AGO - Earnings call 4 2023 | Assured Guaranty Ltd.

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Operator

Good morning, and welcome to the Assured Guaranty Limited Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Harry, and I'll be your operator for today's call. [Operator Instructions] Please note 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. Please go ahead.

Robert Tucker

thank Quarter for Results and and for Assured Conference operator, Fourth our Year-End you, you joining all Guaranty Call. Thank XXXX Financial

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

to you're to replay Information or today call, the most for SEC filings, a our of the most may call, this this presentations website reading and refer risk for the since note updated transcript financial call. listening and that statements filings if please current factors. of Please have Investor If our made of recent the you're section our been

assuredguaranty.com. the a This presentation, financial this and non-GAAP are includes references to We referenced which investor in supplement measures. the measures non-GAAP at financial reconciliation on our with between also measures measures such directly presentation, equity financial comparable financial along GAAP in most our financial and presentation present to non-GAAP GAAP website current

presentation. to Turning the

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

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

the will to call I turn Dominic. now over

Dominic Frederico

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

million again of in combined international than X% public exceptionally generated structured year power of Guaranty sixth XXXX. XXXX diversified XXXX. and as strategy U.S. PVP business PVP. infrastructure consecutive This in total $XXX more businesses to the our of produce finance, production was our We demonstrated in in million global Assured which performed well than and $XXX production almost new the more finance

we the with the penetration XX% insured industry public of par highest municipal led bond sold. new-issue U.S. guaranteeing XXXX, In finance, since market insurance

finance international non-U.S. doubled in the PVP also produced public year-over-year. Our its we more previous we in direct a amount business infrastructure, year structured increased finance, PVP the global decade. also wrote our XX% than highest in And it -- to PVP over as refer which and

measures year-end share share brought per we share and share increased per Additionally, key adjusted and highs. adjusted to $XXX.XX. shareholders' XX% operating rose new of to XX% value shareholder to increased value Shareholders' equity $XXX.XX; book per to per $XXX.XX; XX% equity

business the management expenses. of substantially We year net approximate in for million completion of for asset transformed gain in an transaction Point, That along pretax our return with asset our milestone of with transaction, Sound the all of contributing a AssuredIM-related resulted the with assets a interest XX% involving $XXX other in transaction management entity. our separate business combined

management strategy asset we significant XX% distribution an with Sound Most of as entity our importantly, and own transaction Point capabilities. the now advances significantly approximately scale

believe independent to Point further we be which management we and from asset of earnings, Sound broader portfolio. and our provides should receive participate invest. increasing may alternative strong premiums investment driver in alternative the risk-based a to in of fee-based that to a insurance returns diversify also in a may our earnings, range is allocation We investments which our our strategic investments increase by investment improve the earnings transaction stream of allowing us

a we change year. approximately capital $XXX results common Ben including benefit management meaningful X.X during the more million million tax which of say and the in We resulted program, Bermuda about tax repurchased a code. will for from the total shares our recorded,

We in announced, increase we quarterly year, for also the an XXth dividend. of in dividends consecutive week, $XX million our last And XXXX. paid

our to flexibility dividend further pleased which say to special I'm increases company, a Maryland that And capital. holding to our $XXX manage regulator our has our AGC from approved million

our we of are a XXXX, share For targeting return $XXX to million repurchases.

peak we and high-quality, classify we our Also further portfolio almost our strengthening Net investment in compared our during as portfolio. of $XXX of well-diversified XXXX, grade X.X% by of below or X%, portfolio par $XX the of insured and saw outstanding increased with billion growth XXXX. now insurance billion X.X% last only

our Regarding possible, resolving is month. to We PREPA PREPA, we'll toward next consensually, necessary. planned hearing our plan We and and claims Rico as remaining through of adjustment is this in Title proposed protect the process the non-paying if rights legal but Confirmation again litigation Puerto appeals PREPA confirmation exposure. enforce committed last Plan remain headed a creditor that our note bond III contested

look handling and of to positively Rating as ratings and as our S&P well KBRA, both Rico continue Assured of S&P AA+ cited direction at ratings their on agencies our in agencies stable our Puerto the with affirmations Rating Both XXXX Kroll at Bond strategic Global AA Guaranty's during settlement activities. Ratings outlooks.

