Radian Group Inc. closed its $1.7 billion acquisition of Inigo Limited on February 2, 2026. The deal was paid in cash, funded by Radian’s liquidity and excess capital from its mortgage‑insurance subsidiary, Radian Guaranty. At closing, Inigo’s tangible equity was estimated at $1.16 billion, giving Radian a purchase‑price multiple of roughly 1.4 times tangible equity.
The transaction marks a strategic pivot for Radian, which has long focused on U.S. mortgage insurance. By adding Inigo’s multi‑line specialty portfolio, Radian now has a global presence in Lloyd’s of London and a diversified product mix that extends beyond mortgage‑related products. Inigo’s specialty lines—covering property, casualty, and reinsurance—are expected to double Radian’s total annual revenue and provide capital‑efficiency synergies across the group.
Management projects the acquisition to deliver mid‑teen percentage accretion to earnings per share and about 200 basis points of return‑on‑equity improvement in 2026. The expected accretion is driven by Inigo’s strong underwriting performance—its net combined ratio was 86% in the first half of 2025 and gross written premiums grew nearly 40% annually since 2021—combined with Radian’s ability to deploy excess capital efficiently. Radian’s Q3 2025 earnings of $1.15 per share beat estimates of $1.00, while revenue of $303 million fell short of the $307.67 million forecast, underscoring the importance of the new specialty lines for future growth.
Rick Thornberry, Radian’s CEO, said the deal “expands our footprint from a U.S. mortgage‑insurer to a global multi‑line specialty insurer, reinforcing our underwriting discipline and capital allocation strengths.” Richard Watson, Inigo’s CEO, added that the partnership “aligns our data‑driven culture with Radian’s capital strength, positioning us for world‑class growth.”
Analysts had upgraded Radian to a “Buy” rating in a January 17 report, citing the transformative nature of the Inigo acquisition, the diversification into specialty insurance, and the fact that the deal is accretive to book value without requiring new equity. The upgrade reflected confidence that the combined entity would generate higher earnings and a stronger balance sheet, while Moody’s and Fitch noted the transaction would not affect Radian’s credit ratings.
Inigo will operate as a standalone business unit in London, preserving its brand identity and management structure. Radian has also announced plans to divest its Mortgage Conduit, Title, and Real Estate Services businesses, a move aimed at streamlining operations and focusing on core mortgage insurance and the new specialty lines. Regulatory approvals were secured by December 2025, paving the way for the February 2026 closing.
The acquisition reduces Radian’s exposure to the cyclical U.S. mortgage market and opens a high‑growth specialty insurance segment. While the integration presents challenges—such as aligning underwriting practices and consolidating systems—the expected capital synergies and expanded geographic reach position Radian for sustained long‑term growth.
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