Bermuda-based Assured Guaranty has completed its acquisition of Radian Asset Assurance from Radian Guaranty.
Radian Asset has merged with and into Assured’s subsidiary Assured Guaranty Corp (AGC), with AGC as the surviving company. As a result, the assets and obligations of Radian Asset have become the assets and obligations of AGC.
AGC paid $804.5 million in cash to acquire Radian Asset. As of December 31, 2014, Radian Asset’s statutory capital was approximately $1.3 billion.
“Assured Guaranty has added a solid book of business that is consistent with our core strategic objectives,” said Dominic Frederico, president and chief executive officer of Assured Guaranty. “We are pleased to have acquired Radian Asset and to extend AGC’s protection to Radian Asset’s insured bondholders.
“The acquisition increases AGC’s capital base and policyholders’ surplus, and the transaction is accretive to Assured Guaranty’s earnings, operating shareholders’ equity and adjusted book value.”