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

First Quarter 2018



	Net Unrealized Gains (Losses) on Investments with no OTTI			Net Unrealized Gains (Losses) on Investments with OTTI			Net Unrealized Gains (Losses) on FG VIE Liabilities with Recourse due to ISCR			Cumulative Translation Adjustment			Cash Flow Hedge		Total Accumulated Other Comprehensive Income
	(in millions)
Balance, December 31, 2017	$	273		$	120		$	—		$	(29	)	$	8	$	372
Effect of adoption of ASU 2016-01 (see Note 1)	1			—			(33		)	—			—		(32		)
Other comprehensive income (loss) before reclassifications	(122		)	(11		)	(4		)	6			—		(131		)
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(6		)	11			—			—			—		5
Net investment income	—			—			—			—			—		—
Fair value gains (losses) on FG VIEs	—			—			3			—			0		3
Interest expense	—			—			—			—			0		0
Total before tax	(6		)	11			3			—			0		8
Tax (provision) benefit	0			(2		)	(1		)	—			0		(3		)
Total amount reclassified from AOCI, net of tax	(6		)	9			2			—			0		5
Net current period other comprehensive income (loss)	(128		)	(2		)	(2		)	6			0		(126		)
Balance, March 31, 2018	$	146		$	118		$	(35	)	$	(23	)	$	8	$	214

Changes in Accumulated Other Comprehensive Income by Component

First Quarter 2017



	Net Unrealized Gains (Losses) on Investments with no OTTI			Net Unrealized Gains (Losses) on Investments with OTTI			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	44			50			2			—		96
Amounts reclassified from AOCI to:
Net realized investment gains (losses)	(41		)	9			—			—		(32		)
Net investment income	(28		)	—			—			—		(28		)
Interest expense	—			—			—			0		0
Total before tax	(69		)	9			—			0		(60		)
Tax (provision) benefit	24			(3		)	—			0		21
Total amount reclassified from AOCI, net of tax	(45		)	6			—			0		(39		)
Net current period other comprehensive income (loss)	(1		)	56			2			0		57
Balance, March 31, 2017	$	170		$	66		$	(37	)	$	7	$	206

Share Repurchases



Period	Number of Shares Repurchased	Total Payments (in millions)		Average Price Paid Per Share
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 - September 30, 2017)	1,847,901	80		43.29
2017 (October 1 - December 31, 2017)	1,934,990	70		36.18
Total 2017	12,669,643	$	501	$	39.57
2018 (January 1 - March 31)	2,787,936	98		35.20
2018 (April 1 - through May 4, 2018)	1,427,026	53		36.91
Total 2018	4,214,962	$	151	$	35.78
Cumulative repurchases since the beginning of 2013	85,527,812	$	2,367	$	27.68

The Board of Directors (the Board) most recently authorized share repurchases on November 1, 2017, for an additional $300 million. The total remaining capacity for share repurchases under Board authorizations was $197 million as of May 4, 2018. 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, other potential uses for such funds, 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 then 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.