ASSURED GUARANTY LTD – 10-Q – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

This Form 10-Q contains information that includes or is based upon forward
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward looking statements give the expectations or
forecasts of future events of Assured Guaranty Ltd. (AGL) and its subsidiaries
(collectively with AGL, Assured Guaranty or the Company). These statements can
be identified by the fact that they do not relate strictly to historical or
current facts and relate to future operating or financial performance.

Any or all of Assured Guaranty's forward looking statements herein are based on
current expectations and the current economic environment and may turn out to be
incorrect. Assured Guaranty's actual results may vary materially. Among factors
that could cause actual results to differ adversely are:

•the development, course and duration of the COVID-19 pandemic and the
governmental and private actions taken in response, the effectiveness,
acceptance and distribution of COVID-19 vaccines and therapeutics, and the
global consequences of the pandemic and such actions, including their impact on
the factors listed below;
•consequences of the conflict in Ukraine, including economic sanctions,
volatility in energy prices, and the potential for increased cyberattacks;
•changes in the world's credit markets, segments thereof, interest rates,
inflation, credit spreads or general economic conditions;
•developments in the world's financial and capital markets that adversely affect
insured obligors' repayment rates, Assured Guaranty's insurance loss or recovery
experience, investments of Assured Guaranty or assets it manages;
•reduction in the amount of available insurance opportunities and/or in the
demand for Assured Guaranty's insurance;
•the loss of investors in Assured Guaranty's asset management strategies or the
failure to attract new investors to Assured Guaranty's asset management
business;
•the possibility that budget or pension shortfalls or other factors will result
in credit losses or impairments on obligations of state, territorial and local
governments and their related authorities and public corporations that Assured
Guaranty insures or reinsures;
•insured losses in excess of those expected by Assured Guaranty or the failure
of Assured Guaranty to realize loss recoveries that are assumed in its expected
loss estimates for insurance exposures, including as a result of the failure to
resolve Assured Guaranty's Puerto Rico exposures in a manner substantially
consistent with the support agreements signed to date;
•increased competition, including from new entrants into the financial guaranty
industry;
•poor performance of Assured Guaranty's asset management strategies compared to
the performance of the asset management strategies of Assured Guaranty's
competitors;
•the possibility that investments made by Assured Guaranty for its investment
portfolio, including alternative investments and investments it manages, do not
result in the benefits anticipated or subject Assured Guaranty to reduced
liquidity at a time it requires liquidity, or to unanticipated consequences;
•the impact of market volatility on the mark-to-market of Assured Guaranty's
assets and liabilities subject to mark-to-market, including certain of its
investments, most of its financial guaranty contracts written in credit default
swap (CDS) form, and certain consolidated variable interest entities (VIEs);
•rating agency action, including a ratings downgrade, a change in outlook, the
placement of ratings on watch for downgrade, or a change in rating criteria, at
any time, of AGL or any of its insurance subsidiaries, and/or of any securities
AGL or any of its subsidiaries have issued, and/or of transactions that AGL's
insurance subsidiaries have insured;
•the inability of Assured Guaranty to access external sources of capital on
acceptable terms;
•changes in applicable accounting policies or practices;
•changes in applicable laws or regulations, including insurance, bankruptcy and
tax laws, or other governmental actions;
•the possibility that acquisitions made by Assured Guaranty, including its
acquisition of BlueMountain Capital Management LLC (BlueMountain, now known as
Assured Investment Management LLC) and its associated entities (BlueMountain
Acquisition), do not result in the benefits anticipated or subject Assured
Guaranty to unanticipated consequences;
•difficulties with the execution of Assured Guaranty's business strategy;
•loss of key personnel;
•the effects of mergers, acquisitions and divestitures;
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•natural or man-made catastrophes or pandemics;
•other risk factors identified in AGL's filings with the United States (U.S.)
Securities and Exchange Commission (the SEC);
•other risks and uncertainties that have not been identified at this time; and
•management's response to these factors.

The foregoing review of important factors should not be construed as exhaustive,
and should be read in conjunction with the other cautionary statements that are
included in this Form 10-Q, as well as the risk factors included in the
Company's 2021 Annual Report on Form 10-K. The Company undertakes no obligation
to update publicly or review any forward looking statement, whether as a result
of new information, future developments or otherwise, except as required by law.
Investors are advised, however, to consult any further disclosures the Company
makes on related subjects in the Company's reports filed with the SEC.

