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Subsidiary Information (Tables)
 3 Months Ended
Mar. 31, 2013
Subsidiary Information [abstract]  
Condensed Consolidating Balance Sheet
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF MARCH 31, 2013
(in millions)
 
 
Assured
Guaranty Ltd.
(Parent)
 
AGUS
(Issuer)
 
AGMH
(Issuer)
 
Other
Entities
 
Consolidating
Adjustments
 
Assured
Guaranty Ltd.
(Consolidated)
ASSETS
 

 
 

 
 

 
 

 
 

 
 

Total investment portfolio and cash
$
212

 
$
15

 
$
48

 
$
11,012

 
$
(300
)
 
$
10,987

Investment in subsidiaries
4,487

 
3,826

 
3,326

 
—

 
(11,639
)
 
—

Premiums receivable, net of ceding commissions payable
—

 
—

 
—

 
1,091

 
(135
)
 
956

Ceded unearned premium reserve
—

 
—

 
—

 
1,494

 
(959
)
 
535

Deferred acquisition costs
—

 
—

 
—

 
185

 
(69
)
 
116

Reinsurance recoverable on unpaid losses
—

 
—

 
—

 
205

 
(149
)
 
56

Credit derivative assets
—

 
—

 
—

 
640

 
(515
)
 
125

Deferred tax asset, net
—

 
48

 
(93
)
 
943

 
(26
)
 
872

Intercompany receivable
—

 
—

 
—

 
173

 
(173
)
 
—

Financial guaranty variable interest entities’ assets, at fair value
—

 
—

 
—

 
2,813

 
—

 
2,813

Other
31

 
2

 
10

 
961

 
(165
)
 
839

TOTAL ASSETS
$
4,730

 
$
3,891

 
$
3,291

 
$
19,517

 
$
(14,130
)
 
$
17,299

LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

 
 

 
 

 
 

 
 

Unearned premium reserves
$
—

 
$
—

 
$
—

 
$
5,913

 
$
(931
)
 
$
4,982

Loss and LAE reserve
—

 
—

 
—

 
698

 
(166
)
 
532

Long-term debt
—

 
348

 
424

 
60

 
—

 
832

Intercompany payable
—

 
173

 
—

 
300

 
(473
)
 
—

Credit derivative liabilities
—

 
—

 
—

 
3,033

 
(515
)
 
2,518

Financial guaranty variable interest entities’ liabilities, at fair value
—

 
—

 
—

 
3,178

 
—

 
3,178

Other
6

 
(16
)
 
1

 
838

 
(296
)
 
533

TOTAL LIABILITIES
6

 
505

 
425

 
14,020

 
(2,381
)
 
12,575

TOTAL SHAREHOLDERS’ EQUITY
4,724

 
3,386

 
2,866

 
5,497

 
(11,749
)
 
4,724

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
4,730

 
$
3,891

 
$
3,291

 
$
19,517

 
$
(14,130
)
 
$
17,299

 
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2012
(in millions)
 
 
Assured
Guaranty Ltd.
(Parent)
 
AGUS
(Issuer)
 
AGMH
(Issuer)
 
Other
Entities
 
Consolidating
Adjustments
 
Assured
Guaranty Ltd.
(Consolidated)
ASSETS
 

 
 

 
 

 
 

 
 

 
 

Total investment portfolio and cash
$
245

 
$
15

 
$
30

 
$
11,233

 
$
(300
)
 
$
11,223

Investment in subsidiaries
4,734

 
3,958

 
3,225

 
3,524

 
(15,441
)
 
—

Premiums receivable, net of ceding commissions payable
—

 
—

 
—

 
1,147

 
(142
)
 
1,005

Ceded unearned premium reserve
—

 
—

 
—

 
1,550

 
(989
)
 
561

Deferred acquisition costs
—

 
—

 
—

 
190

 
(74
)
 
116

Reinsurance recoverable on unpaid losses
—

 
—

 
—

 
223

 
(165
)
 
58

Credit derivative assets
—

 
—

 
—

 
553

 
(412
)
 
141

Deferred tax asset, net
—

 
48

 
(94
)
 
789

 
(22
)
 
721

Intercompany receivable
—

 
—

 
—

 
173

 
(173
)
 
—

Financial guaranty variable interest entities’ assets, at fair value
—

 
—

 
—

 
2,688

 
—

 
2,688

Other
23

 
29

 
26

 
816

 
(165
)
 
729

TOTAL ASSETS
$
5,002

 
$
4,050

 
$
3,187

 
$
22,886

 
$
(17,883
)
 
$
17,242

LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

 
 

 
 

 
 

 
 

Unearned premium reserves
$
—

 
$
—

 
$
—

 
$
6,168

 
$
(961
)
 
$
5,207

Loss and LAE reserve
—

 
—

 
—

 
778

 
(177
)
 
601

Long-term debt
—

 
347

 
423

 
66

 
—

 
836

Intercompany payable
—

 
173

 
—

 
300

 
(473
)
 
