Subsidiary Information (Tables)

3 Months Ended

Mar. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	80	$	94	$	23	$	11,489	$	(360	)	$	11,326
Investment in subsidiaries	6,003		5,570		4,077		389		(16,039		)	—
Premiums receivable, net of commissions payable	—		—		—		792		(130		)	662
Ceded unearned premium reserve	—		—		—		1,236		(1,000		)	236
Deferred acquisition costs	—		—		—		172		(59		)	113
Reinsurance recoverable on unpaid losses	—		—		—		491		(419		)	72
Credit derivative assets	—		—		—		163		(108		)	55
Deferred tax asset, net	—		40		—		368		(130		)	278
Intercompany receivable	—		—		—		90		(90		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		1,191		—			1,191
Other	34		46		28		645		(234		)	519
TOTAL ASSETS	$	6,117	$	5,750	$	4,128	$	17,026	$	(18,569	)	$	14,452
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,914	$	(1,104	)	$	3,810
Loss and LAE reserve	—		—		—		1,605		(493		)	1,112
Long-term debt	—		842		447		13		—			1,302
Intercompany payable	—		90		—		300		(390		)	—
Credit derivative liabilities	—		—		—		597		(108		)	489
Deferred tax liabilities, net	—		—		90		—		(90		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		1,284		—			1,284
Other	4		26		18		655		(361		)	342
TOTAL LIABILITIES	4		958		555		9,368		(2,546		)	8,339
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,113		4,792		3,573		7,269		(15,634		)	6,113
Noncontrolling interest	—		—		—		389		(389		)	—
TOTAL SHAREHOLDERS' EQUITY	6,113		4,792		3,573		7,658		(16,023		)	6,113
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,117	$	5,750	$	4,128	$	17,026	$	(18,569	)	$	14,452

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2015

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	10	$	156	$	22	$	11,530	$	(360	)	$	11,358
Investment in subsidiaries	5,961		5,569		4,081		377		(15,988		)	—
Premiums receivable, net of commissions payable	—		—		—		833		(140		)	693
Ceded unearned premium reserve	—		—		—		1,266		(1,034		)	232
Deferred acquisition costs	—		—		—		176		(62		)	114
Reinsurance recoverable on unpaid losses	—		—		—		467		(398		)	69
Credit derivative assets	—		—		—		207		(126		)	81
Deferred tax asset, net	—		52		—		357		(133		)	276
Intercompany receivable	—		—		—		90		(90		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		1,261		—			1,261
Other	98		29		26		571		(264		)	460
TOTAL ASSETS	$	6,069	$	5,806	$	4,129	$	17,135	$	(18,595	)	$	14,544
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	5,143	$	(1,147	)	$	3,996
Loss and LAE reserve	—		—		—		1,537		(470		)	1,067
Long-term debt	—		842		445		13		—			1,300
Intercompany payable	—		90		—		300		(390		)	—
Credit derivative liabilities	—		—		—		572		(126		)	446
Deferred tax liabilities, net	—		—		91		—		(91		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		1,349		—			1,349
Other	6		82		15		622		(402		)	323
TOTAL LIABILITIES	6		1,014		551		9,536		(2,626		)	8,481
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,063		4,792		3,578		7,222		(15,592		)	6,063
Noncontrolling interest	—		—		—		377		(377		)	—
TOTAL SHAREHOLDERS’ EQUITY	6,063		4,792		3,578		7,599		(15,969		)	6,063
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,069	$	5,806	$	4,129	$	17,135	$	(18,595	)	$	14,544

Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	192		$	(9	)	$	183
Net investment income	0			0			0			100			(1		)	99
Net realized investment gains (losses)	0			—			—			(12		)	(1		)	(13		)
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			8			0			8
Net unrealized gains (losses)	—			—			—			(68		)	—			(68		)
Net change in fair value of credit derivatives	—			—			—			(60		)	0			(60		)
Bargain purchase gain and settlement of pre-existing relationships	—			—			—			—			—			—
Other	0			—			—			36			—			36
TOTAL REVENUES	0			0			0			256			(11		)	245
EXPENSES
Loss and LAE	—			—			—			93			(3		)	90
Amortization of deferred acquisition costs	—			—			—			7			(3		)	4
Interest expense	—			13			13			3			(3		)	26
Other operating expenses	8			0			1			52			(1		)	60
TOTAL EXPENSES	8			13			14			155			(10		)	180
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(8		)	(13		)	(14		)	101			(1		)	65
Total (provision) benefit for income taxes	—			5			5			(16		)	0			(6		)
Equity in net earnings of subsidiaries	67			50			77			9			(203		)	—
NET INCOME (LOSS)	$	59		$	42		$	68		$	94		$	(204	)	$	59
Less: noncontrolling interest	—			—			—			9			(9		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	59		$	42		$	68		$	85		$	(195	)	$	59

