Radian Group is set to acquire Inigo Limited, a Lloyd’s speciality insurer, for $1.7bn in cash, funded by available liquidity and surplus capital. The move aims to expand expertise in the insurance sector, particularly the US mortgage market, and utilize excess capital efficiently.

Inigo, established in 2020, underwrites speciality insurance for large commercial clients via Lloyd’s Syndicate 1301. Valued at 1.5 times its tangible equity, the acquisition is expected to boost Radian’s earnings per share and return on equity, doubling annual revenue and diversifying insurance lines.

Inigo’s leadership, including CEO Richard Watson, will remain post-acquisition. The transaction is projected to close in Q1 2026, pending regulatory approvals. A portion of the purchase price will be in Radian shares, fostering a partnership focused on innovation, underwriting, data science, and workplace culture.

Radian CEO Rick Thornberry sees the acquisition as a diversification opportunity beyond the mortgage market into the Lloyd’s speciality sector. Simultaneously, Radian plans to divest ‘All Other’ businesses by Q3 2026. The strategic moves aim to enhance value for stakeholders and broaden the company’s market presence.

Read more at Yahoo Finance: Radian to acquire Lloyd’s syndicate Inigo in $1.7bn deal