NEW YORK (TheStreet) -- Shares of Radian Group Inc. (RAD) are higher by 3.07% to $16.78 at the start of trading on Tuesday, after the company announced it has entered into an agreement to sell its financial guaranty insurance subsidiary, Radian Asset Assurance Inc., to Assured Guaranty Corp. (AGO) for approximately $810 million.
"While Radian Asset has been an important part of our history and our success, we are committed to streamlining our business and aligning our strategy toward the mortgage and real estate markets," Radian CEO S.A. Ibrahim said.
"This agreement marks an important milestone as we prepare for finalization of the proposed PMIERs in 2015. While we expect to fully comply, the sale of Radian Asset will help to accelerate our ability to do so," Ibrahim added.
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The company expects the deal to close during the first half of 2015.
Separately, TheStreet Ratings team rates RADIAN GROUP INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate RADIAN GROUP INC (RDN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."