Exhibit

EX-99.2 3 agl3q15supplement.htm AGL FINANCIAL SUPPLEMENT Exhibit

Assured Guaranty Ltd.

September 30, 2015

Financial Supplement



Table of Contents		Page
	Selected Financial Highlights	1
	Consolidated Balance Sheets (unaudited)	2
	Consolidated Statements of Operations (unaudited)	3
	Net Income (Loss) Reconciliation to Operating Income	4
	Adjusted Book Value	6
	Claims-Paying Resources	7
	New Business Production	8
	Gross Par Written	9
	New Business Production by Quarter	10
	Available-for-Sale Investment Portfolio and Cash	11
	Estimated Net Exposure Amortization and Estimated Future Net Premium and Credit Derivative Revenues	12
	Expected Amortization of Net Par Outstanding	13
	Present Value of Net Expected Loss to be Expensed	14
	Financial Guaranty Profile	15
	Exposure to Puerto Rico	19
	Direct Pooled Corporate Obligations Profile	22
	U.S. RMBS Profile	23
	Direct U.S. Commercial Real Estate Profile	24
	Below Investment Grade Exposures	25
	Largest Exposures by Sector	30
	Rollforward of Net Expected Loss and Loss Adjustment Expenses to be Paid	34
	Financial Guaranty Insurance and Credit Derivative U.S. RMBS Representations and Warranties Benefit Development	35
	Loss Expense - Non-GAAP Basis	36
	Summary Financial and Statistical Data	37
	Glossary	38
	Non-GAAP Financial Measures	41

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (‘‘AGL’’ and, together with its subsidiaries, ‘‘Assured Guaranty’’ or the ‘‘Company’’) with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K for the year ended December 31, 2014 and its Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2015, June 30, 2015 and September 30, 2015.

Some amounts in this financial supplement may not add due to rounding.

Cautionary Statement Regarding Forward Looking Statements:

Any forward looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (1) rating agency action, including a ratings downgrade, a change in outlook, the placement of ratings on watch for downgrade, or a change in rating criteria, at any time, of AGL or any of its subsidiaries, and/or of any securities AGL or any of its subsidiaries have issued, and/or of transactions that AGL’s subsidiaries have insured; (2) reduction in the amount of available insurance opportunities and/or in the demand for Assured Guaranty's insurance; (3) developments in the world’s financial and capital markets that adversely affect obligors’ payment rates, Assured Guaranty’s loss experience, or its exposure to refinancing risk in transactions (which could result in substantial liquidity claims on its guarantees); (4) the possibility that budget shortfalls or other factors will result in credit losses or impairments on obligations of state, territorial and local governments and their related authorities and public corporations that Assured Guaranty insures or reinsures; (5) the failure of Assured Guaranty to realize loss recoveries that are assumed in its expected loss estimates; (6) deterioration in the financial condition of Assured Guaranty’s reinsurers, the amount and timing of reinsurance recoverables actually received and the risk that reinsurers may dispute amounts owed to Assured Guaranty under its reinsurance agreements; (7) increased competition, including from new entrants into the financial guaranty industry; (8) rating agency action on obligors, including sovereign debtors, resulting in a reduction in the value of securities in Assured Guaranty’s investment portfolio and in collateral posted by and to Assured Guaranty; (9) the inability of Assured Guaranty to access external sources of capital on acceptable terms; (10) changes in the world’s credit markets, segments thereof, interest rates or general economic conditions; (11) the impact of market volatility on the mark-to-market of Assured Guaranty’s contracts written in credit default swap form; (12) changes in applicable accounting policies or practices; (13) changes in applicable laws or regulations, including insurance, bankruptcy and tax laws, or other governmental actions; (14) difficulties with the execution of Assured Guaranty’s business strategy; (15) loss of key personnel; (16) the effects of mergers, acquisitions and divestitures; (17) natural or man-made catastrophes; (18) other risks and uncertainties that have not been identified at this time; (19) management’s response to these factors; and (20) other risk factors identified in AGL’s filings with the SEC. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the dates on which they are made. Assured Guaranty undertakes no obligation to update publicly or review any forward looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Assured Guaranty Ltd.

Selected Financial Highlights

(dollars in millions, except per share amounts)



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Operating income reconciliation:
Operating income	$	164		$	177		$	582		$	410
Plus after-tax adjustments:
Realized gains (losses) on investments	(22		)	(10		)	(21		)	(13		)
Non-credit impairment unrealized fair value gains (losses) on credit derivatives	(3		)	161			63			37
Fair value gains (losses) on committed capital securities (CCS)	(9		)	3			7			(7		)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and loss adjustment expense (LAE) reserves	(7		)	(13		)	(7		)	(8		)
Effect of consolidating financial guaranty variable interest entities (FG VIEs)	6			37			3			137
Net income (loss)	$	129		$	355		$	627		$	556

Earnings per diluted share:
Operating income	$	1.12		$	1.05		$	3.84		$	2.31
Plus after-tax adjustments:
Realized gains (losses) on investments	(0.15		)	(0.06		)	(0.13		)	(0.07		)
Non-credit impairment unrealized fair value gains (losses) on credit derivatives	(0.02		)	0.94			0.41			0.21
Fair value gains (losses) on CCS	(0.06		)	0.01			0.04			(0.04		)
Foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves	(0.05		)	(0.07		)	(0.05		)	(0.05		)
Effect of consolidating FG VIEs	0.04			0.22			0.02			0.77
Net income (loss)	$	0.88		$	2.09		$	4.13		$	3.13

Weighted average shares outstanding
Basic shares outstanding	145.8			168.8			150.7			176.4
Diluted shares outstanding⁽¹⁾	146.5			169.7			151.6			177.4
Shares outstanding at the end of period	142.9			164.6

Effect of refundings and terminations, net
Net earned premiums from refundings and terminations	$	105		$	36		$	242		$	89
Realized gains (losses) and other settlements from credit default swaps (CDS) terminations	0			0			13			1
Operating income effect	72			24			175			60
Operating income per diluted share effect	0.50			0.14			1.16			0.34

Effective tax rate on operating income	24.1		%	27.3		%	24.3		%	26.7		%
Effective tax rate on net income	25.0		%	27.3		%	26.0		%	28.3		%

Return on equity (ROE) calculations ⁽²⁾:
ROE, excluding unrealized gain (loss) on investment portfolio	9.3		%	28.6		%	15.3		%	14.8		%
Operating ROE	11.0		%	11.7		%	13.0		%	9.0		%

New business:
Gross par written	$	4,703		$	4,177		$	12,992		$	8,704
Present value of new business production (PVP) ⁽³⁾	$	41		$	56		$	103		$	114

							As of
							September 30,			December 31,
Other information:							2015			2014
Net debt service outstanding							$	556,381		$	609,622
Net par outstanding							372,361			403,729
Claims-paying resources ⁽⁴⁾							12,439			12,189


1)	Non-GAAP diluted shares outstanding were the same as GAAP diluted shares.

2) Quarterly ROE calculations represent annualized returns.

3) Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

4) See page 7 for additional detail on claims-paying resources.

Assured Guaranty Ltd.

Consolidated Balance Sheets (unaudited)

(dollars in millions)



	As of:
	September 30,		December 31,
	2015		2014
Assets:
Investment portfolio:
Fixed maturity securities, available-for-sale, at fair value	$	10,640	$	10,491
Short-term investments, at fair value	522		767
Other invested assets	181		126
Total investment portfolio	11,343		11,384

Cash	66		75
Premiums receivable, net of commissions payable	676		729
Ceded unearned premium reserve	263		381
Deferred acquisition costs	118		121
Reinsurance recoverable on unpaid losses	89		78
Salvage and subrogation recoverable	135		151
Credit derivative assets	71		68
Deferred tax asset, net	426		260
FG VIE assets, at fair value	1,547		1,402
Other assets	300		276
Total assets	$	15,034	$	14,925

Liabilities and shareholders' equity:
Liabilities:
Unearned premium reserve	$	4,112	$	4,261
Loss and loss adjustment expense reserve	1,007		799
Reinsurance balances payable, net	61		107
Long-term debt	1,306		1,303
Credit derivative liabilities	918		963
Current income tax payable	—		5
FG VIE liabilities with recourse, at fair value	1,315		1,277
FG VIE liabilities without recourse, at fair value	167		142
Other liabilities	329		310
Total liabilities	9,215		9,167

Shareholders' equity:
Common stock	1		2
Additional paid-in capital	1,474		1,887
Retained earnings	4,066		3,494
Accumulated other comprehensive income	273		370
Deferred equity compensation	5		5
Total shareholders' equity	5,819		5,758
Total liabilities and shareholders' equity	$	15,034	$	14,925

Assured Guaranty Ltd.

Consolidated Statements of Operations (unaudited)

(dollars in millions, except per share amounts)



				Three Months Ended						Nine Months Ended
				September 30,						September 30,
				2015			2014			2015			2014
Revenues:
	Net earned premiums			$	213		$	144		$	574		$	412
	Net investment income			112			102			311			301
	Net realized investment gains (losses)			(27		)	(19		)	(20		)	(25		)
	Net change in fair value of credit derivatives:
		Realized gains (losses) and other settlements		6			(14		)	35			20
		Net unrealized gains (losses)		80			269			265			127
			Net change in fair value of credit derivatives	86			255			300			147
	Fair value gains (losses) on CCS			(15		)	4			10			(11		)
	Fair value gains (losses) on FG VIEs			2			50			0			232
	Bargain purchase gain and settlement of pre-existing relationship			—			—			214			—
	Other income (loss)			(3		)	(11		)	43			17
		Total revenues		368			525			1,432			1,073

Expenses:
	Loss and loss adjustment expenses			112			(44		)	318			54
	Amortization of deferred acquisition costs			5			4			15			12
	Interest expense			25			27			76			67
	Other operating expenses			54			50			176			165
		Total expenses		196			37			585			298

Income (loss) before income taxes				172			488			847			775
	Provision (benefit) for income taxes			43			133			220			219
Net income (loss)				$	129		$	355		$	627		$	556

Earnings per share:
	Basic			$	0.88		$	2.10		$	4.16		$	3.15
	Diluted			$	0.88		$	2.09		$	4.13		$	3.13

Assured Guaranty Ltd.

Net Income (Loss) Reconciliation to Operating Income (1 of 2)

(dollars in millions)



	Three Months Ended										Three Months Ended
	September 30, 2015										September 30, 2014
	GAAP Income Statement Line Items As Reported			Less: Operating Income Adjustments				Non-GAAP Operating Income Components			GAAP Income Statement Line Items As Reported			Less: Operating Income Adjustments				Non-GAAP Operating Income Components
Revenues:
Net earned premiums	$	213		$	(6	)	(1)	219			$	144		$	(5	)	(1)	$	149
Net investment income	112			(2		)	(1)	114			102			0			(1)	102
Net realized investment gains (losses)	(27		)	(27		)	(2)	0			(19		)	(20		)	(2)	1
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	6			6				—			(14		)	(14		)		—
Net unrealized gains (losses)	80			83				(3		)	269			269				—
Credit derivative revenues	—			(33		)		33			—			(17		)		17
Net change in fair value of credit derivatives	86			56			(3)	30			255			238			(3)	17
Fair value gains (losses) on CCS	(15		)	(15		)	(4)	—			4			4			(4)	—
Fair value gains (losses) on FG VIEs	2			2			(1)	—			50			50			(1)	—
Bargain purchase gain and settlement of pre-existing relationship	—			—				—			—			—				—
Other income (loss)	(3		)	(9		)	(1)(5)	6			(11		)	(16		)	(1)(5)	5
Total revenues	368			(1		)		369			525			251				274

Expenses:
Loss and loss adjustment expenses:
Financial guaranty insurance	112			(10		)	(1)	122			(44		)	(15		)	(1)	(29		)
Credit derivatives	—			54			(3)	(54		)	—			22			(3)	(22		)
Amortization of deferred acquisition costs	5			—				5			4			—				4
Interest expense	25			—				25			27			—				27
Other operating expenses	54			0				54			50			—				50
Total expenses	196			44				152			37			7				30

Income (loss) before income taxes	172			(45		)		217			488			244				244
Provision (benefit) for income taxes	43			(10		)	(6)	53			133			66			(6)	67
Net income (loss)	$	129		$	(35	)		$	164		$	355		$	178			$	177


1)	Include adjustments related to elimination of the effects of consolidating FG VIEs.