If one or more of these or other risks or uncertainties materialize, or if the
Company's underlying assumptions prove to be incorrect, actual results may vary
materially from what the Company projected. Any forward looking statements in
this Form 10-Q reflect the Company's current views with respect to future events
and are subject to these and other risks, uncertainties and assumptions relating
to its operations, results of operations, growth strategy and liquidity.

For these statements, the Company claims the protection of the safe harbor for
forward looking statements contained in Section 27A of the Securities Act of
1933, as amended (the Securities Act), and Section 21E of the Securities
Exchange Act of 1934, as amended (the Exchange Act).

Available Information

  The Company maintains an internet web site at www.assuredguaranty.com. The
Company makes available, free of charge, on its web site (under
www.assuredguaranty.com/sec-filings) the Company's Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to
those reports filed or furnished pursuant to Section 13 (a) or 15 (d) of the
Exchange Act as soon as reasonably practicable after the Company files such
material with, or furnishes it to, the SEC. The Company also makes available,
free of charge, through its web site (under www.assuredguaranty.com/governance)
links to the Company's Corporate Governance Guidelines, the Company's Global
Code of Ethics, AGL's Bye-Laws and the charters for the committees of its Board
of Directors. In addition, the SEC maintains an Internet site (at www.sec.gov)
that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC.

The Company routinely posts important information for investors on its web site
(under www.assuredguaranty.com/company-statements and, more generally, under the
Investor Information tab at www.assuredguaranty.com/investor-information and
Businesses tab at www.assuredguaranty.com/businesses). The Company also
maintains a social media account on LinkedIn
(www.linkedin.com/company/assured-guaranty/). The Company uses its web site and
may use its social media account as a means of disclosing material information
and for complying with its disclosure obligations under SEC Regulation FD (Fair
Disclosure). Accordingly, investors should monitor the Company Statements,
Investor Information and Businesses portions of the Company's web site as well
as the Company's social media account on LinkedIn, in addition to following the
Company's press releases, SEC filings, public conference calls, presentations
and webcasts.

The information contained on, or that may be accessed through, the Company's web
site or social media account is not incorporated by reference into, and is not a
part of, this report.

Overview

Business

The Company reports its results of operations in two distinct segments,
Insurance and Asset Management, consistent with the manner in which the
Company's chief operating decision maker (CODM) reviews the business to assess
performance and allocate resources. The Company's Corporate division and other
activities (including financial guaranty VIEs (FG VIEs) and consolidated
investment vehicles (CIVs)) are presented separately.

In the Insurance segment, the Company provides credit protection products to the
U.S. and international public finance (including infrastructure) and structured
finance markets. The Company applies its credit underwriting judgment, risk
management skills and capital markets experience primarily to offer credit
protection products to holders of debt instruments and other monetary
obligations that protect them from defaults in scheduled payments. If an obligor
defaults on a scheduled
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payment due on an obligation, including a debt service payment, the Company is
required under its unconditional and irrevocable financial guaranty to pay the
amount of the shortfall to the holder of the obligation. The Company markets its
credit protection products directly to issuers and underwriters of public
finance and structured finance securities as well as to investors in such
obligations. The Company guarantees obligations issued principally in the U.S.
and the United Kingdom (U.K.), and also guarantees obligations issued in other
countries and regions, including Western Europe, Canada and Australia. The
Company also provides other forms of insurance that are consistent with its risk
profile and benefit from its underwriting experience, which are referred to as
the specialty insurance and reinsurance business. Premiums are earned over the
contractual lives, or in the case of homogeneous pools of insured obligations,
the remaining expected lives, of financial guaranty insurance contracts.

In the Asset Management segment, the Company provides investment advisory
services, which include the management of CLOs, opportunity and liquid strategy
funds, as well as certain legacy hedge and opportunity funds now subject to an
orderly wind-down. Assured Investment Management LLC (AssuredIM LLC) and its
investment management affiliates (together with AssuredIM LLC, AssuredIM) have
managed structured, public finance and credit investments since 2003. AssuredIM
provides investment advisory services while leveraging a technology-enabled risk
platform, which aims to maximize returns for its clients. The establishment, in
the fourth quarter of 2019, of the Asset Management segment diversifies the risk
profile and revenue opportunities of the Company. As of March 31, 2022,
AssuredIM had $17.0 billion of assets under management (AUM), including $1.4
billion that is managed on behalf of Assured Guaranty Municipal Corp. (AGM) and
Assured Guaranty Corp. (AGC).

