On July 21, Assured Guaranty announced that S&P Global Ratings has affirmed the AA financial strength ratings, financial enhancement ratings, and issuer credit ratings for its insurance subsidiaries. The agency also affirmed the A issuer credit rating for the parent company, AGL, with a stable outlook assigned to all ratings.
In a report issued on July 17, S&P Global provided a positive assessment of several metrics for Assured Guaranty. The rating agency noted the company's "excellent capital and earnings," with capital adequacy redundancy exceeding the levels required by S&P Global's "AAA" stress test. The firm's competitive position was described as "very strong," with "exceptional" liquidity and no significant long-term liquidity risks identified. Regarding business operations, S&P Global highlighted the company's diversified global underwriting strategy, which is primarily focused on the U.S. public finance market. The agency also pointed to a rising demand for bilateral transactions in the global structured finance sector from international banks and insurers seeking regulatory capital relief. S&P Global believes the company's diversified approach provides the flexibility to pivot to favorable markets as conditions change and views management's expansion into non-U.S. public finance markets as "both strategic and prudent."
Assured Guaranty's President and Chief Executive Officer, Dominic Frederico, stated that the company maintains a leadership position in the U.S. municipal bond insurance sector. He emphasized that the firm continues to execute its growth strategy while also entering the annuity reinsurance market through its newly established subsidiary, Assured Life Re. He underscored that the experienced management team possesses a deep understanding of the risks associated with the company's strategic execution.