—

Credit derivative liabilities
—

 
—

 
—

 
2,346

 
(412
)
 
1,934

Financial guaranty variable interest entities’ liabilities, at fair value
—

 
—

 
—

 
3,141

 
—

 
3,141

Other
8

 
6

 
15

 
803

 
(303
)
 
529

TOTAL LIABILITIES
8

 
526

 
438

 
13,602

 
(2,326
)
 
12,248

TOTAL SHAREHOLDERS’ EQUITY
4,994

 
3,524

 
2,749

 
9,284

 
(15,557
)
 
4,994

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
5,002

 
$
4,050

 
$
3,187

 
$
22,886

 
$
(17,883
)
 
$
17,242
Condensed Consolidating Statement of Operations and Comprehensive Income
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2013
(in millions)
 
Assured
Guaranty Ltd.
(Parent)
 
AGUS
(Issuer)
 
AGMH
(Issuer)
 
Other
Entities
 
Consolidating
Adjustments
 
Assured
Guaranty Ltd.
(Consolidated)
REVENUES
 

 
 

 
 

 
 

 
 

 
 

Net earned premiums
$
—

 
$
—

 
$
—

 
$
246

 
$
2

 
$
248

Net investment income
0

 
0

 
0

 
99

 
(5
)
 
94

Net realized investment gains (losses)
0

 
—

 
0

 
28

 
—

 
28

Net change in fair value of credit derivatives:
 

 
 

 
 

 
 

 
 

 
 
Realized gains (losses) and other settlements
—

 
—

 
—

 
18

 
—

 
18

Net unrealized gains (losses)
—

 
—

 
—

 
(610
)
 
—

 
(610
)
Net change in fair value of credit derivatives
—

 
—

 
—

 
(592
)
 
—

 
(592
)
Equity in earnings of subsidiaries
(139
)
 
(82
)
 
162

 
—

 
59

 
—

Other
—

 
—

 
—

 
47

 
(1
)
 
46

TOTAL REVENUES
(139
)
 
(82
)
 
162

 
(172
)
 
55

 
(176
)
EXPENSES
 

 
 

 
 

 
 

 
 

 
 

Loss and LAE
—

 
—

 
—

 
(44
)
 
(4
)
 
(48
)
Amortization of deferred acquisition costs
—

 
—

 
—

 
8

 
(5
)
 
3

Interest expense
—

 
7

 
13

 
6

 
(5
)
 
21

Other operating expenses
5

 
0

 
—

 
58

 
(3
)
 
60

TOTAL EXPENSES
5

 
7

 
13

 
28

 
(17
)
 
36

INCOME (LOSS) BEFORE INCOME TAXES
(144
)
 
(89
)
 
149

 
(200
)
 
72

 
(212
)
Total provision (benefit) for income taxes
—

 
(3
)
 
(5
)
 
(65
)
 
5

 
(68
)
NET INCOME (LOSS)
$
(144
)
 
$
(86
)
 
$
154

 
$
(135
)
 
$
67

 
$
(144
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME (LOSS)
$
(212
)
 
$
(137
)
 
$
117

 
$
(253
)
 
$
273

 
$
(212
)


CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 2012
(in millions)

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

 
 

 
 

 
 

 
 

 
 

Net earned premiums
$
—

 
$
—

 
$
—

 
$
189

 
$
5

 
$
194

Net investment income
—

 
—

 
0

 
101

 
(3
)
 
98

Net realized investment gains (losses)
—

 
—

 
—

 
1

 
—

 
1

Net change in fair value of credit derivatives:
 

 
 

 
 

 
 

 
 

 
 
Realized gains (losses) and other settlements
—

 
—

 
—

 
(57
)
 
—

 
(57
)
Net unrealized gains (losses)
—

 
—

 
—

 
(634
)
 
—

 
(634
)
Net change in fair value of credit derivatives
—

 
—

 
—

 
(691
)
 
—

 
(691
)
Equity in earnings of subsidiaries
(476
)
 
(353
)
 
(7
)
 
(360
)
 
1,196

 
—

Other
—

 
—

 
—

 
36

 
—

 
36

TOTAL REVENUES
(476
)
 
(353
)
 
(7
)
 
(724
)
 
1,198

 
(362
)
EXPENSES
 

 
 

 
 

 
 

 
 

 
 

Loss and LAE
—

 
—

 
—

 
244

 
(2
)
 
242

Amortization of deferred acquisition costs
—

 
—

 
—

 
9

 
(4
)
 
5

Interest expense
—

 
10

 
13

 
5

 
(3
)
 
25

Other operating expenses
7

 
1

 
—

 
55

 
(1
)
 
62

TOTAL EXPENSES
7

 
11

 
13

 
313

 
(10
)
 
334

INCOME (LOSS) BEFORE INCOME TAXES
(483
)
 
(364
)
 
(20
)
 
(1,037
)
 
1,208

 
(696
)
Total provision (benefit) for income taxes
—

 
(4
)
 