2)	Adjustments to eliminate realized gains (losses) on the Company's investments, except for gains and losses on securities classified as trading.


3)	Adjustments to eliminate non-economic fair value gains (losses) on credit derivatives and reclassification to revenues and loss expense.


4)	Adjustments to eliminate fair value gain (loss) on CCS.


5)	Include adjustments related to elimination of foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves.


6)	Tax effect of the above adjustments.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Net Income (Loss) Reconciliation to Operating Income (2 of 2)

(dollars in millions)



	Nine Months Ended										Nine Months Ended
	September 30, 2015										September 30, 2014
	GAAP Income Statement Line Items As Reported			Less: Operating Income Adjustments				Non-GAAP Operating Income Components			GAAP Income Statement Line Items As Reported			Less: Operating Income Adjustments				Non-GAAP Operating Income Components
Revenues:
Net earned premiums	$	574		$	(16	)	(1)	$	590		$	412		$	(27	)	(1)	$	439
Net investment income	311			(4		)	(1)	315			301			3			(1)	298
Net realized investment gains (losses)	(20		)	(20		)	(2)	0			(25		)	(28		)	(2)	3
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	35			35				—			20			20				—
Net unrealized gains (losses)	265			268				(3		)	127			127				—
Credit derivative revenues	—			(92		)		92			—			(58		)		58
Net change in fair value of credit derivatives	300			211			(3)	89			147			89			(3)	58
Fair value gains (losses) on CCS	10			10			(4)	—			(11		)	(11		)	(4)	—
Fair value gains (losses) on FG VIEs	0			0			(1)	—			232			232			(1)	—
Bargain purchase gain and settlement of pre-existing relationship	214			(35		)	(1)(3)	249			—			—				—
Other income (loss)	43			(9		)	(1)(5)	52			17			(16		)	(1)(5)	33
Total revenues	1,432			137				1,295			1,073			242				831

Expenses:
Loss and loss adjustment expenses:
Financial guaranty insurance	318			(17		)	(1)	335			54			(21		)	(1)	75
Credit derivatives	—			75			(3)	(75		)	—			48			(3)	(48		)
Amortization of deferred acquisition costs	15			—				15			12			—				12
Interest expense	76			—				76			67			—				67
Other operating expenses	176			1				175			165			—				165
Total expenses	585			59				526			298			27				271

Income (loss) before income taxes	847			78				769			775			215				560
Provision (benefit) for income taxes	220			33			(6)	187			219			69			(6)	150
Net income (loss)	$	627		$	45			$	582		$	556		$	146			$	410


1)	Include adjustments related to elimination of the effects of consolidating FG VIEs.


2)	Adjustments to eliminate realized gains (losses) on the Company's investments, except for gains and losses on securities classified as trading.


3)	Adjustments to eliminate non-economic fair value gains (losses) on credit derivatives and reclassification to revenues and loss expense.


4)	Adjustments to eliminate fair value gain (loss) on CCS.


5)	Include adjustments related to elimination of foreign exchange gains (losses) on remeasurement of premiums receivable and loss and LAE reserves.


6)	Tax effect of the above adjustments.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Adjusted Book Value

(dollars in millions, except per share amounts)



	As of:
	September 30, 2015						December 31, 2014
	Total			Per Share			Total			Per Share
Reconciliation of shareholders' equity to adjusted book value:
Shareholders' equity	$	5,819		$	40.72		$	5,758		$	36.37
Less after-tax adjustments:
Effect of consolidating FG VIEs	(38		)	(0.26		)	(44		)	(0.28		)
Non-credit impairment unrealized fair value gains (losses) on credit derivatives	(448		)	(3.14		)	(527		)	(3.33		)
Fair value gains (losses) on CCS	30			0.21			23			0.14
Unrealized gain (loss) on investment portfolio excluding foreign exchange effect	291			2.04			373			2.36
Operating shareholders' equity	5,984			41.87			5,933			37.48
After-tax adjustments:
Less: Deferred acquisition costs	148			1.04			156			0.99
Plus: Net present value of estimated net future credit derivative revenue	148			1.03			109			0.69
Plus: Net unearned premium reserve on financial guaranty contracts in excess of expected loss to be expensed	2,587			18.11			2,609			16.48
Adjusted book value	$	8,571		$	59.97		$	8,495		$	53.66

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Claims-Paying Resources

(dollars in millions)



	As of September 30, 2015
	Assured Guaranty Municipal Corp.		Assured Guaranty Corp.		Municipal Assurance Corp.		Assured Guaranty Re Ltd. ⁽¹⁰⁾		Eliminations⁽⁴⁾			Consolidated
Claims-paying resources
Policyholders' surplus	$	2,148	$	1,377	$	661	$	1,028	$	(910	)	$	4,304
Contingency reserve⁽¹⁾	1,621		1,058		330		—		(330		)	2,679
Qualified statutory capital	3,769		2,435		991		1,028		(1,240		)	6,983
Unearned premium reserve⁽¹⁾	1,603		693		493		809		(493		)	3,105
Loss and LAE reserves ^{(1) (2)}	426		100		—		316		—			842
Total policyholders' surplus and reserves	5,798		3,228		1,484		2,153		(1,733		)	10,930
Present value of installment premium⁽¹⁾	270		229		3		160		(3		)	659
CCS	200		200		—		—		—			400
Excess of loss reinsurance facility ⁽³⁾	450		450		450		—		(900		)	450
Total claims-paying resources (including proportionate MAC ownership for AGM and AGC)	6,718		4,107		1,937		2,313		(2,636		)	12,439
Adjustment for MAC ⁽⁵⁾	942		545		—		—		(1,487		)	—
Total claims-paying resources (excluding proportionate MAC ownership for AGM and AGC)	$	5,776	$	3,562	$	1,937	$	2,313	$	(1,149	)	$	12,439

Statutory net par outstanding ⁽⁶⁾	$	135,121	$	50,455	$	66,241	$	91,812	$	(1,540	)	$	342,089
Equity method adjustment ⁽⁷⁾	40,208		26,033		—		—		(66,241		)	—
Adjusted statutory net par outstanding ⁽¹⁾	$	175,329	$	76,488	$	66,241	$	91,812	$	(67,781	)	$	342,089

Net debt service outstanding ⁽⁶⁾	$	209,387	$	74,377	$	98,408	$	144,575	$	(3,342	)	$	523,405
Equity method adjustment ⁽⁷⁾	59,734		38,674		—		—		(98,408		)	—
Adjusted net debt service outstanding ⁽¹⁾	$	269,121	$	113,051	$	98,408	$	144,575	$	(101,750	)	$	523,405
Ratios:
Adjusted net par outstanding to qualified statutory capital	47:1		31:1		67:1		89:1					49:1
Capital ratio ⁽⁸⁾	71:1		46:1		99:1		141:1					75:1
Financial resources ratio ⁽⁹⁾	40:1		28:1		51:1		63:1					42:1

The numbers shown for Assured Guaranty Municipal Corp. (AGM) and Assured Guaranty Corp. (AGC) have been adjusted to include (i) their 100% share of their respective U.K. insurance subsidiaries and (ii) their indirect share of Municipal Assurance Corp. (MAC). AGM and AGC own 60.7% and 39.3%, respectively, of the outstanding stock of Municipal Assurance Holdings Inc., which owns 100% of the outstanding common stock of MAC. Amounts include financial guaranty insurance and credit derivatives.


2)	Reserves are reduced by approximately $0.2 billion for benefit related to representation and warranty recoverables.


3)	Represents an aggregate $450 million excess-of-loss reinsurance facility for the benefit of AGC, AGM and MAC, which became effective January 1, 2014. The facility terminates on January 1, 2016, unless AGC, AGM and MAC choose to extend it.

Eliminations are primarily for (i) intercompany surplus notes between AGM and AGC, and between AGM and MAC, and (ii) MAC amounts, whose proportionate share are included in AGM and AGC based on ownership percentages. Net par and net debt service outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary, and net par related to intercompany cessions from AGM and AGC to MAC.


5)	Represents adjustment for AGM's and AGC's interest and indirect ownership of MAC's total policyholders' surplus, unearned premium reserve, and loss reserves and present value of installment premium.

Net par outstanding and net debt service outstanding are presented on a statutory basis. Under statutory accounting, such amounts would be reduced both when an outstanding issue is legally defeased (i.e., an issuer has legally discharged its obligations with respect to a municipal security by satisfying conditions set forth in defeasance provisions contained in transaction documents and is no longer responsible for the payment of debt service with respect to such obligations) and when such issue is economically defeased (i.e., transaction documents for a municipal security do not contain defeasance provisions but the issuer establishes an escrow account with United States (U.S.) government securities in amounts sufficient to pay the refunded bonds when due; the refunded bonds are not considered paid and continue to be outstanding under the transaction documents and the issuer remains responsible to pay debt service when due to the extent monies on deposit in the escrow account are insufficient for such purpose).


7)	Equity method adjustment is an adjustment made to reflect AGM's and AGC's net exposure to MAC, as determined by their indirect equity ownership.


8)	The capital ratio is calculated by dividing adjusted net debt service outstanding by qualified statutory capital.


9)	The financial resources ratio is calculated by dividing adjusted net debt service outstanding by total claims-paying resources (including MAC adjustment for AGM and AGC).


10)	Assured Guaranty Re Ltd. (AG Re) numbers represent the Company's estimate of U.S. statutory accounting practices prescribed or permitted by insurance regulatory authorities, except for contingency reserves.

Assured Guaranty Ltd.

New Business Production

(dollars in millions)



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015		2014
New business production analysis:
PVP:
Public finance - U.S.	$	41		$	51		$	79	$	90
Public finance - non-U.S.	—			—			—		7
Structured finance - U.S.	0			1			19		8
Structured finance - non-U.S.	—			4			5		9
Total PVP	$	41		$	56		$	103	$	114

Reconciliation of PVP to gross written premiums (GWP):

Total PVP	$	41		$	56		$	103	$	114
Less: PVP of non-financial guaranty insurance	1			—			7		—
PVP of financial guaranty insurance	40			56			96		114
Less: Financial guaranty installment premium PVP	(1		)	4			17		25
Total: Financial guaranty upfront GWP	41			52			79		89
Plus: Installment GWP and other GAAP adjustments (1)	(1		)	(5		)	15		5
Total GWP	$	40		$	47		$	94	$	94

Gross par written:
Public finance - U.S.	$	4,703		$	4,018		$	12,725	$	8,208
Public finance - non-U.S.	—			—			—		128
Structured finance - U.S.	—			9			261		18
Structured finance - non-U.S.	—			150			6		350
Total	$	4,703		$	4,177		$	12,992	$	8,704


1)	Includes present value of new business on installment policies plus GWP adjustment on existing installment policies due to changes in assumptions and any cancellations of assumed reinsurance contracts and other GAAP adjustments.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Gross Par Written

(dollars in millions)

Gross Par Written by Asset Type



	Three Months Ended			Nine Months Ended
	September 30, 2015			September 30, 2015
	Gross Par Written		Avg. Internal Rating	Gross Par Written		Avg. Internal Rating
Sector:
U.S. public finance
General obligation	$	1,960	A-	$	6,904	A-
Tax backed	1,337		A-	2,917		A-
Municipal utilities	973		A-	1,794		A-
Transportation	142		A-	527		BBB
Higher education	185		A-	477		A
Other public finance	106		A-	106		A-
Total U.S. public finance	4,703		A-	12,725		A-
Non-U.S. public finance:
Total non-U.S. public finance	—		—	—		—
Total public finance	$	4,703	A-	$	12,725	A-

U.S. structured finance:
Insurance securitization	$	—	—	$	250	AA
Other structure finance	—		—	11		A
Total U.S. structured finance	—		—	261		AA
Non-U.S. structured finance:
Other structured finance	—		—	6		AA-
Total non-U.S. structured finance	—		—	6		AA
Total structured finance	$	—	—	$	267	AA

Total gross par written	$	4,703	A-	$	12,992	A-

Please refer to the Glossary for a description of internal ratings and sectors.

Assured Guaranty Ltd.

