ASSURED GUARANTY LTD
For the period ended Sep 30, 2024. Filed Nov 12, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 12, 2024
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Insured Portfolio
Financial Guaranty Exposure
The following tables present information in respect of the financial guaranty insured portfolio to supplement the disclosures and discussion provided in Item 1, Financial Statements, Note 3, Outstanding Exposure.
The following table presents the financial guaranty portfolio by sector, net of cessions to reinsurers. It includes all financial guaranty contracts outstanding as of the dates presented, regardless of the form written (i.e., credit derivative form or traditional financial guaranty insurance form) or the applicable accounting model (i.e., insurance, derivative or FG VIE).
Net Par Outstanding by Sector
| As of September 30, 2024 | As of December 31, 2023 | |
|---|---|---|
| Sector · (dollars in millions) | ||
| Public finance: | ||
| U.S. public finance: | ||
| General obligation | $76,349 | $74,609 |
| Tax backed | 33,297 | 33,060 |
| Municipal utilities | 28,996 | 29,300 |
| Transportation | 25,312 | 22,052 |
| Healthcare | 13,081 | 12,604 |
| Infrastructure finance | 8,687 | 8,796 |
| Higher education | 7,405 | 7,250 |
| Housing revenue | 1,278 | 1,152 |
| Investor-owned utilities | 325 | 329 |
| Renewable energy | 167 | 167 |
| Other public finance | 940 | 970 |
| Total U.S. public finance | 195,837 | 190,289 |
| Non-U.S public finance: | ||
| Regulated utilities | 23,474 | 20,545 |
| Infrastructure finance | 15,800 | 15,430 |
| Sovereign and sub-sovereign | 9,889 | 9,869 |
| Renewable energy | 1,739 | 2,030 |
| Pooled infrastructure | 1,181 | 1,133 |
| Total non-U.S. public finance | 52,083 | 49,007 |
| Total public finance | 247,920 | 239,296 |
| Structured finance: | ||
| U.S. structured finance: | ||
| Insurance securitizations | 4,665 | 4,379 |
| RMBS | 1,546 | 1,774 |
| Pooled corporate obligations | 689 | 631 |
| Financial products | 478 | 464 |
| Subscription finance facilities | 241 | 178 |
| Consumer receivables | 233 | 314 |
| Other structured finance | 865 | 892 |
| Total U.S. structured finance | 8,717 | 8,632 |
| Non-U.S. structured finance: | ||
| Subscription finance facilities | 767 | 444 |
| Pooled corporate obligations | 452 | 425 |
| RMBS | 243 | 252 |
| Other structured finance | 97 | 104 |
| Total non-U.S. structured finance | 1,559 | 1,225 |
| Total structured finance | 10,276 | 9,857 |
| Total net par outstanding | $258,196 | $249,153 |
Exposure to Puerto Rico
The following tables present information in respect of the Puerto Rico exposures to supplement the disclosures and discussions provided in “—Liquidity and Capital Resources—Insurance Subsidiaries, Financial Guaranty Policies” below and Item 1, Financial Statements, Note 3, Outstanding Exposure.
Exposure to Puerto Rico by Company
| Net Par Outstanding | ||||
|---|---|---|---|---|
| AG | AG Re | Total Net Par Outstanding | Gross Par Outstanding | |
| (in millions) | ||||
| Defaulted Puerto Rico Exposures | ||||
| PREPA | $377 | $154 | $531 | $539 |
| Total Defaulted | 377 | 154 | 531 | 539 |
| Resolved Puerto Rico Exposures (1) | ||||
| Puerto Rico Highways and Transportation Authority (PRHTA) (Transportation revenue) | 130 | 74 | 204 | 204 |
| PRHTA (Highway revenue) | 23 | 1 | 24 | 24 |
| Total Resolved | 153 | 75 | 228 | 228 |
| Non-Defaulting Puerto Rico Exposures (2) | ||||
| Municipal Finance Agency (MFA) | 76 | 15 | 91 | 97 |
| University of Puerto Rico (U of PR) | 1 | — | 1 | 1 |
| Total Non-Defaulting | 77 | 15 | 92 | 98 |
| Total exposure to Puerto Rico | $607 | $244 | $851 | $865 |
(1) Resolved pursuant to the 2022 Puerto Rico Resolutions. See Item 1, Financial Statements, Note 8, Financial Guaranty Variable Interest Entities and Consolidated Investment Vehicles.
