Assured Guaranty (AGO) has reported 271.32 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $479 million in the quarter, compared with $129 million for the same period last year.
Revenue during the quarter surged 53.80 percent to $566 million from $368 million in the previous year period. Net premium earned for the quarter increased 8.45 percent or $18 million to $231 million.
Benefits, losses and expenses for the quarter were at $86 million, or 37.23 percent of premium earned from $196 million or 92.02 percent of premium earned in the last year period. Operating income for the quarter was $480 million, compared with $172 million in the previous year period.
Net investment income was at $94 million for the quarter, down 16.07 percent or $18 million from year-ago period. The company has recorded a gain on investments of $19 million in the quarter compared with a gain of $59 million for the previous year period.
"Our third quarter results were excellent," said Dominic Frederico, president and chief executive officer. "We earned $479 million in net income and $508 million of operating income, and we increased shareholders’ equity, operating shareholders’ equity and adjusted book value by $3.64, $4.03 and $4.48 per share, respectively. At the same time, we continued to execute on our strategic objectives, leading the municipal bond insurance industry in originations, making further progress on our acquisitions and returning capital to shareholders through share repurchases and dividends.
Assets, liabilities fallTotal assets decreased 2.43 percent or $365 million to $14,669 million on Sep. 30, 2016. On the other hand, total liabilities were at $8,029 million as on Sep. 30, 2016, down 12.87 percent or $1,186 million from year-ago. Return on assets stood at 3.44 percent in the quarter, up 2.42 from 1.02 percent in the last year period. At the same time, return on equity was at 7.21 percent in the quarter, up 5 from 2.22 percent in the last year period.
Investments move up marginallyInvestments stood at $11,445 million as on Sep. 30, 2016, up 0.90 percent or $102 million from year-ago. Meanwhile, yield on investments went down 17 basis points to 0.82 percent in the quarter. Meanwhile, reinsurance recoverables moved up 29.26 percent or $103 million over the year to $455 million on Sep. 30, 2016.
Total debt was almost stable over the past one year at $1,304 million on Sep. 30, 2016. Shareholders equity stood at $6,640 million as on Sep. 30, 2016, up 14.11 percent or $821 million from year-ago. As a result, debt to equity ratio went down 3 basis points to 0.20 percent in the quarter from 0.22 percent in the last year period.
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