Assured Guaranty Ltd.

Selected Financial Highlights

(dollars in millions, except per share amounts)

	Quarter Ended						% Change		Year Ended						% Change
	December 31,						versus		December 31,						versus
	2008			2007			4Q-07		2008			2007			2007
Gross written premiums (GWP) analysis:

Present value of insurance and credit derivative GWP (PVP) (a)	$	128.1		$	477.0		(73	)%	$	823.0		$	874.6		(6	)%
Less: PVP of credit derivatives	57.6			81.8			(30	)%	204.5			252.2			(19	)%
PVP of financial guaranty GWP	70.5			395.2			(82	)%	618.5			622.4			(1	)%
Less: Financial guaranty installment premium PVP	10.6			195.1			(95	)%	96.5			292.8			(67	)%
Total: Financial guaranty upfront GWP	59.9			200.1			(70	)%	522.0			329.6			58	%
Plus: Upfront premium due to commutation	—			—			NM		(20.8		)	—			NM
Plus: Financial guaranty installment GWP	24.0			29.2			(18	)%	112.8			88.6			27	%
Total financial guaranty GWP	83.9			229.3			(63	)%	614.0			418.2			47	%
Plus: Mortgage guaranty segment GWP	—			(0.2		)	NM		0.7			2.7			(74	)%
Plus: Other segment GWP	—			—			NM		3.5			3.5			0	%
Total GWP per income statement	$	83.9		$	229.1		(63	)%	$	618.3		$	424.5		46	%

Net (loss) income	$	(243.8	)	$	(260.1	)	(6	)%	$	68.9		$	(303.3	)	NM
Less: After-tax realized (losses) gains on investments	(46.8		)	0.4			NM		(62.7		)	(1.3		)	NM
Less: After-tax unrealized (losses) gains on credit derivatives (1)	(220.2		)	(297.9		)	(26	)%	23.7			(482.5		)	NM
Plus: After-tax incurred losses on credit derivatives (2)	(19.8		)	(0.4		)	NM		(33.4		)	(2.5		)	NM
Operating income (b)	$	3.5		$	37.0		(91	)%	$	74.5		$	178.0		(58	)%

Book value	$	1,926.2		$	1,666.6		16	%
Plus: Net unearned premium reserve, after tax (3)	1,033.4			779.7			33	%
Plus: Net unearned revenue on credit derivatives, after tax (4)	17.6			11.5			53	%
Plus: Net present value of estimated future installment premiums in-force, after tax (d)	708.3			719.8			(2	)%
Less: Deferred acquisition costs (DAC), after tax	261.6			231.0			13	%
Adjusted book value (c)	$	3,423.9		$	2,946.5		16	%

ROE, excluding AOCI	(47.7		)%	(65.4		)%			3.9		%	(18.8		)%
Operating ROE, excluding AOCI and after-tax unrealized (losses) gains on credit derivatives (b)	0.6		%	7.8		%			3.4		%	9.8		%

Per diluted share:
Net (loss) income	$	(2.68	)	$	(3.77	)	(29	)%	$	0.77		$	(4.46	)	NM
Less: After-tax realized (losses) gains on investments	(0.51		)	0.01			NM		(0.70		)	(0.02		)	NM
Less: After-tax unrealized (losses) gains on credit derivatives (1)	(2.42		)	(4.32		)	(44	)%	0.27			(7.09		)	NM
Plus: After-tax incurred losses on credit derivatives (2)	(0.22		)	(0.01		)	NM		(0.38		)	(0.04		)	NM
Operating income (b)	$	0.04		$	0.53		(92	)%	$	0.84		$	2.57		(67	)%

Book value	$	21.18		$	20.85		2	%
Plus: Net unearned premium reserve, after tax (3)	11.36			9.75			17	%
Plus: Net unearned revenue on credit derivatives, after tax (4)	0.19			0.14			36	%
Plus: Net present value of estimated future installment premiums in-force, after tax (d)	7.79			9.00			(13	)%
Less: DAC, after tax	2.87			2.89			(1	)%
Adjusted book value (c)	$	37.65		$	36.85		2	%

Book value, excluding AOCI and net unrealized mark-to-market gains (losses) on credit derivatives(5)	$	25.43		$	25.72		(1	)%
Adjusted book value, excluding AOCI and net unrealized mark-to-market gains (losses) on credit derivatives(5)	$	41.91		$	41.73		0	%

Consolidated net debt service outstanding	$	348,816		$	302,413		15	%
Consolidated net par outstanding	222,722			200,279			11	%
Consolidated claims-paying resources	4,962			4,440			12	%
Gross par written	7,281			49,186			(85	)%	56,140			88,117			(36	)%

(1) The quarter and year ended December 31, 2008 included a fair value after-tax gain of $12.0 million, or $0.13 per diluted share, and $27.8 million, or $0.31 per diluted share, respectively, related to Assured Guaranty Corp.’s committed capital securities. Both the quarter and year ended December 31, 2007 included a fair value after-tax gain of $5.4 million, or $0.08 per diluted share, related to Assured Guaranty Corp.’s committed capital securities.

(2) Company’s estimate of incurred losses included in the mark to market unrealized loss on credit derivatives.

(3) Unearned premium reserve (UPR) less pre-paid reinsurance premiums, after tax.

(4) Unearned revenue less pre-paid reinsurance premiums on credit derivatives, after tax.

(5) Represents a fair value component of the Company’s credit derivative contracts, which are included in credit derivative asset or liability line on the balance sheet, and committed capital securities.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a), operating income and operating ROE (b), adjusted book value (c), and net present value of estimated future installment premiums in force (d)].

NM = Not meaningful

Table of Contents

Assured Guaranty Ltd.

Consolidated Income Statements

(dollars and shares in millions, except per share amounts)

	Quarter Ended						% Change		Year Ended						% Change
	December 31,						versus		December 31,						versus
	2008			2007			4Q-07		2008			2007			2007

Revenues
Gross written premiums	$	83.9		$	229.1		(63	)%	$	618.3		$	424.5		46	%

Net written premiums	82.7			227.7			(64	)%	604.6			408.0			48	%

Net earned premiums	77.4			45.6			70	%	261.4			159.3			64	%
Net investment income	42.3			33.9			25	%	162.6			128.1			27	%
Realized gains and other settlements on credit derivatives	28.2			21.9			29	%	117.6			74.0			59	%
Incurred losses on credit derivatives	(24.8		)	(0.5		)	NM		(43.7		)	(3.6		)	NM
Other income	0.2			0.1			100	%	0.7			0.5			40	%
Total revenues	123.3			101.0			22	%	498.6			358.3			39	%

Expenses
Loss and loss adjustment expenses (recoveries)	90.0			17.6			NM		265.8			5.8			NM
Profit commission expense	0.6			2.9			(79	)%	1.3			6.5			(80	)%
Acquisition costs	18.2			11.0			65	%	61.2			43.2			42	%
Other operating expenses	13.6			20.5			(34	)%	83.5			79.9			5	%
Interest and related expenses	7.6			6.6			15	%	29.0			26.2			11	%
Total expenses	129.9			58.5			122	%	440.9			161.4			173	%

Operating income before (benefit) provision for income taxes	(6.6		)	42.4			NM		57.7			196.9			(71	)%

Total (benefit) provision for income taxes	(10.1		)	5.4			NM		(16.8		)	18.9			NM

Operating income (b)	3.5			37.0			(91	)%	74.5			178.0			(58	)%

Plus: After-tax realized (losses) gains on investments	(46.8		)	0.4			NM		(62.7		)	(1.3		)	NM
Plus: After-tax unrealized (losses) gains on credit derivatives (1)	(200.5		)	(297.5		)	(33	)%	57.1			(480.0		)	NM

Net (loss) income	$	(243.8	)	$	(260.1	)	(6	)%	$	68.9		$	(303.3	)	NM

Per diluted share
Operating income (b)	$	0.04		$	0.53		(92	)%	$	0.84		$	2.57		(67	)%
Plus: After-tax realized (losses) gains on investments	(0.51		)	0.01			NM		(0.70		)	(0.02		)	NM
Plus: After-tax unrealized (losses) gains on credit derivatives (1)	(2.20		)	(4.31		)	(49	)%	0.64			(7.06		)	NM
Net (loss) income	$	(2.68	)	$	(3.77	)	(29	)%	$	0.77		$	(4.46	)	NM

Effect of refundings
Earned premiums from refundings	$	25.8		$	1.7		NM		$	61.9		$	17.6		NM
Operating income effect	15.3			0.8			NM		38.1			9.1			NM
Operating income per diluted share effect	$	0.17		$	0.01		NM		$	0.43		$	0.13		NM

Weighted average shares outstanding
Basic shares outstanding	91.0			69.0			32	%	88.0			68.0			29	%
Plus: effect of options	—			—			NM		0.2			—			NM
Plus: effect of restricted stock awards and units	—			—			NM		0.7			—			NM
Diluted shares outstanding - GAAP (2)	91.0			69.0			32	%	88.9			68.0			31	%
Plus: effect of options	—			0.5			(100	)%	—			0.6			NM
Plus: effect of restricted stock awards and units	0.6			0.7			(14	)%	—			0.6			NM
Diluted shares outstanding - non-GAAP (2)	91.6			70.1			31	%	88.9			69.3			28	%

Shares outstanding at the end of period	91.0			79.9			14	%

(2) The calculations for weighted average diluted shares outstanding and weighted average basic shares outstanding for GAAP are the same due to the antidilutive effect of options and restricted stock awards and units as a result of the net loss for the quarters ended December 31, 2008 and 2007 and the year ended December 31, 2007. However, net income for full year 2008 and operating income, a non-GAAP financial measure, for both periods is positive, therefore the calculation of weighted diluted shares outstanding for operating income includes the dilutive effect of options and restricted stock awards and units.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [operating income (b)].

NM = Not meaningful

Table of Contents

Assured Guaranty Ltd.

Consolidated Balance Sheets

(dollars in millions)

	As of :
	December 31,		December 31,
	2008		2007

Assets
Fixed maturity securities, at fair value	$	3,154.1	$	2,587.0
Short-term investments, at cost which approximates fair value	477.2		552.9
Total investments	3,631.3		3,139.9

Cash and cash equivalents	12.3		8.0
Accrued investment income	32.8		26.5
Deferred acquisition costs	288.6		259.3
Prepaid reinsurance premiums	18.9		13.5
Reinsurance recoverable on ceded losses	6.5		8.8
Premiums receivable	15.7		27.8
Goodwill	85.4		85.4
Credit derivative assets	147.0		5.5
Deferred tax asset	129.1		147.6
Current income taxes receivable	21.4		—
Salvage recoverable	80.2		8.5
Committed capital securities, at fair value	51.1		8.3
Other assets	35.3		23.7
Total assets	$	4,555.7	$	3,762.9

Liabilities and shareholders’ equity
Liabilities
Unearned premium reserves	$	1,233.7	$	887.2
Reserves for losses and loss adjustment expenses	196.8		125.6
Profit commissions payable	8.6		22.3
Reinsurance balances payable	18.0		3.3
Current income taxes payable	—		0.6
Funds held by Company under reinsurance contracts	30.7		25.4
Credit derivative liabilities	733.8		623.1
Senior notes	197.4		197.4
Series A Enhanced Junior Subordinated Debentures	149.8		149.7
Other liabilities	60.8		61.8
Total liabilities	2,629.5		2,096.4

Shareholders’ equity
Common stock	0.9		0.8
Additional paid-in capital	1,284.4		1,023.9
Retained earnings	638.1		585.3
Accumulated other comprehensive income	2.9		56.6
Total shareholders’ equity	1,926.2		1,666.6

Total liabilities and shareholders’ equity	$	4,555.7	$	3,762.9

Table of Contents

Assured Guaranty Ltd.

Segment Consolidation (page 1 of 2)

(dollars in millions)

	Quarter Ended December 31, 2008
	Financial			Financial						Total
	Guaranty			Guaranty			Mortgage			Financial
	Direct			Reinsurance(1)			Guaranty			Guaranty			Other		Total
PVP(a):
U.S. public finance	$	57.4		$	6.2		$	—		$	63.6				$	63.6
U.S. structured finance	49.8			—			—			49.8					49.8
International	14.7			—			—			14.7					14.7
Total PVP	$	121.9		$	6.2		$	—		$	128.1				$	128.1

Income statement:
Gross written premiums	$	69.1		$	14.7		$	—		$	83.9		$	—	$	83.9
Net written premiums	67.9			14.7			—			82.7			—		82.7

Net earned premiums	25.0			51.1			1.3			77.4			—		77.4
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	26.8			1.5			—			28.3			—		28.3
Net credit derivative recoveries (losses)	—			—			—			—			—		—
Ceding commissions income (expense), net	0.3			(0.4		)	—			(0.1		)	—		(0.1		)
Total realized gains and other settlements on credit derivatives	27.1			1.1			—			28.2			—		28.2

Total revenues	52.1			52.2			1.3			105.6			—		105.6

Loss and loss adjustment expenses (recoveries)	66.7			22.4			0.9			90.0			—		90.0
Incurred losses on credit derivatives	19.5			5.4			—			24.8			—		24.8
Total loss and loss adjustment expenses (recoveries)	86.2			27.8			0.9			114.8			—		114.8
Profit commission expense	—			0.5			0.1			0.6			—		0.6
Acquisition costs	3.9			14.2			0.2			18.2			—		18.2
Operating expenses	9.6			3.7			0.3			13.6			—		13.6
Total underwriting expenses	$	99.7		$	46.1		$	1.4		$	147.3		$	—	$	147.3

Underwriting (loss) gain	$	(47.6	)	$	6.1		$	(0.1	)	$	(41.7	)	$	—	$	(41.7	)

Loss and loss adjustment expense ratio (e)	166.4		%	52.8		%	69.2		%	108.6		%			108.6		%
Expense ratio (e)	25.6		%	35.6		%	41.5		%	30.8		%			30.8		%
Combined ratio (e)	192.0		%	88.4		%	110.7		%	139.4		%			139.4		%

	Quarter Ended December 31, 2007
	Financial			Financial						Total
	Guaranty			Guaranty			Mortgage			Financial
	Direct			Reinsurance(1)			Guaranty			Guaranty			Other		Total
PVP:
U.S. public finance	$	25.6		$	272.7		$	—		$	298.3				$	298.3
U.S. structured finance	92.3			22.9			—			115.2					115.2
International	38.5			25.0			—			63.5					63.5
Total PVP	$	156.4		$	320.7		$	—		$	477.0				$	477.0

Income statement:
Gross written premiums	$	46.3		$	183.0		$	(0.2	)	$	229.1		$	—	$	229.1
Net written premiums	44.9			183.0			(0.2		)	227.7			—		227.7

Net earned premiums	14.7			21.7			9.2			45.6			—		45.6
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	22.0			—			—			22.0			—		22.0
Net credit derivative recoveries (losses)	0.0			—			—			0.0			—		0.0
Ceding commissions income (expense), net	(0.2		)	—			—			(0.2		)	—		(0.2		)
Total realized gains and other settlements on credit derivatives	21.9			—			—			21.9			—		21.9

Total revenues	36.5			21.7			9.2			67.5			—		67.5

Loss and loss adjustment expenses (recoveries)	22.8			(4.8		)	(0.4		)	17.6			—		17.6
Incurred losses on credit derivatives	0.5			—			—			0.5			—		0.5
Total loss and loss adjustment expenses (recoveries)	23.3			(4.8		)	(0.4		)	18.1			—		18.1
Profit commission expense	—			0.5			2.4			2.9			—		2.9
Acquisition costs	2.4			7.3			1.2			11.0			—		11.0
Operating expenses	14.9			4.5			1.0			20.5			—		20.5
Total underwriting expenses	$	40.7		$	7.5		$	4.2		$	52.4		$	—	$	52.4

Underwriting gain	$	(4.2	)	$	14.2		$	5.0		$	15.0		$	—	$	15.0

Loss and loss adjustment expense ratio (e)	63.5		%	(22.3		)%	(4.3		)%	26.7		%			26.7		%
Expense ratio (e)	47.9		%	56.7		%	50.3		%	51.1		%			51.1		%
Combined ratio (e)	111.5		%	34.4		%	46.0		%	77.8		%			77.8		%

(1) Due to the timing of receiving reports prepared by Assured’s ceding companies, PVP for installment premiums, par written and par outstanding on treaty business in the Company’s Financial Guaranty Reinsurance segment are reported on a one-quarter lag.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

Table of Contents

Assured Guaranty Ltd.