(12
)
 
(208
)
 
11

 
(213
)
NET INCOME (LOSS)
$
(483
)
 
$
(360
)
 
$
(8
)
 
$
(829
)
 
$
1,197

 
$
(483
)
 
 
 
 
 
 
 
 
 
 
 
 
COMPREHENSIVE INCOME (LOSS)
$
(452
)
 
$
(335
)
 
$
9

 
$
(773
)
 
$
1,099

 
$
(452
)
Condensed Consolidating Statement of Cash Flows
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2013
(in millions)
 
 
Assured
Guaranty Ltd.
(Parent)
 
AGUS
(Issuer)
 
AGMH
(Issuer)
 
Other
Entities
 
Consolidating
Adjustments
 
Assured
Guaranty Ltd.
(Consolidated)
Net cash flows provided by (used in) operating activities
$
36

 
$
1

 
$
(6
)
 
$
(5
)
 
$
(40
)
 
$
(14
)
Cash flows from investing activities
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

 
 

 
 

Purchases
—

 
(1
)
 
—

 
(509
)
 
—

 
(510
)
Sales
40

 
—

 
7

 
136

 
—

 
183

Maturities
18

 
—

 
1

 
264

 
—

 
283

Sales (purchases) of short-term investments, net
(34
)
 
—

 
(27
)
 
149

 
—

 
88

Net proceeds from financial guaranty variable entities’ assets
—

 
—

 
—

 
138

 
—

 
138

Investment in subsidiary
—

 
—

 
25

 
—

 
(25
)
 
—

Other
—

 
—

 
—

 
55

 
—

 
55

Net cash flows provided by (used in) investing activities
24

 
(1
)
 
6

 
233

 
(25
)
 
237

Cash flows from financing activities
 

 
 

 
 

 
 

 
 

 
 

Return of capital
—

 
—

 
—

 
(25
)
 
25

 
—

Dividends paid
(19
)
 
—

 
—

 
(40
)
 
40

 
(19
)
Repurchases of common stock
(39
)
 
—

 
—

 
—

 
—

 
(39
)
Share activity under option and incentive plans
(2
)
 
—

 
—

 
—

 
—

 
(2
)
Net paydowns of financial guaranty variable entities’ liabilities
—

 
—

 
—

 
(167
)
 
—

 
(167
)
Payment of long-term debt
—

 
—

 
—

 
(6
)
 
—

 
(6
)
Net cash flows provided by (used in) financing activities
(60
)
 
—

 
—

 
(238
)
 
65

 
(233
)
Effect of exchange rate changes
—

 
—

 
—

 
(3
)
 
—

 
(3
)
Increase (decrease) in cash
—

 
—

 
—

 
(13
)
 
—

 
(13
)
Cash at beginning of period
—

 
13

 
0

 
125

 
—

 
138

Cash at end of period
$
—

 
$
13

 
$
0

 
$
112

 
$
—

 
$
125

 
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
Entities
 
Consolidating
Adjustments
 
Assured
Guaranty Ltd.
(Consolidated)
Net cash flows provided by (used in) operating activities
$
29

 
$
(68
)
 
$
37

 
$
182

 
$
(105
)
 
$
75

Cash flows from investing activities
 

 
 

 
 

 
 

 
 

 
 

Fixed maturity securities:
 

 
 

 
 

 
 

 
 

 
 

Purchases
—

 
—

 
(11
)
 
(372
)
 
—

 
(383
)
Sales
—

 
—

 
—

 
189

 
—

 
189

Maturities
—

 
—

 
1

 
252

 
—

 
253

Sales (purchases) of short-term investments, net
(10
)
 
27

 
3

 
(163
)
 
—

 
(143
)
Net proceeds from financial guaranty variable entities’ assets
—

 
—

 
—

 
138

 
—

 
138

Other
—

 
—

 
—

 
53

 
—

 
53

Net cash flows provided by (used in) investing activities
(10
)
 
27

 
(7
)
 
97

 
—

 
107

Cash flows from financing activities
 

 
 

 
 

 
 

 
 

 
 
Dividends paid
(16
)
 
—

 
(30
)
 
(75
)
 
105

 
(16
)
Share activity under option and incentive plans
(3
)
 
—

 
—

 
—

 
—

 
(3
)
Net paydowns of financial guaranty variable entities’ liabilities
—

 
—

 
—

 
(193
)
 
—

 
(193
)
Payment of long-term debt
—

 
—

 
—

 
(5
)
 
—

 
(5
)
Net cash flows provided by (used in) financing activities
(19
)
 
—

 
(30
)
 
(273
)
 
105

 
(217
)
Effect of exchange rate changes
—

 
—

 
—

 
2

 
—

 
2

Increase (decrease) in cash
—

 
(41
)
 
—

 
8

 
—

 
(33
)
Cash at beginning of period
0

 
72

 
—

 
143

 
—

 
215

Cash at end of period
$
0

 
$
31

 
$
—

 
$
151

 
$
—

 
$
182