Subsidiary Information (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2018

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer) (1)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	45	$	334	$	23	$	11,000	$	(425	)	$	10,977
Investment in subsidiaries	6,440		5,835		3,991		226		(16,492		)	—
Premiums receivable, net of commissions payable	—		—		—		1,071		(167		)	904
Ceded unearned premium reserve	—		—		—		958		(899		)	59
Deferred acquisition costs	—		—		—		143		(38		)	105
Deferred tax asset, net	—		—		—		162		(94		)	68
Intercompany loan receivable	—		—		—		50		(50		)	—
FG VIEs’ assets, at fair value	—		—		—		569		—			569
Dividends receivable from affiliate	60		—		—		—		(60		)	—
Other	29		66		24		1,479		(677		)	921
TOTAL ASSETS	$	6,574	$	6,235	$	4,038	$	15,658	$	(18,902	)	$	13,603
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,452	$	(940	)	$	3,512
Loss and LAE reserve	—		—		—		1,467		(290		)	1,177
Long-term debt	—		844		468		5		(84		)	1,233
Intercompany loan payable	—		50		—		300		(350		)	—
Credit derivative liabilities	—		—		—		236		(27		)	209
Deferred tax liabilities, net	—		49		50		—		(99		)	—
FG VIEs’ liabilities, at fair value	—		—		—		619		—			619
Dividends payable to affiliate	—		60		—		—		(60		)	—
Other	19		3		17		763		(504		)	298
TOTAL LIABILITIES	19		1,006		535		7,842		(2,354		)	7,048
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,555		5,229		3,503		7,590		(16,322		)	6,555
Noncontrolling interest	—		—		—		226		(226		)	—
TOTAL SHAREHOLDERS’ EQUITY	6,555		5,229		3,503		7,816		(16,548		)	6,555
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,574	$	6,235	$	4,038	$	15,658	$	(18,902	)	$	13,603

____________________


(1)	The fair value of investment in AGMH's debt recorded in the AGUS investment portfolio was $125 million. See Note 16, Long-Term Debt and Credit Facilities for more information.

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer) (1)		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
Deferred tax asset, net	—		59		—		93		(54		)	98
Intercompany loan receivable	—		—		—		60		(60		)	—
FG VIEs’ assets, at fair value	—		—		—		700		—			700
Other	26		—		40		1,643		(748		)	961
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 loan payable	—		60		—		300		(360		)	—
Credit derivative liabilities	—		—		—		308		(37		)	271
Deferred tax liabilities, net	—		—		51		—		(51		)	—
FG VIEs’ liabilities, at fair value	—		—		—		757		—			757
Other	17		59		20		740		(481		)	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

____________________


(1)	The fair value of investment in AGMH's debt recorded in the AGUS investment portfolio was $28 million. See Note 16, Long-Term Debt and Credit Facilities for more information.

Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2018

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	563		$	(15	)	$	548
Net investment income	1			9			1			401			(14		)	398
Net realized investment gains (losses)	—			—			—			(32		)	—			(32		)
Net change in fair value of credit derivatives	—			—			—			112			—			112
Other	12			—			—			190			(226		)	(24		)
TOTAL REVENUES	13			9			1			1,234			(255		)	1,002
EXPENSES
Loss and LAE	—			—			—			70			(6		)	64
Amortization of deferred acquisition costs	—			—			—			21			(5		)	16
Interest expense	—			49			54			10			(19		)	94
Other operating expenses	41			10			—			394			(197		)	248
TOTAL EXPENSES	41			59			54			495			(227		)	422
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(28		)	(50		)	(53		)	739			(28		)	580
Total (provision) benefit for income taxes	—			52			11			(123		)	1			(59		)
Equity in net earnings of subsidiaries	549			412			277			24			(1,262		)	—
NET INCOME (LOSS)	521			414			235			640			(1,289		)	521
Less: noncontrolling interest	—			—			—			24			(24		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	521		$	414		$	235		$	616		$	(1,265	)	$	521