New Business Production by Quarter

(dollars in millions)



																			Nine Months
	1Q-14		2Q-14		3Q-14			4Q-14			1Q-15		2Q-15			3Q-15			2014		2015
PVP:
Public finance - U.S.	$	23	$	16	$	51		$	38		$	13	$	25		$	41		$	90	$	79
Public finance - non-U.S.	7		—		—			—			—		—			—			7		—
Structured finance - U.S.	1		6		1			16			18		1			0			8		19
Structured finance - non-U.S.	—		5		4			—			5		—			—			9		5
Total PVP	$	31	$	27	$	56		$	54		$	36	$	26		$	41		$	114	$	103

Reconciliation of PVP to GWP:

Total PVP	$	31	$	27	$	56		$	54		$	36	$	26		$	41		$	114	$	103
Less: PVP of non-financial guaranty insurance	—		—		—			—			6		—			1			—		7
PVP of financial guaranty insurance	31		27		56			54			30		26			40			114		96
Less: Financial guaranty installment premium PVP	10		11		4			17			17		1			(1		)	25		17
Total: Financial guaranty upfront GWP	21		16		52			37			13		25			41			89		79
Plus: Installment GWP and other GAAP adjustments	9		1		(5		)	(27		)	19		(3		)	(1		)	5		15
Total GWP	$	30	$	17	$	47		$	10		$	32	$	22		$	40		$	94	$	94

Gross par written:
Public finance - U.S.	$	1,737	$	2,453	$	4,018		$	4,067		$	2,441	$	5,581		$	4,703		$	8,208	$	12,725
Public finance - non-U.S.	128		—		—			—			—		—			—			128		—
Structured finance - U.S.	4		5		9			400			261		—			—			18		261
Structured finance - non-U.S.	—		200		150			—			6		—			—			350		6
Total	$	1,869	$	2,658	$	4,177		$	4,467		$	2,708	$	5,581		$	4,703		$	8,704	$	12,992

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Assured Guaranty Ltd.

Available-for-Sale Investment Portfolio and Cash

As of September 30, 2015

(dollars in millions)



			Amortized Cost		Pre-Tax Book Yield		After-Tax Book Yield		Fair Value		Annualized Investment Income ⁽¹⁾
Investment portfolio, available-for-sale:
Fixed maturity securities:
	Obligations of states and political subdivisions		$	5,054	3.88	%	3.60	%	$	5,294	$	196
	Insured obligations of state and political subdivisions⁽²⁾⁽⁴⁾		614		4.86	%	4.54	%	664		30
	U.S. Treasury securities and obligations of U.S. government agencies		284		1.87	%	1.32	%	295		5
	Agency obligations		165		4.33	%	3.59	%	182		7
	Corporate securities		1,403		3.72	%	2.96	%	1,436		52
	Mortgage-backed securities (MBS)⁽³⁾:
		Residential MBS (RMBS) ⁽⁴⁾	1,605		4.71	%	3.44	%	1,632		76
		Commercial MBS (CMBS)	492		3.67	%	3.02	%	511		18
	Asset-backed securities		584		4.73	%	3.18	%	590		28
	Foreign government securities		297		2.38	%	1.55	%	297		7
		Total fixed maturity securities	10,498		3.99	%	3.37	%	10,901		419
Short-term investments			521		10.96	%	7.12	%	517		57
Cash ⁽⁵⁾			66		—	%	—	%	66		—
		Total	$	11,085	4.32	%	3.55	%	$	11,484	$	476

Less: FG VIEs			251		5.11	%	3.32	%	256		13

		Total	$	10,834	4.30	%	3.56	%	$	11,228	$	463



Ratings⁽⁶⁾:			Fair Value		% of Portfolio
	U.S. Treasury securities and obligations of U.S. government agencies		$	295	2.7	%
	Agency obligations		182		1.7	%
	AAA/Aaa		1,186		10.9	%
	AA/Aa		5,972		54.8	%
	A/A		2,215		20.3	%
	BBB		51		0.4	%
	Below-investment-grade (BIG)⁽⁷⁾		971		8.9	%
	Not rated		29		0.3	%
		Total fixed maturity securities, available-for-sale	10,901		100.0	%

	Less: FG VIEs		261

		Total fixed maturity securities, available-for-sale	$	10,640


Duration of fixed maturity securities and short-term investments (in years):					5.5

Average ratings of fixed maturity securities and short-term investments					AA-


1)	Represents annualized investment income based on amortized cost and pre-tax book yields.


2)	Reflects obligations of state and local political subdivisions that have been insured by other financial guarantors. The underlying ratings of these bonds, after giving effect to the lower of the rating assigned by Standard & Poor's Ratings Services (S&P) or Moody's Investors Service, Inc. (Moody's), average A+. Includes fair value of $158 million insured by AGC and AGM.


3)	Includes fair value of $336 million in subprime RMBS, which has an average rating of BIG.


4)	Includes securities purchased or obtained as part of loss mitigation or other risk management strategies.


5)	Represents operating cash and is not included in yield calculations.


6)	Ratings are represented by the lower of the Moody's and S&P classifications except for bonds purchased for loss mitigation (loss mitigation bonds) or other risk management strategies which use internal ratings classifications.


7)	Includes below investment grade securities that were purchased or obtained as part of loss mitigation or other risk management strategies of $1,916 million in par with carrying value of $960 million.

Assured Guaranty Ltd.

Estimated Net Exposure Amortization⁽¹⁾ and Estimated Future Net Premium

and Credit Derivative Revenues

(dollars in millions)



						Financial Guaranty Insurance ⁽²⁾
		Estimated Net Debt Service Amortization		Estimated Ending Net Debt Service Outstanding		Expected PV Net Earned Premiums		Accretion of Discount		Future Net Premiums Earned ⁽³⁾		Future Credit Derivative Revenues ⁽⁴⁾		Total

2015 (as of September 30)				$	556,381
2015 Q4		$	13,091	543,290		$	104	$	5	$	109	$	31	$	140
2016		50,157		493,133		396		19		415		118		533
2017		50,119		443,014		346		18		364		31		395
2018		33,493		409,521		310		16		326		14		340
2019		28,761		380,760		282		15		297		13		310

2015-2019		175,621		380,760		1,438		73		1,511		207		1,718
2020-2024		127,214		253,546		1,094		58		1,152		54		1,206
2025-2029		101,080		152,466		692		36		728		37		765
2030-2034		72,018		80,448		417		20		437		31		468
After 2034		80,448		—		334		15		349		21		370
	Total	$	556,381			$	3,975	$	202	$	4,177	$	350	$	4,527


1)	Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of September 30, 2015. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed obligations and because of management's assumptions on structured finance amortization.


2)	See page 14 for ‘‘Present Value of Financial Guaranty Insurance Net Expected Loss to be Expensed.’’


3)	Includes $125 million in future net premiums earned related to FG VIEs.


4)	Excludes contracts with credit impairment.

Assured Guaranty Ltd.

Expected Amortization of Net Par Outstanding

(dollars in millions)

Structured Finance



		Estimated Net Par Amortization
		U.S. and Non-U.S. Pooled Corporate		U.S. RMBS		Financial Products			Other Structured Finance		Total		Estimated Ending Net Par Outstanding

2015 (as of September 30)													$	41,526
2015 Q4		$	927	$	366	$	6		$	473	$	1,772	39,754
2016		5,056		1,286		140			1,351		7,833		31,921
2017		10,679		1,117		55			817		12,668		19,253
2018		1,039		953		(22		)	644		2,614		16,639
2019		609		1,065		9			631		2,314		14,325

2015-2019		18,310		4,787		188			3,916		27,201		14,325
2020-2024		683		2,378		140			2,359		5,560		8,765
2025-2029		507		694		524			1,211		2,936		5,829
2030-2034		752		163		792			716		2,423		3,406
After 2034		1,581		378		267			1,180		3,406		—
	Total structured finance	$	21,833	$	8,400	$	1,911		$	9,382	$	41,526

Public Finance



		Estimated Net Par Amortization		Estimated Ending Net Par Outstanding

2015 (as of September 30)				$	330,835
2015 Q4		$	7,197	323,638
2016		26,819		296,819
2017		23,276		273,543
2018		17,777		255,766
2019		14,127		241,639

2015-2019		89,196		241,639
2020-2024		70,284		171,355
2025-2029		63,311		108,044
2030-2034		48,591		59,453
After 2034		59,453		—
	Total public finance	$	330,835

Net par outstanding (end of period)



		1Q-14		2Q-14		3Q-14		4Q-14		1Q-15		2Q-15		3Q-15
Public finance - U.S.		$	346,428	$	338,956	$	329,225	$	322,123	$	313,444	$	312,182	$	300,732
Public finance - non-U.S.		34,826		35,408		33,487		31,359		29,619		32,319		30,103
Structured finance - U.S.		55,393		51,442		44,874		41,171		38,430		38,906		35,435
Structured finance - non-U.S.		12,978		11,770		10,429		9,076		7,606		6,977		6,091
	Net par outstanding	449,625		437,576		418,015		403,729		389,099		390,384		372,361

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Present Value (PV) of Net Expected Loss to be Expensed

As of September 30, 2015

(dollars in millions)



		Net Expected Loss to be Expensed ⁽¹⁾
		Operating⁽²⁾		GAAP⁽²⁾

2015 Q4		$	13	$	7
2016		110		38
2017		45		31
2018		37		29
2019		35		28

2015-2019		240		133
2020-2024		123		104
2025-2029		84		75
2030-2034		59		51
After 2034		30		24
	Total expected PV of net expected loss to be expensed	536		387
Discount		441		406
	Total expected future loss and LAE	$	977	$	793


1)	The present value of net expected loss to be paid is discounted using weighted-average risk free rates ranging from 0.0% to 3.34% for U.S. dollar denominated obligations.


2)	Net expected loss to be expensed for GAAP reported income is different than operating income, a non-GAAP financial measure, by the amount related to consolidated FG VIEs and credit derivatives.

Assured Guaranty Ltd.

Financial Guaranty Profile (1 of 4)

(dollars in millions)

Net Par Outstanding and Average Rating by Asset Type



			September 30, 2015			December 31, 2014
			Net Par Outstanding		Avg. Internal Rating	Net Par Outstanding		Avg. Internal Rating
U.S. public finance:
	General obligation		$	130,770	A	$	140,276	A
	Tax backed		59,130		A	62,525		A
	Municipal utilities		47,497		A	52,090		A
	Transportation		24,763		A	27,823		A
	Healthcare		15,370		A	14,848		A
	Higher education		12,321		A	13,099		A
	Infrastructure finance		4,313		BBB	4,181		BBB
	Housing		2,188		A	2,779		A+
	Investor-owned utilities		936		A-	944		A-
	Other public finance		3,444		A	3,558		A
		Total U.S. public finance	300,732		A	322,123		A
Non-U.S. public finance:
	Infrastructure finance		12,366		BBB	12,808		BBB
	Regulated utilities		10,481		BBB+	10,914		BBB+
	Pooled infrastructure		2,277		AA	2,420		AA
	Other public finance		4,979		A	5,217		A
		Total non-U.S. public finance	30,103		BBB+	31,359		BBB+
Total public finance			$	330,835	A	$	353,482	A

U.S. structured finance:
	Pooled corporate obligations		$	17,717	AA+	$	20,646	AAA
	RMBS		8,400		BBB	9,417		BBB-
	Insurance securitizations		3,000		A+	3,433		A-
	Consumer receivables		2,112		A-	2,099		BBB+
	Financial products		1,911		AA-	2,276		AA-
	CMBS and other commercial real estate related exposures		1,130		AAA	1,957		AAA
	Commercial receivables		442		BBB+	560		BBB+
	Structured credit		71		BBB	69		BB
	Other structured finance		652		AA	714		AA
		Total U.S. structured finance	35,435		AA-	41,171		AA-

Non-U.S. structured finance:
	Pooled corporate obligations		4,116		AA	6,604		AA+
	Commercial receivables		811		BBB	944		BBB
	RMBS		535		BBB+	794		A
	Structured credit		6		BBB+	9		BBB+
	Other structured finance		623		AA-	725		AA
		Total non-U.S. structured finance	6,091		AA-	9,076		AA
Total structured finance			$	41,526	AA-	$	50,247	AA-

Total			$	372,361	A	$	403,729	A

Please refer to the Glossary for an explanation of the presentation of net par outstanding and in the Company's internal rating approach, and of the various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (2 of 4)

As of September 30, 2015

(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio



		Public Finance - U.S.				Public Finance - Non-U.S.				Structured Finance - U.S.					Structured Finance - Non-U.S.				Total
Ratings:		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding			%		Net Par Outstanding		%		Net Par Outstanding		%
AAA		$	3,067	1.0	%	$	702	2.4	%	$	16,730	(3)	47.2	%	$	3,028	49.7	%	$	23,527	6.3	%
AA		73,224		24.3		2,416		8.0		8,624			24.3		322		5.3		84,586		22.7
A		168,963		56.2		6,906		22.9		2,279			6.5		332		5.4		178,480		48.0
BBB		45,998		15.3		18,565		61.7		1,744			4.9		1,850		30.4		68,157		18.3
BIG		9,480		3.2		1,514		5.0		6,058			17.1		559		9.2		17,611		4.7
	Net Par Outstanding (1)(2)	$	300,732	100.0	%	$	30,103	100.0	%	$	35,435		100.0	%	$	6,091	100.0	%	$	372,361	100.0	%


1)	Excludes $1.6 billion of loss mitigation securities insured and held by the Company as of September 30, 2015, which are primarily BIG.


