Guaranty's remaining Puerto Rico exposures or the amounts recovered on securities received in connection with the resolution of Puerto Rico exposures already resolved; (10) increased competition, including from new entrants into the financial guaranty industry; (11) poor performance of Assured Guaranty's asset management strategies compared to the performance of the asset management strategies of Assured Guaranty's competitors; (12) the possibility that investments made by Assured Guaranty for its investment portfolio, including alternative investments and investments it manages, do not result in the benefits anticipated or subject Assured Guaranty to reduced liquidity at a time it requires liquidity, or to unanticipated consequences; (13) the impact of market volatility on the mark-to-market of Assured Guaranty's assets and liabilities subject to mark-to-market, including certain of its investments, most of its financial guaranty contracts written in credit default swap (CDS) form, and certain consolidated variable interest entities (VIEs); (14) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its insurance subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL's insurance subsidiaries have insured; (15) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (16) changes in applicable accounting policies or practices; (17) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (18) the possibility that strategic transactions made by Assured Guaranty, including its acquisition of BlueMountain Capital Management LLC (BlueMountain, now known as Assured Investment Management LLC) and its associated entities (BlueMountain Acquisition), do not result in the benefits anticipated or subject Assured Guaranty to unanticipated consequences; (19) difficulties with the execution of Assured Guaranty's business strategy; (20) loss of key personnel; (21) the effects of mergers, acquisitions and divestitures; (22) natural or man-made catastrophes or pandemics; (23) other risk factors identified in AGL's filings with the U.S. Securities and Exchange Commission (SEC); (24) other risks and uncertainties that have not been identified at this time; and (25) management's response to these factors. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

------

**Assured Guaranty Ltd.**

Selected Financial Highlights (1 of 2)

(dollars in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **GAAP** <sup>(1)</sup> **Highlights** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL** | $**94** | $**263** | $**124** | $**389** |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL per diluted share** | **1.52** | **3.74** | **1.92** | **5.23** |
| &nbsp;&nbsp;&nbsp;**Weighted average shares outstanding** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic shares outstanding | 59.8 | 69.4 | 62.9 | 73.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted shares outstanding <sup>(7)</sup> | 61.0 | 70.4 | 63.9 | 74.3 |
| &nbsp;&nbsp;&nbsp;**Effective tax rate on net income** | **16.8%** | **14.9%** | **7.2%** | **12.2%** |
| &nbsp;&nbsp;**GAAP return on equity (ROE)** <sup>(4)</sup> | **7.5%** | **16.8%** | **2.2%** | **6.0%** |
| **Non-GAAP Highlights** <sup>(2)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating income (loss) | $14 | $273 | $267 | $470 |
| &nbsp;&nbsp;Adjusted operating income (loss) per diluted share <sup>(2)</sup> | $0.22 | $3.88 | $4.14 | $6.32 |
| &nbsp;&nbsp;&nbsp;Weighted average diluted shares outstanding | 61.0 | 70.4 | 63.9 | 74.3 |
| &nbsp;&nbsp;Effective tax rate on adjusted operating income <sup>(3)</sup> | 61.4% | 15.1% | 9.2% | 13.2% |
| &nbsp;&nbsp;Adjusted operating ROE <sup>(2)(4)</sup> | 1.0% | 18.4% | 4.6% | 7.8% |
| **Components of adjusted operating income (loss)** <sup>(2)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Insurance segment | $66 | $277 | $413 | $722 |
| &nbsp;&nbsp;&nbsp;Asset Management segment | (3) | (3) | (6) | (19) |
| &nbsp;&nbsp;&nbsp;Corporate division | (36) | (31) | (134) | (263) |
| &nbsp;&nbsp;Other <sup>(5)</sup> | (13) | 30 | (6) | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjusted operating income (loss) | $14 | $273 | $267 | $470 |
| **Insurance Segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Gross written premiums (GWP) | $131 | $100 | $360 | $377 |
| &nbsp;&nbsp;Present value of new business production (PVP) <sup>(2)</sup>  | 135 | 98 | 375 | 361 |
| &nbsp;&nbsp;&nbsp;Gross par written | 7035 | 6486 | 22047 | 26656 |
| **Asset Management Segment** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets under management (AUM): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows-third party | $23 | $889 | $1385 | $2971 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inflows-intercompany |  | 61 | 270 | 243 |
| **Effect of refundings and terminations on GAAP measures:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net earned premiums, pre-tax** | $**34** | $**20** | $**179** | $**59** |
| &nbsp;&nbsp;&nbsp;**Fair value gains (losses) of credit derivatives, pre-tax** | **—** | **—** | **2** | **7** |
| &nbsp;&nbsp;&nbsp;**Net income effect** | **27** | **15** | **142** | **51** |
| &nbsp;&nbsp;&nbsp;**Net income per diluted share** | **0.44** | **0.21** | **2.23** | **0.68** |
| **Effect of refundings and terminations on non-GAAP measures:** |  |  |  |  |
| &nbsp;&nbsp;Operating net earned premiums and credit derivative revenues <sup>(5)</sup>, pre-tax | $34 | $20 | $181 | $66 |
| &nbsp;&nbsp;Adjusted operating income <sup>(5)</sup> effect | 27 | 15 | 142 | 51 |
| &nbsp;&nbsp;Adjusted operating income per diluted share <sup>(5)</sup> | 0.44 | 0.21 | 2.23 | 0.68 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Accounting principles generally accepted in the United States of America (GAAP).

2)&nbsp;&nbsp;&nbsp;&nbsp;Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

3)&nbsp;&nbsp;&nbsp;&nbsp;Represents the ratio of adjusted operating provision for income taxes to adjusted operating income before income taxes.

4)&nbsp;&nbsp;&nbsp;&nbsp;Quarterly ROE calculations represent annualized returns. See page 6 for additional information on calculation.

5)&nbsp;&nbsp;&nbsp;&nbsp;Condensed consolidated statement of operations items mentioned in this Financial Supplement that are described as operating (i.e. operating net earned premiums) are non-GAAP measures and represent components of adjusted operating income. Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

6)&nbsp;&nbsp;&nbsp;&nbsp;Represents the effect of consolidating financial guaranty variable interest entities and consolidated investment vehicles (FG VIE and CIV consolidation).

7)&nbsp;&nbsp;&nbsp;&nbsp;In periods where the Company recognized a net loss, the impact of potentially dilutive outstanding stock-based awards was excluded from the calculation of diluted loss per share as their inclusion would have an antidilutive effect.

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**Assured Guaranty Ltd.**

Selected Financial Highlights (2 of 2)

(dollars in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** |
| | **Amount** | **Per Share** | **Amount** | **Per Share** |
| **Shareholders' equity attributable to AGL** | $**5064** | $**85.80** | $**6292** | $**93.19** |
| Adjusted operating shareholders' equity <sup>(1)</sup> | 5543 | 93.92 | 5991 | 88.73 |
| Adjusted book value <sup>(1)</sup> | 8379 | 141.98 | 8823 | 130.67 |
| Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity | 17 | 0.28 | 32 | 0.47 |
| &nbsp;&nbsp;&nbsp;Adjusted book value | 11 | 0.19 | 23 | 0.34 |
| Shares outstanding at the end of period | 59.0 |  | 67.5 |  |
| **Exposure** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Financial guaranty net debt service outstanding | $369951 |  | $367360 |  |
| &nbsp;&nbsp;&nbsp;Financial guaranty net par outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Investment grade | $227366 |  | $229036 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Below-investment-grade (BIG) | 5892 |  | 7356 |  |
| &nbsp;&nbsp;&nbsp;Total | 233258 |  | 236392 |  |
| **Claims-paying resources** <sup>(2)</sup> | $10818 |  | $11219 |  |
| **AUM** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Collateralized loan obligations (CLOs) | $15150 |  | $14699 |  |
| &nbsp;&nbsp;&nbsp;Opportunity funds | 1884 |  | 1824 |  |
| &nbsp;&nbsp;&nbsp;Liquid strategies | 248 |  | 389 |  |
| &nbsp;&nbsp;&nbsp;Wind-down funds | 182 |  | 582 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $17464 |  | $17494 |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2)&nbsp;&nbsp;&nbsp;&nbsp;See page 19 for additional detail on claims-paying resources.

------

**Assured Guaranty Ltd.**

Condensed Consolidated Statements of Operations (unaudited)

(dollars in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net earned premiums | $109 | $107 | $494 | $414 |
| &nbsp;&nbsp;&nbsp;Net investment income | 78 | 65 | 269 | 269 |
| &nbsp;&nbsp;&nbsp;Asset management fees | 22 | 23 | 93 | 88 |
| &nbsp;&nbsp;&nbsp;Net realized investment gains (losses) | (17) | 11 | (56) | 15 |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on credit derivatives | 31 | (27) | (11) | (58) |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on committed capital securities (CCS) | 12 |  | 24 | (28) |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on FG VIEs | (5) | 5 | 22 | 23 |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CIVs | (8) | 74 | 17 | 127 |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement | 69 | (1) | (112) | (23) |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on trading securities | (4) |  | (34) |  |
| &nbsp;&nbsp;&nbsp;Commutation gains (losses) |  |  | 2 |  |
| &nbsp;&nbsp;&nbsp;Other income (loss) | 5 | 6 | 15 | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenues** | **292** | **263** | **723** | **848** |
| **Expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss and LAE (benefit) | 45 | (166) | 16 | (220) |
| &nbsp;&nbsp;&nbsp;Interest expense | 21 | 20 | 81 | 87 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  |  |  | 175 |
| &nbsp;&nbsp;&nbsp;Amortization of DAC | 3 | 4 | 14 | 14 |
| &nbsp;&nbsp;&nbsp;Employee compensation and benefit expenses | 69 | 57 | 258 | 230 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 47 | 44 | 167 | 179 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total expenses** | **185** | **(41)** | **536** | **465** |
| **Income (loss) before income taxes and equity in earnings (losses) of investees** | **107** | **304** | **187** | **383** |
| Equity in earnings (losses) of investees | (8) | 28 | (39) | 94 |
| **Income (loss) before income taxes** | 99 | 332 | 148 | 477 |
| Less: Provision (benefit) for income taxes | 17 | 50 | 11 | 58 |
| **Net income (loss)** | **82** | **282** | **137** | **419** |
| Less: Noncontrolling interests | (12) | 19 | 13 | 30 |
| **Net income (loss) attributable to AGL** | $**94** | $**263** | $**124** | $**389** |
| **Earnings per share:** |  |  |  |  |
| Basic | $1.55 | $3.80 | $1.95 | $5.29 |
| Diluted | $1.52 | $3.74 | $1.92 | $5.23 |

---

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**Assured Guaranty Ltd.**

Condensed Consolidated Balance Sheets (unaudited)

(dollars in millions)

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| **Assets** |  |  |
| Investments: |  |  |
| &nbsp;&nbsp;Fixed-maturity securities, available-for-sale, at fair value | $7119 | $8202 |
| &nbsp;&nbsp;Fixed-maturity securities, trading, at fair value | 303 |  |
| &nbsp;&nbsp;Short-term investments, at fair value | 810 | 1225 |
| &nbsp;&nbsp;Other invested assets | 133 | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total investments | 8365 | 9608 |
| Cash | 107 | 120 |
| Premiums receivable, net of commissions payable | 1298 | 1372 |
| Deferred acquisition costs (DAC) | 147 | 131 |
| Salvage and subrogation recoverable | 257 | 801 |
| Financial guaranty variable interest entities' (FG VIEs') assets, at fair value | 416 | 260 |
| Assets of consolidated investment vehicles (CIVs) | 5493 | 5271 |
| Goodwill and other intangible assets | 163 | 175 |
| Other assets | 597 | 470 |
| &nbsp;&nbsp;**Total assets** | $**16843** | $**18208** |
| **Liabilities** |  |  |
| Unearned premium reserve | $3620 | $3716 |
| Loss and loss adjustment expense (LAE) reserve | 296 | 869 |
| Long-term debt | 1675 | 1673 |
| Credit derivative liabilities, at fair value | 163 | 156 |
| FG VIEs' liabilities, at fair value | 715 | 289 |
| Liabilities of CIVs | 4625 | 4436 |
| Other liabilities | 457 | 569 |
| &nbsp;&nbsp;**Total liabilities** | **11551** | **11708** |
| **Redeemable noncontrolling interests** | **—** | **22** |
| **Shareholders' equity** |  |  |
| Common shares | 1 | 1 |
| Retained earnings | 5577 | 5990 |
| Accumulated other comprehensive income (loss) | (515) | 300 |
| Deferred equity compensation | 1 | 1 |
| &nbsp;&nbsp;**Total shareholders' equity attributable to AGL** | **5064** | **6292** |
| &nbsp;&nbsp;&nbsp;Nonredeemable noncontrolling interests | **228** | **186** |
| &nbsp;&nbsp;**Total shareholders' equity** | **5292** | **6478** |
| &nbsp;&nbsp;**Total liabilities, redeemable noncontrolling interests and shareholders' equity** | $**16843** | $**18208** |

---

------

**Assured Guaranty Ltd.**

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (1 of 3)

(dollars in millions, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Adjusted Operating Income Reconciliation** | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net income (loss) attributable to AGL** | $**94** | $**263** | $**124** | $**389** |
| Less pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gains (losses) on investments | (17) | 11 | (56) | 15 |
| &nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 28 | (23) | (18) | (64) |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 12 |  | 24 | (28) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 70 |  | (110) | (21) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | 93 | (12) | (160) | (98) |
| Less tax effect on pre-tax adjustments | (13) | 2 | 17 | 17 |
| Adjusted operating income (loss) | $14 | $273 | $267 | $470 |
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $(13) | $30 | $(6) | $30 |
| **Components of adjusted operating income:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Segments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance | $66 | $277 | $413 | $722 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset Management | (3) | (3) | (6) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total segments | 63 | 274 | 407 | 703 |
| &nbsp;&nbsp;&nbsp;Corporate division | (36) | (31) | (134) | (263) |
| &nbsp;&nbsp;&nbsp;Other | (13) | 30 | (6) | 30 |
| Adjusted operating income (loss) | $14 | $273 | $267 | $470 |
| **Per diluted share:** |  |  |  |  |
| **Net income (loss) attributable to AGL** | $**1.52** | $**3.74** | $**1.92** | $**5.23** |
| Less pre-tax adjustments: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Realized gains (losses) on investments | (0.29) | 0.16 | (0.87) | 0.20 |
| &nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | 0.47 | (0.32) | (0.27) | (0.85) |
| &nbsp;&nbsp;Fair value gains (losses) on CCS  | 0.19 | (0.01) | 0.37 | (0.38) |
| &nbsp;&nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | 1.13 |  | (1.72) | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | 1.50 | (0.17) | (2.49) | (1.32) |
| Less tax effect on pre-tax adjustments | (0.20) | 0.03 | 0.27 | 0.23 |
| Adjusted operating income (loss) | $0.22 | $3.88 | $4.14 | $6.32 |
| Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating income | $(0.22) | $0.43 | $(0.10) | $0.41 |

---

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Assured Guaranty Ltd.**

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (2 of 3)

(dollars in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **ROE Reconciliation and Calculation** | | | | | |
| | **December 31,** | **September 30,** | **December 31,** | **September 30,** | **December 31,** |
|  | **2022** | **2022** | **2021** | **2021** | **2020** |
| **Shareholders' equity attributable to AGL** | $**5064** | $**4929** | $**6292** | $**6300** | $**6643** |
| Adjusted operating shareholders' equity | 5543 | 5575 | 5991 | 5906 | 6087 |
| **Gain (loss) related to FG VIE and CIV consolidation included in adjusted operating shareholders' equity** | **17** | **27** | **32** | **—** | **2** |
|  |  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  |  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  |  | **2022** | **2021** | **2022** | **2021** |
| **Net income (loss) attributable to AGL** |  | $**94** | $**263** | $**124** | $**389** |
| Adjusted operating income (loss) |  | 14 | 273 | 267 | 470 |
| **Average shareholders' equity attributable to AGL** |  | $**4997** | $**6296** | $**5678** | $**6468** |
| Average adjusted operating shareholders' equity |  | 5559 | 5949 | 5767 | 6039 |
| **Gain (loss) related to FG VIE and CIV consolidation included in average adjusted operating shareholders' equity** |  | **22** | **16** | **25** | **17** |
| **GAAP ROE** <sup>(1)</sup> |  | **7.5%** | **16.8%** | **2.2%** | **6.0%** |
| Adjusted operating ROE <sup>(1)</sup> |  | 1.0% | 18.4% | 4.6% | 7.8% |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Quarterly ROE calculations represent annualized returns.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Assured Guaranty Ltd.**

Selected Financial Highlights

GAAP to Non-GAAP Reconciliations (3 of 3)

(dollars in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of** | **As of** | **As of** | **As of** | **As of** |
| | **December 31,**<br>**2022** | **September 30,**<br>**2022** | **December 31,**<br>**2021** | **September 30,**<br>**2021** | **December 31,**<br>**2020** |
| **Reconciliation of shareholders' equity attributable to AGL to adjusted book value:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Shareholders' equity attributable to AGL** | $**5064** | $**4929** | $**6292** | $**6300** | $**6643** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less pre-tax reconciling items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (71) | (101) | (54) | (32) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 47 | 35 | 23 | 24 | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment portfolio | (523) | (672) | 404 | 492 | 611 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less taxes | 68 | 92 | (72) | (90) | (116) |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity | 5543 | 5575 | 5991 | 5906 | 6087 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-tax reconciling items: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Deferred acquisition costs | 147 | 142 | 131 | 129 | 119 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net present value of estimated net future revenue | 157 | 159 | 160 | 164 | 182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed | 3428 | 3373 | 3402 | 3383 | 3355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus taxes | (602) | (594) | (599) | (597) | (597) |
| &nbsp;&nbsp;&nbsp;Adjusted book value | $8379 | $8371 | $8823 | $8727 | $8908 |
| **Gain (loss) related to FG VIE and CIV consolidation included in:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity (net of tax (provision) benefit of $(4), $(6), $(5), $(1) and $-) | $17 | $27 | $32 | $— | $2 |
| &nbsp;&nbsp;&nbsp;Adjusted book value (net of tax (provision) benefit of $(3), $(4), $(3), $3 and $2) | $11 | $16 | $23 | $(9) | $(8) |

---

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Assured Guaranty Ltd.**

Income Components (1 of 4)

(in millions)

**Components of Income for the Three Months Ended December 31, 2022**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segments** | **Segments** | **Corporate and Other** | **Corporate and Other** | | |
| | **Insurance** | **Asset Management** | **Corporate** | **Other (1)** |<br>**Reconciling Items** |<br>**Consolidated** |
| **Revenues** | | | | | | |
| Net earned premiums | $109 | $— | $— | $— | $— | $109 |
| Net investment income | 80 |  | 1 | (3) |  | 78 |
| Asset management fees |  | 20 |  | 2 |  | 22 |
| Net realized investment gains (losses) |  |  |  |  | (17) | (17) |
| Fair value gains (losses) on credit derivatives <sup>(2)</sup> | 2 |  |  |  | 29 | 31 |
| Fair value gains (losses) on CCS |  |  |  |  | 12 | 12 |
| Fair value gains (losses) on FG VIEs |  |  |  | (5) |  | (5) |
| Fair value gains (losses) on CIVs |  |  |  | (8) |  | (8) |
| Foreign exchange gains (losses) on remeasurement | 2 |  |  | (3) | 70 | 69 |
| Fair value gains (losses) on trading securities | (4) |  |  |  |  | (4) |
| Other income (loss) | 4 | 4 |  | (3) |  | 5 |
| &nbsp;&nbsp;**Total revenues** | 193 | 24 | 1 | (20) | 94 | 292 |
| **Expenses** |  |  |  |  |  |  |
| Loss and LAE (benefit) <sup>(3)</sup> | 44 |  |  |  | 1 | 45 |
| Interest expense |  | 1 | 23 | (3) |  | 21 |
| Amortization of DAC | 3 |  |  |  |  | 3 |
| Employee compensation and benefit expenses | 41 | 18 | 10 |  |  | 69 |
| Other operating expenses | 24 | 9 | 6 | 8 |  | 47 |
| &nbsp;&nbsp;**Total expenses** | 112 | 28 | 39 | 5 | 1 | 185 |
| Equity in earnings (losses) of investees | (5) |  |  | (3) |  | (8) |
| Less: Provision (benefit) for income taxes | 10 | (1) | (2) | (3) | 13 | 17 |
| Less: Noncontrolling interests |  |  |  | (12) |  | (12) |
| &nbsp;&nbsp;**Total** | $66 | $(3) | $(36) | $(13) | $80 | $94 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line item includes credit derivative impairment (recoveries).

