Assured Guaranty Issues Statement in Response to Critique by Greenlight Capital

HAMILTON, Bermuda--()--Assured Guaranty Ltd. (NYSE: AGO) issued the following statement in response to a short-sale presentation made today by David Einhorn of Greenlight Capital:

“Mr. Einhorn’s analysis of Assured Guaranty fails to acknowledge the positive implications of our significant financial strength and strong operating performance, and demonstrates a fundamental lack of understanding of our business model and the municipal debt markets. In the event of a municipal default, Assured Guaranty is obligated to cover shortfalls in scheduled principal and interest payments only when those payments are due. Our insurance policies do not permit acceleration of payments without our consent. Mr. Einhorn’s focus on total debt service ignores this lack of acceleration, as well as the strength of our balance sheet, and the highly liquid nature of our investment portfolio, which generates significant investment income over time.

“Furthermore, Assured Guaranty is well reserved for its municipal exposures and, due to the non-acceleration feature, does not face liquidity risks. We have $11.5 billion of cash and investments1 with $2.8 billion of estimated excess capital over S&P’s AAA level.2 In addition, we have strong legal rights, including for Puerto Rico under PROMESA, which requires that fiscal plans must respect contractual liens and constitutional priorities established under Commonwealth law.

“Throughout its history, Assured Guaranty has successfully mitigated potential losses and defended its legal rights in numerous distressed municipal situations, including Jefferson County, AL; Stockton, CA; Hartford, CT; Detroit, MI; and Harrisburg, PA.

“For all these reasons and others, we strongly disagree with Mr. Einhorn’s assertions. We remain focused on continuing to generate long-term value for our shareholders.”

1 As of YE 2017

2 Based on YE 2017 excess capital

About Assured Guaranty Ltd.

Assured Guaranty Ltd. is a publicly traded (NYSE: AGO) Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.

Cautionary Statement Regarding Forward-Looking Statements:

Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty’s inability to execute its business strategies; adverse developments in Assured Guaranty’s insured or investment portfolios, including in respect of its efforts to enforce legal rights or mitigate losses; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of April 23, 2018. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Contacts

Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
or
Media:
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
adurani@agltd.com

Contacts

Assured Guaranty Ltd.
Robert Tucker, 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
rtucker@agltd.com
or
Media:
Ashweeta Durani, 212-408-6042
Vice President, Corporate Communications
adurani@agltd.com