Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Other Comprehensive Income

The following tables present the changes in each component of AOCI and the effect of reclassifications out of AOCI on the respective line items in net income.

Changes in Accumulated Other Comprehensive Income by Component

Third Quarter2016

	Net Unrealized Gains (Losses) on Investments with no Other-Than-Temporary Impairment			Net Unrealized Gains (Losses) on Investments with Other-Than-Temporary Impairment			Cumulative Translation Adjustment			Cash Flow Hedge		Total Accumulated Other Comprehensive Income
	(in millions)
Balance, June 30, 2016	$	426		$	(24	)	$	(26	)	$	7	$	383
Other comprehensive income (loss) before reclassifications	(33		)	13			(5		)	—		(25		)
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(3		)	4			—			—		1
Net investment income	—			—			—			—		—
Interest expense	—			—			—			0		0
Total before tax	(3		)	4			—			0		1
Tax (provision) benefit	0			(1		)	—			0		(1		)
Total amount reclassified from AOCI, net of tax	(3		)	3			—			0		—
Net current period other comprehensive income (loss)	(36		)	16			(5		)	0		(25		)
Balance, September 30, 2016	$	390		$	(8	)	$	(31	)	$	7	$	358

Changes in Accumulated Other Comprehensive Income by Component

Third Quarter2015

	Net Unrealized Gains (Losses) on Investments with no Other-Than-Temporary Impairment			Net Unrealized Gains (Losses) on Investments with Other-Than-Temporary Impairment			Cumulative Translation Adjustment			Cash Flow Hedge		Total Accumulated Other Comprehensive Income
	(in millions)
Balance, June 30, 2015	$	236		$	4		$	(9	)	$	8	$	239
Other comprehensive income (loss) before reclassifications	41			(15		)	(4		)	—		22
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	10			17			—			—		27
Net investment income	(9		)	—			—			—		(9		)
Interest expense	—			—			—			0		0
Total before tax	1			17			—			0		18
Tax (provision) benefit	0			(6		)	—			0		(6		)
Total amount reclassified from AOCI, net of tax	1			11			—			0		12
Net current period other comprehensive income (loss)	42			(4		)	(4		)	0		34
Balance, September 30, 2015	$	278		$	0		$	(13	)	$	8	$	273

Changes in Accumulated Other Comprehensive Income by Component

Nine Months2016

	Net Unrealized Gains (Losses) on Investments with no Other-Than-Temporary Impairment			Net Unrealized Gains (Losses) on Investments with Other-Than-Temporary Impairment			Cumulative Translation Adjustment			Cash Flow Hedge			Total Accumulated Other Comprehensive Income
	(in millions)
Balance, December 31, 2015	$	260		$	(15	)	$	(16	)	$	8		$	237
Other comprehensive income (loss) before reclassifications	146			(10		)	(15		)	—			121
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(20		)	25			—			—			5
Net investment income	(3		)	—			—			—			(3		)
Interest expense	—			—			—			(1		)	(1		)
Total before tax	(23		)	25			—			(1		)	1
Tax (provision) benefit	7			(8		)	—			0			(1		)
Total amount reclassified from AOCI, net of tax	(16		)	17			—			(1		)	0
Net current period other comprehensive income (loss)	130			7			(15		)	(1		)	121
Balance, September 30, 2016	$	390		$	(8	)	$	(31	)	$	7		$	358

Changes in Accumulated Other Comprehensive Income by Component

Nine Months2015

	Net Unrealized Gains (Losses) on Investments with no Other-Than-Temporary Impairment			Net Unrealized Gains (Losses) on Investments with Other-Than-Temporary Impairment			Cumulative Translation Adjustment			Cash Flow Hedge			Total Accumulated Other Comprehensive Income
	(in millions)
Balance, December 31, 2014	$	367		$	4		$	(10	)	$	9		$	370
Other comprehensive income (loss) before reclassifications	(77		)	(23		)	(3		)	—			(103		)
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(9		)	29			—			—			20
Net investment income	(9		)	—			—			—			(9		)
Interest expense	—			—			—			(1		)	(1		)
Total before tax	(18		)	29			—			(1		)	10
Tax (provision) benefit	6			(10		)	—			0			(4		)
Total amount reclassified from AOCI, net of tax	(12		)	19			—			(1		)	6
Net current period other comprehensive income (loss)	(89		)	(4		)	(3		)	(1		)	(97		)
Balance, September 30, 2015	$	278		$	0		$	(13	)	$	8		$	273

Share Repurchase

The following table presents share repurchases since January 2013.

Share Repurchases

Period	Number of Shares Repurchased	Total Payments(in millions)		Average Price Paid Per Share
2013	12,512,759	$	264	$	21.12
2014	24,413,781	590		24.17
2015 (January 1 - March 31)	5,860,291	152		25.87
2015 (April 1 - June 30)	4,737,388	133		28.13
2015 (July 1 - September 30)	5,362,103	135		25.17
2015 (October 1 - December 31)	5,035,637	135		26.81
Total 2015	20,995,419	555		26.43
2016 (January 1 - March 31)	3,038,928	75		24.69
2016 (April 1 - June 30)	2,331,474	60		25.73
2016 (July 1 - September 30)	2,050,229	55		26.83
Total 2016 (through September 30)	7,420,631	190		25.61
2016 (October 1 - through November 3, 2016)	692,002	20		28.90
Total 2016	8,112,633	210		25.89
Cumulative repurchases since the beginning of 2013	66,034,592	$	1,619	$	24.52

On February 24, 2016, the Board of Directors approved a $250 million share repurchase authorization, and on November 2, 2016, it approved an incremental $250 million in share repurchases. As of September 30, 2016, the Company's remaining share repurchase authorization was $115 million, and as of November 3, 2016, it was approximately $345 million. The Company expects to repurchase shares from time to time in the open market or in privately negotiated transactions. The timing, form and amount of the share repurchases under the program are at the discretion of management and will depend on a variety of factors, including funds available at the parent company, market conditions, the Company's capital position, legal requirements and other factors. The repurchase program may be modified, extended or terminated by the Board of Directors at any time. It does not have an expiration date.

The Board of Directors has specifically authorized the Company to use a portion of its share repurchase program to repurchase up to 297,131 common shares from its Chief Executive Officer and up to 23,062 common shares from its General Counsel. These officers will also receive 297,131 and 23,062 common shares, respectively, in January 2017 in settlement of 297,131 share units and 23,062 share units, respectively, held by them in the employer stock fund of the Assured Guaranty Ltd. Supplemental Employee Retirement Plan (the “AGL SERP”). The distribution of shares in settlement of the units must occur in January 2017 pursuant to the terms of an amendment adopted in 2011 to the AGL SERP. Such amendment was adopted to comply with requirements of Section 409A of the Internal Revenue Code (the “Code”) and Section 457A of the Code, which required all grandfathered amounts (within the meaning of Section 457A of the Code), including the units in the employer stock fund in the AGL SERP, to be included in the income of the applicable participant no later than 2017. The Company would repurchase shares on the date that these officers receive shares in settlement of the units. The shares would be purchased at the closing price of a common share of the Company on the New York Stock Exchange on that same date, which is currently expected to be January 6, 2017.