Subsidiary Information (Tables)

6 Months Ended

Jun. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF JUNE 30, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	27	$	144	$	28	$	11,593	$	(321	)	$	11,471
Investment in subsidiaries	6,713		6,083		4,096		302		(17,194		)	—
Premiums receivable, net of commissions payable	—		—		—		1,049		(133		)	916
Ceded unearned premium reserve	—		—		—		1,058		(884		)	174
Deferred acquisition costs	—		—		—		153		(46		)	107
Reinsurance recoverable on unpaid losses	—		—		—		394		(316		)	78
Credit derivative assets	—		—		—		51		(45		)	6
Deferred tax asset, net	—		—		—		491		(100		)	391
Intercompany receivable	—		—		—		70		(70		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		757		—			757
Dividend receivable from affiliate	—		—		—		—		—			—
Other	16		119		45		907		(332		)	755
TOTAL ASSETS	$	6,756	$	6,346	$	4,169	$	16,825	$	(19,441	)	$	14,655
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,707	$	(959	)	$	3,748
Loss and LAE reserve	—		—		—		1,548		(280		)	1,268
Long-term debt	—		843		456		9		(14		)	1,294
Intercompany payable	—		70		—		300		(370		)	—
Credit derivative liabilities	—		—		—		412		(45		)	367
Deferred tax liabilities, net	—		3		87		—		(90		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		820		—			820
Dividend payable to affiliate	—		—		—		—		—			—
Other	6		24		22		821		(465		)	408
TOTAL LIABILITIES	6		940		565		8,617		(2,223		)	7,905
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,750		5,406		3,604		7,906		(16,916		)	6,750
Noncontrolling interest	—		—		—		302		(302		)	—
TOTAL SHAREHOLDERS' EQUITY	6,750		5,406		3,604		8,208		(17,218		)	6,750
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,756	$	6,346	$	4,169	$	16,825	$	(19,441	)	$	14,655

CONDENSED CONSOLIDATING BALANCE SHEET

AS OF DECEMBER 31, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)		AGUS (Issuer)		AGMH (Issuer)		Other Entities		Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
ASSETS
Total investment portfolio and cash	$	36	$	384	$	22	$	11,029	$	(368	)	$	11,103
Investment in subsidiaries	6,164		5,696		3,799		296		(15,955		)	—
Premiums receivable, net of commissions payable	—		—		—		699		(123		)	576
Ceded unearned premium reserve	—		—		—		1,099		(893		)	206
Deferred acquisition costs	—		—		—		156		(50		)	106
Reinsurance recoverable on unpaid losses	—		—		—		484		(404		)	80
Credit derivative assets	—		—		—		69		(56		)	13
Deferred tax asset, net	—		16		—		597		(116		)	497
Intercompany receivable	—		—		—		70		(70		)	—
Financial guaranty variable interest entities’ assets, at fair value	—		—		—		876		—			876
Dividend receivable from affiliate	300		—		—		—		(300		)	—
Other	11		78		26		801		(222		)	694
TOTAL ASSETS	$	6,511	$	6,174	$	3,847	$	16,176	$	(18,557	)	$	14,151
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned premium reserves	$	—	$	—	$	—	$	4,488	$	(977	)	$	3,511
Loss and LAE reserve	—		—		—		1,596		(469		)	1,127
Long-term debt	—		843		453		10		—			1,306
Intercompany payable	—		70		—		300		(370		)	—
Credit derivative liabilities	—		—		—		458		(56		)	402
Deferred tax liabilities, net	—		—		88		—		(88		)	—
Financial guaranty variable interest entities’ liabilities, at fair value	—		—		—		958		—			958
Dividend payable to affiliate	—		300		—		—		(300		)	—
Other	7		3		14		665		(346		)	343
TOTAL LIABILITIES	7		1,216		555		8,475		(2,606		)	7,647
TOTAL SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO ASSURED GUARANTY LTD.	6,504		4,958		3,292		7,405		(15,655		)	6,504
Noncontrolling interest	—		—		—		296		(296		)	—
TOTAL SHAREHOLDERS’ EQUITY	6,504		4,958		3,292		7,701		(15,951		)	6,504
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,511	$	6,174	$	3,847	$	16,176	$	(18,557	)	$	14,151

Condensed Consolidating Statement of Operations and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	166		$	(4	)	$	162
Net investment income	0			1			0			101			(1		)	101
Net realized investment gains (losses)	—			0			0			30			(15		)	15
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			5			0			5
Net unrealized gains (losses)	—			—			—			(11		)	—			(11		)
Net change in fair value of credit derivatives	—			—			—			(6		)	0			(6		)
Other	2			—			—			83			(49		)	36
TOTAL REVENUES	2			1			0			374			(69		)	308
EXPENSES
Loss and LAE	—			—			—			40			32			72
Amortization of deferred acquisition costs	—			—			—			6			(2		)	4
Interest expense	—			12			14			3			(4		)	25
Other operating expenses	10			1			0			89			(43		)	57
TOTAL EXPENSES	10			13			14			138			(17		)	158
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(8		)	(12		)	(14		)	236			(52		)	150
Total (provision) benefit for income taxes	—			3			6			(24		)	18			3
Equity in net earnings of subsidiaries	161			138			118			6			(423		)	—
NET INCOME (LOSS)	$	153		$	129		$	110		$	218		$	(457	)	$	153
Less: noncontrolling interest	—			—			—			6			(6		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	153		$	129		$	110		$	212		$	(451	)	$	153

