Assured Guaranty Completes Acquisition of Radian

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Assured Guaranty Corp. completed the acquisition of Radian Asset Assurance Inc., expanding its municipal bond franchise.

Under an agreement reached in December, Radian Asset has merged with and into AGC, with AGC as the surviving company, Assured said in a statement Wednesday.

"Assured Guaranty has added a solid book of business that is consistent with our core strategic objectives," said Dominic Frederico, Assured's president and chief executive officer. "We are pleased to have acquired Radian Asset and to extend AGC's protection to Radian Asset's insured bondholders."

AGC paid $804.5 million in cash, after certain adjustments. As of Dec. 31, Radian Asset's statutory capital was about $1.3 billion. As of Feb. 28, Radian Asset's statutory net par outstanding was roughly $13.9 billion.

"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," Frederico said.

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