(2) All debt service on these insured exposures have been paid to date without any insurance claim being made on the Company.
The following tables show the scheduled amortization of the various obligations of Puerto Rico’s authorities and public corporations insured by the Company. The Company guarantees payments of debt service when those amounts are scheduled to be paid and cannot be required to pay on an accelerated basis. In the event that obligors default on their obligations, the Company would only pay the shortfall between the debt service due in any given period and the amount paid by the obligors.
Amortization Schedule of Net Par of Puerto Rico
| Scheduled Net Par Amortization | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 (4Q) | 2025 (1Q) | 2025 (2Q) | 2025 (3Q) | 2025 (4Q) | 2026 | 2027 | 2028 | 2029 - 2033 | 2034 - 2038 | 2039 - 2041 | Total | |||||||
| (in millions) | ||||||||||||||||||
| Defaulted Puerto Rico Exposures | ||||||||||||||||||
| PREPA | $— | $— | $— | $68 | $— | $105 | $105 | $68 | $176 | $9 | $— | $531 | ||||||
| Total Defaulted | — | — | — | 68 | — | 105 | 105 | 68 | 176 | 9 | — | 531 | ||||||
| Resolved Puerto Rico Exposures | ||||||||||||||||||
| PRHTA (Transportation revenue) | — | — | — | — | — | — | — | — | — | 107 | 97 | 204 | ||||||
| PRHTA (Highway revenue) | — | — | — | — | — | — | — | — | 8 | 16 | — | 24 | ||||||
| Total Resolved | — | — | — | — | — | — | — | — | 8 | 123 | 97 | 228 | ||||||
| Non-Defaulting Puerto Rico Exposures | ||||||||||||||||||
| MFA | — | — | — | 16 | — | 35 | 15 | 13 | 12 | — | — | 91 | ||||||
| U of PR | — | — | — | — | — | — | — | — | 1 | — | — | 1 | ||||||
| Total Non-Defaulting | — | — | — | 16 | — | 35 | 15 | 13 | 13 | — | — | 92 | ||||||
| Total | $— | $— | $— | $84 | $— | $140 | $120 | $81 | $197 | $132 | $97 | $851 | ||||||
Amortization Schedule of Net Debt Service of Puerto Rico
| Scheduled Net Debt Service Amortization | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 (4Q) | 2025 (1Q) | 2025 (2Q) | 2025 (3Q) | 2025 (4Q) | 2026 | 2027 | 2028 | 2029 - 2033 | 2034 - 2038 | 2039 - 2041 | Total | |||||||
| (in millions) | ||||||||||||||||||
| Defaulted Puerto Rico Exposures | ||||||||||||||||||
| PREPA | $3 | $10 | $2 | $78 | $2 | $126 | $122 | $80 | $200 | $9 | $— | $632 | ||||||
| Total Defaulted | 3 | 10 | 2 | 78 | 2 | 126 | 122 | 80 | 200 | 9 | — | 632 | ||||||
| Resolved Puerto Rico Exposures | ||||||||||||||||||
| PRHTA (Transportation revenue) | — | 5 | — | 6 | — | 11 | 11 | 11 | 53 | 143 | 106 | 346 | ||||||
| PRHTA (Highway revenue) | — | 1 | — | — | — | 1 | 1 | 1 | 15 | 18 | — | 37 | ||||||
| Total Resolved | — | 6 | — | 6 | — | 12 | 12 | 12 | 68 | 161 | 106 | 383 | ||||||
| Non-Defaulting Puerto Rico Exposures | ||||||||||||||||||
| MFA | — | 2 | — | 18 | — | 39 | 17 | 14 | 13 | — | — | 103 | ||||||
| U of PR | — | — | — | — | — | — | — | — | 1 | — | — | 1 | ||||||
| Total Non-Defaulting | — | 2 | — | 18 | — | 39 | 17 | 14 | 14 | — | — | 104 | ||||||
| Total | $3 | $18 | $2 | $102 | $2 | $177 | $151 | $106 | $282 | $170 | $106 | $1,119 | ||||||
The remaining amounts owed for insured PRHTA bonds are payable in full by the Company’s insurance subsidiaries under their financial guaranty policies and are no longer dependent on the credit of PRHTA.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.