ASSURED GUARANTY LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - 8-K - ASSURED GUARANTY LTD	a2199860z8-k.htm
EX-99.1 - EXHIBIT 99.1 - ASSURED GUARANTY LTD	a2199860zex-99_1.htm
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Exhibit 99.2

Assured Guaranty Municipal Corp.
June 30, 2010
Financial Supplement

Table of Contents			Page

	Selected Financial Highlights		1
	Consolidated Statements of Operations		2
	Consolidated Balance Sheets		3
	Claims Paying Resources and Statutory-basis Exposures		4
	New Business Production		5
	Financial Guaranty Gross Par Written		6
	Underwriting Gain (Loss)		7
	Investment Portfolio		8
	Estimated Net Exposure Amortization and Estimated Future Net Premium Reserve and Credit Derivative Revenues		9
	Expected Amortization of U.S. and Non-U.S. Structured Finance Net Par Outstanding		10
	Present Value of Financial Guaranty Insurance Losses to be Expensed		11
	Financial Guaranty Profile		12-14
	Pooled Corporate Obligations Profile		15
	Consolidated U.S. Residential Mortgage-Backed Securities Profile		16-20
	U.S. Consumer Receivables Profile		21
	Credit Derivative Net Par Outstanding Profile		22
	Below Investment Grade Exposures		23-27
	Largest Exposures by Sector		28-31
	Loss and LAE Reserves by Segment/Type		32
	Financial Guaranty Losses Incurred and Paid		33
	Summary of Statutory Financial and Statistical Data		34
	Glossary		35
	Endnotes Related to Non-GAAP Financial Measures		37

This financial supplement should be read in conjunction with documents filed by Assured Guaranty Ltd. (together with its subsidiaries, "Assured Guaranty"), with the Securities and Exchange Commission ("SEC"), including Assured Guaranty's Annual Reports on Form 10-K for the year ended December 31, 2009 and its Quarterly Reports on Form 10-Q for the periods ended March 31, 2010 and June 30, 2010. Assured Guaranty Municipal Corp. ("AGM") was purchased by Assured Guaranty US Holdings Inc., a subsidiary of Assured Guaranty Ltd., on July 1, 2009. This financial supplement presents financial information since its acquisition, except for statutory data, which is based on full year statutory accounting principles. Purchase accounting adjustments were pushed down to AGM, which affects comparability to periods prior to the acquisition. AGM is a subsidiary of Assured Guaranty Municipal Holdings Inc. ("AGMH"), which terminated its registration with the SEC in July 2009 and no longer files reports with the SEC. For the purposes of this financial supplement, all references to the "Company" shall mean AGM.

Some amounts in this Financial Supplement may not add due to rounding.



		Cautionary Statement Regarding Forward-Looking Statements:
		Any forward-looking statements made in this supplement reflect the current views of Assured Guaranty with respect to future events and financial performance and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. Assured Guaranty's forward looking statements could be affected by many events. These events include (1) rating agency action, including a ratings downgrade of Assured Guaranty Ltd. or its subsidiaries and/or of transactions insured by Assured Guaranty Ltd.'s subsidiaries, both of which have occurred in the past; (2) developments in the world's financial and capital markets that adversely affect issuers' payment rates, Assured Guaranty's loss experience, its ability to cede exposure to reinsurers, its access to capital, its unrealized (losses) gains on derivative financial instruments or its investment returns; (3) changes in the world's credit markets, segments thereof or general economic conditions; (4) more severe or frequent losses implicating the adequacy of Assured Guaranty's loss reserves; (5) the impact of market volatility on the mark-to-market of Assured Guaranty's contracts written in credit default swap form; (6) reduction in the amount of reinsurance portfolio opportunities available to Assured Guaranty; (7) decreased demand or increased competition; (8) changes in applicable accounting policies or practices; (9) changes in applicable laws or regulations, including insurance and tax laws; (10) other governmental actions; (11) difficulties with the execution of Assured Guaranty's business strategy; (12) contract cancellations; (13) Assured Guaranty's dependence on customers; (14) loss of key personnel; (15) adverse technological developments; (16) the effects of mergers, acquisitions and divestitures; (17) natural or man-made catastrophes; (18) other risks and uncertainties that have not been identified at this time; (19) management's response to these factors; and (20) other risk factors identified in Assured Guaranty's filings with the SEC. Readers are cautioned not to place undue reliance on these forward looking statements, which speak only as of the dates on which they are made. Assured Guaranty undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Assured Guaranty Municipal Corp.
Selected Financial Highlights
(dollars in millions)

			Three Months Ended June 30, 2010			Six Months Ended June 30, 2010

Operating income reconciliation:
	Operating income ¹		$	149.6		$	331.3
	Plus after-tax adjustments:
		Realized gains (losses) on investments		(8.2	)		(4.7	)
		Non-credit impairment unrealized fair value gains (losses) on credit derivatives		27.4			(4.4	)
		Fair value gains (losses) on committed capital securities		4.4			2.6
		Foreign exchange gains (losses) on revaluation of premiums receivable		(8.0	)		(21.4	)
		Effect of consolidating variable interest entities ("VIEs") ²		12.0			0.2

		Net income attributable to Assured Guaranty Municipal Corp.	$	177.2		$	303.6

Return on equity ("ROE") calculations ³:
	ROE, excluding unrealized gain (loss) on investment portfolio			34.7%			29.4%
	Operating ROE			25.2%			29.1%
Other information
	Gross par written		$	5,890		$	10,819

			As of:

			June 30, 2010			December 31, 2009
Reconciliation of shareholder's equity to adjusted book value:
	Shareholder's equity attributable to Assured Guaranty Municipal Corp.		$	2,166.9		$	2,074.5
	Less after-tax adjustments:
		Effect of consolidating VIEs ²		(166.5	)		-
		Non-credit impairment unrealized fair value gains (losses) on credit derivatives		(128.8	)		(143.5	)
		Fair value gains (losses) on committed capital securities		6.2			3.6
		Unrealized gain (loss) on investment portfolio excluding foreign exchange effect		39.1			75.1

Operating shareholder's equity			$	2,416.9		$	2,139.3
	After-tax adjustments:
		Less: Deferred acquisition costs		(50.8	)		(17.5	)
		Plus: Net present value of estimated net future credit derivative revenue		165.5			191.9
		Plus: Net unearned premium reserve on financial guaranty contracts in excess of expected loss to be expensed		2,105.8			2,510.6

	Adjusted book value		$	4,739.0		$	4,859.3

Other information
	Net debt service outstanding		$	532,293		$	583,796
	Net par outstanding			358,718			393,990
	Claims-paying resources ⁴			6,931			7,232

1. The Company has revised its definition of operating income in the three months ended June 30, 2010 to exclude foreign exchange revaluation gains and losses on premiums receivable. Prior periods are presented on a consistent basis.

2. Effective January 1, 2010, GAAP accounting required the consolidation of VIEs where the Company is determined to be the control party through rights under our financial guaranty insurance contracts. For those VIEs that the Company consolidates, it records all of the activities of the VIE and eliminates the related insurance accounting. Operating income reverses the financial effect of consolidating these entities and accounts for them as financial guaranty insurance contracts in order to present the Company's insured obligations on a consistent basis.

3. Quarterly ROE calculations represent annualized returns.

4. See page 4.

Note: Please refer to the endnotes for an explanation of the non-GAAP financial measures.

Page 1

Assured Guaranty Municipal Corp.
Consolidated Statements of Operations
(in millions)

			Three Months Ended June 30, 2010			Six Months Ended June 30, 2010

Revenues:
	Net earned premiums		$	223.0		$	473.0
	Net investment income			48.9			96.7
	Net realized investment gains (losses)			(12.5	)		(7.2	)
	Change in fair value of credit derivatives:
		Realized gains and other settlements		25.1			53.2
		Credit impairment on credit derivatives		(20.0	)		(17.2	)
		Non-credit impairment fair value gains (losses) on credit derivatives		33.8			(15.1	)

	Net change in fair value of credit derivatives			38.9			20.9
	Fair value gains (losses) on committed capital securities			6.7			4.0
	Financial guaranty VIEs' revenues			(46.6	)		(69.5	)
	Other income			(2.6	)		(4.0	)

		Total revenues		255.8			513.9
Expenses:
	Loss and loss adjustment expenses			35.7			94.7
	Amortization of deferred acquisition costs			(3.0	)		(4.3	)
	Interest expense			1.6			3.5
	Financial guaranty VIEs' expenses			(55.5	)		(56.3	)
	Other operating expenses			20.1			40.2

		Total expenses		(1.1	)		77.8

	Income (loss) before provision for income taxes			256.9			436.1
	Provision (benefit) for income taxes			79.7			132.5

	Net income (loss)			177.2			303.6
	Less: Noncontrolling interest of consolidated VIEs			-			-

	Net income attributable to Assured Guaranty Municipal Corp.		$	177.2		$	303.6
	Less after-tax adjustments
		Realized gains (losses) on investments		(8.2	)		(4.7	)
		Non-credit impairment unrealized fair value gains on credit derivatives		27.4			(4.4	)
		Fair value gains (losses) on committed capital securities		4.4			2.6
		Foreign exchange gains (losses) on revaluation of premiums receivable		(8.0	)		(21.4	)
		Effect of consolidating VIEs ¹		12.0			0.2

	Operating income		$	149.6		$	331.3

Effect of refundings and accelerations, net
Earned premiums from refundings and accelerations, net			$	10.4		$	21.2
Operating income effect			$	6.8		$	13.8

1. Effective January 1, 2010, GAAP accounting required the consolidation of VIEs where the Company is determined to be the control party through rights under our financial guaranty insurance contracts. For those VIEs that the Company consolidates, it records all of the activities of the VIE and eliminates the related insurance accounting. Operating income reverses the financial effect of consolidating these entities and accounts for them as financial guaranty insurance contracts in order to present the Company's insured obligations on a consistent basis.

Note: Please refer to the endnotes for an explanation of the non-GAAP financial measures.

