Financial guaranty insurer Assured Guaranty (NYSE: AGO) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 77.6% year on year to $277 million. Its non-GAAP profit of $2.32 per share was 48.4% above analysts’ consensus estimates.

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“At year end 2025, Assured Guaranty again reached record highs in our key shareholder value metrics,” said Dominic Frederico, President and CEO.

Company Overview

Serving as a financial safety net for over $11 trillion in debt service payments since its founding in 2003, Assured Guaranty (NYSE: AGO) provides credit protection products that guarantee scheduled payments on municipal bonds, infrastructure projects, and structured finance obligations.

Revenue Growth

In general, insurance companies earn revenue from three primary sources. The first is the core insurance business itself, often called underwriting and represented in the income statement as premiums earned. The second source is investment income from investing the “float” (premiums collected upfront not yet paid out as claims) in assets such as fixed-income assets and equities. The third is fees from various sources such as policy administration, annuities, or other value-added services. Unfortunately, Assured Guaranty struggled to consistently increase demand as its $1.11 billion of revenue for the trailing 12 months was close to its revenue five years ago. This was below our standards and is a sign of poor business quality.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Assured Guaranty’s recent performance shows its demand remained suppressed as its revenue has declined by 10.1% annually over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Assured Guaranty reported magnificent year-on-year revenue growth of 77.6%, and its $277 million of revenue beat Wall Street’s estimates by 39.6%.

Net premiums earned made up 40.5% of the company’s total revenue during the last five years, meaning Assured Guaranty’s growth drivers strike a balance between insurance and non-insurance activities.

Our experience and research show the market cares primarily about an insurer’s net premiums earned growth as investment and fee income are considered more susceptible to market volatility and economic cycles.

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Book Value Per Share (BVPS)

Insurance companies are balance sheet businesses, collecting premiums upfront and paying out claims over time. The float–premiums collected but not yet paid out–are invested, creating an asset base supported by a liability structure. Book value per share (BVPS) captures this dynamic by measuring these assets (investment portfolio, cash, reinsurance recoverables) less liabilities (claim reserves, debt, future policy benefits). BVPS is essentially the residual value for shareholders.

We therefore consider BVPS very important to track for insurers and a metric that sheds light on business quality. While other (and more commonly known) per-share metrics like EPS can sometimes be lumpy due to reserve releases or one-time items and can be managed or skewed while still following accounting rules, BVPS reflects long-term capital growth and is harder to manipulate.

Assured Guaranty’s BVPS grew at a decent 8.1% annual clip over the last five years. BVPS growth has accelerated recently, growing by 11.7% annually over the last two years from $101.69 to $126.78 per share.

Key Takeaways from Assured Guaranty’s Q4 Results

It was good to see Assured Guaranty beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 2.3% to $88.62 immediately after reporting.

Indeed, Assured Guaranty had a rock-solid quarterly earnings result, but is this stock a good investment here? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).