Radian Group (RDN) investor relations material

Deal rationale and strategic fit

• Acquisition transforms the company from a U.S. mortgage insurer to a global multiline specialty insurer, expanding its addressable market by 12 times to $76 billion and enabling capital deployment across uncorrelated insurance lines.

• Inigo, a Lloyd's specialty insurer, brings a high-growth, data-driven platform with strong underwriting discipline, industry-leading combined ratios, and a cultural fit with the acquirer.

• The deal supports a shift to focus on specialty insurance and reinsurance, with a divestiture plan for non-core businesses to simplify the portfolio and improve ROE.

• The acquired business offers complementary portfolios with no overlaps, expanding product expertise and capabilities.

Financial terms and conditions

• Purchase price is $1.7 billion, funded entirely with available liquidity and excess capital, with no new equity issued and a small equity rollover for Inigo management.

• Valuation is 1.5x projected 2025 tangible equity; $600 million funded via an intercompany note approved by regulators, and the remainder from holding company liquidity and revolving credit facility.

• The deal is expected to close in Q1 2026, subject to regulatory approvals and closing conditions.

Synergies and expected cost savings

• Divestiture of non-core businesses is projected to increase ROE by 120 basis points and reduce operating expenses by 36%.

• Capital synergies expected through Inigo's increased use of low-cost funding mechanisms at Lloyd's, including letters of credit.

• The combined entity will benefit from uncorrelated returns, potential reinsurance synergies, and flexibility to deploy capital across multiple insurance lines.

• Synergies expected from capital stack, with no dependence on expense initiatives.