------

**Assured Guaranty Ltd.**

Income Components (2 of 4)

(in millions)

**Components of Income for the Three Months Ended December 31, 2021**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segments** | **Segments** | **Corporate and Other** | **Corporate and Other** | | |
| | **Insurance** | **Asset Management** | **Corporate** | **Other (1)** |<br>**Reconciling Items** |<br>**Consolidated** |
| **Revenues** | | | | | | |
| Net earned premiums | $108 | $— | $— | $(1) | $— | $107 |
| Net investment income | 67 |  | 1 | (3) |  | 65 |
| Asset management fees |  | 21 |  | 2 |  | 23 |
| Net realized investment gains (losses) |  |  |  |  | 11 | 11 |
| Fair value gains (losses) on credit derivatives <sup>(2)</sup> | 3 |  |  |  | (30) | (27) |
| Fair value gains (losses) on CCS |  |  |  |  |  |  |
| Fair value gains (losses) on FG VIEs |  |  |  | 5 |  | 5 |
| Fair value gains (losses) on CIVs |  |  |  | 74 |  | 74 |
| Foreign exchange gains (losses) on remeasurement | (1) |  |  |  |  | (1) |
| Other income (loss) | 5 | 2 |  | (1) |  | 6 |
| &nbsp;&nbsp;**Total revenues** | 182 | 23 | 1 | 76 | (19) | 263 |
| **Expenses** |  |  |  |  |  |  |
| Loss and LAE (benefit) <sup>(3)</sup> | (161) |  |  | 2 | (7) | (166) |
| Interest expense |  | 1 | 22 | (3) |  | 20 |
| Amortization of DAC | 4 |  |  |  |  | 4 |
| Employee compensation and benefit expenses | 37 | 14 | 6 |  |  | 57 |
| Other operating expenses | 22 | 11 | 5 | 6 |  | 44 |
| &nbsp;&nbsp;**Total expenses** | (98) | 26 | 33 | 5 | (7) | (41) |
| Equity in earnings (losses) of investees | 44 |  | (1) | (15) |  | 28 |
| Less: Provision (benefit) for income taxes | 47 |  | (2) | 7 | (2) | 50 |
| Less: Noncontrolling interests |  |  |  | 19 |  | 19 |
| &nbsp;&nbsp;**Total** | $277 | $(3) | $(31) | $30 | $(10) | $263 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line item includes credit derivative impairment (recoveries).

------

**Assured Guaranty Ltd.**

Income Components (3 of 4)

(in millions)

**Components of Income for the Year Ended December 31, 2022**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segments** | **Segments** | **Corporate and Other** | **Corporate and Other** | | |
| | **Insurance** | **Asset Management** | **Corporate** | **Other (1)** |<br>**Reconciling Items** |<br>**Consolidated** |
| **Revenues** | | | | | | |
| Net earned premiums | $497 | $— | $— | $(3) | $— | $494 |
| Net investment income | 278 |  | 4 | (13) |  | 269 |
| Asset management fees |  | 106 |  | (13) |  | 93 |
| Net realized investment gains (losses) |  |  |  |  | (56) | (56) |
| Fair value gains (losses) on credit derivatives <sup>(2)</sup> | 11 |  |  |  | (22) | (11) |
| Fair value gains (losses) on CCS |  |  |  |  | 24 | 24 |
| Fair value gains (losses) on FG VIEs |  |  |  | 22 |  | 22 |
| Fair value gains (losses) on CIVs |  |  |  | 17 |  | 17 |
| Foreign exchange gains (losses) on remeasurement | (5) | (1) |  | 4 | (110) | (112) |
| Fair value gains (losses) on trading securities | (34) |  |  |  |  | (34) |
| Commutation gains (losses) | 2 |  |  |  |  | 2 |
| Other income (loss) | 8 | 7 |  |  |  | 15 |
| &nbsp;&nbsp;**Total revenues** | 757 | 112 | 4 | 14 | (164) | 723 |
| **Expenses** |  |  |  |  |  |  |
| Loss and LAE (benefit) <sup>(3)</sup> | 12 |  |  | 8 | (4) | 16 |
| Interest expense | 1 | 1 | 89 | (10) |  | 81 |
| Amortization of DAC | 14 |  |  |  |  | 14 |
| Employee compensation and benefit expenses | 148 | 80 | 30 |  |  | 258 |
| Other operating expenses | 84 | 38 | 24 | 21 |  | 167 |
| &nbsp;&nbsp;**Total expenses** | 259 | 119 | 143 | 19 | (4) | 536 |
| Equity in earnings (losses) of investees | (51) |  |  | 12 |  | (39) |
| Less: Provision (benefit) for income taxes | 34 | (1) | (5) |  | (17) | 11 |
| Less: Noncontrolling interests |  |  |  | 13 |  | 13 |
| &nbsp;&nbsp;**Total** | $413 | $(6) | $(134) | $(6) | $(143) | $124 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line item includes credit derivative impairment (recoveries).

------

**Assured Guaranty Ltd.**

Income Components (4 of 4)

(in millions)

**Components of Income for the Year Ended December 31, 2021**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Segments** | **Segments** | **Corporate and Other** | **Corporate and Other** | | |
| | **Insurance** | **Asset Management** | **Corporate** | **Other (1)** |<br>**Reconciling Items** |<br>**Consolidated** |
| **Revenues** | | | | | | |
| Net earned premiums | $418 | $— | $— | $(4) | $— | $414 |
| Net investment income | 280 |  | 2 | (13) |  | 269 |
| Asset management fees |  | 77 |  | 11 |  | 88 |
| Net realized investment gains (losses) |  |  |  |  | 15 | 15 |
| Fair value gains (losses) on credit derivatives <sup>(2)</sup> | 20 |  |  |  | (78) | (58) |
| Fair value gains (losses) on CCS |  |  |  |  | (28) | (28) |
| Fair value gains (losses) on FG VIEs |  |  |  | 23 |  | 23 |
| Fair value gains (losses) on CIVs |  |  |  | 127 |  | 127 |
| Foreign exchange gains (losses) on remeasurement | (2) |  |  |  | (21) | (23) |
| Other income (loss) | 17 | 6 |  | (2) |  | 21 |
| &nbsp;&nbsp;**Total revenues** | 733 | 83 | 2 | 142 | (112) | 848 |
| **Expenses** |  |  |  |  |  |  |
| Loss and LAE (benefit) <sup>(3)</sup> | (221) |  |  | 15 | (14) | (220) |
| Interest expense |  | 1 | 96 | (10) |  | 87 |
| Loss on extinguishment of debt |  |  | 175 |  |  | 175 |
| Amortization of DAC | 14 |  |  |  |  | 14 |
| Employee compensation and benefit expenses | 142 | 67 | 21 |  |  | 230 |
| Other operating expenses | 98 | 40 | 20 | 21 |  | 179 |
| &nbsp;&nbsp;**Total expenses** | 33 | 108 | 312 | 26 | (14) | 465 |
| Equity in earnings (losses) of investees | 144 |  |  | (50) |  | 94 |
| Less: Provision (benefit) for income taxes | 122 | (6) | (47) | 6 | (17) | 58 |
| Less: Noncontrolling interests |  |  |  | 30 |  | 30 |
| &nbsp;&nbsp;**Total** | $722 | $(19) | $(263) | $30 | $(81) | $389 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the consolidation of the FG VIEs and CIVs and intersegment eliminations.

2)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line include only the credit derivative revenues component of realized gains (losses) on credit derivatives.

3)&nbsp;&nbsp;&nbsp;&nbsp;Insurance segment balances for this line item includes credit derivative impairment (recoveries).

------

**Assured Guaranty Ltd.**

Fixed-Maturity Securities, Short-Term Investments and Cash

As of December 31, 2022

(dollars in millions)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Amortized Cost** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Pre-Tax<br>Book Yield** | **After-Tax Book Yield** | **Fair Value** | **Annualized Investment Income** <sup>(1)</sup> |
| **Fixed maturity securities, available-for-sale:** | | | | | | | |
| &nbsp;&nbsp;&nbsp;Obligations of states and political subdivisions <sup>(2)(4)(7)</sup> | $3509 | $| (14) | 3.67% | 3.38% | $3394 | $129 |
| &nbsp;&nbsp;&nbsp;U.S. government and agencies | 118 |  |  | 2.04 | 1.75 | 111 | 2 |
| &nbsp;&nbsp;&nbsp;Corporate securities | 2387 | (6) | (6) | 2.70 | 2.37 | 2084 | 64 |
| &nbsp;&nbsp;&nbsp;Mortgage-backed securities: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential mortgage-backed securities (RMBS) <sup>(3)(4)</sup> | 418 | (19) | (19) | 5.16 | 4.28 | 340 | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 282 |  |  | 3.49 | 3.05 | 271 | 10 |
| &nbsp;&nbsp;&nbsp;Asset-backed securities (ABS) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CLOs | 449 |  |  | 6.36 | 5.02 | 428 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other ABS <sup>(4)</sup> | 423 | (26) | (26) | 3.90 | 3.13 | 393 | 16 |
| &nbsp;&nbsp;&nbsp;Non-U.S. government securities | 121 |  |  | 1.08 | 1.06 | 98 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed maturity securities, available-for-sale | 7707 | (65) | (65) | 3.55 | 3.12 | 7119 | 273 |
| **Short-term investments** | 810 |  |  | 3.22 | 2.58 | 810 | 26 |
| **Cash** <sup>(5)</sup> | 107 |  |  |  |  | 107 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**8624** | **$** | **(65)** | **3.52%** | **3.07%** | $**8036** | $**299** |
| **Fixed maturity securities, trading** <sup>(8)</sup> |  |  |  |  |  | $**303** |  |
| **Ratings** <sup>(6)</sup>**:** | **Fair Value** | **% of Portfolio** | **% of Portfolio** |  |  |  |  |
| U.S. government and agencies | $111 | 1.6 | 1.6% |  |  |  |  |
| AAA/Aaa | 1012 | 14.2 | 14.2% |  |  |  |  |
| AA/Aa | 2530 | 35.5 | 35.5% |  |  |  |  |
| A/A | 1736 | 24.4 | 24.4% |  |  |  |  |
| BBB | 784 | 11.0 | 11.0% |  |  |  |  |
| BIG | 528 | 7.4 | 7.4% |  |  |  |  |
| Not rated <sup>(7)</sup> | 418 | 5.9 | 5.9% |  |  |  |  |
| Total fixed maturity securities, available-for-sale | $7119 | 100.0 | 100.0% |  |  |  |  |
| **Duration of available-for-sale fixed maturity securities and short-term investments (in years):** |  | **4.0** | **4.0** |  |  |  |  |
| **Average ratings of fixed maturity securities and short-term investments** |  | **A** | **A** |  |  |  |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Represents annualized investment income based on amortized cost and pre-tax book yields.

2)&nbsp;&nbsp;&nbsp;&nbsp;Includes obligations of state and local political subdivisions that have been insured by other financial guarantors. The underlying ratings of these bonds, after giving effect to the lower of the rating assigned by S&P Global Ratings, a division of Standard & Poor's Financial Services LLC (S&P) or Moody's Investors Service, Inc. (Moody's), average A.

3)&nbsp;&nbsp;&nbsp;&nbsp;Includes fair value of $154 million in subprime RMBS, which has an average rating of BIG.

4)&nbsp;&nbsp;&nbsp;&nbsp;Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.

5)&nbsp;&nbsp;&nbsp;&nbsp;Cash is not included in the yield calculation.

6)&nbsp;&nbsp;&nbsp;&nbsp;Ratings are represented by the lower of the Moody's or S&P classifications except for purchased securities that it has insured, and for which it had expected losses to be paid (loss mitigation securities) and certain other securities, which use internal ratings classifications. Loss mitigation and other securities for which internal ratings are used total $922 million in par with carrying value of $594 million and primarily included in BIG category.

7)&nbsp;&nbsp;&nbsp;&nbsp;Includes $358 million of new general obligation bonds and new bonds backed by toll revenue received in connection with 2022 Puerto Rico Resolutions (see page 33).

8)&nbsp;&nbsp;&nbsp;&nbsp;Represents contingent value instruments received in connection with 2022 Puerto Rico Resolutions (see page 33). These securities are not rated.

------

**Assured Guaranty Ltd.**

Investment Portfolio, Cash and CIVs

GAAP

(dollars in millions)

**Investment Portfolio, Cash and CIVs as of December 31, 2022**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Insurance Subsidiaries** <sup>(1)</sup> | **Holding Companies** <sup>(2)</sup> | **Other** | **AGL Consolidated** |
| **Fixed-maturity securities, available-for-sale** | $**7095** | $**24** | $**—** | $**7119** |
| **Fixed-maturity securities, trading** | **303** | **—** | **—** | **303** |
| Short-term investments | 668 | 132 | 10 | 810 |
| Cash | 44 | 7 | 56 | 107 |
| &nbsp;&nbsp;**Total short-term investments and cash** | **712** | **139** | **66** | **917** |
| **Other invested assets** |  |  |  |  |
| &nbsp;&nbsp;AssuredIM Funds <sup>(3)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CLOs | 272 |  | (272) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 105 |  | (105) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Healthcare | 91 |  | (91) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-based | 101 |  | (101) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity method investments AssuredIM Funds | 569 |  | (569) |  |
| &nbsp;&nbsp;&nbsp;Other | 122 | 9 | 2 | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other invested assets** | **691** | **9** | **(567)** | **133** |
| **Total investment portfolio and cash** | $**8801** | $**172** | $**(501)** | $**8472** |
| **CIVs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets of CIVs | $— | $— | $5493 | $5493 |
| &nbsp;&nbsp;&nbsp;Liabilities of CIVs |  |  | (4625) | (4625) |
| &nbsp;&nbsp;&nbsp;Redeemable noncontrolling interests |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Nonredeemable noncontrolling interests |  |  | (228) | (228) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**640** | $**640** |

---

**Investment Portfolio, Cash and CIVs as of December 31, 2021**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Insurance Subsidiaries** | **Holding Companies** | **Other** | **AGL Consolidated** |
| **Fixed-maturity securities, available-for-sale** | $**8106** | $**96** | $**—** | $**8202** |
| Short-term investments | 859 | 355 | 11 | 1225 |
| Cash | 71 |  | 49 | 120 |
| &nbsp;&nbsp;**Total short-term investments and cash** | **930** | **355** | **60** | **1345** |
| **Other invested assets** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;AssuredIM Funds |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CLOs | 228 |  | (228) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 107 |  | (107) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Healthcare | 115 |  | (115) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-based | 93 |  | (93) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equity method investments AssuredIM Funds | 543 |  | (543) |  |
| &nbsp;&nbsp;&nbsp;Other | 167 | 8 | 6 | 181 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Other invested assets** | **710** | **8** | **(537)** | **181** |
| **Total investment portfolio and cash** | $**9746** | $**459** | $**(477)** | $**9728** |
| **CIVs** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Assets of CIVs | $— | $— | $5271 | $5271 |
| &nbsp;&nbsp;&nbsp;Liabilities of CIVs |  |  | (4436) | (4436) |
| &nbsp;&nbsp;&nbsp;Redeemable noncontrolling interests |  |  | (22) | (22) |
| &nbsp;&nbsp;&nbsp;Nonredeemable noncontrolling interests |  |  | (186) | (186) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**627** | $**627** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the Company's U.S., Bermuda and European insurance subsidiaries.

2)&nbsp;&nbsp;&nbsp;&nbsp;Includes the Company's' holding companies: AGL, Assured Guaranty US Holdings Inc. and Assured Guaranty Municipal Holdings Inc. (AGMH).

