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Subsidiary Information
6 Months Ended
Jun. 30, 2011
Subsidiary Information  
Subsidiary Information

15. Subsidiary Information

        The following tables present the condensed consolidating financial information for AGMH and AGUS, which have issued publicly traded debt securities that are fully and unconditionally guaranteed by AGL. The information for AGMH and AGUS presents its subsidiaries on the equity method of accounting. In addition to the Second Quarter and Six Months June 2011 and 2010 data, the December 31, 2010, 2009 and 2008 data is also included here in a format consistent with the June data.


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2011
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Assets

                                     

Total investment portfolio and cash

  $ 16.0   $ 22.2   $ 57.9   $ 11,249.8   $ —   $ 11,345.9  

Investment in subsidiaries

    3,921.4     3,210.0     2,714.3     2,731.4     (12,577.1 )   —  

Premiums receivable, net of ceding commissions payable

    —     —     —     1,193.2     (133.7 )   1,059.5  

Ceded unearned premium reserve

    —     —     —     1,802.6     (1,029.3 )   773.3  

Deferred acquisition costs

    —     —     —     331.6     (99.3 )   232.3  

Reinsurance recoverable on unpaid losses

    —     —     —     114.9     (88.9 )   26.0  

Credit derivative assets

    —     —     —     669.2     (65.3 )   603.9  

Deferred tax asset, net

    —     (0.6 )   (94.6 )   1,110.8     (3.6 )   1,012.0  

Intercompany receivable

    —     —     —     300.0     (300.0 )   —  

Financial guaranty variable interest entities' assets, at fair value

    —     —     —     3,492.2     —     3,492.2  

Other assets(1)

    23.8     21.7     37.2     719.1     (108.0 )   693.8  
                           
 

Total assets

  $ 3,961.2   $ 3,253.3   $ 2,714.8   $ 23,714.8   $ (14,405.2 ) $ 19,238.9  
                           

Liabilities and shareholders' equity

                                     

Unearned premium reserves

  $ —   $ —   $ —   $ 7,289.9   $ (974.5 ) $ 6,315.4  

Loss and LAE reserve

    —     —     —     625.0     (106.9 )   518.1  

Long-term debt

    —     518.9     411.3     116.2     —     1,046.4  

Intercompany payable

    —     —     —     300.0     (300.0 )   —  

Credit derivative liabilities

    —     0.2     —     2,853.4     (65.4 )   2,788.2  

Financial guaranty variable interest entities' liabilities, at fair value

    —     —     —     4,037.6     —     4,037.6  

Other liabilities(2)

    11.2     2.8     17.2     780.7     (228.7 )   583.2  
                           
 

Total liabilities

    11.2     521.9     428.5     16,002.8     (1,675.5 )   15,288.9  
                           
 

Total shareholders' equity attributable to Assured Guaranty Ltd

    3,950.0     2,731.4     2,286.3     7,712.0     (12,729.7 )   3,950.0  
                           

Noncontrolling interest of financial guaranty variable interest entities

    —     —     —     —     —     —  

Total shareholders' equity

    3,950.0     2,731.4     2,286.3     7,712.0     (12,729.7 )   3,950.0  
                           
 

Total liabilities and shareholders' equity

  $ 3,961.2   $ 3,253.3   $ 2,714.8   $ 23,714.8   $ (14,405.2 ) $ 19,238.9  
                           

(1)
Includes salvage and subrogation recoverable, current income tax receivable and other assets.

(2)
Includes reinsurance balances payable, net and other liabilities.


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Assets

                                     

Total investment portfolio and cash

  $ 22.5   $ 15.7   $ 45.7   $ 10,753.2   $ —   $ 10,837.1  

Investment in subsidiaries

    3,768.9     3,030.7     2,378.8     2,555.1     (11,733.5 )   —  

Premiums receivable, net of ceding commissions payable

    —     —     —     1,346.8     (179.2 )   1,167.6  

Ceded unearned premium reserve

    —     —     —     1,883.4     (1,061.6 )   821.8  

Deferred acquisition costs

    —     —     —     350.4     (110.6 )   239.8  

Reinsurance recoverable on unpaid losses

    —     —     —     93.1     (70.8 )   22.3  

Credit derivative assets

    —     —     —     672.7     (79.8 )   592.9  

Deferred tax asset, net

    —     (0.8 )   (95.8 )   1,320.2     0.4     1,224.0  

Intercompany receivable

    —     —     —     300.0     (300.0 )   —  

Financial guaranty variable interest entities' assets, at fair value

    —     —     —     3,657.5     —     3,657.5  

Other assets(1)

