The biggest U.S. private mortgage insurer, Radian Group Inc, is close to a sale of its financial guaranty business to Assured Guaranty Ltd for around $800 million, according to people familiar with the matter. A deal could be announced in the next few days, the people said on Wednesday, asking not to be identified because the negotiations are confidential. Representatives for Radian and Assured Guaranty did not respond to requests for comment.Radian's financial guaranty business provides insurance and reinsurance of municipal bonds, structured finance transactions and other credit-based risks.Radian has stopped underwriting new business in the unit, and has been working with investment bank Goldman Sachs Group Inc to explore its sale since last summer.Bermuda-based Assured Guaranty, a direct competitor in the financial guarantee business, has long been a favorite to win the business, the sources said.
Assured Guaranty Ltd. (AGL) is a Bermuda-based holding company. Shares of AGO fell by 1.89% or $-0.49/share to $25.50. In the past year, the shares have traded as low as $20.02 and as high as $26.78. On average, 1692000 shares of AGO exchange hands on a given day and today's volume is recorded at 1290119.
The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 2.48% or $-4.89/share to $192.00. In the past year, the shares have traded as low as $151.65 and as high as $198.06. On average, 2892260 shares of GS exchange hands on a given day and today's volume is recorded at 6506655.
Radian Group Inc. is a credit enhancement company with a primary strategic focus on domestic residential mortgage insurance on first-lien mortgage loans (first-liens). Shares of RDN fell by 3.43% or $-0.6/share to $16.89. In the past year, the shares have traded as low as $12.18 and as high as $17.50. On average, 2501710 shares of RDN exchange hands on a given day and today's volume is recorded at 3674184.
Source
