Radian Makes Investment in Primus Guaranty
March 15, 2002
PHILADELPHIA, March 14 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE: RDN) today announced that the company made a $20 million investment in Primus Guaranty, Ltd., whose subsidiary, Primus Financial Products, Inc., is a wholesale provider of investment-grade credit risk protection to derivatives dealers and credit portfolio managers. Primus Financial Products, rated AAA by Standard and Poor's and Aaa by Moody's, invests in credit risk by selling protection to its clients in the form of credit default swaps.
"Our investment in Primus further advances Radian's diversification strategy and leverages our credit enhancement expertise," said Radian Chairman and Chief Executive Officer Frank P. Filipps. "Primus' experienced management team, highly disciplined approach, superior ratings and focused strategy give them a unique position in the credit derivatives market, and provide Radian with greater insight and additional access to the financial guaranty markets."
In addition to the direct investment in Primus Guaranty, Radian Reinsurance Inc., a subsidiary of Radian Group, will provide a $115 million excess of loss insurance policy to Primus Financial Products.
Source: Radian Group Inc.