Radian Completes Commutation of $827 Million Reinsurance Portfolio to FGIC
Reduces total reinsurance portfolio by 13%
PHILADELPHIA--(BUSINESS WIRE)--Jan. 14, 2013--
Radian Group Inc. today announced that on January 9, 2013, its financial
guaranty insurance subsidiary, Radian Asset Assurance Inc., completed
the commutation of its remaining reinsurance risk from Financial
Guaranty Insurance Company (FGIC). As previously reported when the
companies entered into the agreement, the outstanding par reinsured by
Radian Asset from FGIC was $827 million as of September 30, 2012.
Radian Asset made the expected commutation payment of $52.4 million to
FGIC following approval of the transaction by the Supreme Court of the
State of New York. This payment primarily represents existing loss
reserves and unearned premium reserves for the portfolio, and therefore
will not have a material impact on Radian’s consolidated financial
statements or Radian Asset’s statutory capital position. The commuted
portfolio represents 13 percent of Radian Asset’s total reinsurance
exposure as of September 30, 2012.
“We continue to make important strides in reducing Radian’s financial
guaranty exposure, including many of the riskiest segments of the
portfolio,” stated Chief Executive Officer S.A. Ibrahim. “We are pleased
to successfully complete this latest transaction, which reduces our
total reinsurance portfolio by 13 percent and supports our company’s
capital management strategy.”
About Radian
Radian Group Inc. (NYSE: RDN), headquartered in Philadelphia, provides
private mortgage insurance and related risk mitigation products and
services to mortgage lenders nationwide through its principal operating
subsidiary, Radian Guaranty Inc. These services help promote and
preserve homeownership opportunities for homebuyers, while protecting
lenders from default-related losses on residential first mortgages and
facilitating the sale of low-downpayment mortgages in the secondary
market.
Forward-looking Statements
All statements in this press release that address events, developments
or results that we expect or anticipate may occur in the future are
“forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934 and the United States (“U.S.”) Private Securities Litigation Reform
Act of 1995. In most cases, forward-looking statements may be identified
by words such as “anticipate,” “may,” “will,” “could,” “should,”
“would,” “expect,” “intend,” “plan,” “goal,” “contemplate,” “believe,”
“estimate,” “predict,” “project,” “potential,” “continue,” or the
negative or other variations on these words and other similar
expressions. These statements, which may include, without limitation,
projections regarding our future performance and financial condition,
are made on the basis of management’s current views and assumptions with
respect to future events. Any forward-looking statement is not a
guarantee of future performance and actual results could differ
materially from those contained in the forward-looking information. As a
result, these statements speak only as of the date they were made, and
we undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For more information regarding risks and uncertainties that we face, you
should refer to the Risk Factors detailed in Item 1A of Part I of our
Annual Report on Form 10-K for the year ended December 31, 2011 and in
Item 1A of Part II of our Quarterly Reports on Form 10-Q filed during
2012, and in subsequent reports and registration statements filed from
time to time with the Securities and Exchange Commission.
Source: Radian Group Inc.
Radian Group Inc.
Emily Riley, 215-231-1035
emily.riley@radian.com
