Radian Group to acquire Inigo for $1.7B in a primarily all-cash transaction

Radian Group (RDN) announced that it has entered into a definitive agreement to acquire Inigo Limited, a highly profitable Lloyd’s specialty insurer, for $1.7B in a primarily all-cash transaction. The transaction will be funded from Radian’s available liquidity sources and excess capital from its subsidiaries. This strategic acquisition will mark an important step in Radian’s transformation from a leading U.S. mortgage insurer to a global, diversified multi-line specialty insurer, significantly expanding the company’s product expertise and capabilities and optimizing the deployment of its excess capital. The acquisition values Inigo at 1.5 times its projected tangible equity at the end of 2025. The acquisition is expected to deliver mid-teens percentage accretion to earnings per share and approximately 200 basis points accretion to return on equity in the first full year after closing. Radian expects the transaction will double its total annual revenue, providing flexibility to deploy capital across multiple insurance lines through various business cycles. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other closing conditions.