Assured Guaranty Corp. Completes Acquisition of Radian Asset Assurance Inc.
Public Company Information:
HAMILTON, Bermuda--(BUSINESS WIRE)--Assured Guaranty Ltd. (NYSE:AGO) (together with its subsidiaries, Assured Guaranty), the leading provider of financial guaranty insurance, announced that its subsidiary Assured Guaranty Corp. (AGC) today acquired Radian Asset Assurance Inc. (Radian Asset) 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.
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from adverse developments in the acquired portfolio, other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in Assured Guaranty’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of April 1, 2015. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
AGC is a Maryland-domiciled insurance company regulated by the Maryland Insurance Administration and licensed to conduct financial guaranty insurance business in all 50 states of the United States, the District of Columbia and Puerto Rico. AGC commenced operations in 1988. 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. The operating subsidiaries of Assured Guaranty Ltd. provide credit enhancement products to the U.S. and international public finance, infrastructure and structured finance markets. More information on Assured Guaranty Ltd. and its subsidiaries can be found at AssuredGuaranty.com.