Radian Group Inc., a US-based company primarily known for mortgage insurance, has reached a definitive agreement to acquire 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.
The deal marks a strategic step for Radian as it expands beyond mortgage insurance into a broader, multi-line specialty insurance business.
Radian expects the acquisition to approximately double its annual revenue and provide greater flexibility to allocate capital across different insurance lines.
The transaction values Inigo at 1.5 times its projected tangible equity at the end of 2025. Radian anticipates mid-teens percentage growth in earnings per share and roughly a 200 basis point increase in return on equity in the first full year after closing.
Founded in 2021, Inigo has rapidly grown within the Lloyd’s market, offering data-driven specialty insurance products to commercial and industrial clients. The company has established a track record of profitability and underwriting discipline.
Inigo will continue to operate under its own brand, led by its current management team, including CEO Richard Watson, Chief Underwriting Officer Russell Merrett, and CFO Stuart Bridges. The firm will retain its operational independence under Radian’s ownership.
“Today’s announcement of the acquisition of Inigo marks an important milestone for Radian as we transform our business model from a leading US mortgage insurer into a global, multi-line specialty insurer,” commented Rick Thornberry, Chief Executive Officer of Radian.
He continued: “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.
“Most importantly, we are excited to partner with the talented Inigo team, fuelled by a shared commitment toward innovation, underwriting expertise, data science, technology and workplace culture. Together, we are well positioned to deliver even greater value to our combined stakeholders.”
The acquisition is expected to close in the first quarter of 2026, subject to regulatory approvals and other customary conditions. Additional details are available in Radian’s Form 8-K filing with the US Securities and Exchange Commission.
Watson added: “We are delighted to have found Radian. From our first meeting, there was a clear cultural match and a shared conviction around the importance of data, and how we can use it to benefit the customers we serve.
“Our respective portfolios are very complementary, with no business overlaps. 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.
“Inigo are incredibly grateful for the support we have received from customers, brokers and from Lloyd’s. We are indebted to JCF, La Caisse, OHA and QIA for their guidance, wisdom and especially the faith they showed in us, from the very beginning. Collectively they have been a great example of the value that can be added by private equity and sovereign investors.
“We have our recent new office, new capital, and a culturally aligned parent company who shares our enthusiasm for the significant opportunities ahead. We are as excited by the prospect of what we can achieve in the future, as we were when we started.”
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