3)&nbsp;&nbsp;&nbsp;&nbsp;Funds managed by Assured Investment Management LLC (AssuredIM LLC) and its investment management affiliates (together with AssuredIM LLC, AssuredIM) (AssuredIM Funds).

------

**Assured Guaranty Ltd.**

Income from Investment Portfolio and CIVs

Segment (1 of 2)

(dollars in millions)

**Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs on a Segment basis for the Three Months Ended December 31, 2022 and December 31, 2021**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| | **Insurance** | **Asset Management** | **Corporate** | **Other** | **Total** |
| **Net investment income** | $**80** | $**—** | $**1** | $**(3)** | $**78** |
| **Fair value gains (losses) on trading securities** | (4) |  |  |  | $**(4)** |
| **Equity in earnings (losses) of investees** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;AssuredIM Funds | $3 | $— | $— | $(3) | $— |
| &nbsp;&nbsp;&nbsp;Other | (8) |  |  |  | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Equity in earnings (losses) of investees** | $**(5)** | $**—** | $**—** | $**(3)** | $**(8)** |
| **CIVs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CIVs | $— | $— | $— | $(8) | $(8) |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests |  |  |  | 12 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**—** | $**4** | $**4** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| | **Insurance** | **Asset Management** | **Corporate** | **Other** | **Total** |
| **Net investment income** | $**67** | $**—** | $**1** | $**(3)** | $**65** |
| **Equity in earnings (losses) of investees** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;AssuredIM Funds | $10 | $— | $— | $(15) | $(5) |
| &nbsp;&nbsp;&nbsp;Other | 34 |  | (1) |  | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Equity in earnings (losses) of investees** | $**44** | $**—** | $**(1)** | $**(15)** | $**28** |
| **CIVs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CIVs | $— | $— | $— | $74 | $74 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests |  |  |  | (19) | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**—** | $**55** | $**55** |

---

------

**Assured Guaranty Ltd.**

Income from Investment Portfolio and CIVs

Segment (2 of 2)

(dollars in millions)

**Income from Investment Portfolio and Fair Value Gains (Losses) on CIVs for the Year Ended December 31, 2022 and December 31, 2021**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| | **Insurance** | **Asset Management** | **Corporate** | **Other** | **Total** |
| **Net investment income** | $**278** | $**—** | $**4** | $**(13)** | $**269** |
| **Fair value gains (losses) on trading securities** | (34) |  |  |  | $**(34)** |
| **Equity in earnings (losses) of investees** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;AssuredIM Funds | $(10) | $— | $— | $12 | $2 |
| &nbsp;&nbsp;&nbsp;Other | (41) |  |  |  | (41) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Equity in earnings (losses) of investees** | $**(51)** | $**—** | $**—** | $**12** | $**(39)** |
| **CIVs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CIVs | $— | $— | $— | $17 | $17 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests |  |  |  | (13) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**—** | $**4** | $**4** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| | **Insurance** | **Asset Management** | **Corporate** | **Other** | **Total** |
| **Net investment income** | $**280** | $**—** | $**2** | $**(13)** | $**269** |
| **Equity in earnings (losses) of investees** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;AssuredIM Funds | $80 | $— | $— | $(50) | $30 |
| &nbsp;&nbsp;&nbsp;Other | 64 |  |  |  | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Equity in earnings (losses) of investees** | $**144** | $**—** | $**—** | $**(50)** | $**94** |
| **CIVs** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fair value gains (losses) on CIVs | $— | $— | $— | $127 | $127 |
| &nbsp;&nbsp;&nbsp;Noncontrolling interests |  |  |  | (30) | (30) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total CIVs** | $**—** | $**—** | $**—** | $**97** | $**97** |

---

------

**Assured Guaranty Ltd.**

Equity Method Alternative Investments in the Insurance Segment

(dollars in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Carrying Value** | **Carrying Value** | **Equity in Earnings** | **Equity in Earnings** | **Equity in Earnings** |
| | **December 31, 2022** | **December 31, 2021** | **Fourth Quarter 2022** | **Twelve Months 2022** | **Inception-to-Date** |
| AssuredIM Funds<sup>(1)</sup> |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Strategy: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CLOs | $272 | $228 | $8 | $(2) | $39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 105 | 107 | 2 | (2) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Healthcare<sup>(3)</sup> | 91 | 115 | (5) | (11) | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset-based<sup>(3)</sup> | 101 | 93 | (2) | 5 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AssuredIM Funds <sup>(2)</sup> | 569 | 543 | 3 | (10) | 110 |
| Other alternative investments<sup>(3)</sup> | 117 | 161 | (8) | (41) | 47 |
| Total | $686 | $704 | $(5) | $(51) | $157 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Eliminated in consolidation at the AGL level, reported in equity in earnings at AG Asset Strategies LLC (AGAS), which is owned 65% by Assured Guaranty Municipal Corp. (AGM) and 35% by Assured Guaranty Corp. (AGC). AGAS is consolidated in AGM's consolidated financial statements.

2)&nbsp;&nbsp;&nbsp;&nbsp;The inception-to-date annualized internal rate of return (IRR) is 9.4%, the year to date return was a negative 1.8% and the quarter to date return was 0.5%. For AssuredIM Funds, the returns represent IRR based on mark-to-market gains (losses). The inception-to-date IRRs are annualized; the quarterly and year-to-date returns are not annualized.

3)&nbsp;&nbsp;&nbsp;&nbsp;Includes funds and investments reported on a lag. Excludes equity method investment in the Corporate division of $6 million and $8 million as of December 31, 2022 and December 31, 2021, respectively.

------

**Insurance Segment**

------

**Assured Guaranty Ltd.**

Insurance Segment Results

(dollars in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Segment revenues** |  |  |  |  |
| Net earned premiums and credit derivative revenues | $111 | $111 | $508 | $438 |
| Net investment income | 80 | 67 | 278 | 280 |
| Fair value gains (losses) on trading securities | (4) |  | (34) |  |
| Commutation gains (losses) |  |  | 2 |  |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 6 | 4 | 3 | 15 |
| &nbsp;&nbsp;**Total segment revenues** | 193 | 182 | 757 | 733 |
| **Segment expenses** |  |  |  |  |
| Loss expense (benefit) | 44 | (161) | 12 | (221) |
| Interest expense |  |  | 1 |  |
| Amortization of DAC | 3 | 4 | 14 | 14 |
| Employee compensation and benefit expenses | 41 | 37 | 148 | 142 |
| Write-off of Municipal Assurance Corp. (MAC) insurance licenses |  |  |  | 16 |
| Other operating expenses | 24 | 22 | 84 | 82 |
| &nbsp;&nbsp;**Total segment expenses** | 112 | (98) | 259 | 33 |
| Equity in earnings (losses) of investees | (5) | 44 | (51) | 144 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | 76 | 324 | 447 | 844 |
| Less: Provision (benefit) for income taxes | 10 | 47 | 34 | 122 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss)** | $66 | $277 | $413 | $722 |

---

------

**Assured Guaranty Ltd.**

Claims-Paying Resources

(dollars in millions)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** |
| | **Assured Guaranty Municipal Corp.** | **Assured Guaranty Corp.** | **Assured Guaranty Re Ltd.** <sup>(6)</sup> | **Eliminations**<sup>(2)</sup> | **Consolidated** |
| **Claims-paying resources** | | | | | |
| Policyholders' surplus | $2747 | $1916 | $709 | $(217) | $5155 |
| Contingency reserve | 855 | 347 |  |  | 1202 |
| &nbsp;&nbsp;&nbsp;**Qualified statutory capital** | **3602** | **2263** | **709** | **(217)** | **6357** |
| Unearned premium reserve and net deferred ceding commission income<sup>(1)</sup> | 2134 | 327 | 551 | (71) | 2941 |
| Loss and LAE reserves <sup>(1)(7)</sup> |  |  | 165 |  | 165 |
| &nbsp;&nbsp;&nbsp;**Total policyholders' surplus and reserves** | **5736** | **2590** | **1425** | **(288)** | **9463** |
| Present value of installment premium | 503 | 200 | 252 |  | 955 |
| CCS | 200 | 200 |  |  | 400 |
| &nbsp;&nbsp;&nbsp;**Total claims-paying resources** | $**6439** | $**2990** | $**1677** | $**(288)** | $**10818** |
| Statutory net exposure <sup>(1)(3)</sup>  | $154628 | $20951 | $56732 | $(602) | $231709 |
| Net debt service outstanding <sup>(1)(3)</sup> | $249089 | $32983 | $87494 | $(1269) | $368297 |
| **Ratios:** |  |  |  |  |  |
| Net exposure to qualified statutory capital | 43:1 | 9:1 | 80:1 |  | 36:1 |
| Capital ratio <sup>(4)</sup> | 69:1 | 15:1 | 123:1 |  | 58:1 |
| Financial resources ratio <sup>(5)</sup> | 39:1 | 11:1 | 52:1 |  | 34:1 |
| Statutory net exposure to claims-paying resources | 24:1 | 7:1 | 34:1 |  | 21:1 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;The numbers shown for AGM have been adjusted to include 100% share of its United Kingdom (U.K.) and French insurance subsidiaries.

2)&nbsp;&nbsp;&nbsp;&nbsp;Eliminations are primarily for (i) intercompany surplus notes between AGM and AGC, and (ii) eliminations of intercompany deferred ceding commissions. Net exposure and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

3)&nbsp;&nbsp;&nbsp;&nbsp;Net exposure and net debt service outstanding are presented on a statutory basis. Includes $1,186 million of specialty insurance and reinsurance exposure, and a guarantee of rental income cash flows with maximum potential exposure of $228 million.

4)&nbsp;&nbsp;&nbsp;&nbsp;The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.

5)&nbsp;&nbsp;&nbsp;&nbsp;The financial resources ratio is calculated by dividing net debt service outstanding by total claims-paying resources.

6)&nbsp;&nbsp;&nbsp;&nbsp;Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of AG Re on a U.S. statutory basis, except for contingency reserves.

7)&nbsp;&nbsp;&nbsp;&nbsp;Loss and LAE reserves exclude adjustments to claims-paying resources for AGM and AGC because they were in a net recoverable position of $26 million and $49 million, respectively.

Please refer to the Glossary for an explanation of changes in the presentation of net debt service and net par outstanding.

------

**Assured Guaranty Ltd.**

New Business Production

(dollars in millions)

**Reconciliation of GWP to PVP for the Three Months Ended December 31, 2022 and December 31, 2021**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non - U.S.** | **U.S.**  | **Non - U.S.** |<br>**Total** | **U.S.** | **Non - U.S.** | **U.S.** | **Non - U.S.** |<br>**Total** |
| **Total GWP** | $**88** | $**9** | $**33** | $**1** | $**131** | $**71** | $**19** | $**8** | $**2** | $**100** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments <sup>(1)</sup> | 40 | 9 | 29 | 1 | 79 | 10 | 16 | 5 | 2 | 33 |
| Upfront GWP | 48 |  | 4 |  | 52 | 61 | 3 | 3 |  | 67 |
| &nbsp;&nbsp;Plus: Installment premiums and other<sup>(2)</sup> | 46 | 1 | 36 |  | 83 | 9 | 13 | 7 | 2 | 31 |
| Total PVP | $94 | $1 | $40 | $— | $135 | $70 | $16 | $10 | $2 | $98 |
| **Gross par written** | $**5819** | $**—** | $**971** | $**245** | $**7035** | $**5947** | $**—** | $**375** | $**164** | $**6486** |

---

**Reconciliation of GWP to PVP for the Year Ended December 31, 2022 and December 31, 2021**

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
| | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
| | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | &nbsp;&nbsp;&nbsp;&nbsp;**Public Finance** | **Structured Finance** | **Structured Finance** | |
| | **U.S.** | **Non - U.S.** | **U.S.** | **Non - U.S.** |<br>**Total** | **U.S.** | **Non - U.S.** | **U.S.** | **Non - U.S.** |<br>**Total** |
| **Total GWP** | $**248** | $**75** | $**37** | $**—** | $**360** | $**231** | $**89** | $**51** | $**6** | $**377** |
| &nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments <sup>(1)</sup> | 40 | 75 | 30 |  | 145 | 43 | 65 | 44 | 6 | 158 |
| Upfront GWP | 208 |  | 7 |  | 215 | 188 | 24 | 7 |  | 219 |
| &nbsp;&nbsp;Plus: Installment premiums and other<sup>(2)</sup> | 49 | 68 | 36 | 7 | 160 | 47 | 55 | 35 | 5 | 142 |
| Total PVP | $257 | $68 | $43 | $7 | $375 | $235 | $79 | $42 | $5 | $361 |
| **Gross par written** | $**19801** | $**624** | $**1077** | $**545** | $**22047** | $**23793** | $**1117** | $**1316** | $**430** | $**26656** |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturities such as Loss Mitigation Securities. The year 2022 also includes the present value of future premiums and fees associated with a financial guarantee written by the Company that, under GAAP, is accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Assured Guaranty Ltd.**

Gross Par Written (1 of 2)

(dollars in millions)

**Gross Par Written by Asset Type**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** |
| | **Gross Par Written** | **Average Internal Rating** | **Gross Par Written** | **Average Internal Rating** |
| **Sector:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**U.S. public finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General obligation | $1403 | BBB+ | $2609 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation | 732 | BBB+ | 856 | BBB |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal utilities | 980 | BBB+ | 684 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax backed | 949 | A | 970 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;Healthcare | 769 | BBB | 447 | BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Higher education | 366 | A- | 341 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;Infrastructure finance | 573 | BBB- | 40 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;Investor-owned utilities | 47 | BBB |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total U.S. public finance | 5819 | BBB+ | 5947 | A- |
| &nbsp;&nbsp;&nbsp;**Non-U.S. public finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. public finance |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Total public finance** | **5819** | **BBB+** | **5947** | **A-** |
| &nbsp;&nbsp;&nbsp;**U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance securitization | 653 | A | 217 | AA- |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled corporate obligations | 129 | AAA | 11 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 100 | A |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Structured credit | 10 | BBB |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 79 | A | 147 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total U.S. structured finance | 971 | A+ | 375 | A+ |
| &nbsp;&nbsp;&nbsp;**Non-U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled corporate obligations | 11 | AAA | 131 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 234 | A | 33 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. structured finance | 245 | A | 164 | AAA |
| &nbsp;&nbsp;&nbsp;**Total structured finance** | **1216** | **A+** | **539** | **AA-** |
| &nbsp;&nbsp;&nbsp;**Total gross par written** | $**7035** | **A-** | $**6486** | **A-** |

---

Please refer to the Glossary for a description of internal ratings and sectors.

------

**Assured Guaranty Ltd.**

Gross Par Written (2 of 2)

(dollars in millions)

**Gross Par Written by Asset Type**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** |
| | **Gross Par Written** | **Average Internal Rating** | **Gross Par Written** | **Average Internal Rating** |
| **Sector:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**U.S. public finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;General obligation | $6267 | A- | $9284 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Transportation | 3707 | BBB+ | 3307 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal utilities | 3240 | A | 3008 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Tax backed | 2754 | A | 4271 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Healthcare | 2355 | BBB+ | 1524 | BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Higher education | 734 | A- | 1544 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;Infrastructure finance | 697 | BBB- | 792 | BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Investor-owned utilities | 47 | BBB |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Housing revenue |  |  | 44 | BBB- |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  | 19 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total U.S. public finance | 19801 | A- | 23793 | A- |
| &nbsp;&nbsp;&nbsp;**Non-U.S. public finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Regulated utilities | 417 | BBB |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Infrastructure finance | 207 | BBB- | 858 | BBB |
| &nbsp;&nbsp;&nbsp;&nbsp;Renewable energy |  |  | 153 | BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Sovereign and sub-sovereign |  |  | 106 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. public finance | 624 | BBB | 1117 | BBB+ |
| &nbsp;&nbsp;&nbsp;**Total public finance** | **20425** | **A-** | **24910** | **A-** |
| &nbsp;&nbsp;&nbsp;**U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Insurance securitization | 653 | A | 1065 | A+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled corporate obligations | 129 | AAA | 11 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial mortgage-backed securities | 113 | A | 37 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;Structured credit | 27 | BBB |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 155 | A | 203 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total U.S. structured finance | 1077 | A+ | 1316 | A+ |
| &nbsp;&nbsp;&nbsp;**Non-U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial receivables <sup>(1)</sup> | 257 | AA |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Pooled corporate obligations | 11 | AAA | 397 | AA |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 277 | A | 33 | A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. structured finance | 545 | AA- | 430 | AA |
| &nbsp;&nbsp;&nbsp;**Total structured finance** | **1622** | **A+** | **1746** | **AA-** |
| &nbsp;&nbsp;&nbsp;**Total gross par written** | $**22047** | **A-** | $**26656** | **A-** |

---

(1)&nbsp;&nbsp;&nbsp;&nbsp;Represents guarantees of rental income cash flows.

Please refer to the Glossary for a description of internal ratings and sectors.

