Assured Guaranty Ltd. (NYSE:AGO)’s Q3 Profit Doubled YOY
Assured Guaranty Ltd. (NYSE:AGO), a Bermuda-based holding company, has reported its third quarter results, ended September 30, 2013. The company on Monday reported a profit for the quarter more than doubled year over year. Total revenues for the third quarter of 2013 were $670 million, as compared with $338 million posted for the third quarter of 2012.
The operating income for the quarter was $117 million, or $0.64 per share, compared with operating income of $166 million, or $0.85 per share a year ago. Net income rose to $384 million, or $2.09 per share, compared with net income of $142 million, or $0.73 per share, for the third quarter of last year.
However, the net earned premiums on an operating income basis for Q3, 2013 fell to $173 million from $239 million in same period of 2012.
“During the quarter, we continued to successfully execute on our strategic objectives, including the launch of MAC,” said Dominic Frederico, President and CEO. “The benefit of our broad-based strategy was clear in the third quarter as international infrastructure finance, structured finance and U.S. public finance all made contributions to new business production. Additionally, our alternative strategies continued to create significant value through R&W recoveries, improved RMBS servicing, wrapped bond purchases and transaction terminations. We also took important steps toward managing capital more efficiently within the Assured Guaranty group.”
On November 11, 2013, Assured Guaranty Ltd. (NYSE:AGO) said a repurchase authorization of $400 million shares has been approved to replace the current authorization. Under the company’s previous $315 million share repurchase authorization, Assured Guaranty had repurchased 12.5 million common shares at an average price of $21.12 a share for approximately $264 million.
“Assured Guaranty’s new $400 million common share repurchase authorization is an affirmation of our commitment to efficiently manage capital prudently as conditions warrant,” Frederico added.
On November 7, the company also announced to pay a quarterly dividend of $0.10 per share for shareholders. The dividend is payable on December 5.
Competitor MBIA Inc. (NYSE:MBI), which is a New York-based holding company, is all set to announce their third quarter results tomorrow.