Radian Group secured final regulatory approval for its $1.7 billion acquisition of Inigo Limited, a specialty insurer operating through Lloyd’s of London, clearing the last hurdle before the transaction is expected to close in February 2026.
The deal marks a strategic pivot from a U.S. mortgage‑insurance focus to a global multi‑line specialty insurer. By adding Inigo’s specialty lines, Radian will broaden its addressable market roughly twelve‑fold and gain new underwriting expertise and capital‑efficient distribution channels.
Financially, the acquisition is projected to generate mid‑teen earnings‑per‑share accretion and a 200‑basis‑point improvement in return on equity starting in year one. Radian will continue to divest its mortgage conduit, title, and real‑estate services businesses through Q3 2026, sharpening focus on core insurance operations.
Radian’s Q3 2025 earnings, released earlier this year, showed an EPS of $1.15 versus analyst expectations of $1.00—a beat of $0.15 or 15%. The beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin mortgage‑insurance products, offsetting a slight revenue miss of $4.67 million. The revenue shortfall was largely due to modest demand softness in the U.S. mortgage market, while pricing power in specialty lines helped cushion the impact.
Market reaction to the regulatory approval was muted, reflecting the expectation that the deal’s value will materialize over the next 12–18 months. Analysts noted that the acquisition’s strategic fit—expanding into specialty insurance and reducing cyclicality—aligns with Radian’s long‑term growth plan, while the divestiture of legacy businesses signals a commitment to operational focus.
With the regulatory green light, Radian is positioned to accelerate integration of Inigo’s data‑driven underwriting platform and Lloyd’s syndicate relationships, potentially unlocking higher margins and new distribution channels. The company’s strong balance sheet—net margin of 44.13%, EBITDA margin of 67.12%, and debt‑to‑equity ratio of 0.25—provides a solid foundation for executing the transaction and pursuing future growth opportunities.
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