Triad Guaranty And Essent Guaranty Announce Completion Of Sale Of Operating Platform
WINSTON-SALEM, N.C., Dec. 1 /PRNewswire-FirstCall/ -- Triad Guaranty Inc. (Nasdaq: TGIC) ("Triad Guaranty") and its wholly-owned subsidiary, Triad Guaranty Insurance Corporation (collectively, "Triad"), together with Essent Guaranty, Inc. ("Essent"), today announced the completion of the sale of Triad's information technology and operating platform (the "asset sale") to Essent. The asset sale was announced on October 7, 2009.
Essent, a new mortgage insurer founded to provide private capital to America's housing finance system, has acquired all of Triad's proprietary mortgage insurance software and substantially all of the supporting hardware, as well as certain other assets, in exchange for up to $30 million in cash and the assumption by Essent of certain contractual obligations related to software use. Triad has received the initial $10 million installment of the purchase price under the terms of the asset sale.
Essent is establishing its operations and technology center in Winston-Salem, North Carolina, and approximately 40 of Triad's information technology and operations employees joined Essent upon the completion of the asset sale. Essent's corporate headquarters remains in Radnor, Pennsylvania.
Effective with the completion of the asset sale, Essent has begun to provide ongoing information systems maintenance and services, customer service and policy administration support to Triad under the terms of a services agreement designed to assist Triad in managing the voluntary run-off of its existing in-force book of business. Triad retains the obligation for all risks insured under its existing insurance contracts and will continue to directly manage loss mitigation and claim activity on its insured business. Triad retains personnel in loss management, quality assurance and corporate areas to perform these functions."Essent is delighted to have closed our operating platform transaction with Triad Guaranty in a timely manner. This enables Essent to move expeditiously to obtain final approvals and prepare to begin writing mortgage insurance early in 2010," said Mark Casale, President and CEO of Essent. "The Triad team has been very supportive throughout the closing process, and our operational readiness preparations are well underway. We welcome to the Essent team the experienced mortgage insurance professionals from Triad, who will form the nucleus of our operations and technology center in Winston-Salem."
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