AGO - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to the Assured Guaranty Limited First Quarter 2022 Earnings Conference Call. My name is Alex, and I will be the operator for today's call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to our host, Robert Tucker, Senior Managing Director, Investor Relations and Corporate Communications. ahead. go Please

Robert Tucker

provisions future and results. ratings, or forward-looking for that publicly our operator, spreads, do call. all required financial to should joining update and obligation The reserves, market law. may safe for presentation change Reform outlooks, Securities reliance to we Thank of or credit financial about Act future first thank undue our undertake them quarter Guaranty XXXX. on as you information harbor by statements items the other to our made These or due may conference credit the loss XXXX Assured Private results is Litigation Therefore, contain not you, presentation new revise pursuant subject place you any of statements except not as are financial conditions, affect Today's to events. them, business results new

you're you're website non-GAAP supplement such risk Please between most listening our and our transcript are been our the and a in We financial reconciliation the assuredguaranty.com. this for to call, replay non-GAAP since of may most measures factors. financial presentation, present of If our Information in with references comparable section and filings, presentation, The a measures. or directly Investor presentations to referenced equity presentation to non-GAAP which website financial the to current most financial also note current call. our includes on measures GAAP financial the GAAP this SEC today along investor measures at this financial statements reading and filings for updated recent the have made the refer please that of if call

Turning to the presentation.

the Rob Frederico, speakers open President Executive and remarks, to of are Financial today Dominic your Assured our we Chief Officer. Guaranty will their call questions. Limited; and Bailenson, After Officer Our Chief

to like into to please webcast call you'd call will now turn I As the the for if ask enabled is a Q&A, not over dial question. the Dominic.

Dominic Frederico

joining everyone call. Thank you, today's to and Robert, welcome

produced operating income per the the result solid quarter of X.Xx Assured at of comparable results first in Guaranty in share XXXX. in almost $X.XX, first came XXXX. quarter Adjusted

valuation investment-grade The operating only per billion equity below to new of and cash we and and investment the G.O. $XX.XX now our our contingent credits grade Our $X.X totaling rather X.X% were by new credits to $X.X our $XXX.XX shareholders' settlements bonds settlements, received $XX.XX, represent instruments. well In end by highs key approximately quarter per portfolio. claims we for during Authority to all year the District Islands the general distinguishing was adjusted end vast value. interest credits. These Puerto adjusted unrealized Public paid at extinguish due was the Shareholder's Under losses which for XX our the obligation to in Finance Rico per of of exposure share reached to settlements, Convention Authority. majority to Infrastructure extinguish exposure settlements reduced approximately the debt consensual these insured $X.X Building Commonwealth's resources the value quarter when measures those as billion, share completing quarter on rates. bonds of our -- occurred and remained to portfolio, $XX below non-GAAP investment Center signature share and billion. at rising Authority modest decline at equity book caused exposure exposure our of and as consummated, mainly insured Puerto claims were event staying the Total of Rico's several billion March

will payments. and or the Transportation restructuring insured subject is terminated exposure timetable. the third facilitate Highway anticipate the less the Monday, than Power filed expedited Puerto to settlement service team Rico of federal to on against Puerto the restructure approval Rico of supported Judge Authority, support experienced This half Oversight plan to X% of our is As the of which year. Commonwealth agreed claims this portfolio the adjustment Authority, and we presiding bankruptcy XX, of court debt by agreement previously Rico remaining has credits the second Oversight appointed March past insurance majority gain agreements Board now by our to for that current the exposure of Puerto proposed And Board mediation on is Electric while judges the an a federal

impact largest honor Moody's municipal Guaranty financial the to to It financial commitment and in of bankruptcy exposures. volatility entered AGM to trend from and our in outlook. interest now improved process, our policies remaining the have Puerto active The both stage the having time losses ability a profile guarantee also a settlements wrote the insurance this favorably while in few respectively, well its new to our AGUK Rob of mitigating a the Guaranty restructuring which the our Assured and subsidiaries, United in participation policyholders settlements among And on between Assured our alignment received Europe, results States limited and our in for that AX continued shareholders detail continues proven supports creditors. Assured again provide We and settlements rating its by demand March, on stable the will AX Rico cited expected and in were Guaranty's the more agencies. on upgraded with credit evolution, minutes. Moody's and record. following the

well, business PVP. total And to know than in Guaranty more new quarter we million first $XX Turning unpredictable what production. is all worth performed an Assured environment, producing

