Radian Group has agreed to acquire Inigo Limited, a Lloyd’s speciality insurer, for $1.7bn, primarily in cash.  

The funding for this acquisition will come from Radian’s available liquidity and surplus capital from its subsidiaries. 

The company’s strategy with this purchase is to expand its expertise and capabilities in the insurance sector, particularly in the US mortgage insurance market, and to efficiently utilise its excess capital. 

Set up in 2020, Inigo via Lloyd’s Syndicate 1301 underwrites a varied portfolio of speciality insurance to large commercial and industrial clients.  

The deal values Inigo at 1.5 times its estimated tangible equity at the end of 2025.  

Radian expects the acquisition to deliver an increase to its earnings per share and return on equity in the first year after the transaction is completed. 

The acquisition is projected to double Radian’s total annual revenue, offering the company flexibility to allocate capital across multiple lines of insurance through various economic cycles. 

The current leadership of Inigo, including CEO Richard Watson, chief underwriting officer Russell Merrett, and chief financial officer Stuart Bridges, will remain at the helm, guiding the Inigo team under the new ownership. 

Watson said: “We are delighted to have found Radian. From our first meeting, there was a clear cultural match and a shared conviction around the importance of data, and how we can use it to benefit the customers we serve.  

“Our respective portfolios are very complementary, with no business overlaps. As we build bigger and deeper relationships with our customers, we welcome the further diversification and access to the stronger capital base that Radian provides.” 

The completion of the transaction is anticipated in the first quarter of 2026, subject to regulatory approvals and satisfaction of other customary closing conditions.  

The final purchase price will be based on Inigo’s tangible equity before the closing, with adjustments, but will not exceed $1.7bn. 

A portion of the consideration for the purchase will be in the form of Radian shares, which will be offered to Inigo’s senior management as part of an equity rollover arrangement. 

Radian CEO Rick Thornberry stated: “By bringing together Inigo’s strong performance with our capital strength, we are diversifying beyond our traditional mortgage insurance market and expanding into the large and attractive Lloyd’s global speciality market.  

“Most importantly, we are excited to partner with the talented Inigo team, fuelled by a shared commitment toward innovation, underwriting expertise, data science, technology and workplace culture. Together, we are well-positioned to deliver even greater value to our combined stakeholders.” 

Simultaneously, Radian has announced plans to divest its businesses in the ‘All Other’ category, which includes Mortgage Conduit, Title, and Real Estate Services.  

This divestiture is expected to be completed by the third quarter of 2026.