------

**Assured Guaranty Ltd.**

New Business Production by Quarter

(dollars in millions)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | | | | | **Year Ended** | **Year Ended** |
| |<br>**1Q-21** |<br>**2Q-21** |<br>**3Q-21** |<br>**4Q-21** |<br>**1Q-22** |<br>**2Q-22** |<br>**3Q-22** |<br>**4Q-22** | **2021** | **2022** |
| **PVP:** |  |  |  |  |  |  |  |  |  |  |
| Public finance - U.S. | $81 | $29 | $55 | $70 | $49 | $57 | $57 | $94 | $235 | $257 |
| Public finance - non-U.S. | 3 | 43 | 17 | 16 | 12 | 18 | 37 | 1 | 79 | 68 |
| Structured finance - U.S. | 2 | 9 | 21 | 10 | 2 |  | 1 | 40 | 42 | 43 |
| Structured finance - non-U.S. |  |  | 3 | 2 | 6 | 1 |  |  | 5 | 7 |
| Total PVP <sup>(1)</sup> | $86 | $81 | $96 | $98 | $69 | $76 | $95 | $135 | $361 | $375 |
| **Reconciliation of GWP to PVP:** |  |  |  |  |  |  |  |  |  |  |
| **Total GWP** | $**87** | $**84** | $**106** | $**100** | $**70** | $**65** | $**94** | $**131** | $**377** | $**360** |
| &nbsp;&nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments | 38 | 35 | 52 | 33 | 19 | 8 | 39 | 79 | 158 | 145 |
| Upfront GWP | 49 | 49 | 54 | 67 | 51 | 57 | 55 | 52 | 219 | 215 |
| &nbsp;&nbsp;Plus: Installment premiums and other<sup>(2)</sup> | 37 | 32 | 42 | 31 | 18 | 19 | 40 | 83 | 142 | 160 |
| Total PVP | $86 | $81 | $96 | $98 | $69 | $76 | $95 | $135 | $361 | $375 |
| **Gross par written:** |  |  |  |  |  |  |  |  |  |  |
| Public finance - U.S. | $5427 | $4716 | $7703 | $5947 | $3931 | $6429 | $3622 | $5819 | $23793 | $19801 |
| Public finance - non-U.S. |  | 961 | 156 |  | 223 | 207 | 194 |  | 1117 | 624 |
| Structured finance - U.S. | 45 | 460 | 436 | 375 | 60 | 16 | 30 | 971 | 1316 | 1077 |
| Structured finance - non-U.S. |  |  | 266 | 164 | 257 | 43 |  | 245 | 430 | 545 |
| **Total** | $**5472** | $**6137** | $**8561** | $**6486** | $**4471** | $**6695** | $**3846** | $**7035** | $**26656** | $**22047** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;First quarter 2022 PVP and gross par written includes the present value (PV) of future premiums and total exposure, respectively, associated with a financial guarantee written by the Company that, under GAAP, are accounted for under ASC 460, *Guarantees.*

2)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturities such as Loss Mitigation Securities. The year 2022 also includes the present value of future premiums and fees associated with a financial guarantee written by the Company that, under GAAP, is accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Assured Guaranty Ltd.**

Estimated Net Exposure Amortization<sup>(1)</sup> and Estimated Future Financial Guaranty Net Premium

and Credit Derivative Revenues

(dollars in millions)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | | | **Financial Guaranty Insurance** <sup>(2)</sup> | **Financial Guaranty Insurance** <sup>(2)</sup> | **Financial Guaranty Insurance** <sup>(2)</sup> | |
| |<br>**Estimated Net Debt Service Amortization** |<br>**Estimated Ending Net Debt Service Outstanding** | **Expected PV Net Earned Premiums (i.e. Net Deferred Premium Revenue)** | **Accretion of Discount** | **Effect of FG VIE Consolidation on Expected PV Net Earned Premiums and Accretion of Discount** |<br>**Future Credit Derivative Revenues** <sup>(3)</sup> |
| 2022 (as of December 31) |  | $369951 |  |  |  |  |
| 2023 Q1 | $4110 | 365841 | $69 | $6 | $1 | $2 |
| 2023 Q2 | 4139 | 361702 | 69 | 6 | 1 | 2 |
| 2023 Q3 | 6336 | 355366 | 69 | 6 | 1 | 2 |
| 2023 Q4 | 4941 | 350425 | 68 | 5 | 1 | 2 |
| 2024 | 18824 | 331601 | 260 | 21 | 3 | 8 |
| 2025 | 20170 | 311431 | 244 | 20 | 3 | 8 |
| 2026 | 19241 | 292190 | 229 | 18 | 2 | 8 |
| 2027 | 17646 | 274544 | 214 | 17 | 2 | 7 |
| 2023-2027 | 95407 | 274544 | 1222 | 99 | 14 | 39 |
| 2028-2032 | 83967 | 190577 | 898 | 70 | 11 | 30 |
| 2033-2037 | 66444 | 124133 | 608 | 47 | 11 | 24 |
| 2038-2042 | 47693 | 76440 | 370 | 31 | 1 | 16 |
| After 2042 | 76440 |  | 521 | 46 |  | 11 |
| &nbsp;&nbsp;**Total** | $**369951** |  | $**3619** | $**293** | $**37** | $**120** |

---

**Reconciliation of Net Deferred Premium Revenue to Net Unearned Premium Reserve**<sup>(4)</sup>

---

| | | |
|:---|:---|:---|
| | **GAAP** | **Effect of FG VIE Consolidation on Net Unearned Premium Reserve** |
| Net deferred premium revenue: |  |  |
| &nbsp;&nbsp;&nbsp;Financial guaranty | $3619 | $35 |
| &nbsp;&nbsp;&nbsp;Specialty | 10 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net deferred premium revenue | 3629 | 35 |
| Contra-paid | (23) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net unearned premium reserve** | $**3606** | $**31** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of December 31, 2022. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations, terminations and because of management's assumptions on structured finance amortization.

2)&nbsp;&nbsp;&nbsp;&nbsp;See also page 27, for ''Net Expected Loss to be Expensed.''

3)&nbsp;&nbsp;&nbsp;&nbsp;Represents expected future premiums on insured credit derivatives.

4)&nbsp;&nbsp;&nbsp;&nbsp;Unearned premium reserve represents deferred premium revenue less claim payments made (net of recoveries received) that have been recognized in the statement of operations (contra-paid).

------

**Assured Guaranty Ltd.**

Rollforward of Net Expected Loss and LAE to be Paid

(dollars in millions)

**Rollforward of Net Expected Loss and LAE to be Paid** <sup>(1)</sup> **for the Three Months Ended December 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Expected Loss to be Paid (Recovered) as of September 30, 2022** | **Economic Loss Development (Benefit) During 4Q-22** | **Net (Paid)<br>Recovered Losses During 4Q-22** | **Net Expected Loss to be Paid (Recovered) as of December 31, 2022** |
| Public Finance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. public finance | $626 | $35 | $(258) | $403 |
| &nbsp;&nbsp;&nbsp;Non-U.S public finance | 6 | 4 | (1) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Public Finance | 632 | 39 | (259) | 412 |
| Structured Finance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. RMBS | 52 | (16) | 30 | 66 |
| &nbsp;&nbsp;&nbsp;Other structured finance | 43 |  | 1 | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Structured Finance | 95 | (16) | 31 | 110 |
| Total | $**727** | $**23** | $**(228)** | $**522** |

---

**Rollforward of Net Expected Loss and LAE to be Paid** <sup>(1)</sup> **for the Year Ended December 31, 2022** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Expected Loss to be Paid (Recovered) as of December 31, 2021** | **Economic Loss Development (Benefit) During 2022** | **Net (Paid)<br>Recovered Losses During 2022** | **Net Expected Loss to be Paid (Recovered) as of December 31, 2022** |
| Public Finance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. public finance | $197 | $19 | $187 | $403 |
| &nbsp;&nbsp;&nbsp;Non-U.S public finance | 12 | (2) | (1) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;Public Finance | 209 | 17 | 186 | 412 |
| Structured Finance: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. RMBS | 150 | (143) | 59 | 66 |
| &nbsp;&nbsp;&nbsp;Other structured finance | 52 | 1 | (9) | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;Structured Finance | 202 | (142) | 50 | 110 |
| Total | $**411** | $**(125)** | $**236** | $**522** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes net expected loss to be paid (recovered), economic loss development (benefit) and (paid) recovered losses for all contracts (i.e., those accounted for as insurance, credit derivatives and FG VIEs).

------

**Assured Guaranty Ltd.**

Loss Measures

As of December 31, 2022

(dollars in millions)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| |<br> **Total Net Par Outstanding for BIG Transactions** | <br>**GAAP Loss and LAE**<sup>(1)</sup> | **Loss and LAE included in Adjusted Operating Income** <sup>(2)</sup> | **Insurance Segment** <br> **Loss and LAE**<sup>(3)</sup> | <br>**GAAP Loss and LAE** <sup>(1)</sup> | **Loss and LAE included in Adjusted Operating Income** <sup>(2)</sup> | **Insurance Segment** <br> **Loss and LAE**<sup>(3)</sup> |
| Public finance: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. public finance | $3796 | $**58** | $58 | $58 | $**125** | $125 | $128 |
| &nbsp;&nbsp;&nbsp;Non-U.S public finance | 981 | **—** |  |  | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Public finance | 4777 | **58** | 58 | 58 | **125** | 125 | 128 |
| Structured finance: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;U.S. RMBS | $1010 | **(15)** | (16) | (16) | **(112)** | (109) | (120) |
| &nbsp;&nbsp;&nbsp;Other structured finance | 105 | **2** | 2 | 2 | **3** | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Structured finance | 1115 | **(13)** | (14) | (14) | **(109)** | (105) | (116) |
| **Total** | $**5892** | $**45** | $44 | $44 | $**16** | $20 | $12 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Includes loss expense related to contracts that are accounted for as insurance contracts.

2)&nbsp;&nbsp;&nbsp;&nbsp;Includes loss expense related to contracts that are accounted for as insurance contracts and credit derivatives.

3)&nbsp;&nbsp;&nbsp;&nbsp;Includes loss expense related to contracts that are accounted for as insurance contracts, credit derivatives, and consolidated FG VIEs.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

------

**Assured Guaranty Ltd.**

Net Expected Loss to be Expensed <sup>(1)</sup>

As of December 31, 2022

(dollars in millions)

---

| | |
|:---|:---|
| | **GAAP** |
| 2023 Q1 | $**2** |
| 2023 Q2 | **2** |
| 2023 Q3 | **3** |
| 2023 Q4 | **3** |
| 2024 | **12** |
| 2025 | **13** |
| 2026 | **17** |
| 2027 | **15** |
| 2023-2027 | **67** |
| 2028-2032 | **61** |
| 2033-2037 | **43** |
| 2038-2042 | **8** |
| After 2042 | **12** |
| &nbsp;&nbsp;**Total expected present value of net expected loss to be expensed** <sup>(2)</sup> | **191** |
| Future accretion | **82** |
| &nbsp;&nbsp;**Total expected future loss and LAE** | $**273** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;The present value of net expected loss to be paid is discounted using risk free rates ranging from 3.82% to 4.69% for U.S. dollar denominated obligations.

2)&nbsp;&nbsp;&nbsp;&nbsp;Excludes $28 million related to FG VIEs, which are eliminated in consolidation.

------

**Assured Guaranty Ltd.**

Financial Guaranty Profile (1 of 3)

(dollars in millions)

**Net Par Outstanding and Average Internal Rating by Asset Type** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2021** | **As of December 31, 2021** |
| | **Net Par Outstanding** | **Average Internal Rating** | **Net Par Outstanding** | **Average Internal Rating** |
| **U.S. public finance:** | | | | |
| &nbsp;&nbsp;&nbsp;General obligation | $71868 | A- | $72896 | A- |
| &nbsp;&nbsp;&nbsp;Tax backed | 33752 | A- | 35726 | A- |
| &nbsp;&nbsp;&nbsp;Municipal utilities | 26436 | A- | 25556 | A- |
| &nbsp;&nbsp;&nbsp;Transportation | 19688 | A- | 17241 | BBB+ |
| &nbsp;&nbsp;&nbsp;Healthcare | 11304 | BBB+ | 9588 | BBB+ |
| &nbsp;&nbsp;&nbsp;Higher education | 7137 | A- | 6927 | A- |
| &nbsp;&nbsp;&nbsp;Infrastructure finance | 6955 | A- | 6329 | A- |
| &nbsp;&nbsp;&nbsp;Housing revenue | 959 | BBB- | 1000 | BBB- |
| &nbsp;&nbsp;&nbsp;Investor-owned utilities | 332 | A- | 611 | A- |
| &nbsp;&nbsp;&nbsp;Renewable energy | 180 | A- | 193 | A- |
| &nbsp;&nbsp;&nbsp;Other public finance | 1025 | BBB | 1152 | A- |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. public finance | 179636 | A- | 177219 | A- |
| **Non-U.S public finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Regulated utilities | 17855 | BBB+ | 18814 | BBB+ |
| &nbsp;&nbsp;&nbsp;Infrastructure finance | 13915 | BBB | 16475 | BBB |
| &nbsp;&nbsp;&nbsp;Sovereign and sub-sovereign | 9526 | A+ | 10886 | A+ |
| &nbsp;&nbsp;&nbsp;Renewable energy | 2086 | A- | 2398 | A- |
| &nbsp;&nbsp;&nbsp;Pooled infrastructure | 1081 | AAA | 1372 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. public finance | 44463 | BBB+ | 49945 | BBB+ |
| **Total public finance** | **224099** | **A-** | **227164** | **A-** |
| **U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Life insurance transactions | 3879 | AA- | 3431 | AA- |
| &nbsp;&nbsp;&nbsp;RMBS | 1956 | BBB- | 2391 | BB+ |
| &nbsp;&nbsp;&nbsp;Pooled corporate obligations | 625 | AAA | 534 | AA+ |
| &nbsp;&nbsp;&nbsp;Financial products | 453 | AA- | 770 | AA- |
| &nbsp;&nbsp;&nbsp;Consumer receivables | 437 | A | 583 | A+ |
| &nbsp;&nbsp;&nbsp;Other structured finance | 878 | BBB+ | 665 | BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. structured finance | 8228 | A | 8374 | A |
| **Non-U.S. structured finance:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Pooled corporate obligations | 344 | AAA | 351 | AAA |
| &nbsp;&nbsp;&nbsp;RMBS | 263 | A- | 325 | A |
| &nbsp;&nbsp;&nbsp;Other structured finance | 324 | AA- | 178 | AA |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S structured finance | 931 | AA | 854 | AA |
| **Total structured finance** | **9159** | **A** | **9228** | **A** |
| **Total** | $**233258** | **A-** | $**236392** | **A-** |

---

Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.

------

**Assured Guaranty Ltd.**

Financial Guaranty Profile (2 of 3)

As of December 31, 2022

(dollars in millions)

**Distribution by Ratings of Financial Guaranty Portfolio** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Public Finance - U.S.** | **Public Finance - U.S.** | **Public Finance - Non-U.S.** | **Public Finance - Non-U.S.** | **Structured Finance - U.S.** | **Structured Finance - U.S.** | **Structured Finance - Non-U.S.** | **Structured Finance - Non-U.S.** | **Total** | **Total** |
| **Ratings:** | **Net Par Outstanding** | **%** | **Net Par Outstanding** | **%** | **Net Par Outstanding** | **%** | **Net Par Outstanding** | **%** | **Net Par Outstanding** | **%** |
| AAA | $222 | 0.1% | $1967 | 4.4% | $926 | 11.2% | $469 | 50.4% | $3584 | 1.5% |
| AA | 16241 | 9.1 | 3497 | 7.9 | 4633 | 56.3 | 12 | 1.3 | 24383 | 10.5 |
| A | 96807 | 53.9 | 9271 | 20.9 | 1075 | 13.1 | 340 | 36.5 | 107493 | 46.1 |
| BBB | 62570 | 34.8 | 28747 | 64.6 | 479 | 5.8 | 110 | 11.8 | 91906 | 39.4 |
| BIG | 3796 | 2.1 | 981 | 2.2 | 1115 | 13.6 |  |  | 5892 | 2.5 |
| &nbsp;&nbsp;**Net Par Outstanding** <sup>(1)</sup> | $**179636** | **100.0%** | $**44463** | **100.0%** | $**8228** | **100.0%** | $**931** | **100.0%** | $**233258** | **100.0%** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;As of December 31, 2022, the Company excluded $1.3 billion of net par attributable to loss mitigation securities.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and the Company's internal rating approach, and of the various sectors.

------

**Assured Guaranty Ltd.**

Financial Guaranty Profile (3 of 3)

As of December 31, 2022

(dollars in millions)

**Geographic Distribution of Financial Guaranty Portfolio** 

---

| | | |
|:---|:---|:---|
| | **Net Par Outstanding** | **% of Total** |
| **U.S.:** | | |
| &nbsp;&nbsp;&nbsp;U.S. public finance: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;California | $36818 | 15.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Texas | 18973 | 8.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pennsylvania | 16142 | 6.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;New York | 15580 | 6.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Illinois | 12824 | 5.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;New Jersey | 9610 | 4.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Florida | 7790 | 3.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Louisiana | 4979 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Michigan | 4943 | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Alabama | 3763 | 1.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 48214 | 20.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total U.S. public finance | 179636 | 77.0 |
| &nbsp;&nbsp;&nbsp;U.S. structured finance | 8228 | 3.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total U.S.** | **187864** | **80.5** |
| **Non-U.S.:** |  |  |
| &nbsp;&nbsp;&nbsp;United Kingdom | 34903 | 15.0 |
| &nbsp;&nbsp;&nbsp;Canada | 1728 | 0.7 |
| &nbsp;&nbsp;&nbsp;Spain | 1575 | 0.7 |
| &nbsp;&nbsp;&nbsp;Australia | 1506 | 0.6 |
| &nbsp;&nbsp;&nbsp;France | 1437 | 0.7 |
| &nbsp;&nbsp;&nbsp;Other | 4245 | 1.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-U.S.** | **45394** | **19.5** |
| **Total net par outstanding** | $**233258** | **100.0%** |

---

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

------

**Assured Guaranty Ltd.**

Specialty Insurance, Reinsurance and Guaranties

(dollars in millions)

&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2021** | **As of December 31, 2021** |
| | **Gross Exposure** | **Net Exposure** | **Gross Exposure** | **Net Exposure** |
| Life insurance transactions <sup>(1)</sup> | $1314 | $986 | $1250 | $871 |
| Aircraft residual value insurance policies <sup>(2)</sup> | 355 | 200 | 355 | 200 |
| Other guaranties | 228 | 228 |  |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;The life insurance transactions net exposure is projected to reach $1.1 billion by June 30, 2024.

2)&nbsp;&nbsp;&nbsp;&nbsp;As of both December 31, 2022 and December 31, 2021, gross exposure of $144 million and net exposure of $84 million of aircraft residual value insurance was rated BIG.

