Radian Drops Reinsurance Coverage To Ambac

Law360, New York (July 22, 2009, 2:53 PM EDT) -- Mortgage insurer Radian Group Inc. has reached an agreement with bond insurer Ambac Assurance Corp. to drop reinsurance coverage for a $9.8 billion portfolio of Ambac mortgage-backed securities business.

Philadelphia-based Radian announced the agreement on Tuesday in filings submitted to the U.S. Securities and Exchange Commission, saying it would be commuting its reinsurance coverage in exchange for a $100 million settlement payment to Ambac.

Radian also agreed to pay Ambac about $4.3 million for outstanding claims, according to a settlement agreement filed with the SEC. The...
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