Assured Guaranty Ltd. Announces Renewal of FSA's Reinsurance Contracts with Subsidiaries.

HAMILTON, Bermuda -- Assured Guaranty Ltd. (NYSE:AGO) announced today that two of its operating subsidiaries have reached an agreement with Financial Security Assurance Inc. (FSA) to renew FSA's reinsurance contracts effective January 1, 2005. Assured Guaranty Re (AGR), the company's principal reinsurance subsidiary, will reinsure the majority of the FSA business, which is in accordance with Assured Guaranty's strategic plan to operate its reinsurance business in Bermuda. In 2004, FSA's reinsurance contracts were split about equally between AGR and Assured Guaranty Corp. (AGC), a U.S.-based financial guaranty insurance company.

The contracts are subject to final documentation, which is expected to be completed in January 2005, and will take effect as of January 1, 2005. The terms and conditions of the contracts are confidential but are similar to the 2004 contracts. The actual premiums that will be assumed by AGR and AGC will depend on a variety of factors, including market conditions, pricing and the volume and types of business written by FSA in 2005.

Assured Guaranty Ltd. is a Bermuda-based holding company. Its operating subsidiaries provide credit enhancement products to the U.S. and international public finance, structured finance and mortgage markets. More information can be found at http://www.assuredguaranty.com.

Any forward-looking statements made in this press release reflect the Company's current views 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. For example, the Company's forward-looking statements could be affected by negotiations that occur in the final documentation process. The Company's forward-looking statements could also be affected by a significant reduction in the amount of reinsurance ceded by one or more of our principal ceding companies, rating agency action such as a ratings downgrade, difficulties with the execution of the Company's business strategy, contract cancellations, developments in the world's financial and capital markets, more severe losses or more frequent losses associated with products affecting the adequacy of the Company's loss reserve, changes in regulation or tax laws, the Company's dependence on customers, decreased demand or increased competition, loss of key personnel, the effects of mergers, acquisitions and divestitures, changes in accounting policies or practices, and changes in general economic conditions, as well as management's response to these factors, and other risk factors identified in the Company's filings with the Securities and Exchange Commission. 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. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.