To make a $100 million settlement payment to Ambac, including a refund of unearned premium reserves and payment of statutory loss reserves
Radian Asset Assurance (Radian Asset), financial guaranty insurance subsidiary of Radian Group, has entered into a Commutation and Release Agreement with Ambac Assurance Corporation and Ambac Assurance UK Limited (Ambac). The deal is to commute $9.8 billion of Radian Asset’s reinsurance portfolio assumed from Ambac.
The agreement provides Radian Asset to make a $100 million settlement payment to Ambac, including a refund of unearned premium reserves and payment of statutory loss reserves.
The commutation, which represents 99.7% of the insured portfolio previously assumed from Ambac, decreases Radian Asset’s total insured portfolio by 10%, (including a decrease of 42% in Radian Asset’s exposure to mortgage-backed securities).
Radian Group, a Philadelphia-based insurer, provides private mortgage insurance and related risk management products and services to mortgage lenders through its principal operating subsidiary, Radian Guaranty.