Radian Group Inc.

Radian Group provides U.S. mortgage insurance and, through Inigo, specialty insurance and reinsurance in the Lloyd's market. Mortgage insurance protects lenders against losses when borrowers default. The specialty business broadens Radian's exposure to commercial insurance risks. Radian trades on the New York Stock Exchange as RDN.

A new parent guarantee for Inigo

An October 29, 2026 agreement, disclosed November 3, increases Inigo Corporate Member Limited's letter-of-credit commitments to $880 million from $620 million. Radian Group becomes the guarantor, replacing Inigo Limited. The facility supports the 2027 underwriting year and earlier open years at Lloyd's.

A letter of credit is a bank promise that can be used to meet insurance obligations. It forms part of funds held at Lloyd's to support policyholders. The commitment amount is contingent bank support, distinct from cash borrowed by Radian.

At full issuance for a 360-day contract year without cash collateral, the base commission would be $13.2 million on the new facility, versus $13.95 million on the previous one. Separate arrangement, agency and security-agency fees have amounts and payment timing set in undisclosed fee letters.

The new guarantee allows lenders to seek payment directly from Radian. Its covenants include a maximum defined debt-to-capital ratio of 35% and a $3.1 billion base net-worth floor that rises with specified income and equity contributions. The old covenant applied to Inigo's group and counted letters of credit as debt. The new parent definition excludes undrawn letters of credit and contingent obligations that do not appear on the balance sheet. A facility default can also trigger default under Radian's revolving credit line or senior notes.

Inigo must also maintain its own capital support. The minimum primary funds at Lloyd's falls from 55% to 50% of its defined capital requirement, while a separate own-funds minimum stays at 50%.

Letters can expire as late as December 31, 2030. Support for each new underwriting year needs lender agreement. If the banks and borrower have not completed the extension for 2028 by Lloyd's 2027 submission deadline, outstanding letters must be reduced to zero or cash collateralized within five business days after December 31, 2027.

The latest financial baseline

The June 30 report recorded a $620 million letter of credit, fully issued but uncalled during 2026. The amendment does not disclose current utilization of the expanded facility. June statutory capital and surplus for Lloyd's Syndicate 1301 was $1.68 billion, including that letter, against $1.509 billion required on a quarterly reporting lag.

Radian's holding company and unregulated subsidiaries had $412 million of unrestricted cash and liquid investments in June. Another $425 million remained available on its revolver, bringing total liquidity to $837 million.

The consolidated balance sheet separately showed $119 million of cash, $36 million of restricted cash, $535.1 million of current borrowings and $696.9 million of noncurrent borrowings. Those group debt figures include subsidiary advances; the parent liquidity measure includes investments and unused credit.

How Inigo changed the group

Radian completed the $1.67 billion Inigo acquisition on February 2, 2026. Funding included a $600 million loan from its mortgage-insurance subsidiary and a $200 million revolver draw. By June, $125 million of the revolver borrowing had been repaid.

The second quarter was Inigo's first full quarter in Radian's results. Continuing-operations net income was $118.2 million, versus $154.5 million a year earlier. Adjusted pretax operating income rose to $195.8 million from $190.9 million. That measure removes investment and foreign-exchange gains or losses, purchase-accounting effects, acquired-intangible amortization and acquisition-related or other nonoperating items.

First-half operating cash from continuing operations was $294.4 million, versus $325 million. Read our analysis of the new guarantee and fee comparison for the contractual changes.