Page 2

Assured Guaranty Municipal Corp.
Consolidated Balance Sheets
(in millions)

			As of

			June 30, 2010		December 31, 2009
Assets
	Investment portfolio, available-for-sale:
		Fixed maturity securities, at fair value	$	4,787.6	$	5,183.6
		Short-term investments		518.2		542.0

	Total investment portfolio			5,305.8		5,725.6
	Assets acquired in refinancing transactions			138.3		152.4
	Note receivable from affiliate			300.0		300.0
	Cash			35.6		23.6
	Premiums receivable			713.7		787.4
	Ceded unearned premium reserve			1,564.0		1,537.1
	Reinsurance recoverable on unpaid losses			21.0		13.7
	Credit derivative assets			202.7		227.0
	Committed capital securities, at fair value			9.6		5.6
	Deferred tax asset, net			969.2		972.4
	Salvage and subrogation recoverable			469.0		248.1
	Financial guaranty VIE assets ¹			1,452.3		762.3
	Other assets			106.1		135.5

Total assets			$	11,287.3	$	10,890.7

Liabilities and shareholder's equity
Liabilities
	Unearned premium reserves		$	5,787.8	$	6,468.3
	Loss and loss adjustment expense reserve			131.7		55.3
	Notes payable			137.6		149.1
	Credit derivative liabilities			626.7		625.8
	Reinsurance balances payable, net			295.7		259.0
	Financial guaranty VIE liabilities with recourse ¹			1,615.9		762.7
	Financial guaranty VIE liabilities without recourse ¹			172.4		-
	Other liabilities			352.6		496.4

Total liabilities				9,120.4		8,816.6
Shareholder's equity
	Preferred stock			-		-
	Common stock			15.0		15.0
	Additional paid-in capital			1,216.8		1,241.8
	Retained earnings ¹			880.4		743.4
	Accumulated other comprehensive income			54.7		74.3

Total shareholder's equity attributable to Assured Guaranty Municipal Corp.				2,166.9		2,074.5
	Noncontrolling interest in consolidated VIEs ¹			-		(0.4	)

Total shareholder's equity				2,166.9		2,074.1

Total liabilities and shareholder's equity			$	11,287.3	$	10,890.7

Page 3

Assured Guaranty Municipal Corp.
Claims Paying Resources and Statutory-basis Exposures ¹
(dollars in millions)

		As of:

		June 30, 2010		December 31, 2009
Claims paying resources
Policyholders' surplus		$	843	$	909
Contingency reserve			1,421		1,323

	Qualified statutory capital		2,264		2,232
Unearned premium reserve			2,260		2,392
Loss and loss adjustment expense reserves			1,194		1,236

	Total policyholders' surplus and reserves ¹		5,718		5,860
Present value of installment premiums ²			715		874
Standby line of credit/stop loss			498		498

	Total claims paying resources	$	6,931	$	7,232

Net par outstanding		$	347,713	$	381,148
Net debt service outstanding		$	519,966	$	568,594
Ratios:
	Net par insured to statutory capital		154:1		171:1
	Capital ratio ³		230:1		255:1
	Financial resources ratio ⁴		75:1		79:1

1. Statutory basis.

2. Includes financial guaranty insurance and credit derivatives.

3. The capital ratio is calculated by dividing net debt service outstanding by qualified statutory capital.

4. The financial resources ratio is calculated by dividing net debt service outstanding by total claims paying resources.

Page 4

Assured Guaranty Municipal Corp.
New Business Production
(in millions)

				Three Months Ended June 30, 2010		Six Months Ended June 30, 2010

Consolidated new business production analysis:
	Present value of new business production ("PVP")
		Public finance - U.S.
			Primary markets	$	64.5	$	112.8
			Secondary markets		7.9		13.2
		Public finance - non-U.S.
			Primary markets		-		-
			Secondary markets		-		-
		Structured finance - U.S. ¹			0.5		0.9
		Structured finance - non-U.S. ¹			2.1		2.1

		Total PVP			75.0		129.0
	Less: PVP of credit derivatives				-		-

	PVP of financial guaranty insurance				75.0		129.0
		Less: Financial guaranty installment premium PVP			1.3		1.9

	Total: Financial guaranty upfront gross written premiums ("GWP")				73.7		127.1
	Plus: Financial guaranty installment PVP adjustment ²				2.3		16.1

		Total GWP		$	76.0	$	143.2

Consolidated financial guaranty gross par written:
	Public finance - U.S.
			Primary markets	$	5,625	$	10,410
			Secondary markets		265		409
	Public finance - non-U.S.
			Primary markets		-		-
			Secondary markets		-		-
	Structured finance - U.S.				-		-
	Structured finance - non-U.S.				-		-

		Total		$	5,890	$	10,819

1. These policies represent existing policies that have additional premium and have no par outstanding.

2. Includes the difference in management estimates for the discount rate applied to future installments compared to the discount rate used for new financial guaranty insurance accounting standard as well as the changes in estimated term for future installments.

Note: Please refer to the endnotes for an explanation of the non-GAAP financial measures.

Page 5

Assured Guaranty Municipal Corp.
Financial Guaranty Gross Par Written
(in millions)

Financial Guaranty Gross Par Written by Asset Type

			Three Months Ended June 30, 2010				Six Months Ended June 30, 2010

			Gross Par Written		Avg. Rating ¹		Gross Par Written		Avg. Rating ¹
Sector:
U.S. Public Finance:
	General obligation		$	2,539		A	$	4,612		A
	Municipal utilities			832		A		2,054		A
	Tax backed			885		A+		2,022		A
	Transportation			312		A		587		A
	Healthcare			381		BBB+		549		A-
	Higher education			226		A		250		A
	Investor-owned utilities			-		-		30		A-
	Other public finance			715		A		715		A

		Total U.S. public finance		5,890		A		10,819		A
Non-U.S. Public Finance:
		Total non-U.S. public finance		-		-		-		-

Total public finance			$	5,890		A	$	10,819		A

U.S. Structured Finance:
		Total U.S. structured finance	$	-		-	$	-		-
Non-U.S. Structured Finance:
		Total non-U.S. structured finance		-		-		-		-

Total structured finance			$	-		-	$	-		-

Total gross par written			$	5,890		A	$	10,819		A

Please refer to the Glossary for a description of select types of U.S. public finance, non-U.S. public finance, U.S. structured finance and non-U.S. structured finance obligations that the Company insures and reinsures.

Page 6

Assured Guaranty Municipal Corp.
Underwriting Gain (Loss)
(in millions)

			3Q-09			4Q-09			1Q-10			2Q-10			Six Months Ended June 30, 2010

Income statement:
Net earned premiums:
	Scheduled net earned premiums
		Public finance - U.S.	$	60.7		$	55.3		$	43.2		$	45.6		$	88.8
		Public finance - non-U.S.		13.3			11.5			9.5			13.0			22.5
		Structured finance - U.S.		189.5			180.6			179.8			146.6			326.4
		Structured finance - non-U.S.		5.5			11.0			6.7			7.4			14.1

	Total scheduled net earned premiums			269.0			258.4			239.2			212.6			451.8
	Net earned premiums from refundings and accelerations			11.5			36.5			10.8			10.4			21.2

Total net earned premiums				280.5			294.9			250.0			223.0			473.0
Realized gains on credit derivatives ¹				28.8			27.8			28.1			25.1			53.2
Other income				28.9			(0.7	)		17.2			11.8			29.0

	Total underwriting revenues			338.2			322.0			295.3			259.9			555.2
Loss and loss adjustment expenses				0.9			50.9			59.0			35.7			94.7
Incurred losses (gains) on credit derivatives ²				(27.3	)		(19.7	)		(2.8	)		20.0			17.2

	Total incurred losses			(26.4	)		31.2			56.2			55.7			111.9
Amortization of deferred acquisition costs				-			(0.5	)		(1.3	)		(3.0	)		(4.3	)
Operating expenses				41.7			25.5			18.8			19.7			38.5

	Total underwriting expenses			15.3			56.2			73.7			72.4			146.1

		Underwriting gain (loss)	$	322.9		$	265.8		$	221.6		$	187.5		$	409.1

1. Includes premiums and ceding commissions.

2. Includes paid and payable losses and received and receivable recoveries.

Page 7

Assured Guaranty Municipal Corp.
Investment Portfolio
As of June 30, 2010
(dollars in millions)

			Amortized Cost		Pre-Tax Book Yield			Fair Value		Annualized Investment Income ¹

Investment portfolio, available-for-sale:
Fixed maturity securities:
	U.S. Treasury securities and obligations of U.S. government agencies		$	35.2		3.44%	2.24%	$	37.2	$	1.2
	Agency obligations			119.7		2.03%	1.32%		122.4		2.4
	Foreign government securities			269.5		2.83%	1.84%		253.5		7.6
	Obligations of states and political subdivisions			1,667.9		3.69%	3.50%		1,732.5		61.5
	Insured obligations of state and political subdivisions ²			1,697.3		4.77%	4.51%		1,774.3		81.0
	Corporate securities			126.2		2.78%	1.80%		126.6		3.5
	Mortgage-backed securities ("MBS"):
		Residential MBS ("RMBS")		458.8		3.61%	2.35%		412.3		16.6
		Commercial MBS ("CMBS")		12.7		4.53%	2.95%		12.7		0.6
	Asset-backed securities			314.8		2.56%	1.66%		316.1		8.1

		Total fixed maturity securities		4,702.1		3.88%	3.42%		4,787.6		182.5
Short-term investments				517.7		0.24%	0.15%		518.2		1.2

		Total investment portfolio	$	5,219.8		3.52%	3.09%	$	5,305.8	$	183.7

Ratings ³:			Fair Value		%
Treasury and U.S. government obligations			$	37.2		0.8%
Agency obligations				122.4		2.6%
AAA/Aaa				1,405.1		29.3%
AA/Aa				2,063.4		43.1%
A/A				778.6		16.3%
BBB				120.2		2.5%
Below investment grade ("BIG") ⁴				250.4		5.2%
Not rated				10.3		0.2%

	Total fixed maturity securities available for sale		$	4,787.6		100.0%

Duration of investment portfolio (in years):						4.9

Average ratings of investment portfolio						AA-

1. Represents annualized investment income based on amortized cost and pre-tax book yields.

2. Reflects obligations of state and local political subdivisions that have been insured by financial guarantors. The underlying ratings of these bonds, after giving effect to the lower of the rating assigned by Standard & Poor's Rating Services ("S&P") or Moody's Investors Service, Inc. ("Moody's"), average A+. Includes $200.4 million insured by AGM.

3. Ratings are represented by the lower of the Moody's and S&P classifications.

4. Included in the investment portfolio are securities purchased or obtained as part of loss mitigation strategies of $528.3 million in par with carrying value of $250.4 million.

Page 8

Assured Guaranty Municipal Corp.
Estimated Net Exposure Amortization ¹ and Estimated Future Net Premium and Credit Derivative Revenues
(in millions)

						Financial Guaranty Insurance ²

		Estimated Net Debt Service Amortization		Estimated Ending Net Debt Service Outstanding		Expected PV Net Earned Premiums		Accretion of Discount		Future Net Premiums Earned		Future Credit Derivative Revenues ³		Total
2010 (as of June 30)				$	532,293
2010 (July 1 - September 31)		$	11,028		521,265	$	202.1	$	3.6	$	205.7	$	20.5	$	226.2
2010 (October 1 - December 31)			13,013		508,252		186.0		3.5		189.5		18.6		208.1
2011			40,512		467,740		561.0		13.3		574.3		71.0		645.3
2012			43,692		424,048		422.5		12.5		435.0		51.7		486.7
2013			35,987		388,061		353.1		11.6		364.7		35.2		399.9
2014			37,430		350,631		309.6		10.8		320.4		23.0		343.4
2010-2014			181,662		350,631		2,034.3		55.3		2,089.6		220.0		2,309.6
2015-2019			123,774		226,857		1,058.0		43.7		1,101.7		31.6		1,133.3
2020-2024			89,978		136,879		588.3		29.9		618.2		2.6		620.8
2025-2029			62,955		73,924		338.2		19.3		357.5		2.2		359.7
After 2029			73,924		-		377.4		19.6		397.0		6.7		403.7

	Total	$	532,293			$	4,396.2	$	167.8	$	4,564.0	$	263.1	$	4,827.1

1. Represents the future expected amortization of current debt service outstanding (principal and interest), assuming no advance refundings, as of June 30, 2010. Actual amortization differs from expected maturities because borrowers may have the right to call or prepay guaranteed and because of management's assumptions on structured finance amortization. obligations.

