Radian to acquire Lloyd’s insurer Inigo for $1.7 billion in cash deal

WAYNE, Pa. - Radian Group Inc. (NYSE:RDN), currently valued at $4.7 billion with a price-to-earnings ratio of 8.8x, has entered into a definitive agreement to acquire Lloyd’s specialty insurer Inigo Limited for $1.7 billion in a primarily all-cash transaction, the company announced Thursday. According to InvestingPro analysis, Radian maintains a FAIR financial health score, suggesting solid positioning for this strategic move.

The acquisition, expected to close in the first quarter of 2026 subject to regulatory approvals, represents a significant shift in Radian’s business strategy from a U.S. mortgage insurer to a global, diversified multi-line specialty insurer.

Radian plans to fund the purchase entirely from available liquidity sources and excess capital from its subsidiaries without issuing new equity. The transaction values Inigo at 1.5 times its projected tangible equity at the end of 2025. InvestingPro data shows Radian’s strong liquidity position with a current ratio of 3.09, though analysts note the company has been quickly burning through cash recently. For deeper insights into Radian’s financial position and 12+ key metrics, check out the comprehensive Pro Research Report available on InvestingPro.

The company expects the acquisition 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, while doubling Radian’s total annual revenue.

Launched in 2021, Inigo has established itself as one of the fastest-growing Lloyd’s syndicates while maintaining profitability. The company offers data-driven specialty insurance solutions to commercial and industrial enterprises.

Following the acquisition, Inigo’s current leadership team, including CEO Richard Watson, Chief Underwriting Officer Russell Merrett, and CFO Stuart Bridges, will continue to lead the business.

In a separate announcement, Radian revealed plans to divest its Mortgage Conduit, Title and Real Estate Services businesses following a comprehensive strategic review. The company expects to complete these divestitures by the third quarter of 2026 at the latest.

Radian will report these businesses as held for sale and reflect their results as discontinued operations in its consolidated financial statements beginning with the quarter ended September 30, 2025.

Goldman Sachs & Co. LLC and Guy Carpenter’s Capital & Advisory team served as financial advisors to Radian for the Inigo transaction, with Skadden, Arps, Slate, Meagher & Flom LLP acting as legal counsel, according to the company’s press release statement.

In other recent news, Radian Group Inc. reported strong financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved earnings per share of $1.01, exceeding the forecasted $0.98, and reported revenue of $318 million, slightly above the anticipated $316 million. Additionally, Radian Group announced that its subsidiary, Radian Mortgage Capital LLC, has amended its master repurchase agreement with JPMorgan Chase Bank to increase its borrowing capacity from $400 million to $500 million, with an extended termination date to August 27, 2026. This agreement is intended to finance the acquisition of residential mortgage loans for direct sale or distribution in the capital markets. Furthermore, Radian Group declared a regular quarterly dividend of $0.255 per share, payable on September 9, 2025, to stockholders of record as of August 25, 2025. The dividend announcement was approved by the company’s Board of Directors. These developments reflect Radian Group’s ongoing financial strategies and market activities.

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