Radian Group Inc. disclosed a $373 million excess‑of‑loss (XOL) reinsurance agreement with a panel of highly rated third‑party reinsurers, covering policies written between 2016 and 2021. The agreement was announced on November 25, 2025 and is expected to close in December 2025, with an effective date of December 1.
The transaction is part of Radian’s broader capital‑deployment strategy, allowing the company to transfer a portion of its risk exposure to reinsurers and preserve capital for future growth. By capping potential losses on older policies, Radian can maintain a strong capital position while pursuing new opportunities.
The reinsurance deal comes amid a period of strategic expansion, including the September 2025 acquisition of Inigo Limited for $1.7 billion, which broadened Radian’s product mix beyond U.S. mortgage insurance. The transaction also follows a S&P CreditWatch placement, underscoring the importance of robust risk management as the company diversifies.
Financially, Radian reported net income of $148 million in Q4 2024, up from $143 million in Q4 2023, and a full‑year 2024 net income of $604 million versus $603 million in 2023. The reinsurance agreement supports these results by limiting downside risk on legacy policies, thereby protecting earnings and capital adequacy.
Overall, the $373 million XOL agreement is a significant financing event that enhances Radian’s risk profile and aligns with its long‑term growth strategy, making it a material development for investors.
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