2. See page 11 for "Present Value of Financial Guaranty Insurance Losses to be Expensed."

3. Excludes contracts with credit impairment.

Page 9

Assured Guaranty Municipal Corp.
Expected Amortization of U.S. and Non-U.S. Structured Finance Net Par Outstanding
(in millions)

		Estimated Net Par Amortization

		U.S. and Non-U.S. Pooled Corporate		U.S. RMBS		Financial Products ¹		Other Structured Finance		Total		Estimated Ending Net Par Outstanding
Structured Finance Net Par Amortization:
2010 (as of June 30)													81,718
2010 (July 1 - September 30)		$	2,550	$	884	$	653	$	592	$	4,679		77,039
2010 (October 1 - December 31)			4,242		817		240		435		5,734		71,305
2011			7,063		2,586		703		1,814		12,166		59,139
2012			11,121		1,683		1,252		1,385		15,441		43,698
2013			7,656		1,079		973		398		10,106		33,592
2014			10,767		906		745		210		12,628		20,964
2010-2014			43,399		7,955		4,566		4,834		60,754		20,964
2015-2019			9,725		2,945		913		991		14,574		6,390
2020-2024			183		1,280		626		231		2,320		4,070
2025-2029			33		461		462		161		1,117		2,953
After 2029			81		695		1,827		350		2,953		-

	Total structured finance	$	53,421	$	13,336	$	8,394	$	6,567	$	81,718

1. See Glossary for description of financial products.

Page 10

Assured Guaranty Municipal Corp.
Present Value of Financial Guaranty Insurance Losses to be Expensed
(in millions)

		Expected Net Loss to be Expensed ¹

Financial Guaranty Insurance Losses to be Expensed:
2010 (July 1 - December 31)		$	151.8
2011			176.0
2012			105.4
2013			83.2
2014			79.1
2010-2014			595.5
2015-2019			244.3
2020-2024			109.6
2025-2029			60.0
After 2029			56.5

	Total expected PV of net loss to be expensed		1,065.9
Discount			426.7

	Total future value	$	1,492.6

1. The expected present value of net loss to be expensed is discounted by weighted-average risk free rates ranging from 0% to 4.81%.

Page 11

Assured Guaranty Municipal Corp.
Financial Guaranty Profile (1 of 3)
(in millions)

Net Par Outstanding and Average Rating by Asset Type

			As of June 30, 2010

			Net Par Outstanding		Avg. Rating ¹
U.S. Public Finance:
	General obligation		$	111,426	A+
	Tax backed			50,836	A+
	Municipal utilities			46,510	A
	Transportation			19,999	A
	Healthcare			10,046	A
	Higher education			6,794	A+
	Housing			5,398	AA-
	Infrastructure finance			1,144	BBB
	Investor-owned utilities			47	BBB+
	Other public finance			1,808	A

		Total U.S. public finance		254,008	A+
Non-U.S. Public Finance:
	Infrastructure finance			10,230	BBB
	Regulated utilities			6,390	BBB+
	Other public finance			6,372	AA-

		Total non-U.S. public finance		22,992	A-

Total public finance			$	277,000	A+

U.S. Structured Finance:
	Pooled corporate obligations		$	40,681	AAA
	RMBS and home equity			13,336	BB-
	Financial products ²			8,394	AA-
	Consumer receivables			2,692	A-
	Insurance securitization			369	AA
	Commercial receivables			95	BBB
	Structured credit			80	BBB-
	Other structured finance			640	A

		Total U.S. structured finance		66,287	AA-
Non-U.S. Structured Finance:
	Pooled corporate obligations			12,740	AAA
	RMBS and home equity			1,499	AA
	Structured credit			539	BBB
	Commercial receivables			240	A
	Insurance securitizations			38	A+
	Other structured finance			375	AAA

		Total non-U.S. structured finance		15,431	AAA

Total structured finance			$	81,718	AA

Total net par outstanding			$	358,718	A+

2. See Glossary for description of financial products.

Page 12

Assured Guaranty Municipal Corp.
Financial Guaranty Profile (2 of 3)
(dollars in millions)

Distribution by Ratings of Financial Guaranty Portfolio

		As of June 30, 2010

		Public Finance - U.S.				Public Finance - non-U.S.				Structured Finance - U.S.				Structured Finance - non-U.S.				Consolidated
Ratings ¹:		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%		Net Par Outstanding		%
Super senior		$	-		0.0%	$	-		0.0%	$	11,493		17.3%	$	4,759		30.8%	$	16,252		4.5%
AAA			5,640		2.2%		1,296		5.6%		25,130		37.9%		6,470		41.9%		38,536		10.7%
AA			107,028		42.1%		1,390		6.0%		14,698		22.2%		1,768		11.5%		124,884		34.8%
A			119,411		47.0%		6,879		29.9%		3,157		4.8%		1,006		6.5%		130,453		36.4%
BBB			20,755		8.2%		13,090		56.9%		1,482		2.2%		1,349		8.7%		36,676		10.2%
BIG			1,174		0.5%		337		1.6%		10,327		15.6%		79		0.6%		11,917		3.4%

	Total net par outstanding	$	254,008		100.0%	$	22,992		100.0%	$	66,287		100.0%	$	15,431		100.0%	$	358,718		100.0%

Ceded Par Outstanding by Reinsurer and Insurer Financial Strength Rating

Reinsurer					Ceded Par Outstanding

Affiliated Companies			A1	AA	$	65,993	48.6%
Non-Affiliated Companies:
	Radian Asset Assurance Inc.		Ba1	BB-		22,737	16.8%
	Tokio Marine & Nichido Fire Insurance Co., Ltd.		Aa2	AA		20,326	15.0%
	RAM Reinsurance Co. Ltd.		WR	WR		10,784	7.9%
	R.V.I. Guaranty Co. Ltd.		WR	BBB		4,119	3.0%
	Syncora Guarantee Inc.		Ca	WR		4,051	3.0%
	Swiss Reinsurance Company		A1	A+		2,881	2.1%
	Mitsui Sumitomo Insurance Co. Ltd.		Aa3	AA-		2,473	1.8%
	Other		Various	Various		2,301	1.8%

Non-Affiliated Companies						69,672	51.4%

		Total			$	135,665	100.0%

1. Assured Guaranty's internal rating. The Company's ratings scale is similar to that used by the nationally recognized rating agencies; however, the ratings in the above table may not be the same as ratings assigned by any nationally recognized rating agency. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured Guaranty's AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured Guaranty's exposure or (2) Assured Guaranty's exposure benefiting from a different form of credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management's opinion, causes Assured Guaranty's attachment point to be materially above the AAA attachment point.

Page 13

Assured Guaranty Municipal Corp.
Financial Guaranty Profile (3 of 3)
(dollars in millions)

Geographic Distribution of Financial Guaranty Portfolio as of June 30, 2010

			Net Par Outstanding

U.S.:
Public Finance:
	California		$	36,900	10.3%
	New York			21,063	5.9%
	Pennsylvania			19,028	5.3%
	Texas			17,065	4.8%
	Illinois			15,922	4.4%
	Florida			14,349	4.0%
	New Jersey			11,490	3.2%
	Michigan			11,374	3.2%
	Washington			8,725	2.4%
	Massachusetts			7,572	2.1%
	Other states			90,520	25.3%

		Total Public Finance		254,008	70.9%
Structured finance (multiple states)				66,287	18.5%

		Total U.S.		320,295	89.4%

Non-U.S.:
	United Kingdom			11,398	3.2%
	Australia			4,470	1.2%
	Canada			4,119	1.1%
	France			1,679	0.5%
	Italy			1,609	0.4%
	Other			15,148	4.2%

		Total non-U.S.		38,423	10.6%

Total net par outstanding			$	358,718	100.0%

Page 14

Assured Guaranty Municipal Corp.
Pooled Corporate Obligations Profile
(dollars in millions)

Distribution of Financial Guaranty Pooled Corporate Obligations by Ratings as of June 30, 2010

Ratings ¹:		Net Par Outstanding

Super senior		$	15,740	29.5%	27.3%	25.2%
AAA			29,194	54.6%	24.2%	25.4%
AA			5,729	10.7%	36.4%	32.4%
A			1,785	3.3%	22.6%	19.5%
BBB			742	1.4%	12.1%	10.2%
BIG			231	0.5%	39.9%	8.9%

	Total exposures	$	53,421	100.0%	26.2%	25.6%

Distribution of Financial Guaranty Pooled Corporate Obligations by Asset Class as of June 30, 2010

Asset class:		Net Par Outstanding

CBOs/CLOs ³		$	30,144	56.4%	27.1%	26.3%	AAA
Synthetic investment grade pooled corporates			11,769	22.0%	17.3%	15.4%	AAA
Synthetic high yield pooled corporates			9,105	17.0%	38.0%	32.9%	AA
Market Value CDOs of corporates			1,492	2.8%	17.0%	58.2%	AAA
Trust preferred - banks and insurance			162	0.3%	47.4%	44.0%	A
CDO of CDOs (corporate) ⁴			36	0.1%	26.3%	27.9%	A
Other pooled corporates			713	1.4%	0.0%	0.0%	A

	Total	$	53,421	100.0%	26.2%	25.6%	AAA

2. "Average Credit Enhancement" is intended to provide a measure of the amount of equity and/or subordinate tranches that are junior in the capital structure to AGM's exposure, and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the numbers shown above do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Data is obtained from third-party sources such as trustee reports and may be subject to adjustments.

3. CBOs (collateralized bond obligations)/CLOs (collateralized loan obligations) are largely non-investment/high yield collateral.

