Subsidiary Information (Tables)

3 Months Ended

Mar. 31, 2012

Subsidiary Information

Condensed Consolidating Balance Sheet

AS OF MARCH 31, 2012

(in millions)

	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)			Other Subsidiaries		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	43.2	$	31.9	$	68.1		$	11,351.0	$	—		$	11,494.2
Investment in subsidiaries	4,131.1		3,357.2		2,785.6			2,923.3		(13,197.2		)	—
Premiums receivable, net of ceding commissions payable	—		—		—			1,159.7		(141.0		)	1,018.7
Ceded unearned premium reserve	—		—		—			1,654.4		(1,023.0		)	631.4
Deferred acquisition costs	—		—		—			216.4		(87.4		)	129.0
Reinsurance recoverable on unpaid losses	—		—		—			333.7		(180.8		)	152.9
Credit derivative assets	—		—		—			490.3		(26.7		)	463.6
Deferred tax asset, net	—		22.3		(76.1		)	1,098.4		(12.8		)	1,031.8
Intercompany receivable	—		—		—			300.0		(300.0		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—			2,827.7		—			2,827.7
Other	16.3		40.8		21.6			811.2		(134.4		)	755.5
TOTAL ASSETS	$	4,190.6	$	3,452.2	$	2,799.2		$	23,166.1	$	(15,103.3	)	$	18,504.8
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—		$	6,822.8	$	(983.6	)	$	5,839.2
Loss and LAE reserve	—		—		—			1,148.5		(194.0		)	954.5
Long-term debt	—		519.8		417.0			97.9		—			1,034.7
Intercompany payable	—		—		—			300.0		(300.0		)	—
Credit derivative liabilities	—		0.2		—			2,442.8		(26.7		)	2,416.3
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—			3,450.8		—			3,450.8
Other	8.1		8.9		20.9			847.0		(258.1		)	626.8
TOTAL LIABILITIES	8.1		528.9		437.9			15,109.8		(1,762.4		)	14,322.3
TOTAL SHAREHOLDERS’ EQUITY	4,182.5		2,923.3		2,361.3			8,056.3		(13,340.9		)	4,182.5
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,190.6	$	3,452.2	$	2,799.2		$	23,166.1	$	(15,103.3	)	$	18,504.8

AS OF DECEMBER 31, 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	$	32.9	$	99.5		$	61.4		$	11,119.5	$	—		$	11,313.3
Investment in subsidiaries	4,606.7		3,730.0			2,801.3			3,258.1		(14,396.1		)	—
Premiums receivable, net of ceding commissions payable	—		—			—			1,149.6		(146.7		)	1,002.9
Ceded unearned premium reserve	—		—			—			1,739.1		(1,030.2		)	708.9
Deferred acquisition costs	—		—			—			223.3		(90.9		)	132.4
Reinsurance recoverable on unpaid losses	—		—			—			211.8		(142.5		)	69.3
Credit derivative assets	—		—			—			503.4		(34.5		)	468.9
Deferred tax asset, net	—		22.5			(76.9		)	867.2		(9.3		)	803.5
Intercompany receivable	—		—			—			300.0		(300.0		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—			—			2,819.1		—			2,819.1
Other	23.1		(71.3		)	26.9			836.5		(108.8		)	706.4
TOTAL ASSETS	$	4,662.7	$	3,780.7		$	2,812.7		$	23,027.6	$	(16,259.0	)	$	18,024.7
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—		$	—		$	6,949.4	$	(986.6	)	$	5,962.8
Loss and LAE reserve	—		—			—			834.2		(155.2		)	679.0
Long-term debt	—		519.5			415.1			103.7		—			1,038.3
Intercompany payable	—		—			—			300.0		(300.0		)	—
Credit derivative liabilities	—		0.2			—			1,807.1		(34.5		)	1,772.8
Financial guaranty variable interest entities’ liabilities, at fair value	—		—			—			3,458.4		—			3,458.4
Other	11.1		2.9			15.7			674.7		(242.6		)	461.8
TOTAL LIABILITIES	11.1		522.6			430.8			14,127.5		(1,718.9		)	13,373.1
TOTAL SHAREHOLDERS’ EQUITY	4,651.6		3,258.1			2,381.9			8,900.1		(14,540.1		)	4,651.6
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,662.7	$	3,780.7		$	2,812.7		$	23,027.6	$	(16,259.0	)	$	18,024.7

Condensed Consolidating Statement of Operations

FOR THE THREE MONTHS ENDED MARCH 31, 2012

(in millions)

	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Subsidiaries			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	188.5		$	5.2		$	193.7
Net investment income	—			—			0.3			101.2			(3.7		)	97.8
Net realized investment gains (losses)	—			—			—			1.3			—			1.3
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			(56.9		)	—			(56.9		)
Net unrealized gains (losses)	—			—			—			(633.8		)	—			(633.8		)
Net change in fair value of credit derivatives	—			—			—			(690.7		)	—			(690.7		)
Equity in earnings of subsidiaries	(476.5		)	(353.3		)	(6.5		)	(360.0		)	1,196.3			—
Other	—			—			—			40.8			(0.3		)	40.5
TOTAL REVENUES	(476.5		)	(353.3		)	(6.2		)	(718.9		)	1,197.5			(357.4		)
EXPENSES
Loss and LAE	—			—			—			249.2			(2.4		)	246.8
Amortization of deferred acquisition costs	—			—			—			8.9			(3.5		)	5.4
Interest expense	—			9.9			13.4			5.1			(3.7		)	24.7
Other operating expenses	6.5			0.4			0.2			55.1			(0.9		)	61.3
TOTAL EXPENSES	6.5			10.3			13.6			318.3			(10.5		)	338.2
INCOME (LOSS) BEFORE INCOME TAXES	(483.0		)	(363.6		)	(19.8		)	(1,037.2		)	1,208.0			(695.6		)
Total provision (benefit) for income taxes	—			(3.6		)	(12.2		)	(208.4		)	11.6			(212.6		)
NET INCOME (LOSS)	$	(483.0	)	$	(360.0	)	$	(7.6	)	$	(828.8	)	$	1,196.4		$	(483.0	)
OTHER COMPREHENSIVE INCOME (LOSS)	$	30.9		$	25.1		$	17.0		$	56.3		$	(98.4	)	$	30.9

