Assured Guaranty Ltd. (AGO) Earnings: An Early Look

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But Assured Guaranty has also seen some recent good news, having won a huge case earlier this month that will have wide-ranging implications throughout the industry. The company sued Flagstar Bancorp Inc (NYSE:FBC) over alleged misrepresentations of Flagstar loans used to create mortgage-backed securities that Assured Guaranty insured. A positive ruling led to a $90 million award for Assured Guaranty. That’s obviously good news for the company, but it means even more for fellow insurer MBIA Inc. (NYSE:MBI), which now hopes to win its own much-larger lawsuit against Bank of America Corp (NYSE:BAC) over similar allegations. B of A already settled its own dispute with Assured Guaranty last year.

In its earnings report, watch closely for Assured Guaranty’s plans to take advantage of steadily improving conditions in the housing industry. With its recent 11% dividend boost, the company is clearly optimistic about its future, and Assured Guaranty looks like the high-quality player in an industry that’s rebounding.

The article Assured Guaranty Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger owns warrants on Bank of America. You can follow him on Twitter: @DanCaplinger. The Motley Fool owns shares of Bank of America.

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