4. CDOs are collateralized debt obligations.

Page 15

Assured Guaranty Municipal Corp.
Consolidated U.S. Residential Mortgage-Backed Securities ("RMBS") Profile (1 of 5)
(dollars in millions)

Distribution of U.S. RMBS by Rating ¹ and Type of Exposure as of June 30, 2010

Ratings:	Prime First Lien ²		Closed End Seconds ("CES")		HELOC ³		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		NIMs ⁴		Total Net Par Outstanding

Super senior	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
AAA		105		-		423		89		148		1,259		-		2,024
AA		2		36		493		39		-		264		0		834
A		1		-		-		-		-		120		-		121
BBB		-		-		-		-		-		250		31		281
BIG		-		1,099		3,196		1,375		2,137		2,116		153		10,076

Total exposures	$	108	$	1,135	$	4,113	$	1,504	$	2,285	$	4,008	$	183	$	13,336

Distribution of U.S. RMBS by Year Insured and Type of Exposure as of June 30, 2010

Year insured:	Prime First Lien		CES		HELOC		Alt-A First Lien		Alt-A Option ARMs		Subprime First Lien		NIMs		Total Net Par Outstanding

2004 and prior	$	7	$	-	$	276	$	71	$	-	$	1,272	$	0	$	1,625
2005		-		-		648		368		124		376		-		1,515
2006		101		448		1,584		517		902		126		86		3,764
2007		-		687		1,605		548		1,260		2,166		97		6,363
2008		-		-		-		-		-		69		-		69

Total exposures	$	108	$	1,135	$	4,113	$	1,504	$	2,285	$	4,008	$	183	$	13,336

Distribution of U.S. RMBS by Rating ¹ and Year Insured as of June 30, 2010

Year insured:	Super Senior		AAA Rated		AA Rated		A Rated		BBB Rated		BIG Rated		Total

2004 and prior	$	-	$	1,265	$	2	$	44	$	16	$	298	$	1,625
2005		-		177		112		-		46		1,181		1,515
2006		-		301		-		77		-		3,387		3,764
2007		-		282		721		-		149		5,211		6,363
2008		-		-		-		-		69		-		69

Total exposures	$	-	$	2,024	$	834	$	121	$	281	$	10,076	$	13,336

% of total		0.0%		15.2%		6.3%		0.9%		2.1%		75.5%		100.0%

2. Includes primarily Prime First Lien plus an insignificant amount of other miscellaneous MBS transactions.

3. Home equity line of credit ("HELOC") securitizations.

4. NIMs are net interest margin securities.

AGM has not insured any U.S. RMBS transactions since 2008.

Page 16

Assured Guaranty Municipal Corp.
Consolidated U.S. RMBS Profile (2 of 5)
(dollars in millions)

Distribution of Financial Guaranty U.S. RMBS Insured January 1, 2005 or Later by Exposure Type, Average Pool Factor, Subordination, Cumulative Losses and 60+ Day Delinquencies as of June 30, 2010 ¹

U.S. CES

Year insured:	Net Par Outstanding

2005	$	-	-	-	-	-	-
2006		448	23.8%	-	53.4%	16.3%	2
2007		687	29.1%	-	58.1%	12.4%	9
2008		-	-	-	-	-	-

	$	1,135	27.0%	-	56.3%	13.9%	11

U.S. HELOC

Year insured:	Net Par Outstanding

2005	$	648	22.7%	4.0%	8.4%	10.5%	4
2006		1,584	38.5%	1.9%	25.5%	13.9%	7
2007		1,605	55.4%	4.3%	21.6%	6.8%	7
2008		-	-	-	-	-	-

	$	3,837	42.9%	3.3%	21.0%	10.3%	18

U.S. Alt-A First Lien

Year insured:	Net Par Outstanding

2005	$	368	39.8%	12.7%	5.8%	23.4%	8
2006		517	52.5%	1.1%	11.1%	39.9%	7
2007		548	65.5%	1.0%	11.1%	45.8%	4
2008		-	-	-	-	-	-

	$	1,433	54.2%	4.0%	9.8%	37.9%	19

1. For this release, net par outstanding is based on values as of June 2010. All performance information such as pool factor, subordination, cumulative losses and delinquency is based on June 30, 2010 information obtained from Intex, Bloomberg, and/or provided by the trustee and may be subject to restatement or correction.

2. Pool factor is the percentage of the current collateral balance divided by the original collateral balance of the transactions at inception.

3. Represents the sum of subordinate tranches and over-collateralization, expressed as a percentage of total transaction size and does not include any benefit from excess interest collections that may be used to absorb losses.

4. Cumulative losses are defined as net charge-offs on the underlying loan collateral divided by the original pool balance.

5. 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or real estate owned ("REO") divided by net par outstanding.

6. Many of the CES transactions insured by the Company have unique structures whereby the collateral may be written down for losses without a corresponding write-down of the obligations insured by the Company. Many of these transactions are currently under-collateralized, with the principal amount of collateral being less than the principal amount of the obligation insured by the Company. The Company is not required to pay principal shortfalls until legal maturity (rather than making timely principal payments), and takes the under-collateralization into account when estimating expected losses for these transactions.

Page 17

Assured Guaranty Municipal Corp.
Consolidated U.S. RMBS Profile (3 of 5)
(dollars in millions)

Distribution of Financial Guaranty U.S. RMBS Insured January 1, 2005 or Later by Exposure Type, Average Pool Factor, Subordination, Cumulative Losses and 60+ Day Delinquencies as of June 30, 2010 ¹

U.S. Alt-A Option ARMs

Year insured:	Net Par Outstanding

2005	$	124	33.9%	6.2%	8.0%	42.2%	3
2006		902	60.6%	6.0%	9.3%	52.5%	6
2007		1,260	65.7%	4.4%	10.7%	46.9%	6
2008		-	-	-	-	-	-

	$	2,285	62.0%	5.1%	10.0%	48.9%	15

U.S. Subprime First Lien

Year insured:	Net Par Outstanding

2005	$	376	38.3%	46.2%	4.0%	38.7%	6
2006		126	41.8%	43.2%	10.6%	40.1%	2
2007		2,166	70.5%	26.6%	9.0%	49.3%	9
2008		69	73.7%	34.3%	5.3%	31.5%	1

	$	2,737	64.9%	30.3%	8.3%	47.0%	18

2. Pool factor is the percentage of the current collateral balance divided by the original collateral balance of the transactions at inception.

4. Cumulative losses are defined as net charge-offs on the underlying loan collateral divided by the original pool balance.

5. 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or REO, divided by net par outstanding.

Page 18

Assured Guaranty Municipal Corp.
Consolidated U.S. RMBS Profile (4 of 5)
(dollars in millions)

Distribution of Financial Guaranty U.S. RMBS Insured January 1, 2005 or Later by Exposure Type, Internal Rating ¹, Average Pool Factor, Subordination, Cumulative Losses and 60+ Day Delinquencies as of June 30, 2010 ²

U.S. CES

Rating:	Net Par Outstanding

AAA	$	-	-	-	-	-	-
AA		36	61.7%	-	8.9%	3.7%	4
A		-	-	-	-	-	-
BBB		-	-	-	-	-	-
BIG		1,099	25.9%	-	57.8%	14.3%	7

	$	1,135	27.0%	-	56.3%	13.9%	11

U.S. HELOC

Rating:	Net Par Outstanding

AAA	$	404	73.2%	7.9%	0.5%	1.1%	3
AA		493	67.1%	10.2%	7.9%	3.4%	2
A		-	-	-	-	-	-
BBB		-	-	-	-	-	-
BIG		2,939	34.7%	1.5%	26.0%	12.8%	13

	$	3,837	42.9%	3.3%	21.0%	10.3%	18

U.S. Alt-A First Lien

Rating:	Net Par Outstanding

AAA	$	19	15.4%	46.6%	5.9%	23.1%	2
AA		39	45.8%	17.7%	2.0%	13.6%	1
A		-	-	-	-	-	-
BBB		-	-	-	-	-	-
BIG		1,375	55.0%	3.1%	10.0%	38.8%	16

	$	1,433	54.2%	4.0%	9.8%	37.9%	19

2. For this release, net par outstanding is based on values as of June 2010. All performance information such as pool factor, subordination, cumulative losses and delinquency is based on June 30, 2010 information obtained from Intex, Bloomberg, and/or provided by the trustee and may be subject to restatement or correction.

3. Pool factor is the percentage of the current collateral balance divided by the original collateral balance of the transactions at inception.

4. Represents the sum of subordinate tranches and over-collateralization, expressed as a percentage of total transaction size and does not include any benefit from excess interest collections that may be used to absorb losses.

5. Cumulative losses are defined as net charge-offs on the underlying loan collateral divided by the original pool balance.

6. 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or REO, divided by net par outstanding.

7. Many of the CES transactions insured by the Company have unique structures whereby the collateral may be written down for losses without a corresponding write-down of the obligations insured by the Company. Many of these transactions are currently under-collateralized, with the principal amount of collateral being less than the principal amount of the obligation insured by the Company. The Company is not required to pay principal shortfalls until legal maturity (rather than making timely principal payments), and takes the under-collateralization into account when estimating expected losses for these transactions.

Page 19

Assured Guaranty Municipal Corp.
Consolidated U.S. RMBS Profile (5 of 5)
(dollars in millions)

U.S. Alt-A Option ARMs

Rating:	Net Par Outstanding

AAA	$	148	62.7%	0.1%	11.4%	52.8%	1
AA		-	-	-	-	-	-
A		-	-	-	-	-	-
BBB		-	-	-	-	-	-
BIG		2,137	61.9%	5.4%	9.9%	48.6%	14

	$	2,285	62.0%	5.1%	10.0%	48.9%	15

U.S. Subprime First Lien

Rating:	Net Par Outstanding

AAA	$	87	25.2%	81.6%	4.5%	44.8%	2
AA		264	39.5%	42.3%	7.6%	34.4%	2
A		77	23.0%	56.3%	14.9%	40.3%	1
BBB		234	65.5%	32.6%	6.3%	33.0%	5
BIG		2,075	71.2%	25.4%	8.6%	50.5%	8

	$	2,737	64.9%	30.3%	8.3%	47.0%	18

3. Pool factor is the percentage of the current collateral balance divided by the original collateral balance of the transactions at inception.

5. Cumulative losses are defined as net charge-offs on the underlying loan collateral divided by the original pool balance.

6. 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or REO, divided by net par outstanding.

Page 20

Assured Guaranty Municipal Corp.
U.S. Consumer Receivables Profile
(dollars in millions)

Distribution of U.S. Consumer Receivables by Rating ¹ as of June 30, 2010

Rating:	Credit Cards		Manufactured Housing		Auto		Total Net Par Outstanding

AAA	$	-	$	84	$	25	$	109
AA		-		47		27		74
A		-		-		1,485		1,485
BBB		88		-		768		856
BIG		-		168		-		168

	$	88	$	299	$	2,305	$	2,692

Average rating ¹		BBB		A-		A-		A-
Avg. initial credit enhancement ²		13.2%		27.5%		10.9%		12.8%
Avg. current credit enhancement ²		15.6%		26.1%		28.4%		27.8%

2. "Average Credit Enhancement" is intended to provide a measure of the amount of equity and/or subordinate tranches that are junior in the capital structure to AGM's exposure, expressed as a percentage of the total transaction size and reflects any reduction of that credit support resulting from defaults or other factors. For transactions where excess spread may be available to absorb certain losses, the amounts shown above do not include any benefit from excess spread. The calculation methodologies differ for the various asset classes to reflect differences in transaction structures in order to provide a measure that management believes is comparable across asset classes. Data is obtained from third-party sources such as trustee reports and may be subject to adjustments.

