v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Prior to the three-month period ended March 31, 2026 (first quarter 2026), the Company disclosed two reportable segments: Insurance and Asset Management. As a result of the expansion of the Company’s business into annuity reinsurance, the chief operating decision maker (CODM) began assessing the results of operations of the Company’s annuity reinsurance business separately and therefore a new operating segment, Annuity Reinsurance, was added in first quarter 2026. In addition, the Insurance segment was renamed the Financial Guaranty segment starting in first quarter 2026, which includes insurance and reinsurance and also specialty insurance and reinsurance on transactions with risk profiles similar to those of the Company’s structured finance exposures written in financial guaranty form. The Company separately reports the results of its Corporate division and the effects of consolidating financial guaranty VIEs (FG VIEs) and consolidated investment vehicles (CIVs). This presentation is consistent with the manner in which the Chief Executive Officer and President, who serves as the CODM, reviews the business to assess performance and allocate resources. The CODM predominantly uses adjusted operating income to allocate resources for each segment in the annual budget and forecasting process and to assess the performance of each segment.

The Company analyzes the operating performance of each segment using adjusted operating income (loss) by segment. Results for each segment and division include specifically identifiable expenses as well as intersegment expense allocations, as applicable, based on time studies and other cost allocation methodologies based on headcount or other metrics. Segment adjusted operating income (loss) is defined as “net income (loss) attributable to AGL,” adjusted for the following items:

•Elimination of realized gains (losses) on investments, except for gains and losses on securities classified as trading.
•Elimination of non-credit impairment-related fair value gains (losses) on credit derivatives, which is the amount of fair value gains (losses) in excess of the present value of the expected estimated economic credit losses. 
•Elimination of changes in fair value of freestanding derivatives in the Annuity Reinsurance segment that economically hedge market movements in financial instruments and insurance liabilities (but are not in designated hedging relationships in accordance with GAAP).
•Elimination of the changes in fair value of the embedded derivative in funds withheld related to realized and unrealized gains (losses) of the underlying investment portfolio.
•Elimination of fair value gains (losses) on committed capital securities (CCS).
•Elimination of foreign exchange gains (losses) on the remeasurement of assets and liabilities such as premiums receivables and insurance liabilities that are long-term in nature.
•Income tax allocated to the adjustments above.

In addition to the adjustments listed above, segment adjusted operating income (loss) differs from GAAP in other respects. The Financial Guaranty segment includes: (i) premiums and losses from the financial guaranty insurance policies issued by AG that guarantee FG VIE debt; (ii) the insurance subsidiaries’ share of earnings from all its investments in funds managed by Sound Point in “equity in earnings (losses) of investees;” and (iii) investment income on the FG VIE debt owned. Under GAAP, (i) FG VIEs are consolidated by AG and the premiums and losses/recoveries associated with the financial guaranty policies in respect of the FG VIEs’ debt are eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”); (ii) certain investments in funds managed by Sound Point are, or were in prior periods, accounted for as CIVs (in the reconciliation tables below, the CIVs and related eliminations of the Financial Guaranty segment’s “equity in earnings (losses) of investees” associated with the Company’s ownership interest in CIVs are presented in “other”); and (iii) FG VIEs are consolidated by AG and the investment income on the FG VIE debt owned is eliminated (the reconciliation tables below present the FG VIEs and related eliminations in “other”).

The Company does not report assets by reportable segment as the CODM does not assess performance or allocate resources based on assets.

The Financial Guaranty segment primarily consists of the adjusted operating income (loss) of the Company’s financial guaranty insurance subsidiaries and AG Asset Strategies LLC (AGAS). See Note 9. Investments.

The Annuity Reinsurance segment comprises the results of Assured Life Re and other subsidiaries acquired in the Assured Life Re Acquisition.

The Asset Management segment includes the results of the Company’s equity method ownership interest in Sound Point and other asset management-related incentive fees and expenses. For segment reporting, the Company includes intersegment revenues, which are eliminated in consolidation, but are included in the measure of Asset Management segment’s results. At the end of first quarter 2026, the Company deconsolidated this general partner and the corresponding CIV after the payout of carried interest from the sale of the underlying asset in a single-asset fund. See Note 10. Variable Interest Entities.

The Corporate division primarily consists of: (i) interest expense and any losses on the extinguishment of the U.S. Holding Companies’ debt; (ii) other corporate operating expenses of AGL and the U.S. Holding Companies, (iii) equity in earnings from certain alternative investments, including, beginning in the fourth quarter of 2025, a portion of the equity in earnings of Assured Healthcare Partners LLC managed funds that were transferred from AG to AGMH as a part of a stock redemption; and (iv) gains and losses associated with certain corporate development or other strategic initiatives. In addition, the Corporate division includes a bargain purchase gain recognized in connection with the Assured Life Re Acquisition in first quarter 2026.

The Other category in the tables below primarily includes the effect of consolidating FG VIEs, CIVs and intersegment eliminations. See Note 10. Variable Interest Entities.
    
