Radian Group Inc. will transfer bond insurance subsidiary Radian Asset Assurance Inc. to Radian Guaranty Inc. in an effort to prop up the mortgage insurer, the company said yesterday.

While releasing its second-quarter earnings, Radian Group said the decision to move Radian Asset and its $960 million in statutory capital surplus represented the most effective capital raising strategy of those it considered, which included selling the bond insurer. The company hopes the plan will improve counterparties' perceptions of Radian Guaranty and the company's risk-to-capital ratio, without diluting shareholders' interests, the company said.

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