Assured Guaranty Ltd (NYSE:AGO) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 08:00 am ET


Assured Guaranty Ltd (NYSE:AGO) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good morning and welcome to the Assured Guaranty Limited Fourth Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Robert Tucker, Senior Managing Director, Investor Relations and Corporate Communications. Please go ahead.

Robert Tucker

Thank you, operator. And thank you all for joining Assured Guaranty for our fourth quarter and year-end 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 due 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 to the non-GAAP financial present measures referenced in this presentation along with a reconciliation between such GAAP and non-GAAP financial measures in our current financial supplement and equity investor presentation, which are on our website at

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 year 2019 was both outstanding and transformative for Assured Guaranty with revenue of financial guaranty business totaling $463 million in PVP, by far our best direct production results since 2009. Dramatic growth in our direct international infrastructure and global structured finance businesses drove a 65% year-over-year increase in total direct PVP. We set new records with key measures of shareholder value with year-end values per share of $71.18, $66.96 and $96.86, respectively for shareholder's equity, adjusted operating shareholders' equity, and adjusted book value.

Our value creation efforts, including our effective capital management program, resulted in a 13% growth in adjusted book value per share. The non-GAAP measures, we believe, best approximates the company's intrinsic value per share. For the third time in the last six years, we repurchased $500 million or more