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AGO (Assured Guaranty) ROE % : 5.59% (As of Jun. 2024)


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What is Assured Guaranty ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Assured Guaranty's annualized net income for the quarter that ended in Jun. 2024 was $312.0 Mil. Assured Guaranty's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $5,584.0 Mil. Therefore, Assured Guaranty's annualized ROE % for the quarter that ended in Jun. 2024 was 5.59%.

The historical rank and industry rank for Assured Guaranty's ROE % or its related term are showing as below:

AGO' s ROE % Range Over the Past 10 Years
Min: 2.18   Med: 9.36   Max: 20.01
Current: 13.13

During the past 13 years, Assured Guaranty's highest ROE % was 20.01%. The lowest was 2.18%. And the median was 9.36%.

AGO's ROE % is ranked better than
56.91% of 485 companies
in the Insurance industry
Industry Median: 11.58 vs AGO: 13.13

Assured Guaranty ROE % Historical Data

The historical data trend for Assured Guaranty's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Assured Guaranty ROE % Chart

Assured Guaranty Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.09 5.45 6.01 2.18 13.71

Assured Guaranty Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.53 11.93 27.43 7.69 5.59

Competitive Comparison of Assured Guaranty's ROE %

For the Insurance - Specialty subindustry, Assured Guaranty's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Assured Guaranty's ROE % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Assured Guaranty's ROE % distribution charts can be found below:

* The bar in red indicates where Assured Guaranty's ROE % falls into.



Assured Guaranty ROE % Calculation

Assured Guaranty's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=739/( (5064+5713)/ 2 )
=739/5388.5
=13.71 %

Assured Guaranty's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as

ROE %=Net Income (Q: Jun. 2024 )/( (Total Stockholders Equity (Q: Mar. 2024 )+Total Stockholders Equity (Q: Jun. 2024 ))/ count )
=312/( (5629+5539)/ 2 )
=312/5584
=5.59 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jun. 2024) net income data. ROE % is displayed in the 30-year financial page.


Assured Guaranty  (NYSE:AGO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=312/5584
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(312 / 768)*(768 / 12128)*(12128 / 5584)
=Net Margin %*Asset Turnover*Equity Multiplier
=40.63 %*0.0633*2.1719
=ROA %*Equity Multiplier
=2.57 %*2.1719
=5.59 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jun. 2024 )
=Net Income/Total Stockholders Equity
=312/5584
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / EBIT) * (EBIT / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (312 / 376) * (376 / 468) * (468 / 768) * (768 / 12128) * (12128 / 5584)
= Tax Burden * Interest Burden * EBIT Margin % * Asset Turnover * Equity Multiplier
= 0.8298 * 0.8034 * 60.94 % * 0.0633 * 2.1719
=5.59 %

Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Assured Guaranty ROE % Related Terms

Thank you for viewing the detailed overview of Assured Guaranty's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Assured Guaranty Business Description

Traded in Other Exchanges
Address
Woodbourne Avenue, Hamilton, BMU, HM 08
Assured Guaranty Ltd. provides credit protection products to the United States and international public finance and structured finance markets, and manages assets across collateralized loan obligations as well as opportunity funds and liquid funds that build on its corporate credit, asset-based finance, municipal and healthcare experience. The company is operating in two segments Insurance segment and the Asset Management segment. The majority of the revenue earned by the company from the Insurance segment.
Executives
Dominic Frederico director, officer: Deputy Chairman/President/CEO ACE LTD, ACE BLDG 30 WOODBOURNE AVE HAMILTON BER
Robert Bailenson officer: Chief Accounting Officer ASSURED GUARANTY LTD., 30 WOODBOURNE AVENUE, HAMILTON D0 HM08
Laura Bieling officer: Chief Accounting Officer* 30 WOODBOURNE AVE., 5TH FLOOR, HAMILTON D0 D0 HM08
G Lawrence Buhl director 30 WOODBOURNE AVE, C/O ASSURED GUARANTY LTD, HAMILTON BERMUDA D0 0000
Stephen Donnarumma officer: Chief Credit Officer 30 WOODOURNE AVENUE, HAMILTON D0 HM08
Jorge A. Gana officer: Chief Risk Officer 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Howard Albert officer: Chief Risk Officer 31 WEST 52ND STREET, NEW YORK NY 10019
David A. Buzen officer: Head of Asset Management* 850 3RD AVENUE, NEW YORK NY 10022
Holly Horn officer: Chief Surveillance Officer 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Brewer Russell B. Ii officer: Chief Surveillance Officer 31 WEST 52ND STREET, NEW YORK NY 10019
Shea Courtney C. director 1555 N. ASTOR STREET, APARTMENT 9W, CHICAGO IL 60610
Michelle Mccloskey director C/O ALLIANCEBERNSTEIN LP, 9TH FLOOR, NEW YORK NY 10105
Lorin Radtke director 30 WOODBOURNE AVE, 5TH FLOOR, HAMILTON D0 D0 HM08
Thomas W Jones director ALTRIA GROUP INC, 6601 WEST BROAD STREET, RICHMOND VA 23230
Andrew T Feldstein officer: Chief Investment Officer 280 PARK AVENUE, 5TH FLOOR EAST, NEW YORK NY 10017