Page 21

Assured Guaranty Municipal Corp.
Credit Derivative Net Par Outstanding Profile
(dollars in millions)

Distribution of Credit Derivative Net Par Outstanding by Rating

		As of June 30, 2010

Ratings ¹:		Net Par Outstanding		% of Total
Super senior		$	15,696		29.8%
AAA			26,521		50.3%
AA			5,987		11.4%
A			2,500		4.7%
BBB			1,357		2.6%
BIG			660		1.2%

	Total credit derivative net par outstanding	$	52,721		100.0%

Distribution of Credit Derivative Net Par Outstanding by Sector and Average Rating

			As of June 30, 2010

			Net Par Outstanding		Average Rating ¹
Public Finance
	U.S. public finance		$	826	A-
	Non-U.S. public finance			2,425	A

Total public finance			$	3,251	A

U.S. Structured Finance:
	Pooled corporate obligations		$	36,732	AAA
	Residential mortgage-backed and home equity			369	BBB-
	Insurance securitizations			368	AA
	Commercial receivables			67	BBB-
	Other structured finance			119	B

		Total U.S. structured finance		37,655	AAA
Non-U.S. Structured Finance:
	Pooled corporate obligations			11,310	AAA
	Residential mortgage-backed and home equity			454	AA-
	Insurance securitizations			38	A+
	Structured credit			13	BBB

		Total non-U.S. structured finance		11,815	AAA

Total structured finance			$	49,470	AAA

Total credit derivative net par outstanding			$	52,721	AAA

Page 22

Assured Guaranty Municipal Corp.
Below Investment Grade Exposures (1 of 5)
As of June 30, 2010
(in millions)

BIG Exposures by Asset Exposure Type:			Net Par Outstanding

U.S. Public Finance:
	General obligation		$	521
	Healthcare			208
	Tax backed			190
	Municipal utilities			160
	Housing			6
	Higher education			5
	Other public finance			84

		Total U.S. public finance		1,174
Non-U.S. Public Finance:
	Infrastructure finance			337

		Total non-U.S. public finance		337

Total public finance			$	1,511
U.S. Structured Finance:
	Residential mortgage-backed and home equity		$	9,889
	Consumer receivables			168
	Pooled corporate obligations			151
	Other structured finance			119

		Total U.S. structured finance		10,327
Non-U.S. Structured Finance:
	Pooled corporate obligations			79

		Total non-U.S. structured finance		79

Total structured finance			$	10,406

Total BIG net par outstanding			$	11,917

Please refer to the Glossary for a description of select types of U.S. public finance, non-U.S. public finance, U.S. structured finance and non-U.S structured finance obligations that the Company insures and reinsures.

Page 23

Assured Guaranty Municipal Corp.
Below Investment Grade Exposures (2 of 5)
(dollars in millions)

Net Par Outstanding by BIG Category ¹

				Financial Guaranty Insurance and Credit Derivatives Surveillance Categories

Description:				June 30, 2010		December 31, 2009
BIG:
Category 1
	U.S. public finance			$	814	$	991
	Non-U.S. public finance				337		380
	U.S. structured finance				1,463		1,775
	Non-U.S. structured finance				1		2

		Total Category 1			2,615		3,148
Category 2
	U.S. public finance				181		330
	Non-U.S. public finance				-		-
	U.S. structured finance				4,894		4,601
	Non-U.S. structured finance				2		2

		Total Category 2			5,077		4,933
Category 3
	U.S. public finance				179		186
	Non-U.S. public finance				-		-
	U.S. structured finance				3,970		3,895
	Non-U.S. structured finance				76		77

		Total Category 3			4,225		4,158

			BIG Total	$	11,917	$	12,239

1. Assured Guaranty's surveillance department is responsible for monitoring our portfolio of credits and maintains a list of below investment grade ("BIG") credits. The BIG credits are divided into three categories: BIG Category 1: Below investment grade transactions showing sufficient deterioration to make material losses possible, but for which no losses have been incurred. Non-investment grade transactions on which liquidity claims have been paid are in this category. BIG Category 2: Below investment grade transactions for which expected losses have been established but for which no unreimbursed claims have yet been paid. BIG Category 3: Below investment grade transactions for which expected losses have been established and on which unreimbursed claims have been paid. Transactions remain in this category when claims have been paid and only a recoverable remains.

Page 24

Assured Guaranty Municipal Corp.
Below Investment Grade Exposures (3 of 5)
As of June 30, 2010
(dollars in millions)

Public Finance BIG Exposures Greater Than $50 Million

Name or Description		Net Par Outstanding

U.S. Public Finance:
Detroit (City of) School District Michigan		$	162	BB
Jefferson County Alabama Sewer			145	D
Jefferson County Alabama School Sales Tax Limited Obligation			144	BB
Reading (City of) Pennsylvania			113	BB
Detroit (City of) Michigan			112	BB+
Mashantucket Pequot Tribe, Connecticut			84	B
Harrisburg (City of) Pennsylvania General Obligation			75	B
St. Barnabas Health System - New Jersey			62	BB

	Total	$	897
Non-U.S. Public Finance:
Aeroporti Di Roma (ADR) Romulus Finance S.R.L. (Rome Airport)		$	192	BB
Cross City Tunnel Motorway Finance Limited			145	BB

	Total	$	337

Total		$	1,234

Page 25

Assured Guaranty Municipal Corp.
Below Investment Grade Exposures (4 of 5)
As of June 30, 2010
(dollars in millions)

Structured Finance BIG Exposures Greater Than $50 Million

Name or Description		Net Par Outstanding

U.S. Structured Finance:
U.S. RMBS:
	MABS 2007-NCW	$	617	BB	33.9%	67.2%
	Countrywide HELOC 2006-I		568	CCC	0.0%	9.4%
	MASTR 2007-3		547	CCC	5.2%	57.3%
	Countrywide HELOC 2006-F		509	CCC	0.0%	26.3%
	Option One 2007-FXD2		394	B	18.6%	30.1%
	Nomura Asset Acceptance Corp. 2007-1		388	CCC	1.6%	44.0%
	Harborview 2006-12		336	B	10.7%	56.7%
	MARM 2007-1 (FKA MASTR 2007-OA1)		307	CCC	0.0%	35.0%
	Countrywide HELOC 2005-D		297	CCC	0.0%	13.2%
	Countrywide HELOC 2007-A		291	CCC	0.0%	9.8%
	Countrywide 2007-13		279	BB	31.3%	56.4%
	Countrywide HELOC 2007-B		264	CCC	0.0%	9.7%
	GMACM 2004-HE3		257	B	0.0%	2.5%
	Terwin Mortgage Trust 2006-12SL		251	CCC	0.0%	18.4%
	CWABS 2007-4		219	B	22.1%	42.1%
	Indymac 2007-H1 HELOC		215	CCC	0.0%	10.2%
	FHABS 2006-HE2 HELOC		212	BB	0.0%	3.0%
	Terwin Mortgage Trust 2007-1SL		206	CCC	0.0%	10.3%
	Soundview 2007-WMC1		201	CCC	11.9%	71.4%
	Terwin Mortgage Trust 2006-10SL		197	CCC	0.0%	13.8%
	Harborview 2006-1		193	CCC	6.3%	60.5%
	Harborview 2007-1		190	B	14.0%	56.8%
	New Century 2005-A		170	BB	20.5%	30.3%
	Harborview 2006-10		154	CCC	1.2%	33.6%
	Countrywide HELOC 2005-C		151	CCC	0.4%	11.1%
	CSAB 2006-3		147	CCC	0.0%	45.5%
	Renaissance (DELTA) 2007-3		146	B	26.2%	35.1%
	Flagstar HELOC 2006-2		135	CCC	20.4%	12.0%
	Flagstar HELOC 2005-1		129	BB	17.1%	8.9%
	NAAC 2007-S2		118	CCC	0.0%	14.5%
	AHMA 2007-4		113	CCC	0.0%	31.3%
	IMSC 2007-HOA1		102	CCC	0.0%	29.1%
	CSAB 2006-2		91	CCC	3.5%	40.2%
	Countrywide ALTA 2005-22T		91	B	5.9%	23.3%
	Deutsche ALT-B 2006-AB1		90	CCC	4.8%	30.7%
	Terwin Mortgage Trust 2005-16HE		72	BB	13.4%	26.9%
	Deutsche ALT-B 2006-AB4		72	CCC	0.0%	37.2%
	CSMC 2007-3		70	CCC	0.0%	34.2%
	ACE 2006-GP1		68	CCC	0.0%	9.7%
	ACE 2007-SL1		63	CCC	0.0%	12.1%
	GSAA 2005-12		62	BB	11.1%	23.4%
	Terwin Mortgage Trust 2007-6ALT		61	CCC	0.0%	76.2%
	Countrywide HELOC 2006-H		59	CCC	0.0%	20.5%
	CWALT 2005-62		58	CCC	11.2%	57.4%
	Terwin Mortgage Trust 2005-14HE		58	BB	12.5%	26.6%
	DSLA 2005-AR5		54	CCC	2.0%	27.7%
	CSAB 2006-4		52	CCC	0.1%	39.4%
	Luminent 2006-2		52	CCC	7.2%	55.7%

	Total U.S. RMBS	$	9,376

2. 60+ day delinquencies are defined as loans that are greater than 60 days delinquent and all loans that are in foreclosure, bankruptcy or REO divided by net par outstanding.