Segment Consolidation (2 of 2)

(dollars in millions)

	Year Ended December 31, 2008
	Financial			Financial						Total
	Guaranty			Guaranty			Mortgage			Financial
	Direct			Reinsurance(1)			Guaranty			Guaranty			Other			Total
PVP(a):
U.S. public finance	$	431.6		$	92.3		$	—		$	523.9					$	523.9
U.S. structured finance	187.6			7.2			—			194.7						194.7
International	81.5			22.8			—			104.3						104.3
Total PVP	$	700.7		$	122.3		$	—		$	823.0					$	823.0

Income statement:
Gross written premiums	$	484.7		$	129.3		$	0.7		$	614.7		$	3.5		$	618.3
Net written premiums	474.7			129.1			0.7			604.6			—			604.6

Net earned premiums	90.0			165.9			5.7			261.4			—			261.4
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	113.2			4.9			—			118.1			—			118.1
Net credit derivative recoveries (losses)	—			—			—			—			0.4			0.4
Ceding commissions income (expense), net	0.6			(1.5		)	—			(0.9		)	—			(0.9		)
Total realized gains and other settlements on credit derivatives	113.8			3.4			—			117.2			0.4			117.6

Total revenues	203.8			169.3			5.7			378.7			0.4			379.0

Loss and loss adjustment expenses (recoveries)	196.7			68.4			2.0			267.1			(1.5		)	265.8
Incurred losses on credit derivatives	38.4			5.4			—			43.7			—			43.7
Total loss and loss adjustment expenses (recoveries)	235.1			73.8			2.0			310.9			(1.5		)	309.5
Profit commission expense	—			1.0			0.4			1.3			—			1.3
Acquisition costs	14.0			46.6			0.5			61.2			—			61.2
Operating expenses	61.5			19.7			2.2			83.5			—			83.5
Total underwriting expenses	$	310.6		$	141.2		$	5.1		$	456.9		$	(1.5	)	$	455.5

Underwriting (loss) gain	$	(106.8	)	$	28.1		$	0.6		$	(78.2	)	$	1.9		$	(76.4	)

Loss and loss adjustment expense ratio (e)	115.7		%	43.2		%	35.1		%	81.9		%				81.4		%
Expense ratio (e)	36.9		%	40.3		%	53.9		%	38.7		%				38.7		%
Combined ratio (e)	152.6		%	83.5		%	89.0		%	120.6		%				120.1		%

	Year Ended December 31, 2007
	Financial			Financial						Total
	Guaranty			Guaranty			Mortgage			Financial
	Direct			Reinsurance(1)			Guaranty			Guaranty			Other		Total
PVP:
U.S. public finance	$	60.1		$	301.5		$	—		$	361.7				$	361.7
U.S. structured finance	264.1			32.4			—			296.5					296.5
International	152.6			63.9			—			216.5					216.5
Total PVP	$	476.8		$	397.8		$	—		$	874.6				$	874.6

Income statement:
Gross written premiums	$	167.1		$	251.0		$	2.7		$	421.0		$	3.5	$	424.5
Net written premiums	154.5			250.8			2.7			408.0			—		408.0

Net earned premiums	52.8			88.9			17.5			159.3			—		159.3
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	72.7			—			—			72.7			—		72.7
Net credit derivative recoveries (losses)	0.1			—			—			0.1			1.3		1.4
Ceding commissions income (expense), net	(0.1		)	—			—			(0.1		)	—		(0.1		)
Total realized gains and other settlements on credit derivatives	72.7			—			—			72.7			1.3		74.0

Total revenues	125.5			88.9			17.5			232.0			1.3		233.3

Loss and loss adjustment expenses (recoveries)	29.2			(24.1		)	0.6			5.8			—		5.8
Incurred losses on credit derivatives	3.6			—			—			3.6			—		3.6
Total loss and loss adjustment expenses (recoveries)	32.7			(24.1		)	0.6			9.3			—		9.3
Profit commission expense	—			2.7			3.8			6.5			—		6.5
Acquisition costs	10.2			31.3			1.6			43.2			—		43.2
Operating expenses	60.5			17.3			2.0			79.9			—		79.9
Total underwriting expenses	$	103.4		$	27.3		$	8.1		$	138.8		$	—	$	138.8

Underwriting gain	$	22.1		$	61.6		$	9.4		$	93.3		$	1.3	$	94.5

Loss and loss adjustment expense ratio (e)	26.0		%	(27.1		)%	3.3		%	4.0		%			3.4		%
Expense ratio (e)	56.4		%	57.7		%	42.9		%	55.8		%			55.8		%
Combined ratio (e)	82.4		%	30.6		%	46.2		%	59.8		%			59.2		%

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct Segment (1 of 2)

(dollars in millions)

																									Full Year			Full Year
	1Q-07			2Q-07			3Q-07			4Q-07			1Q-08			2Q-08			3Q-08			4Q-08			2007			2008
PVP(a):	$	83.7		$	104.0		$	132.7		$	156.4		$	255.2		$	241.4		$	82.2		$	121.9		$	476.8		$	700.7
Less: PVP of credit derivatives GWP	40.3			39.2			90.8			81.8			91.5			52.3			—			57.6			252.2			201.5
PVP of financial guaranty GWP	43.4			64.8			41.9			74.6			163.7			189.1			82.2			64.2			224.6			499.2
Less: Present value of insurance installment premiums (a)	22.7			29.5			8.9			43.9			33.8			5.9			30.3			6.9			105.1			76.8
Upfront financial guaranty gross written premiums (GWP)	20.7			35.3			33.0			30.6			129.9			183.2			51.9			57.4			119.5			422.4
Plus: Financial guaranty installment GWP	11.5			10.3			10.2			15.6			16.5			14.6			19.5			11.7			47.6			62.3
Financial guaranty direct GWP	$	32.1		$	45.6		$	43.1		$	46.3		$	146.4		$	197.8		$	71.4		$	69.1		$	167.1		$	484.7

Income statement:
Gross written premiums	$	32.1		$	45.6		$	43.1		$	46.3		$	146.4		$	197.8		$	71.4		$	69.1		$	167.1		$	484.7
Net written premiums	31.9			42.6			35.1			44.9			144.1			192.6			70.0			67.9			154.5			474.7

Net earned premiums:
Scheduled net earned premiums
U.S. public finance	1.3			1.5			1.7			2.0			2.8			5.9			9.9			9.5			6.5			28.2
U.S. structured finance	6.1			7.3			8.3			9.7			11.3			13.6			12.3			11.2			31.3			48.4
International	3.0			3.3			3.0			3.0			3.1			1.3			4.7			3.0			12.2			12.1
Total scheduled net earned premiums	10.4			12.0			13.0			14.7			17.3			20.8			26.9			23.7			50.0			88.7
Net earned premiums from refundings	1.7			—			1.1			—			—			—			—			1.3			2.8			1.3
Total net earned premiums	12.1			12.0			14.1			14.7			17.3			20.8			26.9			25.0			52.8			90.0
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	16.8			16.3			17.6			22.0			27.3			30.6			28.4			26.8			72.7			113.2
Net credit derivative recoveries (losses)	0.0			0.0			0.0			0.0			—			—			—			—			0.1			—
Ceding commissions income (expense), net	0.0			(0.1		)	0.1			(0.2		)	(0.1		)	0.2			0.2			0.3			(0.1		)	0.6
Total realized gains and other settlements on credit derivatives	16.9			16.2			17.8			21.9			27.3			30.9			28.6			27.1			72.7			113.8

Total revenues	29.0			28.2			31.8			36.5			44.5			51.7			55.5			52.1			125.5			203.8

Loss and loss adjustment expenses (recoveries):
Case	0.0			0.0			0.0			0.3			0.2			32.0			99.9			70.4			0.4			202.5
Portfolio	0.6			1.0			4.6			22.5			35.7			(3.8		)	(34.0		)	(3.7		)	28.8			(5.8		)
Total loss and loss adjustment expenses (recoveries) - financial guaranty	0.7			1.0			4.7			22.8			35.9			28.2			65.9			66.7			29.2			196.7
Incurred losses on credit derivatives	0.6			0.7			1.8			0.5			3.2			5.6			10.1			19.5			3.6			38.4
Total loss and loss adjustment expenses (recoveries)	1.2			1.7			6.4			23.3			39.1			33.8			76.0			86.2			32.7			235.1
Profit commission expense	—			—			—			—			—			—			—			—			—			—
Acquisition costs	3.0			2.2			2.5			2.4			3.0			3.1			4.0			3.9			10.2			14.0
Operating expenses	15.9			14.5			15.1			14.9			21.3			15.2			15.4			9.6			60.5			61.5
Total expenses	$	20.2		$	18.5		$	24.0		$	40.7		$	63.4		$	52.1		$	95.5		$	99.7		$	103.4		$	310.6

Underwriting gain (loss)	$	8.8		$	9.8		$	7.8		$	(4.2	)	$	(18.9	)	$	(0.4	)	$	(40.0	)	$	(47.6	)	$	22.1		$	(106.8	)

Loss and loss adjustment expense ratio (e)	4.2		%	6.0		%	20.2		%	63.6		%	87.7		%	65.7		%	137.5		%	166.4		%	26.0		%	115.7		%
Expense ratio (e)	65.4		%	59.4		%	55.2		%	47.9		%	54.6		%	35.1		%	34.8		%	25.6		%	56.4		%	36.9		%
Combined ratio (e)	69.6		%	65.4		%	75.4		%	111.5		%	142.3		%	100.8		%	172.3		%	192.0		%	82.4		%	152.6		%

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct Segment (2 of 2)

(dollars in millions)

																	Full Year		Full Year
	1Q-07		2Q-07		3Q-07		4Q-07		1Q-08		2Q-08		3Q-08		4Q-08		2007		2008
PVP(a):
U.S. public finance	$	8.8	$	15.4	$	10.3	$	25.6	$	123.3	$	183.2	$	67.7	$	57.4	$	60.1	$	431.6
U.S. structured finance	44.9		49.9		77.0		92.3		71.3		51.9		14.5		49.8		264.1		187.6
International	29.9		38.8		45.4		38.5		60.5		6.3		—		14.7		152.6		81.5
Total	$	83.7	$	104.0	$	132.7	$	156.4	$	255.2	$	241.4	$	82.2	$	121.9	$	476.8	$	700.7

Gross par written:
U.S. public finance	$	609	$	705	$	695	$	2,271	$	7,213	$	13,170	$	5,574	$	4,752	$	4,281	$	30,710
U.S. structured finance	5,776		7,723		9,203		8,644		5,623		2,516		1,920		2,026		31,346		12,085
International	2,190		2,393		2,995		4,589		3,918		495		—		359		12,167		4,772
Total	$	8,575	$	10,822	$	12,893	$	15,505	$	16,755	$	16,181	$	7,494	$	7,137	$	47,795	$	47,567

Net par outstanding:
U.S. public finance	$	3,989	$	4,686	$	5,313	$	7,504	$	14,607	$	27,602	$	32,889	$	37,461	$	7,504	$	37,461
U.S. structured finance	48,430		50,562		57,497		64,950		66,324		67,816		66,567		65,589		64,950		65,589
International	21,319		22,979		25,896		30,566		35,039		35,158		32,629		28,975		30,566		28,975
Total	$	73,738	$	78,227	$	88,705	$	103,021	$	115,970	$	130,576	$	132,084	$	132,026	$	103,021	$	132,026

Net present value of installment premiums in force (d), (1)	$	425.3	$	459.1	$	533.8	$	639.2	$	715.8	$	763.5	$	649.3	$	666.3	$	639.2	$	666.3
Unearned premium reserve, net of ceded reinsurance	146.1		177.0		197.7		227.8		354.4		526.2		569.4		612.4		227.8		612.4
Unearned credit derivative revenues, net of ceded reinsurance	10.7		10.9		13.2		16.1		16.7		18.4		14.2		19.7		16.1		19.7

(1) March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008 amounts include $481.7 million, $531.6 million, $408.0 million and $436.9 million, respectively, related to credit derivatives.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and net present value of estimated future installment premiums in force (d)].

