Assured Guaranty Ltd. (NYSE:AGO)

CAPS Rating: 3 out of 5

A holding company that provides, through its operating subsidiaries, credit enhancement products to the public finance, structured finance and mortgage markets.


Player Avatar MrPrognosticator (81.54) Submitted: 12/23/2010 1:24:11 AM : Underperform Start Price: $16.14 AGO Score: +6.95

This is a financial insurance company. Oooo scary! It's primary source (85%) of income is similar to PMI but with financial instruments such as Bonds, where they insure against a failure to pay principal and interest when due and similar credit events. Their exposure to actual PMI is 1% of their business. The other 14% is reinsurance, where they insure someone who is insuring someone else. That sounds really safe.While reading about this company I began to wonder how it came to be on my radar and then I realized it was because it had increased it's income by "616.3%" since last year, or in easier to understand terms it went from earning -$35 million to $180.9 million. Honestly I question it's solvency. Plus it's not in the low competition side of insurance, it's in the very competitive side of insurance where market forces force companies to pay out slightly more than intake premiums. And if you've read my other insurance company write ups, I hate that.

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