------

**Assured Guaranty Ltd.**

Expected Amortization of Net Par Outstanding

(dollars in millions)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Public Finance** | **Public Finance** | **Structured Finance** | **Structured Finance** | **Structured Finance** | **Structured Finance** | **Structured Finance** | **Structured Finance** |
| | **Estimated Net Par Amortization** | **Estimated Ending Net Par Outstanding** | **U.S. and Non-U.S. Pooled Corporate** | **U.S. RMBS** | **Financial Products** | **Other Structured Finance** | **Total** | **Estimated Ending Net Par Outstanding** |
| 2022 (as of December 31) |  | $224099 |  |  |  |  |  | $9159 |
| 2023 Q1 | $925 | 223174 | $8 | $97 | $20 | $126 | $251 | 8908 |
| 2023 Q2 | 1070 | 222104 | 7 | 91 | 2 | 95 | 195 | 8713 |
| 2023 Q3 | 3632 | 218472 | 9 | 90 | (13) | 38 | 124 | 8589 |
| 2023 Q4 | 2290 | 216182 | 7 | 86 | (3) | 262 | 352 | 8237 |
| 2024 | 9003 | 207179 | 34 | 303 | 10 | 168 | 515 | 7722 |
| 2025 | 10795 | 196384 | 85 | 252 | 29 | 159 | 525 | 7197 |
| 2026 | 10348 | 186036 | 114 | 178 | 36 | 215 | 543 | 6654 |
| 2027 | 9155 | 176881 | 194 | 144 | (8) | 258 | 588 | 6066 |
| 2023-2027 | 47218 | 176881 | 458 | 1241 | 73 | 1321 | 3093 | 6066 |
| 2028-2032 | 47902 | 128979 | 351 | 312 | 303 | 1829 | 2795 | 3271 |
| 2033-2037 | 41695 | 87284 | 74 | 317 | 63 | 1283 | 1737 | 1534 |
| 2038-2042 | 31597 | 55687 | 86 | 79 | 14 | 812 | 991 | 543 |
| After 2042 | 55687 |  |  | 7 |  | 536 | 543 |  |
| &nbsp;&nbsp;**Total** | $**224099** |  | $**969** | $**1956** | $**453** | $**5781** | $**9159** |  |

---

**Net par outstanding (end of period)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **1Q-21** | **2Q-21** | **3Q-21** | **4Q-21** | **1Q-22** | **2Q-22** | **3Q-22** | **4Q-22** |
| Public finance - U.S. | $172941 | $173667 | $175952 | $177219 | $175957 | $179648 | $177842 | $179636 |
| Public finance - non-U.S. | 52099 | 51966 | 50305 | 49945 | 48506 | 44447 | 41063 | 44463 |
| Structured finance - U.S. | 8678 | 8568 | 8677 | 8374 | 8101 | 7935 | 7449 | 8228 |
| Structured finance - non-U.S. | 552 | 535 | 734 | 854 | 815 | 782 | 717 | 931 |
| **Net par outstanding** | $**234270** | $**234736** | $**235668** | $**236392** | $**233379** | $**232812** | $**227071** | $**233258** |

---

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

------

**Assured Guaranty Ltd.**

Exposure to Puerto Rico (1 of 2)

As of December 31, 2022

(dollars in millions)

**Exposure to Puerto Rico**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Par Outstanding** | **Par Outstanding** | **Debt Service Outstanding** | **Debt Service Outstanding** |
| | **Gross** | **Net** | **Gross** | **Net** |
| Total | $1378 | $1361 | $1899 | $1878 |

---

**Exposure to Puerto Rico by Company** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Net Par Outstanding** | **Net Par Outstanding** | **Net Par Outstanding** | **Net Par Outstanding** | **Net Par Outstanding** | |
| | **AGM** | **AGC** | **AG Re** | **Eliminations** <sup>(1)</sup> | **Total Net Par Outstanding** |<br>**Gross Par Outstanding** |
| **Resolved Puerto Rico Exposures** | | | | | | |
| &nbsp;&nbsp;Puerto Rico Highways and Transportation Authority (PRHTA) (Transportation revenue) <sup>(2)</sup> | $49 | $183 | $108 | $(42) | $298 | $298 |
| &nbsp;&nbsp;PRHTA (Highway revenue) <sup>(2)</sup> | 140 | 30 | 12 |  | 182 | 182 |
| &nbsp;&nbsp;Commonwealth of Puerto Rico - General Obligation (GO) <sup>(3)</sup> |  | 19 | 6 |  | 25 | 25 |
| &nbsp;&nbsp;Puerto Rico Buildings Authority (PBA)<sup>(3)</sup> | 1 | 4 |  | (1) | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Resolved** | **190** | **236** | **126** | **(43)** | **509** | **509** |
| **Other Puerto Rico Exposures** |  |  |  |  |  |  |
| &nbsp;&nbsp;Puerto Rico Electric Power Authority (PREPA) <sup>(4)</sup> | 446 | 69 | 205 |  | 720 | 730 |
| &nbsp;&nbsp;Puerto Rico Municipal Finance Agency (MFA) <sup>(5)</sup> | 101 | 6 | 24 |  | 131 | 138 |
| &nbsp;&nbsp;Puerto Rico Aqueduct and Sewer Authority (PRASA) and University of Puerto Rico (U of PR) <sup>(5)</sup> |  | 1 |  |  | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total Other** | **547** | **76** | **229** | **—** | **852** | **869** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total exposure to Puerto Rico** | $**737** | $**312** | $**355** | $**(43)** | $**1361** | $**1378** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Net par outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.

2)&nbsp;&nbsp;&nbsp;&nbsp;Resolved on December 6, 2022, pursuant to the Modified Fifth Amended Title III Plan of Adjustment of the Puerto Rico Highways and Transportation Authority.

3)&nbsp;&nbsp;&nbsp;&nbsp;Resolved on March 15, 2022, pursuant to the Modified Eighth Amended Title III Plan of Adjustment of the Commonwealth of Puerto Rico, the Employees Retirement System of the Government of the Commonwealth of Puerto Rico, and the Puerto Rico Public Buildings Authority.

4)&nbsp;&nbsp;&nbsp;&nbsp;This exposure is in payment default.

5)&nbsp;&nbsp;&nbsp;&nbsp;All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.

------

**Assured Guaranty Ltd.**

Exposure to Puerto Rico (2 of 2)

As of December 31, 2022

(dollars in millions)

**Amortization Schedule of Net Par Outstanding of Puerto Rico** 

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023 Q1** | **2023 Q2** | **2023 Q3** | **2023 Q4** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033 -2037** | **2038 -2042** | **Total** |
| **Resolved Puerto Rico Exposures** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PRHTA (Transportation revenue) | $— | $— | $10 | $— | $— | $8 | $8 | $— | $— | $12 | $— | $— | $— | $127 | $133 | $298 |
| PRHTA (Highway revenue) |  |  |  |  |  |  |  |  | 8 | 8 | 8 | 30 | 27 | 101 |  | 182 |
| Commonwealth of Puerto Rico - GO |  |  |  |  |  |  | 2 | 4 |  | 19 |  |  |  |  |  | 25 |
| PBA |  |  | 2 |  |  | 2 |  |  |  |  |  |  |  |  |  | 4 |
| &nbsp;&nbsp;**Total Resolved** | **—** | **—** | **12** | **—** | **—** | **10** | **10** | **4** | **8** | **39** | **8** | **30** | **27** | **228** | **133** | **509** |
| **Other Puerto Rico Exposures** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PREPA |  |  | 95 |  | 93 | 68 | 105 | 105 | 69 | 39 | 44 | 75 | 14 | 13 |  | 720 |
| MFA |  |  | 18 |  | 18 | 18 | 37 | 15 | 12 | 7 | 6 |  |  |  |  | 131 |
| PRASA and U of PR |  |  |  |  | 1 |  |  |  |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;**Total Other** | **—** | **—** | **113** | **—** | **112** | **86** | **142** | **120** | **81** | **46** | **50** | **75** | **14** | **13** | **—** | **852** |
| &nbsp;&nbsp;**Total** | $**—** | $**—** | $**125** | $**—** | $**112** | $**96** | $**152** | $**124** | $**89** | $**85** | $**58** | $**105** | $**41** | $**241** | $**133** | $**1361** |

---

**Amortization Schedule of Net Debt Service Outstanding of Puerto Rico**

---

| | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023 Q1** | **2023 Q2** | **2023 Q3** | **2023 Q4** | **2024** | **2025** | **2026** | **2027** | **2028** | **2029** | **2030** | **2031** | **2032** | **2033 -2037** | **2038 -2042** | **Total** |
| **Resolved Puerto Rico Exposures** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PRHTA (Transportation revenue) | $8 | $— | $18 | $— | $15 | $23 | $22 | $14 | $14 | $26 | $14 | $14 | $14 | $182 | $151 | $515 |
| PRHTA (Highway revenue) | 5 |  | 5 |  | 9 | 9 | 10 | 10 | 18 | 17 | 17 | 38 | 34 | 116 |  | 288 |
| Commonwealth of Puerto Rico - GO |  |  | 1 |  | 2 | 1 | 3 | 6 | 1 | 20 |  |  |  |  |  | 34 |
| PBA |  |  | 2 |  |  | 3 |  |  |  |  |  |  |  |  |  | 5 |
| &nbsp;&nbsp;**Total Resolved** | **13** | **—** | **26** | **—** | **26** | **36** | **35** | **30** | **33** | **63** | **31** | **52** | **48** | **298** | **151** | **842** |
| **Other Puerto Rico Exposures** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| PREPA | 14 | 3 | 109 | 3 | 122 | 92 | 126 | 122 | 80 | 47 | 51 | 81 | 15 | 14 |  | 879 |
| MFA | 3 |  | 21 |  | 24 | 22 | 41 | 17 | 14 | 8 | 6 |  |  |  |  | 156 |
| PRASA and U of PR |  |  |  |  | 1 |  |  |  |  |  |  |  |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;**Total Other** | **17** | **3** | **130** | **3** | **147** | **114** | **167** | **139** | **94** | **55** | **57** | **81** | **15** | **14** | **—** | **1036** |
| &nbsp;&nbsp;**Total** | $**30** | $**3** | $**156** | $**3** | $**173** | $**150** | $**202** | $**169** | $**127** | $**118** | $**88** | $**133** | $**63** | $**312** | $**151** | $**1878** |

---

------

**Assured Guaranty Ltd.**

U.S. RMBS Profile

As of December 31, 2022

(dollars in millions)

**Distribution of U.S. RMBS by Rating and Type of Exposure** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Ratings:** | **Prime First Lien** | **Alt-A First Lien** | **Option ARMs** | **Subprime First Lien** | **Second Lien** | **Total Net Par Outstanding** |
| AAA | $3 | $67 | $9 | $371 | $2 | $452 |
| AA | 10 | 76 | 7 | 142 | 191 | 426 |
| A | 6 |  |  | 7 | 9 | 22 |
| BBB |  |  |  | 38 | 8 | 46 |
| BIG | 38 | 208 | 16 | 633 | 115 | 1010 |
| &nbsp;&nbsp;**Total exposures** | $**57** | $**351** | $**32** | $**1191** | $**325** | $**1956** |

---

**Distribution of U.S. RMBS by Year Insured and Type of Exposure**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Year insured:** | **Prime First Lien** | **Alt-A First Lien** | **Option ARMs** | **Subprime First Lien** | **Second Lien** | **Total Net Par Outstanding** |
| 2004 and prior | $10 | $8 | $— | $342 | $14 | $374 |
| 2005 | 22 | 122 | 15 | 184 | 53 | 396 |
| 2006 | 25 | 25 | 1 | 44 | 109 | 204 |
| 2007 |  | 196 | 16 | 590 | 149 | 951 |
| 2008 |  |  |  | 31 |  | 31 |
| &nbsp;&nbsp;**Total exposures** | $**57** | $**351** | $**32** | $**1191** | $**325** | $**1956** |

---

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding, internal ratings and a description of sectors.

------

**Assured Guaranty Ltd.**

Direct Pooled Corporate Obligations Profile

As of December 31, 2022

(dollars in millions)

**Distribution of Direct Pooled Corporate Obligations by Ratings** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Net Par Outstanding** | **% of Total** | **Average Initial Credit Enhancement** | **Average Current Credit Enhancement** |
| **Ratings:** | | | | |
| AAA | $793 | 82.0% | 41.9% | 50.7% |
| AA | 52 | 5.4 | 41.1% | 51.1% |
| A | 93 | 9.6 | 38.1% | 47.3% |
| BBB | 29 | 3.0 | 42.1% | 44.6% |
| &nbsp;&nbsp;**Total exposures** | $**967** | **100.0%** | **41.5%** | **50.2%** |

---

**Distribution of Direct Pooled Corporate Obligations by Asset Class** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Net Par Outstanding** | **% of Total** | **Average Initial Credit Enhancement** | **Average. Current Credit Enhancement** | **Number of Transactions** | **Average Rating** |
| **Asset class:** | | | | | | |
| &nbsp;&nbsp;&nbsp;Trust preferred |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Banks and insurance | $367 | 38.0% | 43.7% | 62.7% | 12 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. mortgage and real estate investment trusts | 85 | 8.7 | 47.3% | 64.5% | 3 | A+ |
| &nbsp;&nbsp;&nbsp;CLOs | 515 | 53.3 | 38.9% | 39.0% | 6 | AAA |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total exposures** | $**967** | **100.0%** | **41.5%** | **50.2%** | **21** | **AAA** |

---

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.

------

**Assured Guaranty Ltd.**

Below Investment Grade Exposures (1 of 3)

(dollars in millions)

**BIG Exposures by Asset Exposure Type** 

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2021** |
| **U.S. public finance:** | | |
| &nbsp;&nbsp;&nbsp;Healthcare | $1085 | $23 |
| &nbsp;&nbsp;&nbsp;Municipal utilities | 1025 | 1069 |
| &nbsp;&nbsp;&nbsp;Tax backed | 889 | 2327 |
| &nbsp;&nbsp;&nbsp;General obligation | 337 | 1561 |
| &nbsp;&nbsp;&nbsp;Transportation | 109 | 110 |
| &nbsp;&nbsp;&nbsp;Higher education | 107 | 46 |
| &nbsp;&nbsp;&nbsp;Housing revenue | 73 | 90 |
| &nbsp;&nbsp;&nbsp;Infrastructure finance | 46 | 46 |
| &nbsp;&nbsp;&nbsp;Other public finance | 125 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. public finance | 3796 | 5372 |
| **Non-U.S. public finance:** |  |  |
| &nbsp;&nbsp;&nbsp;Infrastructure finance | 911 | 470 |
| &nbsp;&nbsp;&nbsp;Sovereign and sub-sovereign | 52 | 102 |
| &nbsp;&nbsp;&nbsp;Renewable energy | 18 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. public finance | 981 | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total public finance** | **4777** | **5972** |
| **U.S. structured finance:** |  |  |
| &nbsp;&nbsp;&nbsp;RMBS | 1010 | 1265 |
| &nbsp;&nbsp;&nbsp;Consumer receivables | 60 | 72 |
| &nbsp;&nbsp;&nbsp;Life insurance transactions | 40 | 40 |
| &nbsp;&nbsp;&nbsp;Other structured finance | 5 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total U.S. structured finance | 1115 | 1384 |
| **Non-U.S. structured finance:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total non-U.S. structured finance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total structured finance** | **1115** | **1384** |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total BIG net par outstanding** | $**5892** | $**7356** |

---

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.

------

**Assured Guaranty Ltd.**

Below Investment Grade Exposures (2 of 3)

(dollars in millions)

**Net Par Outstanding by BIG Category** <sup>(1)</sup> 

 

---

| | | |
|:---|:---|:---|
| | **As of** | **As of** |
| | **December 31, 2022** | **December 31, 2021** |
| **BIG Category 1** | | |
| &nbsp;&nbsp;&nbsp;U.S. public finance | $2364 | $1765 |
| &nbsp;&nbsp;&nbsp;Non-U.S. public finance | 981 | 556 |
| &nbsp;&nbsp;&nbsp;U.S. structured finance | 18 | 122 |
| &nbsp;&nbsp;&nbsp;Non-U.S. structured finance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total BIG Category 1 | 3363 | 2443 |
| **BIG Category 2** |  |  |
| &nbsp;&nbsp;&nbsp;U.S. public finance | 108 | 116 |
| &nbsp;&nbsp;&nbsp;Non-U.S. public finance |  |  |
| &nbsp;&nbsp;&nbsp;U.S. structured finance | 73 | 65 |
| &nbsp;&nbsp;&nbsp;Non-U.S. structured finance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total BIG Category 2 | 181 | 181 |
| **BIG Category 3** |  |  |
| &nbsp;&nbsp;&nbsp;U.S. public finance | 1324 | 3491 |
| &nbsp;&nbsp;&nbsp;Non-U.S. public finance |  | 44 |
| &nbsp;&nbsp;&nbsp;U.S. structured finance | 1024 | 1197 |
| &nbsp;&nbsp;&nbsp;Non-U.S. structured finance |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total BIG Category 3 | 2348 | 4732 |
| &nbsp;&nbsp;&nbsp;&nbsp;**BIG Total** | $**5892** | $**7356** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Assured Guaranty's surveillance department is responsible for monitoring the Company's portfolio of credits and maintains a list of BIG credits. BIG Category 1: Below-investment-grade transactions showing sufficient deterioration to make future losses possible, but for which none are currently expected. BIG Category 2: Below-investment-grade transactions for which future losses are expected but for which no claims (other than liquidity claims which are claims that the Company expects to be reimbursed within one year) have yet been paid. BIG Category 3: Below-investment-grade transactions for which future losses are expected and on which claims (other than liquidity claims) have been paid.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

------

**Assured Guaranty Ltd.**

Below Investment Grade Exposures (3 of 3)

As of December 31, 2022

(dollars in millions)