    19.2     3.8     15.2     1,354.5     (161.1 )   1,231.6  
                           
 

Total assets

  $ 3,810.6   $ 3,049.4   $ 2,343.9   $ 24,286.9   $ (13,696.2 ) $ 19,794.6  
                           

Liabilities and shareholders' equity

                                     

Unearned premium reserves

  $ —   $ —   $ —   $ 7,976.5   $ (1,003.6 ) $ 6,972.9  

Loss and LAE reserve

    —     —     —     652.5     (89.5 )   563.0  

Long-term debt

    —     518.4     407.5     127.0     —     1,052.9  

Intercompany payable

    —     —     —     300.0     (300.0 )   —  

Credit derivative liabilities

    —     0.2     —     2,545.2     (79.9 )   2,465.5  

Financial guaranty variable interest entities' liabilities, at fair value

    —     —     —     4,264.2     —     4,264.2  

Other liabilities(2)

    11.8     (24.3 )   (6.9 )   1,023.7     (327.0 )   677.3  
                           
 

Total liabilities

    11.8     494.3     400.6     16,889.1     (1,800.0 )   15,995.8  
                           
 

Total shareholders' equity attributable to Assured Guaranty Ltd

    3,798.8     2,555.1     1,943.3     7,397.8     (11,896.2 )   3,798.8  
                           

Noncontrolling interest of financial guaranty variable interest entities

    —     —     —     —     —     —  

Total shareholders' equity

    3,798.8     2,555.1     1,943.3     7,397.8     (11,896.2 )   3,798.8  
                           
 

Total liabilities and shareholders' equity

  $ 3,810.6   $ 3,049.4   $ 2,343.9   $ 24,286.9   $ (13,696.2 ) $ 19,794.6  
                           

(1)
Includes salvage and subrogation recoverable and other assets.

(2)
Includes reinsurance balances payable, net, current income tax payable and other liabilities.


CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2009
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Assets

                                     

Total investment portfolio and cash

  $ 52.5   $ 3.7   $ 45.5   $ 10,910.8   $ —   $ 11,012.5  

Investment in subsidiaries

    3,457.1     2,852.0     2,070.9     2,354.6     (10,734.6 )   —  

Premiums receivable, net of ceding commissions payable

    —     —     —     1,583.3     (165.1 )   1,418.2  

Ceded unearned premium reserve

    —     —     —     1,972.9     (892.4 )   1,080.5  

Deferred acquisition costs

    —     —     —     360.2     (118.2 )   242.0  

Reinsurance recoverable on unpaid losses

    —     —     —     65.3     (51.2 )   14.1  

Credit derivative assets

    —     —     —     540.0     (47.5 )   492.5  

Deferred tax asset, net

    —     (0.4 )   (97.9 )   1,245.1     11.4     1,158.2  

Intercompany receivable

    —     —     —     300.0     (300.0 )   —  

Financial guaranty variable interest entities' assets, at fair value

    —     —     —     762.3     —     762.3  

Other assets(1)

    22.6     1.3     34.5     700.8     (136.8 )   622.4  
                           
 

Total assets

  $ 3,532.2   $ 2,856.6   $ 2,053.0   $ 20,795.3   $ (12,434.4 ) $ 16,802.7  
                           

Liabilities and shareholders' equity

                                     

Unearned premium reserves

  $ —   $ —   $ —   $ 9,221.4   $ (821.2 ) $ 8,400.2  

Loss and LAE reserve

    —     —     —     368.8     (79.3 )   289.5  

Long-term debt

    —     517.4     400.0     149.1     —     1,066.5  

Intercompany payable

    —           —     300.0     (300.0 )   —  

Credit derivative liabilities

    —     0.2     —     2,081.8     (47.4 )   2,034.6  

Financial guaranty variable interest entities' liabilities, at fair value

    —     —     —     762.7     —     762.7  

Other liabilities(2)

