Assured Guaranty Corp. Acquired Radian Asset
Assured Guaranty Ltd. announced that its subsidiary Assured Guaranty Corp. [AGC] acquired Radian Asset Assurance Inc. from Radian Guaranty Inc., in accordance with the agreement announced December 23, 2014.
Radian Asset has merged with and into 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.
“Assured Guaranty has added a solid book of business that is consistent with our core strategic objectives,” said Dominic Frederico, President and CEO 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,” continued Mr. Frederico.
AGC paid $804.5 million in cash, after certain adjustments, to acquire Radian Asset. As of December 31, 2014, Radian Asset’s statutory capital was approximately $1.3 billion. As of February 28, 2015, Radian Asset’s statutory net par outstanding was approximately $13.9 billion.
AGC is a wholly owned, indirect subsidiary of Assured Guaranty Ltd., a Bermuda-based holding company whose shares are publicly traded and are listed on the New York Stock Exchange under the symbol AGO.