COMPREHENSIVE INCOME (LOSS)	$	274		$	218		$	107		$	395		$	(720	)	$	274

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	728		$	(38	)	$	690
Net investment income	—			2			—			427			(11		)	418
Net realized investment gains (losses)	—			—			—			45			(5		)	40
Net change in fair value of credit derivatives	—			—			—			111			—			111
Bargain purchase gain and settlement of pre-existing relationships	—			—			—			58			—			58
Other	10			—			—			608			(196		)	422
TOTAL REVENUES	10			2			—			1,977			(250		)	1,739
EXPENSES
Loss and LAE	—			—			—			327			61			388
Amortization of deferred acquisition costs	—			—			—			26			(7		)	19
Interest expense	—			47			54			11			(15		)	97
Other operating expenses	38			12			1			394			(201		)	244
TOTAL EXPENSES	38			59			55			758			(162		)	748
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(28		)	(57		)	(55		)	1,219			(88		)	991
Total (provision) benefit for income taxes	—			17			54			(359		)	27			(261		)
Equity in net earnings of subsidiaries	758			636			395			32			(1,821		)	—
NET INCOME (LOSS)	730			596			394			892			(1,882		)	730
Less: noncontrolling interest	—			—			—			32			(32		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	730		$	596		$	394		$	860		$	(1,850	)	$	730

COMPREHENSIVE INCOME (LOSS)	$	897		$	754		$	482		$	1,084		$	(2,320	)	$	897

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	892		$	(28	)	$	864
Net investment income	—			—			—			412			(4		)	408
Net realized investment gains (losses)	—			2			—			(28		)	(3		)	(29		)
Net change in fair value of credit derivatives	—			—			—			98			—			98
Bargain purchase gain and settlement of pre-existing relationships	—			—			—			257			2			259
Other	—			—			—			78			(1		)	77
TOTAL REVENUES	—			2			—			1,709			(34		)	1,677
EXPENSES
Loss and LAE	—			—			—			296			(1		)	295
Amortization of deferred acquisition costs	—			—			—			30			(12		)	18
Interest expense	—			52			54			10			(14		)	102
Other operating expenses	29			2			2			217			(5		)	245
TOTAL EXPENSES	29			54			56			553			(32		)	660
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(29		)	(52		)	(56		)	1,156			(2		)	1,017
Total (provision) benefit for income taxes	—			18			20			(175		)	1			(136		)
Equity in net earnings of subsidiaries	910			794			274			44			(2,022		)	—
NET INCOME (LOSS)	881			760			238			1,025			(2,023		)	881
Less: noncontrolling interest	—			—			—			44			(44		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	881		$	760		$	238		$	981		$	(1,979	)	$	881

COMPREHENSIVE INCOME (LOSS)	$	793		$	685		$	144		$	953		$	(1,782	)	$	793

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	587		$	308		$	183		$	517		$	(1,133	)	$	462
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(104		)	(12		)	(1,865		)	100			(1,881		)
Sales	—			104			8			1,068			—			1,180
Maturities	—			28			—			934			—			962
Short-term investments with maturities of over three months:
Purchases	—			(34		)	—			(209		)	—			(243		)
Sales	—			22			—			1			—			23
Maturities	—			—			—			207			—			207
Net sales (purchases) of short-term investments with maturities of less than three months	(9		)	(50		)	7			(32		)	—			(84		)
Net proceeds from FG VIEs’ assets	—			—			—			116			—			116
Investment in subsidiaries	—			(9		)	(1		)	(1		)	11			—
Intercompany debt	—			—			—			10			(10		)	—
Return of capital from subsidiary	—			200			—			—			(200		)	—
Other	—			(15		)	—			32			—			17
Net cash flows provided by (used in) investing activities	(9		)	142			2			261			(99		)	297
Cash flows from financing activities
Capital contribution	—			—			—			11			(11		)	—
Dividends paid	(71		)	(472		)	(187		)	(474		)	1,133			(71		)
Repurchases of common stock	(500		)	—			—			(200		)	200			(500		)
Repurchases of common stock to pay withholding taxes	(13		)	—			—			—			—			(13		)
Net paydowns of FG VIEs’ liabilities	—			—			—			(116		)	—			(116		)
Paydown of long-term debt	—			—			—			(1		)	(100		)	(101		)
Proceeds from options exercises	6			—			—			—			—			6
Intercompany debt	—			(10		)	—			—			10			—
Net cash flows provided by (used in) financing activities	(578		)	(482		)	(187		)	(780		)	1,232			(795		)
Effect of exchange rate changes	—			—			—			(4		)	—			(4		)
Increase (decrease) in cash and restricted cash	—			(32		)	(2		)	(6		)	—			(40		)
Cash and restricted cash at beginning of period	—			33			2			109			—			144
Cash and restricted cash at end of period	$	—		$	1		$	—		$	103		$	—		$	104

