Dexia SA

, based in Paris and Brussels, plans to sell FSA Holding, its U.S. bond insurance business, to

Assured Guaranty

(AGO) - Get Report

for $722 million.

The bank said Friday its financial products activity is excluded from the transaction.

Under the terms of the deal, Dexia will receive $361 million in cash and 44.6 million newly issued Assured Guaranty shares.

Dexia, meanwhile, reported it swung to a third-quarter loss of 1.5 billion euros, "reflecting a major negativeimpact from the financial crisis" of 2.2 billion euros. Last year, earnings were 439 million euros.

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