US-based insurance firm Assured Guaranty (AGC) has completed the acquisition of Radian Asset Assurance from Radian Guaranty, for around $804.5m in cash.
Under the deal, Radian Asset has merged with AGC and the assets and obligations of the company have become the assets and obligations of AGC.
Assured Guaranty president and CEO Dominic Frederico said: "Assured Guaranty has added a solid book of business that is consistent with our core strategic objectives.
"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."
Radian Asset carries out financial guaranty insurance business of Radian Group. It provides private mortgage insurance and related risk mitigation products and services to mortgage lenders in the US.
The company had an insured portfolio of about $19.4bn of net par, as of 30 September 2014 and its statutory capital was about $1.3bn, as of 31 December 2014 and statutory net par outstanding was around $13.9bn.
AGC has been licensed to carry out financial guaranty insurance business in all 50 states of the US, the District of Columbia and Puerto Rico.
Image: Assured Guaranty has acquired insurance firm Radian Asset Assurance. Photo: courtesy of Stuart Miles/ FreeDigitalPhotos.net.