Radian Successfully Completes Sale of Financial Guaranty Subsidiary to Assured Guaranty
April 01 2015 - 4:15PM
Business Wire
Radian Guaranty Inc., the mortgage insurance subsidiary of
Radian Group Inc. (NYSE: RDN), announced today that it has
completed the previously announced sale of Radian Asset Assurance
Inc., Radian’s financial guaranty insurance subsidiary, to Assured
Guaranty Corp., a subsidiary of Assured Guaranty Ltd. (NYSE: AGO).
After consideration of transaction-related expenses, net proceeds
were $789 million.
Radian Chief Executive Officer S.A. Ibrahim said, “The sale of
our financial guaranty subsidiary marks an important milestone for
Radian as we simplify our focus on our core strengths and position
our company for future top-line growth. The successful completion
of the sale will also help to accelerate our ability to comply with
the final PMIERs.”
About Radian
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia,
provides private mortgage insurance and related risk mitigation
products and services to mortgage lenders nationwide through its
principal operating subsidiary, Radian Guaranty Inc. These services
help promote and preserve homeownership opportunities for
homebuyers, while protecting lenders from default-related losses on
residential first mortgages and facilitating the sale of
low-downpayment mortgages in the secondary market. Additional
information may be found at www.radian.biz.
Forward-Looking Statements
Some of the statements in this press release may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities and
Exchange Act of 1934 and the United States Private Securities
Litigation Reform Act of 1995. Words such as “will,” “expects,”
“believes,” “projects,” “estimates,” “anticipates” and similar
expressions are used to identify these forward-looking statements.
These forward-looking statements, which may include without
limitation, estimates and projections regarding our future
performance and financial condition, are made on the basis of
management’s current views and assumptions with respect to future
events. Any forward-looking statement is not a guarantee of future
performance and actual results could differ materially from those
contained in the forward-looking statement. The forward-looking
statements, as well as our prospects as a whole, are subject to
risks and uncertainties that could cause actual results to differ
materially from those set forth in the forward-looking statement,
including: Radian Guaranty’s ability to comply with the financial
requirements of the final Private Mortgage Insurer Eligibility
Requirements (PMIERs) which, based on the proposed PMIERs, may
require us to contribute a substantial portion of our holding
company cash and investments to Radian Guaranty, and could depend
on our ability to, among other things, successfully leverage
options such as commutations or external reinsurance for a portion
of our mortgage insurance risk in force in a manner that provides
capital relief compliant with the PMIERs. Contributing a
substantial portion of our holding company cash and investments to
Radian Guaranty would leave Radian Group with less liquidity to
satisfy its obligations, and we may be required or we may decide to
seek additional capital by incurring additional debt, by issuing
additional equity, or by selling assets, which we may not be able
to do on favorable terms, if at all. The ultimate form of the
PMIERs and the timeframe for their implementation remain
uncertain.
The forward-looking statements speak only as of the date they
were made, and we undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise. We operate in a changing
environment. New risks emerge from time to time and it is not
possible for us to predict all risks that may affect us. For more
information regarding these risks and uncertainties as well as
certain additional risks that we face, you should refer to the Risk
Factors detailed in Item 1A of Part I of the Company’s Annual
Report on Form 10-K for the year ended December 31, 2014 and
subsequent reports and registration statements filed from time to
time with the Securities and Exchange Commission.
Radian Group Inc.Emily Riley,
215-231-1035emily.riley@radian.biz
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