COMPREHENSIVE INCOME (LOSS)	$	262		$	224		$	124		$	293		$	(641	)	$	262

CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS

AND COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED JUNE 30, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
REVENUES
Net earned premiums	$	—		$	—		$	—		$	222		$	(8	)	$	214
Net investment income	0			0			0			98			—			98
Net realized investment gains (losses)	0			—			0			10			—			10
Net change in fair value of credit derivatives:
Realized gains (losses) and other settlements	—			—			—			24			—			24
Net unrealized gains (losses)	—			—			—			39			—			39
Net change in fair value of credit derivatives	—			—			—			63			—			63
Other	0			—			—			11			—			11
TOTAL REVENUES	0			0			0			404			(8		)	396
EXPENSES
Loss and LAE	—			—			—			104			(2		)	102
Amortization of deferred acquisition costs	—			—			—			7			(2		)	5
Interest expense	—			13			14			2			(4		)	25
Other operating expenses	8			0			0			55			—			63
TOTAL EXPENSES	8			13			14			168			(8		)	195
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN NET EARNINGS OF SUBSIDIARIES	(8		)	(13		)	(14		)	236			—			201
Total (provision) benefit for income taxes	—			4			5			(65		)	1			(55		)
Equity in net earnings of subsidiaries	154			140			114			14			(422		)	—
NET INCOME (LOSS)	$	146		$	131		$	105		$	185		$	(421	)	$	146
Less: noncontrolling interest	—			—			—			14			(14		)	—
NET INCOME (LOSS) ATTRIBUTABLE TO ASSURED GUARANTY LTD.	$	146		$	131		$	105		$	171		$	(407	)	$	146

COMPREHENSIVE INCOME (LOSS)	$	210		$	166		$	125		$	248		$	(539	)	$	210

Condensed Consolidating Statement of Cash Flows

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2017

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
Net cash flows provided by (used in) operating activities	$	387		$	109		$	55		$	264		$	(617	)	$	198
Cash flows from investing activities
Fixed-maturity securities:
Purchases	—			(54		)	(5		)	(1,089		)	5			(1,143		)
Sales	—			79			6			693			—			778
Maturities	—			7			0			455			—			462
Sales (purchases) of short-term investments, net	9			206			(8		)	(187		)	—			20
Net proceeds from financial guaranty variable entities’ assets	—			—						81			—			81
Investment in subsidiaries	—			(28		)	—			(139		)	167			—
Proceeds from sale of subsidiaries	—			—			—			139			(139		)	—
Acquisition of MBIA UK, net of cash acquired	—			—			—			95			—			95
Other	—			—			—			68			—			68
Net cash flows provided by (used in) investing activities	9			210			(7		)	116			33			361
Cash flows from financing activities
Capital contribution	—			—			25			3			(28		)	—
Dividends paid	(36		)	(320		)	(73		)	(224		)	617			(36		)
Repurchases of common stock	(351		)	—			—			—			—			(351		)
Repurchases of common stock to pay withholding taxes	(12		)	—			—			—			—			(12		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(86		)	—			(86		)
Repayment/ extinguishment of long-term debt	—			—			—			(1		)	(5		)	(6		)
Proceeds from options exercises	3			—			—			—			—			3
Net cash flows provided by (used in) financing activities	(396		)	(320		)	(48		)	(308		)	584			(488		)
Effect of exchange rate changes	—			—			—			3			—			3
Increase (decrease) in cash and restricted cash	—			(1		)	—			75			—			74
Cash and restricted cash at beginning of period	0			1			0			126			—			127
Cash and restricted cash at end of period	$	0		$	0		$	0		$	201		$	—		$	201

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2016

(in millions)



	Assured Guaranty Ltd. (Parent)			AGUS (Issuer)			AGMH (Issuer)			Other Entities			Consolidating Adjustments			Assured Guaranty Ltd. (Consolidated)
Net cash flows provided by (used in) operating activities	$	202		$	31		$	101		$	139		$	(520	)	$	(47	)
Cash flows from investing activities
Fixed-maturity securities:
Purchases	(4		)	(32		)	—			(474		)	—			(510		)
Sales	4			—			10			725			—			739
Maturities	—			21			—			624			—			645
Sales (purchases) of short-term investments, net	(31		)	(12		)	(11		)	(136		)	—			(190		)
Net proceeds from financial guaranty variable entities’ assets	—			—			—			556			—			556
Investment in subsidiaries	—			—			—			4			(4		)	—
Other	—			—			—			(12		)	—			(12		)
Net cash flows provided by (used in) investing activities	(31		)	(23		)	(1		)	1,287			(4		)	1,228
Cash flows from financing activities
Return of capital	—			—			—			(4		)	4			—
Dividends paid	(35		)	(103		)	(103		)	(314		)	520			(35		)
Repurchases of common stock	(135		)	—			—			—			—			(135		)
Share repurchases to pay withholding taxes	(2		)	—			—			—			—			(2		)
Net paydowns of financial guaranty variable entities’ liabilities	—			—			—			(531		)	—			(531		)
Payment of long-term debt	—			—			—			(1		)	—			(1		)
Proceeds from options exercises	1			—			—			—			—			1
Net cash flows provided by (used in) financing activities	(171		)	(103		)	(103		)	(850		)	524			(703		)
Effect of exchange rate changes	—			—			—			(3		)	—			(3		)
Increase (decrease) in cash and restricted cash	—			(95		)	(3		)	573			—			475
Cash and restricted cash at beginning of period	0			95			8			63			—			166
Cash and restricted cash at end of period	$	0		$	0		$	5		$	636		$	—		$	641