PHILADELPHIA, PA—Radian Guaranty Inc., themortgage insurance subsidiary of Radian Group Inc., is selling thecompany's bond insurance business for $810 million to help meetcapital requirements for remaining in the mortgage insurancebusiness.

Radian has entered into a Stock Purchase Agreement to sell 100%of the issued and outstanding shares of Radian AssetAssurance Inc., Radian's financialguaranty insurance subsidiary, to Assured GuarantyCorp., a subsidiary of Assured GuarantyLtd., for a purchase price of approximately $810 million.The purchase price is payable in cash consideration on the closingdate. The Stock Purchase Agreement allows for a complete transferof Radian Asset's $19.4 billion in net paroutstanding to Assured Guaranty Corp. as ofSeptember 30, 2014. The company expects to complete the sale ofRadian Asset in the first half of 2015, subject tosatisfaction of customary closing conditions including regulatoryapprovals.

“While Radian Asset has been an important part of our historyand our success, we are committed to streamlining our business andaligning our strategy toward the mortgage and real estate markets,”says Radian chief executive officer S.A.Ibrahim. “We look forward to simplifying Radian's focus onour core strengths, which we believe will pave the way for futuretop-line growth.”