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Reinsurance Segment (1) (1 of 2)

(dollars in millions)

																									Full Year			Full Year
	1Q-07			2Q-07			3Q-07			4Q-07			1Q-08			2Q-08			3Q-08			4Q-08			2007			2008
PVP(a):	$	23.1		$	21.3		$	32.8		$	320.7		$	21.4		$	37.5		$	57.2		$	6.2		$	397.8		$	122.3
Less: PVP of credit derivatives GWP	—			—			—			—			1.9			—			1.1			—			—			3.0
PVP of financial guaranty GWP	23.1			21.3			32.8			320.7			19.5			37.5			56.1			6.2			397.8			119.2
Less: Present value of financial guaranty installment premiums (a)	14.2			4.2			18.3			151.1			2.4			6.1			7.5			3.7			187.8			19.6
Upfront financial guaranty gross written premiums (GWP)	8.9			17.1			14.5			169.5			17.1			31.4			48.6			2.5			210.0			99.6
Plus: Upfront premium due to commutation (2)	—			—			—			—			—			—			(20.8		)	—			—			(20.8		)
Plus: Financial guaranty installment GWP	9.8			8.4			9.3			13.5			8.3			16.6			13.4			12.1			41.1			50.5
Financial guaranty reinsurance GWP	$	18.7		$	25.5		$	23.8		$	183.0		$	25.4		$	48.0		$	41.2		$	14.7		$	251.0		$	129.3

Income statement:
Gross written premiums:
Treaty	$	14.2		$	16.9		$	15.8		$	19.1		$	11.8		$	17.9		$	0.4		$	7.8		$	66.0		$	37.9
Facultative	4.5			8.6			8.0			163.9			13.6			30.1			40.8			6.9			185.0			91.4
Total gross written premiums	$	18.7		$	25.5		$	23.8		$	183.0		$	25.4		$	48.0		$	41.2		$	14.7		$	251.0		$	129.3
Net written premiums	18.5			25.5			23.8			183.0			25.1			48.0			41.2			14.7			250.8			129.1

Net earned premiums:
Scheduled net earned premiums	18.7			17.3			18.1			20.0			25.4			27.5			25.7			26.7			74.1			105.3
Net earned premiums from refundings	3.2			6.4			3.5			1.7			2.4			2.1			31.7			24.4			14.8			60.6
Total net earned premiums	21.9			23.7			21.6			21.7			27.8			29.6			57.4			51.1			88.9			165.9
Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	—			—			—			—			0.5			0.8			2.1			1.5			—			4.9
Net credit derivative recoveries (losses)	—			—			—			—			—			—			—			—			—			—
Ceding commissions income (expense), net	—			—			—			—			(0.2		)	(0.3		)	(0.7		)	(0.4		)	—			(1.5		)
Total realized gains and other settlements on credit derivatives	—			—			—			—			0.3			0.6			1.4			1.1			—			3.4

Total revenues	21.9			23.7			21.6			21.7			28.1			30.2			58.8			52.2			88.9			169.3

Loss and loss adjustment expenses (recoveries):
Case	(7.3		)	(2.4		)	2.8			(3.6		)	11.7			17.2			18.0			23.9			(10.5		)	70.9
Portfolio	2.5			(8.6		)	(6.2		)	(1.3		)	7.4			(5.9		)	(2.5		)	(1.5		)	(13.6		)	(2.5		)
Total loss and loss adjustment expenses (recoveries) - financial guaranty	(4.8		)	(11.0		)	(3.4		)	(4.8		)	19.2			11.3			15.5			22.4			(24.1		)	68.4
Incurred losses on credit derivatives	—			—			—			—			—			—			—			5.4			—			5.4
Total loss and loss adjustment expenses (recoveries)	(4.8		)	(11.0		)	(3.4		)	(4.8		)	19.2			11.3			15.5			27.8			(24.1		)	73.8
Profit commission expense	0.9			0.5			0.8			0.5			1.1			0.9			(1.5		)	0.5			2.7			1.0
Acquisition costs	7.7			8.6			7.7			7.3			8.8			8.6			15.1			14.2			31.3			46.6
Operating expenses	4.4			3.9			4.5			4.5			6.4			4.0			5.6			3.7			17.3			19.7
Total expenses	$	8.3		$	2.0		$	9.6		$	7.5		$	35.5		$	24.8		$	34.8		$	46.1		$	27.3		$	141.2

Underwriting gain (loss)	$	13.6		$	21.7		$	12.1		$	14.2		$	(7.3	)	$	5.4		$	24.0		$	6.1		$	61.6		$	28.1

Loss and loss adjustment expense ratio (e)	(21.9		)%	(46.4		)%	(15.9		)%	(22.3		)%	67.8		%	37.1		%	26.1		%	52.8		%	(27.1		)%	43.2		%
Expense ratio (e)	59.6		%	54.9		%	60.1		%	56.7		%	58.1		%	45.2		%	33.5		%	35.6		%	57.7		%	40.3		%
Combined ratio (e)	37.7		%	8.5		%	44.2		%	34.4		%	125.9		%	82.3		%	59.6		%	88.4		%	30.6		%	83.5		%

(2) Relates to commutation of XLFA of approximately $2.1 billion par value of business.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Reinsurance Segment (1) (2 of 2)

(dollars in millions)

																		Full Year		Full Year
	1Q-07		2Q-07		3Q-07		4Q-07		1Q-08		2Q-08		3Q-08		4Q-08			2007		2008
PVP (a):
U.S. public finance	$	4.7	$	14.1	$	10.0	$	272.7	$	17.6	$	29.0	$	39.5	$	6.2		$	301.5	$	92.3
U.S. structured finance	3.9		2.5		3.0		22.9		2.9		4.2		—		—			32.4		7.2
International	14.4		4.7		19.8		25.0		0.9		4.2		17.7		—			63.9		22.8
Total	$	23.1	$	21.3	$	32.8	$	320.7	$	21.4	$	37.5	$	57.2	$	6.2		$	397.8	$	122.3

Gross par written:
U.S. public finance	$	754	$	1,845	$	1,344	$	26,598	$	2,503	$	1,492	$	2,154	$	162		$	30,541	$	6,312
U.S. structured finance	496		491		472		3,195		367		283		6		—			4,655		656
International	537		152		550		3,888		370		131		1,122		(18		)	5,127		1,604
Total	$	1,787	$	2,488	$	2,366	$	33,681	$	3,240	$	1,906	$	3,282	$	144		$	40,324	$	8,573

Net par outstanding:
U.S. public finance	$	48,929	$	48,801	$	48,832	$	74,409	$	75,382	$	76,003	$	72,695	$	69,860		$	74,409	$	69,860
U.S. structured finance	6,945		6,809		6,155		8,869		9,567		10,139		9,216		8,783			8,869		8,783
International	9,240		9,318		10,002		13,980		13,957		13,684		13,347		12,052			13,980		12,052
Total	$	65,115	$	64,928	$	64,989	$	97,258	$	98,906	$	99,826	$	95,258	$	90,696		$	97,258	$	90,696

Net present value of installment premiums in force (d), (2)	$	160.2	$	155.1	$	151.4	$	277.0	$	276.7	$	270.0	$	264.6	$	243.3		$	277.0	$	243.3
Unearned premium reserve, net of ceded reinsurance	460.9		462.9		465.0		626.3		623.7		642.1		625.9		589.6			626.3		589.6
Unearned credit derivative revenues, net of ceded reinsurance	—		—		—		—		4.6		4.8		4.4		3.6			—		3.6

(1) Due to the timing of receiving reports prepared by Assured’s ceding companies, present value of financial guaranty gross written premiums (PVP) for installment premiums, par written and par outstanding on treaty business in the Company’s Financial Guaranty Reinsurance segment are reported on a one-quarter lag.

(2) March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008 amounts include $15.5 million, $11.8 million, $11.2 million and $10.1 million, respectively, related to credit derivatives.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and net present value of estimated future installment premiums in force (d)].

Table of Contents

Assured Guaranty Ltd.

Mortgage Guaranty Segment

(dollars in millions)

																									Full Year			Full Year
	1Q-07			2Q-07			3Q-07			4Q-07			1Q-08			2Q-08			3Q-08			4Q-08			2007			2008
PVP (a):	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Less: Present value of installment premiums (a)	—			—			—			—			—			—			—			—			—			—
Upfront gross written premiums (GWP)	—			—			—			—			—			—			—			—			—			—
Plus: Installment GWP	1.0			0.5			1.4			(0.2		)	0.5			—			0.2			—			2.7			0.7
Mortgage guaranty GWP	$	1.0		$	0.5		$	1.4		$	(0.2	)	$	0.5		$	—		$	0.2		$	—		$	2.7		$	0.7

Income statement:
Gross written premiums	$	1.0		$	0.5		$	1.4		$	(0.2	)	$	0.5		$	—		$	0.2		$	—		$	2.7		$	0.7
Net written premiums	1.0			0.5			1.4			(0.2		)	0.5			—			0.2			—			2.7			0.7

Net earned premiums	3.1			2.3			2.9			9.2			1.9			1.3			1.2			1.3			17.5			5.7

Loss and loss adjustment expenses (recoveries):
Case	—			—			—			—			—			0.1			1.0			1.2			—			2.3
Portfolio and IBNR	0.1			0.1			0.8			(0.4		)	—			—			—			(0.3		)	0.6			(0.3		)
Total loss and loss adjustment expenses (recoveries)	0.1			0.1			0.8			(0.4		)	—			0.1			1.0			0.9			0.6			2.0
Profit commission expense	0.7			0.4			0.4			2.4			0.1			0.1			0.1			0.1			3.8			0.4
Acquisition costs	0.2			—			0.2			1.2			0.1			0.1			0.1			0.2			1.6			0.5
Operating expenses	0.3			0.5			0.3			1.0			0.9			0.5			0.5			0.3			2.0			2.2
Total expenses	$	1.3		$	1.0		$	1.6		$	4.2		$	1.1		$	0.8		$	1.7		$	1.4		$	8.1		$	5.1

Underwriting gain (loss)	$	1.8		$	1.3		$	1.3		$	5.0		$	0.8		$	0.5		$	(0.5	)	$	(0.1	)	$	9.4		$	0.6

Loss and loss adjustment expense ratio (e)	3.3		%	4.3		%	26.5		%	(4.3		)%	0.0		%	7.9		%	81.0		%	69.2		%	3.3		%	35.1		%
Expense ratio (e)	37.8		%	39.1		%	27.5		%	50.3		%	57.9		%	55.1		%	59.3		%	41.5		%	42.9		%	53.9		%
Combined ratio (e)	41.1		%	43.4		%	54.0		%	46.0		%	57.9		%	63.0		%	140.3		%	110.7		%	46.2		%	89.0		%

Risk in force	$	1,374		$	1,398		$	1,374		$	1,116		$	857		$	844		$	702		$	400		$	1,116		$	400
Risk written	—			—			—			—			—			—			—			—			—			—
Unearned premium reserve net of ceded reinsurance	33.5			31.6			30.1			20.8			19.4			18.1			17.1			15.8			20.8			15.8

Note: Please refer to endnotes for explanation of non-GAAP financial measures [PVP (a) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

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Assured Guaranty Ltd.

Other Segment

(dollars in millions)

																		Full Year		Full Year
	1Q-07		2Q-07		3Q-07		4Q-07		1Q-08		2Q-08			3Q-08		4Q-08		2007		2008
Income statement:
Gross written premiums	$	3.3	$	0.1	$	0.1	$	—	$	3.5	$	—		$	—	$	—	$	3.5	$	3.5
Net written premiums	—		—		—		—		—		—			—		—		—		—

Net earned premiums	—		—		—		—		—		—			—		—		—		—

Realized gains and other settlements on credit derivatives:
Net credit derivative premiums earned	—		—		—		—		—		—			—		—		—		—
Net credit derivative recoveries (losses)	1.3		—		—		—		—		0.4			—		—		1.3		0.4
Total realized gains and other settlements on credit derivatives	1.3		—		—		—		—		0.4			—		—		1.3		0.4

Total revenues	1.3		—		—		—		—		0.4			—		—		1.3		0.4

Loss and loss adjustment expenses (recoveries)	—		—		—		—		—		(1.5		)	—		—		—		(1.5		)
Incurred losses on credit derivatives	—		—		—		—		—		—			—		—		—		—
Total loss and loss adjustment expenses (recoveries)	—		—		—		—		—		(1.5		)	—		—		—		(1.5		)
Profit commission expense	—		—		—		—		—		—			—		—		—		—
Acquisition costs	—		—		—		—		—		—			—		—		—		—
Operating expenses	—		—		—		—		—		—			—		—		—		—
Total expenses	$	—	$	—	$	—	$	—	$	—	$	(1.5	)	$	—	$	—	$	—	$	(1.5	)

Underwriting gain	$	1.3	$	—	$	—	$	—	$	—	$	1.9		$	—	$	—	$	1.3	$	1.9

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Assured Guaranty Ltd.

Loss and Loss Adjustment Expense (“LAE”) Reserves by Segment/Type

(dollars in millions)

	As of December 31, 2008
	Financial		Financial				Total
	Guaranty		Guaranty		Mortgage		Financial
	Direct		Reinsurance		Guaranty		Guaranty		Other		Total
Financial guaranty insurance reserves by segment and type:
Case	$	64.2	$	55.7	$	0.1	$	120.0	$	1.5	$	121.5
Incurred but not reported (“IBNR”)	—		—		—		—		3.0		3.0
Portfolio reserves associated with fundamentally sound credits	11.8		35.5		2.5		49.8		—		49.8
Portfolio reserves on closely monitored credits (“CMC”) list	15.8		6.7		—		22.5		—		22.5
Total financial guaranty insurance loss and LAE reserves	$	91.8	$	97.9	$	2.6	$	192.3	$	4.5	$	196.8

Credit derivative reserves by segment and type:
Case	$	7.2	$	5.5	$	—	$	12.7	$	—	$	12.7
Plus: Credit derivative portfolio reserves associated with fundamentally sound credits	15.7		—		—		15.7		—		15.7
Plus: Credit derivative portfolio reserves on CMC list	23.4		—		—		23.4		—		23.4
Total credit derivative reserves	$	46.3	$	5.5	$	—	$	51.8	$	—	$	51.8

Total loss and LAE reserves	$	138.1	$	103.4	$	2.6	$	244.1	$	4.5	$	248.6

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Assured Guaranty Ltd.

Loss and Loss Adjustment Expenses

As of December 31, 2008

(dollars in millions)

	Total						Loss and Loss
	Net Par		4Q-08		Full Year 2008		Adjustment
	Outstanding		Incurred Losses(2)		Incurred Losses(2)		Expense Reserves(3)
Financial Guaranty Direct: (1)
Prime First Lien	$	1,620	$	0.1	$	0.9	$	1.9
Prime Closed End Seconds	424		24.0		53.9		37.7
Prime HELOC	1,242		22.0		120.3		0.9
Alt-A First Lien	6,193		14.4		21.3		21.7
Alt-A Option ARMs	1,410		1.4		1.4		1.4
Subprime First Lien	6,430		5.1		20.8		26.1
Total U.S. RMBS	17,319		67.0		218.6		89.7
Other structured	67,644		18.5		14.9		46.0
Public finance	47,063		0.7		1.6		2.4
Total Financial Guaranty Direct	$	132,026	$	86.2	$	235.1	$	138.1

Financial Guaranty Reinsurance: (1)
Prime First Lien	$	339	$	1.4	$	2.4	$	2.9
Prime Closed End Seconds	9		—		1.6		—
Prime HELOC	496		2.0		48.5		6.6
Alt-A First Lien	25		1.3		1.5		1.5
Alt-A Option ARMs	1		—		—		—
Subprime First Lien	203		3.2		4.0		9.7
Total U.S. RMBS	1,074		7.9		57.9		20.7
Other structured	10,864		5.9		0.2		48.0
Public finance	78,759		14.0		15.7		34.7
Total Financial Guaranty Reinsurance	$	90,696	$	27.8	$	73.8	$	103.4

Total Financial Guaranty Direct and Reinsurance: (1)
Prime First Lien	$	1,959	$	1.5	$	3.3	$	4.7
Prime Closed End Seconds	433		24.0		55.5		37.7
Prime HELOC	1,738		24.0		168.8		7.5
Alt-A First Lien	6,218		15.7		22.8		23.2
Alt-A Option ARMs	1,411		1.4		1.4		1.4
Subprime First Lien	6,633		8.3		24.7		35.8
Total U.S. RMBS	18,393		74.8		276.5		110.4
Other structured	78,508		24.4		15.1		94.0
Public finance	125,822		14.7		17.3		37.1
Total Financial Guaranty Direct and Reinsurance	$	222,722	$	113.9	$	308.9	$	241.5

(1) Includes financial guaranty (FG) and insured derivatives in the insured portfolio.

