Assured Guaranty Announces Three-Part Transaction with Radian Asset

Assured Guaranty Ltd.

announced today that Assured Guaranty Municipal Corp. (“AGM”) has entered into an agreement to reassume $12.9 billion of par it had previously ceded to Radian Asset Assurance Inc. (“Radian Asset”). Also, through Assured Guaranty Corp. (“AGC”), Assured Guaranty has agreed to reinsure approximately $1.8 billion of Radian Asset public finance par. In addition, Assured Guaranty has agreed to acquire Municipal and Infrastructure Assurance Corporation (“MIAC”), which is licensed to provide financial guaranty insurance and reinsurance in 38 U.S. jurisdictions including the District of Columbia. The parties anticipate the reassumption and reinsurance will be completed this week; the purchase of MIAC is subject to regulatory approval and is expected to close in the first quarter of 2012. “We are pleased to enter into this transaction with Radian Asset, as this shows our continued commitment to building a stronger franchise and repositioning the financial guaranty industry,” said Dominic Frederico, President and CEO of Assured Guaranty. “This transaction helps us achieve success on several strategic fronts, including increasing our adjusted book value per share by approximately $0.37 based on expected intercompany reinsurance amounts, and increasing the size of our insured portfolio by approximately $15 billion. The acquisition of MIAC enhances our flexibility to respond to changes in the financial guaranty industry.”