Fees in respect of investment advisory services are the largest component of
revenues for the Asset Management segment. AssuredIM is compensated for its
investment advisory services generally through management fees which are based
on AUM, and may also earn performance fees calculated as a percentage of net
profits or based on an internal rate of return referencing distributions made to
investors, in each case, in respect of funds, collateralized loan obligations
(CLOs) and/or accounts which it advises.

The Corporate division consists primarily of interest expense on the debt of
Assured Guaranty US Holdings Inc. (AGUS) and Assured Guaranty Municipal Holdings
Inc. (AGMH) (the U.S. Holding Companies), as well as other operating expenses
attributed to holding company activities, including administrative services
performed by certain subsidiaries for the holding companies. Other activities
include the effect of consolidating FG VIEs and CIVs (FG VIE and CIV
consolidation). See Item 1, Financial Statements, Note 2, Segment Information.

Economic Environment

Economic activity in the U.S. and throughout the world expanded in 2021 and in
the three month period ended March 31, 2022 (First Quarter 2022). According to
the advance estimate released by the U.S. Bureau of Economic Analysis (BEA),
real gross domestic product (GDP) increased at an annual rate of 6.9% in the
fourth quarter of 2021. Although an advance estimate released by the BEA showed
that GDP decreased 1.4% in First Quarter 2022, the primary reason was reported
to be as a result of trade, since net imports increased as supply chains
improved and businesses continued to restock. More granular measures were
positive, with a 4.7% increase in consumer spending and a 5.7% increase in
business investment. At the end of March 2022, the U.S. unemployment rate,
seasonally adjusted, stood at 3.6%, lower than where it started the quarter at
3.9%, and down from a pandemic high of 14.7% in April 2020. More globally, the
Organization for Economic Co-operation and Development (OECD) estimates that GDP
in the OECD area increased by 5.1% during 2021, with U.K. GDP estimated to have
grown by 6.9% for the year, in each case after experiencing material contraction
in 2020. The Company believes a more robust economy makes it less likely that
obligors whose obligations it guarantees will default.

According to the U.S. Bureau of Labor Statistics, the inflation rate in the U.S.
over the 12-month period ending March 2022 (the latest data available), as
measured by the consumer price index for all urban consumers, rose to 8.5%
before seasonal adjustment, the highest since December of 1981. The energy index
rose 32% and the food index 8.8% over the same 12-month period, the most since
the period ending May 1981. According to the U.K.'s Office for National
Statistics (ONS), the Consumer Prices Index including owner occupiers' housing
costs (CPIH) rose by 6.2% in the 12 months ending March 2022, up from 5.5% in
the 12 months ending February 2022 and 1.0% in the 12 months ending March 2021.
Consumer price inflation does not impact the Company's primary businesses
directly, but may impact the Company indirectly to the extent it makes it more
difficult for obligors to make their debt payments or causes interest rates to
rise more generally.

The 30-year AAA Municipal Market Data (MMD) rate is a measure of interest rates
in the Company's largest financial guaranty insurance market, U.S. public
finance. The 30-year AAA MMD rate started First Quarter 2022 at 1.49% but rose
more than 100 basis points (bps) to end the quarter at 2.53%. The average rate
for the quarter was 2.00%, above the 1.54% average for 2021. With the onset of
the COVID-19 pandemic, the Federal Open Market Committee (FOMC) lowered the
target range
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for the federal funds rate to 0% to 0.25% in March 2020. However, at the FOMC's
meeting in March 2022, the FOMC decided to raise the target range for the
federal funds rate to 0.25% to 0.50%, stating that it anticipated that ongoing
increases in the target range will be appropriate. In addition, the FOMC said
that it expected to begin reducing its holdings of treasury securities and
agency debt and agency mortgage-backed securities at a coming meeting. At the
conclusion of its May 3-4, 2022 meeting, the FOMC again raised the federal funds
target range, this time to 0.75% to 1%, reiterating that it anticipated that
ongoing increases in the target range would be appropriate. In addition, the
FOMC announced that it would begin reducing its holdings of treasury securities
and agency debt and agency mortgage-backed securities on June 1, 2022. The level
and direction of interest rates impact the Company in numerous ways. For
example, higher interest rates may make the Company's credit enhancement
products more attractive in the market and increase the level of premiums it can
charge for that product, and, over time, also increase the amount the Company
can earn on its largely fixed-income investment portfolio. Specifically, the
level of interest rates on the U.S. municipal bonds the Company enhances
influences how high a premium the Company can charge for its public finance
financial guaranty insurance product, with higher interest rates generally
increasing the premium rates the Company may charge. On the other hand, high
interest rates decrease the amount of excess spread available to support the
distressed residential mortgage-backed securities (RMBS) the Company insures and
reduce the market value of its largely fixed rate fixed-maturity securities in
the investment portfolio. The Company believes further increases in interest
rates and spreads in 2022, should it occur, could increase demand for insurance
and permit it to increase its premium rates on new business.

