Subsidiary Information (Tables)

3 Months Ended

Mar. 31, 2019

Condensed Financial Information Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF MARCH 31, 2019

(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	$	43	$	362	$	44	$	10,880	$	(429	)	$	10,900
Investment in subsidiaries	6,570		5,923		4,080		231		(16,804		)	—
Premiums receivable, net of commissions payable	—		—		—		1,059		(162		)	897
Deferred acquisition costs	—		—		—		141		(37		)	104
Intercompany loan receivable	—		—		—		50		(50		)	—
FG VIEs’ assets, at fair value	—		—		—		560		—			560
Dividends receivable from affiliate	58		—		—		—		(58		)	—
Other	20		91		27		2,587		(1,635		)	1,090
Total assets	$	6,691	$	6,376	$	4,151	$	15,508	$	(19,175	)	$	13,551
Liabilities and shareholders' equity
Unearned premium reserves	$	—	$	—	$	—	$	4,358	$	(921	)	$	3,437
Loss and LAE reserve	—		—		—		1,312		(280		)	1,032
Long-term debt	—		844		470		5		(87		)	1,232
Intercompany loan payable	—		50		—		300		(350		)	—
Credit derivative liabilities	—		—		—		260		(31		)	229
FG VIEs’ liabilities, at fair value	—		—		—		609		—			609
Dividends payable to affiliate	—		58		—		—		(58		)	—
Other	22		83		73		750		(585		)	343
Total liabilities	22		1,035		543		7,594		(2,312		)	6,882
Total shareholders' equity attributable to Assured Guaranty Ltd.	6,669		5,341		3,608		7,683		(16,632		)	6,669
Noncontrolling interest	—		—		—		231		(231		)	—
Total shareholders' equity	6,669		5,341		3,608		7,914		(16,863		)	6,669
Total liabilities and shareholders' equity	$	6,691	$	6,376	$	4,151	$	15,508	$	(19,175	)	$	13,551

____________________


(1)	The fair value of the AGMH debt purchased by AGUS, and recorded in the AGUS investment portfolio, was $129 million. See Note 13, Long-Term Debt and Credit Facilities for more information.

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
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		2,437		(1,576		)	980
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 the AGMH debt purchased by AGUS, and recorded in the AGUS investment portfolio, was $125 million. See Note 13, 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 THREE MONTHS ENDED MARCH 31, 2019

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
Revenues
Net earned premiums	$	—		$	—		$	—		$	121		$	(3	)	$	118
Net investment income	—			2			—			101			(5		)	98
Net realized investment gains (losses)	—			—			—			(12		)	—			(12		)
Net change in fair value of credit derivatives	—			—			—			(22		)	—			(22		)
Other	2			—			—			66			(55		)	13
Total revenues	2			2			—			254			(63		)	195
Expenses
Loss and LAE	—			—			—			47			(1		)	46
Amortization of deferred acquisition costs	—			—			—			7			(1		)	6
Interest expense	—			12			13			4			(6		)	23
Other operating expenses	10			1			—			107			(54		)	64
Total expenses	10			13			13			165			(62		)	139
Equity in net earnings of investees	—			1			—			1			—			2
Income (loss) before income taxes and equity in net earnings of subsidiaries	(8		)	(10		)	(13		)	90			(1		)	58
Total (provision) benefit for income taxes	—			2			3			(9		)	—			(4		)
Equity in net earnings of subsidiaries	62			50			68			4			(184		)	—
Net income (loss)	$	54		$	42		$	58		$	85		$	(185	)	$	54
Less: noncontrolling interest	—			—			—			4			(4		)	—
Net income (loss) attributable to Assured Guaranty Ltd.	$	54		$	42		$	58		$	81		$	(181	)	$	54

Comprehensive income (loss)	$	222		$	170		$	152		$	254		$	(576	)	$	222

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	—			2			—			101			(3		)	100
Net realized investment gains (losses)	—			—			—			(5		)	—			(5		)
Net change in fair value of credit derivatives	—			—			—			34			—			34
Other	3			—			—			74			(58		)	19
Total revenues	3			2			—			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			—			105			(53		)	65
Total expenses	10			15			13			98			(60		)	76
Equity in net earnings of investees	—			—			—			—			—			—
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 Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2019

(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	$	112		$	87		$	68		$	(334	)	$	(265	)	$	(332	)
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(3		)	—			(196		)	3			(196		)
Sales	—			—			—			471			—			471
Maturities	—			—			1			176			—			177
Short-term investments with maturities of over three months:
Purchases	—			—			—			(107		)	—			(107		)
Sales	—			—			—			2			—			2
Maturities	—			8			—			59			—			67
Net sales (purchases) of short-term investments with maturities of less than three months	2			(33		)	(20		)	76			—			25
Net proceeds from FG VIEs’ assets	—			—			—			26			—			26
Other	—			—			—			27			—			27
Net cash flows provided by (used in) investing activities	2			(28		)	(19		)	534			3			492
Cash flows from financing activities
Dividends paid	(20		)	(60		)	(47		)	(158		)	265			(20		)
Repurchases of common stock	(80		)	—			—			—			—			(80		)
Repurchases of common stock to pay withholding taxes	(15		)	—			—			—			—			(15		)
Net paydowns of FG VIEs’ liabilities	—			—			—			(25		)	—			(25		)
Paydown of long-term debt	—			—			—			—			(3		)	(3		)
Proceeds from options exercises	1			—			—			—			—			1
Net cash flows provided by (used in) financing activities	(114		)	(60		)	(47		)	(183		)	262			(142		)
Effect of exchange rate changes	—			—			—			1			—			1
Increase (decrease) in cash and restricted cash	—			(1		)	2			18			—			19
Cash and restricted cash at beginning of period	—			1			—			103			—			104
Cash and restricted cash at end of period	$	—		$	—		$	2		$	121		$	—		$	123

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	—			—			—			225			—			225
Short-term investments with maturities of over three months:
Purchases	—			—			—			(47		)	—			(47		)
Sales	—			—			—			—			—			—
Maturities	—			—			—			45			—			45
Net sales (purchases) of short-term investments with maturities of less than three months	1			(217		)	(4		)	106			—			(114		)
Net proceeds from FG VIEs’ assets	—			—			—			33			—			33
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
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 FG VIEs’ liabilities	—			—			—			(33		)	—			(33		)
Paydown of long-term debt	—			—			—			—			(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	—			(32		)	(1		)	6			—			(27		)
Cash and restricted cash at beginning of period	—			33			2			109			—			144
Cash and restricted cash at end of period	$	—		$	1		$	1		$	115		$	—		$	117