**Public Finance and Structured Finance BIG Exposures with Revenue Sources Greater Than $50 Million** 

---

| | | | |
|:---|:---|:---|:---|
| | **Net Par Outstanding** | **Internal Rating** <sup>(1)</sup> | **60+ Day Delinquencies** |
| **Name or description** | | | |
| **U.S. public finance:** | | | |
| &nbsp;&nbsp;&nbsp;ProMedica Healthcare Obligated Group, Ohio | $820 | BB+ |  |
| &nbsp;&nbsp;&nbsp;Puerto Rico Electric Power Authority | 720 | CCC |  |
| &nbsp;&nbsp;&nbsp;Puerto Rico Highways & Transportation Authority | 480 | CCC |  |
| &nbsp;&nbsp;&nbsp;Illinois Sports Facilities Authority | 259 | BB+ |  |
| &nbsp;&nbsp;&nbsp;OU Medicine, Oklahoma | 253 | BB+ |  |
| &nbsp;&nbsp;&nbsp;Jackson Water & Sewer System, Mississippi | 164 | BB |  |
| &nbsp;&nbsp;&nbsp;Puerto Rico Municipal Finance Agency | 131 | CCC |  |
| &nbsp;&nbsp;&nbsp;Stockton City, California | 96 | B |  |
| &nbsp;&nbsp;&nbsp;New Jersey City University | 87 | BB |  |
| &nbsp;&nbsp;&nbsp;Harrisburg Parking System, Pennsylvania | 79 | B |  |
| &nbsp;&nbsp;&nbsp;San Jacinto River Authority (GRP Project), Texas | 62 | BB+ |  |
| &nbsp;&nbsp;&nbsp;Indiana University of Pennsylvania, Pennsylvania | 58 | CCC |  |
| &nbsp;&nbsp;&nbsp;Atlantic City, New Jersey | 54 | BB |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total U.S. public finance** | **3263** |  |  |
| **Non-U.S. public finance:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | 522 | BB |  |
| &nbsp;&nbsp;&nbsp;Road Management Services PLC (A13 Highway) | 132 | B+ |  |
| &nbsp;&nbsp;&nbsp;Dartford & Gravesham NHS Trust The Hospital Company (Dartford) Plc | 115 | BB+ |  |
| &nbsp;&nbsp;&nbsp;M6 Duna Autopalya Koncesszios Zrt. | 63 | BB+ |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total non-U.S. public finance** | **832** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total public finance** | **4095** |  |  |
| **U.S. structured finance:** |  |  |  |
| &nbsp;&nbsp;&nbsp;**RMBS:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Option One 2007-FXD2 | 118 | CCC | 16.4% |
| &nbsp;&nbsp;&nbsp;Option One Mortgage Loan Trust 2007-HL1 | 99 | CCC | 26.3% |
| &nbsp;&nbsp;&nbsp;Argent Securities Inc. 2005-W4 | 93 | CCC | 10.5% |
| &nbsp;&nbsp;&nbsp;Nomura Asset Accept. Corp. 2007-1 | 65 | CCC | 20.4% |
| &nbsp;&nbsp;&nbsp;New Century 2005-A | 57 | CCC | 16.0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total RMBS-U.S. structured finance** | **432** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total non-U.S. structured finance** | **—** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total structured finance** | **432** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total** | $**4527** |  |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

------

**Assured Guaranty Ltd.**

Largest Exposures by Sector (1 of 3)

As of December 31, 2022

(dollars in millions)

**50 Largest U.S. Public Finance Exposures by Revenue Source** 

---

| | | |
|:---|:---|:---|
| **Credit Name:** | **Net Par Outstanding** | **Internal Rating**<sup>(1)</sup> |
| New Jersey (State of) | $3130 | BBB |
| Pennsylvania (Commonwealth of) | 2271 | BBB+ |
| Metro Washington Airports Authority (Dulles Toll Road) | 1630 | BBB+ |
| New York Metropolitan Transportation Authority | 1568 | A- |
| Illinois (State of) | 1312 | BBB- |
| Foothill/Eastern Transportation Corridor Agency, California | 1309 | BBB+ |
| Alameda Corridor Transportation Authority, California | 1261 | BBB+ |
| North Texas Tollway Authority | 1239 | A+ |
| Port Authority of New York and New Jersey | 1034 | BBB |
| CommonSpirit Health, Illinois | 1000 | A- |
| San Joaquin Hills Transportation, California | 990 | BBB |
| Yankee Stadium LLC New York City Industrial Development Authority | 924 | BBB |
| San Diego Family Housing, LLC | 911 | AA |
| Philadelphia School District, Pennsylvania | 892 | A- |
| Montefiore Medical Center, New York | 837 | BBB- |
| Great Lakes Water Authority (Sewerage), Michigan | 821 | A- |
| ProMedica Healthcare Obligated Group, Ohio | 820 | BB+ |
| Dade County Seaport, Florida | 810 | A |
| Wisconsin (State of) | 779 | A |
| Metropolitan Pier and Exposition Authority, Illinois | 779 | BBB- |
| California (State of) | 772 | AA- |
| Jefferson County Alabama Sewer | 764 | BBB |
| Tucson (City of), Arizona | 760 | A+ |
| Nassau County, New York | 753 | A |
| New York (City of), New York | 750 | AA- |
| Massachusetts (Commonwealth of) Water Resources | 750 | AA |
| Central Florida Expressway Authority, Florida | 745 | A+ |
| Chicago Public Schools, Illinois | 731 | BBB- |
| New York Power Authority | 726 | AA- |
| Puerto Rico Electric Power Authority | 720 | CCC |
| Los Angeles Department of Airports (LAX Project), California | 719 | A- |
| South Carolina Public Service Authority - Santee Cooper | 715 | BBB |
| Pennsylvania Turnpike Commission | 701 | A- |
| Anaheim (City of), California | 700 | A- |
| Clark County School District, Nevada | 692 | BBB+ |
| Suffolk County, New York | 687 | BBB+ |
| Philadelphia (City of), Pennsylvania | 675 | BBB+ |
| Pittsburgh Water & Sewer, Pennsylvania | 666 | A- |
| Chicago-O'Hare International Airport, Illinois | 657 | A- |
| North Carolina Turnpike Authority | 628 | BBB- |
| Municipal Electric Authority of Georgia | 622 | BBB+ |
| Mets Queens Ballpark | 608 | BBB |
| Oglethorpe Power Corporation, Georgia | 575 | BBB |
| Hayward Unified School District, California | 547 | A |
| Palomar Health | 546 | BBB |
| Kansas City, Missouri | 535 | A |
| LCOR Alexandria LLC | 519 | BBB |
| Regional Transportation Authority (Sales Tax), Illinois | 518 | AA- |
| Duval County School Board, Florida | 509 | A |
| Long Island Power Authority | 503 | A- |
| &nbsp;&nbsp;&nbsp; **Total top 50 U.S. public finance exposures** | $**44110** |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

------

**Assured Guaranty Ltd.**

Largest Exposures by Sector (2 of 3)

As of December 31, 2022

(dollars in millions)

**25 Largest U.S. Structured Finance Exposures** 

---

| | | |
|:---|:---|:---|
| **Credit Name:** | **Net Par Outstanding** | **Internal Rating**<sup>(1)</sup> |
| Private US Insurance Securitization | $1100 | AA |
| Private US Insurance Securitization | 910 | AA- |
| Private US Insurance Securitization | 500 | A |
| Private US Insurance Securitization | 400 | AA- |
| Private US Insurance Securitization | 395 | AA- |
| Private US Insurance Securitization | 386 | AA- |
| SLM Student Loan Trust 2007-A | 215 | AA |
| Private US Insurance Securitization | 129 | AA |
| Private Middle Market CLO | 129 | AAA |
| Option One 2007-FXD2 | 118 | CCC |
| CWABS 2007-4 | 104 | A+ |
| Private Balloon Note Guarantee | 100 | A |
| Option One Mortgage Loan Trust 2007-HL1 | 99 | CCC |
| Argent Securities Inc. 2005-W4 | 93 | CCC |
| SLM Student Loan Trust 2006-C | 73 | AA |
| ALESCO Preferred Funding XIII, Ltd. | 65 | AAA |
| Nomura Asset Accept. Corp. 2007-1 | 65 | CCC |
| Private Other Structured Finance Transaction | 64 | A- |
| CAPCO - Excess SIPC Excess of Loss Reinsurance | 63 | BBB |
| Private Balloon Note Guarantee | 59 | BBB |
| New Century 2005-A | 57 | CCC |
| CWALT Alternative Loan Trust 2007-HY9 | 56 | A |
| Alesco Preferred Funding XVI, Ltd. | 52 | A |
| Private Subscription Finance Transaction | 52 | A |
| Private Other Structured Finance Transaction | 52 | A- |
| **Total top 25 U.S. structured finance exposures** | $**5336** |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Transactions rated below B- are categorized as CCC.

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

------

**Assured Guaranty Ltd.**

Largest Exposures by Sector (3 of 3)

As of December 31, 2022

(dollars in millions)

**50 Largest Non-U.S. Exposures by Revenue Source** 

---

| | | | |
|:---|:---|:---|:---|
| **Credit Name:** | **Country** | **Net Par Outstanding** | **Internal Rating** |
| Southern Water Services Limited | United Kingdom | $2199 | BBB |
| Thames Water Utilities Finance Plc | United Kingdom | 1811 | BBB |
| Southern Gas Networks PLC | United Kingdom | 1806 | BBB |
| Dwr Cymru Financing Limited | United Kingdom | 1635 | A- |
| Quebec Province | Canada | 1498 | AA- |
| National Grid Gas PLC | United Kingdom | 1390 | BBB+ |
| Anglian Water Services Financing PLC | United Kingdom | 1215 | A- |
| Channel Link Enterprises Finance PLC | France, United Kingdom | 1159 | BBB |
| Yorkshire Water Services Finance Plc | United Kingdom | 1072 | BBB |
| British Broadcasting Corporation (BBC) | United Kingdom | 1047 | A+ |
| Capital Hospitals (Issuer) PLC | United Kingdom | 894 | BBB- |
| Verbund, Lease and Sublease of Hydro-Electric Equipment | Austria | 869 | AAA |
| Aspire Defence Finance plc | United Kingdom | 724 | BBB+ |
| Verdun Participations 2 S.A.S. | France | 680 | BBB- |
| National Grid Company plc | United Kingdom | 626 | BBB+ |
| Envestra Limited | Australia | 617 | A- |
| Severn Trent Water Utilities Finance Plc | United Kingdom | 580 | BBB+ |
| Coventry & Rugby Hospital Company (Walsgrave Hospital) Plc | United Kingdom | 522 | BB |
| Wessex Water Services Finance plc | United Kingdom | 500 | BBB+ |
| Campania Region - Healthcare Receivable | Italy | 492 | BBB- |
| United Utilities Water PLC | United Kingdom | 491 | BBB+ |
| Sydney Airport Finance Company | Australia | 474 | BBB+ |
| NewHospitals (St Helens & Knowsley) Finance PLC | United Kingdom | 455 | BBB+ |
| Derby Healthcare PLC | United Kingdom | 453 | BBB |
| South East Water | United Kingdom | 452 | BBB |
| North Staffordshire PFI, 32-year EIB Index-Linked Facility | United Kingdom | 447 | BBB- |
| Central Nottinghamshire Hospitals PLC | United Kingdom | 445 | BBB- |
| The Hospital Company (QAH Portsmouth) Limited | United Kingdom | 413 | BBB |
| Heathrow Funding Limited | United Kingdom | 367 | BBB |
| University of Essex, United Kingdom | United Kingdom | 362 | BBB+ |
| International Infrastructure Pool | United Kingdom | 360 | AAA |
| International Infrastructure Pool | United Kingdom | 360 | AAA |
| International Infrastructure Pool | United Kingdom | 360 | AAA |
| Comision Federal De Electricidad (CFE) El Cajon Project | Mexico | 350 | BBB- |
| Japan Expressway Holding and Debt Repayment Agency | Japan | 336 | A+ |
| South Lanarkshire Schools | United Kingdom | 332 | BBB |
| Q Energy - Phase II - Pride Investments, S.A. | Spain | 309 | BBB |
| Hypersol Solar Inversiones, S.A.U. | Spain | 303 | BBB |
| Private International Sub-Sovereign Transaction | United Kingdom | 300 | A |
| Catalyst Healthcare (Romford) Financing PLC | United Kingdom | 293 | BBB |
| Northumbrian Water PLC | United Kingdom | 291 | BBB+ |
| Western Power Distribution (South West) PLC | United Kingdom | 288 | BBB+ |
| Feria Muestrario Internacional de Valencia | Spain | 286 | BBB- |
| University of Sussex - East Slope Residencies PLC | United Kingdom | 285 | BBB+ |
| Q Energy - Phase III - FSL Issuer, S.A.U. | Spain | 279 | BBB |
| Bakethin Finance Plc | United Kingdom | 279 | A- |
| Private International Sub-Sovereign Transaction | United Kingdom | 277 | A+ |
| Western Power Distribution (South Wales) PLC | United Kingdom | 272 | BBB+ |
| Octagon Healthcare Funding PLC | United Kingdom | 270 | BBB |
| Artesian Finance Plc (Bristol) | United Kingdom | 269 | BBB+ |
| &nbsp;&nbsp; **Total top 50 non-U.S. exposures** |  | $**31794** |  |

---

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

------

**Asset Management Segment**

------

**Assured Guaranty Ltd.**

Asset Management Segment Results (1 of 3)

(dollars in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Segment revenues** |  |  |  |  |
| Management fees: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;CLOs | $12 | $12 | $48 | $48 |
| &nbsp;&nbsp;&nbsp;Opportunity funds and liquid strategies | 6 | 7 | 35 | 20 |
| &nbsp;&nbsp;&nbsp;Wind-down funds | 1 | 2 | 2 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total management fees | 19 | 21 | 85 | 76 |
| Performance fees | 1 |  | 21 | 1 |
| Foreign exchange gains (losses) on remeasurement and other income (loss) | 4 | 2 | 6 | 6 |
| &nbsp;&nbsp;**Total segment revenues** | 24 | 23 | 112 | 83 |
| **Segment expenses** |  |  |  |  |
| Employee compensation and benefit expenses | 18 | 14 | 80 | 67 |
| Interest expense | 1 | 1 | 1 | 1 |
| Other operating expenses | 9 | 11 | 38 | 40 |
| &nbsp;&nbsp;**Total segment expenses** | 28 | 26 | 119 | 108 |
| &nbsp;&nbsp;**Segment adjusted operating income (loss) before income taxes** | (4) | (3) | (7) | (25) |
| Less: Provision (benefit) for income taxes | (1) |  | (1) | (6) |
| &nbsp;&nbsp;**Segment adjusted operating income (loss)** | $(3) | $(3) | $(6) | $(19) |

---

------

**Assured Guaranty Ltd.**

Asset Management Segment Results (2 of 3)

(dollars in millions)

**Rollforward of Assets Under Management for the Three Months Ended December 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **CLOs** | **Opportunity Funds** | **Liquid Strategies** | **Wind-Down Funds** | **Total** |
| **AUM, September 30, 2022** | $**14951** | $**2018** | $**367** | $**208** | $**17544** |
| Inflows-third party |  | 23 |  |  | 23 |
| Inflows-intercompany |  |  |  |  |  |
| Outflows: |  |  |  |  |  |
| &nbsp;&nbsp;Redemptions |  |  |  |  |  |
| &nbsp;&nbsp;Distributions | (14) | (100) | (127) | (10) | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total outflows | (14) | (100) | (127) | (10) | (251) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | (14) | (77) | (127) | (10) | (228) |
| Change in value | 213 | (57) | 8 | (16) | 148 |
| **AUM, December 31, 2022** | $**15150** | $**1884** | $**248** | $**182** | $**17464** |

---

**Rollforward of Assets Under Management for the Year Ended December 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **CLOs** | **Opportunity Funds** | **Liquid Strategies** | **Wind-Down Funds** | **Total** |
| **AUM, December 31, 2021** | $**14699** | $**1824** | $**389** | $**582** | $**17494** |
| Inflows-third party | 1049 | 315 | 21 |  | 1385 |
| Inflows-intercompany | 165 |  | 105 |  | 270 |
| Outflows: |  |  |  |  |  |
| &nbsp;&nbsp;Redemptions |  |  |  |  |  |
| &nbsp;&nbsp;Distributions | (525) | (290) | (252) | (399) | (1466) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total outflows | (525) | (290) | (252) | (399) | (1466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net flows | 689 | 25 | (126) | (399) | 189 |
| Change in value | (238) | 35 | (15) | (1) | (219) |
| **AUM, December 31, 2022** | $**15150** | $**1884** | $**248** | $**182** | $**17464** |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Liquid strategies inflows and outflows relate to the transfer of assets from an existing municipal bond fund to a new municipal relative value fund.

------

**Assured Guaranty Ltd.**

Asset Management Segment Results (3 of 3)

(dollars in millions)

**Assets Under Management**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **CLOs** | **Opportunity Funds** | **Liquid Strategies** | **Wind-Down Funds** | **Total** |
| **As of December 31, 2022:** | | | | | |
| Funded AUM <sup>(1)</sup> | $15047 | $1217 | $248 | $160 | $16672 |
| Unfunded AUM <sup>(1)</sup> | 103 | 667 |  | 22 | 792 |
| Fee earning AUM <sup>(2)</sup> | $14820 | $1640 | $248 | $87 | $16795 |
| Non-fee earning AUM <sup>(2)</sup> | 330 | 244 |  | 95 | 669 |
| Intercompany AUM |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Funded AUM | $582 | $192 | $248 | $— | $1022 |
| &nbsp;&nbsp;&nbsp;Unfunded AUM | 103 | 115 |  |  | 218 |
| **As of September 30, 2022:** |  |  |  |  |  |
| Funded AUM | $14857 | $1304 | $367 | $186 | $16714 |
| Unfunded AUM | 94 | 714 |  | 22 | 830 |
| Fee earning AUM | $14575 | $1766 | $367 | $110 | $16818 |
| Non-fee earning AUM | 376 | 252 |  | 98 | 726 |
| Intercompany AUM |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Funded AUM | $574 | $192 | $346 | $— | $1112 |
| &nbsp;&nbsp;&nbsp;Unfunded AUM | 93 | 125 |  |  | 218 |
| **As of December 31, 2021:** |  |  |  |  |  |
| Funded AUM | $14575 | $1297 | $389 | $560 | $16821 |
| Unfunded AUM | 124 | 527 |  | 22 | 673 |
| Fee earning AUM | $14252 | $1527 | $389 | $408 | $16576 |
| Non-fee earning AUM | 447 | 297 |  | 174 | 918 |
| Intercompany AUM |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Funded AUM | $541 | $217 | $368 | $— | $1126 |
| &nbsp;&nbsp;&nbsp;Unfunded AUM | 123 | 121 |  |  | 244 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Funded AUM refers to assets that have been deployed or invested into the funds or CLOs. Unfunded AUM refers to unfunded capital commitments from closed-end funds and CLO warehouse fund.