The difference, or credit spread, between the 30-year A-rated general obligation
relative to the 30-year AAA MMD averaged 39 bps in First Quarter 2022 up from 33
bps in 2021 but still below the 42 bps in 2020. BBB credit spreads measured on
the same basis averaged 72 bps in First Quarter 2022, up modestly from the 70
bps in full year 2021. The level of credit spreads also influences how high a
premium the Company can charge for its financial guaranty insurance product,
with tighter credit spreads generally lowering the premium rates the Company may
charge.

Home prices continued their recent surge in the First Quarter of 2022. According
to the National Association of Realtors, the median existing-home price for all
housing types in March 2022 was $375,300, a 15% year-over-year increase and up
from $358,000 in December 2021. Existing home sales were 5.8 million in March
2022, up 4.5% year over year. The S&P CoreLogic Case-Shiller U.S. National Home
Price NSA Index, covering all nine U.S. census divisions, reported an 19.8%
annualized gain in February 2022 (the latest data available), compared to 19.1%
in the previous month. The 10-City Composite annual increase came in at 18.6%,
compared to 17.3% in the previous month. The 20-City Composite posted an 20.2%
year-over-year gain, compared to 18.9% in the previous month. Home prices in the
U.S. impact the performance of the Company's insured RMBS portfolio. Improved
home prices generally result in fewer losses or more reimbursements with respect
to the Company's distressed insured RMBS risks, and may impact the amount of
losses or reimbursements it projects for its distressed legacy RMBS insured
portfolio.

Impact of COVID-19

Variants of COVID-19 continue to spread throughout the world, while the
production, acceptance, and distribution of vaccines and therapeutics for it are
proceeding unevenly across the globe. The emergence of COVID-19 and reactions to
it, including various intermittent closures and capacity and travel
restrictions, have had a profound effect on the global economy and financial
markets. The ultimate size, depth, course and duration of the pandemic, and the
effectiveness, acceptance, and distribution of vaccines and therapeutics for it,
remain unknown, and the governmental and private responses to the pandemic
continue to evolve. Consequently, and due to the nature of the Company's
business, all of the direct and indirect consequences of COVID-19 on the Company
are not yet fully known to the Company, and still may not emerge for some time.

From shortly after the pandemic reached the U.S. through early 2021, the
Company's surveillance department conducted supplemental periodic surveillance
procedures to monitor the impact on its insured portfolio of COVID-19 and
governmental and private responses to COVID-19, with emphasis on state and local
governments and entities that were already experiencing significant budget
deficits and pension funding and revenue shortfalls, as well as obligations
supported by revenue streams most impacted by various intermittent closures and
capacity and travel restrictions or an economic downturn. Given significant
federal funding to state and local governments in 2021 and the performance it
observed, the Company's surveillance department has reduced the supplemental
procedures. However, it is still monitoring those sectors it identified as most
at risk for any developments related to COVID-19 that may impact the ability of
issuers to make upcoming debt service payments. The Company has paid only
relatively small insurance claims it believes are due at least in part to credit
stress arising specifically from COVID-19, and has already received
reimbursement for most of those claims.

The Company began operating remotely in accordance with its business continuity
plan in March 2020 in response to the COVID-19 pandemic, instituting mandatory
remote work policies in its offices in Bermuda, U.S., U.K. and France. By the
end of February 2022, the Company had reopened all of its offices, choosing a
hybrid remote and office work model in response to employee feedback and as part
of its commitment to providing a safe and healthy workplace. Whether its
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employees are working remotely or in a hybrid remote and office work model, the
Company continues to provide the services and communications it normally would.

