Bond insurer Assured Guaranty posted a profit in the second quarter of 2012.

Operating income declined to $114 million from $143.4 million in the 2Q11, a 20.5% decline. On a per share basis in the same period operating income declined to $0.61 from $0.76.

Net income improved to $376.5 million in the second quarter of 2012 from a net loss of $43.1 million in the second quarter of 2011. Net income per share was $2.01 compared to a net loss per share of $0.23 in the second quarter of 2011.

Net income is a Generally Accepted Accounting Principles measure and operating income is not GAAP measure. However, some analysts say that operating income is a better measure of performance for bond insurers.

Moody's Investors Service put Assured's 'Aa3' rating on review for a downgrade on March 20. Some observers say this has affected Assured's business.

Assured currently has two platforms: Assured Guaranty Corp. (AGC) and Assured Guaranty Municipal (AGM), which is a muni-only insurer previously named Financial Security Assurance. AGC is a diversified insurer that writes policies for structured finance products and municipal bonds.

In terms of structured finance, the insurer said in a fixed-income investor presentation for 1Q12 that it closed the Worcestershire Royal Hospital deal in 4Q11, describing it as its first significant international deal in more than two years and a prototype for other guarantor replacement offerings.

As of the middle of Friday afternoon. Assured's stock was up 2.7% to $12.71 from Thursday's close.

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