Business Context and Reporting Period
Company: Assured Guaranty Ltd.
Filing Type: Form 8-K (Current Report)
Date of Report: October 12, 2005
Subject: Regulation FD Disclosure regarding revisions to previously reported financial supplements for the first and second quarters of 2005.
Key Financial Metrics
This filing reports adjustments to non-GAAP financial measures rather than standard GAAP revenue or profit figures. The specific changes are:
- Present Value of Gross Written Premiums (PVGPW): Decreased by $5.6 million for the first quarter of 2005 and the first six months of 2005 within the financial guaranty reinsurance segment.
- Adjusted Book Value: Reduced by $4.0 million (or $0.05 per share) as of March 31, 2005.
- Second Quarter 2005: PVGPW and Adjusted Book Value remain unchanged.
The filing text does not provide clear values for total revenue, net income, cash flow, margins, debt, or liquidity for the current period.
Material Changes Versus Prior Period
The material change is a downward revision to previously disclosed non-GAAP metrics for Q1 2005 and the first half of 2005. This revision was necessitated by updated information received from a ceding company. The original figures were reported in 8-K filings dated May 6, 2005, and August 5, 2005.
Guidance, Outlook, and Risks
Management Commentary: The Company clarified that PVGPW and Adjusted Book Value are non-GAAP measures. Investors are directed to the corrected financial supplements on the Company's website for reconciliations to comparable GAAP measures.
Risks/Contingencies: The revision highlights the risk of reliance on data provided by ceding companies, which may require retrospective adjustments to financial reporting.
Important Facts for Investor Verification
- Verify the corrected Q1 and Q2 2005 financial supplements on the Company's investor relations website.
- Review the reconciliation between the revised non-GAAP measures (PVGPW and Adjusted Book Value) and GAAP financial measures.
- Confirm the impact of the $5.6 million decrease in PVGPW on the Company's overall financial position.