Bond insurer Assured Guaranty Ltd. posted a profit in the second quarter of 2012.

Operating income declined to $114 million from $143.4 million in the second quarter of 2011, a 20.5% decline. On a per share basis in the same period operating income declined to $0.61 from $0.76.

Net income improved to $376.5 million in the second quarter of 2012 from a net loss of $43.1 million in the second quarter of 2011. Net income per share was $2.01 compared to a net loss per share of $0.23 in the second quarter of 2011.

Net income is a Generally Accepted Accounting Principles measure and operating income is not GAAP measure. However, some analysts say that operating income is a better measure of performance for bond insurers.

Second quarter 2012 new par written in U.S. public finance was $4.67 billion, up 28% from the second quarter of 2011, according to Assured figures. The new par written value includes insured secondary as well as primary issuance.

Total new issue bond volume by par value was up by 65.2% in the second quarter of this year, according to Thomson Reuters figures.

Moody's Investors Service put Assured's Aa3 rating on review for a downgrade on March 20. Some observers say this has affected Assured's business.

Responding to a question about the new bond insurer Build America Mutual Assurance, Assured President Dominic Frederico said he thought the new insurer will not depress insurance pricing. The biggest pressure on pricing is the low interest rate environment, he said.

As of  the middle of Friday afternoon. Assured's stock was up 2.7% to $12.71 from Thursday's close.

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