Radian Group today announced it plans on using excess capital in bond insurer subsidiary Radian Asset Assurance to prop up its mortgage insurance business, Radian Guaranty.

While releasing its second quarter earnings, Radian Group said Radian Asset has $960 million in statutory surplus, and it will contribute its investment in the bond insurer to Radian Guaranty. Radian Asset recently declared an ordinary dividend of $107.5 million to Radian Group, which then contributed $100 million to Radian Guaranty.

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