Key Business Strategies

  The Company continually evaluates its business strategies. For example, with
the establishment of AssuredIM the Company has increased its focus on asset
management and alternative investments. Currently, the Company is pursuing the
following key business strategies in three areas: (1) insurance, (2) asset
management and alternative investments, and (3) capital management.

Insurance

The Company seeks to grow the insurance business through new business
production, acquisitions of remaining legacy monoline insurers or reinsurance of
their insured portfolios, and to continue to mitigate losses in its current
insured portfolio.

Growth of the Insured Portfolio

  The Company seeks to grow its insurance portfolio through new business
production in each of its three markets: U.S. public finance, international
infrastructure and global structured finance. The Company believes high-profile
defaults by municipal obligors, such as Puerto Rico, Detroit, Michigan and
Stockton, California as well as events such as the COVID-19 pandemic have led to
increased awareness of the value of bond insurance and stimulated demand for the
product. The Company believes there will be continued demand for its insurance
in this market because, for those exposures that the Company guarantees, it
undertakes the tasks of credit selection, analysis, negotiation of terms,
surveillance and, if necessary, loss mitigation. The Company believes that its
insurance:

•encourages retail investors, who typically have fewer resources than the
Company for analyzing municipal bonds, to purchase such bonds;
•enables institutional investors to operate more efficiently; and
•allows smaller, less well-known issuers to gain market access on a more
cost-effective basis.

  On the other hand, the persistently low interest rate environment and
relatively tight U.S. municipal credit spreads have dampened demand for bond
insurance compared to the levels before the financial crisis that began in 2008.
The Company believes that if interest rates further increase in 2022, demand for
bond insurance may improve.

  In certain segments of the global infrastructure and structured finance
markets the Company believes its financial guaranty product is competitive with
other financing options. For example, certain investors may receive advantageous
capital requirement treatment with the addition of the Company's guaranty. The
Company considers its involvement in both international infrastructure and
structured finance transactions to be beneficial because such transactions
diversify both the Company's business opportunities and its risk profile beyond
U.S. public finance. The timing of new business production in the international
infrastructure and structured finance sectors is influenced by typically long
lead times and therefore may vary from period to period.

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      U.S. Municipal Market Data and Bond Insurance Penetration Rates (1)
                               Based on Sale Date
                                                                                                                          Year Ended
                                                        First Quarter 2022                  First Quarter 2021         December 31, 2021
                                                                 (dollars

in billions, except number of issues and percentages)
Par:
New municipal bonds issued

                             $           96.8                    $           104.5          $       456.7
Total insured                                          $            8.2                    $             8.5          $        37.5
Insured by Assured Guaranty                            $            4.8                    $             5.5          $        22.6
Number of issues:
New municipal bonds issued                                        2,288                                2,698                 11,819
Total insured                                                       408                                  514                  2,198
Insured by Assured Guaranty                                         168                                  252                  1,076
Bond insurance market penetration based on:
Par                                                                 8.5    %                             8.1  %                 8.2     %
Number of issues                                                   17.8    %                            19.1  %                18.6     %
Single A par sold                                                  36.5    %                            27.0  %                26.6     %
Single A transactions sold                                         57.7    %                            56.7  %                56.6     %
$25 million and under par sold                                     20.8    %                            21.3  %                21.3     %
$25 million and under transactions sold                            20.7    %                            21.9  %                21.7     %

____________________

(1)  Source: The amounts in the table are those reported by Thomson Reuters. The
table excludes Corporate-CUSIP transactions insured by Assured Guaranty, which
the Company also considers to be public finance business.

  The Company also considers opportunities to acquire financial guaranty
portfolios, whether by acquiring financial guarantors who are no longer actively
writing new business or their insured portfolios, generally through reinsurance.
These transactions enable the Company to improve its future earnings and deploy
excess capital.

  Loss Mitigation

In an effort to avoid, reduce or recover losses and potential losses in its
insurance portfolio, the Company employs a number of strategies.

  In the public finance area, the Company believes its experience and the
resources it is prepared to deploy, as well as its ability to provide bond
insurance or other contributions as part of a solution, result in more favorable
outcomes in distressed public finance situations than would be the case without
its participation. This has been illustrated by the Company's role in the
Detroit, Michigan and Stockton, California financial crises, and more recently
by the Company's role in negotiating various agreements in connection with the
restructuring of obligations of the Commonwealth of Puerto Rico and various
obligations of its related authorities and public corporations. The Company will
also, where appropriate, pursue litigation to enforce its rights. For example,
it initiated a number of legal actions to enforce its rights with respect to
obligations of the Commonwealth of Puerto Rico and various obligations of its
related authorities and public corporations.

