Radian Group Inc. has completed its previously announced acquisition of Inigo Limited, a specialty insurance group underwriting through Lloyd’s of London, for $1.67 billion.
The acquisition, which received all required regulatory approvals at the end of last year, will reportedly 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 optimising the deployment of excess capital.
According to Radian, the acquisition should deliver mid-teens percentage accretion to its earnings per share and approximately 200 basis points accretion to return on equity in 2026.
As mentioned, the purchase price paid at closing, net of certain adjustments, was $1.67 billion. The transaction was funded by Radian’s available liquidity sources and by using excess capital from its mortgage insurance subsidiary, Radian Guaranty.
As part of Radian, Inigo will operate as a standalone business unit in London, maintaining its management structure and brand identity.
Inigo Chief Executive Officer Richard Watson, along with Chief Underwriting Officer Russell Merrett and Chief Financial Officer Stuart Bridges, will continue to lead the Inigo business and its team.
Rick Thornberry, Chief Executive Officer of Radian, commented, “Today marks an important milestone for Radian as we expand from our established position as a leading U.S. private mortgage insurer into a global multi-line specialty insurer.
“This acquisition advances our strategic focus to grow and diversify our business, while staying true to our core strengths in underwriting, risk management, and capital allocation.
“I am excited to welcome Inigo to Radian and look forward to collaborating with the team to leverage our combined expertise and create long-term value for our customers, partners and stockholders.”
Richard Watson, Chief Executive Officer of Inigo, said, “This is an important part of our journey to become a world-class specialty insurance and reinsurance company, valued by its customers, its investors, and its staff. Radian shares our obsession with customers and our love of data.”
“With Radian’s complementary portfolio, aligned culture, and long-term thinking, we are better capitalized and more diversified. We thank our customers for their incredible support, now and in the future.”
Speaking with Reinsurance News in an interview following the initial announcement last year, Watson highlighted the significant growth opportunities arising from the acquisition, noting that this growth will be measured and focused as Inigo continues to strengthen customer relationships, expand its use of data and analytics, and maintain its strong company culture.
