PHILADELPHIA, Aug. 7 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE:
RDN) today issued the following statement in response to a press release
issued by MGIC Investment Corporation (NYSE: MTG):
We do not believe the impairments related to C-BASS LLC affect MGIC's
obligation to go forward with the merger agreement. We note that both MGIC
and Radian own 46% of C-BASS, and both companies announced impairments
last week. Radian is not aware of any developments that would impact
MGIC's obligation to close the merger.
Importantly, Radian has fully complied with all of its obligations under
the merger agreement. Stockholders of both companies have already approved
the merger, and we continue to believe that the transaction is in their
best interests. In addition, nearly all regulatory approvals have been
received. We remain committed to the transaction, and look forward to
completing it as promptly as possible.
Radian Group Inc. is a global credit risk management company
headquartered in Philadelphia with significant operations in New York and
London. Radian develops innovative financial solutions by applying its core
mortgage credit risk expertise and structured finance capabilities to the
credit enhancement needs of the capital markets worldwide, primarily
through credit insurance products. The company also provides credit
enhancement for public finance and other corporate and consumer assets on
both a direct and reinsurance basis and holds strategic interests in
credit-based consumer asset businesses. Additional information may be found
at http://www.radian.biz .
All statements made in this news release that address events or
developments that we expect or anticipate may occur in the future are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934
and the U.S. Private Securities Litigation Reform Act of 1995. These
statements are made on the basis of management's current views and
assumptions with respect to future events. The forward-looking statements,
as well as Radian's prospects as a whole, are subject to risks and
uncertainties, including the following: changes in general financial and
political conditions such as extended national or regional economic
recessions (or expansions), changes in housing demand or mortgage
originations, changes in housing values, population trends and changes in
household formation patterns, changes in unemployment rates, changes or
volatility in interest rates, consumer confidence, or changes in credit
spreads; changes in investor perception of the strength of private mortgage
insurers or financial guaranty providers; risks faced by the businesses,
municipalities or pools of assets covered by Radian's insurance; the loss
of a customer with whom Radian has a concentration of its insurance in
force or the influence of large customers; increased severity or frequency
of losses associated with certain Radian products that are riskier than
traditional mortgage insurance and financial guaranty insurance policies;
material changes in persistency rates of Radian's mortgage insurance
policies; changes in Radian's credit ratings or the insurance
financial-strength ratings assigned by the major ratings agencies to
Radian's operating subsidiaries; heightened competition from other
insurance providers and from alternative products to private mortgage
insurance and financial guaranty insurance; changes in the charters or
business practices of Fannie Mae and Freddie Mac; the application of
federal or state consumer, lending, insurance and other applicable laws and
regulations, or unfavorable changes in these laws and regulations or the
way they are interpreted, including: (i) the possibility of private
lawsuits or investigations by state insurance departments and state
attorneys general alleging that services offered by the mortgage insurance
industry, such as captive reinsurance, pool insurance and contract
underwriting, are violative of the Real Estate Settlement Procedures Act
and/or similar state regulations (particularly in light of inquiries that
we and other mortgage insurers have received from the New York Insurance
Department and public reports that other state insurance departments are
investigating or planning to investigate captive reinsurance arrangements
used in the mortgage insurance industry) or (ii) legislative and regulatory
changes affecting demand for private mortgage insurance or financial
guaranty insurance; the possibility that we may fail to estimate accurately
the likelihood, magnitude and timing of losses in connection with
establishing loss reserves for our mortgage insurance or financial guaranty
businesses or to estimate accurately the fair value amounts of derivative
financial guaranty contracts in determining gains and losses on these
contracts; changes in accounting guidance from the SEC or the Financial
Accounting Standards Board regarding income recognition and the treatment
of loss reserves in the mortgage insurance or financial guaranty
industries; changes in claims against mortgage insurance products resulting
from the aging of Radian's mortgage insurance policies; vulnerability to
the performance of Radian's strategic investments; changes in the
availability of affordable or adequate reinsurance for our non-prime risk;
legal and other limitations on the amount of dividends we may receive from
our insurance subsidiaries; international expansion of our mortgage
insurance and financial guaranty businesses into new markets and risks
associated with our international business activities; and risks and
uncertainties associated with our proposed merger with MGIC Investment
Corporation, including, without limitation: the ability to complete the
transaction on the proposed terms and schedule; the risk that the two
companies and their businesses will not be integrated successfully;
customer attrition and disruption from the transaction making it more
difficult to maintain relationships with customers, employees or other
business relationships; the risk that the cost savings and any other
synergies from the transaction may not be fully realized or may take longer
to realize than expected; the risk that potential sales of assets in
connection with the merger may negatively impact the financial performance
of the combined company; and the possibility that the merger may not be
completed, whether due to the failure to receive the requisite regulatory
approvals or otherwise, which may have an adverse effect on our customers,
employees and other business relationships, and may have a materially
adverse impact on our financial results and prospects. For more information
regarding these risks and uncertainties, as well as certain additional
risks that we face, investors should refer to the risk factors detailed in
Part I, Item 1A of our annual report on Form 10-K for the year ended
December 31, 2006 and in the joint proxy statement/prospectus for our 2007
annual meeting. We caution you not to place undue reliance on these
forward-looking statements, which are current only as of the date of this
news release. Radian does not intend to, and disclaims any duty or
obligation to, update or revise any forward-looking statements made in this
news release to reflect new information, future events or for any other
reason.
SOURCE Radian Group Inc.
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Related links:
http://www.radian.biz
CONTACT:
Investors: Mona Zeehandelaar,
+1-215-231-1674, mona.zeehandelaar@radian.biz, or Media: Michelle
Davidson, +1-215-231-1325, +1-215-260-6760,
michelle.davidson@radian.biz, both of Radian Group Inc.; or Steve
Frankel, Jeremy Jacobs, of Joele Frank, Wilkinson Brimmer
Katcher, +1-212-355-4449, for Radian Group Inc.
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