CMAC and Amerin To Merge

A merger between CMAC Investment Corp., Philadelphia, and Amerin Corp., Chicago will create the nation's second largest mortgage insurer, the two companies have reported.For each common stock share of Amerin, shareholders will receive 0.5333 shares of CMAC common stock. Frank P. Filipps, president and chief executive of CMAC will be chairman and chief executive of the new mortgage insurance giant, which will be based in Philadelphia. Roy J. Kasmar, Amerin's president and chief operating officer, will hold the same position after the merger; Gerald L. Friedman, Amerin's chairman and chief executive, will be chairman emeritus; and Herbert Wender, CMAC's chairman, will be chairman of the executive committee of the board of directors. On a pro forma basis, the two merged companies will have a 19.1% market share, with new insurance written of $25.9 billion and net income of $105.2 million for the first nine months of this year. The merged entity will announce its new name when the deal closes.