    11.7     (15.6 )   32.4     979.7     (279.1 )   729.1  
                           
 

Total liabilities

    11.7     502.0     432.4     13,863.5     (1,527.0 )   13,282.6  
                           
 

Total shareholders' equity attributable to Assured Guaranty Ltd

    3,520.5     2,354.6     1,620.6     6,932.2     (10,907.4 )   3,520.5  
                           

Noncontrolling interest of financial guaranty variable interest entities

    —     —     —     (0.4 )   —     (0.4 )

Total shareholders' equity

    3,520.5     2,354.6     1,620.6     6,931.8     (10,907.4 )   3,520.1  
                           
 

Total liabilities and shareholders' equity

  $ 3,532.2   $ 2,856.6   $ 2,053.0   $ 20,795.3   $ (12,434.4 ) $ 16,802.7  
                           

(1)
Includes salvage and subrogation recoverable and other assets.

(2)
Includes reinsurance balances payable, net, current income tax payable and other liabilities.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2011
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 227.5   $ 2.5   $ 230.0  

Net investment income

    —     —     0.1     104.4     (3.7 )   100.8  

Net realized investment gains (losses)

    —     —     —     (5.1 )   —     (5.1 )

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     (10.8 )   —     (10.8 )
 

Net unrealized gains (losses)

    —     —     —     (48.6 )   —     (48.6 )
                           
   

Net change in fair value of credit derivatives

    —     —     —     (59.4 )   —     (59.4 )

Equity in earnings of subsidiaries

    (52.3 )   (60.8 )   29.1     (67.3 )   151.3     —  

Other income(1)

    —     —     —     (163.9 )   (0.4 )   (164.3 )
                           
 

Total revenues

    (52.3 )   (60.8 )   29.2     36.2     149.7     102.0  
                           

Expenses

                                     

Loss and LAE

    —     —     —     131.0     1.9     132.9  

Amortization of deferred acquisition costs

    —     —     —     13.4     (3.9 )   9.5  

Interest expense

    —     9.9     13.4     5.2     (3.8 )   24.7  

Goodwill and settlement of pre-existing relationship

    —     —     —     —     —     —  

Other operating expenses

    5.4     0.1     0.2     43.1     (0.3 )   48.5  
                           
 

Total expenses

    5.4     10.0     13.6     192.7     (6.1 )   215.6  
                           

Income (loss) before income taxes

    (57.7 )   (70.8 )   15.6     (156.5 )   155.8     (113.6 )

Total provision (benefit) for income taxes

    —     (3.5 )   (4.7 )   (48.6 )   0.9     (55.9 )
                           

Net income (loss)

    (57.7 )   (67.3 )   20.3     (107.9 )   154.9     (57.7 )

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —     —  
                           

Net income (loss)

  $ (57.7 ) $ (67.3 ) $ 20.3   $ (107.9 ) $ 154.9   $ (57.7 )
                           

(1)
Includes fair value gain (loss) on CCS, net change in fair value of FG VIEs and other income.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 288.0   $ 4.1   $ 292.1  

Net investment income

    —     —     0.1     94.6     (3.8 )   90.9  

Net realized investment gains (losses)

    —     —     —     (9.8 )   1.4     (8.4 )

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     38.4     —     38.4  
 

Net unrealized gains (losses)

    —     —     —     35.1     —     35.1  
                           
   

Net change in fair value of credit derivatives

    —     —     —     73.5     —     73.5  

Equity in earnings of subsidiaries

    207.0     201.5     177.3     193.3     (779.1 )   —  

Other income(1)

    —     —     —     (0.1 )   (0.3 )   (0.4 )
                           
 

Total revenues

    207.0     201.5     177.4     639.5     (777.7 )   447.7  
                           

Expenses

                                     

Loss and LAE

    —     —     —     67.5     3.7     71.2  

Amortization of deferred acquisition costs

    —     —     —     9.0     (2.1 )   6.9  

Interest expense

    —     9.8     13.4     5.5     (3.8 )   24.9  

Other operating expenses(2)

    3.5     2.7     0.6     43.9     (0.5 )   50.2  
                           
 