After over five years of negotiations, on March 15, 2022, a substantial portion
of the Company's Puerto Rico exposure was resolved in accordance with three
orders entered by the United States District Court of the District of Puerto
Rico (Federal District Court of Puerto Rico):

•On January 18, 2022, the Federal District Court of Puerto Rico, acting under
Title III of the Puerto Rico Oversight, Management and Economic Stability Act
(PROMESA), entered an order and judgment confirming the Modified Eighth Amended
Title III Joint Plan of Adjustment of the Commonwealth of Puerto Rico, the
Employees Retirement System of the Government of the Commonwealth of Puerto
Rico, and the Puerto Rico Public Buildings Authority (GO/PBA Plan). The GO/PBA
Plan restructured approximately $35 billion of debt (including the Puerto Rico
General Obligation (GO) and Public Buildings Authority (PBA) bonds insured by
the Company) and other claims against the government of Puerto Rico and certain
entities as well as $50 billion in pension obligations (none of which pension
obligations are insured by the Company), all consistent with the terms of the
settlement embodied in a revised GO and PBA plan support agreement (PSA) entered
into by AGM and AGC on February 22, 2021, with certain other stakeholders, the
Commonwealth, and the financial oversight and management board (the FOMB)
(GO/PBA PSA).
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•On January 20, 2022, the Federal District Court of Puerto Rico, acting under
Title VI of PROMESA, entered an order under Title VI of PROMESA (PRCCDA
Modification) modifying the debt of the Puerto Rico Convention Center District
Authority (PRCCDA).
•On January 20, 2022, the Federal District Court of Puerto Rico, acting under
Title VI of PROMESA, entered another order under Title VI of PROMESA (PRIFA
Modification) modifying certain debt of the Puerto Rico Infrastructure Financing
Authority (PRIFA).

As a result of the consummation on March 15, 2022, of each of the GO/PBA Plan,
PRCCDA Modification and PRIFA Modification (together, the March Puerto Rico
Resolutions), including claim payments made by the Company under the March
Puerto Rico Resolutions, the Company's obligations under its insurance policies
covering debt of PRCCDA and PRIFA were extinguished, and its insurance exposure
to Puerto Rico GO and PBA was greatly reduced. The Company believes the
consummation of the March Puerto Rico Resolutions on March 15, 2022, mark a
milestone in its Puerto Rico loss mitigation efforts. For more information about
developments in Puerto Rico and related recovery litigation being pursued by the
Company, see Item 1, Financial Statements, Note 3, Outstanding Exposure and the
Insured Portfolio section below.

  In connection with the consummation of the March Puerto Rico Resolutions the
Company received substantial amounts of new recovery bonds and contingent value
instruments (CVIs). The Company has sold some of the new recovery bonds and CVIs
it received and may continue to sell amounts it still retains, subject to market
conditions. The fair value of such securities held by the Company as of
March 31, 2022, is included in the lines "fixed-maturity securities - Puerto
Rico, available-for-sale" and "fixed-maturity securities - Puerto Rico, trading"
in the table "Investment Portfolio Carrying Value" of Item 1, Financial
Statements, Note 7, Investments.

The Company is and has for several years been working with the servicers of some
of the RMBS it insures to encourage the servicers to provide alternatives to
distressed borrowers that will encourage them to continue making payments on
their loans to help improve the performance of the related RMBS.

  In some instances, the terms of the Company's policy give it the option to pay
principal on an accelerated basis on an obligation on which it has paid a claim,
thereby reducing the amount of guaranteed interest due in the future. The
Company has at times exercised this option, which uses cash but reduces
projected future losses. The Company may also facilitate the issuance of
refunding bonds, by either providing insurance on the refunding bonds or
purchasing refunding bonds, or both. Refunding bonds may provide the issuer with
payment relief.

Asset Management and Alternative Investments

  AssuredIM is a diversified asset manager that serves as investment adviser to
CLOs, opportunity and liquid strategy funds, as well as certain legacy hedge and
opportunity funds now subject to an orderly wind-down. As of March 31, 2022,
AssuredIM was a top 25 CLO manager by AUM, as published by Creditflux Ltd.
AssuredIM is actively pursuing opportunity strategies focused on healthcare and
asset-based lending and liquid strategies relating to municipal obligations.

