Segment Information (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Information by Operating Segments

The following table presents information for the Company’s operating segments. Intersegment revenues include transactions between and among the segments, the Corporate division and the Other category.

Segment Information


	First Quarter
	2026						2025
	Financial Guaranty		Annuity Reinsurance		Asset Management		Financial Guaranty (1)		Asset Management
	(in millions)
Third-party revenues	$	180	$	10	$	94	$	237	$	5
Intersegment revenues	2		—		24		2		1
Segment revenues	182		10		118		239		6
Segment loss and loss adjustment expense (LAE) (benefit)	17		—		—		(23)		—
Segment benefit expense for annuity reinsurance contracts	—		7		—		—		—
Segment employee compensation and benefit expenses	54		2		—		52		—
Segment amortization of deferred acquisition costs	5		—		—		5		—
Other segment items (2)	31		2		68		30		4
Segment expenses	107		11		68		64		4
Segment equity in earnings (losses) of investees	8		—		6		30		13
Less: Segment provision (benefit) for income taxes	(19)		(1)		12		37		3
Segment adjusted operating income (loss)	$	102	$	—	$	44	$	168	$	12

Selected components of segment adjusted operating income:
Net investment income	$	88	$	5	$	—	$	86	$	—
Non-cash compensation and operating expenses (3)	21		1		—		18		—

_____________________

(1) First quarter 2025 results include the gain recognized in connection with the Lehman Brothers International (Europe) (in administration) (LBIE) litigation, which represents the full satisfaction of the judgment the Company was awarded and its claims for attorneys’ fees, expenses and interest. See Note 8. Derivatives, for additional information.

(2) Other segment items for the Financial Guaranty segment include professional services expenses, maintenance, depreciation expense, lease expense and certain overhead expenses; for the Asset Management segment include expenses associated with incentive fees; and for the Annuity Reinsurance segment include professional service fees and certain overhead expenses.

(3) Amounts consist of depreciation, amortization and share-based compensation expenses.

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated

The tables below present a reconciliation of significant components of segment information to the comparable consolidated amounts.

Reconciliation of Segment Information to Consolidated Information

Three Months Ended March 31, 2026


					Equity in Earnings (Losses) of Investees		Less:				Net Income (Loss) Attributable to AGL
	Revenues		Expenses				Provision (Benefit) for Income Taxes		Noncontrolling Interest
	(in millions)
Segments:
Financial Guaranty	$	182	$	107	$	8	$	(19)	$	—	$	102
Annuity Reinsurance	10		11		—		(1)		—		—
Asset Management	118		68		6		12		—		44
Total segments	310		186		14		(8)		—		146
Corporate division	8		43		19		(1)		—		(15)
Other	(24)		(2)		(2)		(5)		(3)		(16)
Subtotal	294		227		31		(14)		(3)		115
Reconciling items:
Realized gains (losses) on investments	(15)		—		—		—		—		(15)
Non-credit impairment-related fair value gains (losses) on credit derivatives	(2)		—		—		—		—		(2)
Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment	(2)		—		—		—		—		(2)
Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld	(2)		—		—		—		—		(2)
Fair value gains (losses) on CCS	6		—		—		—		—		6
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	(18)		—		—		—		—		(18)
Tax effect	—		—		—		(6)		—		6
Consolidated	$	261	$	227	$	31	$	(20)	$	(3)	$	88

Reconciliation of Segment Information to Consolidated Information

Three Months Ended March 31, 2025


					Equity in Earnings (Losses) of Investees		Less:				Net Income (Loss) Attributable to AGL
	Revenues		Expenses				Provision (Benefit) for Income Taxes		Noncontrolling Interest
	(in millions)
Segments:
Financial Guaranty	$	239	$	64	$	30	$	37	$	—	$	168
Asset Management	6		4		13		3		—		12
Total segments	245		68		43		40		—		180
Corporate division	4		40		16		—		—		(20)
Other	16		(2)		(6)		1		9		2
Subtotal	265		106		53		41		9		162
Reconciling items:
Realized gains (losses) on investments	(16)		—		—		—		—		(16)
Non-credit impairment-related fair value gains (losses) on credit derivatives	61		63		—		—		—		(2)
Fair value gains (losses) on CCS	2		—		—		—		—		2
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	33		—		—		—		—		33
Tax effect	—		—		—		3		—		(3)
Consolidated	$	345	$	169	$	53	$	44	$	9	$	176