Page 26

Assured Guaranty Municipal Corp.
Below Investment Grade Exposures (5 of 5)
As of June 30, 2010
(dollars in millions)

Structured Finance BIG Exposures Greater Than $50 Million

Name or Description				Net Par Outstanding

U.S. Structured Finance:
	Other:
	NRG Peaker			$	119	B	N/A
	Synthetic High Yield Pooled Corporate CDO				113	CCC	9.5%
	Conseco Finance MH Series 2001-2				94	BB	N/A
	Greenpoint 2000-4				74	BB	14.8%

		Total other		$	400

			Total	$	9,776
Non-U.S. Structured Finance:
	Synthetic High Yield Pooled Corporate CDO			$	75	CCC	9.5%

			Total	$	75

	Total			$	9,851

Page 27

Assured Guaranty Municipal Corp.
Largest Exposures by Sector (1 of 4)
As of June 30, 2010
(in millions)

50 Largest U.S. Public Finance Exposures

Credit Name:		Net Par Outstanding		Internal Rating ¹

New Jersey (State of)		$	2,893	AA-
Massachusetts (Commonwealth of)			2,054	AA
New York (State of)			2,010	AA
Chicago (City of) Illinois			1,684	AA-
New York (City of) New York			1,522	AA-
Massachusetts (Commonwealth of) State Sales Tax			1,472	AA
Houston Texas Water and Sewer Authority			1,461	A+
University of California Board of Regents			1,397	AA
Washington (State of)			1,371	AAA
Wisconsin (State of)			1,366	A+
Arizona (State of)			1,352	AA-
Pennsylvania (Commonwealth of)			1,330	AA-
Illinois (State of)			1,325	A+
California (State of)			1,318	A-
Port Authority of New York and New Jersey			1,294	AA-
New York City Municipal Water Finance Authority			1,293	AA+
Illinois Toll Highway Authority			1,260	AA
Atlanta Georgia Water & Sewer System			1,241	BBB+
Los Angeles California Unified School District			1,235	AA
California (State of) Department of Water Resources - Electric Power Revenue			1,209	A-
New York MTA Dedicated Tax			1,134	AA-
Broward County Florida School Board			1,101	AA-
New York MTA Transportation Authority			1,086	A
Puerto Rico (Commonwealth of)			1,026	BBB-
Denver Colorado School District No. 1			1,016	A+
Massachusetts (Commonwealth of) Water Resources			992	AA
Los Angeles California Department of Water and Power - Electric Revenue			964	AA-
Long Island Power Authority			941	A-
Chicago-O'Hare International Airport			932	A
San Diego County, CA Water Revenue Stream			915	AA
Connecticut (State of)			905	AA-
Kentucky (Commonwealth of)			892	AA-
Michigan (State of)			889	A+
New Jersey Turnpike Authority			874	A
Orlando-Orange County Expressway Authority, Florida			869	A+
Louisiana (State of) Gas and Fuel Tax			866	A
Michigan (State of) Gas & Motor Vehicle Tax			839	AA
Detroit Michigan Sewer			835	A
San Diego California Unified School District			834	AA
California State University System Trustee			822	AA-
Skyway Concession Company LLC			820	BBB
Chicago Illinois Public Schools			815	A+
Miami-Dade County Florida Aviation Authority - Miami International Airport			804	A+
Metro Washington Airport Authority			803	AA-
Oregon (State of)			786	AA-
Philadelphia (City of) Pennsylvania			783	BBB-
Hawaii (State of) Department of Hawaiian Home Lands			783	AA
Austin Texas Combined Utility System Revenue Bonds			761	AA-
Seattle Municipal Light, Washington Revenue Stream			753	A+
Florida (State of)			751	AA+

	Total top 50 U.S. public finance exposures	$	56,678

Page 28

Assured Guaranty Municipal Corp.
Largest Exposures by Sector (2 of 4)
As of June 30, 2010
(dollars in millions)

50 Largest U.S. Structured Finance Exposures

Credit Name:		Net Par Outstanding		Internal Rating ¹

Fortress Credit Opportunities I, LP.		$	1,268	AA	28.6%
Synthetic Investment Grade Pooled Corporate CDO			1,126	AAA	13.4%
Stone Tower Credit Funding			1,119	AAA	58.2%
Synthetic High Yield Pooled Corporate CDO			973	AA-	42.2%
Synthetic Investment Grade Pooled Corporate CDO			763	Super Senior	14.8%
Synthetic Investment Grade Pooled Corporate CDO			754	Super Senior	24.2%
Mizuho II Synthetic CDO			735	A	30.7%
Synthetic High Yield Pooled Corporate CDO			730	AA-	40.0%
Synthetic High Yield Pooled Corporate CDO			723	AAA	25.0%
Synthetic Investment Grade Pooled Corporate CDO			675	Super Senior	23.4%
Synthetic Investment Grade Pooled Corporate CDO			652	AAA	17.2%
MABS 2007-NCW			617	BB	33.9%
Countrywide Heloc 2006-I			568	CCC	0.0%
MASTR 2007-3			547	CCC	5.2%
Synthetic High Yield Pooled Corporate CDO			523	Super Senior	29.7%
Synthetic High Yield Pooled Corporate CDO			521	Super Senior	24.5%
Synthetic Investment Grade Pooled Corporate CDO			512	Super Senior	14.3%
Countrywide Heloc 2006-F			509	CCC	0.0%
Eastland CLO, LTD			494	Super Senior	33.0%
Synthetic High Yield Pooled Corporate CDO			492	AA	45.7%
Denali CLO VII, LTD.			470	AAA	19.9%
Avenue CLO V			448	AAA	19.8%
Synthetic Investment Grade Pooled Corporate CDO			433	AAA	10.7%
Synthetic High Yield Pooled Corporate CDO			419	AAA	23.7%
Churchill Financial Cayman			412	AAA	36.8%
Americredit 2007-B-F			403	A	21.9%
Synthetic Investment Grade Pooled Corporate CDO			399	Super Senior	14.0%
Westchester CLO			397	AAA	34.1%
Grayson CLO			396	Super Senior	23.7%
Option One 2007-FXD2			394	B	18.6%
Nomura Asset Acceptance Corp. 2007-1			388	CCC	1.6%
Synthetic Investment Grade Pooled Corporate CDO			385	Super Senior	12.0%
Synthetic High Yield Pooled Corporate CDO			383	Super Senior	36.0%
Stone Tower III			381	AAA	21.2%
Synthetic Investment Grade Pooled Corporate CDO			377	Super Senior	10.3%
Synthetic High Yield Pooled Corporate CDO			369	AAA	29.5%
Cent CDO 15 Limited			360	Super Senior	16.5%
Synthetic High Yield Pooled Corporate CDO			357	AAA	36.0%
Stone Tower CLO V			357	Super Senior	27.8%
Synthetic High Yield Pooled Corporate CDO			350	AAA	34.0%
Synthetic High Yield Pooled Corporate CDO			348	AAA	24.7%
MUIR Grove CLO			340	AAA	22.0%
KKR Financial CLO 2005-1			340	AAA	23.7%
Synthetic Investment Grade Pooled Corporate CDO			339	Super Senior	14.2%
Harborview 2006-12			336	B	10.7%
Madison Park Funding			329	AAA	23.9%
CIFC Funding 2006-1			328	AAA	22.4%
Synthetic High Yield Pooled Corporate CDO			327	AAA	30.0%
LCM VI LTD.			316	AAA	21.2%
MARM 2007-1 (FKA MASTR 2007-OA1)			307	CCC	0.0%

	Total top 50 U.S. structured finance exposures	$	25,489

1. Assured Guaranty's internal rating. The Company's ratings scale is similar to that used by the nationally recognized rating agencies; however, the ratings in the above table may not be the same as ratings assigned by any nationally recognized rating agency. The super senior category, which is not generally used by rating agencies, is used by the Company in instances where Assured Guaranty's AAA-rated exposure has additional credit enhancement due to either (1) the existence of another security rated AAA that is subordinated to Assured Guaranty's exposure or (2) Assured Guaranty's exposure benefiting from a different form of Credit enhancement that would pay any claims first in the event that any of the exposures incurs a loss and such credit enhancement, in management's opinion, causes Assured Guaranty's attachment point to be materially above the AAA attachment point.

Page 29

Assured Guaranty Municipal Corp.
Largest Exposures by Sector (3 of 4)
As of June 30, 2010
(in millions)

25 Largest Non-U.S. Exposures

Credit Name:		Net Par Outstanding

Quebec Provence		$	1,931	A
Sydney Airport Finance Company			1,271	BBB
Thames Water Utility Finance PLC			1,080	A-
Channel Link Enterprises Finance PLC			837	BBB
International AAA Sovereign Debt Synthetic CDO			821	AAA
Synthetic Investment Grade Pooled Corporate CDO			629	Super Senior
Japan Expressway Holding and Debt Repayment Agency			573	AA
Synthetic Investment Grade Pooled Corporate CDO			504	Super Senior
Artesian Finance II PLC (Southern) - Swap Policy			477	A-
Central Nottinghamshire Hospitals PLC			448	BBB
Capital Hospitals (Issuer) PLC			436	BBB-
Synthetic Investment Grade Pooled Corporate CDO			416	AAA
Integrated Accomodation Services PLC			386	BBB+
Queen Street CLO I			384	Super Senior
Synthetic Investment Grade Pooled Corporate CDO			381	Super Senior
Synthetic Investment Grade Pooled Corporate CDO			377	Super Senior
Synthetic Investment Grade Pooled Corporate CDO			375	AAA
Verbund - Wachovia wrap of securities Lease and Sublease of Hydro-Electric equipment			375	AAA
Stone Tower Credit Funding			373	AAA
Reliance Rail Finance Pty. Limited			368	BBB-
The Hospital Company (QAH Portsmouth) Limited			363	BBB
M6 Duna Autopalya Koncesszios Zartkoruen Mukodo Reszvenytarsasag			347	BBB
Plenary Health North Bay Finco Inc.			334	A
NewHospitals (St Helens & Knowsley) Finance PLC			334	BBB
Synthetic Investment Grade Pooled Corporate CDO			333	Super Senior

	Total top 25 non-U.S. exposures	$	14,153

Page 30

Assured Guaranty Municipal Corp.
Largest Exposures by Sector (4 of 4)
As of June 30, 2010
(dollars in millions)

10 Largest Residential Mortgage Servicers Exposures

Servicer:		Net Par Outstanding

Bank of America, N.A. ¹		$	5,753
American Home Mortgage Servicing, Inc.			1,717
GMAC Mortgage, LLC			1,073
Specialized Loan Servicing LLC			883
Ocwen Loan Servicing, LLC			846
Wells Fargo Bank NA			761
OneWest Bank Group LLC			673
First Tennessee Bank N.A.			444
Litton Loan Servicing LP			281
Select Portfolio Servicing, Inc.			274

	Total top 10 residential mortgage servicers exposures	$	12,705

10 Largest Healthcare Exposures

Credit Name:		Net Par Outstanding

Asante Health System		$	247	A	OR
SSM Health Care			242	A+	MO
Hospital Sisters Health Services Inc Obligated Group			203	AA-	IL
MultiCare Health System			198	A+	WA
CHRISTUS Health			192	A+	TX
Catholic Health Initiatives			188	AA	CO
Clarian Health Partners			177	A+	IN
Carolina HealthCare System			176	AA-	NC
Covenant Health Hospital			162	A-	TN
Memorial Hermann Healthcare			158	A	TX

	Total top 10 healthcare exposures	$	1,943

1. Includes Countrywide Home Loans Servicing LP.

2. Assured Guaranty's internal rating. The Company's ratings scale is similar to that used by the nationally recognized rating agencies; however, the ratings in the above table may not be the same as ratings assigned by any nationally recognized rating agency.