2)	The September 30, 2015 amounts include $12.4 billion of net par acquired from Radian Asset.


3)	Includes $1,351 million net par in the form of CDS that was upgraded from BIG as of September 30, 2015, in anticipation of the termination of such CDS that occurred early in the fourth quarter of 2015. In the fourth quarter of 2015, the exposure will be removed.

Please refer to the Glossary for an explanation of the presentation of net par outstanding and in the Company's internal rating approach, and of the various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (3 of 4)

As of September 30, 2015

(dollars in millions)

Geographic Distribution of Financial Guaranty Portfolio



			Net Par Outstanding		% of Total
U.S.:
U.S. public finance:
	California		$	48,299	13.0	%
	Pennsylvania		24,616		6.6
	Texas		24,274		6.5
	New York		23,260		6.2
	Illinois		22,045		5.9
	Florida		17,724		4.8
	New Jersey		13,932		3.7
	Michigan		11,208		3.0
	Ohio		7,505		2.0
	Georgia		7,128		1.9
	Other states and U.S. territories		100,741		27.1
		Total public finance	300,732		80.7
U.S. structured finance:			35,435		9.5
		Total U.S.	336,167		90.2

Non-U.S.:
	United Kingdom		18,828		5.1
	Australia		3,617		1.0
	Canada		3,117		0.8
	France		2,460		0.7
	Italy		1,363		0.4
	Other		6,809		1.8
		Total non-U.S.	36,194		9.8

Total net par outstanding			$	372,361	100.0	%

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Financial Guaranty Profile (4 of 4)

As of September 30, 2015

(dollars in millions)

Net Direct Economic Exposure to Selected European Countries



			Hungary		Italy		Portugal		Spain		Total
Sovereign and sub-sovereign exposure:
	Non-infrastructure public finance		$	—	$	815	$	89	$	256	$	1,160
	Infrastructure finance		279		11		—		123		413
		Total sovereign and sub-sovereign exposure	279		826		89		379		1,573
Non-sovereign exposure:
	Regulated utilities		—		218		—		—		218
	RMBS and other structured finance		176		254		—		13		443
		Total non-sovereign exposure	176		472		—		13		661
		Total	$	455	$	1,298	$	89	$	392	$	2,234

		Total BIG	$	385	$	—	$	89	$	392	$	866

Note: While the Company’s exposures are shown in U.S. dollars, the obligations the Company insures are in various currencies, primarily Euros. One of the residential mortgage-backed securities included in the table above includes residential mortgages in both Italy and Germany, and only the portion of the transaction equal to the portion of the original mortgage pool in Italian mortgages is shown in the table.

Please refer to the Glossary for an explanation of the Company's net par outstanding, internal rating approach and of the various sectors.

Assured Guaranty Ltd.

Exposure to Puerto Rico (1 of 3)

As of September 30, 2015

(dollars in millions)

Exposure to Puerto Rico



	Gross Par Outstanding		Net Par Outstanding		Gross Debt Service Outstanding		Net Debt Service Outstanding
Previously Subject to the Voided Puerto Rico Public Corporation Debt Enforcement and Recovery Act (the "Recovery Act")⁽¹⁾	$	2,965	$	2,575	$	5,164	$	4,541
Not Previously Subject to the Voided Recovery Act	2,833		2,516		4,520		4,100
Total	$	5,798	$	5,091	$	9,684	$	8,641


1)	On February 6, 2015, the U.S. District Court for the District of Puerto Rico ruled that the Recovery Act is preempted by the Federal Bankruptcy Code and is therefore void, and on July 6, 2015, the U.S. Court of Appeals for the First Circuit upheld that ruling.

Net Exposure to Puerto Rico by Risk



	Net Par Outstanding
	AGM Consolidated		AGC Consolidated		AG Re Consolidated		Eliminations (1)			Total Net Par Outstanding (2)(3)		Gross Par Outstanding		Internal Rating
Exposures Previously Subject to the Voided Recovery Act:
Puerto Rico Highways and Transportation Authority (Transportation revenue)	$	289	$	475	$	225	$	(80	)	$	909	$	936	CCC-
Puerto Rico Electric Power Authority	431		74		239		—			744		902		CC
Puerto Rico Aqueduct and Sewer Authority	—		296		92		—			388		388		CCC
Puerto Rico Highways and Transportation Authority (Highway revenue)	219		101		50		—			370		575		CCC
Puerto Rico Convention Center District Authority	—		82		82		—			164		164		CCC-
Total	939		1,028		688		(80		)	2,575		2,965

Exposures Not Previously Subject to the Voided Recovery Act:
Commonwealth of Puerto Rico - General Obligation Bonds	720		417		483		—			1,620		1,747		CCC
Puerto Rico Municipal Finance Agency	206		65		116		—			387		571		CCC-
Puerto Rico Sales Tax Financing Corporation	261		—		8		—			269		269		CCC+
Puerto Rico Public Buildings Authority	14		137		37		—			188		194		CCC
Government Development Bank for Puerto Rico	—		33		—		—			33		33		CCC
Puerto Rico Infrastructure Financing Authority	—		10		8		—			18		18		CCC-
University of Puerto Rico	—		1		—		—			1		1		CCC-
Total	1,201		663		652		—			2,516		2,833
Total net exposure to Puerto Rico	$	2,140	$	1,691	$	1,340	$	(80	)	$	5,091	$	5,798


1)	Net par outstanding eliminations relate to second-to-pay policies under which an Assured Guaranty insurance subsidiary guarantees an obligation already insured by another Assured Guaranty insurance subsidiary.


2)	Reported figures reflect the impact of the Radian Asset acquisition, which increased net par by $385 million as of September 30, 2015; and a commutation of previously ceded Puerto Rico exposures.

Includes exposure to Capital Appreciation Bonds with a current aggregate net par outstanding of $32 million and a fully accreted net par at maturity of $67 million. Of these amounts, current net par of $17 million and fully accreted net par at maturity of $50 million relate to the Puerto Rico Sales Tax Financing Corporation, current net par of $10 million and fully accreted net par at maturity of $11 million relate to the Puerto Rico Highway and Transportation Authority, and current net par of $4 million and fully accreted net par at maturity of $5 million relate to the Commonwealth General Obligation Bonds.

Assured Guaranty Ltd.

Exposure to Puerto Rico (2 of 3)

As of September 30, 2015

(dollars in millions)

Amortization Schedule of Net Par Outstanding of Puerto Rico



	Scheduled Net Par Amortization (1)(2)
	2015 (4Q)		2016			2017			2018			2019			2020			2021			2022			2023		2024		2025 -2029			2030 -2034		2035 -2039			2040 -2044		2045 -2047		Total

Exposures Previously Subject to the Voided Recovery Act:
Puerto Rico Highways and Transportation Authority (Transportation revenue)	$	0	$	32		$	36		$	42		$	28		$	23		$	18		$	19		$	21	$	1	$	148		$	166	$	293		$	82	$	—	$	909
Puerto Rico Electric Power Authority	0		20			5			4			25			42			22			22			81		78		319			122		4			—		—		744
Puerto Rico Aqueduct and Sewer Authority	—		15			—			—			—			—			—			—			—		2		109			—		1			15		246		388
Puerto Rico Highways and Transportation Authority (Highway revenue)	—		20			10			10			21			22			26			6			8		8		24			142		73			—		—		370
Puerto Rico Convention Center District Authority	—		11			—			—			—			—			—			—			—		—		19			76		58			—		—		164
Total	0		98			51			56			74			87			66			47			110		89		619			506		429			97		246		2,575

Exposures Not Previously Subject to the Voided Recovery Act:
Commonwealth of Puerto Rico - General Obligation Bonds	0		142			95			75			82			137			16			37			15		73		286			397		265			—		—		1,620
Puerto Rico Municipal Finance Agency	—		55			47			47			44			37			33			33			16		12		59			4		—			—		—		387
Puerto Rico Sales Tax Financing Corporation	0		(1		)	(1		)	(1		)	(1		)	(1		)	(2		)	(2		)	1		0		(10		)	34		(1		)	254		—		269
Puerto Rico Public Buildings Authority	—		8			30			—			5			10			12			0			7		0		60			38		18			—		—		188
Government Development Bank for Puerto Rico	33		—			—			—			—			—			—			—			—		—		—			—		—			—		—		33
Puerto Rico Infrastructure Financing Authority	—		—			—			2			—			—			—			—			2		—		—			—		2			12		—		18
University of Puerto Rico	—		0			0			0			0			0			0			0			0		0		0			1		—			—		—		1
Total	33		204			171			123			130			183			59			68			41		85		395			474		284			266		—		2,516
Total net par for Puerto Rico	$	33	$	302		$	222		$	179		$	204		$	270		$	125		$	115		$	151	$	174	$	1,014		$	980	$	713		$	363	$	246	$	5,091


1)	Reported figures reflect the impact of the Radian Asset acquisition, which increased net par by $385 million as of September 30, 2015; and a commutation of previously ceded Puerto Rico exposures.

Assured Guaranty Ltd.

Exposure to Puerto Rico (3 of 3)

As of September 30, 2015

(dollars in millions)

Amortization Schedule of Net Debt Service Outstanding of Puerto Rico



	Scheduled Net Debt Service Amortization (1)(2)
	2015 (4Q)		2016		2017		2018		2019		2020		2021		2022		2023		2024		2025 -2029		2030 -2034		2035 -2039		2040 -2044		2045 -2047		Total

Exposures Previously Subject to the Voided Recovery Act:
Puerto Rico Highways and Transportation Authority (Transportation revenue)	$	0	$	80	$	82	$	86	$	69	$	63	$	56	$	57	$	58	$	37	$	314	$	295	$	356	$	89	$	—	$	1,642
Puerto Rico Electric Power Authority	2		55		38		37		58		74		52		50		109		102		389		136		5		—		—		1,107
Puerto Rico Aqueduct and Sewer Authority	—		35		19		19		19		19		19		19		19		21		191		68		71		82		272		873
Puerto Rico Highways and Transportation Authority (Highway revenue)	—		40		29		29		39		39		42		20		21		21		86		186		77		—		—		629
Puerto Rico Convention Center District Authority	—		19		7		7		7		7		7		7		7		7		52		103		60		—		—		290
Total	2		229		175		178		192		202		176		153		214		188		1,032		788		569		171		272		4,541

Exposures Not Previously Subject to the Voided Recovery Act:
Commonwealth of Puerto Rico - General Obligation Bonds	0		226		172		146		150		201		73		93		69		127		506		548		295		—		—		2,606
Puerto Rico Municipal Finance Agency	—		74		64		62		56		47		40		39		21		16		68		4		—		—		—		491
Puerto Rico Sales Tax Financing Corporation	0		12		13		13		13		13		13		13		16		15		63		106		64		284		—		638
Puerto Rico Public Buildings Authority	—		18		39		8		12		18		20		6		14		6		82		50		20		—		—		293
Government Development Bank for Puerto Rico	34		—		—		—		—		—		—		—		—		—		—		—		—		—		—		34
Puerto Rico Infrastructure Financing Authority	—		—		1		3		1		1		1		1		3		—		4		4		5		13		—		37
University of Puerto Rico	—		0		0		0		0		0		0		0		0		0		0		1		—		—		—		1
Total	34		330		289		232		232		280		147		152		123		164		723		713		384		297		—		4,100
Total net debt service for Puerto Rico	$	36	$	559	$	464	$	410	$	424	$	482	$	323	$	305	$	337	$	352	$	1,755	$	1,501	$	953	$	468	$	272	$	8,641


1)	Reported figures reflect the impact of the Radian Asset acquisition, which increased net debt service outstanding by $633 million as of September 30, 2015; and a commutation of previously ceded Puerto Rico exposures.