2)&nbsp;&nbsp;&nbsp;&nbsp;Fee earning AUM refers to assets where AssuredIM collects fees or has elected not to waive or rebate fees to investors. Non-fee earning AUM refers to assets where AssuredIM does not collect fees or has elected to waive or rebate fees to investors.

------

**Corporate Division**

------

**Assured Guaranty Ltd.**

Corporate Division Results

(dollars in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
| | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
| | **2022** | **2021** | **2022** | **2021** |
| **Total revenues** | $1 | $1 | $4 | $2 |
| **Expenses** |  |  |  |  |
| Interest expense | 23 | 22 | 89 | 96 |
| Loss on extinguishment of debt |  |  |  | 175 |
| Employee compensation and benefit expenses | 10 | 6 | 30 | 21 |
| Other operating expenses | 6 | 5 | 24 | 20 |
| &nbsp;&nbsp;**Total expenses** | 39 | 33 | 143 | 312 |
| Equity in earnings (losses) of investees |  | (1) |  |  |
| &nbsp;&nbsp;**Adjusted operating income (loss) before income taxes** | (38) | (33) | (139) | (310) |
| Less: Provision (benefit) for income taxes | (2) | (2) | (5) | (47) |
| &nbsp;&nbsp;**Adjusted operating income (loss)** | $(36) | $(31) | $(134) | $(263) |

---

------

**Other**

------

**Assured Guaranty Ltd.**

Other Results (1 of 2)

(dollars in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** | **Three Months Ended December 31, 2022** |
| | **FG VIEs** | **CIVs** | **Intersegment Eliminations and Reclasses** | **Total Other** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Revenues** | | | | |
| Net earned premiums | $— | $— | $— | $— |
| Net investment income | (1) |  | (2) | (3) |
| Asset management fees |  | (6) | 8 | 2 |
| Fair value gains (losses) on FG VIEs | (5) |  |  | (5) |
| Fair value gains (losses) on CIVs |  | (8) |  | (8) |
| Foreign exchange gains (losses) on remeasurement |  | (3) |  | (3) |
| Other income (loss) |  | (3) |  | (3) |
| &nbsp;&nbsp;**Total revenues** | (6) | (20) | 6 | (20) |
| **Expenses** |  |  |  |  |
| Loss expense (benefit) |  |  |  |  |
| Interest expense |  |  | (3) | (3) |
| Other operating expenses |  | (1) | 9 | 8 |
| &nbsp;&nbsp;**Total expenses** |  | (1) | 6 | 5 |
| Equity in earnings (losses) of investees |  | (3) |  | (3) |
| &nbsp;&nbsp;**Adjusted operating income (loss) before income taxes** | (6) | (22) |  | (28) |
| Less: Provision (benefit) for income taxes | (1) | (2) |  | (3) |
| Less: Noncontrolling interests |  | (12) |  | (12) |
| &nbsp;&nbsp;**Adjusted operating income (loss)** | $(5) | $(8) | $— | $(13) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** | **Three Months Ended December 31, 2021** |
| | **FG VIEs** | **CIVs** | **Intersegment Eliminations and Reclasses** | **Total Other** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Revenues** | | | | |
| Net earned premiums | $(1) | $— | $— | $(1) |
| Net investment income | (1) |  | (2) | (3) |
| Asset management fees |  | (4) | 6 | 2 |
| Fair value gains (losses) on FG VIEs | 5 |  |  | 5 |
| Fair value gains (losses) on CIVs |  | 74 |  | 74 |
| Other income (loss) | (1) |  |  | (1) |
| &nbsp;&nbsp;**Total revenues** | 2 | 70 | 4 | 76 |
| **Expenses** |  |  |  |  |
| Loss expense (benefit) | 2 |  |  | 2 |
| Interest expense |  |  | (3) | (3) |
| Other operating expenses |  | (1) | 7 | 6 |
| &nbsp;&nbsp;**Total expenses** | 2 | (1) | 4 | 5 |
| Equity in earnings (losses) of investees |  | (15) |  | (15) |
| &nbsp;&nbsp;**Adjusted operating income (loss) before income taxes** |  | 56 |  | 56 |
| Less: Provision (benefit) for income taxes |  | 7 |  | 7 |
| Less: Noncontrolling interests |  | 19 |  | 19 |
| &nbsp;&nbsp;**Adjusted operating income (loss)** | $— | $30 | $— | $30 |

---

------

**Assured Guaranty Ltd.**

Other Results (2 of 2)

(dollars in millions)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| | **FG VIEs** | **CIVs** | **Intersegment Eliminations and Reclasses** | **Total Other** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Revenues** | | | | |
| Net earned premiums | $(3) | $— | $— | $(3) |
| Net investment income | (4) |  | (9) | (13) |
| Asset management fees |  | (35) | 22 | (13) |
| Fair value gains (losses) on FG VIEs | 22 |  |  | 22 |
| Fair value gains (losses) on CIVs |  | 17 |  | 17 |
| Foreign exchange gains (losses) on remeasurement |  | 4 |  | 4 |
| Other income (loss) | (2) | 2 |  |  |
| &nbsp;&nbsp;**Total revenues** | 13 | (12) | 13 | 14 |
| **Expenses** |  |  |  |  |
| Loss expense (benefit) | 8 |  |  | 8 |
| Interest expense |  |  | (10) | (10) |
| Other operating expenses |  | (2) | 23 | 21 |
| &nbsp;&nbsp;**Total expenses** | 8 | (2) | 13 | 19 |
| Equity in earnings (losses) of investees |  | 12 |  | 12 |
| &nbsp;&nbsp;**Adjusted operating income (loss) before income taxes** | 5 | 2 |  | 7 |
| Less: Provision (benefit) for income taxes | 1 | (1) |  |  |
| Less: Noncontrolling interests |  | 13 |  | 13 |
| &nbsp;&nbsp;**Adjusted operating income (loss)** | $4 | $(10) | $— | $(6) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| | **FG VIEs** | **CIVs** | **Intersegment Eliminations and Reclasses** | **Total Other** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Revenues** | | | | |
| Net earned premiums | $(4) | $— | $— | $(4) |
| Net investment income | (4) |  | (9) | (13) |
| Asset management fees |  | (10) | 21 | 11 |
| Fair value gains (losses) on FG VIEs | 23 |  |  | 23 |
| Fair value gains (losses) on CIVs |  | 127 |  | 127 |
| Other income (loss) | (2) |  |  | (2) |
| &nbsp;&nbsp;**Total revenues** | 13 | 117 | 12 | 142 |
| **Expenses** |  |  |  |  |
| Loss expense (benefit) | 15 |  |  | 15 |
| Interest expense |  |  | (10) | (10) |
| Other operating expenses |  | (1) | 22 | 21 |
| &nbsp;&nbsp;**Total expenses** | 15 | (1) | 12 | 26 |
| Equity in earnings (losses) of investees |  | (50) |  | (50) |
| &nbsp;&nbsp;**Adjusted operating income (loss) before income taxes** | (2) | 68 |  | 66 |
| Less: Provision (benefit) for income taxes | (1) | 7 |  | 6 |
| Less: Noncontrolling interests |  | 30 |  | 30 |
| &nbsp;&nbsp;**Adjusted operating income (loss)** | $(1) | $31 | $— | $30 |

---

------

**Summary**

------

**Assured Guaranty Ltd.**

Summary of Financial and Statistical Data

(dollars in millions, except per share amounts)

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2022** | **2021** | **2021** | **2020** | **2020** | **2019** | **2019** | **2018** | **2018** |
| **GAAP Summary Statements of Operations Data** |  |  |  |  |  |  |  |  |  |  |
| Net earned premiums | $494 |  | $414 |  | $485 |  | $476 |  | $548 |  |
| Net investment income | 269 |  | 269 |  | 297 |  | 378 |  | 395 |  |
| Total expenses | 536 |  | 465 |  | 729 |  | 503 |  | 422 |  |
| Income (loss) before income taxes | 187 |  | 383 |  | 386 |  | 460 |  | 580 |  |
| Net income (loss) attributable to AGL | 124 |  | 389 |  | 362 |  | 402 |  | 521 |  |
| Net income (loss) attributable to AGL per diluted share | 1.92 |  | 5.23 |  | 4.19 |  | 4.00 |  | 4.68 |  |
| **GAAP Summary Balance Sheet Data** |  |  |  |  |  |  |  |  |  |  |
| Total investments and cash | $8472 |  | $9728 |  | $10000 |  | $10409 |  | $10977 |  |
| Total assets | 16843 |  | 18208 |  | 15334 |  | 14326 |  | 13603 |  |
| Unearned premium reserve | 3620 |  | 3716 |  | 3735 |  | 3736 |  | 3512 |  |
| Loss and LAE reserve | 296 |  | 869 |  | 1088 |  | 1050 |  | 1177 |  |
| Long-term debt | 1675 |  | 1673 |  | 1224 |  | 1235 |  | 1233 |  |
| Shareholders' equity attributable to AGL | 5064 |  | 6292 |  | 6643 |  | 6639 |  | 6555 |  |
| Shareholders' equity attributable to AGL per share | 85.80 |  | 93.19 |  | 85.66 |  | 71.18 |  | 63.23 |  |
| **Other Financial Information (GAAP Basis)** |  |  |  |  |  |  |  |  |  |  |
| Financial guaranty: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net debt service outstanding (end of period) | $369951 |  | $367360 |  | $366233 |  | $374130 |  | $371586 |  |
| &nbsp;&nbsp;&nbsp;Gross debt service outstanding (end of period) | 370172 |  | 367770 |  | 366692 |  | 375776 |  | 375080 |  |
| &nbsp;&nbsp;&nbsp;Net par outstanding (end of period) | 233258 |  | 236392 |  | 234153 |  | 236807 |  | 241802 |  |
| &nbsp;&nbsp;&nbsp;Gross par outstanding (end of period) | 233438 |  | 236765 |  | 234571 |  | 238156 |  | 244191 |  |
| **Other Financial Information (Statutory Basis)** <sup>(1)</sup> |  |  |  |  |  |  |  |  |  |  |
| Financial guaranty: |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net debt service outstanding (end of period) | $366883 |  | $362013 |  | $360392 |  | $367630 |  | $359499 |  |
| &nbsp;&nbsp;&nbsp;Gross debt service outstanding (end of period) | 367103 |  | 362423 |  | 360852 |  | 369251 |  | 362974 |  |
| &nbsp;&nbsp;&nbsp;Net par outstanding (end of period) | 230294 |  | 231742 |  | 229008 |  | 230984 |  | 230664 |  |
| &nbsp;&nbsp;&nbsp;Gross par outstanding (end of period) | 230474 |  | 232115 |  | 229426 |  | 232333 |  | 233036 |  |
| **Claims-paying resources** <sup>(2)</sup> |  |  |  |  |  |  |  |  |  |  |
| Policyholders' surplus | $5155 |  | $5572 |  | $5077 |  | $5056 |  | $5148 |  |
| Contingency reserve | 1202 |  | 1225 |  | 1557 |  | 1607 |  | 1663 |  |
| &nbsp;&nbsp;&nbsp;**Qualified statutory capital** | **6357** |  | **6797** |  | **6634** |  | **6663** |  | **6811** |  |
| Unearned premium reserve and net deferred ceding commission income | 2941 |  | 2972 |  | 2983 |  | 2961 |  | 2950 |  |
| Loss and LAE reserves | 165 |  | 167 |  | 202 |  | 529 |  | 1023 |  |
| &nbsp;&nbsp;&nbsp;**Total policyholders' surplus and reserves** | **9463** |  | **9936** |  | **9819** |  | **10153** |  | **10784** |  |
| Present value of installment premium | 955 |  | 883 |  | 858 |  | 804 |  | 577 |  |
| CCS and standby line of credit | 400 |  | 400 |  | 400 |  | 400 |  | 400 |  |
| Excess of loss reinsurance facility |  |  |  |  |  |  |  |  | 180 |  |
| &nbsp;&nbsp;&nbsp;**Total claims-paying resources** | $**10818** |  | $**11219** |  | $**11077** |  | $**11357** |  | $**11941** |  |
| Ratios: |  |  |  |  |  |  |  |  |  |  |
| Net exposure to qualified statutory capital | 36 | :1 | 34 | :1 | 35 | :1 | 35 | :1 | 34 | :1 |
| Capital ratio | 58 | :1 | 53 | :1 | 54 | :1 | 55 | :1 | 53 | :1 |
| Financial resources ratio | 34 | :1 | 32 | :1 | 33 | :1 | 32 | :1 | 30 | :1 |
| Adjusted statutory net exposure to claims-paying resources | 21 | :1 | 21 | :1 | 21 | :1 | 20 | :1 | 19 | :1 |
| **Par and Debt Service Written (FG and Specialty)** |  |  |  |  |  |  |  |  |  |  |
| Gross debt service written: |  |  |  |  |  |  |  |  |  |  |
| Public finance - U.S. | $36954 |  | $35572 |  | $33596 |  | $28054 |  | $31989 |  |
| Public finance - non-U.S. | 756 |  | 1890 |  | 1860 |  | 17907 |  | 7166 |  |
| Structured finance - U.S. | 1120 |  | 1319 |  | 508 |  | 1704 |  | 1191 |  |
| Structured finance - non-U.S. | 551 |  | 431 |  | 254 |  | 88 |  | 369 |  |
| &nbsp;&nbsp;&nbsp;Total gross debt service written | $39381 |  | $39212 |  | $36218 |  | $47753 |  | $40715 |  |
| Net debt service written | $39381 |  | $39212 |  | $35965 |  | $47731 |  | $40630 |  |
| Net par written | 22047 |  | 26656 |  | 23012 |  | 24331 |  | 24538 |  |
| Gross par written | 22047 |  | 26656 |  | 23265 |  | 24353 |  | 24624 |  |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Statutory amounts prepared on a consolidated basis. The National Association of Insurance Commissioners Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.

2)&nbsp;&nbsp;&nbsp;&nbsp;See page 19 for additional detail on claims-paying resources.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.

------

**Assured Guaranty Ltd.**

Summary of GAAP to Non-GAAP Reconciliations<sup>(1)</sup> (1 of 2)

(dollars in millions, except per share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Total GWP** | $**360** | $**377** | $**454** | $**677** | $**612** |
| &nbsp;&nbsp;&nbsp;Less: Installment GWP and other GAAP adjustments <sup>(2)</sup> | 145 | 158 | 191 | 469 | 119 |
| Upfront GWP | 215 | 219 | 263 | 208 | 493 |
| &nbsp;&nbsp;&nbsp;Plus: Installment premiums and other<sup>(3)</sup> | 160 | 142 | 127 | 361 | 204 |
| Total PVP | $375 | $361 | $390 | $569 | $697 |
| PVP: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Public finance - U.S. | $257 | $235 | $292 | $201 | $402 |
| &nbsp;&nbsp;&nbsp;Public finance - non-U.S. | 68 | 79 | 82 | 308 | 116 |
| &nbsp;&nbsp;&nbsp;Structured finance - U.S. | 43 | 42 | 14 | 53 | 167 |
| &nbsp;&nbsp;&nbsp;Structured finance - non-U.S. | 7 | 5 | 2 | 7 | 12 |
| Total PVP | $375 | $361 | $390 | $569 | $697 |
| **Adjusted operating income reconciliation:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL** | $**124** | $**389** | $**362** | $**402** | $**521** |
| &nbsp;&nbsp;&nbsp;Less pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) on investments | (56) | 15 | 18 | 22 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (18) | (64) | 65 | (10) | 101 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 24 | (28) | (1) | (22) | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (110) | (21) | 42 | 22 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | (160) | (98) | 124 | 12 | 51 |
| &nbsp;&nbsp;&nbsp;Less tax effect on pre-tax adjustments | 17 | 17 | (18) | (1) | (12) |
| &nbsp;&nbsp;&nbsp;Adjusted operating income (loss) | $267 | $470 | $256 | $391 | $482 |
| **Adjusted operating income per diluted share reconciliation:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Net income (loss) attributable to AGL per diluted share** | $**1.92** | $**5.23** | $**4.19** | $**4.00** | $**4.68** |
| &nbsp;&nbsp;&nbsp;Less pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Realized gains (losses) on investments | (0.87) | 0.20 | 0.21 | 0.22 | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (0.27) | (0.85) | 0.75 | (0.11) | 0.90 |
| &nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 0.37 | (0.38) | (0.01) | (0.22) | 0.13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves | (1.72) | (0.29) | 0.49 | 0.21 | (0.29) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total pre-tax adjustments | (2.49) | (1.32) | 1.44 | 0.10 | 0.45 |
| &nbsp;&nbsp;&nbsp;Tax effect on pre-tax adjustments | 0.27 | 0.23 | (0.22) | (0.01) | (0.11) |
| &nbsp;&nbsp;&nbsp;Adjusted operating income (loss) per diluted share | $4.14 | $6.32 | $2.97 | $3.91 | $4.34 |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

2)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of new business on installment policies discounted at the prescribed GAAP discount rates, GWP adjustments on existing installment policies due to changes in assumptions and other GAAP adjustments.

3)&nbsp;&nbsp;&nbsp;&nbsp;Includes the present value of future premiums and fees on new business paid in installments discounted at the approximate average pre-tax book yield of fixed-maturity securities purchased during the prior calendar year, other than certain fixed-maturities such as Loss Mitigation Securities. The year 2022 also includes the present value of future premiums and fees associated with a financial guarantee written by the Company that, under GAAP, is accounted for under Accounting Standards Codification (ASC) 460, Guarantees.

