The biggest U.S. private mortgage insurer, Radian Group Inc., is close to a sale of its financial guaranty business to Assured Guaranty Ltd. for around $800 million, Reuters reported yesterday. Radian's financial guaranty business provides insurance and reinsurance of municipal bonds, structured finance transactions and other credit-based risks. Radian has stopped underwriting new business in the unit, and has been working with investment bank Goldman Sachs Group Inc. to explore its sale since last summer. Bermuda-based Assured Guaranty, a direct competitor in the financial guarantee business, has long been a favorite to win the business.