Assured Guaranty Ltd.

Direct Pooled Corporate Obligations Profile

As of September 30, 2015

(dollars in millions)

Distribution of Direct Pooled Corporate Obligations by Ratings



			Net Par Outstanding		% of Total		Avg. Initial Credit Enhancement		Avg. Current Credit Enhancement
Ratings:
	AAA		$	15,004	69.3	%	25.3	%	29.0	%
	AA		3,010		13.9		44.3		47.9
	A		828		3.8		47.1		49.3
	BBB		1,323		6.1		41.6		37.3
	BIG		1,496		6.9		35.6		20.7
		Total exposures	$	21,661	100.0	%	30.2	%	32.3	%

Distribution of Direct Pooled Corporate Obligations by Asset Class



			Net Par Outstanding		% of Total		Avg. Initial Credit Enhancement		Avg. Current Credit Enhancement		Avg. Rating
Asset class:
	CBOs/CLOs		$	8,070	37.3	%	30.7	%	40.0	%	AAA
	Synthetic investment grade pooled corporates		7,119		32.9		21.7		19.4		AAA
	Market value CDOs of corporates		1,113		5.1		17.0		10.5		AAA
	Trust preferred
		Banks and insurance	2,909		13.4		45.5		45.2		A+
		U.S. mortgage and real estate investment trusts	1,168		5.4		49.6		44.8		BBB-
		European mortgage and real estate investment trusts	571		2.6		36.6		35.0		BBB-
	Other pooled corporates		711		3.3		—		—		BBB
		Total exposures	$	21,661	100.0	%	30.2	%	32.3	%	AA+

Please refer to the Glossary for an explanation of internal ratings, performance indicators and sectors.

Assured Guaranty Ltd.

U.S. RMBS Profile

As of September 30, 2015

(dollars in millions)

Distribution of Consolidated U.S. RMBS by Rating and Type of Exposure



Ratings:			Prime First Lien		Closed-End Second Lien		HELOC		Alt-A First Lien		Option ARMs		Subprime First Lien		Total Net Par Outstanding
	AAA		$	9	$	—	$	0	$	1,018	$	49	$	1,535	$	2,611
	AA		101		74		43		334		104		753		1,409
	A		1		0		1		—		0		39		41
	BBB		42		—		51		15		4		95		208
	BIG		312		128		1,382		822		151		1,336		4,130
		Total exposures	$	465	$	202	$	1,476	$	2,189	$	307	$	3,759	$	8,400

Distribution of U.S. RMBS by Year Insured and Type of Exposure



Year insured:	Prime First Lien		Closed-End Second Lien		HELOC		Alt-A First Lien		Option ARMs		Subprime First Lien		Total Net Par Outstanding
2004 and prior	$	59	$	0	$	118	$	58	$	18	$	1,095	$	1,349
2005	134		—		370		468		38		185		1,195
2006	89		52		436		204		39		758		1,578
2007	183		150		551		1,111		181		1,652		3,828
2008	—		—		—		349		32		69		450
Total exposures	$	465	$	202	$	1,476	$	2,189	$	307	$	3,759	$	8,400

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of performance indicators and sectors.

Assured Guaranty Ltd.

Direct U.S. Commercial Real Estate Profile

As of September 30, 2015

(dollars in millions)

Distribution of Direct U.S. CMBS Insured January 1, 2005 or Later by Exposure Type, Internal Rating, Average Pool Factor, Subordination, Cumulative Losses and 60+ Day Delinquencies

U.S. CMBS



Rating:			Net Par Outstanding		Pool Factor		Subordination		Cumulative Losses		60+ Day Delinquencies		Number of Transactions
	AAA		$	559	56.7	%	46.5	%	6.2	%	10.1	%	63
	AA		—		—		—		—		—		—
	A		—		—		—		—		—		—
	BBB		—		—		—		—		—		—
	BIG		—		—		—		—		—		—
		Total exposures	$	559	56.7	%	46.5	%	6.2	%	10.1	%	$	63

CDOs of U.S. Commercial Real Estate⁽¹⁾



	Net Par Outstanding		Avg. Initial Credit Enhancement		Avg. Current Credit Enhancement
CDOs of commercial real estate	$	138	53.4	%	62.5	%
CDOs of CMBS (2)	430		7.0	%	7.0	%
Total Exposure	$	568	18.3	%	20.5	%


1)	Represents other U.S. Commercial Real Estate not included in the table above.


2)	In October 2015, the Company terminated this transaction.

Please refer to the Glossary for a description of net par outstanding, performance indicators and sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (1 of 5)

(dollars in millions)

BIG Exposures by Asset Exposure Type



			BIG Net Par Outstanding
			September 30, 2015		December 31, 2014
U.S. public finance:
	General obligation		$	3,207	$	2,537
	Tax backed		2,552		2,033
	Infrastructure finance		1,674		1,795
	Municipal utilities		1,252		1,236
	Healthcare		351		57
	Higher education		247		14
	Transportation		86		75
	Housing		19		2
	Other public finance		92		101
		Total U.S. public finance	9,480		7,850
Non-U.S. public finance:
	Infrastructure finance		1,169		1,074
	Other public finance		345		330
		Total non-U.S. public finance	1,514		1,404
Total public finance			$	10,994	$	9,254

U.S. structured finance:
	RMBS		$	4,130	$	5,643
	Pooled corporate obligations		1,204		1,333
	Consumer receivables		312		356
	Insurance securitizations		216		598
	Commercial receivables		79		94
	Structured credit		8		69
	Other structured finance		109		93
		Total U.S. structured finance	6,058		8,186
Non-U.S. structured finance:
	Pooled corporate obligations		387		623
	RMBS		106		112
	Commercial receivables		66		72
		Total non-U.S. structured finance	559		807
Total structured finance			$	6,617	$	8,993
Total BIG net par outstanding			$	17,611	$	18,247

Please refer to the Glossary for an explanation of the Company's presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (2 of 5)

(dollars in millions)

Net Par Outstanding by BIG Category⁽¹⁾



				Financial Guaranty Insurance and Credit Derivatives Surveillance Categories
				September 30, 2015		December 31, 2014
Category 1
	U.S. public finance			$	7,132	$	6,577
	Non-U.S. public finance			913		1,402
	U.S. structured finance			2,239		3,124
	Non-U.S. structured finance			515		762
		Total Category 1		10,799		11,865
Category 2
	U.S. public finance			2,212		1,156
	Non-U.S. public finance			601		2
	U.S. structured finance			1,163		1,486
	Non-U.S. structured finance			44		45
		Total Category 2		4,020		2,689
Category 3
	U.S. public finance			136		117
	Non-U.S. public finance			—		—
	U.S. structured finance			2,656		3,576
	Non-U.S. structured finance			—		—
		Total Category 3		2,792		3,693
			BIG Total	$	17,611	$	18,247

Assured Guaranty's surveillance department is responsible for monitoring our portfolio of credits and maintains a list of BIG credits. BIG Category 1: Below-investment-grade transactions showing sufficient deterioration to make future losses possible, but for which none are currently expected. BIG Category 2: Below-investment-grade transactions for which future losses are expected but for which no claims (other than liquidity claims which is a claim that the Company expects to be reimbursed within one year) have yet been paid. BIG Category 3: Below-investment-grade transactions for which future losses are expected and on which claims (other than liquidity claims) have been paid.

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (3 of 5)

As of September 30, 2015

(dollars in millions)

Public Finance BIG Exposures with Revenue Sources Greater Than $50 Million



			Net Par Outstanding		Internal Rating
Name or description
U.S. public finance:
		Puerto Rico General Obligation, Appropriations and Guarantees of the Commonwealth	$	1,859	CCC
		Puerto Rico Highway and Transportation Authority	1,279		CCC-
		Skyway Concession Company LLC	1,269		BB
		Puerto Rico Electric Power Authority	744		CC
		Puerto Rico Aqueduct & Sewer Authority	388		CCC
		Puerto Rico Municipal Finance Agency	387		CCC-
		Louisville Arena Authority Inc.	337		BB
		Puerto Rico Sales Tax Financing Corporation	269		CCC+
		Lackawanna County, Pennsylvania	174		BB-
		Puerto Rico Convention Center District Authority	164		CCC-
		Woonsocket (City of), Rhode Island	140		BB
		Stockton City, California	115		D
		Wayne County, Michigan	101		BB-
		Ebert Metropolitan District, CO Limited Tax General Obligation Bonds	87		B+
		Orlando Tourist Development Tax - Florida	86		B
		Atlantic City, New Jersey	84		BB
		Xenia Rural Water District, Iowa	77		B
		Knox Hills, LLC (Certificates of Participation; Fort Knox Military Housing Privatization Project, Class 1-A and Class 1-B)	65		B
		Pennsylvania Economic Development Financing Authority (Capitol Region Parking System)	60		BB
		Emerson Hospital, Massachusetts	57		BB+
		Robert Wood Johnson Health Care Corp at Hamilton	54		B+
		Southlands Metropolitan District No. 1, Colorado	54		BB
		Pacific Lutheran University, Washington	53		BB+
		University of the Arts, Pennsylvania Higher Educational Facilities Authority	53		BB
	Total		$	7,956

Non-U.S. public finance:
		Reliance Rail Finance Pty. Limited	$	598	BB
		M6 Duna Autopalya Koncesszios Zartkoruen Mukodo Reszvenytarsasag	279		BB-
		Valencia Fair	246		BB-
		Autovia de la Mancha, S.A.	117		BB-
		CountyRoute (A130) plc	112		BB-
		Metropolitano de Porto Lease and Sublease of Railroad Equipment	56		B+
		Alte Liebe I Limited (Wind Farm)	51		BB
	Total		$	1,459
Total			$	9,415

Please refer to the Glossary for an explanation of the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (4 of 5)

As of September 30, 2015

(dollars in millions)

Structured Finance BIG Exposures Greater Than $50 Million



	BIG Net Par Outstanding		Internal Rating	Current Credit Enhancement	60+ Day Delinquencies
Name or description
U.S. structured finance:
RMBS:
Option One 2007-FXD2	$	279	CCC	0.0%	21.1%
MABS 2007-NCW	243		CCC	1.5%	42.8%
Countrywide HELOC 2006-I	238		BB	0.0%	2.4%
Nomura Asset Accept. Corp. 2007-1	195		CCC	0.0%	29.2%
MortgageIT Securities Corp. Mortgage Loan 2007-2	183		BB	0.0%	14.6%
Soundview 2007-WMC1	170		CCC	—%	45.4%
Countrywide Home Equity Loan Trust 2007-D	147		B	0.0%	3.4%
Countrywide Home Equity Loan Trust 2005-J	137		BB	0.0%	3.4%
Countrywide HELOC 2005-D	136		CCC	0.0%	6.6%
New Century 2005-A	133		CCC	8.7%	23.1%
Countrywide HELOC 2006-F	129		B	0.0%	5.4%
Countrywide HELOC 2007-A	113		BB	0.0%	3.1%
Countrywide HELOC 2007-B	113		BB	0.0%	2.4%
IndyMac 2007-H1 HELOC	94		B	0.0%	2.3%
GMACM 2004-HE3	90		CCC	0.0%	7.3%
Soundview Home Loan Trust 2008-1	69		CCC	6.4%	26.5%
Countrywide HELOC 2005-C	60		CCC	0.4%	8.9%
CSAB 2006-3	58		CCC	0.0%	40.7%
IMPAC CMB Trust Series 2007-A Class M-1	57		BB	9.7%	18.2%
MASTR Asset-Backed Securities Trust 2005-NC2	52		CCC	—%	20.9%
Terwin Mortgage Trust 2005-16HE	52		CCC	—%	20.5%
Total RMBS	$	2,748

Please refer to the Glossary for the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

Assured Guaranty Ltd.