------

**Assured Guaranty Ltd.**

Summary of GAAP to Non-GAAP Reconciliations <sup>(1)</sup> (2 of 2)

(dollars in millions, except per share amounts)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** | **As of December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| **Adjusted book value reconciliation:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Shareholders' equity attributable to AGL** | $**5064** | $**6292** | $**6643** | $**6639** | $**6555** |
| &nbsp;&nbsp;&nbsp;&nbsp;Less pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (71) | (54) | 9 | (56) | (45) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 47 | 23 | 52 | 52 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment portfolio | (523) | 404 | 611 | 486 | 247 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less taxes | 68 | (72) | (116) | (89) | (63) |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity | 5543 | 5991 | 6087 | 6246 | 6342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Deferred acquisition costs | 147 | 131 | 119 | 111 | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net present value of estimated net future revenue | 157 | 160 | 182 | 206 | 219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed | 3428 | 3402 | 3355 | 3296 | 3005 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus taxes | (602) | (599) | (597) | (590) | (526) |
| &nbsp;&nbsp;&nbsp;Adjusted book value | $8379 | $8823 | $8908 | $9047 | $8935 |
| Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity (net of tax (provision) benefit of $(4), $(5), $-, $(2) and $(1)) | $17 | $32 | $2 | $7 | $3 |
| &nbsp;&nbsp;&nbsp;Adjusted book value (net of tax (provision) benefit of $(3), $(3), $2, $1 and $4) | $11 | $23 | $(8) | $(4) | $(15) |
| **Adjusted book value per share reconciliation:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Shareholders' equity attributable to AGL per share** | $**85.80** | $**93.19** | $**85.66** | $**71.18** | $**63.23** |
| &nbsp;&nbsp;&nbsp;&nbsp;Less pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-credit impairment-related unrealized fair value gains (losses) on credit derivatives | (1.21) | (0.80) | 0.12 | (0.60) | (0.44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair value gains (losses) on CCS | 0.80 | 0.34 | 0.66 | 0.56 | 0.72 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized gain (loss) on investment portfolio | (8.86) | 5.99 | 7.89 | 5.21 | 2.39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less taxes | 1.15 | (1.07) | (1.50) | (0.95) | (0.61) |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity per share | 93.92 | 88.73 | 78.49 | 66.96 | 61.17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Pre-tax adjustments: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Deferred acquisition costs | 2.48 | 1.95 | 1.54 | 1.19 | 1.01 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net present value of estimated net future revenue | 2.66 | 2.37 | 2.35 | 2.20 | 2.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: Net deferred premium reserve on financial guaranty contracts in excess of expected loss to be expensed | 58.10 | 50.40 | 43.27 | 35.34 | 28.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;Plus taxes | (10.22) | (8.88) | (7.70) | (6.32) | (5.07) |
| &nbsp;&nbsp;&nbsp;Adjusted book value per share | $141.98 | $130.67 | $114.87 | $96.99 | $86.18 |
| Gain (loss) related to FG VIE and CIV consolidation included in: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Adjusted operating shareholders' equity per share | $0.28 | $0.47 | $0.03 | $0.07 | $0.03 |
| &nbsp;&nbsp;&nbsp;Adjusted book value per share | $0.19 | $0.34 | $(0.10) | $(0.05) | $(0.15) |

---

1)&nbsp;&nbsp;&nbsp;&nbsp;See Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

------

**Glossary**

**Financial Guaranty Insurance**

***Net Par Outstanding and Internal Ratings***

*<u>Net Par Outstanding</u>* is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts as a result of loss mitigation strategies, including securities the Company has purchased for loss mitigation purposes that are held in the investment portfolio.

*<u>Internal Rating</u>* utilizes the Company's ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.

*<u>Statutory Net Par and Net Debt Service Outstanding.</u>* Under statutory accounting, net par and net debt service outstanding would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with U.S. government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).

***Performance Indicators***

The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information is obtained:

*<u>60+ Day Delinquencies</u>* are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.

*<u>Average Credit Enhancement</u>* is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty's exposure, expressed as a percentage of the total transaction size, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.

***Sectors***

Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.'s Annual Report on Form 10-K for the year ended December 31, 2022.

*U.S. Public Finance:*

*General Obligation Bonds* are full faith and credit obligations that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy property taxes in an amount sufficient to provide for the full payment of the bonds.

*Tax-Backed Bonds* are obligations that are supported by the issuer from specific and discrete sources of taxation and tax-backed revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or an income tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose.

*Municipal Utility Bonds* are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

*Transportation Bonds* include a wide variety of revenue-supported obligations, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

*Healthcare Bonds* are obligations of healthcare facilities, including community based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

*Higher Education Bonds* are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution's revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue or revenue relating to student accommodation.

------

**Glossary (continued)**

***Sectors (continued)***

*Infrastructure Bonds* include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

*Housing Revenue Bonds* are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

*Investor-Owned Utility Bonds* are obligations primarily issued by investor-owned utilities, and include first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, as well as sale-leaseback obligation bonds supported by such entities.

*Renewable Energy Bonds* are obligations backed by revenue from renewable energy sources.

*Other Public Finance Bonds* include other debt issued, guaranteed or otherwise supported by U.S. national or local governmental authorities, as well as student loans, revenue bonds, and obligations of some not-for-profit organizations.

*Non-U.S. Public Finance:*

*Regulated Utility Obligations* are obligations issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities, supported by the rates and charges paid by the utilities' customers. The majority of the Company's non-U.S. regulated utility business is conducted in the U.K.

*Infrastructure Finance Obligations* are obligations issued by a variety of entities engaged in the financing of non-U.S. infrastructure projects, such as roads, airports, ports, social infrastructure, student accommodations, stadiums, and other physical assets delivering essential services supported either by long-term concession arrangements or a regulatory regime. The majority of the Company's non-U.S. infrastructure business is conducted in the U.K.

*Pooled Infrastructure Obligations* are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations. The Company has not entered into a pooled infrastructure transaction since 2006.

*Sovereign and Sub-Sovereign Obligations* primarily includes obligations of local, municipal, regional or national governmental authorities or agencies outside of the U.S.

*Renewable Energy Bonds* are obligations secured by revenues relating to renewable energy sources, typically solar or wind farms. These transactions often benefit from regulatory support in the form of regulated minimum prices for the electricity produced. The majority of the Company's non-U.S. renewable energy business is conducted in Spain.

*Other Public Finance Obligations* are obligations of, or backed by, local, municipal, regional or national governmental authorities or agencies not generally described in any of the other described categories.

*Structured Finance:*

*Residential Mortgage-Backed Securities (RMBS)* are obligations backed by first and second lien mortgage loans on residential properties. The credit quality of borrowers covers a broad range, including "prime," "subprime" and "Alt-A." A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income. RMBS include home equity lines of credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral. The Company has not provided insurance for RMBS in the primary market since 2008..

*Life Insurance Transactions* are obligations secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

*Pooled Corporate Obligations* are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in "tranches," with subordinated tranches providing credit support to the more senior tranches. The Company's financial guaranty exposures generally are to the more senior tranches of these issues.

*Consumer Receivables Securities* are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables.

------

**Glossary (continued)**

***Sectors (continued)***

*Financial Products Business* is the guaranteed investment contracts (GICs) portion of a line of business previously conducted by Assured Guaranty Municipal Holdings Inc. (AGMH) that the Company did not acquire when it purchased AGMH in 2009 from Dexia SA and that is being run off. That line of business consisted of AGMH's GIC business, its medium term notes business and the equity payment agreements associated with AGMH's leveraged lease business. Although Dexia SA and certain of its affiliates (Dexia) assumed the liabilities related to such businesses when the Company purchased AGMH, AGM policies related to such businesses remained outstanding. Assured Guaranty is indemnified by Dexia SA and certain of its affiliates against loss from the former financial products business.

*Other Structured Finance Obligations* are obligations backed by assets not generally described in any of the other described categories.

**Specialty Business**

The Company also provides specialty insurance, reinsurance and guarantees in transactions with similar risk profiles to its structured finance exposures written in financial guaranty form. The Company provides such specialty insurance and reinsurance, for example, for life insurance transactions and aircraft residual value insurance (RVI) transactions.

**AUM Definitions**

The Company uses AUM as a metric to measure progress in its Asset Management segment. Management fee revenue is based on a variety of factors and is not perfectly correlated with AUM. However, the Company believes that AUM is a useful metric for assessing the relative size and scope of the Company's asset management business. The Company uses measures of its AUM in its decision-making process and uses a measure of change in AUM in its calculation of certain components of management compensation. Investors also use AUM to evaluate companies that participate in the asset management business. AUM refers to the assets managed, advised or serviced by the Asset Management segment and equals the sum of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** the amount of aggregate collateral balance and principal cash of AssuredIM's CLOs, including CLO Equity that may be held by AssuredIM Funds. This also includes CLO assets managed by BlueMountain Fuji Management, LLC (BM Fuji), which was sold to a third party in the second quarter of 2021. AssuredIM is not the investment manager of BM Fuji-advised CLOs, but following the sale, AssuredIM sub-advises and continues to provide personnel and other services to BM Fuji associated with the management of BM Fuji-advised CLOs pursuant to a sub-advisory agreement and a personnel and services agreement, consistent with past practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** the net asset value of all funds and accounts other than CLOs, plus any unfunded commitments. Changes in NAV attributable to movements in fund value of certain private equity funds are reported on a quarter lag.

The Company's calculation of AUM may differ from the calculation employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. The calculation also differs from the manner in which AssuredIM affiliates registered with the SEC report "Regulatory Assets Under Management" on Form ADV and Form PF in various ways.

&nbsp;&nbsp;&nbsp;&nbsp;The Company also uses several other measurements of AUM to understand and measure its AUM in more detail and for various purposes, including its relative position in the market and its income and income potential:

*"Third-party AUM"* refers to the assets AssuredIM manages or advises on behalf of third-party investors. This includes current and former employee investments in AssuredIM Funds. For CLOs, this also includes CLO Equity that may be held by AssuredIM Funds.

*"Intercompany AUM"* refers to the assets AssuredIM manages or advises on behalf of the Company. This includes investments from affiliates of Assured Guaranty along with general partners' investments of AssuredIM (or its affiliates) into the AssuredIM Funds.

*"Funded AUM"* refers to assets that have been deployed or invested into the funds or CLOs.

*"Unfunded AUM"* refers to unfunded capital commitments from closed-end funds and CLO warehouse funds.

*"Fee earning AUM"* refers to assets where AssuredIM collects fees and has elected not to waive or rebate fees to investors.

*"Non-fee earning AUM"* refers to assets where AssuredIM does not collect fees or has elected to waive or rebate fees to investors. AssuredIM reserves the right to waive some or all fees for certain investors, including investors affiliated with AssuredIM and/or the Company. Further, to the extent that the Company's wind-down and/or opportunity funds are invested in AssuredIM managed CLOs, AssuredIM may rebate any management fees and/or performance fees earned from the CLOs to the extent such fees are attributable to the wind-down and opportunity funds' holdings of CLOs also managed by AssuredIM.

------

**Non-GAAP Financial Measures**

The Company discloses both: (a) financial measures determined in accordance with GAAP; and (b) financial measures not determined in accordance with GAAP (non-GAAP financial measures). Financial measures identified as non-GAAP should not be considered substitutes for GAAP financial measures. 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.

The Company believes its presentation of non-GAAP financial measures provides information that is necessary for analysts to calculate their estimates of Assured Guaranty's financial results in their research reports on Assured Guaranty and for investors, analysts and the financial news media to evaluate Assured Guaranty's financial results.

GAAP requires the Company to consolidate entities where it is deemed to be the primary beneficiary which include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FG VIEs, which the Company does not own and where its exposure is limited to its obligation under the financial guaranty insurance contract, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• CIVs in which certain subsidiaries invest and which are managed by AssuredIM.

The Company discloses the effect of FG VIE and CIV consolidation that is embedded in each non-GAAP financial measure, as applicable. The Company believes this information may also be useful to analysts and investors evaluating Assured Guaranty's financial results. In the case of both the consolidated FG VIEs and the CIVs, the economic effect on the Company of each of the consolidated FG VIEs and CIVs is reflected primarily in the results of the Insurance segment.

Management of the Company and AGL's Board of Directors use non-GAAP financial measures further adjusted to remove the effect of FG VIE and CIV consolidation (which the Company refers to as its core financial measures), as well as GAAP financial measures and other factors, to evaluate the Company's results of operations, financial condition and progress towards long-term goals. The Company uses core financial measures in its decision-making process for and in its calculation of certain components of management compensation. The financial measures that the Company uses to help determine compensation are: (1) adjusted operating income, further adjusted to remove the effect of FG VIE and CIV consolidation; (2) adjusted operating shareholders' equity, further adjusted to remove the effect of FG VIE and CIV consolidation; (3) adjusted book value per share, further adjusted to remove the effect of FG VIE and CIV consolidation; (4) PVP, and (5) gross third-party assets raised.

Management believes that many investors, analysts and financial news reporters use adjusted operating shareholders' equity and/or adjusted book value, 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. Management also believes that many of the Company's fixed income investors also use adjusted operating shareholders' equity, further adjusted to remove the effect of FG VIE and CIV consolidation, to evaluate the Company's capital adequacy.

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.

The following paragraphs define each non-GAAP financial measure disclosed by the Company and describe why it is useful. To the extent there is a directly comparable GAAP financial measure, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure is presented within this financial supplement.

**Adjusted Operating Income:** Management believes that adjusted operating income is a useful measure because it clarifies the understanding of the operating results of the Company. Adjusted operating income is defined as net income (loss) attributable to AGL, as reported under GAAP, adjusted for the following:

1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of realized gains (losses) on the Company's investments, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company's discretion and influenced by market opportunities, as well as the Company's tax and capital profile.

2)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives that are recognized in net income, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, the Company's credit spreads and other market factors and are not expected to result in an economic gain or loss.

3)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of fair value gains (losses) on the Company's CCS that are recognized in net income. Such amounts are affected by changes in market interest rates, the Company's credit spreads, price indications on the Company's publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

------

**Non-GAAP Financial Measures (continued)**

4)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves that are recognized in net income. Long-dated receivables and loss and LAE reserves represent the present value of future contractual or expected cash flows. Therefore, the current period's foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

5)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

**Adjusted Operating Shareholders' Equity and Adjusted Book Value:** Management believes that adjusted operating shareholders' equity is a useful measure because it excludes the fair value adjustments on investments, credit derivatives and CCS that are not expected to result in economic gain or loss.

Adjusted operating shareholders' equity is defined as shareholders' equity attributable to AGL, as reported under GAAP, adjusted for the following:

1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of non-credit impairment-related unrealized fair value gains (losses) on credit derivatives, which is the amount of unrealized fair value gains (losses) in excess of the present value of the expected estimated economic credit losses, and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

2)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of fair value gains (losses) on the Company's CCS. Such amounts are affected by changes in market interest rates, the Company's credit spreads, price indications on the Company's publicly traded debt and other market factors and are not expected to result in an economic gain or loss.

3)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of unrealized gains (losses) on the Company's investments that are recorded as a component of accumulated other comprehensive income (AOCI). 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 recognize an economic gain or loss.

4) &nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

Management uses adjusted book value, further adjusted for FG VIE and CIV consolidation, to measure the intrinsic value of the Company, excluding franchise value. Adjusted book value per share, further adjusted for FG VIE and CIV consolidation (core adjusted book value), is one of the key financial measures used in determining the amount of certain long-term compensation elements to management and employees and used by rating agencies and investors. Management believes that adjusted book value is a useful measure because it enables an evaluation of the Company's in-force premiums and revenues net of expected losses. Adjusted book value is adjusted operating shareholders' equity, as defined above, further adjusted for the following:

1)&nbsp;&nbsp;&nbsp;&nbsp;Elimination of deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2)&nbsp;&nbsp;&nbsp;&nbsp;Addition of the net present value of estimated net future revenue. See below.

3)&nbsp;&nbsp;&nbsp;&nbsp;Addition of the deferred premium revenue on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the present value of the expected future net earned premiums, net of the present value of expected losses to be expensed, which are not reflected in GAAP equity.

4) &nbsp;&nbsp;&nbsp;&nbsp;Elimination of the tax effects related to the above adjustments, which are determined by applying the statutory tax rate in each of the jurisdictions that generate these adjustments.

The unearned premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors.

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**Non-GAAP Financial Measures (continued)**

**Adjusted Operating Return on Equity (Adjusted Operating ROE):** Adjusted Operating ROE represents adjusted operating income for a specified period divided by the average of adjusted operating shareholders' equity at the beginning and the end of that period. Management believes that adjusted operating ROE is a useful measure to evaluate the Company's return on invested capital. Many investors, analysts and members of the financial news media use adjusted operating ROE, adjusted for VIE consolidation, to evaluate AGL's share price and as the basis of their decision to recommend, buy or sell the AGL common shares. Quarterly and year-to-date adjusted operating ROE are calculated on an annualized basis. Adjusted operating ROE, adjusted for VIE consolidation, is one of the key management financial measures used in determining the amount of certain long-term compensation to management and employees and used by rating agencies and investors.

**Net Present Value of Estimated Net Future Revenue:** 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. The discount rate is recalculated annually and updated as necessary. Net present value of estimated future revenue for an obligation may change from period to period due to a change in the discount rate or due to a change in estimated net future revenue for the obligation, which may change due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. There is no corresponding GAAP financial measure.

**PVP or Present Value of New Business Production:** Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production in the Insurance 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 gross written premiums 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.

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. Under GAAP, financial guaranty installment premiums are discounted at a risk-free rate. 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, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.

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![image2.jpg](image2.jpg)

**Assured Guaranty Ltd.&nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

30 Woodbourne Avenue

Hamilton HM 08

Bermuda

(441) 279-5705

www.assuredguaranty.com

**Contacts:**

**Equity and Fixed Income Investors:**

*Robert Tucker*

Senior Managing Director, Investor Relations and Corporate Communications

(212) 339-0861

rtucker@agltd.com

*Michael Walker*

Managing Director, Fixed Income Investor Relations

(212) 261-5575

mwalker@agltd.com

*Andre Thomas*

Managing Director, Equity Investor Relations

(212) 339-3551

athomas@agltd.com

**Media:**

*Ashweeta Durani*

Vice President, Media Relations

(212) 408-6042

adurani@agltd.com

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