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	579		$	442		$	158		$	477		$	(1,223	)	$	433
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(158		)	(17		)	(2,404		)	27			(2,552		)
Sales	—			112			21			1,568			—			1,701
Maturities	—			13			—			808			—			821
Short-term investments with maturities of over three months:
Purchases	—			(26		)	(5		)	(224		)	—			(255		)
Sales	—			1			5			96			—			102
Maturities	—			30			—			161			—			191
Net sales (purchases) of short-term investments with maturities of less than three months	—			126			(8		)	(82		)	—			36
Net proceeds from FG VIEs’ assets	—			—			—			147			—			147
Investment in subsidiaries	—			(28		)	—			(139		)	167			—
Intercompany debt	—			—			—			10			(10		)	—
Proceeds from sale of subsidiaries	—			—			—			139			(139		)	—
Return of capital from subsidiaries	—			—			101			70			(171		)	—
Acquisition of MBIA UK, net of cash acquired	—			—			—			95			—			95
Other	—			—			—			59			—			59
Net cash flows provided by (used in) investing activities	—			70			97			304			(126		)	345
Cash flows from financing activities																—
Return of capital	—			—			—			(70		)	70			—
Capital contribution	—			—			25			3			(28		)	—
Dividends paid	(70		)	(470		)	(278		)	(475		)	1,223			(70		)
Repurchases of common stock	(501		)	—			—			(101		)	101			(501		)
Repurchases of common stock to pay withholding taxes	(13		)	—			—			—			—			(13		)
Net paydowns of FG VIEs’ liabilities	—			—			—			(157		)	—			(157		)
Paydown of long-term debt	—			—			—			(3		)	(27		)	(30		)
Proceeds from options exercised	5			—			—			—			—			5
Intercompany debt	—			(10		)	—			—			10			—
Net cash flows provided by (used in) financing activities	(579		)	(480		)	(253		)	(803		)	1,349			(766		)
Effect of exchange rate changes	—			—			—			5			—			5
Increase (decrease) in cash and restricted cash	—			32			2			(17		)	—			17
Cash and restricted cash at beginning of period	—			1			—			126			—			127
Cash and restricted cash at end of period	$	—		$	33		$	2		$	109		$	—		$	144

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 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	$	391		$	533		$	213		$	72		$	(1,341	)	$	(132	)
Cash flows from investing activities
Fixed-maturity securities:
Purchases	(4		)	(143		)	(10		)	(1,489		)	—			(1,646		)
Sales	4			24			12			1,325			—			1,365
Maturities	—			30			—			1,125			—			1,155
Short-term investments with maturities of over three months:
Purchases	—			(19		)	(1		)	(170		)	—			(190		)
Sales	—			—			—			172			—			172
Maturities	—			14			1			119			—			134
Net sales (purchases) of short-term investments with maturities of less than three months	(26		)	(232		)	(10		)	169			—			(99		)
Net proceeds from FG VIEs’ assets	—			—			—			629			—			629
Intercompany debt	—			—			—			20			(20		)	—
Return of capital from subsidiaries	—			—			300			4			(304		)	—
Acquisition of CIFG, net of cash acquired	—			—			—			(442		)	7			(435		)
Other	—			7			—			(9		)	(7		)	(9		)
Net cash flows provided by (used in) investing activities	(26		)	(319		)	292			1,453			(324		)	1,076
Cash flows from financing activities
Return of capital	—			—			—			(4		)	4			—
Dividends paid	(69		)	(288		)	(513		)	(540		)	1,341			(69		)
Repurchases of common stock	(306		)	—			—			(300		)	300			(306		)
Repurchases of common stock to pay withholding taxes	(2		)	—			—			—			—			(2		)
Net paydowns of FG VIEs’ liabilities	—			—			—			(611		)	—			(611		)
Paydown of long-term debt	—			—			—			(2		)	—			(2		)
Proceeds from options exercised	12			—			—			—			—			12
Intercompany debt	—			(20		)	—			—			20			—
Net cash flows provided by (used in) financing activities	(365		)	(308		)	(513		)	(1,457		)	1,665			(978		)
Effect of exchange rate changes	—			—			—			(5		)	—			(5		)
Increase (decrease) in cash and restricted cash	—			(94		)	(8		)	63			—			(39		)
Cash and restricted cash at beginning of period	—			95			8			63			—			166
Cash and restricted cash at end of period	$	—		$	1		$	—		$	126		$	—		$	127