Total expenses

    3.5     12.5     14.0     125.9     (2.7 )   153.2  
                           

Income (loss) before income taxes

    203.5     189.0     163.4     513.6     (775.0 )   294.5  

Total provision (benefit) for income taxes

    —     (4.3 )   (4.8 )   94.6     5.5     91.0  
                           

Net income (loss)

    203.5     193.3     168.2     419.0     (780.5 )   203.5  

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —     —  
                           

Net income (loss)

  $ 203.5   $ 193.3   $ 168.2   $ 419.0   $ (780.5 ) $ 203.5  
                           

(1)
Includes fair value gain (loss) on CCS, net change in fair value of FG VIEs and other income.

(2)
Includes AGMH acquisition-related expenses and other operating expenses.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other Subsidiaries   Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 478.9   $ 5.1   $ 484.0  

Net investment income

    —     —     0.3     204.4     (7.5 )   197.2  

Net realized investment gains (losses)

    —     —     —     (2.3 )   —     (2.3 )

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     24.6     —     24.6  
 

Net unrealized gains (losses)

    —     —     —     (319.7 )   —     (319.7 )
                           
   

Net change in fair value of credit derivatives

    —     —     —     (295.1 )   —     (295.1 )

Equity in earnings of subsidiaries

    81.5     100.9     307.2     87.9     (577.5 )   —  

Other income(1)

    —     —     —     (26.2 )   (1.5 )   (27.7 )
                           
 

Total revenues

    81.5     100.9     307.5     447.6     (581.4 )   356.1  
                           

Expenses

                                     

Loss and LAE

    —     —     —     102.7     3.2     105.9  

Amortization of deferred acquisition costs

    —     —     —     28.2     (11.3 )   16.9  

Interest expense

    —     19.7     26.8     10.5     (7.5 )   49.5  

Goodwill and settlement of pre-existing relationship

    —     —     —     —     —     —  

Other operating expenses

    13.8     0.3     0.7     92.2     (1.7 )   105.3  
                           
 

Total expenses

    13.8     20.0     27.5     233.6     (17.3 )   277.6  
                           

Income (loss) before income taxes

    67.7     80.9     280.0     214.0     (564.1 )   78.5  

Total provision (benefit) for income taxes

    —     (7.0 )   (9.5 )   23.6     3.7     10.8  
                           

Net income (loss)

    67.7     87.9     289.5     190.4     (567.8 )   67.7  

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —     —  
                           

Net income (loss)

  $ 67.7   $ 87.9   $ 289.5   $ 190.4   $ (567.8 ) $ 67.7  
                           

(1)
Includes fair value gain (loss) on CCS, net change in fair value of FG VIEs and other income.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 602.0   $ 9.7   $ 611.7  

Net investment income

    —     —     0.2     182.5     (7.5 )   175.2  

Net realized investment gains (losses)

    —     —     —     (3.1 )   4.1     1.0  

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     65.1     —     65.1  
 

Net unrealized gains (losses)

    —     —     —     287.2     —     287.2  
                           
   

Net change in fair value of credit derivatives

    —     —     —     352.3     —     352.3  

Equity in earnings of subsidiaries

    539.6     449.0     303.8     434.4     (1,726.8 )   —  

Other income(1)

    —     —     —     (25.1 )   (0.1 )   (25.2 )
                           
 

Total revenues

    539.6     449.0     304.0     1,543.0     (1,720.6 )   1,115.0  
                           

Expenses

                                     

Loss and LAE

    —     —     —     200.5     1.2     201.7  

Amortization of deferred acquisition costs

    —     —     —     19.9     (4.8 )   15.1  

Interest expense

    —     19.6     26.8     11.1     (7.5 )   50.0  

Other operating expenses(2)

    14.1     2.8     1.2     99.3     (0.6 )   116.8  
                           
 

Total expenses

    14.1     22.4     28.0     330.8     (11.7 )   383.6  
                           

Income (loss) before income taxes

    525.5     426.6     276.0     1,212.2     (1,708.9 )   731.4  

Total provision (benefit) for income taxes

    —     (7.8 )   (9.6 )   212.8     10.5     205.9  
                           

Net income (loss)

    525.5     434.4     285.6     999.4     (1,719.4 )   525.5  

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —     —  
                           

Net income (loss)

  $ 525.5   $ 434.4   $ 285.6   $ 999.4   $ (1,719.4 ) $ 525.5  
                           

(1)
Includes fair value gain (loss) on CCS, net change in fair value of FG VIEs and other income.