(2) Includes loss and loss adjustment expenses (recoveries) and incurred losses on credit derivatives, for the financial guaranty direct and reinsurance segments only.

(3) Includes loss and loss adjustment expense reserves for financial guaranty and credit derivatives, for the financial guaranty direct and reinsurance segments only.

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Assured Guaranty Ltd.

Investment Portfolio

As of December 31, 2008

(dollars in millions)

			Pre-Tax		After-Tax				Annualized
	Amortized		Book		Book		Fair		Investment
	Cost		Yield		Yield		Value		Income
Fixed maturity securities available for sale:
U.S. Treasury securities and obligations of U.S. government agencies	$	157.5	4.4	%	3.9	%	$	180.6	$	7.0
Agency obligations	269.1		4.8	%	4.5	%	295.3		13.0
Foreign government securities	50.3		4.6	%	3.0	%	54.5		2.3
Obligations of states and political subdivisions	584.6		4.7	%	4.4	%	576.6		27.2
Insured obligations of state and political subdivisions (1)	651.4		4.7	%	4.4	%	641.1		30.3
Corporate securities	274.2		6.1	%	5.2	%	268.2		16.8
Mortgage-backed securities (2):
Pass-throughs	1,025.8		5.7	%	5.2	%	998.7		58.0
PACs	56.1		4.9	%	4.6	%	53.1		2.8
Asset-backed securities (3)	80.7		5.3	%	4.6	%	73.6		4.3
Preferred stock	12.6		8.0	%	6.8	%	12.4		1.0
Total fixed maturity securities available for sale	3,162.3		5.1	%	4.7	%	3,154.1		162.5
Short-term investments	477.2		1.0	%	0.8	%	477.2		4.8
Total investments	$	3,639.5	4.6	%	4.2	%	$	3,631.3	$	167.3

	Fair
Ratings (4):	Value		%
Treasury and U.S. government obligations	$	180.6	5.7	%
Agency obligations	295.3		9.4	%
AAA/Aaa	1,383.9		43.9	%
AA/Aa	752.1		23.8	%
A/A	488.8		15.5	%
BBB	52.4		1.7	%
Below investment grade	1.0		0.0	%
Total	$	3,154.1	100.0	%

Duration of investment portfolio (in years):			4.1

(1)	Reflects obligations of state and local political subdivisions that have been insured by other financial guarantors. The underlying
ratings of these bonds average A+.
(2)	$2.3 million is U.S. subprime RMBS, which has an average rating of AAA.
(3)	Contains no CDOs of ABS.
(4)	Ratings are represented by the lower of the Moody’s Investor Services and Standard & Poor’s classifications.

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Assured Guaranty Ltd.

Estimated Net Exposure Amortization (1)

(dollars in millions)

			Estimated
	Estimated Net		Ending Net
	Debt Service		Debt Service
	Amortization		Outstanding

Financial Guaranty Direct:

2008 (as of December 31)			$	192,265
2009	$	12,178	180,087
2010	13,269		166,819
2011	14,098		152,720
2012	18,426		134,294
2013	14,910		119,384

2009-2013	72,882		119,384
2014-2018	54,999		64,384
2019-2023	22,421		41,964
2024-2028	14,433		27,531
After 2028	27,531		—
Total	$	192,265

Financial Guaranty Reinsurance:

2008 (as of December 31)			$	156,551
2009	$	7,709	148,842
2010	7,144		141,698
2011	7,762		133,936
2012	7,184		126,752
2013	6,896		119,856

2009-2013	36,695		119,856
2014-2018	33,494		86,361
2019-2023	28,457		57,904
2024-2028	21,882		36,022
After 2028	36,022		—
Total	$	156,551

Total Financial Guaranty:

2008 (as of December 31)			$	348,816
2009	$	19,887	328,929
2010	20,413		308,516
2011	21,860		286,656
2012	25,610		261,046
2013	21,806		239,239

2009-2013	109,577		239,239
2014-2018	88,494		150,746
2019-2023	50,878		99,868
2024-2028	36,315		63,553
After 2028	63,553		—
Total	$	348,816

(1) Represents amortization of existing guaranteed portfolio (principal and interest), assuming no advance refundings, as of December 31, 2008. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay guaranteed obligations.

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Assured Guaranty Ltd.

Estimated Net Unearned Premium Amortization and Estimated Net Future Installment Premiums

(dollars in millions)

			Estimated				Total Estimated
			Net Unearned		Estimated		Net Future
	Net Unearned		Premium		Net Future		Premium
	Premiums (1), (2)		Amortization (2)		Installments (2)		Earnings (2)

Financial Guaranty Direct:

2008 (as of December 31)	$	632.1
2009	570.7		$	61.4	$	148.0	$	209.4
2010	531.3		39.4		140.3		179.7
2011	494.6		36.7		126.7		163.4
2012	461.2		33.4		108.0		141.4
2013	429.6		31.6		78.2		109.8

2009-2013	429.6		202.5		601.2		803.7
2014-2018	295.5		134.1		150.0		284.1
2019-2023	195.8		99.8		41.1		140.9
2024-2028	123.9		71.9		16.4		88.3
After 2028	—		123.9		18.7		142.7
Total			$	632.2	$	827.4	$	1,459.6

Financial Guaranty Reinsurance:

2008 (as of December 31)	$	593.2
2009	534.4		$	58.8	$	40.7	$	99.5
2010	489.9		44.5		46.1		90.6
2011	449.7		40.2		39.3		79.5
2012	412.5		37.2		32.4		69.6
2013	377.6		34.9		29.1		64.0

2009-2013	377.6		215.6		187.6		403.2
2014-2018	234.7		142.8		107.3		250.1
2019-2023	137.1		97.6		81.2		178.8
2024-2028	71.4		65.7		56.7		122.5
After 2028	—		71.4		77.0		148.4
Total			$	593.2	$	509.8	$	1,103.0

Total Financial Guaranty:

2008 (as of December 31)	$	1,225.3
2009	1,105.1		$	120.3	$	188.7	$	308.9
2010	1,021.1		83.9		186.4		270.3
2011	944.3		76.9		166.0		242.9
2012	873.7		70.6		140.4		211.0
2013	807.2		66.5		107.3		173.8

2009-2013	807.2		418.1		788.8		1,206.9
2014-2018	530.3		277.0		257.2		534.2
2019-2023	332.9		197.4		122.3		319.6
2024-2028	195.2		137.6		73.2		210.8
After 2028	—		195.2		95.8		291.0
Total			$	1,225.3	$	1,337.2	$	2,562.5

(1) Unearned premium amounts are U.S. GAAP based and net of prepaid reinsurance premiums and include unearned credit derivative revenues net of ceded amounts.

(2) Includes credit derivatives.

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Assured Guaranty Ltd.

Financial Guaranty Profile (1 of 6)

As of December 31, 2008

(dollars in millions)

Net Par Outstanding and Average Rating by Asset Type

	Financial Guaranty Direct			Financial Guaranty Reinsurance			Consolidated
Sector:	Net Par Outstanding		Avg. Rating (1)	Net Par Outstanding		Avg. Rating (1)	Net Par Outstanding		Avg. Rating (1)
U.S. public finance
General obligation	$	8,522	A	$	18,525	A+	$	27,047	A+
Tax backed	10,147		A	15,716		A+	25,862		A+
Municipal utilities	5,093		A	10,511		A	15,604		A
Transportation	3,873		A+	8,774		A	12,647		A
Healthcare	5,455		A	6,223		A+	11,678		A
Higher education	2,311		A	3,020		A+	5,330		A+
Investor-owned utilities	119		A	2,037		BBB+	2,156		BBB+
Housing	—		—	1,981		A+	1,981		A+
Other public finance	1,943		A	3,072		A+	5,015		A
Total U.S. public finance	$	37,461	A	$	69,860	A+	$	107,322	A+

U.S. structured finance
Pooled corporate obligations	$	33,318	AAA	$	1,363	AA+	$	34,680	AAA
Residential mortgage-backed and home equity	17,319		A	1,074		BB+	18,393		A
Commercial mortgage-backed securities	5,663		AAA	213		A-	5,876		AAA
Consumer receivables	2,880		AA+	2,278		A	5,158		AA
Commercial receivables	2,214		AA-	2,731		A-	4,945		A
Structured credit	2,902		A+	372		BBB	3,274		A
Insurance securitizations	1,245		AA-	348		AA	1,593		AA-
Other structured finance	49		AA-	405		A-	454		A-
Total U.S. structured finance	$	65,589	AA	$	8,783	A	$	74,373	AA

International
Infrastructure and pooled infrastructure	$	5,518	AA+	$	3,788	BBB+	$	9,306	AA-
Pooled corporate obligations	7,432		AAA	951		AAA	8,383		AAA
Residential mortgage-backed and home equity	8,145		AAA	104		AA	8,249		AAA
Regulated utilities	3,443		A	4,072		BBB+	7,515		A-
Commercial receivables	886		A-	828		A-	1,713		A-
Public finance	641		AA	1,039		A-	1,680		A
Future flow	904		BBB	336		BBB	1,240		BBB
Insurance securitizations	923		CCC-	31		A	954		CCC
Commercial mortgage-backed securities	446		AAA	349		A-	795		AA-
Structured credit	—		—	437		A-	437		A-
Consumer receivables	—		—	109		AAA	109		AAA
Other international structured finance	636		AAA	10		A	646		AAA
Total international	$	28,975	AA	$	12,052	A-	$	41,027	AA-

Total net par outstanding	$	132,026	AA-	$	90,696	A+	$	222,722	AA-

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss, and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

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Assured Guaranty Ltd.

Financial Guaranty Profile (2 of 6)

(dollars in millions)

Historical Net Par Outstanding and Average Rating by Asset Type

	As of December 31,
	2008			2007			2006
Sector:	Net Par Outstanding		Avg. Rating (1)	Net Par Outstanding		Avg. Rating (1)	Net Par Outstanding		Avg. Rating (1)
U.S. public finance
General obligation	$	27,047	A+	$	20,291	A+	$	12,700	A+
Tax backed	25,862		A+	17,799		A+	11,812		A+
Municipal utilities	15,604		A	11,672		A+	9,673		A+
Transportation	12,647		A	9,984		A	6,302		A
Healthcare	11,678		A	10,372		A	6,580		A
Higher education	5,330		A+	3,651		A+	1,282		A
Investor-owned utilities	2,156		BBB+	2,314		BBB+	1,580		BBB+
Housing	1,981		A+	2,041		A+	1,083		AA-
Other public finance	5,015		A	3,790		A+	1,323		AA-
Total U.S. public finance	$	107,322	A+	$	81,914	A+	$	52,335	A+

U.S. structured finance
Pooled corporate obligations	$	34,680	AAA	$	33,813	AAA	$	25,604	AAA
Residential mortgage-backed and home equity	18,393		A	18,248		AA	11,239		AA-
Commercial mortgage-backed securities	5,876		AAA	6,002		AA+	5,430		AAA
Consumer receivables	5,158		AA	6,589		AA	2,663		AA-
Commercial receivables	4,945		A	5,246		A+	2,450		A-
Structured credit	3,274		A	1,572		A-	1,553		AA+
Insurance securitizations	1,593		AA-	1,158		AA-	794		AA-
Other structured finance	454		A-	1,191		AA	1,852		AA
Total U.S. structured finance	$	74,373	AA	$	73,820	AA+	$	51,583	AA+

International
Infrastructure and pooled infrastructure	$	9,306	AA-	$	11,561	AA-	$	8,256	AA-
Pooled corporate obligations	8,383		AAA	8,459		AAA	3,563		AAA
Residential mortgage-backed and home equity	8,249		AAA	7,329		AAA	4,982		AAA
Regulated utilities	7,515		A-	8,337		A-	4,780		A-
Commercial receivables	1,713		A-	1,913		A-	1,081		A-
Public finance	1,680		A	1,996		A+	1,202		A+
Future flow	1,240		BBB	1,113		BBB+	1,008		BBB
Insurance securitizations	954		CCC	857		BBB-	923		A-
Commercial mortgage-backed securities	795		AA-	1,240		AA+	1,087		AAA
Structured credit	437		A-	592		A-	593		A
Consumer receivables	109		AAA	357		AA+	114		BBB+
Other international structured finance	646		AAA	794		AA+	788		AA+
Total international	$	41,027	AA-	$	44,546	AA-	$	28,378	AA-

Total exposures	$	222,722	AA-	$	200,279	AA-	$	132,296	AA-

Mortgage guaranty risk in force	$	400	NA	$	1,116	NA	$	1,822	NA

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

NA = Not Applicable

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Assured Guaranty Ltd.

Financial Guaranty Profile (3 of 6)

(dollars in millions)

Gross Par Written by Asset Type

	Financial Guaranty Direct		Avg. Rating (1)	Financial Guaranty Reinsurance			Avg. Rating (1)	Consolidated			Avg. Rating (1)
Sector:	4Q-08			4Q-08				4Q-08
U.S. public finance
General obligation	$	1,583	A+	$	89		AA-	$	1,672		A+
Tax backed	1,253		A	13			A+	1,266			A
Healthcare	673		A	1			A+	674			A
Transportation	615		A+	0			BBB+	615			A+
Municipal utilities	302		A	60			A+	362			A
Higher education	216		A	2			AA-	219			A
Investor-owned utilities	—		—	(4		)	A-	(4		)	A-
Housing	—		—	—			—	—			—
Other public finance	110		A	—			—	110			A
Total U.S. public finance	$	4,752	A	$	162		AA-	$	4,914		A

U.S. structured finance
Pooled corporate obligations	$	1,026	AAA	$	—		—	$	1,026		AAA
Structured credit	1,000		AAA	—			—	1,000			AAA
Commercial mortgage-backed securities	—		—	—			—	—			—
Commercial receivables	—		—	—			—	—			—
Consumer receivables	—		—	—			—	—			—
Insurance securitization	—		—	—			—	—			—
Residential mortgage-backed and home equity	—		—	—			—	—			—
Other structured finance	—		—	—			—	—			—
Total U.S. structured finance	$	2,026	AAA	$	—		—	$	2,026		AAA

International
Pooled corporate obligations	$	359	AAA	$	—		—	$	359		AAA
Regulated utilities	—		—	(18		)	BBB-	(18		)	BBB-
Public finance	—		—	(0		)	A+	(0		)	A+
Commercial mortgage-backed securities	—		—	—			—	—			—
Commercial receivables	—		—	—			—	—			—
Consumer receivables	—		—	—			—	—			—
Future flow	—		—	—			—	—			—
Infrastructure and pooled infrastructure	—		—	—			—	—			—
Insurance securitizations	—		—	—			—	—			—
Residential mortgage-backed and home equity	—		—	—			—	—			—
Structured credit	—		—	—			—	—			—
Other international structured finance	—		—	—			—	—			—
Total international	$	359	AAA	$	(18	)	BBB	$	341		AAA

