Assured Guaranty Ltd. reported strong second quarter results with a net income of US$103 million and basic earnings per share of US$2.10. The company announced an increased equity buyback authorization of US$300 million and affirmed its quarterly dividend, reflecting management's commitment to returning capital to shareholders. Despite this, credit risk exposure—particularly to large troubled credits like PREPA and certain healthcare transactions—remains a key concern for investors. The company projects $830.5 million in revenue and $262.6 million in earnings by 2028, requiring a 2.1% annual revenue decline and a $177.4 million decrease in earnings. Only one valuation estimate from Simply Wall St Community places fair value at US$183.89.

Arthur J. Gallagher reported strong Q2 earnings, with 16% revenue growth and 307 basis points increase in adjusted EBITDAC margins. The company highlighted robust M&A activity, including nine new mergers and a pipeline of 40 term sheets. Challenges in property insurance and uncertainty around the Assured Partners acquisition were noted, though the company remains optimistic about full-year 2025 growth.

Arthur J. Gallagher & Co. reported Q2 2025 organic growth of 5.3% in the brokerage segment, with expectations for 6.5%–7.5% growth in the second half of 2025. Revenue growth of 9% was attributed to the Assured Partners acquisition, and margins expanded to 36.4% from 33.1% in Q1. The Assured Partners transaction is expected to close in Q3 2025.

Assured Guaranty Ltd. (NYSE:AGO) has a low P/E ratio of 9.4x, lower than the market average, due to declining earnings and projected EPS contraction. Analysts predict continued earnings declines, which may further depress the P/E ratio, despite past strong growth.

The article analyzes AJG's Q3 2024 financial performance, highlighting stable earnings per share (EPS) and net income, lower growth rates compared to previous quarters, strategic acquisitions like Litchfield Special Risks, Inc., regulatory delays for Assured Partners, and mixed analyst sentiment.