Assured GuarantyLtd. reported first-quarter operating income of $113 million, or 82cents per share, down from $140 million, or 89 cents per share, in the year-agoquarter.
The S&P Capital IQ consensus normalized EPS estimate forthe quarter was 64 cents.
Net income totaled $59 million, or 43 cents per share, comparedwith $201 million, or $1.28 per share, a year earlier.
The company attributed the drop in net income in part to a $60million fair value loss on credit derivatives. It recorded a $124 million gain onthat line item in the year-ago quarter.
Net earned premiums were $183 million, up from $142 million inthe year-ago period. Economic loss development in the quarter was $59 million, includinga $99 million loss in the public finance sector and a gain of $40 million in thestructured finance sector.
Adjusted book value per share was $61.40 as of March 31, comparedwith $61.18 per share as of Dec. 31, 2015.