Below Investment Grade Exposures (5 of 5)

As of September 30, 2015

(dollars in millions)

Structured Finance BIG Exposures Greater Than $50 Million (continued)



	BIG Net Par Outstanding		Internal Rating	Current Credit Enhancement
Name or description
U.S. structured finance:
Non-RMBS:
Zohar II 2005-1 Limited CDO	$	364	B-	13.1%
Alesco Preferred Funding XVI, Ltd.	215		BB	18.6%
Taberna Preferred Funding III, Ltd.	210		B	30.5%
Ballantyne Re Plc	175		CC	N/A
Taberna Preferred Funding II, Ltd.	159		CCC	30.9%
US Capital Funding IV, LTD	132		CCC	12.3%
Taberna Preferred Funding VI, Ltd.	123		BB-	25.7%
NRG Peaker¹	100		BB	N/A
National Collegiate Trust Series 2006-2	68		CCC	N/A
National Collegiate Trust Series 2007-4	57		CCC	N/A
Conseco Finance Manufactured Housing Series 2001-2	52		CCC	15.8%
Subtotal non-RMBS	$	1,655
Subtotal U.S. structured finance	$	4,403

Non-U.S. structured finance:
Gleneagles Funding Ltd.	$	231	BB	N/A
Private Pooled Corporate Transaction	87		BB	N/A
Babcock & Brown Air Funding I Ltd. Series 2007-1	61		BB	N/A
FHB	58		BB-	N/A
Subtotal Non-U.S. structured finance	$	437
Total	$	4,840


1)	In accordance with the terms of certain credit derivative contracts, the referenced obligations in such contracts have been delivered to the Company and therefore are included in the investment portfolio. Net par shown is net of $36 million of ceded par. The Company holds 100% of the bonds referenced in this transaction and reports them in the investment portfolio.

Please refer to the Glossary for the Company's internal rating approach, presentation of net par outstanding and a description of performance indicators and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (1 of 4)

As of September 30, 2015

(dollars in millions)

50 Largest U.S. Public Finance Exposures by Revenue Source



Credit names:	Net Par Outstanding		Internal Rating
New Jersey (State of)	$	4,720	A-
California (State of)	2,799		A
New York (City of) New York	2,175		AA-
Illinois (State of)	2,139		A-
Chicago (City of) Illinois	1,966		BBB+
New York (State of)	1,916		A+
Puerto Rico General Obligation, Appropriations and Guarantees of the Commonwealth	1,859		CCC
Miami-Dade County Florida Aviation Authority - Miami International Airport	1,815		A
Massachusetts (Commonwealth of)	1,798		AA
Houston, Texas Water and Sewer Authority	1,751		AA-
New York Metropolitan Transportation Authority	1,704		A
Los Angeles, California Unified School District	1,615		AA-
Philadelphia (City of) Pennsylvania	1,590		BBB+
Port Authority of New York and New Jersey	1,543		A+
Wisconsin (State of)	1,497		A+
Chicago-O'Hare International Airport	1,447		A-
Pennsylvania (Commonwealth of)	1,412		A
Chicago, Illinois Public Schools	1,294		BBB-
Puerto Rico Highway and Transportation Authority	1,279		CCC-
Skyway Concession Company LLC	1,269		BB
Michigan (State of)	1,267		A+
Massachusetts (Commonwealth of) Water Resources	1,250		AA
Georgia Board of Regents	1,228		A
Miami-Dade County Florida School Board	1,205		A-
Long Island Power Authority	1,177		A-
North Texas Tollway Authority	1,168		A
Pennsylvania Turnpike Commission	1,137		A-
Philadelphia School District, Pennsylvania	1,104		A
Arizona (State of)	1,085		A+
Detroit Michigan Sewer	1,041		BBB
New York City Municipal Water Finance Authority	945		AA
Garden State Preservation Trust, New Jersey Open Space & Farmland	922		AA
Illinois Toll Highway Authority	888		AA
Washington (State of)	885		AA
Detroit Michigan Water Supply System	870		BBB
Atlanta Georgia Water & Sewer System	852		A-
Central Florida Expressway Authority, Florida	845		A+
District of Columbia	830		AA-
Kentucky (Commonwealth of)	821		A+
Miami-Dade County, Florida Water & Sewer	810		A+
San Diego Unified School District, California	801		AA
Louisiana (State of) Gas and Fuel Tax	790		AA
Metro Washington Airport Authority	761		A+
Puerto Rico Electric Power Authority (PREPA)	744		CC
California State University System Trustee	731		A+
Oglethorpe Power Corporation, Georgia	717		BBB+
Miami-Dade County, Florida	706		A+
Regional Transportation Authority, Illinois Sales Tax	697		AA-
Nassau County, New York	694		A-
San Francisco Airports Commission	690		A+
Total top 50 U.S. public finance exposures	$	65,249

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (2 of 4)

As of September 30, 2015

(dollars in millions)

50 Largest U.S. Structured Finance Exposures



Credit Name	Net Par Outstanding		Internal Rating	Credit Enhancement
Fortress Credit Opportunities I, LP.	$	904	AA	38.8%
Stone Tower Credit Funding	835		AAA	10.5%
Private Other Structured Finance Transaction	800		AA	N/A
Synthetic Investment Grade Pooled Corporate CDO	767		AAA	14.8%
Synthetic Investment Grade Pooled Corporate CDO	744		AAA	26.7%
Synthetic Investment Grade Pooled Corporate CDO	655		AAA	14.9%
Wachovia Super Senior CDO 2007-1	563		AAA	23.4%
Synthetic Investment Grade Pooled Corporate CDO	516		AAA	14.3%
Private US Insurance Securitization	500		AA	N/A
Shenandoah Trust Capital I Term Securities	484		A+	N/A
SLM Private Credit Student Trust 2007-A	450		A-	17.9%
MS SS UK 2007-1	450		AAA	17.7%
BNP 2007-1 10 Year Super Senior CDO	440		AAA	21.2%
Deutsche Alt-A Securities Mortgage Loan 2007-2	438		AAA	0.0%
Aphex Capital NSCR 2006-2 LTD	430		AAA	7.0%
LIICA Holdings, LLC	428		AA	N/A
SLM Private Credit Student Loan Trust 2007-6	392		AAA	4.2%
Synthetic Investment Grade Pooled Corporate CDO	380		AAA	29.2%
Zohar II 2005-1 Limited CDO	364		B-	13.1%
SLM Private Credit Student Loan Trust 2006-C	356		A-	19.8%
Synthetic Investment Grade Pooled Corporate CDO	345		AAA	16.3%
Denali CLO VII, LTD.	327		AAA	26.4%
Synthetic Investment Grade Pooled Corporate CDO	313		AAA	14.2%
Eastland CLO, LTD	308		AAA	51.7%
Cent CDO 15 Limited	302		AAA	18.3%
Synthetic Investment Grade Pooled Corporate CDO	283		AAA	30.3%
Option One 2007-FXD2	279		CCC	0.0%
Cent CDO 12 Limited	270		AAA	25.2%
Synthetic Investment Grade Pooled Corporate CDO	270		AAA	29.1%
Private US Insurance Securitization	250		AA	N/A
MABS 2007-NCW	243		CCC	1.5%
Countrywide HELOC 2006-I	238		BB	0.0%
Alesco Preferred Funding XIV	233		A+	42.4%
Grayson CLO	229		AAA	41.3%
Taberna Preferred Funding IV, Ltd.	219		BBB-	35.6%
Timberlake Financial, LLC Floating Insured Notes	216		BBB-	N/A
Alesco Preferred Funding XVI, Ltd.	215		BB	18.6%
Taberna Preferred Funding III, Ltd.	210		B	30.5%
Alesco Preferred Funding X LTD	207		AA	52.9%
UBS 2007-2 CDO	204		AAA	9.2%
UBS 2007-1 CDO	204		AAA	10.4%
Private Residential Mortgage Transaction	199		AAA	11.1%
Nomura Asset Accept. Corp. 2007-1	195		CCC	0.0%
Churchill Financial Cayman	190		AAA	57.9%
CWALT Alternative Loan Trust 2007-HY9	185		A+	0.0%
MortgageIT Securities Corp. Mortgage Loan 2007-2	183		BB	0.0%
CWABS 2007-4	181		A	0.0%
Private Other Structured Finance Transaction	175		AAA	N/A
Ballantyne Re Plc	175		CC	N/A
Kingsland V	174		AAA	35.4%
Total top 50 U.S. structured finance exposures	$	17,918

Please refer to the Glossary for the Company's internal rating approach, presentation of net par outstanding and a description of various sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (3 of 4)

As of September 30, 2015

(dollars in millions)

25 Largest Non-U.S. Exposures by Revenue Source



Credit Name	Country	Net Par Outstanding		Internal Rating
Quebec Province	Canada	$	2,089	A+
Thames Water Utility Finance PLC	United Kingdom	1,191		A-
Channel Link Enterprises Finance PLC (Eurotunnel)	France, United Kingdom	933		BBB
Southern Gas Networks PLC	United Kingdom	906		BBB
Capital Hospitals (Issuer) PLC	United Kingdom	816		BBB-
Societe des Autoroutes du Nord et de l'Est de France S.A.	France	814		BBB+
Southern Water Services Limited	United Kingdom	746		A-
International Infrastructure Pool	United Kingdom	690		AA
Sydney Airport Finance Company	Australia	664		BBB
Verbund - Lease and Sublease of Hydro-Electric equipment	Austria	636		AAA
International Infrastructure Pool	United Kingdom	621		AA
International Infrastructure Pool	United Kingdom	621		AA
Reliance Rail Finance Pty. Limited	Australia	598		BB
Campania Region - Healthcare receivable	Italy	591		BBB-
Central Nottinghamshire Hospitals PLC	United Kingdom	520		BBB
Scotland Gas Networks Plc (A2)	United Kingdom	519		BBB
NewHospitals (St Helens & Knowsley) Finance PLC	United Kingdom	483		BBB
The Hospital Company (QAH Portsmouth) Limited	United Kingdom	461		BBB
Envestra Limited	Australia	457		BBB
Integrated Accomodation Services PLC	United Kingdom	432		BBB+
Yorkshire Water Services Finance Plc	United Kingdom	429		A-
A28 Motorway	France	424		BBB-
Dali Capital PLC-Northumbrian Water	United Kingdom	419		BBB+
Octagon Healthcare Funding PLC	United Kingdom	402		BBB
Bakethin Finance Plc	United Kingdom	371		A-
Total top 25 non-U.S. exposures		$	16,833

Please refer to the Glossary for an explanation of net par outstanding, internal ratings and sectors.

Assured Guaranty Ltd.

Largest Exposures by Sector (4 of 4)

As of September 30, 2015

(dollars in millions)

10 Largest U.S. Residential Mortgage Servicer Exposures



Servicer:	Net Par Outstanding
Ocwen Loan Servicing, LLC⁽¹⁾	$	2,341
Bank of America, N.A.⁽²⁾	1,803
Specialized Loan Servicing, LLC	1,655
Wells Fargo Bank N.A.	1,235
JPMorgan Chase Bank	326
Select Portfolio Servicing, Inc.	313
Nationstar Mortgage LLC	146
Residential Credit Solutions, Inc.	114
Banco Popular de Puerto Rico	89
Ditech Financial LLC	58
Total top 10 U.S. residential mortgage servicer exposures	$	8,080

1) Includes Homeward Residential Inc.


2)	Includes Countrywide Home Loans Servicing LP.

10 Largest U.S. Healthcare Exposures



Credit Name:	Net Par Outstanding		Internal Rating	State
Methodist Healthcare	$	458	A+	TN
MultiCare Health System	399		AA-	WA
CHRISTUS Health	364		A	TX
Children's National Medical Center	359		A-	DC
Catholic Health Initiatives	332		A-	CO
Bon Secours Health System Obligated Group	324		A-	MD
Carolina HealthCare System	319		AA-	NC
Asante Health System	288		A+	OR
Catholic Health Partners	287		A+	OH
Dignity Health, California	280		A	CA
Total top 10 U.S. healthcare exposures	$	3,410

Please refer to the Glossary for the Company's internal rating approach and presentation of net par outstanding.

