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

Second Quarter 2017



	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, March 31, 2017	$	170		$	66		$	(37	)	$	7	$	206
Other comprehensive income (loss) before reclassifications	62			46			10			—		118
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(6		)	(8		)	—			—		(14		)
Net investment income	—			—			—			—		—
Interest expense	—			—			—			0		0
Total before tax	(6		)	(8		)	—			0		(14		)
Tax (provision) benefit	2			3			—			0		5
Total amount reclassified from AOCI, net of tax	(4		)	(5		)	—			0		(9		)
Net current period other comprehensive income (loss)	58			41			10			0		109
Balance, June 30, 2017	$	228		$	107		$	(27	)	$	7	$	315

Changes in Accumulated Other Comprehensive Income by Component

Second Quarter 2016



	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, March 31, 2016	$	350		$	(21	)	$	(18	)	$	8		$	319
Other comprehensive income (loss) before reclassifications	84			(6		)	(8		)	—			70
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(13		)	4			—			—			(9		)
Net investment income	—			—			—			—			—
Interest expense	—			—			—			(1		)	(1		)
Total before tax	(13		)	4			—			(1		)	(10		)
Tax (provision) benefit	5			(1		)	—			0			4
Total amount reclassified from AOCI, net of tax	(8		)	3			—			(1		)	(6		)
Net current period other comprehensive income (loss)	76			(3		)	(8		)	(1		)	64
Balance, June 30, 2016	$	426		$	(24	)	$	(26	)	$	7		$	383

Changes in Accumulated Other Comprehensive Income by Component

Six Months 2017



	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, 2016	$	171		$	10	$	(39	)	$	7	$	149
Other comprehensive income (loss) before reclassifications	106			96		12			—		214
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(47		)	1		—			—		(46		)
Net investment income	(28		)	—		—			—		(28		)
Interest expense	—			—		—			0		0
Total before tax	(75		)	1		—			0		(74		)
Tax (provision) benefit	26			0		—			0		26
Total amount reclassified from AOCI, net of tax	(49		)	1		—			0		(48		)
Net current period other comprehensive income (loss)	57			97		12			0		166
Balance, June 30, 2017	$	228		$	107	$	(27	)	$	7	$	315

Changes in Accumulated Other Comprehensive Income by Component

Six Months 2016



	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	179			(23		)	(10		)	—			146
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(17		)	21			—			—			4
Net investment income	(3		)	—			—			—			(3		)
Interest expense	—			—			—			(1		)	(1		)
Total before tax	(20		)	21			—			(1		)	0
Tax (provision) benefit	7			(7		)	—			0			0
Total amount reclassified from AOCI, net of tax	(13		)	14			—			(1		)	0
Net current period other comprehensive income (loss)	166			(9		)	(10		)	(1		)	146
Balance, June 30, 2016	$	426		$	(24	)	$	(26	)	$	7		$	383

Share Repurchase

The following table presents share repurchases since January 2016.

Share Repurchases



Period	Number of Shares Repurchased	Total Payments (in millions)		Average Price Paid Per Share
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
2016 (October 1 - December 31, 2016)	3,300,617	116		35.09
Total 2016	10,721,248	306		28.53
2017 (January 1 - March 31)	5,430,041	216		39.83
2017 (April 1 - June 30, 2017)	3,456,711	135		39.05
2017 (July 1 - through August 2, 2017)	685,243	$	30	43.78
Total 2017	9,571,995	381		39.84
Cumulative repurchases since the beginning of 2013	78,215,202	2,096		26.80

The Board of Directors (the Board) most recently authorized share repurchases on February 22, 2017, when it authorized an additional $300 million of share repurchases. The total remaining capacity for share repurchases under Board authorizations was $168 million as of August 2, 2017. 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 at any time. It does not have an expiration date.

Deferred Compensation

The Company used a portion of its share repurchase program to repurchase 297,131 common shares from its Chief Executive Officer and 23,062 common shares from its General Counsel on January 6, 2017. The shares were purchased at the closing price of a common share of the Company on the New York Stock Exchange on January 6, 2017. Separately, these officers also received 297,131 and 23,062 common shares, respectively, on January 6, 2017 in settlement of 297,131 share units and 23,062 share units held by them in the employer stock fund of the Assured Guaranty Ltd. Supplemental Employee Retirement Plan (the AGL SERP). The distribution of shares occurred 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 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.