Bermudian-based bond insurer Assured Guaranty Ltd has reported net income dropped to $124 million in fiscal year 2022 compared to a profit if $389 million in 2021, as expenses rose and investment income fell.

Assured Guranty reported net income of $94 million in the fourth quarter compared to $263 million in the same period in 2021.

Adjusted operating income for the full year was $267 million, including $413 million in the company’s insurance segment.

In the asset management segment, the adjusted operating loss was $6 million and assets under management inflows were $1.4 billion for FY 2022.

Dominic Frederico, president and CEO, said: “Assured Guaranty performed well in 2022. Our insurance business saw a solid performance from our US public, international infrastructure and global structured finance sectors, producing $360 million in gross written premiums, or $375 million of total PVP (present value of new business production), making 2022 the fifth consecutive year in which we generated more than $350 million of GWP and PVP.

“We reached settlement agreements for all but one of the defaulting Puerto Rico entities in our insured portfolio, and our Puerto Rico insured exposure in total decreased by $2.2 billion.

“Additionally, we continued to demonstrate thoughtful capital management, while returning $567 million to shareholders through share repurchases and dividends. The share repurchases reduced our shares outstanding by almost 13 per cent from shares outstanding at year-end 2021.”

In the fourth quarter, adjusted operating income was $14 million.

Adjusted operating shareholders’ equity per share and adjusted book value per share were $93.92 and $141.98, respectively, as of December 31.

In the insurance segment, adjusted operating income was $66 million for fourth quarter 2022.

Gross written premiums were $131 million in the fourth quarter and PVP was $135 million.

Expenses jumped in the segment from $33 million to $259 million as the company reported a loss expense of $12 million compared to a loss benefit of $221 million in 2021.

In the asset management segment, the adjusted operating loss was $3 million and AUM inflows were $23 million.

Assured Guaranty said it is exploring “alternative accretive growth strategies” for its asset management business, with the goal of maximising the value of this business for its stakeholders.

It said: “The company remains committed to growing asset management-related earnings and is pursuing strategies that would provide it with an avenue for such growth.

“Discussions regarding alternative accretive growth strategies are ongoing and there can be no assurance that such discussions will result in any transaction.”