US-based company primarily known for mortgage insurance, Radian Group Inc.’s wholly owned subsidiary, Radian Guaranty, has agreed to the principal terms of an approximately $373 million excess of loss (XoL) reinsurance arrangement with a panel of highly rated third-party reinsurance providers.
This move aligns with the company’s broader risk distribution strategy to manage capital and proactively mitigate risk effectively.
The agreement, which remains subject to final documentation, secures approximately $373 million of XoL reinsurance coverage on certain policies written from 2016 through 2021.
The agreement is expected to close in December with an effective date of December 1st, 2025.
In other news, back in September 2025, Radian Group acquired Inigo Limited, a Lloyd’s specialty insurer, in a transaction valued at $1.7 billion, mostly in cash, with the acquisition being funded using Radian’s available liquidity and capital from its subsidiaries.
This move led to S&P Global Ratings placing a ‘BBB-‘ rating on Radian and its ‘A-‘ rating on Radian Guaranty, on CreditWatch with a developing outlook.
The rationale for this was that the acquisition could enhance the diversification of its business and create growth opportunities that are currently constrained within its US mortgage insurance operations.