XXX% PVP last with and structured by year. each increased finance businesses their PVP Our compared first international global quarter infrastructure

points. results were action good public federal municipal funds XX first for outflows. first the last January action expectation April very XXXX, -- two nearly the on the quarter alone, time impact of market. the exceeded index well basis significant during And bond benchmark U.S. a and experienced municipal Fed PVP bond finance only since Inflation XX-year Our rose municipal decade. In first in as AAA had the quarters increased of

and led quarter than exceeded rate quarter, of issue all insurance entire first annual par Insured outflow of was years the first with was benchmark exceeded XX% penetration more compared muni share. municipal than also industry XX the year. issued, $XX for the issuance market penetration XXXX, in the X.X% again years. a the and quarter in dozen X.X Over which bond of net with par above more from penetration highest rate points insured a when We new volume billion. the that in grows of last funds of par basis X% par new down than Total XXX highest more

during markets. of par primary highest billion year's Assured quarter in insured $X.X XX was in total, the U.S. the the sold years. $XX Our first sold Guaranty million in first public secondary quarter, billion par bond -- finance the the during the totaled finance PVP of and U.S. insurance $X.X first the second quarter. public on In for

AA to including on We relative increased for or see to and million of continue Metropolitan our of several transactions, AGM that bonds, insured XX $XXX on transactions recognize quarter, $XXX for is of a the our highly Washington $XXX Los the Moody's par million million million bonds Dallas guaranteed the in in our million provide. sign market many the for the market's execution and road market or also to the of car using a of insurance even institutional par University bond Among amounts large of by largest some revenue our for category, S&P value Airport more toll Department Angeles liquidity can guarantee project hospital the transactions sold can facility underlying refunding insured bonds guarantee of Airports improve of price which in significant of quarter, ratings stability demand municipal and rental revenue credits. issuers total guarantee We believe with made Louisville. LAX revenue possible the rated we $XXX during add $XXX the credits

quarter. Yorkshire PVP guaranteed obligations the second Group to £XXX U.K. is structure. five-year bank finance, water The also Global other guarantee company. during an Limited. the transaction capital bondholders million a the portfolio lower covers during in sector. provided time While other rating senior was and profile transactions of U.K. payment premium this overcollateralized of flows $XX and certain of In senior Water contributed type highly we the million This a Services quarter, for of service low due $X of infrastructure debt One have Water PVP international that rental produced this cash road insured repays charges first we reserve we income securitization creditors in Yorkshire liquidity guarantee transactions, come they the insurance Structure among of service have the rates, agency the debt Finance of within enhanced portfolio. risk reserve guarantee caliber comparatively million, a facility

segment debt interim in boomed close to of Management adjusted cap that that one CLO enabled its slowed a million. an improved breakeven for IM's on market Partners April. during April, Healthcare operating to reset the Fund II precipitously, exceeding in CLO had in a primary relationships final XXXX priced although Assured issuance the new its investor Assured Our and the quarter. quarter $XXX close CLO And hard closed strong it and original income We Asset first

floating and was issuance geopolitical by liquidity market challenging rates, During and interest the there and primary strong paper, loan market, demand rate rate the CLO floating market the defaults a conflict. policy, navigated a change quarter, for Assured investment rising credit with characterized monetary environment remained volatility volatile. fundamentals was In IM in and yet reduced few

