Radian implements mortgage insurance capital plan MortgagePress.comRandian, mortgage insurance, Radian Asset Assurance, S.A. Ibrahim, Sherman Financial
Radian Group Inc. has announced the completion of the primary
component of its capital plan, providing non-dilutive capital
support to its mortgage insurance business. Radian has contributed
its ownership interest in Radian Asset Assurance Inc. (Radian
Asset), its principal financial guaranty subsidiary, to Radian
Guaranty, the company's principal mortgage insurance
subsidiary.
"We reiterate our commitment to our mortgage insurance business
with the contribution of a company with $960 million in statutory
surplus, which is part of approximately $3 billion of claims-paying
resources," stated S.A. Ibrahim, chief executive officer of Radian
Group. "Our mortgage insurance business remains our primary focus
and we believe the contribution of Radian Asset will provide a
substantial amount of capital over time. The strength of this
internally-sourced capital plan differentiates us within the
industry and best positions us for the long term."
Radian's ownership interest in Sherman Financial recently
increased to approximately 29 percent from 22 percent. Radian
expects Sherman to continue to provide it with a meaningful
dividend contribution and to serve as a potential source of
additional capital. Radian received $19.5 million in dividends from
Sherman in the first half of 2008.
To allow for this transfer, Radian completed the previously
announced amendment to its credit facility, reducing the
outstanding amount and commitment size of the facility to $150
million.
For more information, visit www.radian.biz.
