Assured Guaranty’s CEO Discusses Q3 2012 Results – Earnings Call Transcript (Seeking Alpha)

November 9, 2012 – Thank you, Robert, and thank you, all, for joining Assured Guaranty for our third quarter 2012 earnings call. During the third quarter, we continued to deal with the challenging business environment by pursuing our core strategies that have allowed us to achieve positive operating earnings every quarter through the financial crisis. These include discipline new business origination within the constraints of our rigorous underwriting and pricing standards, the recapture of business previously ceded to reinsurers, the purchase of our uninsured bonds in order to mitigate loss, improve rating agency capital, and acquire assets with attractive yields, the pursuits of recoveries for breaches of reps and warranties and residential mortgage securitizations and agreeing to the termination of selected transactions to reduce rating agency capital charges while retaining our premium income. As most of you are aware, we’re now in the eight month of Moody’s review of our financial strength rating. Moody’s has stated that it anticipates resolving its review during the first half of this month. After publishing a scorecard in March, showing us solidly in the AA category, we cannot comprehend how Moody’s could consider it downgrade when we have only grown stronger since March through the $38 billion of exposure runoff, $85 million of present value new business production, and a greater certainty about the performance of our insured portfolio as it matures and amortizes.

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