Updated from 8:09 a.m. EDT

General Electric

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confirmed an agreement to sell its bond-insurance unit for about $2.2 billion to a group led by mortgage-backer

PMI Group

(PMI)

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.

"This transaction is consistent with GE Insurance's strategy to focus its global operations on key segments, while allowing GE to selectively re-deploy capital in new business lines it intends to grow rapidly," GE said in a release. "Importantly for FGIC's customers, the proposed deal positions the company to maintain its triple-A ratings."

The transaction will give PMI with a little over 40% of the unit, which is called Financial Guaranty Insurance Co. Two private equity firms, Blackstone Group and Cypress Group, will each end up with 20% stakes.

Bank of America

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will own about 7% of the company, which mainly insures corporate and municipal bonds.

GE will receive cash proceeds of $1.86 billion, including a pre-closing dividend of $260 million. GE will retain preferred stock of $235 million and less than 5% of the common stock.