Earnings Per Share

12 Months Ended

Dec. 31, 2023

Accounting Policy

The Company computes earnings per share (EPS) using the two-class method, which is an earnings allocation formula that determines EPS for: (i) each class of common shares (the Company has a single class of common shares); and (ii) participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. Awards and share units under the AGS SERP with non-forfeitable dividends are considered participating securities.

Basic EPS is computed by dividing net income (loss) 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.

Computation of Earnings Per Share


	Year Ended December 31,
	2023		2022		2021
	(in millions, except per share amounts)
Basic EPS:
Net income (loss) attributable to AGL	$	739	$	124	389
Less: Distributed and undistributed income (loss) available to nonvested shareholders	6		1		—
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	733	$	123	389
Basic shares	58.4		62.9		73.5
Basic EPS	$	12.54	$	1.95	$	5.29

Diluted EPS:
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, basic	$	733	$	123	$	389
Plus: Re-allocation of undistributed income (loss) available to nonvested shareholders of AGL and subsidiaries	—		—		—
Distributed and undistributed income (loss) available to common shareholders of AGL and subsidiaries, diluted	$	733	$	123	$	389
Basic shares	58.4		62.9		73.5
Dilutive securities:
Restricted stock awards	1.2		1.0		0.8
Diluted shares	59.6		63.9		74.3
Diluted EPS	$	12.30	$	1.92	$	5.23
Potentially dilutive securities excluded from computation of EPS because of antidilutive effect	0.1		0.6		0.1