Summary of Radian Group's Conference Call on Inigo Acquisition Company and Industry - **Company**: Radian Group (NYSE:RDN) - **Industry**: Specialty Insurance, specifically focusing on mortgage insurance and Lloyd's insurance market Core Points and Arguments 1. **Acquisition Announcement**: Radian Group announced the acquisition of Inigo, a profitable Lloyd's specialty insurer, for $1.7 billion, primarily in cash, funded through available liquidity and excess capital without issuing new equity [4][9][30]. 2. **Strategic Transformation**: This acquisition marks a significant shift for Radian from a U.S. mortgage insurer to a global multiline specialty insurer, aiming to diversify and enhance growth opportunities [4][33]. 3. **Financial Metrics**: The transaction is expected to double Radian's top-line revenue, deliver mid-teens EPS accretion, and approximately 200 basis points of ROE accretion starting in year one [7][10][28]. 4. **Inigo's Performance**: Inigo has achieved a combined ratio in the mid to high eighties and a pretax return on equity exceeding 20%, indicating strong operational efficiency and profitability [8][14]. 5. **Market Expansion**: The acquisition is projected to increase Radian's addressable market by 12 times, allowing for capital deployment across various insurance lines [20][19]. 6. **Divestiture Plan**: Alongside the acquisition, Radian plans to divest its other businesses, including mortgage conduit, title, and real estate services, to simplify its portfolio [10][11]. 7. **Data-Driven Approach**: Both Radian and Inigo emphasize a data-driven culture, enhancing their ability to assess and price complex specialty risks effectively [16][23]. 8. **Management Continuity**: Inigo's founding management team will remain in place post-acquisition, ensuring continuity and leveraging their expertise in the Lloyd's market [9][26]. Additional Important Content 1. **Funding Structure**: The acquisition will be financed through a combination of an intercompany note of $600 million and $1.1 billion from available liquidity, avoiding external debt or equity financing [30][31]. 2. **Operational Efficiency**: Inigo's modern operating model and lack of legacy risk exposures position it well for future growth, with a focus on high-quality underwriting and client service [24][17]. 3. **Low Correlation Benefits**: The acquisition combines two uncorrelated businesses, which is expected to optimize risk-adjusted returns across market cycles [21][22]. 4. **Future Guidance**: Radian plans to provide more details on capital synergies and deployment strategies in upcoming quarters, indicating a proactive approach to managing the combined entity's financial health [54][49]. This summary encapsulates the key points discussed during Radian Group's conference call regarding the acquisition of Inigo, highlighting the strategic, financial, and operational implications of the transaction.

Financial Performance & Growth - Sparebanken Norge's Q2 2025 presentation highlights strong financial performance and growth following a legal merger on May 2, 2025 [2, 4] - The group's cost-to-income ratio for Q2 2025 is 29%, positioning it favorably compared to peers [8, 9] - The company reported a pro forma Return on Equity (ROE) of 18% for Q2 2025 [16] - Net interest income increased, reaching NOK 2711 million in Q2 2025 [42, 43] - Underlying cost growth is approximately 2.3%, with a pro forma cost-to-income ratio of 29% (27.4% adjusted for merger costs) [49] Lending & Deposits - The company has a gross loans portfolio of NOK 463 billion [11, 12] - Retail customer lending grew by 3.7% year-to-date, while corporate customer lending grew by 5.1% year-to-date [6] - Retail customer deposits show year-on-year growth of 11.2% [36] - Mortgage loan delinquencies (90 days) remain below 0.1% [59] Subsidiaries & Associated Companies - Eiendomsmegler Norge achieved a year-to-date pre-tax profit of NOK 49 million [75] - Borea Asset Management has Assets under Management (AUM) of NOK 18.7 billion [77] - Frende Holding's annualized ROE was 23.6% in the first half of 2025 [83] Capital Adequacy & Synergies - The Common Equity Tier 1 (CET1) ratio is 18.4% [17, 69, 70] - Realized capital synergies of approximately NOK 2 billion in Q2 2025 due to the implementation of CRR3/Basel IV [123] - Cost synergies are estimated to be greater than NOK 425 million [111, 112, 119] Future Targets & Strategy - The company aims for a Return on Equity (ROE) greater than 13% and a CET1 capital ratio greater than 16% by 2026-2028 [112, 129] - Bulder is targeting NOK 83 billion in lending [111] - Borea Asset Management is targeting > NOK 34 billion in AUM by the end of 2028 [195]