FOR THE THREE MONTHS ENDED MARCH 31, 2011

(in millions)

	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Subsidiaries			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	251.4		$	2.6		$	254.0
Net investment income	—			—			0.2			100.9			(3.7		)	97.4
Net realized investment gains (losses)	—			—			—			2.8			—			2.8
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			35.4			—			35.4
Net unrealized gains (losses)	—			—			—			(271.6		)	—			(271.6		)
Net change in fair value of credit derivatives	—			—			—			(236.2		)	—			(236.2		)
Equity in earnings of subsidiaries	147.7			175.1			291.6			168.6			(783.0		)	—
Other	—			—			—			162.1			(1.1		)	161.0
TOTAL REVENUES	147.7			175.1			291.8			449.6			(785.2		)	279.0
EXPENSES
Loss and LAE	—			—			—			(26.8		)	1.3			(25.5		)
Amortization of deferred acquisition costs	—			—			—			11.1			(7.4		)	3.7
Interest expense	—			9.8			13.4			5.3			(3.7		)	24.8
Other operating expenses	8.4			0.2			0.5			55.1			(1.4		)	62.8
TOTAL EXPENSES	8.4			10.0			13.9			44.7			(11.2		)	65.8
INCOME (LOSS) BEFORE INCOME TAXES	139.3			165.1			277.9			404.9			(774.0		)	213.2
Total provision (benefit) for income taxes	—			(3.5		)	(4.8		)	79.4			2.8			73.9
NET INCOME (LOSS)	$	139.3		$	168.6		$	282.7		$	325.5		$	(776.8	)	$	139.3
OTHER COMPREHENSIVE INCOME (LOSS)	$	(25.4	)	$	(17.8	)	$	(20.0	)	$	(43.1	)	$	80.9		$	(25.4	)

Condensed Consolidating Statement of Cash Flows

FOR THE THREE MONTHS ENDED MARCH 31, 2012

(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	$	29.2		$	(67.6	)	$	37.0		$	181.7		$	(105.0	)	$	75.3
Cash flows from investing activities
Fixed maturity securities:
Purchases	—			(0.3		)	(10.4		)	(371.9		)	—			(382.6		)
Sales	—			—			—			189.3			—			189.3
Maturities	—			—			0.7			252.8			—			253.5
Sales (purchases) of short-term investments, net	(10.3		)	27.0			2.7			(162.1		)	—			(142.7		)
Net proceeds from financial guaranty variable entities’ assets	—			—			—			137.6			—			137.6
Repayment of notes receivable from PFC LLC	—			—			—			46.4			—			46.4
Other	—			—			—			5.2			—			5.2
Net cash flows used in investing activities	(10.3		)	26.7			(7.0		)	97.3			—			106.7
Cash flows from financing activities
Dividends paid	(16.4		)	—			(30.0		)	(75.0		)	105.0			(16.4		)
Share activity under option and incentive plans	(2.5		)	—			—			—			—			(2.5		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(192.9		)	—			(192.9		)
Payment of long-term debt	—			—			—			(5.4		)	—			(5.4		)
Net cash flows provided by (used in) financing activities	(18.9		)	—			(30.0		)	(273.3		)	105.0			(217.2		)
Effect of exchange rate changes	—			—			—			2.7			—			2.7
Increase (decrease) in cash	(0.0		)	(40.9		)	—			8.4			—			(32.5		)
Cash at beginning of period	0.0			71.7			—			142.8			—			214.5
Cash at end of period	$	0.0		$	30.8		$	0.0		$	151.2		$	—		$	182.0

FOR THE THREE MONTHS ENDED MARCH 31, 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	$	12.0		$	6.3		$	(7.2	)	$	(111.2	)	$	(22.0	)	$	(122.1	)
Cash flows from investing activities
Fixed maturity securities:
Purchases	—			—			(0.3		)	(511.4		)	—			(511.7		)
Sales	—			—			—			299.9			—			299.9
Maturities	—			—			0.2			183.4			—			183.6
Sales (purchases) of short-term investments, net	(1.4		)	(16.4		)	7.3			252.8			—			242.3
Net proceeds from financial guaranty variable entities’ assets	—			—			—			162.5			—			162.5
Other	—			—			—			4.2			—			4.2
Net cash flows used in investing activities	(1.4		)	(16.4		)	7.2			391.4			—			380.8
Cash flows from financing activities
Dividends paid	(8.3		)	—			—			(22.0		)	22.0			(8.3		)
Share activity under option and incentive plans	(2.3		)	—			—			—			—			(2.3		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(241.6		)	—			(241.6		)
Payment of long-term debt	—			—			—			(5.1		)	—			(5.1		)
Net cash flows provided by (used in) financing activities	(10.6		)	—			—			(268.7		)	22.0			(257.3		)
Effect of exchange rate changes	—			—			—			1.8			—			1.8
Increase (decrease) in cash	—			(10.1		)	—			13.3			—			3.2
Cash at beginning of period	—			13.0			—			95.4			—			108.4
Cash at end of period	$	—		$	2.9		$	—		$	108.7		$	—		$	111.6