Philadelphia-headquartered Radian Group Inc. announced Sept. 18 that it has entered into a definitive agreement to acquire specialty insurer Inigo Limited for $1.7 billion in a primarily all-cash transaction.
“The announcement of the acquisition of Inigo marks an important milestone for Radian as we transform our business model from a leading U.S. mortgage insurer into a global, multi-line specialty insurer,” Radian CEO Rick Thornberry said on Thursday. “This is a financially compelling transaction, funded entirely from our excess capital and available liquidity sources without issuing new equity.”
The deal will be funded from Radian’s available liquidity sources and excess capital from its subsidiaries, the company said, noting that the acquisition values Inigo at 1.5 times its projected tangible equity at the end of 2025.
The acquisition is expected 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, said Radian, which expects the transaction will double its total annual revenue, providing flexibility to deploy capital across multiple insurance lines through various business cycles.
Inigo was launched in 2021 and is among the fastest growing Lloyd’s syndicates in the market.
“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 specialty market,” Thornberry said. “Most importantly, we are excited to partner with the talented Inigo team, fueled 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.”
Inigo CEO Richard Watson, along with Chief Underwriting Officer Russell Merrett and Chief Financial Officer Stuart Bridges, will continue to lead the Inigo business and its management team.
“We are delighted to have found Radian,” Watson said. “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,” he added. “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 transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and other closing conditions.