Radian's insurance backing grew 42%. What did the parent take on?
Inigo's bank support rises to $880 million as published fee rates fall. Our contract comparison traces the guarantee Radian has added.
Radian is putting its own guarantee behind a larger bank facility for its Inigo insurance business. The banks' main commission rate is falling even as that backing expands.
The agreement, effective October 29 and disclosed November 3, raises commitments to $880 million from $620 million. It supports Inigo's insurance underwriting at Lloyd's of London for 2027 and earlier years that remain open.
The facility provides letters of credit: bank promises available to meet insurance obligations. Radian Group replaces Inigo Limited as the company guaranteeing the borrower's obligations.
More capacity, lower published rates
Research by Ticker Byline shows that maximum backing rises 41.9%, while the annual commission rate on exposure without cash collateral falls by one-third. The comparison comes from the original agreement and its amended terms.
| Contractual term | Previous facility | Amended facility |
|---|---|---|
| Maximum commitments | $620 million | $880 million |
| Annual commission without cash collateral | 2.25% | 1.50% |
| Annual commission with cash collateral | 0.50% | 0.50% |
| Annual fee on unused commitments | 0.80% | 0.52% |
Separate arrangement and agency fees have undisclosed amounts. Actual charges depend on the amount issued, the portion backed by cash collateral and those additional fees.
The parent takes responsibility
The other side of the agreement is Radian's direct obligation. The guarantee lets the banks seek payment from the listed parent without first pursuing other available security. Radian also accepts minimum-net-worth and debt-to-capital limits under the facility.
That extends support for a business it already owns. Radian completed its $1.67 billion purchase of Inigo on February 2. The November filing changes the financing framework behind that business.
The latest available financial baseline is June 30, when the previous $620 million letter of credit was fully issued but had not been called. The amendment does not disclose how much of the expanded facility has been issued or cash collateralized.
Inigo's Lloyd's syndicate reported $1.68 billion of statutory capital and surplus in June, including the letter of credit, against a $1.509 billion requirement reported on a quarterly lag.
The Radian company profile sets out the new guarantee, the separate parent liquidity baseline and the financial results from Inigo's first full quarter inside the group.