Segment Information (Tables)

6 Months Ended

Jun. 30, 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


	Second Quarter
	2026						2025
	Financial Guaranty		Annuity Reinsurance		Asset Management		Financial Guaranty		Asset Management
	(in millions)
Third-party revenues	$	197	$	15	$	—	$	196	$	13
Intersegment revenues	2		—		—		3		2
Segment revenues	199		15		—		199		15
Segment loss and loss adjustment expense (LAE) (benefit)	5		—		—		27		—
Segment benefit expense for annuity reinsurance contracts	—		8		—		—		—
Segment employee compensation and benefit expenses	47		3		—		44		—
Segment amortization of deferred acquisition costs (DAC)	5		—		—		5		—
Other segment items (2)	30		2		—		29		9
Segment expenses	87		13		—		105		9
Segment equity in earnings (losses) of investees	(10)		—		(5)		2		(1)
Less: Segment provision (benefit) for income taxes	17		—		(1)		20		1
Segment adjusted operating income (loss)	$	85	$	2	$	(4)	$	76	$	4

Selected components of segment adjusted operating income:
Net investment income	$	89	$	11	$	—	$	89	$	—
Non-cash compensation and operating expenses (3)	15		—		—		14		—


	Six Months
	2026						2025
	Financial Guaranty		Annuity Reinsurance		Asset Management		Financial Guaranty (1)		Asset Management
	(in millions)
Third-party revenues	$	377	$	25	$	94	$	433	$	18
Intersegment revenues	4		—		24		5		3
Segment revenues	381		25		118		438		21
Segment loss and LAE (benefit)	22		—		—		4		—
Segment benefit expense for annuity reinsurance contracts	—		15		—		—		—
Segment employee compensation and benefit expenses	101		5		—		96		—
Segment amortization of DAC	10		—		—		10		—
Other segment items (2)	61		4		68		59		13
Segment expenses	194		24		68		169		13
Segment equity in earnings (losses) of investees	(2)		—		1		32		12
Less: Segment provision (benefit) for income taxes	(2)		(1)		11		57		4
Segment adjusted operating income (loss)	$	187	$	2	$	40	$	244	$	16

Selected components of segment adjusted operating income:
Net investment income	$	177	$	16	$	—	$	175	$	—
Non-cash compensation and operating expenses (3)	36		1		—		32		—

_____________________

(1) Six months 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.

(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 these include expenses associated with incentive fees; and for the Annuity Reinsurance segment these 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 June 30, 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	$	199	$	87	$	(10)	$	17	$	—	$	85
Annuity Reinsurance	15		13		—		—		—		2
Asset Management	—		—		(5)		(1)		—		(4)
Total segments	214		100		(15)		16		—		83
Corporate division	3		38		4		(3)		—		(28)
Other	(2)		(3)		—		—		1		—
Subtotal	215		135		(11)		13		1		55
Reconciling items:
Realized gains (losses) on investments	(10)		—		—		—		—		(10)
Non-credit impairment-related fair value gains (losses) on credit derivatives	(1)		—		—		—		—		(1)
Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment	(1)		—		—		—		—		(1)
Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld	—		—		—		—		—		—
Fair value gains (losses) on CCS	(7)		—		—		—		—		(7)
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	(1)		—		—		—		—		(1)
Tax effect	—		—		—		(4)		—		4
Consolidated	$	195	$	135	$	(11)	$	9	$	1	$	39

Reconciliation of Segment Information to Consolidated Information

Three Months Ended June 30, 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	$	199	$	105	$	2	$	20	$	—	$	76
Asset Management	15		9		(1)		1		—		4
Total segments	214		114		1		21		—		80
Corporate division	4		39		3		(3)		—		(29)
Other	—		(2)		(1)		(1)		3		(1)
Subtotal	218		151		3		17		3		50
Reconciling items:
Realized gains (losses) on investments	(6)		—		—		—		—		(6)
Non-credit impairment-related fair value gains (losses) on credit derivatives	(1)		—		—		—		—		(1)
Fair value gains (losses) on CCS	(1)		—		—		—		—		(1)
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	71		—		—		—		—		71
Tax effect	—		—		—		10		—		(10)
Consolidated	$	281	$	151	$	3	$	27	$	3	$	103

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 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	$	381	$	194	$	(2)	$	(2)	$	—	$	187
Annuity Reinsurance	25		24		—		(1)		—		2
Asset Management	118		68		1		11		—		40
Total segments	524		286		(1)		8		—		229
Corporate division	11		81		23		(4)		—		(43)
Other	(26)		(5)		(2)		(5)		(2)		(16)
Subtotal	509		362		20		(1)		(2)		170
Reconciling items:
Realized gains (losses) on investments	(25)		—		—		—		—		(25)
Non-credit impairment-related fair value gains (losses) on credit derivatives	(3)		—		—		—		—		(3)
Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment	(3)		—		—		—		—		(3)
Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld	(2)		—		—		—		—		(2)
Fair value gains (losses) on CCS	(1)		—		—		—		—		(1)
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	(19)		—		—		—		—		(19)
Tax effect	—		—		—		(10)		—		10
Consolidated	$	456	$	362	$	20	$	(11)	$	(2)	$	127

Reconciliation of Segment Information to Consolidated Information

Six Months Ended June 30, 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	$	438	$	169	$	32	$	57	$	—	$	244
Asset Management	21		13		12		4		—		16
Total segments	459		182		44		61		—		260
Corporate division	8		79		19		(3)		—		(49)
Other	16		(4)		(7)		—		12		1
Subtotal	483		257		56		58		12		212
Reconciling items:
Realized gains (losses) on investments	(22)		—		—		—		—		(22)
Non-credit impairment-related fair value gains (losses) on credit derivatives	60		63		—		—		—		(3)
Fair value gains (losses) on CCS	1		—		—		—		—		1
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities	104		—		—		—		—		104
Tax effect	—		—		—		13		—		(13)
Consolidated	$	626	$	320	$	56	$	71	$	12	$	279

- Definition

Tabular disclosure of segment reporting. Includes, but is not limited to, reconciliation of reportable segment amount to corresponding consolidated total.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-30

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26A
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26A

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 25
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-25

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

+ Details