Page 31

Assured Guaranty Municipal Corp.
Loss and Loss Adjustment Expense ("LAE") Reserves by Segment/Type
(in millions)

		As of June 30, 2010

Financial guaranty insurance reserves by segment and type:
Gross		$	131.7
Ceded			21.0

	Net financial guaranty insurance reserves	$	110.7

Salvage and subrogation recoverable:
Gross		$	469.0
Ceded ¹			98.8

	Net salvage and subrogation recoverable	$	370.2

Credit impairment on credit derivative contracts ²:
Case gross		$	138.2
Case ceded			32.8

	Case net credit derivative reserves	$	105.4

Net loss and LAE reserves on financial guaranty insurance and credit derivative contracts, net of reinsurance ³
Net loss and LAE reserves on financial guaranty contracts net of ceded reinsurance		$	110.7
Credit impairment on credit derivative contracts			105.4

Net loss and LAE reserves		$	216.1

1. Recorded in "reinsurance balances payable, net" on the consolidated balance sheets.

2. Credit derivative assets and liabilities recorded on the balance sheet incorporate credit impairment on credit derivatives.

3. Gross of salvage and subrogation recoverable.

Page 32

Assured Guaranty Municipal Corp.
Financial Guaranty Losses Incurred and Paid
As of June 30, 2010
(in millions)

Financial Guaranty Insurance Contracts and Credit Derivatives			Total Net Par Outstanding for BIG Transactions		2Q-10 Incurred Losses			2Q-10 Paid Losses			Net Loss and LAE Reserve ¹			Net Salvage and Subrogation Assets			Expected Loss to be Expensed

First lien:
	Prime first lien		$	-	$	-		$	-		$	-		$	-		$	-
	Alt-A first lien			1,375.1		3.3			14.8			1.3			1.3			177.2
	Alt-A option ARMs			2,137.3		47.0			31.1			83.0			12.9			463.4
	Subprime first lien			2,268.5		16.0			0.8			63.5			-			82.0

		Total first lien		5,780.9		66.3			46.7			147.8			14.2			722.6
Second lien:
	Closed end seconds			911.5		(1.7	)		19.1			26.2			18.8			176.8
	HELOC			3,196.1		(6.1	)		135.5			3.6			370.3			223.3

		Total second lien		4,107.6		(7.8	)		154.6			29.8			389.1			400.1

		Total U.S. RMBS		9,888.5		58.5			201.3			177.6			403.3			1,122.7
Other structured finance				517.8		24.5			0.5			50.9			-			6.8
Public finance				1,510.3		(3.0	)		2.8			5.0			3.0			27.0

Total Financial Guaranty Direct and Reinsurance			$	11,916.6	$	80.0		$	204.6		$	233.5		$	406.3		$	1,156.5

Consolidation of VIEs				-		(24.3	)		(36.7	)		(17.4	)		(36.1	)		(90.6	)

Total			$	11,916.6	$	55.7		$	167.9		$	216.1		$	370.2		$	1,065.9

1. Includes credit impairment on credit derivative transactions.

Page 33

Assured Guaranty Municipal Corp.
Summary of Statutory Financial and Statistical Data
(dollars in millions)

						Year Ended December 31,

				YTD 2010		2009		2008			2007		2006		2005
Statutory Data
	Net income (loss)			$	76.7	$	228.2	$	(1,376.7	)	$	312.9	$	339.6	$	293.5
	Policyholders' surplus			$	843	$	909	$	711		$	1,609	$	1,543	$	1,511
	Contingency reserve				1,421		1,323		1,282			1,094		1,011		907

		Qualified statutory capital			2,264		2,232		1,993			2,703		2,554		2,418
	Unearned premium reserve				2,260		2,392		2,520			2,275		2,071		1,850
	Loss and LAE reserves				1,194		1,236		1,688			98		53		54

		Total policyholders' surplus and reserves			5,718		5,860		6,201			5,076		4,678		4,322
	Present value of installment premiums				715		874		963			1,113		828		804
	Standby line of credit/stop loss				498		498		550			550		550		550

		Total claims-paying resources		$	6,931	$	7,232	$	7,714		$	6,739	$	6,056	$	5,676

Statutory Financial Ratios
		Loss and LAE ratio			105.6%		17.4%		480.2%			16.1%		0.0%		2.1%
		Expense ratio			65.7%		48.1%		9.1%			30.0%		29.9%		27.8%

		Combined ratio			171.3%		65.5%		489.3%			46.1%		29.9%		29.9%

Other Financial Information (Statutory basis):
	Net debt service outstanding (end of period)			$	519,966	$	568,594	$	631,886		$	623,158	$	552,695	$	497,625
	Gross debt service outstanding (end of period)				731,432		755,360		834,426			858,458		765,632		686,134
	Net par outstanding (end of period)				347,713		381,148		424,393			426,512		376,456		351,398
	Gross par outstanding (end of period)				478,071		493,798		545,568			564,515		498,619		472,374
	Ceded par to all Assured Guaranty companies				63,359		32,501		32,927			30,872		37,590		44,599
	Ceded par to other companies				66,999		79,433		88,248			107,131		84,573		76,377
	Ratios:
		Par insured to statutory capital			154:1		171:1		213:1			158:1		147:1		145:1
		Capital ratio ¹			230:1		255:1		317:1			231:1		216:1		206:1
		Financial resources ratio ²			75:1		79:1		82:1			92:1		91:1		88:1
	Gross debt service written:
			Public finance	$	19,052	$	4,202	$	85,666		$	133,792	$	127,294	$	120,745
			Structured finance		-		-		5,193			57,434		48,794		40,347

	Total gross debt service written			$	19,052	$	4,202	$	90,859		$	191,226	$	176,088	$	161,092

1. The capital ratio is calculated by dividing net par and interest insured divided by qualified statutory capital.

2. The financial resources ratio is calculated by dividing net par and interest insured by total claims paying resources.

Page 34

Glossary

Below are the brief descriptions of selected types of U.S. public finance, non-U.S. public finance, U.S. structured finance and non-U.S. structured finance obligations that the Company insures and reinsures. For a more complete description, please refer to Assured Guaranty Ltd.'s Annual Report on Form 10-K for the year ended December 31, 2009.

General Obligation Bonds are full faith and credit bonds that are issued by states, their political subdivisions and other municipal issuers, and are supported by the general obligation of the issuer to pay from available funds and by a pledge of the issuer to levy ad valorem taxes in an amount sufficient to provide for the full payment of the bonds.

Tax-Backed Bonds are obligations that are supported by the issuer from specific and discrete sources of taxation. They include tax-backed revenue bonds, general fund obligations and lease revenue bonds. Tax-backed obligations may be secured by a lien on specific pledged tax revenues, such as a gasoline or excise tax, or incrementally from growth in property tax revenue associated with growth in property values. These obligations also include obligations secured by special assessments levied against property owners and often benefit from issuer covenants to enforce collections of such assessments and to foreclose on delinquent properties. Lease revenue bonds typically are general fund obligations of a municipality or other governmental authority that are subject to annual appropriation or abatement; projects financed and subject to such lease payments ordinarily include real estate or equipment serving an essential public purpose. Bonds in this category also include moral obligations of municipalities or governmental authorities.

Municipal Utility Bonds are obligations of all forms of municipal utilities, including electric, water and sewer utilities and resource recovery revenue bonds. These utilities may be organized in various forms, including municipal enterprise systems, authorities or joint action agencies.

Transportation Bonds include a wide variety of revenue-supported bonds, such as bonds for airports, ports, tunnels, municipal parking facilities, toll roads and toll bridges.

Healthcare Bonds are obligations of healthcare facilities, including community based hospitals and systems, as well as of health maintenance organizations and long-term care facilities.

Higher Education Bonds are obligations secured by revenue collected by either public or private secondary schools, colleges and universities. Such revenue can encompass all of an institution's revenue, including tuition and fees, or in other cases, can be specifically restricted to certain auxiliary sources of revenue.

Housing Revenue Bonds are obligations relating to both single and multi-family housing, issued by states and localities, supported by cash flow and, in some cases, insurance from entities such as the Federal Housing Administration.

Infrastructure Bonds include obligations issued by a variety of entities engaged in the financing of infrastructure projects, such as roads, airports, ports, social infrastructure and other physical assets delivering essential services supported by long-term concession arrangements with a public sector entity.

Investor-Owned Utility Bonds are obligations primarily backed by investor-owned utilities, first mortgage bond obligations of for-profit electric or water utilities providing retail, industrial and commercial service, and also include sale-leaseback obligation bonds supported by such entities.

Regulated Utilities Obligations are issued by government-regulated providers of essential services and commodities, including electric, water and gas utilities. The majority of the Company's international regulated utility business is conducted in the UK.

Pooled Infrastructure Obligations are synthetic asset-backed obligations that take the form of CDS obligations or credit-linked notes that reference either infrastructure finance obligations or a pool of such obligations, with a defined deductible to cover credit risks associated with the referenced obligations.

Other Public Finance. Other domestic public finance obligations insured by AGM include bonds secured by revenues and guarantees from the Federal government, financings supported by specific state or local government entity revenues and stadium financings.

Pooled Corporate Obligations are securities primarily backed by various types of corporate debt obligations, such as secured or unsecured bonds, bank loans or loan participations and trust preferred securities. These securities are often issued in "tranches," with subordinated tranches providing credit support to the more senior tranches. The Company's financial guaranty exposures generally are to the more senior tranches of these issues.

Residential Mortgage-Backed Securities ("RMBS") and Home Equity Securities are obligations backed by closed-end first mortgage loans and closed- and open-end second mortgage loans or home equity loans on one-to-four family residential properties, including condominiums and cooperative apartments. First mortgage loan products in these transactions include fixed rate, adjustable rate ("ARM") and option adjustable-rate ("Option ARM") mortgages. The credit quality of borrowers covers a broad range, including "prime", "subprime" and "Alt-A". A prime borrower is generally defined as one with strong risk characteristics as measured by factors such as payment history, credit score, and debt-to-income ratio. A subprime borrower is a borrower with

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higher risk characteristics, usually as determined by credit score and/or credit history. An Alt-A borrower is generally defined as a prime quality borrower that lacks certain ancillary characteristics, such as fully documented income.

Financial Products is the guaranteed investment contracts ("GICs") portion of the former Financial Products Business of AGMH. AGM has issued financial guaranty insurance policies on the GICs and in respect of the GICs business that cannot be revoked or cancelled. Assured Guaranty is indemnified against exposure to the former Financial Products Business by Dexia. In addition, the French and Belgian governments have issued guaranties in respect of the GICs portion of the Financial Products Business. The Financial Products Business is currently being run off.

Structured Credit Securities include program-wide credit enhancement for commercial paper conduits in the U.S., and securities issued in whole business securitizations and intellectual property securitizations. Program-wide credit enhancement generally involves insuring against the default of ABS in a bank-sponsored commercial paper conduit. Securities issued in whole business and intellectual property securitizations are backed by revenue-producing assets sold to a limited-purpose company by an operating company, including franchise agreements, lease agreements, intellectual property and real property.

