Bermudian-based bond insurer Assured Guaranty Ltd has reported third-quarter net income of $157 million.

That compares with net income of $11 million in the prior-year quarter.

Gross written premiums were $40 million in the quarter.

The present value of new business production was $46 million.

Third-quarter capital returned to shareholders was $80 million including share repurchases of $64 million and dividends of $16 million.

“Assured Guaranty achieved important strategic objectives in asset management, new business production and capital management during the third quarter and first nine months of 2023,” said Dominic Frederico, president and CEO.

“In July, we completed our transactions with Sound Point Capital Management and AHP, which resulted in a third-quarter $241 million pre-tax gain, net of expenses.

“We now continue our asset management participation through our 30 per cent ownership interest in Sound Point, furthering our strategy of generating fee-based earnings to complement our risk-based financial guaranty earnings.

“The earnings from that stake will be reflected for the first time in our fourth-quarter reporting. We also expect enhanced returns on our investment portfolio based on a broader range of alternative investment options with Sound Point.”

Mr Frederico added: “In new business production year-to-date, we increased our municipal bond insurance market share, with a 62 per cent share of insured par sold in the primary market.

“Additionally, increased production in global structured finance further validates our diversified underwriting strategy of US public finance, international infrastructure and global structured finance.

“In capital management during the third quarter, we refinanced $330 million of senior debt that was due to mature next year.

“We also picked up the pace of our share repurchases, buying $64 million of shares in the quarter, and in November, our board of directors increased our repurchase authorisation by $300 million.”