Total gross par written	$	7,137	AA-	$	144		AA-	$	7,281		AA-

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Profile (4 of 6)

(dollars in millions)

Gross Par Written by Asset Type

	Financial Guaranty Direct		Avg. Rating (1)	Financial Guaranty Reinsurance		Avg. Rating (1)	Consolidated		Avg. Rating (1)
Sector:	Full Year 2008			Full Year 2008			Full Year 2008
U.S. public finance
Tax backed	$	8,307	A+	$	1,139	AA-	$	9,447	A+
General obligation	6,538		A+	2,544		A+	9,082		A+
Municipal utilities	4,901		A	748		A	5,649		A
Healthcare	3,659		A	847		A+	4,506		A
Transportation	3,502		A+	894		A+	4,397		A+
Higher education	1,755		A	74		AA-	1,829		A
Investor-owned utilities	80		BBB+	11		A-	91		BBB+
Housing	—		—	54		AA	54		AA
Other public finance	1,966		A	1		AA-	1,967		A
Total U.S. public finance	$	30,710	A	$	6,312	A+	$	37,022	A

U.S. structured finance
Pooled corporate obligations	$	3,684	AAA	$	133	AA+	$	3,817	AAA
Residential mortgage-backed and home equity	3,034		AAA	155		A+	3,189		AAA
Structured credit	2,850		AA+	—		—	2,850		AA+
Consumer receivables	1,825		AA+	317		A-	2,142		AA
Commercial receivables	693		BBB+	17		BBB	709		BBB+
Commercial mortgage-backed securities	—		—	—		—	—		—
Insurance securitization	—		—	—		—	—		—
Other structured finance	—		—	34		AA-	34		AA-
Total U.S. structured finance	$	12,085	AA+	$	656	A+	$	12,741	AA+

International
Residential mortgage-backed and home equity	$	3,096	AAA	$	14	AAA	$	3,110	AAA
Regulated utilities	450		A+	829		A-	1,279		A
Pooled corporate obligations	977		AAA	38		AAA	1,015		AAA
Infrastructure and pooled infrastructure	—		—	495		A-	495		A-
Future flow	250		BBB+	—		—	250		BBB+
Consumer receivables	—		—	152		AAA	152		AAA
Public finance	—		—	71		A-	71		A-
Commercial receivables	—		—	6		AA	6		AA
Commercial mortgage-backed securities	—		—	—		—	—		—
Insurance securitizations	—		—	—		—	—		—
Structured credit	—		—	—		—	—		—
Other international structured finance	—		—	—		—	—		—
Total international	$	4,772	AA+	$	1,604	A	$	6,377	AA

Total gross par written	$	47,567	AA-	$	8,573	A+	$	56,140	AA-

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Profile (5 of 6)

(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio

	As of December 31, 2008
	Financial Guaranty Direct				Financial Guaranty Reinsurance				Consolidated
	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
Ratings (1):
Super senior	$	32,351	24.5	%	$	1	0.0	%	$	32,352	14.5	%
AAA	35,542		26.9	%	5,191		5.7	%	40,733		18.3	%
AA	14,699		11.1	%	32,986		36.4	%	47,685		21.4	%
A	31,912		24.2	%	34,078		37.6	%	65,991		29.6	%
BBB	12,579		9.5	%	16,782		18.5	%	29,361		13.2	%
Below investment grade	4,943		3.7	%	1,657		1.8	%	6,600		3.0	%
Total exposures	$	132,026	100.0	%	$	90,696	100.0	%	$	222,722	100.0	%

	As of December 31, 2007
	Financial Guaranty Direct				Financial Guaranty Reinsurance				Consolidated
	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
Ratings (1):
Super senior	$	36,359	35.3	%	$	—	—		$	36,359	18.2	%
AAA	41,716		40.5	%	5,617		5.8	%	47,333		23.6	%
AA	5,576		5.4	%	32,858		33.8	%	38,434		19.2	%
A	9,873		9.6	%	39,304		40.4	%	49,177		24.6	%
BBB	7,970		7.7	%	18,892		19.4	%	26,862		13.4	%
Below investment grade	1,526		1.5	%	588		0.6	%	2,114		1.1	%
Total exposures	$	103,021	100.0	%	$	97,258	100.0	%	$	200,279	100.0	%

	As of December 31, 2008
	U.S. Public Finance				U.S. Structured Finance				International				Consolidated
	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
Ratings (1):
Super senior	$	—	—		$	21,302	28.6	%	$	11,050	26.9	%	$	32,352	14.5	%
AAA	2,120		2.0	%	27,115		36.5	%	11,498		28.0	%	40,733		18.3	%
AA	38,028		35.4	%	7,687		10.3	%	1,970		4.8	%	47,685		21.4	%
A	53,086		49.5	%	7,058		9.5	%	5,846		14.2	%	65,991		29.6	%
BBB	13,020		12.1	%	6,692		9.0	%	9,649		23.5	%	29,361		13.2	%
Below investment grade	1,067		1.0	%	4,519		6.1	%	1,014		2.5	%	6,600		3.0	%
Total exposures	$	107,322	100.0	%	$	74,373	100.0	%	$	41,027	100.0	%	$	222,722	100.0	%

	As of December 31, 2007
	U.S. Public Finance				U.S. Structured Finance				International				Consolidated
	Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
Ratings (1):
Super senior	$	—	—		$	22,098	29.9	%	$	14,261	32.0	%	$	36,359	18.2	%
AAA	1,777		2.2	%	34,370		46.6	%	11,185		25.1	%	47,333		23.6	%
AA	31,750		38.8	%	4,676		6.3	%	2,008		4.5	%	38,434		19.2	%
A	37,604		45.9	%	5,302		7.2	%	6,271		14.1	%	49,177		24.6	%
BBB	10,608		13.0	%	5,479		7.4	%	10,776		24.2	%	26,862		13.4	%
Below investment grade	174		0.2	%	1,894		2.6	%	45		0.1	%	2,114		1.1	%
Total exposures	$	81,914	100.0	%	$	73,820	100.0	%	$	44,546	100.0	%	$	200,279	100.0	%

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

Table of Contents

Assured Guaranty Ltd.

Pooled Corporate Obligations Profile

(dollars in millions)

Distribution of Financial Guaranty Direct Pooled Corporate Obligations by Ratings as of December 31, 2008

	Net Par Outstanding		% of total		Avg. Initial Credit Enhancement (2)		Avg. Current Enhancement (2)
Ratings (1):
AAA	$	35,579	87.3	%	37.3	%	33.6	%
AA	4,251		10.4	%	36.7	%	29.8	%
A	672		1.6	%	44.0	%	40.5	%
BBB	248		0.6	%	48.2	%	35.3	%
Below investment grade	—		—		—		—
Total exposures	$	40,750	100.0	%	37.4	%	33.3	%

Distribution of Financial Guaranty Direct Pooled Corporate Obligations by Year Insured as of December 31, 2008

	Net Par Outstanding		% of total		Avg. Initial Credit Enhancement (2)		Avg. Current Enhancement (2)
Year insured:
2004 and prior	$	1,582	3.9	%	30.8	%	30.6	%
2005	7,504		18.4	%	35.7	%	33.1	%
2006	13,274		32.6	%	38.0	%	32.1	%
2007	15,848		38.9	%	38.9	%	34.3	%
2008	2,542		6.2	%	34.7	%	35.6	%
	$	40,750	100.0	%	37.4	%	33.3	%

Distribution of Financial Guaranty Direct Pooled Corporate Obligations by Asset Class as of December 31, 2008

	Net Par Outstanding		% of total		Avg. Initial Credit Enhancement (2)		Avg. Current Enhancement (2)		Avg. Rating(1)
Asset class:
High yield corporates	$	26,186	64.3	%	35.2	%	31.5	%	AAA
Trust preferred - banks and insurance	3,759		9.2	%	47.1	%	43.8	%	AAA
Trust preferred - US mortgage and REITs	2,493		6.1	%	50.0	%	45.2	%	AA
Trust preferred - European mortgage and REITs	1,005		2.5	%	36.8	%	36.5	%	AAA
Market value CDOs of corporates	4,181		10.3	%	38.6	%	27.2	%	AAA
Investment grade corporates	2,277		5.6	%	28.6	%	29.9	%	AAA
Commercial real estate	775		1.9	%	49.1	%	49.1	%	AAA
CDO of CDOs (corporate) (3)	74		0.2	%	1.7	%	4.9	%	AAA
	$	40,750	100.0	%	37.4	%	33.3	%	AAA

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

(2) “Average Credit Enhancement” is intended to provide a measure of the amount of equity and/or subordinate tranches that are junior in the capital structure to Assured’s exposure, expressed as a percentage of the total transaction size and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown above do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Data is obtained from third-party sources such as trustee reports and may be subject to misstatement or correction.

(3) Consists of one transaction whereby Assured’s exposure is principal-protected by a collateral account currently containing $78 million in assets and representing 105% of current net par. Funds in the collateral account are permitted to be invested in cash, government securities and AAA ABS (other than MBS).

Table of Contents

Assured Guaranty Ltd.

Consolidated U.S. Residential Mortgage-Backed Securities (“RMBS”) Profile (1 of 2)

(dollars in millions)

Distribution of U.S. RMBS by Rating(1) and by Segment as of December 31, 2008

	Direct Net Par Outstanding		%		Reinsurance Net Par Outstanding		%		Total Net Par Outstanding		%
Ratings(1):
Super senior	$	6,384	36.9	%	$	—	—		$	6,384	34.7	%
AAA	1,471		8.5	%	201		18.7	%	1,672		9.1	%
AA	1,461		8.4	%	101		9.4	%	1,561		8.5	%
A	2,360		13.6	%	98		9.1	%	2,458		13.4	%
BBB	1,724		10.0	%	185		17.2	%	1,909		10.4	%
Below investment grade	3,918		22.6	%	489		45.6	%	4,408		24.0	%
	$	17,319	100.0	%	$	1,074	100.0	%	$	18,393	100.0	%

Distribution of U.S. RMBS by Rating(1) and Type of Exposure as of December 31, 2008

	Prime First Lien		Prime Closed End Seconds		Prime HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		Total Net Par Outstanding
Ratings(1):
Super senior	$	672	$	47	$	—	$	2,746	$	—	$	2,920	$	6,384
AAA	335		60		13		738		195		331		1,672
AA	171		135		13		514		82		645		1,561
A	74		—		8		886		333		1,157		2,458
BBB	681		5		102		24		—		1,097		1,909
Below investment grade	26		185		1,602		1,310		801		483		4,408
Total exposures	$	1,959	$	433	$	1,738	$	6,218	$	1,411	$	6,633	$	18,393

Distribution of U.S. RMBS by Year Insured and Type of Exposure as of December 31, 2008

	Prime First Lien		Prime Closed End Seconds		Prime HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		Total Net Par Outstanding
Year Insured:
2004 and prior	$	224	$	—	$	140	$	57	$	71	$	493	$	984
2005	214		—		739		383		43		97		1,476
2006	431		5		146		—		57		4,477		5,117
2007	1,090		428		713		3,249		1,090		1,536		8,106
2008	—		—		—		2,529		151		30		2,710
Total exposures	$	1,959	$	433	$	1,738	$	6,218	$	1,411	$	6,633	$	18,393

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

Table of Contents

Assured Guaranty Ltd.

Consolidated U.S. RMBS Profile (2 of 2)

(dollars in millions)

Distribution of U.S. RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	253		$	159		$	136		$	166		$	270		$	984
2005	—			346			125			136			31			838			1,476
2006	2,920			184			541			400			845			227			5,117
2007	1,314			344			736			1,785			869			3,058			8,106
2008	2,150			545			—			—			—			15			2,710
	$	6,384		$	1,672		$	1,561		$	2,458		$	1,909		$	4,408		$	18,393

% of total	34.7		%	9.1		%	8.5		%	13.4		%	10.4		%	24.0		%	100.0		%

Distribution of U.S. Prime HELOC RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	2		$	12		$	5		$	79		$	42		$	140
2005	—			—			—			2			21			715			739
2006	—			—			—			—			1			146			146
2007	—			11			2			—			1			700			713
2008	—			—			—			—			—			—			—
	$	—		$	13		$	13		$	8		$	102		$	1,602		$	1,738

% of total	0.0		%	0.8		%	0.8		%	0.4		%	5.9		%	92.2		%	100.0		%

Distribution of U.S. Closed End Seconds RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	—		$	—		$	—		$	—		$	—		$	—
2005	—			—			—			—			—			—			—
2006	—			—			—			—			5			—			5
2007	47			60			135			—			—			185			428
2008	—			—			—			—			—			—			—
	$	47		$	60		$	135		$	—		$	5		$	185		$	433

% of total	10.9		%	14.0		%	31.2		%	0.0		%	1.3		%	42.7		%	100.0		%

Distribution of U.S. Alt-A RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	19		$	16		$	—		$	21		$	—		$	57
2005	—			228			42			—			—			114			383
2006	—			—			—			—			—			—			—
2007	595			113			456			886			2			1,197			3,249
2008	2,150			378			—			—			—			—			2,529
	$	2,746		$	738		$	514		$	886		$	24		$	1,310		$	6,218

% of total	44.2		%	11.9		%	8.3		%	14.3		%	0.4		%	21.1		%	100.0		%

Distribution of U.S. Alt-A Option ARM RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	39		$	14		$	17		$	—		$	—		$	71
2005	—			—			—			43			—			—			43
2006	—			—			—			—			—			57			57
2007	—			5			68			272			—			744			1,090
2008	—			151			—			—			—			—			151
	$	—		$	195		$	82		$	333		$	—		$	801		$	1,411

% of total	0.0		%	13.8		%	5.8		%	23.6		%	0.0		%	56.8		%	100.0		%

Distribution of U.S. Subprime RMBS by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	173		$	38		$	41		$	13		$	228		$	493
2005	—			5			—			90			2			0			97
2006	2,920			125			532			400			488			13			4,477
2007	—			12			75			627			594			227			1,536
2008	—			16			—			—			—			15			30
	$	2,920		$	331		$	645		$	1,157		$	1,097		$	483		$	6,633

% of total	44.0		%	5.0		%	9.7		%	17.4		%	16.5		%	7.3		%	100.0		%

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct U.S. RMBS Profile (1 of 3)

(dollars in millions)

Distribution of Financial Guaranty Direct U.S. RMBS by Rating(1) and Type of Exposure as of December 31, 2008

	Prime First Lien		Prime Closed End Seconds		Prime HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		Total Net Par Outstanding
Ratings(1):
Super senior	$	672	$	47	$	—	$	2,746	$	—	$	2,920	$	6,384
AAA	252		58		—		736		195		232		1,471
AA	83		134		6		512		82		644		1,461
A	—		—		—		886		332		1,142		2,360
BBB	613		—		17		20		—		1,074		1,724
Below investment grade	—		185		1,220		1,294		801		418		3,918
Total exposures	$	1,620	$	424	$	1,242	$	6,193	$	1,410	$	6,430	$	17,319