Over time, the Company seeks to broaden and further diversify its Asset
Management segment leading to increased AUM and a fee-generating platform. The
Company intends to leverage the AssuredIM infrastructure and platform to grow
its Asset Management segment both organically and through strategic
combinations.

The Company monitors certain operating metrics that are common to the asset
management industry. These operating metrics include, but are not limited to,
funded AUM and unfunded capital commitments (together, AUM) and investment
advisory management and performance fees. The Company considers the
categorization of its AUM by product type to be a useful lens in monitoring the
Asset Management segment. AUM by product type assists in measuring the duration
of AUM for which the Asset Management segment has the potential to earn
management fees and performance fees. For a discussion of the metric AUM, see "-
Results of Operations by Segment - Asset Management Segment."

Additionally, the Company believes that AssuredIM provides the Company an
opportunity to deploy excess capital at attractive returns improving the
risk-adjusted return on a portion of the investment portfolio and potentially
increasing the amount of dividends certain of its insurance subsidiaries are
permitted to pay under applicable regulations. The Company allocated $750
million of capital to invest in funds managed by AssuredIM plus $550 million of
the AGM, AGC and, until its merger with AGM on April 1, 2021, MAC,
(collectively, the U.S. Insurance Subsidiaries) invested assets now managed by
AssuredIM under an Investment Management Agreement (IMA). The Company is using
these allocations to: (a) launch new products (CLOs, opportunity funds and
liquid strategy funds) on the AssuredIM platform; and (b) enhance the returns of
its own investment portfolio.

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As of March 31, 2022, AG Asset Strategies LLC (AGAS) had committed $702 million
to funds managed by AssuredIM (AssuredIM Funds), including $229 million that has
yet to be funded. This capital was committed to several funds, each dedicated to
a single strategy including CLOs, asset-based finance, healthcare structured
capital and municipal bonds.

Under the IMA with AssuredIM, AGM and AGC have together invested $250 million to
municipal obligation strategies and $300 million to CLO strategies. All of these
strategies are consistent with the investment strengths of AssuredIM and the
Company's plans to continue to grow its investment strategies.

Capital Management

The Company has developed strategies to efficiently manage capital within the
Assured Guaranty group.

From 2013 through May 5, 2022, the Company has repurchased 135.8 million common
shares for approximately $4,374 million, representing approximately 70.0% of the
total shares outstanding at the beginning of the repurchase program in 2013. On
February 23, 2022, the AGL Board of Directors (the Board) authorized the
repurchase of an additional $350 million of common shares. Under this and
previous authorizations, as of May 5, 2022, the Company was authorized to
purchase $240 million of its common shares. Shares may be repurchased from time
to time in the open market or in privately negotiated transactions. The timing,
form and amount of the share repurchases under the program are at the discretion
of management and will depend on a variety of factors, including funds available
at the parent company, other potential uses for such funds, market conditions,
the Company's capital position, legal requirements and other factors. The
repurchase program may be modified, extended or terminated by the Board at any
time and it does not have an expiration date. See Item 1, Financial Statements,
Note 14, Shareholders' Equity, for additional information about the Company's
repurchases of its common shares.

                          Summary of Share Repurchases
                                                                                                       Average price
                                                        Amount             Number of Shares              per share
                                                                   (in millions, except per share data)
2013 - 2021                                          $   4,158                   132.0               $        31.50
2022 (First Quarter)                                       155                     2.7                        56.62
2022 (through May 5)                                        61                     1.0                        59.86
Cumulative repurchases since the beginning of 2013   $   4,374                   135.8                        32.21




                 Accretive Effect of Cumulative Repurchases (1)
                                            First Quarter 2022      As of March 31, 2022
                                                             (per share)
Net income (loss) attributable to AGL      $             0.51
Adjusted operating income                                0.75
Shareholders' equity attributable to AGL                           $        

38.45

Adjusted operating shareholders' equity                                            39.16
Adjusted book value                                                                68.20


_________________

(1) Represents the estimated accretive effect of cumulative repurchases since
the beginning of 2013.