the and become of spreads, because attractive, of XXXX rates, Current is picture valuations widening funds in have opportunities. municipal market's municipal rising the outflow a municipal from heavy Although the fundamental quite credit since creating quarter investment bond credit was first lack of in bond better liquidity market. good, municipal now performance the also more the XXXXs worse

auto and car prices. notwithstanding to market the returns, because continued portfolio ABS consumer sheet loan deliver great elevated strong car balance conditions, more used and of because new part benefited from Our in lack the uncertain supply specifically, of securitizations the

say the crisis have the Assured troubled its I at Guaranty. Before us to I conclude, and want conditions in that tragic refugee deeply Ukraine

municipal the Philanthropy quickly for Corporate $X matched which company every a employee-led the relief involved number including believe humanitarian is the these and Our peace We capital from world to $X contributed just exodus and of XX-year total, in the our Guaranty additional The to heighten to municipal for At XXXX, charities $XXX,XXX investors yields making since live AAA people for to corporate one uncertainty expensive. Last In safety. contributions identified capable and corporate directly Committee by bond organizations. total the markets. from of retail liquidity two-to-one contributed month of throughout saw have a employees The our nearly donated. has three the has its by that more the are we today's employees war pandemic-induced March of geopolitical forces time level, for the and funds raised to being donations match, notorious a effort. in days in Assured first exceed $XXX,XXX borrowing of the economic X% Ukraine deserve continue is we in crisis. the month municipal

not for that finance in international credit would guaranty look kind would the and spread seen rate financial increase The likely to and came news, next our gone leeway. issuers to rate plummeted on for have will insurance. competitive, us stock Fed's the the this most to of conditions an are fears that widen dynamics allow product. with frequently half-point The the said tend away. demand conditions growth indication be volatility and to come. encourage create recession week have sectors. more -- then entering have spreads often increases I pricing and indicating We investor recently. day, of We this value play give which Market Similar our All market structured could in business should soared the credit involve add fears greater more opportunities recession executions, at interest bond cost-effective greater for

for money company's to while in our financial our and times, and safeguard be our resilient difficult model Importantly, shareholder protecting has business value, issuers. policyholders strength we save proven

a looks call period market be I like to a the may we long emerging have our be the marketplace environment. for conditions favorable could Rob. successful been of springboard market now believe a We turn growth. it in more will over We conditions, entering and through the challenging

Robert Bailenson

$X.XX you, the morning Thank pleased I first to on -- XXXX. XXXX million, more call. very amount am adjusted and or in of of the twice report operating quarter to of everyone the first adjusted good quarter income share Dominic, operating $XX per income than

Rico the of increase associated adjusted been our in expected recoveries. initiatives includes embedded attributable credits The of the -- credits operating first million $XX an with the also first of on of XXXX Puerto XX% of Puerto two results compared of reserve. loss we of on Insurance $XXX and increased Our losses unearned the reserve, strong Rico as to was by the acceleration effect settled and settlement. segment with XXXX. benefit Puerto positive had dates long-standing quarter this mitigation, a unearned million, This value and of covered year-end the an the March such that previously in benefit premium key development were the which between quarter premium management. received includes recoveries the income received strategic quarter economic includes that Rico the success primarily capital It associated

fair recognize development, not GAAP, the in only value These that premium In to risk, due of increased had recent at acquisition large adjustments the partly reflected Puerto risk unearned Assured of with Rico because loss we date been to years. does Rico, always significant monoline. repricing had time the extent on timing you economic they other by the premium that exposures As reserves. value or by Guaranty recognition loss certain relative the case -- know, we the unearned adjustments, of fair of monolines acquired reserves to Puerto credit obligations the can coincide original under the losses we timing insured the exceed from established of

