Assured Income Falls to $98 Million in 2Q

Assured Guaranty Ltd. reported operating income of $98 million, or $0.52 a share, in the second quarter, down from $114 million, or $0.61 a share, in the second quarter of 2012.

That marks a 62% drop from the record-high $260 million operating income the financial guarantor reported in the first quarter of this year.

The only active post-financial crisis bond insurer before the launch of Build America Mutual in July 2012, Assured’s net income in the second quarter fell to $219 million from $377 million the previous year, the company said in a press release.

Chief executive officer Dominic Frederico said Assured faced a challenging environment in the second quarter.

“We are optimistic about our prospects in a higher interest rate environment and as the market gets to know our new, 100% U.S. municipal insurance platform, Municipal Assurance Corp.,” Frederico said in the press release. “We also look forward to growth in our international business, where we closed two important UK infrastructure transactions in July.”

In July, Assured wrapped £101.8 million ($158.2 million) of English bonds to finance the redevelopment of the Little London, Beeston Hill and Holbeck area in Leeds. The company also insured £63 million of bonds issued by Holyrood Student Accommodation PLC to finance the construction of facilities for the University of Edinburgh.

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