Radian Bets $1.7 Billion On Inigo To Reinvent Itself As A Global Specialty Insurance Powerhouse

Radian Group Inc. (NYSE:RDN) said Thursday it will buy Inigo Limited, a Lloyds Banking Group (NYSE:LYG) specialty insurer, in a $1.7 billion transaction that will transform the Pennsylvania-based company into a global multi-line insurer.

The deal, funded primarily with cash on hand and excess subsidiary capital, values Inigo at 1.5 times its expected 2025 tangible equity. It is projected to close in the first quarter of 2026 and nearly double Radian’s revenue while boosting earnings per share by mid-teens percentages in the first full year.

CEO Rick Thornberry said the acquisition marks a turning point for Radian. “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,” he said.

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Inigo, founded in 2021, will continue under CEO Richard Watson, Chief Underwriting Officer Russell Merrett and Chief Financial Officer Stuart Bridges. Watson said the firms share a cultural alignment and complementary portfolios, adding, “We welcome the further diversification and access to the stronger capital base that Radian provides.”

Alongside the acquisition, Radian announced it will sell its Mortgage Conduit, Title and Real Estate Services units by the third quarter of 2026. The businesses will be classified as discontinued operations beginning with the third-quarter 2025 results. Thornberry said the move simplifies operations as the company focuses on specialty insurance.

Radian held cash of $22.09 million as of June 30, 2025.

The deal highlights investor interest in Lloyd’s specialty insurers, which have gained ground with data-driven underwriting strategies. Radian joins peers expanding into specialty lines to manage risk across cycles.

Price Action: At last check Thursday, RDN shares were trading higher by 6.56% at $37.00 premarket.

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