and have accelerated policies income, the recoveries paid to $X.X premium embedded largest on of the Company million our income over Under that credits been into that unearned adjusted been net consisting operating billion settlements, million quarter. were claims losses and in this cash, financial in of Now reserve, premium guaranty been the unearned has and single net contributor reserve had extinguished, $XXX of $XXX contingent also insurance these Puerto collectively value received and are Rico approximately Rico covering tied value total exposures, settlements quarter. recoveries recovery in sales recognized our provide of loss to the exposures expense and Tax as Puerto intended in the reduction receipts. Use Puerto and also bonds, were CCDA new a the of additional face PBA, instruments The PRIFA the GO, performance XX% to Rico that these represented

additional paid did and the effective established and addition, pursuant date bondholders settlements securities options available to sold into in to elect bonds the In the under custodial settlement may interest the market placed conditions, it accrued some of our Company not Company holdings. the trusts Since new mid-March, that the for the of has the to plan. of be cash benefit recovery sell the principal Subject and on portions CVIs. we of

is earned and This The sold driven Puerto the expense has accelerating benefit by first to million recovery Rico accelerations, of economic Puerto week, net which acceleration XXXX difference million the contingent of primarily due and the million, first $XX was a and XXXX, $XXX first $XXX total rising this were benefit Loss of $XXX new in XXXX of attributable the instruments expense Puerto expected XX% the of to increase reserve. value of $XX the quarter increase of the quarter unearned quarter in Rico $XXX the a we in also quarter to Interest to embedded been unearned economic also are settlements. due of in million to bonds of the accelerations million the the As have in $XX over accelerations these first was settlements. -- of XX% the premiums the related premium settlements. in over had of million at Included XXXX were affect the effect from was over of first first premiums impact reserves, a losses, rates. quarter of development million. risk-free due of million. development XXXX economic development In of Rico which effect $XX Loss that including in discount to is of rates discounted of expense mainly XXXX, premium significant acceleration rate. the quarter loss

first the $XX insurance in due and million in was total of XXXX, investment because our and of XXXX income to was with decline compared losses gain net $XX fair The than the million primarily accumulating of results, investment $XX equity Rico quarter quarter compared security portfolio quarter fixed segment the claim income of of first first the of in quarter investments certain from other on available-for-sale first the which the and income. lower primarily of XXXX, in and net income the the anticipation million XXXX, maturity of investment portfolio associated million of in net balances. to of quarter is quarter compared in loss first first lower from and in average first investment $XX investments, fixed volatile of on with million more which due alternative the XXXX, Company was The in portfolio, income payments. a alternative XXXX. to declined maturity investments portfolio a movements mark-to-market with with investment AssuredIM small in consists is Turning XXXX been alternative had the quarter a function $XX mainly earnings liquidity was from value portfolio in the Income net the Funds from Puerto

into assets As investments, from we net shift alternative fixed-maturity income securities fixed-maturity investment decline. may

on the to raised we achieved to and wind-down on continued long-term, adjusted segment quarter projected XXXX. the operating where enhanced of funds from AUM In the compared even of first we of legacy the the strategy. quarter quarter of targeting investment we healthcare been XXXX fees Management and first The broke and income third-party improvement new loss third-party the first has alternative the primarily for our The which XX%, over fixed-maturity in exceeds over with funds returns based performance portfolio, Asset raised returns new have million date. healthcare portfolio in are However, a attributable which to $X asset capital. of is XXXX,

We us objective, core ongoing strategies. will are the and AssuredIM optimistic With program repurchase the to for our legacy behind continued the X of Subsequent for put share we our million $XXX million. close, with quarter an additional that increase funds repurchased focus on of the we XXXX first shares soon million X.X $XX in the management respect we to million. the repurchase quarter shares capital

