Earnings Per Share

12 Months Ended

Dec. 31, 2015

Accounting Policy

The Company computes EPS using a two-class method by including participating securities which entitle their holders to receive nonforfeitable dividends or dividend equivalents before vesting. Restricted stock awards and share units under the AGC supplemental executive retirement plan ("AGC SERP") are considered participating securities as they received non-forfeitable rights to dividends at the same rate as common stock.

The two-class method of computing EPS is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Basic EPS is then calculated by dividing net (loss) income available to common shareholders of Assured Guaranty by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock, restricted stock units, stock options and other potentially dilutive financial instruments (“dilutive securities”), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. The Company has a single class of common stock.

Computation of Earnings Per Share



	Year Ended December 31,
	2015		2014		2013
	(in millions, except per share amounts)
Basic EPS:
Net income (loss) attributable to AGL	$	1,056	$	1,088	808
Less: Distributed and undistributed income (loss) available to nonvested shareholders	1		0		1
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	1,055	$	1,088	807
Basic shares	148.1		172.6		186.6
Basic EPS	$	7.12	$	6.30	$	4.32

Diluted EPS:
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	1,055	$	1,088	$	807
Plus: Re-allocation of undistributed income (loss) available to nonvested shareholders of AGL and subsidiaries	0		0		0
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, diluted	$	1,055	$	1,088	$	807

Basic shares	148.1		172.6		186.6
Dilutive securities	0.9		1.0		1.0
Diluted shares	149.0		173.6		187.6
Diluted EPS	$	7.08	$	6.26	$	4.30
Potentially dilutive securities excluded from computation of EPS because of antidilutive effect	0.5		1.6		2.7