Radian acquires specialty insurer Inigo for $1.7 billion

U.S. mortgage insurer Radian has acquired Inigo, a Lloyd’s specialty insurer, according to an announcement on Thursday. 

Radian has agreed to pay $1.7 billion for Inigo. The transaction will primarily be all-cash, which Radian said will be funded from its available liquidity sources and excess capital from its subsidiaries. 

According to the release, this $1.7 billion price tag values Inigo at 1.5 times its projected tangible equity at the end of the year. Additionally, Radian said it expects the acquisition to double its total annual revenue. Launched in 2021, Inigo is one of Lloyd’s fastest-growing syndicates and it serves commercial and industrial enterprises worldwide. 

The company said this acquisition is part of its transformation from a domestic mortgage insurer to a “global, diversified multi-line specialty insurer.” 

“This is a financially compelling transaction, funded entirely from our excess capital and available liquidity sources without issuing new equity. 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,” Rick Thornberry, CEO of Radian, said in a statement.

Radian has noted that Inigo’s CEO Richard Watson, as well as Chief Underwriting Officer Russell Merrett and Chief Financial Officer Stuart Bridges will continue to lead Inigo’s business and management team at Radian. 

“We are delighted to have found Radian. Our respective portfolios are very complementary, with no business overlaps,” Watson said in a statement. “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 companies say they expect the acquisition, which is still subject to regulatory approval, to close during the first quarter of 2026.

Radian looks to sell several business lines

In addition to this acquisition, Radian also announced that it plans to sell its mortgage aggregation conduit. The unit started issuing jumbo mortgage-backed securities mid-2024, a unique move among mortgage insurance providers. Since it began issuing MBS, Radian has issued $1.92 billion of non-agency MBS to this point, according to Inside Nonconforming Markets, including a deal in July.

Additionally, Radian said it is also planning to sell its title and real estate services businesses.

“An active program is underway to identify buyers for these businesses, which is expected to be completed within one year,” Radian said.

According to Radian, the businesses will operate as usual during the sale process.

Flávia Furlan Nunes contributed reporting.