As of $XXX is purchase remaining shares authorization now, million. to the Company's

for of companies From AGL. repurchase available a adjusted million our adjusted funds needs, in or of was and beginning along new in cumulative business operating of have Continued our production share, approximately benefit adjusted have the $XXX our manage $X.X currently shareholders' these resides value per $XX million, new in income with our to for holding per program adjusted effect over liquidity equity and reduction results expand metrics our in These on operating or The the share positive of capital. value approximately total returned and share XX, shareholders' repurchases cash $XXX, a to records $XX standpoint, either XXXX, quarter respectively. and March we in billion reported have shares shares repurchase which liquidity $XX and resulting $XXX investments in pursuit propelled our to repurchases, are per shareholders, outstanding. for the book a to initiatives of the operating XX% equity XXXX, of Since strategic use in of business share. book

alternative that company's operator the period. continue to to will to the strategic the forward to year. will you. our give turn instructions over end Q&A new I'll substantially resolved single for exposures, on interest the the Puerto insurance more contribute rest exposure we our the goals. and that business largest Management by and will and the strategies environment now conducive be the be of of progress with long-term segment Asset BIG rate were this you call recent Rico optimistic The asset production to year As look for the Thank we remaining progress to

Operator

you. Thank

your session. the begin Philadelphia from [Operator for Our now question-and-answer from Hymowitz We Instructions] question Financial. comes open. will line Jordan, Jordan is today first now

Jordan Hymowitz

taking guys, the you Thanks, Scott. quarter question It market decade dialing of is what? margin these in My was calls. pleasant my is third joining you on in first mentioned share, the

Dominic Frederico

something, eight for industry us, For point mid-eight. point, the five

Robert Bailenson

X.X%

Dominic Frederico

the prior-year. exceeds X.X% which X.X% on the

Jordan Hymowitz

number as And to used can crisis like that be? pre-financial you us refresh to where

Dominic Frederico

opportunity Well, I what the for about to percentage interesting. early once pre-financial if the talk you is and some insurable we out pretty that. thing here call therefore, always today XX%. XXXXs, what what but again, -- the got But it back and I've you dig market insurable depending crisis, of on them was can interesting is if remember, statistics that's go our

XX% So get XX% of ultimately I believe share that's market insurable market that the a or the market XX% we the of on marketplace. a can to net-net share

idea, first in XX.X% the if deals industry So rated XX.X% the to and -- deals. at of the deals, give you of rated of insured number all quarter, you an insured XX BBB we look A all

the of So on now is basis BBB. a -- par XX versus a think A the for transaction XX.X% for XX On that transaction and I about number in and being is A right achieved that XX.X% BBB. that's basis, the basis single achieving

said, and in insurable that I everything. well A, as with Jordan penetration. that to how the market just the more want up Jordan, which are sympathize seems where right to hope trending as are got of direction. the was lost depending In issuers we're be not The obviously, the the numbers But pathetic. those to innings BBB So our in in the what I typically there's XX% drive achievable last opportunities ratings to ninth as marketplace, I XX% night, insurance get ultimate to the think the my ratings smaller ones into I on the need larger do. the going are. insured view, do you

Operator

you. Thank

line Geoffrey now Geoffrey, Partners. Our comes & from next Dowling is question your Dunn open. of

Geoffrey Dunn

Thanks, good morning.

Dominic Frederico

Geoffrey. morning, Good

Geoffrey Dunn

to think back with past of more last heard going sort how on judge if But but some not been mediate move to this panel this pointed comments, I PREPA, Tuesday plan that that of to and here good also an particular into with go a they a update respect months were what's HTA the you forward. sure you proceeds you your RSA? some bit missed from and of initial this. to in very to can I couple detail little I'm come PREPA right, I say have over the I dates then the my

Dominic Frederico

Got since to The Judge be panel, did very an we've Obviously, Commonwealth concern it, rising place on mediation for very talk the we're of government to oil what rates July involved so private timeframe, would have the or years respond. we in which what's judges Judge we're service. a not appointed Board to panel. June like them and PREPA, seem what is immediately of mediation experienced the them they rather at They day the wasn't in obviously to an with. can to the seasoned for in to point on, rejected extension be The that which relative and in Commonwealth because the Control to waiting gave point which to a about RSA the Judge was and had price with discussed. pleased that, of for for being publicly X, ask the with to debt been extension pleased two-plus that reply is this terms the request -- if time,

they obviously, the HTA, of terms In plan. submitted

and go the get end done the expect before court of and Now fairly it's going certification. smoothly that the approval We year. go to the process through to do

Geoffrey Dunn

the maybe what's towards PREPA, get around pushing Puerto a quarter resolution? expedited like seems ago wants Judge except still to to this telling Is back was feeling done this? forward particular, tone It this Rico. in the for aggressively And on an maybe everybody basis, Okay.