(2)
Includes AGMH acquisition-related expenses and other operating expenses.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 1,168.2   $ 18.5   $ 1,186.7  

Net investment income

    —     —     0.5     369.2     (15.0 )   354.7  

Net realized investment gains (losses)

    —     —     0.1     (6.1 )   4.0     (2.0 )

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     153.5     —     153.5  
 

Net unrealized gains (losses)

    —     —     —     (157.8 )   —     (157.8 )
                           
   

Net change in fair value of credit derivatives

    —     —     —     (4.3 )   —     (4.3 )

Equity in earnings of subsidiaries

    573.3     511.3     585.3     483.6     (2,153.5 )   —  

Other income(1)

    —     —     —     (132.7 )   (1.1 )   (133.8 )
                           
 

Total revenues

    573.3     511.3     585.9     1,877.9     (2,147.1 )   1,401.3  
                           

Expenses

                                     

Loss and LAE

    —     —     —     408.9     4.9     413.8  

Amortization of deferred acquisition costs

    —     —     —     41.7     (7.6 )   34.1  

Interest expense

    —     39.3     53.6     21.7     (15.0 )   99.6  

Other operating expenses(2)

    24.4     3.3     2.8     190.0     (2.2 )   218.3  
                           
 

Total expenses

    24.4     42.6     56.4     662.3     (19.9 )   765.8  
                           

Income (loss) before income taxes

    548.9     468.7     529.5     1,215.6     (2,127.2 )   635.5  

Total provision (benefit) for income taxes

    —     (14.9 )   (21.1 )   110.3     12.3     86.6  
                           

Net income (loss)

    548.9     483.6     550.6     1,105.3     (2,139.5 )   548.9  

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —     —  
                           

Net income (loss)

  $ 548.9   $ 483.6   $ 550.6   $ 1,105.3   $ (2,139.5 ) $ 548.9  
                           

(1)
Includes fair value gain (loss) on CCS, net change in fair value of FG VIEs and other income.

(2)
Includes AGMH acquisition-related expenses and other operating expenses.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                                     

Net earned premiums

  $ —   $ —   $ —   $ 895.2   $ 35.2   $ 930.4  

Net investment income

    0.1     0.5     0.3     259.4     (1.1 )   259.2  

Net realized investment gains (losses)

    —     —     —     (32.9 )   0.2     (32.7 )

Net change in fair value of credit derivatives:

                                     
 

Realized gains and other settlements

    —     —     —     163.6     —     163.6  
 

Net unrealized gains (losses)

    —     —     —     (337.8 )   —     (337.8 )
                           
   

Net change in fair value of credit derivatives

    —     —     —     (174.2 )   —     (174.2 )

Equity in earnings of subsidiaries

    124.5     319.4     743.6     285.3     (1,472.8 )   —  

Other income(1)

    —     —     —     (52.9 )   (12.7 )   (65.6 )
                           
 

Total revenues

    124.6     319.9     743.9     1,179.9     (1,451.2 )   917.1  
                           

Expenses

                                     

Loss and LAE

    —     —     —     378.3     (0.5 )   377.8  

Amortization of deferred acquisition costs

    —     —     —     18.1     35.8     53.9  

Interest expense

    —     31.6     26.8     4.9     (0.5 )   62.8  

Goodwill and settlement of pre-existing relationship

    —     —     —     (147.1 )   170.4     23.3  

Other operating expenses(2)

    27.4     18.8     2.5     255.3     (37.6 )   266.4  
                           
 

Total expenses

    27.4     50.4     29.3     509.5     167.6     784.2  
                           

Income (loss) before income taxes

    97.2     269.5     714.6     670.4     (1,618.8 )   132.9  

Total provision (benefit) for income taxes

    —     (15.8 )   (10.1 )   56.5     6.3     36.9  
                           

Net income (loss)

    97.2     285.3     724.7     613.9     (1,625.1 )   96.0  

Less: noncontrolling interest of variable interest entities

    —     —     —     (1.2 )   —     (1.2 )
                           

Net income (loss)

  $ 97.2   $ 285.3   $ 724.7   $ 615.1   $ (1,625.1 ) $ 97.2  
                           

(1)
Includes fair value gain (loss) on CCS and other income.