Assured Guaranty Ltd.

Rollforward of Net Expected Loss and LAE to be Paid

(dollars in millions)

Rollforward of Net Expected Loss and LAE to be Paid for the Three Months Ended September 30, 2015



Financial Guaranty Insurance Contracts and Credit Derivatives	Net Expected Loss to be Paid (Recovered) as of June 30, 2015			Economic Loss Development During 3Q-15⁽¹⁾			(Paid) Recovered Losses During 3Q-15			Net Expected Loss to be Paid (Recovered) as of September 30, 2015
Public Finance:
U.S. public finance	$	613		$	92		$	(18	)	$	687
Non-U.S public finance	44			(1		)	—			43
Public Finance	657			91			(18		)	730

U.S. RMBS
First lien:
Prime first lien	1			0			(1		)	0
Alt-A first lien	265			(111		)	(108		)	46
Option ARMs	(18		)	(4		)	6			(16		)
Subprime first lien	273			26			(20		)	279
Total first lien	521			(89		)	(123		)	309
Second lien:
Closed-end second lien	9			0			2			11
HELOC	(6		)	13			8			15
Total second lien	3			13			10			26
Total U.S. RMBS	524			(76		)	(113		)	335
Triple-X life insurance transactions	165			1			(68		)	98
Trust preferred securities (TruPS)	10			(5		)	—			5
Student loans	58			(2		)	0			56
Other structured finance	96			(12		)	(1		)	83
Structured Finance	853			(94		)	(182		)	577
Total	$	1,510		$	(3	)	$	(200	)	$	1,307

Rollforward of Net Expected Loss and LAE to be Paid for the Nine Months Ended September 30, 2015



Financial Guaranty Insurance Contracts and Credit Derivatives	Net Expected Loss to be Paid (Recovered) as of December 31, 2014			Net Expected Loss to be Paid (Recovered) on Radian Asset portfolio as of April 1, 2015			Economic Loss Development During 2015⁽¹⁾			(Paid) Recovered Losses During 2015			Net Expected Loss to be Paid (Recovered) as of September 30, 2015
Public Finance:
U.S. public finance	$	303		$	81		$	327		$	(24	)	$	687
Non-U.S public finance	45			4			(6		)	—			43
Public Finance	348			85			321			(24		)	730

U.S. RMBS
First lien:
Prime first lien	4			—			(1		)	(3		)	0
Alt-A first lien	304			7			(132		)	(133		)	46
Option ARMs	(16		)	0			(3		)	3			(16		)
Subprime first lien	303			(4		)	19			(39		)	279
Total first lien	595			3			(117		)	(172		)	309
Second lien:
Closed-end second lien	8			—			(2		)	5			11
HELOC	(19		)	1			15			18			15
Total second lien	(11		)	1			13			23			26
Total U.S. RMBS	584			4			(104		)	(149		)	335
Triple-X life insurance transactions	161			—			8			(71		)	98
TruPS	23			—			(18		)	—			5
Student loans	68			—			(7		)	(5		)	56
Other structured finance	(15		)	101			(14		)	11			83
Structured Finance	821			105			(135		)	(214		)	577
Total	$	1,169		$	190		$	186		$	(238	)	$	1,307

1) Includes the effect of changes in the Company's estimate of future recovery on representations and warranties (R&W).

Assured Guaranty Ltd.

Financial Guaranty Insurance and Credit Derivative U.S. RMBS R&W Benefit Development

(dollars in millions)

Financial Guaranty Insurance and Credit Derivatives U.S. RMBS Benefit Development for the Three Months Ended September 30, 2015



	Future Net R&W Benefit at June 30, 2015			R&W Economic Loss Development During 3Q-15			R&W (Recovered) During 3Q-15			Future Net R&W Benefit at September 30, 2015
Financial guaranty insurance:
Prime first lien	$	1		$	0		$	0		$	1
Alt-A first lien	19			1			(2		)	18
Option ARMs	(33		)	(5		)	(20		)	(58		)
Subprime first lien	81			(4		)	(3		)	74
Closed-end second lien	83			(1		)	(1		)	81
Subtotal	151			(9		)	(26		)	116

Credit derivatives:
Alt-A first lien	74			8			—			82
Subtotal	74			8			—			82

Total	$	225		$	(1	)	$	(26	)	$	198

Financial Guaranty Insurance and Credit Derivatives U.S. RMBS Benefit Development for the Nine Months Ended September 30, 2015



	Future Net R&W Benefit at December 31, 2014		R&W benefit of Radian Asset as of April 1, 2015		R&W Economic Loss Development During 2015			R&W (Recovered) During 2015			Future Net R&W Benefit at September 30, 2015
Financial guaranty insurance:
Prime first lien	$	2	$	—	$	(1	)	$	0		$	1
Alt-A first lien	20		—		2			(4		)	18
Option ARMs	15		—		(19		)	(54		)	(58		)
Subprime first lien	109		1		(27		)	(9		)	74
Closed-end second lien	85		1		0			(5		)	81
Subtotal	231		2		(45		)	(72		)	116

Credit derivatives:
Alt-A first lien	86		—		(3		)	(1		)	82
Subtotal	86		—		(3		)	(1		)	82

Total	$	317	$	2	$	(48	)	$	(73	)	$	198

The number of risks subject to R&W recovery is 28, with related net debt service of $1.9 billion as of September 30, 2015 compared to 29 with related net debt service of $2.1 billion as of December 31, 2014. A risk represents the aggregate of the financial guaranty policies that share the same revenue source for purposes of making debt service payments. Included in these September 30 amounts is one risk with related net debt service of $568 million as of September 30, 2015 that was terminated early in the fourth quarter of 2015.

Please refer to the Glossary for an explanation of the presentation of net debt service outstanding and of the various sectors.

Assured Guaranty Ltd.

Loss Expense - Non-GAAP Operating Basis

As of September 30, 2015

(dollars in millions)



Financial Guaranty Insurance Contracts and Credit Derivatives	Total Net Par Outstanding for BIG Transactions		3Q-15 Loss Expense			2015 Loss Expense			Net Expected Loss to be Expensed
Public Finance:
U.S. public finance	$	9,480	$	89		$	298		$	182
Non-U.S public finance	1,514		(2		)	2			14
Public Finance	10,994		87			300			196
Structured Finance:
U.S. RMBS:
First lien:
Prime first lien	312		0			0			0
Alt-A first lien	821		(76		)	(96		)	28
Option ARMs	151		(4		)	(3		)	21
Subprime	1,336		34			30			71
Total first lien	2,620		(46		)	(69		)	120
Second lien:
Closed-end second lien	128		1			1			40
HELOCs	1,382		18			29			96
Total second lien	1,510		19			30			136
Total U.S. RMBS	4,130		(27		)	(39		)	256
Triple-X life insurance transactions	216		8			15			7
TruPS	840		(1		)	(12		)	0
Student loans	165		(2		)	(7		)	3
Other structured finance	1,266		3			3			74
Structured Finance	6,617		(19		)	(40		)	340
Loss expense - non-GAAP basis	$	17,611	$	68		$	260		$	536

Please refer to the Glossary for an explanation of the presentation of net par outstanding and of the various sectors.

Assured Guaranty Ltd.

Summary Financial and Statistical Data

(dollars in millions, except per share amounts)



			As of and for Nine Months Ended September 30, 2015			Year Ended December 31,
						2014			2013			2012			2011
GAAP Summary Income Statement Data
	Net earned premiums		$	574		$	570		$	752		$	853		$	920
	Net investment income		311			403			393			404			396
	Realized gains and other settlements on credit derivatives		35			23			(42		)	(108		)	6
	Total expenses		585			463			466			822			776
	Income (loss) before income taxes		847			1,531			1,142			132			1,029
	Net income (loss)		627			1,088			808			110			773
	Net income (loss) per diluted share		4.13			6.26			4.30			0.57			4.16

GAAP Summary Balance Sheet Data
	Total investments and cash		$	11,409		$	11,459		$	10,969		$	11,223		$	11,314
	Total assets		15,034			14,925			16,287			17,242			17,709
	Unearned premium reserve		4,112			4,261			4,595			5,207			5,963
	Loss and LAE reserve		1,007			799			592			601			679
	Long-term debt		1,306			1,303			816			836			1,038
	Shareholders’ equity		5,819			5,758			5,115			4,994			4,652
	Shareholders’ equity per share		40.72			36.37			28.07			25.74			25.52

Non-GAAP Financial Measures
	Operating income		$	582		$	491		$	609		$	535		$	601
	Operating income per diluted share		3.84			2.83			3.25			2.81			3.24
	Operating shareholder's equity		5,984			5,933			6,164			5,830			5,201
	Operating shareholder's equity per share		41.87			37.48			33.83			30.05			28.54
	Adjusted book value		8,571			8,495			9,033			9,151			8,987
	PVP		103			168			141			210			243

Other Financial Information (GAAP Basis)
	Net debt service outstanding (end of period)		$	556,381		$	609,622		$	690,535		$	780,356		$	844,447
	Gross debt service outstanding (end of period)		582,043			646,722			737,380			833,098			934,914
	Net par outstanding (end of period)		372,361			403,729			459,107			518,772			556,830
	Gross par outstanding (end of period)		388,672			426,705			487,895			550,908			613,124

Other Financial Information (Statutory Basis)⁽¹⁾
	Net debt service outstanding (end of period)		$	523,405		$	583,598		$	663,797		$	756,044		$	828,327
	Gross debt service outstanding (end of period)		547,795			619,475			709,000			807,420			916,501
	Net par outstanding (end of period)		342,089			379,714			434,597			496,237			541,882
	Gross par outstanding (end of period)		357,222			401,552			461,845			527,126			593,072

	Consolidated qualified statutory capital		6,983			6,472			6,136			5,943			5,688
	Consolidated policyholders' surplus and reserves		10,930			10,623			10,454			10,288			10,626

	Ratios:
		Net par outstanding to qualified statutory capital	49		:1	59		:1	71		:1	83:1			95:1
		Capital ratio⁽²⁾	75		:1	90		:1	108		:1	127:1			145:1
		Financial resources ratio⁽²⁾	42		:1	48		:1	55		:1	61:1			65:1

	Gross debt service written:
		Public finance - U.S.	$	19,649		$	20,804		$	15,559		$	25,252		$	26,630
		Public finance - non-U.S.	—			233			674			40			208
		Structured finance - U.S.	263			423			297			623			1,731
		Structured finance - non-U.S.	6			387			—			—			—
	Total gross debt service written		$	19,918		$	21,847		$	16,530		$	25,915		$	28,569

	Net debt service written		$	19,917		$	21,847		$	16,497		$	25,915		$	28,569
	Net par written		12,992			13,171			9,331			16,816			16,892
	Gross par written		12,992			13,171			9,350			16,816			16,892

1) Statutory amounts prepared on a consolidated basis. The NAIC Annual Statements for U.S. Domiciled Insurance Subsidiaries are prepared on a stand-alone basis.


2)	See page 7 for additional detail on claims-paying resources.

Please refer to the explanation of Non-GAAP Financial Measures set forth at the end of this Financial Supplement.

Please refer to the Glossary for an explanation of the presentation of net debt service and net par outstanding and of the various sectors.

Glossary

Net Par Outstanding and Internal Ratings

Net par outstanding is insured par exposure, net of reinsurance cessions. Unless otherwise indicated, GAAP net par outstanding amounts exclude amounts related to securities the Company has purchased for loss mitigation purposes.

Internal Rating utilizes the Company’s ratings scale, which is similar to that used by the nationally recognized statistical rating organizations; however, the ratings in the tables may not be the same as ratings assigned by any such rating agency.

Performance Indicators

The performance information described below is obtained from third parties and/or provided by the trustee and may be subject to revision as updated or additional information are obtained:

60+ Day Delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned divided by current collateral balance.

Average Credit Enhancement is intended to provide a measure of the amount of equity and/or subordinated tranches that are junior in the capital structure to Assured Guaranty’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 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. Some asset classes may not have subordinated tranches so they are excluded from the weighted averages.

Cumulative Losses are defined as net charge-offs on the underlying loan collateral divided by the original collateral balance.

