MGIC Investment Corporation and Radian Group Inc. said in joint statements today that they have abandoned a previously-announced merger of the two mortgage insurance giants. The merger, first announced in February, would have formed one of the nation's largest mortgage and credit risk insurance conglomerates. Here is MGIC's press statement; and here is Radian's press statement. From the statement:
MGIC Investment Corporation and Radian Group Inc. jointly announced today that they have entered into an agreement that terminates their pending merger. The companies cited as the rationale for doing so their mutual agreement that current market conditions have made combining the companies significantly more challenging. Both MGIC and Radian believe it is in their best interests to remain independent companies at this time. All outstanding litigation between the companies will be withdrawn. Neither party made a payment to the other in connection with the termination.
The merger had been cast in doubt since both insurers disclosed that their joint investments in Credit-Based Asset Servicing and Securitization (C-BASS) would need to be written off.