(2)
Includes AGMH acquisition-related expenses and other operating expenses.

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2008
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Revenues

                               

Net earned premiums

  $ —   $ —   $ 261.4   $ —   $ 261.4  

Net investment income

    0.5     0.1     162.0     —     162.6  

Net realized investment gains (losses)

    —     —     (69.8 )   —     (69.8 )

Net change in fair value of credit derivatives:

                               
 

Realized gains and other settlements

    —     —     117.6     —     117.6  
 

Net unrealized gains (losses)

    —     —     38.0     —     38.0  
                       

Net change in fair value of credit derivatives

    —     —     155.6     —     155.6  

Equity in earnings of subsidiaries

    85.6     136.1     —     (221.7 )   —  

Other income(1)

    —     1.0     43.4     (1.0 )   43.4  
                       

Total revenues

    86.1     137.2     552.6     (222.7 )   553.2  
                       

Expenses

                               

Loss and LAE

    —     —     265.8     —     265.8  

Amortization of deferred acquisition costs

    —     —     61.2     —     61.2  

Interest expense

    —     23.3     —     —     23.3  

Goodwill and settlement of pre-existing relationship

    —     —     —     —     —  

Other operating expenses

    17.2     —     73.4     —     90.6  
                       
 

Total expenses

    17.2     23.3     400.4     —     440.9  
                       
 

Income (loss) before income taxes

    68.9     113.9     152.2     (222.7 )   112.3  

Total provision (benefit) for income taxes

    —     (7.8 )   51.2     —     43.4  
                       

Net income (loss)

    68.9     121.7     101.0     (222.7 )   68.9  

Less: noncontrolling interest of variable interest entities

    —     —     —     —     —  
                       

Net income (loss)

  $ 68.9   $ 121.7   $ 101.0   $ (222.7 ) $ 68.9  
                       

(1)
Includes fair value gain (loss) on CCS and other income.         



CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Net cash flows provided by (used in) operating activities

  $ 12.7   $ 6.6   $ (21.7 ) $ 650.8   $ (34.0 ) $ 614.4  
                           

Cash flows from investing activities

                                     

Fixed maturity securities:

                                     
 

Purchases

    —     —     (0.3 )   (1,349.4 )   —     (1,349.7 )
 

Sales

    —     —     —     686.0     —     686.0  
 

Maturities

    —     —     0.4     326.5     —     326.9  

Sales (purchases) of short-term investments, net

    6.5     (17.3 )   (12.1 )   (15.8 )   —     (38.7 )

Net proceeds from financial guaranty variable entities' assets

    —     —     —     424.0     —     424.0  

Investment in subsidiary

    —     —     25.0     —     (25.0 )   —  

Other

    —     —     8.7     —     —     8.7  
                           

Net cash flows used in investing activities

    6.5     (17.3 )   21.7     71.3     (25.0 )   57.2  
                           

Cash flows from financing activities

                                     

Return of capital

    —     —     —     (25.0 )   25.0     —  

Dividends paid

    (16.6 )   —     —     (34.0 )   34.0     (16.6 )

Repurchases of common stock

    —     —     —     —     —     —  

Share activity under option and incentive plans

    (2.6 )   —     —     —     —     (2.6 )

Net paydowns of financial guaranty variable entities' liabilities

    —     —     —     (593.3 )   —     (593.3 )

Issuance of debt

    —     —     —     —     —     —  

Payment of long-term debt

    —     —     —     (10.3 )   —     (10.3 )
                           

Net cash flows provided by (used in) financing activities

    (19.2 )   —     —     (662.6 )   59.0     (622.8 )

Effect of exchange rate changes

    —     —     —     3.2     —     3.2  
                           

Increase (decrease) in cash

    —     (10.7 )   —     62.7     —     52.0  

Cash at beginning of period

    —     13.0     —     94.2     —     107.2  
                           

Cash at end of period

  $ —   $ 2.3   $ —   $ 156.9   $ —   $ 159.2  
                           


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Net cash flows provided by (used in) operating activities

