Assured Guaranty Ltd (NYSE:AGO) Q3 2019 Earnings Conference Call - Final Transcript

Nov 08, 2019 • 08:00 am ET


Assured Guaranty Ltd (NYSE:AGO) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Assured Guaranty Third Quarter 2019 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Robert Tucker, Senior Managing Director, Investor Relations and Communications. Please go ahead, sir.

Robert Tucker

Thank you, operator and thank you all for joining Assured Guaranty for our third quarter 2019 financial results conference call. Today's presentation is made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The presentation may contain forward-looking statements about our new business and credit outlooks, market conditions, credit spreads, financial ratings, loss reserves, financial results or other items that may affect our future results. These statements are subject to change to new information or future events. Therefore, you should not place undue reliance on them as we do not undertake any obligation to publicly update or revise them, except as required by law. If you're listening to a replay of this call, or if you're reading the transcript of the call, please note that our statements made today may have been updated since this call. Please refer to the Investor Information section of our website for our most recent presentations, and SEC filings, most current financial filings and for the risk factors.

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

Turning to the Turning to the presentation, our speakers today are Dominic Frederico, President and Chief Executive Officer of Assured Guaranty Limited, and Rob Bailenson, our Chief Financial Officer. After their remarks, we'll open the call to your questions. As the webcast is not enabled for Q&A, please dial into the call if you'd like to ask a question.

I will now turn the call over to Dominic.

Dominic J. Frederico

Thank you, Robert, and welcome to everyone joining today's call. The third quarter of 2019 was Assured Guaranty's best third quarter for new business production since 2010 with $81 million of PVP. During the quarter, we also continued our capital management program and Rob will provide you the details on that shortly. We also focused on completing the acquisition of BlueMountain Capital Management, which we closed on October 1. This strategic accomplishment provides revenue diversification, mitigates enterprise risk to the generation of fee income and further advances our capital management objectives by deploying capital in higher return investments.

The strong new business result was well supported by all three of our financial guaranty businesses, US public finance, international infrastructure finance and global structured finance, reflecting the advantages of our diversified financial guaranty business strategy. The largest portion of the third quarter PVP came from US public finance with $46 million of PVP, US finance production was up 39% from third quarter 2018 PVP. With the help of the largest insured