Radian Group said on Thursday it would buy UK-based Inigo for $1.7 billion as the U.S. mortgage insurer seeks to transform into a global multi-line specialty insurer, sending its shares up nearly 7%.
The Pennsylvania-based company’s expansion into the Lloyd’s global specialty market follows a strategic review to diversify beyond its traditional mortgage insurance offerings.
“Mortgage insurance had a more limited organic growth opportunity. Inigo changes that for us,” Radian Chief Financial Officer Sumita Pandit told analysts, adding the acquisition is expected to increase its addressable market by 12 times.
The specialty business of Inigo, a Lloyd’s syndicate founded in 2020, is largely U.S. focused and is expected to generate $1.6 billion in gross written premiums this year.
Inigo underwrites multi-class specialty insurance and serves some of the world’s largest commercial and industrial enterprises.
Lloyd’s is a commercial insurance market providing specialist insurance services to businesses in over 200 territories.
“Inigo has achieved significant scale in a short time, becoming the 20th largest syndicate in just four years since inception. Some of the largest syndicates in Lloyd’s are nearly four times larger, which underscores the substantial opportunity for Inigo’s continued market expansion,” Pandit said.
Radian plans to offload its mortgage conduit, title and real estate services businesses within one year to simplify its portfolio.
The company expects the Inigo deal to deliver mid-teens percentage boost to earnings per share in full-year 2026 and double its annual revenue.
The transaction, which is expected to close in the first quarter of 2026, values Inigo at 1.5 times its projected tangible equity at the end of 2025.
Inigo founders Richard Watson, Russell Merrett, and Stuart Bridges will continue to lead the business.
Goldman Sachs and Guy Carpenter’s capital & advisory team are financial advisors to Radian on the deal.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Leroy Leo, Sriraj Kalluvila and Krishna Chandra Eluri)
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