deeper Before important accomplishments, something I these to want promotions say that and management focus strengthen years to senior about for into we corporate team come. our dig

be, CFO. call. announced him of X, them both you'll November, Rosenblum Ben as would January in on to know, And Rob may and from of hear promoted you we as that COO; later succeed will As Bailenson this

transactions, are jurisdictions. and been for Head And created our new enhance We Crowd has new our now business. including strategic announce appointed new of position and to Nick in we classes that this Origination to approach to Global guaranty business financial executing asset pleased generating

for Limited Chief U.K. Senior International. recently XX Dominic serves finance assumed responsibilities U.K. been Officer infrastructure over has in of and Assured as CEO of as Guaranty Nathan has Assured and Head Managing has international most and years of Underwriting Nick's of the AG Director Dominic been

out, growth new inside I opportunities. they I grateful us greater business in leadership talent will tremendous the believe know and am and for professionals business These and lead company. our of bench our into

XXXX our became what a year view, remarkable well AssuredIM, for gain transforming firm. million and were Guaranty. then with Assured a investment, our $XXX rewarded a initial was In it for We're to asset where pretax net We ownership for making diverse valuable now benefit the growth it Point, future the scale success. strategy more capabilities our of position and management interest and further through Sound in firm's our advancing

for Our shown strategy to freedom was and change. us diversified production give flexibility as one conditions market any

our municipal in of stable. which no penetration becoming the believe our bond proposition, signs a more understanding stage value of support We widespread increasing showing will of demand market more product for indicates economic insurance world increased

federal funds our including proceeds their incentivize insure. potentially we diligence we and own complement of add funding with municipalities and Investment expertise, bonds And Infrastructure partnership it XXXX finance Jobs analytical capabilities great public-private continues Act financial infrastructure to due where to and strength. can value financings to could encourages

other planned our Lastly, management dividend we we laid strategy, XXXX. further strategic the initiatives have through special capital for foundation for

growth manage protect our Looking continue insured and and prudently are positioned savings well to investors and risk will forward, markets disciplined we capital. management, we've for shareholders because produce underwriting always and for we through and our done: issuers, expand actively opportunities do what broaden

our call I'd now financial turn the over like business. Rob guaranty discuss to to to

Robert Bailenson

on the growing company. financial Thank this you, on Dominic. further role, business our new guaranty continuing look forward initiatives to and taken execute other to excited have at and I to I'm strategic

million most especially a public PVP of XXXX great The reduced relative Guaranty. production for principal a because, outstanding the faced supply year, finance. Assured U.S. for was $XXX issuance in an lack due was result, our of of to year we new market,

finance intended, as off of as our paid non-U.S. origination businesses. our both in we and strategy structured three-pronged benefit finance The growth significant produced public

the PVP, $XXX U.S. and structured million increased While an we finance in by year-over-year, public of our the PVP year, had producing historic to to PVP, non-U.S. global public of PVP million. XX% largest was, as $XX million usual, contributor $XXX total finance, finance

insurance both XXXX. to demand and In in primary Assured level The penetration specifically municipal XXXX, the rose insured U.S. in market bond since public in from saw XXXX, industry, highest Guaranty X% increased the X.X% finance, annual in of general, XXXX. par bond the

industry, for driver in $X.X Assured new increase the of par the bond year-over-year $X growth over billion the insurance in issue insured accounting Guaranty main sold. billion was the of

