Financial guaranty insurance Assured Guaranty is set to acquire Radian Asset Assurance, which conducts the financial guaranty business of Radian Group.
The transaction, which will see Radian acquired for $810 million, is expected to be completed in the first half of 2015.
“We are pleased to enter into this mutually beneficial transaction with Radian. The acquisition will strengthen Assured Guaranty’s franchise by adding a solid book of business that is consistent with our strategic objectives and will also increase AGC’s capital base and policyholders’ surplus,” said Dominic Frederico, president and chief executive officer of Assured Guaranty.
“We expect the transaction to be accretive to Assured Guaranty’s earnings per share, operating shareholders’ equity and adjusted book value. Additionally, the acquisition should enhance the value and market liquidity of the bonds insured by Radian Asset,” he added.
Assured Guaranty, Bermuda, Radian Asset Assurance