ASSURED GUARANTY LTD

10. Asset Management Fees

All management, CLO and performance fees earned by the Company are accounted for as contracts with customers. The Company recognizes revenue when the contractual performance criteria are met and only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. Performance fee contractual provisions are evaluated on an individual basis to determine the timing of revenue recognition.

Asset Management Fees

Prior to the Sound Point Transaction and AHP Transaction, the Company received management fees, as well as performance fees, incentive allocations or carried interest (collectively referred to as performance fees) in exchange for AssuredIM providing investment advisory services to manage investment funds and CLOs. After the Sound Point Transaction and AHP Transaction, the Company continues to consolidate the general partner of a fund that Sound Point now manages and reports any performance fees in “other income.”

Asset management fees associated with the AssuredIM consolidated business for the first half of 2023, prior to the Sound Point Transaction and AHP Transaction, were $53 million, consisting of management fees of $21 million, performance fees of $18 million and reimbursable fund expenses of $14 million.

After the consummation of the Sound Point Transaction, one AssuredIM general partnership was still consolidated in the Company’s financial statements, which had $29 million of revenues and $17 million of expenses in 2025, $10 million of revenues and $6 million of expenses in 2024, and $5 million of revenues and $3 million of expenses in 2023.