Assured Guaranty Ltd (AGO) has reported a 54.08 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $197 million, or $1.49 a share in the quarter, compared with $429 million, or $3.03 a share for the same period last year.
Revenue during the quarter plunged 39.35 percent to $470 million from $775 million in the previous year period. Net premium earned for the quarter increased 22.92 percent or $44 million to $236 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $199 million, or 84.32 percent of premium earned from $191 million or 99.48 percent of premium earned in the last year period. Operating income for the quarter was $271 million, compared with $584 million in the previous year period.
Net investment income was at $117 million for the quarter, up 4.46 percent or $5 million from year-ago period. The company has recorded a gain on investments of $50 million in the quarter compared with a gain of $422 million for the previous year period.
“By effectively executing our core strategies of new business production, capital management, acquisitions and loss mitigation, Assured Guaranty achieved outstanding results in 2016. We achieved strong GAAP results, as well as setting new highs in key metrics our management uses to measure success, including operating income, non-GAAP operating shareholders’ equity per share and non-GAAP adjusted book value per share,” said Dominic Frederico, president and chief executive officer.
Assets, liabilities fall
Total assets decreased 2.70 percent or $393 million to $14,151 million on Dec. 31, 2016. On the other hand, total liabilities were at $7,647 million as on Dec. 31, 2016, down 9.83 percent or $834 million from year-ago.
Return on assets stood at 1.57 percent in the quarter, down 1.55 from 3.12 percent in the last year period. At the same time, return on equity was at 3.03 percent in the quarter, down 4.05 from 7.08 percent in the last year period.
Investments come down marginally
Investments stood at $10,985 million as on Dec. 31, 2016, down 1.85 percent or $207 million from year-ago. Meanwhile, yield on investments went up 6 basis points to 1.07 percent in the quarter.
Meanwhile, reinsurance recoverables moved up 189.68 percent or $239 million over the year to $365 million on Dec. 31, 2016.
Total debt was almost stable over the past one year at $1,306 million on Dec. 31, 2016. Shareholders equity stood at $6,504 million as on Dec. 31, 2016, up 7.27 percent or $441 million from year-ago. As a result, debt to equity ratio went down 1 basis points to 0.20 percent in the quarter from 0.21 percent in the last year period.
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