ASSURED GUARANTY LTD
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Nov 6, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Annuity Reinsurance Segment Results
Annuity Reinsurance Segment Results
| Third Quarter | Nine Months | |
|---|---|---|
| 2026 | 2026 | |
| (in millions) | ||
| Segment revenues: | ||
| Net investment income (1) | $10 | $26 |
| Fair value gains (losses) on derivatives (2) | 5 | 14 |
| Other income (loss) | 1 | 1 |
| Total segment revenues | 16 | 41 |
| Segment expenses: | ||
| Benefit expense for annuity reinsurance contracts (3) | 10 | 25 |
| Employee compensation and benefit expenses | 3 | 8 |
| Other operating expenses | 2 | 6 |
| Total segment expenses | 15 | 39 |
| Segment adjusted operating income (loss) before income taxes | 1 | 2 |
| Less: Provision (benefit) for income taxes | — | (1) |
| Segment adjusted operating income (loss) | $1 | $3 |
(1) Represents primarily net investment income on assets supporting the PRT contract.
(2) Represents the change in the fair value of the embedded derivative in funds withheld, excluding realized and unrealized gains (losses) on the underlying investments of the funds withheld account supporting Assured Life Re’s MYGA contract.
(3) Benefit expense for annuity reinsurance contracts for third quarter 2026 and nine months 2026 includes $6 million and $15 million related to PRT benefit expense, respectively, and $4 million and $10 million related to MYGA interest expense, respectively.
On January 21, 2026, the Company entered the annuity reinsurance market through the acquisition of Warwick. See “— Overview — Key Business Strategies — Annuity Reinsurance.”
Assured Life Re reinsures a block of PRT business, with reserves of $459 million, supported by a $569 million asset portfolio that consists primarily of U.S. and U.K. corporate and government bonds, including a portfolio of inflation-linked bonds. The asset portfolio also includes derivatives that economically hedge currency, inflation and interest rate mismatches between the PRT liabilities, which are long-dated inflation-linked pound sterling-denominated obligations, and the investment portfolio, which includes certain U.S. dollar denominated and non-inflation linked securities. See “— Reconciliation to GAAP.”
Assured Life Re also reinsures a block of MYGA business with a policyholder account value of $248 million, assumed under a funds withheld coinsurance arrangement, for which the Company reports a funds withheld receivable of $267 million. Assets within the funds withheld account primarily consist of mortgage and other asset-backed securities.
The Company also maintains $21 million of fixed-maturity securities for Assured Life Re’s own account. See Item 1. Financial Statements, Note 7. Annuity Reinsurance.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.