Dominic Frederico

done. right, little But correctly, PREPA, less our a one remaining of which RSA, going this this you're They're less. exposure get if Puerto Rico, And the back is. everybody tired credit she of a becomes wants obviously, be it And little shrink believe We all I ridiculous. is forth. getting is and getting and to to to significance the fourth as we remember fourth

to problem. a billion with why with million If but you're dealing problem a problem, of a from terms $XXX left Puerto It's greater and dealing $X.X you an not problem, Rico. exposure in it's got that's

Geoffrey Dunn

here Okay. And procedural? speed any there the then should process for? we out last remaining question just bumps really be Is watching HTA. Or with are

Dominic Frederico

think there's don't bumps. speed I any

that is through judge indicated time. to it think she All is at point pretty confirmation, I the it do confirm. has go to procedural much this which willing in is has

expect So to that go smoothly. I would

Geoffrey Dunn

thank guys. Great, you

Dominic Frederico

You're welcome, Geoff.

Operator

Instructions] [Operator from Tommy open. now comes your KBW. McJoynt you. next Thank question of Our is Tommy, line

Thomas McJoynt-Griffith

Hey, good taking Thanks questions guys. here. my for morning

Dominic Frederico

Tom. Hi,

Thomas McJoynt-Griffith

versus of a With you new use economic some signals to of kind balance you kind how might you ahead. all new how be of money flashing of Can least think about attractiveness capital talk yellow kind about Just at with share that versus putting recession preservation kind those production? the of repurchases work kind of of capital?

Dominic Frederico

that as capital purpose in about look can't to the new R&D. we strategic the management opportunities in increase through Puerto at loss look less and you volatility scenarios and one we of that position This with work excess mind. And to move period Obviously, as authorization we in talked the two see Tom, a we year as obviously, we're E in been we put the objective. continue and E as Z, Rico ROE reserve forward. still in got can long capital and available down. today and can that's out we at if more we'll as and of cash, aggressively, there, as we've now then our as Therefore, to know expected the guarantee. share we a financial strategic the marketplace I'll carrying our for. companies. time, the excess capital significant be increasing factor the to operating as well That's see, all the the in the its look And talked We even call, asset a takes key the we move call, components, capital objectives is We've our significant we resolve got and well believe the R, capital what need for last within get for we our company. Well, becomes that's we the as still strategic repurchase to credits. of our opportunities And key this management excess to

Thomas Mcjoynt-Griffith

concerns that then is spreads spreads kind a a impact And kind gap of in spot? your capture kind about the talk of of wide sweet spreads bit. economics, but enough optimal wider better? the those gears too widespread you Is of optimal spread business? -- there level sweet the Can where spot the Or there kind are then there Thanks. that of switching of kind you or little kind are out credit when wide, of is a

Dominic Frederico

for spread to us, be wider is the honest you. with Well, the the better,

metal credit think I credit we and relative proven have our performance. evaluation to

think with recessions. difficulties the and $X.X you markets. shareholders. experienced large our catastrophes. resources about nontraditional guess $XX traditional what the billion in stands returning We've buying to We've bankruptcies. municipal almost -- Assured experienced back experienced And natural We've pandemic. and significant we of faced If here Assured still experienced We've after billion

market to pretty -- to think know I reflective how do well. Underwriting ability still We've the marketplace. any handle risk. game we our of So shown is