  $ (2.1 ) $ 10.7   $ (25.1 ) $ (203.0 ) $ (30.0 ) $ (249.5 )
                           

Cash flows from investing activities

                                     

Fixed maturity securities:

                                     
 

Purchases

    —     —     —     (1,166.3 )   —     (1,166.3 )
 

Sales

    —     —     —     780.8     —     780.8  
 

Maturities

    —     —     4.1     484.5     —     488.6  

Sales (purchases) of short-term investments, net

    31.5     (10.8 )   (2.4 )   258.3     —     276.6  

Net proceeds from financial guaranty variable entities' assets

    —     —     —     217.3     —     217.3  

Investment in subsidiary

    —     —     25.0     —     (25.0 )   —  

Other

    —     —     —     8.3     —     8.3  
                           

Net cash flows used in investing activities

    31.5     (10.8 )   26.7     582.9     (25.0 )   605.3  
                           

Cash flows from financing activities

                                     

Return of capital

    —     —     —     (25.0 )   25.0     —  

Dividends paid

    (16.6 )   —     —     (30.0 )   30.0     (16.6 )

Repurchases of common stock

    (10.5 )   —     —     —     —     (10.5 )

Share activity under option and incentive plans

    (2.3 )   —     —     —     —     (2.3 )

Net paydowns of financial guaranty variable entities' liabilities

    —     —     —     (259.4 )   —     (259.4 )

Issuance of debt

    —     —     —     —     —     —  

Payment of long-term debt

    —     —     —     (10.8 )   —     (10.8 )
                           

Net cash flows provided by (used in) financing activities

    (29.4 )   —     —     (325.2 )   55.0     (299.6 )

Effect of exchange rate changes

    —     —     —     (3.1 )   —     (3.1 )
                           

Increase (decrease) in cash

    —     (0.1 )   1.6     51.6     —     53.1  

Cash at beginning of period

    —     0.1     —     44.0     —     44.1  
                           

Cash at end of period

  $ —   $ —   $ 1.6   $ 95.6   $ —   $ 97.2  
                           


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2010
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Net cash flows provided by (used in) operating activities

  $ 15.7   $ 11.8   $ (49.0 ) $ 199.5   $ (74.0 ) $ 104.0  
                           

Cash flows from investing activities

                                     

Fixed maturity securities:

                                     
 

Purchases

    —     —     (15.0 )   (2,446.7 )   —     (2,461.7 )
 

Sales

    —     —     4.5     1,059.1     —     1,063.6  
 

Maturities

    —     —     6.4     988.0     —     994.4  

Sales (purchases) of short-term investments, net

    30.0     1.1     3.1     603.1     —     637.3  

Net proceeds from financial guaranty variable entities' assets

    —     —     —     424.0     —     424.0  

Investment in subsidiary

    —     —     50.0     —     (50.0 )   —  

Other

    —     —     —     19.7     —     19.7  
                           

Net cash flows used in investing activities

    30.0     1.1     49.0     647.2     (50.0 )   677.3  
                           

Cash flows from financing activities

                                     

Return of capital

    —     —     —     (50.0 )   50.0     —  

Dividends paid

    (33.2 )   —     —     (74.0 )   74.0     (33.2 )

Repurchases of common stock

    (10.5 )   —     —     —     —     (10.5 )

Share activity under option and incentive plans

    (2.0 )   —     —     —     —     (2.0 )

Net paydowns of financial guaranty variable entities' liabilities

    —     —     —     (650.8 )   —     (650.8 )

Payment of long-term debt

    —     —     —     (20.9 )   —     (20.9 )
                           

Net cash flows provided by (used in) financing activities

    (45.7 )   —     —     (795.7 )   124.0     (717.4 )

Effect of exchange rate changes

    —     —     —     (0.8 )   —     (0.8 )
                           

Increase (decrease) in cash

    —     12.9     —     50.2     —     63.1  

Cash at beginning of period

    —     0.1     —     44.0     —     44.1  
                           

Cash at end of period

  $ —   $ 13.0   $ —   $ 94.2   $ —   $ 107.2  
                           


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2009
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  AGMH
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Net cash flows provided by (used in) operating activities

