Subsidiary Information (Tables)

6 Months Ended

Jun. 30, 2011

Subsidiary Information

Condensed Consolidating Balance Sheet

	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		$	11,291.3	$	—		$	11,387.4
Investment in subsidiaries	3,885.3		3,173.9			2,684.7			2,695.3		(12,439.2		)	—
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		)	1,130.2		(3.6		)	1,031.4
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	$	3,925.1	$	3,217.2		$	2,685.2		$	23,739.6	$	(14,267.3	)	$	19,299.8
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			—			2,856.6		(65.4		)	2,791.4
Financial guaranty variable interest entities’ liabilities, at fair value	—		—			—			4,131.4		—			4,131.4
Other liabilities(2)	11.2		2.8			17.2			780.7		(228.7		)	583.2
Total liabilities	11.2		521.9			428.5			16,099.8		(1,675.5		)	15,385.9
Total shareholders’ equity	3,913.9		2,695.3			2,256.7			7,639.8		(12,591.8		)	3,913.9
Total liabilities and shareholders’ equity	$	3,925.1	$	3,217.2		$	2,685.2		$	23,739.6	$	(14,267.3	)	$	19,299.8

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

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

	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		$	10,765.4	$	—		$	10,849.3
Investment in subsidiaries	3,703.6		2,965.4			2,316.9			2,489.8		(11,475.7		)	—
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		)	1,355.3		0.4			1,259.1
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	$	3,745.3	$	2,984.1		$	2,282.0		$	24,268.9	$	(13,438.4	)	$	19,841.9
Liabilities and shareholders’ equity
Unearned premium reserves	$	—	$	—		$	—		$	7,976.5	$	(1,003.6	)	$	6,972.9
Loss and LAE reserve	—		—			—			663.9		(89.5		)	574.4
Long-term debt	—		518.4			407.5			127.0		—			1,052.9
Intercompany payable	—		—			—			300.0		(300.0		)	—
Credit derivative liabilities	—		0.2			—			2,542.5		(79.9		)	2,462.8
Financial guaranty variable interest entities’ liabilities, at fair value	—		—			—			4,368.1		—			4,368.1
Other liabilities(2)	11.8		(24.3		)	(6.9		)	1,023.7		(327.0		)	677.3
Total liabilities	11.8		494.3			400.6			17,001.7		(1,800.0		)	16,108.4
Total shareholders’ equity	3,733.5		2,489.8			1,881.4			7,267.2		(11,638.4		)	3,733.5
Total liabilities and shareholders’ equity	$	3,745.3	$	2,984.1		$	2,282.0		$	24,268.9	$	(13,438.4	)	$	19,841.9

(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

	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			104.8			(3.8		)	101.1
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)	—			—			—			(54.0		)	—			(54.0		)
Net change in fair value of credit derivatives	—			—			—			(64.8		)	—			(64.8		)
Equity in earnings of subsidiaries	(37.2		)	(45.7		)	46.6			(52.2		)	88.5			—
Other income(1)	—			—			—			(144.5		)	(0.4		)	(144.9		)
Total revenues	(37.2		)	(45.7		)	46.7			65.7			86.8			116.3
Expenses
Loss and LAE	—			—			—			122.0			1.9			123.9
Amortization of deferred acquisition costs	—			—			—			13.4			(3.9		)	9.5
Interest expense	—			9.9			13.4			5.2			(3.8		)	24.7
Other operating expenses	5.4			0.1			0.2			43.1			(0.3		)	48.5
Total expenses	5.4			10.0			13.6			183.7			(6.1		)	206.6
Income (loss) before income taxes	(42.6		)	(55.7		)	33.1			(118.0		)	92.9			(90.3		)
Total provision (benefit) for income taxes	—			(3.5		)	(4.7		)	(40.4		)	0.9			(47.7		)
Net income (loss)	$	(42.6	)	$	(52.2	)	$	37.8		$	(77.6	)	$	92.0		$	(42.6	)