Distribution of Financial Guaranty Direct U.S. RMBS Net Par Outstanding by Rating(1) and Year Issued as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year issued:
2004 and prior	$	—		$	163		$	71		$	50		$	37		$	193		$	514
2005	2,020			461			656			530			480			719			4,866
2006	1,189			—			75			150			892			371			2,678
2007	3,175			847			658			1,630			315			2,635			9,260
2008	—			—			—			—			—			—			—
	$	6,384		$	1,471		$	1,461		$	2,360		$	1,724		$	3,918		$	17,319

% of total	36.9		%	8.5		%	8.4		%	13.6		%	10.0		%	22.6		%	100.0		%

Distribution of Financial Guaranty Direct U.S. RMBS Net Par Outstanding by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year issued:
2004 and prior	$	—		$	163		$	71		$	50		$	37		$	193		$	514
2005	—			337			124			130			—			719			1,311
2006	2,920			124			532			400			822			57			4,855
2007	1,314			318			733			1,780			865			2,949			7,960
2008	2,150			529			—			—			—			—			2,679
	$	6,384		$	1,471		$	1,461		$	2,360		$	1,724		$	3,918		$	17,319

% of total	36.9		%	8.5		%	8.4		%	13.6		%	10.0		%	22.6		%	100.0		%

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct U.S. RMBS Profile (2 of 3)

(dollars in millions)

Distribution of Financial Guaranty Direct U.S. RMBS by Year Insured as of December 31, 2008

	Prime First Lien		Prime Closed End Seconds		Prime HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		Total Net Par Outstanding
Year insured:
2004 and prior	$	—	$	—	$	22	$	51	$	71	$	370	$	514
2005	192		—		605		383		42		88		1,311
2006	342		—		—		—		57		4,455		4,855
2007	1,085		424		614		3,230		1,090		1,516		7,960
2008	—		—		—		2,529		151		—		2,679
	$	1,620	$	424	$	1,242	$	6,193	$	1,410	$	6,430	$	17,319

Distribution of Financial Guaranty Direct U.S. RMBS by Year Issued as of December 31, 2008

	Prime First Lien		Prime Closed End Seconds		Prime HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		Total Net Par Outstanding
Year issued:
2004 and prior	$	—	$	—	$	22	$	51	$	71	$	370	$	514
2005	192		—		605		383		42		3,643		4,866
2006	342		—		—		379		57		1,900		2,678
2007	1,085		424		614		5,380		1,240		516		9,260
2008	—		—		—		—		—		—		—
	$	1,620	$	424	$	1,242	$	6,193	$	1,410	$	6,430	$	17,319

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct U.S. RMBS Profile (3 of 3)

(dollars in millions)

Distribution of Financial Guaranty Direct U.S. Mortgage-Backed Securities Issued January 1, 2005 or Later by Exposure Type, Average Pool Factor, Subordination, Cumulative Losses and 60+ Day Delinquencies as of December 31, 2008 (1)

U.S. Prime First Lien

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	192	75.8	%	5.4	%	0.1	%	2.7	%	6
2006	342		69.1	%	5.3	%	0.0	%	0.6	%	2
2007	1,085		87.6	%	10.5	%	0.2	%	4.5	%	3
2008	—		N/A		N/A		N/A		N/A		N/A
	$	1,620	82.3	%	8.8	%	0.1	%	3.5	%	11

U.S. Prime CES

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	—	N/A		N/A		N/A		N/A		N/A
2006	—		N/A		N/A		N/A		N/A		N/A
2007	424		67.5	%	25.7	%	24.5	%	17.2	%	5
2008	—		N/A		N/A		N/A		N/A		N/A
	$	424	67.5	%	25.7	%	24.5	%	17.2	%	5

U.S. Prime HELOC

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	605	33.5	%	0.0	%	10.5	%	12.6	%	2
2006	—		N/A		N/A		N/A		N/A		N/A
2007	614		68.8	%	0.0	%	14.0	%	9.8	%	2
2008	—		N/A		N/A		N/A		N/A		N/A
	$	1,220	51.3	%	0.0	%	12.3	%	11.2	%	4

U.S. Alt-A First Lien

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	383	61.9	%	11.6	%	0.7	%	7.4	%	13
2006	379		76.6	%	39.5	%	1.8	%	24.3	%	2
2007	5,380		79.4	%	20.7	%	0.8	%	17.3	%	11
2008	—		N/A		N/A		N/A		N/A		N/A
	$	6,142	78.1	%	21.3	%	0.9	%	17.1	%	26

U.S. Alt-A Option ARMs

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	42	34.1	%	27.9	%	0.5	%	18.3	%	1
2006	57		57.0	%	19.3	%	0.7	%	23.0	%	1
2007	1,240		79.1	%	21.8	%	0.6	%	18.1	%	6
2008	—		N/A		N/A		N/A		N/A		N/A
	$	1,339	76.7	%	21.9	%	0.6	%	18.3	%	8

U.S. Subprime First Lien

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	3,643	34.1	%	62.6	%	5.7	%	42.4	%	42
2006	1,900		50.5	%	41.8	%	7.4	%	43.2	%	49
2007	516		51.9	%	42.1	%	7.5	%	45.1	%	2
2008	—		N/A		N/A		N/A		N/A		N/A
	$	6,059	40.8	%	54.3	%	6.4	%	42.9	%	93

U.S. CMBS

	Net Par Outstanding		Pool Factor (2)		Subordination (3)		Cumulative Losses (4)		60+ Day Delinquencies (5)		Number of transactions
Year issued:
2005	$	3,429	96.8	%	28.9	%	0.0	%	0.1	%	158
2006	1,418		98.5	%	30.1	%	0.0	%	0.2	%	57
2007	533		90.6	%	20.0	%	0.0	%	0.0	%	13
2008	—		N/A		N/A		N/A		N/A		N/A
	$	5,380	96.6	%	28.3	%	0.0	%	0.1	%	228

(1) For this release, net par outstanding is based on values as of December 2008. With the exception of the US Prime First Lien, US Prime HELOC, US Prime CES and US CMBS portfolios which are as of December 2008, the pool factor, subordination, cumulative losses and delinquency data is based on November 2008 information obtained from Intex, Bloomberg, and/or provided by the trustee and may be subject to restatement or correction.

(2) Pool factor is the percentage of net par outstanding divided by the original net par outstanding of the transactions at inception.

(3) Represents the sum of subordinate tranches and over-collateralization, expressed as a percentage of total transaction size and does not include any benefit from excess interest collections that may be used to absorb losses.

(4) Cumulative losses are defined as net charge-offs on the underlying loan collateral divided by the original pool balance.

(5) 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or REO divided by net par outstanding.

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Assured Guaranty Ltd.

Consumer Receivables Profile

(dollars in millions)

Distribution of Consolidated Consumer Receivables by Year Issued as of December 31, 2008

	Credit Cards		Student Loans		Auto		Total Net Par Outstanding
Year issued:
2004 and prior	$	48	$	34	$	10	$	92
2005	1,074		202		136		1,412
2006	—		822		296		1,118
2007	0		1,219		1,071		2,291
2008	175		—		181		356
	$	1,297	$	2,277	$	1,693	$	5,268

Distribution of Financial Guaranty Direct U.S. Consumer Receivables Net Par Outstanding by Rating(1) and Year Insured as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year insured:
2004 and prior	$	—		$	—		$	—		$	—		$	—		$	—		$	—
2005	—			—			—			—			11			—			11
2006	—			419			—			—			—			—			419
2007	—			842			150			—			—			—			992
2008	1,175			—			—			283			—			—			1,458
	$	1,175		$	1,261		$	150		$	283		$	11		$	—		$	2,880

% of total	40.8		%	43.8		%	5.2		%	9.8		%	0.4		%	0.0		%	100.0		%

Distribution of Financial Guaranty Direct U.S. Consumer Receivables Net Par Outstanding by Rating(1) and Year Issued as of December 31, 2008

	Super			AAA			AA			A			BBB			BIG
	Senior			Rated			Rated			Rated			Rated			Rated			Total
Year issued:
2004 and prior	$	—		$	—		$	—		$	—		$	—		$	—		$	—
2005	1,000			—			—			—			11			—			1,011
2006	—			419			—			—			—			—			419
2007	—			842			150			283			—			—			1,275
2008	175			—			—			—			—			—			175
	$	1,175		$	1,261		$	150		$	283		$	11		$	—		$	2,880

% of total	40.8		%	43.8		%	5.2		%	9.8		%	0.4		%	0.0		%	100.0		%

Distribution of Consumer Receivables by Asset Class as of December 31, 2008

	Net Par Outstanding		%		Average Rating (1)	Avg. Initial Credit Enhancement (2)		Avg. Current Enhancement (2)
Asset class:
Credit cards	$	1,261	43.8	%	AAA	7.2	%	8.2	%
Student loans	1,175		40.8	%	AAA	54.0	%	54.0	%
Auto	444		15.4	%	A-	11.2	%	14.5	%
	$	2,880	100.0	%	AA+	26.9	%	27.9	%

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

(2) “Average Credit Enhancement” is intended to provide a measure of the amount of equity and/or subordinate tranches that are junior in the capital structure to Assured’s exposure, expressed as a percentage of the total transactionsize and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown above do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Data is obtained from third-party sources such as trustee reports and may be subject to misstatement or correction.

Table of Contents

Assured Guaranty Ltd.

Financial Guaranty Direct Credit Derivative Exposure Profile

(dollars in millions)

Distribution of Financial Guaranty Direct Credit Derivative Exposure by Rating

	December 31, 2008				December 31, 2007
	Net Par				Net Par
	Outstanding		%		Outstanding		%
Ratings (1):
Super senior	$	31,129	43.3	%	$	34,328	49.1	%
AAA	29,574		41.1	%	33,318		47.6	%
AA	4,032		5.6	%	1,796		2.6	%
A	3,565		5.0	%	101		0.1	%
BBB	1,734		2.4	%	368		0.5	%
Below investment grade	1,931		2.7	%	26		—
Total exposures	$	71,964	100.0	%	$	69,936	100.0	%

Distribution of Financial Guaranty Direct Credit Derivative Exposure by Sector and Average Rating

	December 31, 2008			December 31, 2007
Sector:	Net Par Outstanding		Average Rating (1)	Net Par Outstanding		Average Rating (1)
U.S. public finance
General obligation	$	417	AAA	$	431	AAA
Healthcare	100		A	—		—
Tax backed	69		BBB+	70		AAA
Investor-owned utilities	39		AAA	39		AAA
Municipal utilities	25		AAA	26		AAA
Total U.S. public finance	$	650	AA	$	565	AAA

U.S. structured finance
Pooled corporate obligations	$	29,349	AAA	$	28,229	AAA
Residential mortgage-backed and home equity	12,768		AA-	10,745		AAA
Commercial mortgage-backed securities	5,355		AAA	5,391		AAA
Commercial receivables	1,540		AA	1,584		AAA
Consumer receivables	545		AAA	695		AA+
Structured credit	351		A+	346		AAA
Insurance securitizations	100		AA	108		AAA
Other structured finance	49		AA-	643		AAA
Total U.S. structured finance	$	50,056	AA+	$	47,740	AAA

International
Residential mortgage-backed and home equity	$	7,488	AAA	$	6,032	AAA
Pooled corporate obligations	6,905		AAA	6,984		AAA
Infrastructure and pooled Infrastructure	4,933		AA+	6,404		AAA
Regulated utilities	577		AA	462		AAA
Commercial mortgage-backed securities	446		AAA	832		AAA
Future flow	224		BBB+	173		A+
Insurance securitizations	41		B	41		BBB-
Public finance	8		AAA	9		AAA
Other international structured finance	636		AAA	695		AAA
Total international	$	21,258	AAA	$	21,631	AAA

Total exposure	$	71,964	AA+	$	69,936	AAA

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

Table of Contents

Assured Guaranty Ltd.

Unrealized Gains (Losses) on Credit Default Swaps (“CDS”)

Unrealized Gains (Losses) on Credit Default Swaps (“CDS”) as of December 31, 2008

	Net Par Outstanding (in billions)		Wtd. Avg. Credit Rating	4Q-08 Unrealized Gain (Loss)			Full Year 2008 Unrealized Gain (Loss)
Asset Type
Corporate collateralized loan obligations	$	26.3	AAA	$	(29.9	)	$	271.2
Market value CDOs of corporates	3.8		AAA	(0.1		)	48.8
Trust preferred securities	6.2		AA+	(64.8		)	7.5
Total pooled corporate obligations	36.3		AAA	(94.8		)	327.4
Commercial mortgage-backed securities	5.8		AAA	(0.4		)	79.0
Residential mortgage-backed securities	20.3		AA	(46.9		)	(1.5		)
Other(4)	9.7		AA	(138.6		)	(339.2		)
Total	$	72.0	AA+	$	(280.7	)	$	65.7
Reinsurance exposures written in CDS form	3.2		AA+	(13.9		)	(27.7		)
Grand Total	$	75.1	AA+	$	(294.6	)	$	38.0

Unrealized Gains (Losses) on CDS Associated with Pooled Corporate Obligations as of December 31, 2008 (1):

	Original Subordination(5)		Current Subordination		Net Par Outstanding (in billions)		Wtd. Avg. Credit Rating	4Q-08 Unrealized Gain (Loss)			Full Year 2008 Unrealized Gain (Loss)
Asset Type
High yield corporates	36.2	%	32.3	%	$	23.1	AAA	$	(23.6	)	$	263.3
Trust preferred	46.3	%	42.6	%	6.2		AA+	(64.8		)	7.5
Market value CDOs of corporates	39.2	%	26.0	%	3.8		AAA	(0.1		)	48.8
Investment grade corporates	28.6	%	29.9	%	2.3		AAA	(2.5		)	3.8
Commercial real estate	49.1	%	49.1	%	0.8		AAA	—			7.5
CDO of CDOs (corporate)	1.7	%	4.9	%	0.1		AAA	(3.8		)	(3.4		)
Total	37.9	%	33.5	%	$	36.3	AAA	$	(94.8	)	$	327.4

Unrealized Gain on CDS Associated with Commercial Mortgage-Backed Securities by Year Issued as of December 31, 2008 (2):

	Original Subordination		Current Subordination		Net Par Outstanding (in billions)		Wtd. Avg. Credit Rating	4Q-08 Unrealized Gain (Loss)			Full Year 2008 Unrealized Gain (Loss)
Vintage
2004 and Prior	19.7	%	21.4	%	$	0.3	AAA	$	(0.4	)	$	5.1
2005	27.8	%	28.9	%	3.4		AAA	(0.2		)	50.7
2006	27.6	%	27.9	%	1.9		AAA	0.1			20.7
2007	35.8	%	35.9	%	0.2		AAA	0.1			2.4
2008	—		—		—		—	—			—
Total	27.6	%	28.5	%	$	5.8	AAA	$	(0.4	)	$	79.0

Unrealized Gain on CDS Associated with RMBS by Year Issued as of December 31, 2008 (3):

	Original Subordination		Current Subordination		Net Par Outstanding (in billions)		Wtd. Avg. Credit Rating	4Q-08 Unrealized Gain (Loss)			Full Year 2008 Unrealized Gain (Loss)
Vintage
2004 and Prior	5.2	%	12.9	%	$	0.5	A+	$	(25.6	)	$	(37.0	)
2005	24.4	%	50.4	%	5.0		AA	4.2			75.5
2006	16.4	%	23.3	%	5.8		AA+	3.8			129.7
2007	16.4	%	18.5	%	9.0		AA-	(29.4		)	(169.7		)
2008	—		—		—		—	—			—
Total	18.1	%	27.5	%	$	20.3	AA	$	(46.9	)	$	(1.5	)

Unrealized Gain on CDS Associated with RMBS by Asset Type as of December 31, 2008 (3):

	Original Subordination		Current Subordination		Net Par Outstanding (in billions)		Wtd. Avg. Credit Rating	4Q-08 Unrealized Gain (Loss)			Full Year 2008 Unrealized Gain (Loss)
Asset Type
Alt-A loans	20.3	%	23.3	%	$	6.4	A+	$	(21.6	)	$	(194.9	)
Prime first lien	10.3	%	12.2	%	8.2		AAA	(18.1		)	7.7
Subprime lien	26.9	%	54.4	%	5.7		AA-	(7.3		)	185.7
Total	18.1	%	27.5	%	$	20.3	AA	$	(46.9	)	$	(1.5	)

(1) Corporate collateralized loan obligations, market value CDOs, and trust preferred securities include all U.S. structured finance pooled corporate obligations and international pooled corporate obligations.