I of a And still But we does us, So opportunity. in requirements about treasury, which well, going on do to new significant to in spreads today significant matter create approving impact that do it to terms we're the think forward. credit. are, have used a terms for our lowered getting X.X%. today. no opportunities, underwriting a we to have XX-year a what talk business we X% business seals of, seeing X% going little think We're maybe then for it's loose We the

Thomas Mcjoynt-Griffith

just last Great. me. one Thanks. then And for

went the there's Asset that performance increase fees. comp. for like normalize jump about to Is going there to to the through dollar looked will Management that higher Looking it performance to be that that segment, dollar It was comp. the higher sharp increased of flow the to most just -- at in going when fees

Dominic Frederico

relative to you advances Performance for taxable we fees to are relative GAAP, for make have that except the to fact LPs. the accrue something that can't liability

benefit those LPs. are And we of offset taxable that the So that have recognize what of comp that's the the to rate. tax quarter an really our of relative first we being by you true same performance. against to therefore, relative accrued then saw get funding in an it's to on of We is And advance income LPs. behalf the tax additional kind our one

we performance is gets the it as tied by fees -- bit pay to well. a compensation So compensation muted

Thomas Mcjoynt-Griffith

you. Thank Great.

Dominic Frederico

You're welcome.

Operator

you. Thank

next comes open. Michael line Investors. from Individual Temple of Our your Michael question is now

Unidentified Analyst

Good morning, gentlemen.

Dominic Frederico

morning. Good

Unidentified Analyst

we rates, quarter to -- now have further if But it moved underwriting anything. apologize regard widen, you for seeing I two if didn't the the environment to in in spreads second and I'm was begun to and credit we interest again, having were sell-off joined this just with in in because significantly new widen we progress. with than far even interest asked. rate curious interest underwriting are in year already even spreads rates a spreads, see I are looked issue certainly widening, quarters higher underwriting begin spreads different the here much QX those really a with ago. like ago call

Dominic Frederico

widening, to but are you've problem opportunity, the a creating because you've market spreads volatility got issuance Well, got extent. have Yes. the people in of the you certain afraid then more market is

lot spreads. a seeing relative of you're offset volume by to marketplace for So better the

We secondary spreads out, than except in insurance default, given volume. capture AAA segment you're And of in on get to some larger the spreads quarters transactions. returns finance. the to -- also percentage line, see and the the up, go by for business quarter as premiums. contributes service, done is you any real going outflow product. quarter Therefore, since transactions it for increasing talked for your returns remember, spreads But significant previous can in second we and by as number. reported of is by the demand our structured international the muni premium definitely we we've rate unique a quarter. paid influence tell of the terms rates an really like calculate funds, debt see there's goes the premium call a municipal this do the on see is a that a positive continue up. increase impact returns first as able larger Also to we were this on And out widen And We the continuing I all into four higher with our

refunding's the the which of kind becoming now volumes secondary were significance market. in good than we're because primary business, lot in typically our to of a always the years on seeing rates greater more greater muted the secondary these in last So and of of share couple because the pressure the and you decline of and is paid market, secondary get a

Robert Bailenson

just in million I 'XX Yes. million quarter $XX versus discussed, the versus of in wrote And transactions, only $XXX as $XX in 'XX we par Michael, of first Dominic mean to million secondary and the give $X of million. some premium market you numbers,

less in market could see benefit to and paid when the you secondary. becomes very there's that real well us with we a So in issuance volatility, secondary get primary

Unidentified Analyst

All very much. right. Thank you

Dominic Frederico

Thank you.

Operator

you. Thank

final apologies, will for remarks. any hand question the today for -- back I Our speakers my to closing

Robert Tucker

I'd us thank joining today's like everyone to you, Thank for on operator. call.

additional please call. to free much. a Thank give us have questions, If you you feel very

Operator

joining for today's you Thank call.

disconnect. now may You

Assured Guaranty (AGO) 6 May 222022 Q1 Earnings call transcript