Radian Completes Acquisition of Inigo, Becoming a Global Multi-Line Specialty Insurer

Core Viewpoint - Radian Group Inc. has completed the acquisition of Inigo Limited, marking its transition from a U.S. private mortgage insurer to a global multi-line specialty insurer, enhancing its product expertise and capital deployment capabilities [1][2][4]. Acquisition Details - The acquisition was finalized for a purchase price of $1.67 billion, with Inigo's estimated tangible equity at year-end 2025 being $1.16 billion, resulting in a net purchase price multiple of approximately 1.4 times tangible equity [4]. - The transaction was funded through Radian's available liquidity and excess capital from its mortgage insurance subsidiary, Radian Guaranty [4]. Financial Impact - The acquisition is projected to deliver mid-teens percentage accretion to Radian's earnings per share and approximately 200 basis points accretion to return on equity in 2026 [5]. - Radian anticipates that the transaction will double its total annual revenue and provide flexibility for capital deployment across various insurance lines [5]. Operational Integration - Inigo will operate as a standalone business unit in London, maintaining its management structure, brand identity, and culture [2]. - The leadership team from Inigo, including CEO Richard Watson, will continue to manage the business, leveraging Radian's financial strength and operational scale [2][3]. Strategic Focus - Radian's CEO emphasized that the acquisition aligns with the company's strategic focus on growth and diversification while leveraging its core strengths in underwriting, risk management, and capital allocation [2][3]. - Inigo's CEO highlighted the shared commitment to customer focus and data-driven decision-making, enhancing the combined entity's market position [3].