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
Third Quarter
20262025
Financial GuarantyAnnuity ReinsuranceAsset ManagementFinancial GuarantyAsset Management
(in millions)
Third-party revenues$205 $16 $— $204 $6 
Intersegment revenues2 — — 2 2 
Segment revenues (1)207 16 — 206 8 
Segment loss and loss adjustment expense (LAE) (benefit)1 — — (31)— 
Segment benefit expense for annuity reinsurance contracts— 10 — — — 
Segment employee compensation and benefit expenses43 3 — 44 — 
Segment amortization of deferred acquisition costs (DAC)3 — — 6 — 
Other segment items (2)31 2 — 32 4 
Segment expenses78 15 — 51 4 
Segment equity in earnings (losses) of investees9 — 2 16 — 
Less: Segment provision (benefit) for income taxes23 — — 26 1 
Segment adjusted operating income (loss)$115 $1 $2 $145 $3 
Selected components of segment adjusted operating income:
Net investment income$93 $10 $— $94 $— 
Non-cash compensation and operating expenses (3)11 — — 15 — 
Nine Months
20262025
Financial GuarantyAnnuity ReinsuranceAsset ManagementFinancial Guaranty (4)Asset Management
(in millions)
Third-party revenues$582 $41 $94 $637 $24 
Intersegment revenues6 — 24 7 5 
Segment revenues (1)588 41 118 644 29 
Segment loss and LAE (benefit)23 — — (27)— 
Segment benefit expense for annuity reinsurance contracts— 25 — — — 
Segment employee compensation and benefit expenses144 8 — 140 — 
Segment amortization of DAC13 — — 16 — 
Other segment items (2)92 6 68 91 17 
Segment expenses272 39 68 220 17 
Segment equity in earnings (losses) of investees7 — 3 48 12 
Less: Segment provision (benefit) for income taxes21 (1)11 83 5 
Segment adjusted operating income (loss)$302 $3 $42 $389 $19 
Selected components of segment adjusted operating income:
Net investment income$270 $26 $— $269 $— 
Non-cash compensation and operating expenses (3)47 1 — 47 — 
_____________________
(1)    Asset Management segment revenues consist of incentive fees, which are performance fees earned by the consolidated general partner of a fund managed by Sound Point.
(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.
(4)    Nine 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.
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 September 30, 2026
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
RevenuesExpensesProvision (Benefit) for Income TaxesNoncontrolling Interest
(in millions)
Segments:
Financial Guaranty$207 $78 $9 $23 $— $115 
Annuity Reinsurance16 15 — — — 1 
Asset Management— — 2 — — 2 
Total segments223 93 11 23 — 118 
Corporate division2 35 1 (1)— (31)
Other— (1)— — 2 (1)
Subtotal225 127 12 22 2 86 
Reconciling items:
Realized gains (losses) on investments(11)— — — — (11)
Non-credit impairment-related fair value gains (losses) on credit derivatives— — — — — — 
Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment6 — — — — 6 
Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld(3)— — — — (3)
Fair value gains (losses) on CCS(2)— — — — (2)
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities (1)— — — — (1)
Tax effect— — — (3)— 3 
Consolidated$214 $127 $12 $19 $2 $78 
Reconciliation of Segment Information to Consolidated Information
Three Months Ended September 30, 2025
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
RevenuesExpensesProvision (Benefit) for Income TaxesNoncontrolling Interest
(in millions)
Segments:
Financial Guaranty$206 $51 $16 $26 $— $145 
Asset Management8 4 — 1 — 3 
Total segments214 55 16 27 — 148 
Corporate division3 38 9 (2)— (24)
Other13 (1)(5)— 9 — 
Subtotal230 92 20 25 9 124 
Reconciling items:
Realized gains (losses) on investments(10)— — — — (10)
Non-credit impairment-related fair value gains (losses) on credit derivatives1 — — — — 1 
Fair value gains (losses) on CCS8 — — — — 8 
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities (22)— — — — (22)
Tax effect— — — (4)— 4 
Consolidated$207 $92 $20 $21 $9 $105 
Reconciliation of Segment Information to Consolidated Information
Nine Months Ended September 30, 2026
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
RevenuesExpensesProvision (Benefit) for Income TaxesNoncontrolling Interest
(in millions)
Segments:
Financial Guaranty$588 $272 $7 $21 $— $302 
Annuity Reinsurance41 39 — (1)— 3 
Asset Management118 68 3 11 — 42 
Total segments747 379 10 31 — 347 
Corporate division13 116 24 (5)— (74)
Other(26)(6)(2)(5)— (17)
Subtotal734 489 32 21 — 256 
Reconciling items:
Realized gains (losses) on investments(36)— — — — (36)
Non-credit impairment-related fair value gains (losses) on credit derivatives(3)— — — — (3)
Fair value gains (losses) of freestanding derivatives in the Annuity Reinsurance segment3 — — — — 3 
Realized and unrealized fair value gains (losses) of the embedded derivative in funds withheld(5)— — — — (5)
Fair value gains (losses) on CCS(3)— — — — (3)
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities (20)— — — — (20)
Tax effect— — — (13)— 13 
Consolidated$670 $489 $32 $8 $— $205 
Reconciliation of Segment Information to Consolidated Information
Nine Months Ended September 30, 2025
Equity in Earnings (Losses) of InvesteesLess:Net Income (Loss) Attributable to AGL
RevenuesExpensesProvision (Benefit) for Income TaxesNoncontrolling Interest
(in millions)
Segments:
Financial Guaranty$644 $220 $48 $83 $— $389 
Asset Management29 17 12 5 — 19 
Total segments673 237 60 88 — 408 
Corporate division11 117 28 (5)— (73)
Other29 (5)(12)— 21 1 
Subtotal713 349 76 83 21 336 
Reconciling items:
Realized gains (losses) on investments(32)— — — — (32)
Non-credit impairment-related fair value gains (losses) on credit derivatives61 63 — — — (2)
Fair value gains (losses) on CCS9 — — — — 9 
Foreign exchange gains (losses) on remeasurement of certain assets and liabilities 82 — — — — 82 
Tax effect— — — 9 — (9)
Consolidated$833 $412 $76 $92 $21 $384