XX% of the effectiveness market XXXX, market of investors' in bond conditions deals in increase its insurance that sold economic during the of has rating when recognition provides, access. And looking benefits XX% transactions single and XXXX was rising and based uncertain volatile recent depreciation up the believe than and investors' across especially of issuers' insurance. from strong our to single-A XXXX. growth in observed remained more notably demand around space, at on sold, used par insurance While space to target municipal where reflects We been greater cost of A-rated prior years growth spectrum, capacity number or increased XX% demand the the the both the years in on used

insured new highest the billion we XX% year's market, of issue XXXX, In industry higher billion $X in the new-issue and by par. representing insured previous $XX.X than par the the XX% sold, of

of We than a deal period of with year. large rating over small last levels quarter, insured We terrific par $X.X fourth of last have year par, primary years. exceeded issue in higher of the same X billion XX% new ended $XX the insuring in X billion the billion. as sizes XXXX in as a wrapped transaction XXX wide demand $X sectors, sizes. as range with across issues million and new $X and saw We as We

believe we assigns to indicate further insurance. the statistics the X our value market high

XX of that number insured XX market. rating we par X XXXX, in in Moody's. category insured with the a at we the The underlying $X.X total primary billion, In from first with were transactions the transactions, or S&P is insured least AA of which of such

bond of just The perception includes value benefit as were own fact selection, also payment credit it stressed, reflects financially from for for market of our that guaranty if credit insured. timely potential insured hold an not market underwriting, as better than later of the to not our ratings which insurance our proposition, but are the our value underlying and whose and it credits whose surveillance still becomes principal high interest, positive its

transactions insured of is or our XXXX, par $XX.X with of statistic $XXX in The strong amount this billion. We million believe demand XX large institutional signals such We second of insured accomplishment we product. on ensured transactions which a for par number aggregate the more.

$XXX billion New million Authority of the International Bonds; Airport Power on State largest transactions municipal on the million green on Airport Houston, Authority Kennedy $X.X of Dormitory $XXX York System insurance F. bonds; John bonds. of New were: of bonds; X on million Texas $XXX and State Our of U.S. York XXXX

in participated Additionally, transactions X in Texas, other The Award of Year Deals Bond their in were categories. the Florida of large we respective Pennsylvania, that and such winners Buyer the

grew become $XX has million a available finance Non-U.S. U.S. wrote Insured we consistent PVP of was various the primary of significantly XXXX, our public airports, Heathrow producing in million the production our than supply, of production years. of in market where last by X constrained performer, public $XX including While our we sectors, amount other PVP markets. Airport. each first for across more finance In infrastructure transaction

presence a business have now to in Spain, we in effectively. our which new Additionally, more Continental Europe originate Paris joins help office

to our steps experience a in market. we hired the dedicated an lead In professional taking footprint, addition and Australian Sydney opened in expand are to New markets. further have European Zealand long and in effort, enlarging we this Australian office financial To with

In $XXX double finance, new result. than the business PVP, we structured global more of million produced XXXX

wrote syndicate banks close capital the optimize wrote institutions In focus to companies finance to be we since ours. of we risk an most terms continues XXXX the and of Providing and structured tools utilization amount PVP like insurance important direct year. activity, and last twice to direct

opportunities fund year, and corporate funds, the advantage and took finance. across investor with we During including sectors, pension companies, banks, clients insurance pooled of asset-backed

them commitments. continued help work to make with We style finance, banks collateralized inroads to we private where provide investors' to funding funds equity into by subscription credit

are business XXXX in production. strong As begins, to we start a off new

opportunities start more We of provide to insurance. bonds are increased to seeing issuance muni XXXX, creating

financings capacity increased for spending we ensure principal financial interest large-scale project impetus payments, not timely strength infrastructure public guaranty provides year infrastructure bring large with as partnerships, federal to As years well but and the and only of our established our projects, our records our we non-U.S. public-private of success. businesses finance with experience finance both well and including and global structured underwriting of as credits recent enter also

to Ben I results. to our will now over financial turn the call discuss

Benjamin Rosenblum

call, morning. you, and with to and Dominic, looking you. the Rob of excited forward I'm to working joining Thank good be all and I'm

$XX fourth fourth quarter the to operating or share was that compared I quarter am XXXX. income with per report XXXX $X.XX million of pleased per $XXX $X.XX or adjusted share million in