(2) Commercial mortgage-backed securities is comprised of commercial U.S. structured finance and commercial international mortgage backed securities.

(3) Residential mortgage-backed securities is comprised of prime and subprime U.S. mortgage-backed and home equity securities and residential international mortgage-backed and home equity securities.

(4) Other includes all other U.S. and international asset classes, such as commercial receivables and international infrastructure and pooled infrastructure securities. The unrealized loss in other is primarily attributable to a change in the call date assumption for a particular wrapped UK utility transaction and a ratings downgrade on a film securitization transaction.

(5) Represents the sum of subordinate tranches and over-collateralization and does not include any benefit from excess interest collections that may be used to absorb losses.

Table of Contents

Assured Guaranty Ltd.

CDOs of ABS Profile

(dollars in millions)

Financial Guaranty Direct Collateralized Debt Obligations of Asset-Backed Securities (CDOs of ABS)(1) Net Par Outstanding by Type of CDO, by Year Insured and by Collateral:

				Type of Collateral as a Percent of Total Pool														Ratings as of December 31, 2008
Year Insured	Legal Final Maturity(2)	Net Par Outstanding		ABS		RMBS (Includes Subprime)		Comm. MBS (CMBS)(3)		CDOs of Investment Grade Corporate		CDOs of ABS		Total Collateral Pool		U.S. Subprime First Lien RMBS		S&P	Moody’s	Original AAA Sub- ordination(6)		Original Sub- ordination Below Assured		Current Sub- ordination Below Assured

CDOs of Mezzanine ABS(3):
2001	2017	$	113.5	0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	25.1	%	25.1	%	30.3	%
2001	2016	59.7		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	28.1	%	28.1	%	40.1	%
2002	2017	102.1		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	24.6	%	24.6	%	39.6	%
2002	2017	92.9		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	22.1	%	22.1	%	31.6	%
2002	2017	88.7		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	35.0	%	35.0	%	48.0	%
2002	2017	64.8		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	24.0	%	24.0	%	34.3	%
2003	2018	118.6		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aa3	20.0	%	20.0	%	26.6	%
2003	2038	74.5		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aa2	23.0	%	38.0	%	49.7	%
2003	2018	46.5		0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aaa	63.0	%	63.0	%	66.9	%
	Subtotal:	$	761.3	0	%	0	%	100	%	0	%	0	%	100	%	0	%	AAA	Aa1	27.3	%	28.7	%	38.4	%

CDOs of High Grade ABS(4):
No CDO of ABS business written

CDOs of Pooled AAA ABS(5):
2003	2010	636.2		35	%	34	%	26	%	5	%	0	%	100	%	0	%	AAA	Aaa	0.0	%	12.5	%	12.5	%
	Subtotal:	$	636.2	35	%	34	%	26	%	5	%	0	%	100	%	0	%	AAA	Aaa	0.0	%	12.5	%	12.5	%

Total:		$	1,397.5	16	%	15	%	66	%	2	%	0	%	100	%	0	%	AAA	Aaa	14.9	%	21.4	%	26.6	%

(1) A “CDO of ABS” is a collateralized debt obligation (CDO) transaction whose collateral pool consists primarily of asset-backed securities (ABS), including mortgage-backed securities (MBS). ABS transactions securities generally represent an ownership interest in a trust that contains collateral supporting the notes. Those interests are divided into several tranches that can have varying levels of subordination, credit protection triggers and credit ratings.

(2) “Legal Final Maturity” represents the final date for payment specified in the transaction documents and does not take into account prepayments that shorten the expected maturity and weighted average life.

(3) “CDOs of Mezzanine ABS” is a market term that refers to transactions where the underlying collateral at issuance is comprised primarily of mezzanine tranches rated BBB or lower. The collateral underlying Assured’s exposure to CDOs of Mezzanine ABS is comprised of mezzanine tranches of CMBS transactions and senior unsecured debt issued by commercial property REITs. The transactions to which Assured has exposure are static pools rather than actively managed transactions, and the collateral in these static pools was originated primarily in the period from 1997-2003. The collateral underlying Assured’s exposure to CDOs of Mezzanine ABS had weighted average ratings, based on rating information as of December 31, 2008, as follows: 16% AAA, 8% AA, 13% A, 45% BBB and 18% below investment grade (BIG).

(4) “CDOs of High Grade ABS” is a market term that refers to transactions where the underlying collateral at issuance is comprised of mezzanine tranches rated single-A or higher.

(5) “CDOs of Pooled AAA ABS” is a market term that refers to transactions where the underlying collateral at issuance is comprised of the senior-most AAA rated securities. Assured’s exposure to CDOs of Pooled AAA ABS was rated, based on rating information as of December 31, 2008: 100% AAA.

(6) Represents the sum of subordinate tranches and over-collateralization and does not include any benefit from excess interest collections that may be used to absorb losses.

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Assured Guaranty Ltd.

Non-Investment Grade Exposures

As of December 31, 2008

(dollars in millions)

	Weighted Average	Net Par		Average
	Remaining Life	Outstanding		Rating (1)
Non-Investment Grade Exposures by Asset Type:

U.S. public finance
Municipal utilities	24.1	$	464	D
Tax backed	14.1	87		BB
Healthcare	15.7	71		B+
General obligation	13.1	59		B+
Transportation	15.2	22		D
Housing	12.8	3		B-
Investor-owned utilities	8.5	3		BB+
Higher education	12.2	1		BB+
Other public finance	32.5	357		BB+
Total U.S. public finance	24.7	$	1,067	B-

U.S. structured finance
Residential mortgage-backed and home equity	6.8	$	4,408	B-
Structured credit	2.0	63		BB
Pooled corporate obligations	1.8	13		B-
Consumer receivables	3.9	2		BB
Commercial receivables	1.2	0		CCC-
Other structured finance	8.8	33		B
Total U.S. structured finance	6.7	$	4,519	B-

International
Insurance securitizations	11.3	$	923	CCC-
Infrastructure and pooled infrastructure	13.6	91		B
Total international	11.5	$	1,014	CCC

Total non-investment grade exposures	10.3	$	6,600	CCC+

Non-Investment Grade Exposures Greater Than $50 Million as of December 31, 2008

	Weighted Average	Net Par		Average
	Remaining Life	Outstanding		Rating (1)
Name or Description
Deutsche Alt-A Securities Mortgage Loan 2007-2	7.6	$	1,028	BB
Countrywide Home Equity Loan Trust 2007-D	6.0	587		D
Countrywide Home Equity Loan Trust 2005-J Class 1 & 2	5.1	520		D
Deutsche Alt-A Securities Mortgage Loan 2007-3	4.1	520		BB
Ballantyne Re PLC Class A-2 Floating Rate Notes	12.8	500		D
Jefferson County Alabama Sewer	24.5	452		D
Orkney Re II, PLC	9.6	423		B
CWALT Alternative Loan Trust 2007-OA10	3.0	184		BB
Private Student Loan transaction	32.5	152		BB+
Private Student Loan transaction	28.2	110		BB+
ACE Home Equity Loan Trust 2007-SL2	2.9	108		CCC
Argent Securities Inc. 2003-W6	4.0	98		BB
Private Student Loan transaction	37.6	95		BB+
Morgan Stanley Mortgage Loan Trust 2006-5AR	4.7	89		B
SACO I Trust 2005-GP1	2.1	85		D
American Home Mortgage Assets Trust 2007-3	2.5	77		D
Bear Stearns ABS I Trust 2005-AC6	4.0	65		BB
Customer Asset Protection Company (CAPCO) Excess SIPC	2.0	63		BB
CSAB Mortgage-Backed Trust 2007-1	6.3	63		B
CWHEQ Revolving Home Equity Trust Series 2006-I	2.1	61		D
Chevy Chase Funding LLC Series 2006-2 Class A-2	3.9	57		B
Total	9.8	$	5,338	CCC+

Please refer to Glossary for description of selected types of U.S. public finance, U.S. structured finance and International obligations that the Company insures and reinsures.

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Assured Guaranty Ltd.

Closely Monitored Credits (“CMC”)

(dollars in millions)

Net Par Outstanding by Credit Monitoring Category (1)

	December 31, 2008
	Net Par Outstanding		% of total		Number of Credits in Category
Description:
Fundamentally sound risk	$	215,987	97.0	%

Closely monitored credits:
Category 1	2,967		1.3	%	51
Category 2	767		0.3	%	21
Category 3	2,889		1.3	%	54
Category 4	20		—		14
CMC Total	6,643		3.0	%	140

Other below investment grade risk	92		—		89
Total	$	222,722	100.0	%

	December 31, 2007
	Net Par Outstanding		% of total		Number of Credits in Category
Description:
Fundamentally sound risk	$	198,133	98.9	%

Closely monitored credits:
Category 1	1,288		0.6	%	36
Category 2	743		0.4	%	12
Category 3	71		—		16
Category 4	24		—		16
CMC Total	2,126		1.1	%	80

Other below investment grade risk	20		—		46
Total	$	200,279	100.0	%

(1) Assured’s surveillance department is responsible for monitoring the Company’s portfolio of credits and maintains a list of closely monitored credits. The closely monitored credits are divided into four categories: Category 1 (low priority; fundamentally sound, greater than normal risk); Category 2 (medium priority; weakening credit profile, may result in loss); Category 3 (high priority; claim/default probable, case reserve established); Category 4 (claim paid, case reserve established for future payments). The closely monitored credits include all below investment grade (BIG) exposures where there is a material amount of exposure (generally greater than $10.0 million) or a material risk of the Company incurring a loss greater than $0.5 million. The closely monitored credits also include investment grade (IG) risks where credit quality is deteriorating and where, in the view of the Company, there is significant potential that the risk quality will fall below investment grade.

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Assured Guaranty Ltd.

Largest Exposures by Sector (Part 1 of 4)

As of December 31, 2008

(dollars in millions)

25 Largest U.S. Public Finance Exposures

	Net Par
	Outstanding		Rating(1)
Credit Name:
State of California General Obligation & Leases	$	1,546	A+
State of New Jersey General Obligation & Leases	1,151		AA-
Commonwealth of Massachusetts General Obligation & Bay Transportation	1,031		A
Commonwealth of Puerto Rico General Obligation & Leases	1,008		BBB-
New York City General Obligation & Leases	983		A+
City of Chicago General Obligation & Leases	934		AA-
Los Angeles Unified School District	897		AA
State of New York General Obligation & Leases	893		A+
North Texas Toll Road Authority	890		A
Miami-Dade County Florida Aviation Authority	883		A
State of Washington General Obligation	833		AA
San Francisco Airport Commission	807		A
Denver International Airport System	794		A+
Pennsylvania State Turnpike Commission	759		A+
Chicago Public Building Commission - Chicago Board of Education	718		A
Metropolitan Transportation Authority (New York) - Transportation Revenue	718		A
District of Columbia General Obligation	708		A
Long Island Power Authority	702		A-
Florida State General Obligation	675		AAA
Port Authority of New York & New Jersey	675		AA-
Michigan State General Obligation	662		AA+
Puerto Rico Highway & Transportation Authority	638		BBB
Hawaii State General Obligation	613		AA
Miami-Dade County School Board	552		A
Florida State Department of Environmental Protect	479		A+
Total top 25 U.S. public finance exposures	$	20,549

10 Largest Healthcare Exposures

	Net Par
	Outstanding		Rating(1)	State
Credit Name:
Iowa Health System	$	418	AA-	IA
Methodist Health System	403		A	TN
Christus Health System	398		A+	TX
Fairview Hospital & Healthcare Services	280		A	MN
Essentia Health	262		A-	MN
Integris Health, Inc.	255		AA	OK
Meridian Health System Obligated Group	212		A-	NJ
Catholic Healthcare West	207		A	CA
Lifebridge Health	207		A	MD
Spartanburg Regional Healthcare System	196		AA-	SC
Total top 10 healthcare exposures	$	2,836

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Assured Guaranty Ltd.

