ASSURED GUARANTY LTD

The Company invests primarily in investment-grade fixed-maturity securities and short-term investments, as well as various alternative investments. Income from the Company’s investments is one of the primary sources of cash flow supporting its ability to make claim payments and bear other operational costs, as well as its capital management objectives. The Company’s principal objectives in managing its investment portfolio are to maintain sufficient liquidity to cover unexpected stress in the insurance portfolio; to maximize after tax book income; to manage investment risk within the context of the underlying portfolio of insurance risk; and to preserve the highest possible ratings for each Assured Guaranty subsidiary.

If the Company’s calculations with respect to its insurance subsidiaries’ liabilities are incorrect or other unanticipated payment obligations arise, or if the Company improperly structures its investments to meet these and other corporate liabilities, it could have unexpected losses, including losses resulting from forced liquidation of investments. The investment policies of the Company’s insurance subsidiaries are subject to insurance law requirements, and may change depending upon regulatory, economic, rating agency and market conditions and the existing or anticipated financial condition and operating requirements, including the tax position, of Assured Guaranty. The performance of invested assets is subject to the ability of the Company and its investment managers to select and manage appropriate investments.

As of December 31, 2025, the investment portfolio had a carrying value of $8.5 billion and consisted primarily of the following:

Fixed-maturity securities and short-term investments: As of December 31, 2025, $7.4 billion or 87% of the investment portfolio consisted of fixed-maturity securities and short-term investments. As of December 31, 2025, the majority (67%, or $5.7 billion) of the fixed-maturity securities and short-term investments was managed by Goldman Sachs Asset Management, L.P., Wellington Management Company, LLP, and MacKay Shields LLC. Each of these investment managers has discretionary authority over the portion of the investment portfolio it manages, within the limits of the investment guidelines approved by the Company’s Board of Directors (the Board or AGL’s Board). Each manager is compensated based upon a fixed percentage of the market value of the portion of the portfolio being managed by such manager. During 2025, Wellington Management Company LLP owned or managed funds that own more than 5% of AGL’s common shares. The available-for-sale fixed-maturity securities in the investment portfolio primarily consist of investment-grade obligations of state and political subdivisions, U.S. government and agencies, corporate securities, mortgage-backed and other asset-backed securities.

In addition, as of December 31, 2025, $228 million of the available-for-sale fixed-maturity securities were CLO equity tranches, $168 million were bonds issued by a U.K. regulated utility to which the Company has insured exposure, and $140 million (based on fair value) were securities insured by the Company with expected losses that it subsequently purchased in order to mitigate the economic effect of such insured expected losses (Loss Mitigation Securities). The Company considers CLO equity tranches to be a component of its alternative investment strategy.

The Company also had $114 million (based on fair value) of Contingent Value Instruments (CVIs), obtained as part of the resolution of the Company’s exposure to insured Puerto Rico credits experiencing payment default other than the Puerto Rico Electric Power Authority (PREPA), all of which were classified as trading securities. See Part II, Item 8. Financial Statements and Supplementary Data, Note 7. Investments and Cash.

Other invested assets and consolidated investment vehicles (CIVs): As of December 31, 2025, the carrying value of the Company’s ownership interest in Sound Point was $415 million and is reported in “other invested assets” on the consolidated balance sheets.

The Company also has alternative investments in a variety of investment strategies and asset classes offered by Sound Point as described above in “ —Asset Management Strategies,” as well as alternative investments managed by AHP and other parties. As of December 31, 2025, the Company’s other invested assets primarily consisted of funds focused on private healthcare investing, asset-based/specialty finance, CLOs and commercial real estate finance. As of December 31, 2025, one

Sound Point managed fund was consolidated and classified as a CIV. The Company’s interest in that CIV based on net-asset-value was $57 million.

See Part II, Item 8. Financial Statements and Supplementary Data, Note 8. Variable Interest Entities, for information on the CIVs.