COMPREHENSIVE INCOME (LOSS)	$	141		$	80		$	92		$	178		$	(350	)	$	141

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	140		$	2		$	142
Net investment income	0			0			0			104			(3		)	101
Net realized investment gains (losses)	0			0			0			19			(3		)	16
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			21			0			21
Net unrealized gains (losses)	—			—			—			103			—			103
Net change in fair value of credit derivatives	—			—			—			124			0			124
Other	—			—			—			(14		)	—			(14		)
TOTAL REVENUES	0			0			0			373			(4		)	369
EXPENSES
Loss and LAE	—			—			—			18			0			18
Amortization of deferred acquisition costs	—			—			—			6			(2		)	4
Interest expense	—			13			13			4			(5		)	25
Other operating expenses	8			0			0			48			0			56
TOTAL EXPENSES	8			13			13			76			(7		)	103
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(8		)	(13		)	(13		)	297			3			266
Total (provision) benefit for income taxes	—			5			5			(72		)	(3		)	(65		)
Equity in net earnings of subsidiaries	209			163			92			9			(473		)	—
NET INCOME (LOSS)	$	201		$	155		$	84		$	234		$	(473	)	$	201
Less: noncontrolling interest	—			—			—			9			(9		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	201		$	155		$	84		$	225		$	(464	)	$	201

COMPREHENSIVE INCOME (LOSS)	$	201		$	134		$	80		$	233		$	(447	)	$	201

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2016

(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	$	166		$	17		$	88		$	(74	)	$	(287	)	$	(90	)
Cash flows from investing activities
Fixed-maturity securities:
Purchases	(4		)	(11		)	—			(281		)	—			(296		)
Sales	1			—			—			161			—			162
Maturities	—			—			—			301			—			301
Sales (purchases) of short-term investments, net	(69		)	11			—			(5		)	—			(63		)
Net proceeds from financial guaranty variable entities’ assets	—			—			—			66			—			66
Intercompany debt	—			—			—			—			—			—
Investment in subsidiary	—			—			—			—			—			—
Other	—			—			—			2			—			2
Net cash flows provided by (used in) investing activities	(72		)	0			—			244			—			172
Cash flows from financing activities
Return of capital	—			—			—			—			—			—
Dividends paid	(18		)	(80		)	(87		)	(120		)	287			(18		)
Repurchases of common stock	(75		)	—			—			—			—			(75		)
Share activity under option and incentive plans	0			—			—			—			—			0
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(42		)	—			(42		)
Payment of long-term debt	—			—			—			0			—			0
Intercompany debt	—			—			—			—			—			—
Other	—			—			—			(1		)	—			(1		)
Net cash flows provided by (used in) financing activities	(93		)	(80		)	(87		)	(163		)	287			(136		)
Effect of exchange rate changes	—			—			—			0			—			0
Increase (decrease) in cash	1			(63		)	1			7			—			(54		)
Cash at beginning of period	0			95			8			63			—			166
Cash at end of period	$	1		$	32		$	9		$	70		$	—		$	112

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2015

(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	$	97		$	127		$	59		$	34		$	(294	)	$	23
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(46		)	(6		)	(396		)	—			(448		)
Sales	—			122			11			708			—			841
Maturities	—			4			—			151			—			155
Sales (purchases) of short-term investments, net	79			43			19			279			—			420
Net proceeds from financial guaranty variable entities’ assets	—			—			—			30			—			30
Intercompany debt	—			(200		)	—			—			200			—
Investment in subsidiary	—			—			25			—			(25		)	—
Other	—			—			—			3			—			3
Net cash flows provided by (used in) investing activities	79			(77		)	49			775			175			1,001
Cash flows from financing activities
Return of capital	—			—			—			(25		)	25			—
Dividends paid	(19		)	(50		)	(108		)	(136		)	294			(19		)
Repurchases of common stock	(152		)	—			—			—			—			(152		)
Share activity under option and incentive plans	(5		)	—			—			—			—			(5		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(39		)	—			(39		)
Payment of long-term debt	—			—			—			(1		)	—			(1		)
Intercompany debt	—			—			—			200			(200		)	—
Other	—			—			—			4			—			4
Net cash flows provided by (used in) financing activities	(176		)	(50		)	(108		)	3			119			(212		)
Effect of exchange rate changes	—			—			—			(2		)	—			(2		)
Increase (decrease) in cash	—			—			—			810			—			810
Cash at beginning of period	0			—			4			71			—			75
Cash at end of period	$	0		$	—		$	4		$	881		$	—		$	885