Bermuda XXXX, Before I effect new income. insurance our legislation passed I detail go had corporate December the a tax, results, a into significant adjusted highlight wanted implementing was on income change quarterly X In to a subsidiaries. Bermuda on operating which affecting

difference the beginning law insurance ETA an of rate taxes, economic fourth XXXX. income. of $XXX of of million and carrying will be reported corporate of or value over the each benefit in utilized resulted in new in be the beginning years, of transition establishment be is ETA, assessed The adjusted fair Bermuda XX a to as at to The expected in adjustment, XX%, the a will operating subsidiaries. and tax to value assets XXXX equal between which Bermuda income allows quarter XX to that payments deferred market liabilities the a reduce was asset tax XXXX. It the

benefit, adjusted in the there components operating income fourth of income Bermuda quarter to a of addition tax the In noteworthy are other few XXXX.

operating portfolio adjusted income. the of component the contributed XXXX to segment, In fourth quarter every insurance investment

now were contingent Rico, Fair million loss sold were from in a bonds comparable quarter our to is quarter as value connection resolutions of we was in $X received new Rico. have reached various fourth the received which or those with XXXX been part million. amount reducing Puerto gains the Also in $XX redeemed, all fourth of Puerto XXXX recovery of of XXXX, exposure CVIs, of while that with resolutions or note instruments, the value

of Second, million, was equity our a earnings alternative amount $X million. a fourth comparable investments gain quarter $XX XXXX, of in XXXX of loss while the of was the and

million in higher mitigation in of securities loss of from of balances well quarter the short-term to net increase was short-term And $XX higher year. compared last as generated $XX XXXX The and fourth short-term securities. finally, with and investment fixed-maturity the interest primarily attributable quarter rates higher fourth investments million income income as average

quarter premiums revenues attributable Puerto from derivative XXXX. $XX were accelerations down and in fourth $XXX in to due million earned and premium of in Net the to million the XXXX, of $XX million exposures XXXX, Rico quarter Highway in credit Transportation resolve fourth

were slightly XXXX. scheduled earned However, premiums net higher in

attributable of $X of is metrics $XX development expense of The quarter loss associated between impact loss the fourth million the deferred with in these premium of changes expected with to and revenue mainly in were economic Loss the losses. rates. transactions million discount difference XXXX

a operating Point, In the generated in in first million. X-quarter our asset and which is $X establishing management of adjusted XXXX. segment, time reported asset lag since the This reporting share segment after-tax we the time Sound income are income is earnings has of on this first management

finally, $XX York to benefit And the benefit in new reflects to application AssuredIM the jurisdictions resulted allocating changes corporate the in regulations across reflected management and fees. changes for The tax the income. New asset methodology the adjusted a in of of million, which retroactive year's this relate methodology operating previous is income division

income larger in operating distribution the of per was history most Point capabilities, more manager or a in full $XX.XX Point, a was noteworthy strong into to management. a and On completion assets Sound basis, year with the operating AHP adjusted $XXX asset transactions AssuredIM opportunities array of contributor adjusted of in a investment diverse share. XXXX Sound million interest and growth transformed The that minority under a significant income

Sound gains and transactions or collectively $XXX division our corporate The in $XXX significant of on strategy. Point accomplishments represent an earnings generated after-tax AHP diversification basis, million and million,

was the cumulative tax initiatives excluding the long-standing the highest of income XXXX operating ever reflects adjusted been. a On effect even has across basis, effect Bermuda our of the benefit, share business. all This the per aspects strategic it of

over years, a in earned to scheduled all level business, have business has which the insurance net our our across several of stabilized new past premiums. we sectors First, written led

exposures below par resolve only our XX, to grade loss mitigation front, with XXXX, and work of of On X.X% to consists those continued we net December outstanding as of troubled the issuers credits. investment

a successfully fixed-maturity have our returns consistently now alternative have asset turned in returns Point and from reporting earnings. segment, portfolio. diversified exceeded We Through annualized the our management also have where investments are investment the we on corner income Sound and

have including our by our to value increased shareholders we return year-over-year. shares as dividends to lastly, we and And manage capital, continued paying repurchasing

our results operating drive investment insurance income XXXX. adjusted for segment, helped the once In again,

primarily We XX, an fair million to on of sold use carrying XX% XXXX, CVIs notional were Puerto tax value the CVIs the collections Rico in with the have end of due XXXX, of increase and XXXX these CVIs. CVIs value underlying a we in $XX sales Since gains or $XX million of December remaining. amount of that

