Subsidiary Information (Tables)

3 Months Ended

Mar. 31, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2018

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	35	$	528	$	40	$	11,010	$	(348	)	$	11,265
Investment in subsidiaries	6,657		5,902		4,032		220		(16,811		)	—
Premiums receivable, net of commissions payable	—		—		—		1,104		(160		)	944
Ceded unearned premium reserve	—		—		—		994		(872		)	122
Deferred acquisition costs	—		—		—		141		(41		)	100
Intercompany receivable	—		—		—		60		(60		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		651		—			651
Dividend receivable from affiliate	95		—		—		—		(95		)	—
Other	21		31		46		1,507		(668		)	937
TOTAL ASSETS	$	6,808	$	6,461	$	4,118	$	15,687	$	(19,055	)	$	14,019
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,324	$	(929	)	$	3,395
Loss and LAE reserve	—		—		—		1,620		(321		)	1,299
Long-term debt	—		843		463		6		(31		)	1,281
Intercompany payable	—		60		—		300		(360		)	—
Credit derivative liabilities	—		—		—		269		(32		)	237
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		708		—			708
Dividend payable to affiliate	—		95		—		—		(95		)	—
Other	24		27		75		628		(439		)	315
TOTAL LIABILITIES	24		1,025		538		7,855		(2,207		)	7,235
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,784		5,436		3,580		7,612		(16,628		)	6,784
Noncontrolling interest	—		—		—		220		(220		)	—
TOTAL SHAREHOLDERS' EQUITY	6,784		5,436		3,580		7,832		(16,848		)	6,784
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,808	$	6,461	$	4,118	$	15,687	$	(19,055	)	$	14,019

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 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	$	36	$	319	$	28	$	11,484	$	(328	)	$	11,539
Investment in subsidiaries	6,794		6,126		4,048		216		(17,184		)	—
Premiums receivable, net of commissions payable	—		—		—		1,074		(159		)	915
Ceded unearned premium reserve	—		—		—		1,002		(883		)	119
Deferred acquisition costs	—		—		—		144		(43		)	101
Intercompany receivable	—		—		—		60		(60		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		700		—			700
Other	26		59		40		1,736		(802		)	1,059
TOTAL ASSETS	$	6,856	$	6,504	$	4,116	$	16,416	$	(19,459	)	$	14,433
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,423	$	(948	)	$	3,475
Loss and LAE reserve	—		—		—		1,793		(349		)	1,444
Long-term debt	—		843		461		6		(18		)	1,292
Intercompany payable	—		60		—		300		(360		)	—
Credit derivative liabilities	—		—		—		308		(37		)	271
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		757		—			757
Other	17		59		71		740		(532		)	355
TOTAL LIABILITIES	17		962		532		8,327		(2,244		)	7,594
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,839		5,542		3,584		7,873		(16,999		)	6,839
Noncontrolling interest	—		—		—		216		(216		)	—
TOTAL SHAREHOLDERS’ EQUITY	6,839		5,542		3,584		8,089		(17,215		)	6,839
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,856	$	6,504	$	4,116	$	16,416	$	(19,459	)	$	14,433

Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2018

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	149		$	(4	)	$	145
Net investment income	0			2			0			102			(3		)	101
Net realized investment gains (losses)	—			0			0			(5		)	0			(5		)
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			2			0			2
Net unrealized gains (losses)	—			—			—			32			—			32
Net change in fair value of credit derivatives	—			—			—			34			0			34
Other	3			0			—			73			(58		)	18
TOTAL REVENUES	3			2			0			353			(65		)	293
EXPENSES
Loss and LAE	—			—			—			(16		)	(2		)	(18		)
Amortization of deferred acquisition costs	—			—			—			6			(1		)	5
Interest expense	—			12			13			3			(4		)	24
Other operating expenses	10			3			0			105			(53		)	65
TOTAL EXPENSES	10			15			13			98			(60		)	76
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(7		)	(13		)	(13		)	255			(5		)	217
Total (provision) benefit for income taxes	—			3			3			(25		)	(1		)	(20		)
Equity in net earnings of subsidiaries	204			161			102			7			(474		)	—
NET INCOME (LOSS)	$	197		$	151		$	92		$	237		$	(480	)	$	197
Less: noncontrolling interest	—			—			—			7			(7		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	197		$	151		$	92		$	230		$	(473	)	$	197

COMPREHENSIVE INCOME (LOSS)	$	71		$	67		$	46		$	111		$	(224	)	$	71

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 relationship	—			—			—			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			136			8			(667		)	—
NET INCOME (LOSS)	$	317		$	187		$	127		$	384		$	(698	)	$	317
Less: noncontrolling interest	—			—			—			8			(8		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	317		$	187		$	127		$	376		$	(690	)	$	317

COMPREHENSIVE INCOME (LOSS)	$	374		$	244		$	192		$	437		$	(873	)	$	374

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2018

(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	$	128		$	83		$	63		$	46		$	(293	)	$	27
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(18		)	(12		)	(400		)	19			(411		)
Sales	—			11			2			396			—			409
Maturities	—			—			0			225			—			225
Sales (purchases) of short-term investments, net	1			(217		)	(4		)	104			—			(116		)
Net proceeds from financial guaranty variable entities’ assets	—			—			—			33			—			33
Investment in subsidiaries	—			—			—			—			—			—
Proceeds from stock redemption and return of capital from subsidiaries	—			200			—			—			(200		)	—
Other	—			(13		)	—			(1		)	—			(14		)
Net cash flows provided by (used in) investing activities	1			(37		)	(14		)	357			(181		)	126
Cash flows from financing activities
Return of capital	—			—			—			—			—			—
Capital contribution	—			—			—			—			—			—
Dividends paid	(18		)	(78		)	(50		)	(165		)	293			(18		)
Repurchases of common stock	(100		)	—			—			—			—			(100		)
Repurchases of common stock to pay withholding taxes	(12		)	—			—			(200		)	200			(12		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(33		)	—			(33		)
Repayment/ extinguishment of long-term debt	—			—			—			0			(19		)	(19		)
Proceeds from options exercises	1			—			—			—			—			1
Net cash flows provided by (used in) financing activities	(129		)	(78		)	(50		)	(398		)	474			(181		)
Effect of exchange rate changes	—			—			—			1			—			1
Increase (decrease) in cash and restricted cash	0			(32		)	(1		)	6			—			(27		)
Cash and restricted cash at beginning of period	0			33			2			109			—			144
Cash and restricted cash at end of period	$	0		$	1		$	1		$	115		$	—		$	117

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 subsidiaries	—			(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