Subsidiary Information (Tables)

3 Months Ended

Mar. 31, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	12	$	312	$	20	$	11,503	$	(359	)	$	11,488
Investment in subsidiaries	6,504		5,852		3,805		299		(16,460		)	—
Premiums receivable, net of commissions payable	—		—		—		1,008		(132		)	876
Ceded unearned premium reserve	—		—		—		1,074		(894		)	180
Deferred acquisition costs	—		—		—		155		(49		)	106
Reinsurance recoverable on unpaid losses	—		—		—		383		(309		)	74
Credit derivative assets	—		—		—		53		(44		)	9
Deferred tax asset, net	—		—		—		540		(102		)	438
Intercompany receivable	—		—		—		70		(70		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		781		—			781
Dividend receivable from affiliate	125		—		—		—		(125		)	—
Other	0		97		38		835		(247		)	723
TOTAL ASSETS	$	6,641	$	6,261	$	3,863	$	16,701	$	(18,791	)	$	14,675
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,800	$	(973	)	$	3,827
Loss and LAE reserve	—		—		—		1,491		(298		)	1,193
Long-term debt	—		843		455		9		—			1,307
Intercompany payable	—		70		—		300		(370		)	—
Credit derivative liabilities	—		—		—		403		(44		)	359
Deferred tax liabilities, net	—		1		87		—		(88		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		855		—			855
Dividend payable to affiliate	—		125		—		—		(125		)	—
Other	4		20		26		857		(410		)	497
TOTAL LIABILITIES	4		1,059		568		8,715		(2,308		)	8,038
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,637		5,202		3,295		7,687		(16,184		)	6,637
Noncontrolling interest	—		—		—		299		(299		)	—
TOTAL SHAREHOLDERS' EQUITY	6,637		5,202		3,295		7,986		(16,483		)	6,637
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,641	$	6,261	$	3,863	$	16,701	$	(18,791	)	$	14,675

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 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	$	36	$	384	$	22	$	11,029	$	(368	)	$	11,103
Investment in subsidiaries	6,164		5,696		3,734		296		(15,890		)	—
Premiums receivable, net of commissions payable	—		—		—		699		(123		)	576
Ceded unearned premium reserve	—		—		—		1,099		(893		)	206
Deferred acquisition costs	—		—		—		156		(50		)	106
Reinsurance recoverable on unpaid losses	—		—		—		484		(404		)	80
Credit derivative assets	—		—		—		69		(56		)	13
Deferred tax asset, net	—		16		—		597		(116		)	497
Intercompany receivable	—		—		—		70		(70		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		876		—			876
Dividend receivable from affiliate	300		—		—		—		(300		)	—
Other	11		78		26		801		(222		)	694
TOTAL ASSETS	$	6,511	$	6,174	$	3,782	$	16,176	$	(18,492	)	$	14,151
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,488	$	(977	)	$	3,511
Loss and LAE reserve	—		—		—		1,596		(469		)	1,127
Long-term debt	—		843		453		10		—			1,306
Intercompany payable	—		70		—		300		(370		)	—
Credit derivative liabilities	—		—		—		458		(56		)	402
Deferred tax liabilities, net	—		—		88		—		(88		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		958		—			958
Dividend payable to affiliate	—		300		—		—		(300		)	—
Other	7		3		14		665		(346		)	343
TOTAL LIABILITIES	7		1,216		555		8,475		(2,606		)	7,647
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,504		4,958		3,227		7,405		(15,590		)	6,504
Noncontrolling interest	—		—		—		296		(296		)	—
TOTAL SHAREHOLDERS’ EQUITY	6,504		4,958		3,227		7,701		(15,886		)	6,504
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,511	$	6,174	$	3,782	$	16,176	$	(18,492	)	$	14,151

Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	167		$	(3	)	$	164
Net investment income	0			0			0			123			(1		)	122
Net realized investment gains (losses)	—			0			0			32			0			32
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			15			0			15
Net unrealized gains (losses)	—			—			—			39			—			39
Net change in fair value of credit derivatives	—			—			—			54			0			54
Bargain purchase gain and settlement of pre-existing relationships	—			—			—			58			—			58
Other	3			—			—			142			(48		)	97
TOTAL REVENUES	3			0			0			576			(52		)	527
EXPENSES
Loss and LAE	—			—			—			11			48			59
Amortization of deferred acquisition costs	—			—			—			5			(1		)	4
Interest expense	—			12			13			2			(3		)	24
Other operating expenses	10			6			1			106			(55		)	68
TOTAL EXPENSES	10			18			14			124			(11		)	155
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(7		)	(18		)	(14		)	452			(41		)	372
Total (provision) benefit for income taxes	—			6			5			(76		)	10			(55		)
Equity in net earnings of subsidiaries	324			199			115			8			(646		)	—
NET INCOME (LOSS)	$	317		$	187		$	106		$	384		$	(677	)	$	317
Less: noncontrolling interest	—			—			—			8			(8		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	317		$	187		$	106		$	376		$	(669	)	$	317

COMPREHENSIVE INCOME (LOSS)	$	374		$	244		$	141		$	437		$	(822	)	$	374

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		)
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 Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2017

(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	$	220		$	105		$	72		$	105		$	(400	)	$	102
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			—			(5		)	(512		)	—			(517		)
Sales	—			—			2			321			—			323
Maturities	—			3			0			262			—			265
Sales (purchases) of short-term investments, net	25			75			5			(93		)	—			12
Net proceeds from financial guaranty variable entities’ assets	—			—			—			46			—			46
Investment in subsidiary	—			(3		)	—			—			3			—
Acquisition of MBIA UK, net of cash acquired	—			—			—			95			—			95
Other	—			—			—			(13		)	—			(13		)
Net cash flows provided by (used in) investing activities	25			75			2			106			3			211
Cash flows from financing activities
Capital contribution	—			—			—			3			(3		)	—
Dividends paid	(19		)	(175		)	(73		)	(152		)	400			(19		)
Repurchases of common stock	(216		)	—			—			—			—			(216		)
Repurchases of common stock to pay withholding taxes	(12		)	—			—			—			—			(12		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(48		)	—			(48		)
Payment of long-term debt	—			—			—			(1		)	—			(1		)
Proceeds from options exercises	2			—			—			—			—			2
Net cash flows provided by (used in) financing activities	(245		)	(175		)	(73		)	(198		)	397			(294		)
Effect of exchange rate changes	—			—			—			2			—			2
Increase (decrease) in cash and restricted cash	—			5			1			15			—			21
Cash and restricted cash at beginning of period	0			1			0			126			—			127
Cash and restricted cash at end of period	$	0		$	6		$	1		$	141		$	—		$	148

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
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		)
Repurchases of common stock to pay withholding taxes	(2		)	—			—			—			—			(2		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(42		)	—			(42		)
Payment of long-term debt	—			—			—			0			—			0
Proceeds from options exercises	1			—			—			—			—			1
Net cash flows provided by (used in) financing activities	(94		)	(80		)	(87		)	(162		)	287			(136		)
Effect of exchange rate changes	—			—			—			0			—			0
Increase (decrease) in cash and restricted cash	—			(63		)	1			8			—			(54		)
Cash and restricted cash at beginning of period	0			95			8			63			—			166
Cash and restricted cash at end of period	$	0		$	32		$	9		$	71		$	—		$	112