Consumer Receivables Securities are obligations backed by non-mortgage consumer receivables, such as automobile loans and leases, credit card receivables and other consumer receivables.

Commercial Mortgage-Backed Securities ("CMBS") are obligations backed by pools of commercial mortgages. The collateral supporting CMBS include office, multi-family, retail, hotel, industrial and other specialized or mixed-use properties.

Commercial Receivables Securities are obligations backed by equipment loans or leases, fleet auto financings, business loans and trade receivables. Credit support is derived from the cash flows generated by the underlying obligations, as well as property or equipment values as applicable.

Insurance Securitization Securities are obligations secured by the future earnings from pools of various types of insurance/reinsurance policies and income produced by invested assets.

Other Structured Finance Securities are obligations backed by assets not generally described in any of the other described categories.

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Explanation of Non-GAAP Financial Measures:

Assured Guaranty references financial measures that are not in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Management uses these financial measures not in accordance with GAAP ("non-GAAP financial measures") and believes they assist investors and analysts in evaluating Assured Guaranty's financial results.

Assured Guaranty's presentation of non-GAAP financial measures is consistent with how analysts calculate their estimates of Assured Guaranty's financial results in their research reports on Assured Guaranty, and with how investors, analysts and the financial news media evaluate Assured Guaranty's financial results. In addition, Assured Guaranty's management and board of directors also utilize non-GAAP financial measures as a basis for determining senior management incentive compensation. By providing a calculation of Assured Guaranty's non-GAAP financial measures in Assured Guaranty's financial results press release, periodic financial reports filed with the U.S. Securities and Exchange Commission and investor presentations, investors, analysts and financial news media reporters have access to the same information that management reviews internally.

The following paragraphs describe why each non-GAAP financial measure is useful for Assured Guaranty and define such non-GAAP financial measures on a separate company basis for AGM. In each case, a reconciliation of the non-GAAP financial measure and the most directly comparable GAAP financial measure, if available, is presented. Non-GAAP financial measures should not be viewed as substitutes for their most directly comparable GAAP measures.

Operating Income: Management believes that operating income is a useful measure because it clarifies the understanding of the underwriting results of Assured Guaranty's financial guaranty insurance business, and also includes financing costs and net investment income, and enables investors and analysts to evaluate Assured Guaranty's financial results as compared to the consensus analyst estimates distributed publicly by financial databases. Operating income for AGM is defined as net income (loss) attributable to AGM, as reported under GAAP, adjusted for the following:

1): Elimination of the effects of consolidating certain financial guaranty variable interest entities (VIEs) in order to present all financial guaranty contracts on a more consistent basis of accounting, whether or not GAAP requires consolidation. GAAP requires the Company to consolidate certain VIEs that have issued debt obligations insured by the Company even though the Company does not own such VIEs and is not liable for such debt obligations.
2): Elimination of the after-tax realized gains (losses) on the Company's investments, including other than temporary impairments, and credit and interest rate-related gains and losses from sales of securities. Impairments and losses from sales of credit-impaired securities, the timing of which depends largely on market credit cycles, can vary considerably across periods. The timing of other sales that would result in gains or losses, such as interest rate-related gains or losses, is largely subject to the Company's discretion and influenced by market opportunities, as well as the Company's tax and capital profile. Trends in the underlying profitability of the Company's business can be more clearly identified without the fluctuating effects of these transactions.
3): Elimination of the after-tax non-credit impairment unrealized fair value gains (losses) on credit derivatives, which is the amount in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss. Additionally, such adjustments present all financial guaranty contracts on a more consistent basis of accounting, whether or not they are subject to derivative accounting rules.
4): Elimination of the after-tax fair value gains (losses) on the Company's committed capital securities. Such amounts are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
5): Elimination of the after-tax foreign exchange gains (losses) on revaluation of net premium receivables. Long-dated receivables constitute a significant portion of the net premium receivable balance and represent the present value of future contractual or expected collections. Therefore, the current period's foreign exchange revaluation gains (losses) are not necessarily indicative of the total foreign exchange gains (losses) that the Company will ultimately recognize.

Operating Shareholder's Equity: Management believes that operating shareholder's equity is a useful measure because it presents the equity of Assured Guaranty with all financial guaranty contracts accounted for on a more consistent basis and excluding fair value adjustments that are not expected to result in economic loss. Many investors, analysts and members of the financial news media use operating shareholder's equity as the principal financial measure for valuing Assured Guaranty Ltd.'s current share price or projected share price and also as the basis of their decision to recommend, buy or sell the Assured Guaranty Ltd. common shares. Many of Assured Guaranty's fixed income investors also use operating shareholder's equity to evaluate Assured Guaranty's capital adequacy. Operating shareholder's equity is the basis of the calculation of adjusted book value (see below). Operating shareholder's equity for AGM is defined as shareholder's equity attributable to AGM, as reported under GAAP, adjusted for the following:

1): Elimination of the effects of consolidating certain VIEs in order to present all financial guaranty contracts on a more consistent basis of accounting, whether or not GAAP requires consolidation. GAAP requires the Company to consolidate certain VIEs that have issued debt obligations insured by the Company even though the Company does not own such VIEs and is not liable for such debt obligations.

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2): Elimination of the after-tax unrealized gains (losses) on the Company's investments that are recorded as a component of accumulated other comprehensive income (AOCI) (excluding foreign exchange revaluation). The AOCI component of the fair value adjustment on the investment portfolio is not deemed economic because the Company generally holds these investments to maturity and therefore will not recognize an economic loss.
3): Elimination of the after-tax non-credit impairment unrealized fair value gains (losses) on credit derivatives, which is the amount in excess of the present value of the expected estimated economic credit losses. Such fair value adjustments are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.
4): Elimination of the after-tax fair value gains (losses) on the Company's committed capital securities. Such amounts are heavily affected by, and in part fluctuate with, changes in market interest rates, credit spreads and other market factors and are not expected to result in an economic gain or loss.

Operating return on equity ("Operating ROE"): Operating ROE represents operating income for a specified period divided by the average of operating shareholder's equity at the beginning and the end of that period. Management believes that operating ROE is a useful measure to evaluate Assured Guaranty's return on invested capital. Many investors, analysts and members of the financial news media use operating ROE to evaluate Assured Guaranty Ltd.'s share price and as the basis of their decision to recommend, buy or sell the Assured Guaranty Ltd. common shares. Quarterly and year-to-date operating ROE are calculated on an annualized basis.

Adjusted Book Value: Management believes that adjusted book value is a useful measure because it enables an evaluation of the net present value of Assured Guaranty's in force premiums and revenues in addition to operating shareholder's equity. The premiums and revenues included in adjusted book value will be earned in future periods, but actual earnings may differ materially from the estimated amounts used in determining current adjusted book value due to changes in, foreign exchange rates, refinancing or refunding activity, prepayment speeds, terminations, credit defaults and other factors. Many investors, analysts and members of the financial news media use adjusted book value to evaluate Assured Guaranty Ltd.'s share price and as the basis of their decision to recommend, buy or sell the Assured Guaranty Ltd. common shares. Adjusted book value for AGM is operating shareholder's equity for AGM, as defined above, further adjusted for the following:

1): Elimination of after-tax deferred acquisition costs. These amounts represent net deferred expenses that have already been paid or accrued that will be expensed in future accounting periods.
2): Addition of the after-tax net present value of estimated net future credit derivative revenue. See below.
3): Addition of the after-tax value of the unearned premium reserve on financial guaranty contracts in excess of net expected loss to be expensed, net of reinsurance. This amount represents the expected future net earned premiums, net of expected losses to be expensed, which are not reflected in GAAP equity.

Net present value of estimated net future credit derivative revenue: This amount represents the present value of estimated future revenue from AGM's credit derivative in-force book of business, net of reinsurance, ceding commissions and premium taxes in excess of expected losses, and is discounted at 6% (which represents AGM's tax-equivalent pre-tax investment yield on its investment portfolio). Estimated net future credit derivative revenue may change from period to period due to changes in foreign exchange rates, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation. Management believes that this amount is a useful measure because it enables an evaluation of the value of future estimated credit derivative revenue. There is no corresponding GAAP financial measure.

PVP or present value of new business production: Management believes that PVP is a useful measure because it enables the evaluation of the value of new business production for AGM by taking into account the value of estimated future installment premiums on all new contracts underwritten in a reporting period as well as premium supplements and additional installment premium on existing contracts as to which the issuer has the right to call the insured obligation but has not exercised such right, whether in insurance or credit derivative contract form, which GAAP gross premiums written and the net credit derivative premiums received and receivable portion of net realized gains and other settlement on credit derivatives ("Credit Derivative Revenues") do not adequately measure. PVP in respect of insurance and credit derivative contracts written in a specified period is defined as gross upfront and installment premiums received and the present value of gross estimated future installment premiums, in each case, discounted at 6% (AGM's tax-equivalent pre-tax investment yield on its investment portfolio). For purposes of the PVP calculation, management discounts estimated future installment premiums on insurance contracts at 6%, while under GAAP, these amounts are discounted at a risk free rate. Additionally, under GAAP, management records future installment premiums on financial guaranty insurance contracts covering non-homogeneous pools of assets based on the contractual term of the transaction, whereas for PVP purposes, management records an estimate of the future installment premiums AGM expects to receive, which may be based upon a shorter period of time than the contractual term of the transaction. Actual future net earned or written premiums and Credit Derivative Revenues may differ from PVP due to factors including, but not limited to, changes in foreign exchange rates, refinancing or refunding activity, prepayment speeds, terminations, credit defaults or other factors that affect par outstanding or the ultimate maturity of an obligation.

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		Contacts: Equity Investors: Sabra Purtill Managing Director, Investor Relations (212) 408-6044 spurtill@assuredguaranty.com Ross Aron Assistant Vice President, Investor Relations (212) 261-5509 raron@assuredguaranty.com
Assured Guaranty Municipal Corp. 31 West 52^nd Street New York, NY 10019 (212) 974-0100 www.assuredguaranty.com		Fixed Income Investors: Robert Tucker Managing Director, Fixed Income Investor Relations (212) 339-0861 rtucker@assuredguaranty.com Michael Walker Director, Fixed Income Investor Relations (212) 261-5575 mwalker@assuredguaranty.com Media: Betsy Castenir Managing Director, Corporate Communications (212) 339-3424 bcastenir@assuredguaranty.com Ashweeta Durani Vice President, Corporate Communications (212) 408-6042 adurani@assuredguaranty.com

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Exhibit 99.2

Assured Guaranty Municipal Corp. June 30, 2010 Financial Supplement

ASSURED GUARANTY LTD - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - August 13, 2010

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