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

	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)			AGMH (Issuer)			Other Subsidiaries			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
Revenues
Net earned premiums	$	—	$	—		$	—		$	292.9		$	4.1		$	297.0
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	182.6		177.1			152.8			168.9			(681.4		)	—
Other income(1)	—		—			—			(28.0		)	(0.3		)	(28.3		)
Total revenues	182.6		177.1			152.9			592.1			(680.0		)	424.7
Expenses
Loss and LAE	—		—			—			82.0			3.7			85.7
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			140.4			(2.7		)	167.7
Income (loss) before income taxes	179.1		164.6			138.9			451.7			(677.3		)	257.0
Total provision (benefit) for income taxes	—		(4.3		)	(4.8		)	81.5			5.5			77.9
Net income (loss)	$	179.1	$	168.9		$	143.7		$	370.2		$	(682.8	)	$	179.1

(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.

	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)	—		—			—			(325.6		)	—			(325.6		)
Net change in fair value of credit derivatives	—		—			—			(301.0		)	—			(301.0		)
Equity in earnings of subsidiaries	111.8		131.2			339.9			118.2			(701.1		)	—
Other income(1)	—		—			—			18.9			(1.5		)	17.4
Total revenues	111.8		131.2			340.2			517.1			(705.0		)	395.3
Expenses
Loss and LAE	—		—			—			95.2			3.2			98.4
Amortization of deferred acquisition costs	—		—			—			28.2			(11.3		)	16.9
Interest expense	—		19.7			26.8			10.5			(7.5		)	49.5
Other operating expenses	13.8		0.3			0.7			92.2			(1.7		)	105.3
Total expenses	13.8		20.0			27.5			226.1			(17.3		)	270.1
Income (loss) before income taxes	98.0		111.2			312.7			291.0			(687.7		)	125.2
Total provision (benefit) for income taxes	—		(7.0		)	(9.5		)	40.0			3.7			27.2
Net income (loss)	$	98.0	$	118.2		$	322.2		$	251.0		$	(691.4	)	$	98.0

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

	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	526.7		434.3			287.3			419.7			(1,668.0		)	—
Other income(1)	—		—			—			(51.3		)	(0.1		)	(51.4		)
Total revenues	526.7		434.3			287.5			1,502.1			(1,661.8		)	1,088.8
Expenses
Loss and LAE	—		—			—			194.5			2.1			196.6
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			324.8			(10.8		)	378.5
Income (loss) before income taxes	512.6		411.9			259.5			1,177.3			(1,651.0		)	710.3
Total provision (benefit) for income taxes	—		(7.8		)	(9.6		)	204.9			10.2			197.7
Net income (loss)	$	512.6	$	419.7		$	269.1		$	972.4		$	(1,661.2	)	$	512.6

(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 Cash Flows

	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Subsidiaries			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
										(restated)						(restated)
Net cash flows provided by (used in) operating activities	$	12.7		$	6.6		$	(13.0	)	$	659.6		$	(34.0	)	$	631.9
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			325.3			—			325.7
Sales (purchases) of short-term investments, net	6.5			(17.3		)	(12.1		)	(27.0		)	—			(49.9		)
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		)	13.0			67.6			(25.0		)	44.8
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		)	—			67.8			—			57.1
Cash at beginning of period	—			13.0			—			95.4			—			108.4
Cash at end of period	$	—		$	2.3		$	—		$	163.2		$	—		$	165.5

	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Subsidiaries			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
										(restated)						(restated)
Net cash flows provided by (used in) operating activities	$	(2.1	)	$	10.7		$	(25.1	)	$	(171.1	)	$	(30.0	)	$	(217.6	)
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		)	230.4			—			248.7
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			555.0			(25.0		)	577.4
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			55.6			—			57.1
Cash at beginning of period	—			0.1			—			44.0			—			44.1
Cash at end of period	$	—		$	—		$	1.6		$	99.6		$	—		$	101.2