The company’s expansion into the Lloyd’s global specialty market follows a strategic review to diversify beyond its traditional mortgage insurance offerings
London: -Radian Group today announced that it has entered into a definitive agreement to acquire Inigo Limited, a highly profitable Lloyd’s specialty insurer, for $1.7 billion in a primarily all-cash transaction.
This strategic acquisition will mark an important step in Radian’s transformation from a leading U.S. mortgage insurer to a global, diversified multi-line specialty insurer, significantly expanding the company’s product expertise and capabilities and optimizing the deployment of its excess capital.
The transaction will be funded from Radian’s available liquidity sources and excess capital from its subsidiaries.
The company’s expansion into the Lloyd’s global specialty market follows a strategic review to diversify beyond its traditional mortgage insurance offerings.
Shares of Wayne, Pennsylvania-based Radian rose 4.1% before the bell.
Specialty business of Inigo, a Lloyd’s syndicate founded in 2020, is largely U.S. focused and is expected to generate $1.6 billion in gross written premiums this year.
“Our respective portfolios are very complementary, with no business overlaps,” said Inigo CEO Richard Watson.
Inigo underwrites multi-class specialty insurance and serves some of the world’s largest commercial and industrial enterprises.
Lloyd’s of London is a commercial insurance market providing specialist insurance services to businesses in over 200 countries and territories.
Radian plans to offload its mortgage conduit, title and real estate services businesses within one year.
The company expects the Inigo deal to deliver mid-teens percentage boost to earnings per share in full-year 2026 and double its total annual revenue.
The transaction, which is expected to close in the first quarter of 2026, values Inigo at 1.5 times its projected tangible equity at the end of 2025.
Inigo founders Watson, Russell Merrett, and Stuart Bridges will continue to lead the business.
Goldman Sachs and Guy Carpenter’s capital & advisory team are financial advisors to Radian on the deal.