CLO And as attributable $XX we mainly had strategy. for with the investments investments from return alternative in Equity million XX.X%. XX, segment were the of generated asset earnings Alternative $XXX million the have in of to XXXX, that alternative rate of a annualized investments accounted under our net an XXXX, internal December insurance inception-to-date value of equity in method. are

more the fixed-maturity result in in As compared our we to periodic income noted have these investments past, in portfolio. volatility investment

fixed available-for-sale maturity short-term securities. due $XXX XXXX loss short-term $XXX higher with higher higher in from net generated was interest The million mitigation primarily portfolio compared balances investment billion to rates $X as in increase The income and XXXX. million well investment of short-term income as and

offsetting $XXX these premium million from in on declined lower Rico the segment in $XXX earned of which were resolved XXXX. due by that gains exposures Partially net Puerto insurance earned refundings million to acceleration premiums

scheduled earned year-over-year. were however, premiums consistent net importantly, More

$XX million on Power benefit a Electric Insurance XXXX loss in Authority due to $XXX Puerto up was segment transactions. lower in and expense losses XXXX, million, RMBS from higher Rico primarily

and from a was Asset half $X included management gain of Point. a million year for adjusted AssuredIM income X XXXX Sound operating of and income quarter

strategic program since a and accretive financial our be all to key repurchase been to share XXXX has continues The objective metrics. key

at pace shares to stated per X.X increase share consistent the repurchases, increased at an quarter year. of $XX.XX, million XXXX beginning half the in fourth the share year. buying represents million which our the XXXX, or of million $XXX of price $XXX of plan the with brought our the second previously This repurchases repurchases outstanding X.X% million to for we X.X total of shares In shares, average of back the

of through to $X.X billion in million shares. and XXXX, December shareholders XXX the over our returned and Since XXXX repurchase this XX, program have we beginning program under retired

remaining repurchased end shares bringing shares $XX million we million. authorization in the have $XXX repurchase XXXX, the to to of about Since another

targeting For $XXX of are XXXX, share we repurchases. million

of the as of timing other initiatives growth on holding subsidiaries as company strategic depends require share from repurchases liquidity. of availability assessments accretive The dividend insurance timing that may well

of week, the XXXX. of also We company in quarterly common quarterly And dividends a increase of share, an declared per the million rate XX% last $XX common XXXX dividend dividend share. $X.XX per $X.XX declared from of

of funds our current and recent company include $XX million These terms resides cash from $XXX AGC. redemption we million, investments have in holding $XXX liquidity share approximately AGL. of of which position, In million the

result $XXX liquidity due company to are to business funds million pursuit whose As the August our last of of manage proceeds the in X-year debt mid-XXXX, refinance were debt million either or shares for holding used available needs strategic our repurchase in a use the for $XXX in or offering to year, initiatives of expand originally in capital. other our

of Continued and business book equity almost operating respectively. per value share shareholders' have to repurchases, records over per adjusted share $XXX, adjusted share new increased and adjusted along production, our positive with $XXX and new income operating

key how While these build metrics shareholder our to the of from book execution operating term. over period, quarterly the results strategic vary long initiatives reflect consistent value value increases the period successful in

give operator for our to over call instructions you the the turn the period. now Q&A to I'll

Operator

of [Operator question of today KBW. the first McJoynt from Instructions] line Our is Tommy

Thomas Mcjoynt-Griffith

as the those some million capital from paying of why can you math million help through there? science of would just of plenty claims, give to of and evidently you was us But $XXX amount request the figure other sure. function size, It's why some inputs, ratios us the key for exposure I'm $XXX you point to, ratios that to some the guardrails walk behind show right was Maryland? resources Could and the appropriate or a

