Assured Guaranty: Priced For A 6% ROE, With A Clear Path To 10%
Assured Guaranty is deeply undervalued, trading at 0.53x adjusted operating equity and 0.36x adjusted book value. AGO's path to re-rating hinges on achieving a sustainable 10% ROE, with every point of ROE worth ~$16 per share. Buybacks remain highly accretive at current discounts, but capital is increasingly allocated to growth strategies like annuity reinsurance.