Pool Factor is the percentage of the current collateral balance divided by the original collateral balance of the transactions at inception.

Subordination represents the sum of subordinate tranches and overcollateralization, expressed as a percentage of total transaction size, and does not include any benefit from excess spread collections that may be used to absorb losses. Many of the closed-end second lien RMBS transactions insured by the Company have unique structures whereby the collateral may be written down for losses without a corresponding write-down of the obligations insured by the Company. Many of these transactions are currently undercollateralized, with the principal amount of collateral being less than the principal amount of the obligation insured by the Company. The Company is not required to pay principal shortfalls until legal maturity (rather than making timely principal payments), and takes the undercollateralization into account when estimating expected losses for these transactions.

Sectors

Below are brief descriptions of selected types of public and structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.’s Annual Report on Form 10-K for the year ended December 31, 2014.

Public Finance:

General Obligation Bonds are full faith and credit bonds that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy ad valorem taxes in an amount sufficient to provide for the full payment of the bonds.

Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation. They include tax-backed revenue bonds, general fund obligations and lease revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose. Bonds in this category also include moral obligations of municipalities or governmental authorities.

Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

Transportation Bonds include a wide variety of revenue-supported bonds, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

Healthcare Bonds are obligations of healthcare facilities, including community-based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

Glossary (continued)

Sectors (continued)

Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution’s revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue.

Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

Investor-Owned Utility Bonds are obligations primarily backed by investor-owned utilities, first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, and also include sale-leaseback obligation bonds supported by such entities.

Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

Regulated Utilities Obligations are issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities. The majority of the Company's international regulated utility business is conducted in the United Kingdom.

Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit‑-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations.

Other Public Finance primarily includes government insured student loans, government-sponsored project finance and structured municipal transactions, which includes excess of loss reinsurance on portfolios of municipal credits.

Structured Finance:

Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in ‘‘tranches,’’ with subordinated tranches providing credit support to the more senior tranches. The Company’s financial guaranty exposures generally are to the more senior tranches of these issues.

Residential Mortgage-Backed Securities (RMBS) are obligations backed by closed-end and open-end first and second lien mortgage loans on one-to-four family residential properties, including condominiums and cooperative apartments. First lien mortgage loan products in these transactions include fixed rate, adjustable rate (ARM) and option adjustable-rate (Option ARM) mortgages. The credit quality of borrowers covers a broad range, including ‘‘prime’’, ‘‘subprime’’ and ‘‘Alt-A’’. A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with higher risk characteristics, usually as determined by credit score and/or credit history. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income.

Additional insured obligations within RMBS include Home Equity Lines of Credit (HELOCs), which refers to a type of residential mortgage-backed transaction backed by second-lien loan collateral consisting of home equity lines of credit. U.S. Prime First Lien is a type of residential mortgage-backed securities transaction backed primarily by prime first-lien loan collateral plus an insignificant amount of other miscellaneous RMBS transactions.

CBOs/CLOs (collateralized bond obligations and collateralized loan obligations) are asset-backed securities largely backed by non-investment grade/high yield collateral.

Commercial Mortgage-Backed Securities (CMBS) are obligations backed by pools of commercial mortgages. The collateral supporting CMBS include office, multifamily, retail, hotel, industrial and other specialized or mixed-use properties.

Financial Products is the way in which the Company refers to the guaranteed investment contracts (GICs) portion of a line of business previously conducted by AGMH that the Company did not acquire when it purchased AGMH in 2009. That line of business, which the Company refers to as the former "Financial Products Business" of AGMH, was comprised of its guaranteed investment contracts business, its medium term notes business and the equity payment agreements associated with AGMH's leveraged lease business. When AGMH was still conducting Financial Products Business, AGM issued financial guaranty insurance policies on GICs and in respect of the GIC business; those policies cannot be revoked or canceled. Assured Guaranty is indemnified by Dexia against loss from the former Financial Products Business. The Financial Products Business is currently being run off.

Glossary (continued)

Sectors (continued)

Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as student loans, automobile loans and leases, manufactured home loans and other consumer receivables.

Commercial Receivables Securities are obligations backed by equipment loans or leases, aircraft and aircraft engine financings, business loans and trade receivables. Credit support is derived from the cash flows generated by the underlying obligations, as well as property or equipment values as applicable.

Insurance Securitization Securities are obligations secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

Other Structured Finance Securities are obligations backed by assets not generally described in any of the other described categories. One such type of asset is a tax benefit to be realized by an investor in one of the Federal or state programs that permit such investor to receive a credit against taxes (such as Federal corporate income tax or state insurance premium tax) for making qualified investments in specified enterprises, typically located in designated low-income areas.

Non-GAAP Financial Measures

The Company references financial measures that are not in accordance with accounting principles generally accepted in the United States of America (GAAP).

Management and the board of directors utilize non-GAAP financial measures in evaluating the Company’s financial performance. By providing these non-GAAP financial measures, the Company gives investors, analysts and financial news reporters access to the same information that management reviews internally. In addition, Assured Guaranty’s presentation of non-GAAP financial measures is consistent with how analysts calculate their estimates of Assured Guaranty’s financial results in their research reports on Assured Guaranty and with how investors, analysts and the financial news media evaluate Assured Guaranty’s financial results.

The following paragraphs define each non-GAAP financial measure and describe why it is useful. A reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure, is presented within this financial supplement. Non-GAAP financial measures should not be viewed as substitutes for their most directly comparable GAAP measures.

Operating Income: Management believes that operating income is a useful measure because it clarifies the understanding of the underwriting results of the Company’s financial guaranty business, and also includes financing costs and net investment income, and enables investors and analysts to evaluate the Company’s financial results as compared with the consensus analyst estimates distributed publicly by financial databases. Operating income is defined as net income (loss) attributable to Assured Guaranty Ltd., as reported under GAAP, adjusted for the following:

1) Elimination of the after-tax realized gains (losses) on the Company’s investments, except for gains and losses on securities classified as trading. The timing of realized gains and losses, which depends largely on market credit cycles, can vary considerably across periods. The timing of sales is largely subject to the Company’s discretion and influenced by market opportunities, as well as the Company’s tax and capital profile. Trends in the underlying profitability of the Company’s business can be more clearly identified without the fluctuating effects of these transactions.

2) Elimination of the after-tax non-credit-impairment unrealized fair value gains (losses) on credit derivatives, which is the amount in excess of the present value of the expected estimated economic credit losses and non-economic payments. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss. Additionally, such adjustments present all financial guaranty contracts on a more consistent basis of accounting, whether or not they are subject to derivative accounting rules.

3) Elimination of the after-tax fair value gains (losses) on the Company’s CCS. Such amounts are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

4) Elimination of the after-tax foreign exchange gains (losses) on remeasurement of net premium receivables and loss and LAE reserves. Long-dated receivables constitute a significant portion of the net premium receivable balance and represent the present value of future contractual or expected collections. Therefore, the current period’s foreign exchange remeasurement gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

5) Elimination of the effects of consolidating FG VIEs in order to present all financial guaranty contracts on a more consistent basis of accounting, whether or not GAAP requires consolidation. GAAP requires the Company to consolidate certain VIEs that have issued debt obligations insured by the Company even though the Company does not own such VIEs.

Operating Shareholders’ Equity: Management believes that operating shareholders’ equity is a useful measure because it presents the equity of Assured Guaranty Ltd. with all financial guaranty contracts accounted for on a more consistent basis and excludes fair value adjustments that are not expected to result in economic gain or loss. Many investors, analysts and financial news reporters use operating shareholders’ equity as the principal financial measure for valuing Assured Guaranty Ltd.’s current share price or projected share price and also as the basis of their decision to recommend buy or sell Assured Guaranty Ltd.’s common shares. Many of the Company’s fixed income investors also use operating shareholders’ equity to evaluate the Company’s capital adequacy. Operating shareholders’ equity is the basis of the calculation of adjusted book value (see below). Operating shareholders’ equity is defined as shareholders’ equity attributable to Assured Guaranty Ltd., as reported under GAAP, adjusted for the following:

1) Elimination of the effects of consolidating FG VIEs in order to present all financial guaranty contracts on a more consistent basis of accounting, whether or not GAAP requires consolidation. GAAP requires the Company to consolidate certain VIEs that have issued debt obligations insured by the Company even though the Company does not own such VIEs.

Non-GAAP Financial Measures (continued)

Operating Shareholders’ Equity (continued):

4) Elimination of the after-tax unrealized gains (losses) on the Company’s investments, that are recorded as a component of accumulated other comprehensive income (AOCI) (excluding foreign exchange remeasurement). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore should not recognize an economic gain or loss.

Operating return on equity (Operating ROE): Operating ROE represents operating income for a specified period divided by the average of operating shareholders’ equity at the beginning and the end of that period. Management believes that operating ROE is a useful measure to evaluate the Company’s return on invested capital. Many investors, analysts and members of the financial news media use operating ROE to evaluate Assured Guaranty Ltd.’s share price and as the basis of their decision to recommend, buy or sell the Assured Guaranty Ltd. common shares. Quarterly and year-to-date operating ROE are calculated on an annualized basis.

Adjusted Book Value: Management believes that adjusted book value is a useful measure because it enables an evaluation of the net present value of the Company’s in-force premiums and revenues in addition to operating shareholders’ equity. The premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults and other factors. Many investors, analysts and financial news reporters use adjusted book value to evaluate Assured Guaranty Ltd.’s share price and as the basis of their decision to recommend, buy or sell the Assured Guaranty Ltd. common shares. Adjusted book value is operating shareholders’ equity, as defined above, further adjusted for the following:

1) Elimination of after-tax deferred acquisition costs, net. These amounts represent net deferred expenses that have already been paid or accrued and will be expensed in future accounting periods.

2) Addition of the after-tax net present value of estimated net future credit derivative revenue. See below.

3) Addition of the after-tax value of the unearned premium reserve on financial guaranty contracts in excess of expected loss to be expensed, net of reinsurance. This amount represents the expected future net earned premiums, net of expected losses to be expensed, which are not reflected in GAAP equity.

Net present value of estimated net future credit derivative revenue: Management believes that this amount is a useful measure because it enables an evaluation of the value of future estimated credit derivative revenue. There is no corresponding GAAP financial measure. This amount represents the present value of estimated future revenue from the Company’s credit derivative in-force book of business, net of reinsurance, ceding commissions and premium taxes for contracts without expected economic losses, and is discounted at 6%. Estimated net future credit derivative revenue may change from period to period due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.

PVP or present value of new business production: Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production for Assured Guaranty by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as premium supplements and additional installment premium on existing contracts as to which the issuer has the right to call the insured obligation but has not exercised such right, whether in insurance or credit derivative contract form, which GAAP gross premiums written and the net credit derivative premiums received and receivable portion of net realized gains and other settlements on credit derivatives (Credit Derivative Revenues) do not adequately measure. PVP in respect of financial guaranty contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums, in each case, discounted at 6%. For purposes of the PVP calculation, management discounts estimated future installment premiums on insurance contracts at 6%, while under GAAP, these amounts are discounted at a risk free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums the Company expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction. Actual future net earned or written premiums and Credit Derivative Revenues may differ from PVP due to factors including, but not limited to, changes in foreign exchange rates, prepayment speeds, terminations, credit defaults, or other factors that affect par outstanding or the ultimate maturity of an obligation.

Assured Guaranty Ltd.

30 Woodbourne Avenue

Hamilton HM 08

Bermuda

(441) 279-5705

www.assuredguaranty.com

Contacts:

Equity and Fixed Income Investors:

Robert Tucker

Managing Director, Investor Relations and Corporate Communications

(212) 339-0861

rtucker@assuredguaranty.com

Michael Walker

Managing Director, Fixed Income Investor Relations

(212) 261-5575

mwalker@assuredguaranty.com

Andre Thomas

Managing Director, Equity Investor Relations

(212) 339-3551

athomas@assuredguaranty.com

Glenn Alterman

Associate, Investor Relations

(212) 339-0854

galterman@assuredguaranty.com

Katie-May Gordon

Associate, Investor Relations

(212) 339-0898

kgordon@assuredguaranty.com

Media:

Ashweeta Durani

Vice President, Corporate Communications

(212) 408-6042

adurani@assuredguaranty.com