Dominic Frederico

a to capital it to with of multitude it. and financial regulatory I've We manage we Assured of try which consistent positive we've our rules to regulations as restrictions it's And meet includes relative be always strategy strength. and our all buyback. of agency. conservative planning with have, levels the very both in Tommy, have Well, and of we've rating with to state been we looked Guaranty to terms at the how We always said, want that convinced

it in share targeted repurchases managed based we a So XXXX. what on was amount as

Thomas Mcjoynt-Griffith

they're a remind to the York Okay. miss just just differences request be Could of the And -- at kind is? vastly clear, numbers. capital special an the for can AGC, you of me didn't when look the between remind did dividend what difference ratios I I? reason I AGM for And underlying the New me on different and update you

Dominic Frederico

did You -- sorry. I'm did not,

the come through and makeup excess our that of share models excess S&P have. capital the the difference through regulation up portfolio own model, capital. model, them state year. they that we capital of run plan So with is the really target various capital And off policy through the of said, And for our dividend repurchase both our and the I the and as our we

New we're we we're York in approval, of the approval for the quarter's New special which we the terms We've getting said states confident our as earnings both working successful. through applied we'll dividends. Maryland In gotten way to and process, the last obviously, York, call, be

Thomas Mcjoynt-Griffith

need just envision that kind your capital alternatives? strategic regular you strategy part outlook I And has it your like the at weigh of you historically, anything special of the outlook Okay. guarantor -- but seems approval regular least in as business a it's been and more part then even the the strategy, it opportunity of business where else you of and called Do think your specials, Got somewhat for dividend it light function. a fairly regular for was might of again it. request pre-pandemic, of becoming a was

Dominic Frederico

Yes, you numbers. Tommy. we to give And do, some

in AGM, 'XX for approvals 'XX, dividend we've that's gotten So and XXXX, XXXX.

'XX 'XX, and 'XX. AGC, approvals we've gotten in For

dividend we of Puerto normal looking be the a et behind cetera, expect So all problems pandemics, recessions, process. now we're our now part us, great at to Rico, with

Thomas Mcjoynt-Griffith

a then just housekeeping in, sneak one, really one. it quick. last I'll And Great.

Given tax tax of your that, rate we not modeling of have do but kind rate earnings going the an of effective GAAP jurisdiction, and tax appropriate forward? we can that law you change business use? by GAAP Bermuda for use mix sure tax a impact rough what's would how much can I'm kind effective

Benjamin Rosenblum

Yes.

I you think law tax Bermuda income. the our noted, to obviously as is change affect going Bermuda-based

think next I probably to going through. least increase the basis, mix XX%, forward, a an cash couple look that the not of XX%, comes years. And that you when obviously, of on over it's on at basis, expense necessarily I'd depending somewhere really XX%, probably that business guess

Dominic Frederico

It's Ben CFO. our Rosenblum,

of that those voice. you For the don't recognize

Benjamin Rosenblum

I tried my not to scope question. first

Operator

Our of today Giuliano is next Point. Compass line the of question Bologna from

Giuliano Anderes-Bologna

when your not million, on execution. $XX I XXX and low count your stock in back started was range. million the remember closer Congrats continued share you buying to

along So the it's way. long been ride a

position got but in over handful Or a consuming becoming my I'd the long ability more regular Assured last? is 'XX that the buyback it's just or generating -- it think Guaranty you're how likely just think -- more a of keep few up any be a like do that XX still kind kind $XXX you sense strategy, most rate were you're questions to specials you capital could of the beyond 'XX -- has regular if now? You you're planning for million capital a about and about of the that is one next around of where curious When commentary asked than before, thing years. the

Dominic Frederico

immediately business, opportunities of well, across strategically the business board growth in in Well, our and strategy $XXX to product opportunities this management you both million of as at company. as target. line, the we spite the great returned asset plus management jurisdiction expand other looked to all is in capital in #X and Giuliano, back still our And management capital year, aspects the

we're again, do, is each to a is an cognizant equity us down. wants market the going ROE, #X. to know we We've fact. the generated need But strategy So very once decision. higher that be We everybody get to in and which capital management of individual year

