Segment Information (Tables)

9 Months Ended

Sep. 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


	Third Quarter
	2026						2025
	Financial Guaranty		Annuity Reinsurance		Asset Management		Financial Guaranty		Asset Management
	(in millions)
Third-party revenues	$	205	$	16	$	—	$	204	$	6
Intersegment revenues	2		—		—		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 expenses	43		3		—		44		—
Segment amortization of deferred acquisition costs (DAC)	3		—		—		6		—
Other segment items (2)	31		2		—		32		4
Segment expenses	78		15		—		51		4
Segment equity in earnings (losses) of investees	9		—		2		16		—
Less: Segment provision (benefit) for income taxes	23		—		—		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
	2026						2025
	Financial Guaranty		Annuity Reinsurance		Asset Management		Financial Guaranty (4)		Asset Management
	(in millions)
Third-party revenues	$	582	$	41	$	94	$	637	$	24
Intersegment revenues	6		—		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 expenses	144		8		—		140		—
Segment amortization of DAC	13		—		—		16		—
Other segment items (2)	92		6		68		91		17
Segment expenses	272		39		68		220		17
Segment equity in earnings (losses) of investees	7		—		3		48		12
Less: Segment provision (benefit) for income taxes	21		(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.

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 September 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	$	207	$	78	$	9	$	23	$	—	$	115
Annuity Reinsurance	16		15		—		—		—		1
Asset Management	—		—		2		—		—		2
Total segments	223		93		11		23		—		118
Corporate division	2		35		1		(1)		—		(31)
Other	—		(1)		—		—		2		(1)
Subtotal	225		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 segment	6		—		—		—		—		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 Investees		Less:				Net Income (Loss) Attributable to AGL
	Revenues		Expenses				Provision (Benefit) for Income Taxes		Noncontrolling Interest
	(in millions)
Segments:
Financial Guaranty	$	206	$	51	$	16	$	26	$	—	$	145
Asset Management	8		4		—		1		—		3
Total segments	214		55		16		27		—		148
Corporate division	3		38		9		(2)		—		(24)
Other	13		(1)		(5)		—		9		—
Subtotal	230		92		20		25		9		124
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) on CCS	8		—		—		—		—		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 Investees		Less:				Net Income (Loss) Attributable to AGL
	Revenues		Expenses				Provision (Benefit) for Income Taxes		Noncontrolling Interest
	(in millions)
Segments:
Financial Guaranty	$	588	$	272	$	7	$	21	$	—	$	302
Annuity Reinsurance	41		39		—		(1)		—		3
Asset Management	118		68		3		11		—		42
Total segments	747		379		10		31		—		347
Corporate division	13		116		24		(5)		—		(74)
Other	(26)		(6)		(2)		(5)		—		(17)
Subtotal	734		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 segment	3		—		—		—		—		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 Investees		Less:				Net Income (Loss) Attributable to AGL
	Revenues		Expenses				Provision (Benefit) for Income Taxes		Noncontrolling Interest
	(in millions)
Segments:
Financial Guaranty	$	644	$	220	$	48	$	83	$	—	$	389
Asset Management	29		17		12		5		—		19
Total segments	673		237		60		88		—		408
Corporate division	11		117		28		(5)		—		(73)
Other	29		(5)		(12)		—		21		1
Subtotal	713		349		76		83		21		336
Reconciling items:
Realized gains (losses) on investments	(32)		—		—		—		—		(32)
Non-credit impairment-related fair value gains (losses) on credit derivatives	61		63		—		—		—		(2)
Fair value gains (losses) on CCS	9		—		—		—		—		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

- 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