Largest Exposures by Sector (Part 2 of 4)

As of December 31, 2008

(dollars in millions)

50 Largest U.S. Structured Finance Exposures

	Net Par			Credit
	Outstanding		Rating(1)	Enhancement
Credit Name:
Fortress Credit Investments I & II	$	1,190	AAA	25.1	%
Field Point III & IV, Limited	1,178		AA-	21.7	%
Ares Enhanced Credit Opportunities Fund	1,152		AAA	27.3	%
Deutsche Alt-A Securities Mortgage Loan 2007-2	1,028		BB	10.2	%
Discover Card Master Trust I Series A	1,000		AAA	57.5	%
Anchorage Crossover Credit Finance Ltd	875		AAA / Super senior	18.6	%
Prospect Funding I LLC	797		AAA	11.5	%
Park Avenue Receivables Company LLC	731		AAA	2.5	%
MortgageIt Securities Corp. Mortgage Loan 2007-2	672		AAA	11.2	%
280 Funding I - Class A-1 & A-2	660		AAA	39.4	%
Private RMBS Re-Remic	652		AAA	27.0	%
Applebee’s Enterprises LLC	623		BBB-	38.5	%
Sandelman Finance 2006-1 Limited	623		AA	31.5	%
Private RMBS Re-Remic	614		AAA	27.8	%
Goldentree Credit Opportunities Financing I	611		AAA	40.3	%
Private Structured Credit	600		BBB+	Private
Private RMBS Re-Remic	595		AAA	26.5	%
Private RMBS Re-Remic	595		AAA	27.2	%
CWHEQ Revolving Home Equity Loan Trust 2007-D	587		D	0.0	%
Field Point I & II, Limited	561		AA-	33.2	%
Jupiter Securitization Company	534		AAA	2.5	%
Liberty CLO Ltd	530		AAA	40.4	%
Countrywide Home Equity Loan Trust 2005-J Class 1 & 2	520		D	0.0	%
Deutsche Alt-A Securities Mortgage Loan 2007-3	520		BB	16.4	%
LIICA Holdings, LLC	495		AA	35.6	%
Shenandoah Trust Capital I Term Securities	484		A+	21.3	%
CWALT Alternative Loan Trust 2007-HY9	478		A-	8.3	%
KKR Financial CLO 2007-1	472		AAA	40.3	%
Aaa Trust 2007-2	472		A	44.4	%
Private RMBS Re-Remic	456		AA- / Super senior	25.3	%
SLM Private Credit Student Loan Trust 2007	450		AAA	10.8	%
Dow Jones CDX.IG.04 7-Year Index (II)	425		AAA / Super senior	30.3	%
Dow Jones CDX.NA.IG.4 Single Tranche Transaction	425		AAA	30.3	%
Dow Jones CDX.IG.04 7-Year Index (I)	425		AAA	30.3	%
Impac CMB Trust Series 2007-A	408		A+	8.0	%
SLM Student Loan Trust 2007	392		AAA	3.1	%
Wasatch CLO, Ltd.	389		AAA	20.7	%
Southfork CLO Ltd. Series 2005-A1 Class A1G	380		AAA	28.4	%
Newstar Credit Opportunities Funding II	380		AA / Super senior	20.5	%
Private RMBS Re-Remic	378		AAA	38.0	%
Cent CDO XI Limited	373		AAA	22.9	%
SLM Private Credit Student Loan Trust 2006	356		AAA	10.9	%
ACS 2007-1 Pass Through Trust G-1	333		A	39.2	%
Alesco Preferred Funding XIV	333		AAA	40.2	%
Dow Jones CDX.IG.08 5 Year	326		AAA	30.3	%
Comstock Funding Ltd	326		AAA	27.4	%
Mountain View CLO II	322		AAA	23.0	%
HSAM Long/Short 2007-2	315		AAA	28.9	%
United Commercial Mortgage Securities 2007-1	308		A	8.5	%
Taberna Preferred Funding VIII	305		AAA	50.0	%
Total top 50 U.S. structured finance exposures	$	27,654

(1) Assured’s internal rating. Assured’s scale is comparable to that of the nationally recognized rating agencies. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured’s AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured’s exposure or (2) Assured’s exposure benefits from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management’s opinion, causes Assured’s attachment point to be materially above the AAA attachment point.

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Assured Guaranty Ltd.

Consolidated Capital and Claims Paying Resources

(dollars in millions)

	As of December 31, 2008						As of December 31, 2007
	Assured Guaranty Corp.		Assured Guaranty Re Ltd. (1)		Consolidated		Assured Guaranty Corp.		Assured Guaranty Re Ltd. (1)		Consolidated
Statutory surplus and reserves
Unearned premium reserve (2)	$	570	$	720	$	1,290	$	302	$	629	$	931
Contingency reserve	712		—		712		582		—		582
Policyholders’ surplus	378		1,220		1,598		400		1,097		1,497
Loss & loss adjustment expense reserves (3)	15		37		52		12		18		30
Total policyholders’ surplus and reserves	$	1,675	$	1,977	$	3,652	$	1,296	$	1,744	$	3,040

Claims paying resources
Policyholders’ surplus	$	378	$	1,220	$	1,598	$	400	$	1,097	$	1,497
Contingency reserve	712		—		712		582		—		582
Qualified statutory capital	1,090		1,220		2,310		982		1,097		2,079
Unearned premium reserve (2)	570		720		1,290		302		629		931
Loss and loss adjustment expense reserves (3)	15		37		52		12		18		30
Total policyholders’ surplus and reserves	1,675		1,977		3,652		1,296		1,744		3,040
Present value of installment premium (d)	566		345		910		554		366		920
Standby line of credit/stop loss	200		200		400		280		200		480
Total claims paying resources	$	2,441	$	2,522	$	4,962	$	2,130	$	2,310	$	4,440

Net par insured outstanding	$	111,025	$	111,715	$	222,722	$	94,127	$	106,253	$	200,279
Net debt service outstanding	$	164,283	$	184,541	$	348,816	$	128,351	$	174,173	$	302,413

Ratios:
Net par insured to statutory capital	102:1		92:1		96:1		96:1		97:1		96:1
Capital ratio (4)	151:1		151:1		151:1		131:1		159:1		145:1
Financial resources ratio (5)	67:1		73:1		70:1		60:1		75:1		68:1

(1) Assured Guaranty Re Ltd. (AG Re) numbers are the Company’s estimate of U.S. statutory as the company files Bermuda statutory financial statements.

(2) Unearned premium reserve for AG Re is U.S. GAAP based, includes unearned revenues on credit derivatives and is net of prepaid reinsurance premiums.

(3) Loss and loss adjustment reserves for AG Re are U.S. GAAP based, includes loss reserves for credit derivatives and is net of reinsurance recoverable and portfolio reserves.

(4) The capital ratio is calculated by dividing net par and interest insured by qualified statutory capital.

(5) The financial resources ratio is calculated by dividing net par and interest insured by total claims paying resources.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [net present value of estimated future installment premiums in force (d)].

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Assured Guaranty Ltd.

Summary Financial and Statistical Data

(dollars in millions, except per share amounts)

	Year Ended December 31,
	2008			2007			2006			2005
GAAP Summary Income Statement Data

Gross written premiums	$	618.3		$	424.5		$	261.3		$	192.1
Net earned premiums	261.4			159.3			144.8			139.4
Realized gains and other settlements on credit derivatives	117.6			74.0			73.9			57.1
Net investment income	162.6			128.1			111.5			96.8
Total expenses	440.9			161.4			150.4			70.7
Income (loss) before provision for income taxes	112.3			(463.0		)	190.0			229.6
Net income (loss)	68.9			(303.3		)	159.7			188.4
Operating income (b)	74.5			178.0			157.2			190.0

Net income (loss) per diluted share	$	0.77		$	(4.46	)	$	2.15		$	2.53
Operating income per diluted share	$	0.84		$	2.57		$	2.12		$	2.55

Financial Ratios:
Loss and LAE ratio (e)	81.4		%	3.4		%	(3.3		)%	(35.0		)%
Expense ratio (e)	38.7		%	55.8		%	59.2		%	58.9		%
Combined ratio (e)	120.1		%	59.2		%	55.9		%	23.9		%
GAAP Summary Balance Sheet Data (End of Period)

Total investments and cash	$	3,643.6		$	3,147.9		$	2,469.9		$	2,256.0
Total assets	4,555.7			3,762.9			2,931.6			2,689.8
Unearned premium reserves	1,233.7			887.2			631.0			524.6
Loss and LAE reserves	196.8			125.6			115.9			117.4
Senior notes	197.4			197.4			197.4			197.3
Series A Enhanced Junior Subordinated Debentures	149.8			149.7			149.7			—
Shareholders’ equity	1,926.2			1,666.6			1,650.8			1,661.5
Book value per share	$	21.18		$	20.85		$	24.44		$	22.22
Other Financial Information:

Net debt service outstanding (end of period)	$	348,816		$	302,413		$	180,174		$	145,694
Gross debt service outstanding (end of period)	354,858			307,657			181,503			148,836
Net par outstanding (end of period)	222,722			200,279			132,296			102,465
Gross par outstanding (end of period)	227,164			204,809			133,303			105,258

Consolidated qualified statutory capital	2,310			2,079			1,658			1,545
Consolidated policyholders’ surplus and reserves	3,652			3,040			2,374			2,182

Ratios:
Par insured to statutory capital	96:1			96:1			80:1			66:1
Capital ratio(1)	151:1			145:1			109:1			94:1
Financial resources ratio(2)	70:1			68:1			53:1			48:1

Gross debt service written:
U.S. public finance	$	68,265		$	66,190		$	13,261		$	13,335
U.S. structured finance	13,972			42,414			28,902			16,724
International	8,840			24,971			17,979			5,729
Total gross debt service written	$	91,078		$	133,575		$	60,142		$	35,788

Net debt service written	89,871			129,872			59,775			35,440
Net par written	55,418			84,686			50,541			26,020
Gross par written	56,140			88,117			50,892			26,320

(1) The capital ratio is calculated by dividing net par and interest insured by qualified statutory capital.

(2) The financial resources ratio is calculated by dividing net par and interest insured by total claims paying resources.

Note: Please refer to endnotes for explanation of non-GAAP financial measures [operating income (b) and loss and loss adjustment expense ratio, expense ratio and combined ratio (e)].

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Assured Guaranty Ltd.

Appendix

Credit Derivatives

(dollars in millions)

As part of its financial guaranty (FG) insurance business, the Company selects, structures and sells credit protection through credit default swaps (“CDS”) in the institutional fixed income markets. The Company generates revenues through the premiums paid by third parties to insure against the risk of default on the assets underlying the CDS. In this appendix, the Company has presented the credit default swap premiums in its financial guaranty direct and financial guaranty reinsurance segments, which were included in prior period financial information in Gross written premiums, Net written premiums, Net earned premiums, Loss and loss adjustment expenses (recoveries) and Acquisition Costs. The effect of these credit derivative premiums has been included in “Realized gains and other settlements on credit derivatives” and “Unrealized gains (losses) on credit derivatives” in income statements. Management’s decision to reclassify these amounts was based on evolving financial guaranty industry practice. Management believe that this reclassification will increase comparability of its financial statements with other companies who participate in the CDS market. These reclassifications had no impact on underwriting gain (loss), loss and loss adjustment expense ratio, expense ratio, combined ratio, operating income or net income.

	1Q-07								2Q-07								3Q-07								4Q-07
Credit derivatives included in:	FG Direct			FG Reinsurance		Total FG			FG Direct			FG Reinsurance		Total FG			FG Direct			FG Reinsurance		Total FG			FG Direct			FG Reinsurance		Total FG

Gross written premiums	$	17.4		$	—	$	17.4		$	17.1		$	—	$	17.1		$	20.9		$	—	$	20.9		$	26.0		$	—	$	26.0

Net written premiums	17.0			—		17.0			16.4			—		16.4			19.9			—		19.9			25.0			—		25.0

Net earned premiums (1)	16.8			—		16.8			16.3			—		16.3			17.6			—		17.6			22.0			—		22.0

Loss and loss adjustment expenses (recoveries):
Net credit derivative losses paid (recovered) and payable (recoverable) (1)	(0.0		)	—		(0.0		)	(0.0		)	—		(0.0		)	(0.0		)	—		(0.0		)	(0.0		)	—		(0.0		)
Incurred losses on credit derivatives (2)	0.6			—		0.6			0.7			—		0.7			1.8			—		1.8			0.5			—		0.5
Total loss and loss adjustment expenses (recoveries)	0.5			—		0.5			0.7			—		0.7			1.7			—		1.7			0.5			—		0.5

Acquisition costs (1)	0.0			—		0.0			(0.1		)	—		(0.1		)	0.1			—		0.1			(0.2		)	—		(0.2		)

	1Q-08									2Q-08								3Q-08								4Q-08
Credit derivatives included in:	FG Direct			FG Reinsurance			Total FG			FG Direct		FG Reinsurance			Total FG			FG Direct		FG Reinsurance			Total FG			FG Direct		FG Reinsurance			Total FG

Gross written premiums	$	28.8		$	5.1		$	33.8		$	33.4	$	1.1		$	34.5		$	25.3	$	1.8		$	27.0		$	33.5	$	0.7		$	34.2

Net written premiums	27.6			5.1			32.7			32.3		1.1			33.4			24.2		1.8			26.0			32.3		0.7			33.0

Net earned premiums (1)	27.3			0.5			27.8			30.6		0.8			31.5			28.4		2.1			30.5			26.8		1.5			28.3

Loss and loss adjustment expenses (recoveries):
Net credit derivative losses paid (recovered) and payable (recoverable) (1)	—			—			—			—		—			—			—		—			—			—		—			—
Incurred losses on credit derivatives (2)	3.2			—			3.2			5.6		—			5.6			10.1		—			10.1			19.5		5.4			24.8
Total loss and loss adjustment expenses (recoveries)	3.2			—			3.2			5.6		—			5.6			10.1		—			10.1			19.5		5.4			24.8

Acquisition costs (1)	(0.1		)	(0.2		)	(0.2		)	0.2		(0.3		)	(0.1		)	0.2		(0.7		)	(0.5		)	0.3		(0.4		)	(0.1		)

(1) Included in “Realized gains and other settlements on credit derivatives” in income statements.

(2) Included in “Unrealized gains (losses) on credit derivatives” in income statements.

Table of Contents		Page
Selected Financial Highlights		1
Consolidated Income Statements		2
Consolidated Balance Sheets		3
Segment Consolidation		4-5
Financial Guaranty Direct Segment		6-7
Financial Guaranty Reinsurance Segment		8-9
Mortgage Guaranty Segment		10
Other Segment		11
Loss and LAE Reserves		12
Loss and Loss Adjustment Expenses		13
Investment Portfolio		14
Estimated Net Exposure Amortization		15
Estimated Net Unearned Premium Amortization and Estimated Future Installment Premiums		16
Financial Guaranty Profile		17-22
Pooled Corporate Obligations Profile		23
Consolidated Residential Mortgage-Backed Securities Profile		24-25
Financial Guaranty Direct U.S. RMBS Profile		26-28
Consumer Receivables Profile		29
Financial Guaranty Direct Credit Derivative Exposures Profile		30
Unrealized Gains (Losses) on Credit Derivatives		31
CDOs of ABS Profile		32
Non-Investment Grade Exposures		33
Closely Monitored Credits		34
Largest Exposures by Sector		35-38
Consolidated Capital and Claims Paying Resources		39
Summary Financial and Statistical Data		40
Appendix – Credit Derivatives		41
Glossary		42
Endnotes Related to Non-GAAP Financial Measures		43

	Net Par
	Outstanding
Servicer:
Countrywide Home Loans, Inc.	$	4,220
Wells Fargo Home Mortgage, Inc.	2,842
Residential Funding Corporation	2,202
Northern Rock PLC	1,883
European Mortgage Servicer (Private Transaction)	1,306
Halifax PLC	1,265
Cheltenham & Gloucester PLC	1,245
Barclays Bank PLC	1,237
EMC Mortgage Corp	1,119
AMC Mortgage Services	718
Total top 10 residential mortgage servicers exposures	$	18,037

		Contacts:

		Equity Investors and Media
		Sabra Purtill
		Managing Director, Global Communications and Investor Relations
		(212) 408-6044
		spurtill@assuredguaranty.com

		Ross Aron
		Associate, Investor Relations
		(212) 261-5509
		raron@assuredguaranty.com

Assured Guaranty Ltd.		Fixed Income Investors
30 Woodbourne Avenue		Michael Walker
Hamilton HM 08		Director, Fixed Income Investor Relations
Bermuda		(212) 261-5575
www.assuredguaranty.com		mwalker@assuredguaranty.com

		Media
		Ashweeta Durani
		Vice President, Global Communications and Media Relations
		(212) 408-6042
		adurani@assuredguaranty.com