Giuliano Anderes-Bologna

was and was earnings anyways, volatility from to That's to asset equity pivoting there [ the quarter then Is were probably actively your to side. way think I the period investees? from to managing And the about very capacity rough million fourth about think, some helpful. what engines and potful -- a had just [ merging. the over equity earnings that, could ] as investees The be in $X and ] the a as

one then point that, or post housekeeping not pretax around is And of kind tax? that's whether or

Dominic Frederico

We haven't the a or costs but integration shifting Giuliano, can can shifting. understand They employees given has employees. number, of A out and lot you it. of took had AssuredIM. XXX a lot in Tommy, management about quarter -- but of first in that you desk We those XX about

hasn't come benefit the that yet. expense So savings through of

manager have that I going of think you're the we year, plus to as asset see well. number the growth as change strategies dramatically targeting we go through the

on think I'm shifting what asset going because deliver I think number really hesitant to to give management it's relative the to bottom is bullish we're And very we a you quickly. the So line. fairly

a low, impression different deliver. you get is of give asset too the to way be going to number want management a therefore, going don't what I to that's and you So either

on think update we expansion-wise. give I as So integration-wise where you stand we'll we go and an quarter-to-quarter, synergistically,

Benjamin Rosenblum

your answer To question, housekeeping that's number. pretax a

Giuliano Anderes-Bologna

that of for And is then -- the ] Or the anything engine of category. pace the accepted obviously at in can distributions earnings one generate -- time. quarterly, the in certain perhaps perspective, around annual? [ a slight distributions distribution housekeeping piece them may there that, distribute Are a fall point you From and

Benjamin Rosenblum

(sic). Tom annual, They're

Giuliano Anderes-Bologna

questions was From appreciate That's Sounds perfect. That's the Well, all -- really it. and all good. I that the had. problem. No

Benjamin Rosenblum

And thank you.

Giuliano Anderes-Bologna

congrats And continued the on execution.

Dominic Frederico

Thank you, Giuliano.

Benjamin Rosenblum

Giuliano. you, Thank

Operator

Dunn Geoffrey is line of the & Our next from question today of Dowling Partners.

Geoffrey Dunn

of you accounting if it wondering the just business could asset of hits P&L. as management the was going give forward the quick as far XXX I a

this as investees. segment You as have well quarter in earnings equity massive still management your

level, coming how high expect the through income should very future? to see the So we in

Benjamin Rosenblum

Yes.

equity I ownership to just to probably think of it Most much going forward. is as in well. now. coming we're the you're you're going And Point Sound through going to continue as it same to how that's be our coming it reporting see see going in through way it

Dominic Frederico

So investee see equity it'd today. be and you

Geoffrey Dunn

is saying, ahead. Dominic? expense Go what So and line? the other What income were Sorry. you

Dominic Frederico

Ben's getting it.

Benjamin Rosenblum

other line, the we investments in and had you're what that's and income Investment investments through. seeing number funds, we legacy that Management coming investments Assured have a expense with and other So that before of still other are

Dominic Frederico

before Yes, started remember the alternative long strategy we Sound Point. bought investment we

Benjamin Rosenblum

little going obviously those as we see eventually down think over I some be time run investments, there time. dwindling as that down we over a those you're off. will volatility may to dwindle crystallize that But but around of that,

Robert Bailenson

Yes. And you're...

Geoffrey Dunn

Okay.

So predominantly, equity line... the

Robert Bailenson

going You're to see...

Geoffrey Dunn

Exactly. Yes.

Robert Bailenson

equity And Geoff, you're you're to as are Sound in to more but to the Ben Point going much but see investing earnings going see the to GP we've the that's suggested. well, as that invested the in going from you're come going funds, funds that debt given earnings volatile -- remember, in, through also be

Operator

concludes question-and-answer session. the This

I host, would to the like now Robert back conference Tucker remarks. for over our to turn closing

Robert Tucker

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

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

Operator

attending. today's concludes call. you for conference Thank This all

may disconnect have and lines, your now You a day. great

Assured Guaranty (AGO) 28 Feb 242023 Q4 Earnings call transcript