Radian Group Inc. has completed its previously announced $1.67 billion acquisition of Inigo Limited, a specialty insurance group underwritten through Lloyd’s of London.
The acquisition, which reportedly received all necessary regulatory approvals late last year, will transform Radian from a leading U.S. private mortgage insurer into a global, diversified, multi-line specialty insurer, significantly expanding its product expertise and capabilities while optimizing the deployment of excess capital.
Radian said the acquisition will be about 15% accretive to its earnings per share and about 200 basis points accretive to return on equity in 2026.
As stated previously, the purchase price paid at closing, net of certain adjustments, was $1.67 billion. The transaction was funded from Radian’s available liquidity sources and excess funds from its mortgage insurance subsidiary, Radian Guaranty.
As part of Radian, Inigo will operate as an independent business unit in London and maintain its management structure and brand image.
Inigo CEO Richard Watson, Chief Underwriting Officer Russell Merrett and Chief Financial Officer Stuart Bridges will continue to lead the Inigo business and their teams.
Rick Thornberry, CEO of Radian, commented: “Today marks a significant milestone for Radian as we expand from our established position as the leading private mortgage insurer in the United States to a global multi-line specialty insurance company.
“This acquisition advances our strategic focus of growing and diversifying our business while maintaining our core strengths in underwriting, risk management and capital allocation.
“I am pleased to welcome Inigo to Radian and look forward to working with the team to leverage our combined expertise to create long-term value for our customers, partners and shareholders.”
Richard Watson, CEO of Inigo, said: “This is an important part of our journey to become a world-class specialist insurance and reinsurance company valued by customers, investors and employees. Radian shares our obsession with customers and love of data.”
“With Radian’s complementary product portfolio, aligned culture and long-term thinking, we are better capitalized and more diversified. We thank our customers for their strong support now and in the future.”
Speaking to Reinsurance News after the news was first announced last year, Watson highlighted the significant growth opportunities presented by the acquisition, noting that this growth will be measured and focused as Inigo continues to strengthen client relationships, expand its use of data and analytics and maintain its strong company culture.