  $ 19.6   $ (23.9 ) $ (24.7 ) $ 355.8   $ (47.6 ) $ 279.2  
                           

Cash flows from investing activities

                                     

Fixed maturity securities:

                                     
 

Purchases

    —     —     (1.7 )   (2,286.0 )   —     (2,287.7 )
 

Sales

    —     —     —     1,519.3     —     1,519.3  
 

Maturities

    —     —     1.6     216.3     —     217.9  

Sales (purchases) of short-term investments, net

    (52.3 )   (3.5 )   (0.3 )   (341.0 )   —     (397.1 )

Capital contribution to subsidiary

    (962.9 )   (556.7 )   —     (512.0 )   2,031.6     —  

Acquisition of AGMH

    —     (546.0 )   —     87.0     —     (459.0 )

Investment in subsidiary

    —     —     25.0     —     (25.0 )   —  

Other

    —     —     —     9.4     —     9.4  
                           

Net cash flows used in investing activities

    (1,015.2 )   (1,106.2 )   24.6     (1,307.0 )   2,006.6     (1,397.2 )
                           

Cash flows from financing activities

                                     

Net proceeds from issuance of common stock and equity units

    1,022.8     167.3     —     —     —     1,190.1  

Capital contribution from parent

    —     962.9     —     1,068.7     (2,031.6 )   —  

Return of capital

    —     —     —     (25.0 )   25.0     —  

Dividends paid

    (22.8 )   —     —     (47.1 )   47.6     (22.3 )

Repurchases of common stock

    (3.7 )   —     —     —     —     (3.7 )

Share activity under option and incentive plans

    (0.7 )   —     —     —     —     (0.7 )

Payment of long-term debt

    —     —     —     (14.8 )   —     (14.8 )
                           

Net cash flows provided by (used in) financing activities

    995.6     1,130.2     —     981.8     (1,959.0 )   1,148.6  

Effect of exchange rate changes

    —     —     —     1.2     —     1.2  
                           

Increase (decrease) in cash

    —     0.1     (0.1 )   31.8     —     31.8  

Cash at beginning of period

    —     —     0.1     12.2     —     12.3  
                           

Cash at end of period

  $ —   $ 0.1   $ —   $ 44.0   $ —   $ 44.1  
                           


CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2008
(in millions)

 
  Assured
Guaranty Ltd.
(Parent)
  AGUS
(Issuer)
  Other
Subsidiaries
  Consolidating
Adjustments
  Assured
Guaranty Ltd.
(Consolidated)
 

Net cash flows provided by (used in) operating activities

  $ 21.4   $ (5.2 ) $ 459.6   $ (48.8 ) $ 427.0  
                       

Cash flows from investing activities

                               

Fixed maturity securities:

                               
 

Purchases

    —     —     (1,272.0 )   —     (1,272.0 )
 

Sales

    —     —     532.2     —     532.2  
 

Maturities

    —     —     11.7     —     11.7  

Sales (purchases) of short-term investments, net

    0.2     5.2     73.1     —     78.5  

Capital contribution to subsidiary

    (250.0 )   (100.0 )   —     350.0     —  
                       

Net cash flows used in investing activities

    (249.8 )   (94.8 )   (655.0 )   350.0     (649.6 )
                       

Cash flows from financing activities

                               

Net proceeds from issuance of common stock and equity units

    249.0     —     —     —     249.0  

Capital contribution from parent

    —     100.0     250.0     (350.0 )   —  

Dividends paid

    (17.0 )   —     (47.8 )   48.8     (16.0 )

Share activity under option and incentive plans

    (3.6 )   —     —     —     (3.6 )
                       

Net cash flows provided by (used in) financing activities

    228.4     100.0     202.2     (301.2 )   229.4  

Effect of exchange rate changes

    —     —     (2.5 )   —     (2.5 )
                       

Increase (decrease) in cash

    —     —     4.3     —     4.3  

Cash at beginning of period

    —     —     8.0     —     8.0  
                       

Cash at end of period

  $ —   $ —   $ 12.3   $ —   $ 12.3