The Company considers the appropriate mix of debt and equity in its capital
structure. On May 26, 2021, the Company issued $500 million of 3.15% Senior
Notes, due in 2031 for net proceeds of $494 million. On July 9, 2021, a portion
of the proceeds from the issuance of the 3.15% Senior Notes were used to redeem
$200 million of AGMH debt as follows: all $100 million of AGMH's 6 7/8%
Quarterly Interest Bonds due in 2101, and $100 million of the $230 million of
AGMH's 6.25% Notes due in 2102. On August 20, 2021, the Company issued $400
million of 3.6% Senior Notes, due in 2051 for net proceeds of $395 million. On
September 27, 2021, all of the proceeds from the issuance of the 3.6% Senior
Notes were used to redeem $400 million of AGMH and AGUS debt as follows: all
$100 million of AGMH's 5.60% Notes due in 2103; the remaining $130 million of
AGMH 6.25% Notes due in 2102; and $170 million of the $500 million of AGUS 5%
Senior Notes due in 2024. See "- Liquidity and Capital Resources - AGL and its
U.S. Holding Companies" for the U.S. Holding Companies' long-term debt.

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In 2021, as a result of these redemptions, the Company recognized a loss on
extinguishment of debt of approximately $175 million on a pre-tax basis ($138
million after-tax) which represents the difference between the amount paid to
redeem the debt and the carrying value of the debt. The carrying value of the
debt included the unamortized fair value adjustments that were recorded upon the
acquisition of AGMH in 2009.

Proceeds from the debt issuances that were not used to redeem debt were used for
general corporate purposes, including share repurchases.

The Company may choose to redeem or make additional purchases of this or other
Company debt in the future. Since the second quarter of 2017, AGUS has purchased
$154 million in principal of AGMH's outstanding Junior Subordinated Debentures.

Municipal Assurance Corp. Merger

On April 1, 2021, Municipal Assurance Corp. (MAC) merged with and into AGM, with
AGM as the surviving company. Upon the merger all direct insurance policies
issued by MAC became direct insurance obligations of AGM. As a result, the
Company wrote off the $16 million carrying value of MAC's insurance licenses in
the first quarter of 2021. This restructuring of the Company's U.S. Insurance
Subsidiaries simplified the organizational and capital structure, reduced costs,
and increased the future dividend capacity of the U.S. Insurance Subsidiaries.

Executive Summary

This executive summary of management's discussion and analysis highlights
selected information and may not contain all of the information that is
important to readers of this Quarterly Report. For a more detailed description
of events, trends and uncertainties, as well as the capital, liquidity, credit,
operational and market risks and the critical accounting policies and estimates
affecting the Company, this Quarterly Report should be read in its entirety and
in addition to the Company's 2021 Annual Report on Form 10-K.

The primary drivers of volatility in the Company's net income include: changes
in fair value of credit derivatives, FG VIEs, CIVs, and committed capital
securities (CCS), loss and loss adjustment expense (LAE), foreign exchange gains
(losses), the level of refundings of insured obligations, and changes in the
value of the Company's alternative investments, as well as the effects of any
large settlements, commutations and loss mitigation strategies, among other
factors. Changes in the fair value of AssuredIM Funds affect the amount of
management and performance fees earned. Changes in laws and regulations, among
other factors, may also have a significant effect on reported net income or loss
in a given reporting period.

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Financial Performance of Assured Guaranty

                               Financial Results
                                                                                  First Quarter
                                                                            2022                 2021
                                                                        

(in millions, except per share

amounts)

GAAP

Net income (loss) attributable to AGL                                  $         66          $       11
Net income (loss) attributable to AGL per diluted share                $       0.98          $     0.14
Weighted average diluted shares                                                67.4                77.5

Non-GAAP

Adjusted operating income (loss) (2)                                   $         90          $       43
Adjusted operating income per diluted share                            $       1.34          $     0.55
Weighted average diluted shares                                                67.4                77.5

Gain (loss) related to FG VIE and CIV consolidation included in
adjusted operating income

                                              $    

(10) $ -
Gain (loss) related to FG VIE and CIV consolidation included in
adjusted operating income per share

                                    $    

(0.14) $ -

Components of total adjusted operating income (loss)
Insurance segment                                                      $        133          $       79
Asset Management segment                                                          -                  (7)
Corporate division                                                              (33)                (29)
Other (1)                                                                       (10)                  -
Adjusted operating income (loss)                                       $    

90 $ 43

Insurance Segment
Gross written premiums (GWP)                                           $         70          $       87
Present value of new business production (PVP) (2)                               69                  86
Gross par written                                                             4,471               5,472

Asset Management Segment
AUM
Inflows - third party                                                  $         91          $      873
Inflows - intercompany                                                            -                 145



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