Radian Group Inc., the third-largest U.S. mortgage insurer, said that as a result of credit rating downgrades and market conditions, its asset assurance unit will stop selling new financial guarantee insurance.

Business production in all lines fell "significantly" during the first three quarters and "is likely to remain minimal for the foreseeable future, if not permanently," the Philadelphia company said Friday in a regulatory filing.

Radian said it has discontinued writing financial guaranty insurance "other than that necessary to commute, restructure, hedge, or otherwise mitigate losses or reduce exposure in our existing portfolio."

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