A U.S. private mortgage insurer that protects lenders when homebuyers put down less than a fifth of a home's price, mainly for the government-sponsored giants Fannie Mae and Freddie Mac. It traces its roots to a mortgage insurer founded in 1977 that merged with Chicago-based Amerin in 1999 and took the brand-new name Radian to signal a fresh start. In 2025 it announced a pivot to a global specialty insurer by buying Inigo, a Lloyd's of London underwriter.
Inigo acquisition doubles Radian's revenue but net income falls 18% as Specialty losses and amortization weigh on the bottom line.
Radian's acquisition of Inigo transformed its profile, but the moved in the opposite direction. Revenue rose 93% to $575 million as the new Specialty contributed $270 million in net premiums earned, yet net income fell 18% to $116 million and dropped 17% to $0.85, driven by higher Specialty loss assumptions and $83 million in tied to the deal. The company is now a mortgage-and-specialty insurer, but the acquisition's near-term costs are outpacing its earnings contribution.
Key takeaways
Consolidated net premiums earned rose 116% to $504 million, driven almost entirely by the February 2026 acquisition of specialty insurer Inigo, while the legacy Mortgage 's net premiums were nearly flat at $236 million.
fell 18% to $115.9 million as the Specialty 's contribution was offset by $83 million in higher of and , both tied to the Inigo acquisition.
Section summaries
Management's Discussion and Analysis
Radian's Q2 2026 net income fell to $116M as the Inigo acquisition added $270M in premiums but also drove higher losses and expenses.
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Consolidated net premiums earned rose 116% to $504M, driven by the February 2026 acquisition of specialty insurer Inigo, while the legacy Mortgage 's premiums were nearly flat at $236M.
The Specialty reported a of 63.3% on $267 million in net premiums earned, which management attributed to competitive pricing pressures and increased loss assumptions for Middle East conflicts.
The Mortgage 's provision for losses rose, producing a of 10.2% in Q1 2026, as new defaults increased and favorable prior-period reserve development continued to diminish.
Radian Guaranty's PMIERs excess cushion fell to $1.5 billion from $1.6 billion at year-end 2025, and holding-company liquidity dropped by $1.4 billion in the first half of 2026, primarily to fund the $1.65 billion cash portion of the Inigo acquisition.
was $342.9 million, up from a $713.3 million outflow a year ago, as the Mortgage Conduit business continued converting loans to held-for-investment through securitization.
What changed
The Inigo acquisition closed in Q1 2026, adding a Specialty that contributed $270 million in net premiums earned in Q2 — up from $164 million in Q1, which reflected only two months of ownership — confirming the scale of the new business.
The Mortgage 's fell to 81.6% from 83.8% a year ago, as increased refinance activity drove higher cancellations, a shift flagged in prior quarters as a risk if mortgage rates declined.
The provision for losses in the Mortgage continued to rise, with the reaching 10.2% in Q1 2026, confirming the trajectory flagged in every filing since Q3 2024 as pandemic-era reserve benefits fully exhausted.
Radian Guaranty's PMIERs excess cushion narrowed to $1.5 billion, or 51% above minimum required assets, down from $2.2 billion a year ago, as the $600 million intercompany loan to fund the Inigo acquisition reduced available assets and the growing insured portfolio increased required assets.
The Mortgage Conduit business continued converting loans to held-for-investment through securitization, generating a second consecutive quarter of positive after the $713 million outflow in Q2 2025, suggesting the cash drain flagged in prior quarters was timing-related rather than structural.
What to watch
Whether the Specialty 's of 63.3% improves or deteriorates as competitive pricing pressures and Middle East conflict loss assumptions evolve through the remainder of 2026.
Whether the Mortgage 's continues to fall below 81.6% if mortgage rates decline further, accelerating cancellations and pressuring net premiums earned in the legacy business.
Whether the $83 million in quarterly of and tied to the Inigo deal represents a recurring run-rate or a front-loaded expense that will decline in future quarters.
Whether the divestitures of the Mortgage Conduit, Title, and Real Estate Services businesses close by Q3 2026 on acceptable terms, or whether delays or charges emerge.
The Mortgage 's adjusted pretax declined to $208M as a higher provision for losses, due to more new defaults and less favorable prior-period development, offset lower operating expenses.
The new Specialty contributed $29M in adjusted pretax on $267M in net premiums earned, with a 63.3% impacted by competitive pricing pressures and increased loss assumptions for Middle East conflicts.
Consolidated from continuing operations was $116M, down from $154M a year ago, as the benefits of the Inigo acquisition were offset by $83M in higher of deferred policy acquisition costs and .
Radian Guaranty's decreased to $1.5B from $1.6B at year-end 2025, while holding company liquidity fell by $1.4B in the first half of 2026, primarily to fund the $1.65B cash portion of the Inigo acquisition.
Management expects continued premium rate softening in the Specialty and will focus on disciplined underwriting, while the Mortgage segment's fell to 81.6% due to increased refinance activity.
Quantitative and Qualitative Disclosures About Market Risk
Market risk represents the potential for loss due to adverse changes in the value of financial instruments as a result of changes in market conditions. Examples of market risk include changes in interest rates, credit spreads, foreign currency exchange rates and equity prices. W…
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Market risk represents the potential for loss due to adverse changes in the value of financial instruments as a result of changes in market conditions. Examples of market risk include changes in interest rates, credit spreads, foreign currency exchange rates and equity prices. We regularly analyze our exposure to interest rate risk and credit spread risk and have determined that the fair value of our investments is materially exposed to changes in both interest rates and credit spreads. See “Our success depends, in part, on our ability to manage risks in our investment portfolio” under “Item 1A. Risk Factors” in our 2025 Form 10-K.
The completion of the Inigo acquisition on February 2, 2026, gave rise to new market risk exposures not previously existing for the Company related to foreign currency exchange rate risk and reinsurer credit risk; however, these incremental risks are not considered to be material to the Company as of June 30, 2026. Further, the acquisition added incremental market risk exposure already existing for the Company related to interest rate risk and credit spread risk, which are disclosed in our 2025 Form 10-K. As such, the acquisition did not result in a material change to the Company’s market risk disclosures as of June 30, 2026, from those set forth in “Item 7A. Quantitative and Qualitative Disclosures About Market Risk” of our 2025 Form 10-K.
We are routinely involved in a number of legal actions and proceedings, including reviews, audits, inquiries, information-gathering requests and investigations by various regulatory entities, as well as litigation and other disputes arising in the ordinary course of our business…
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We are routinely involved in a number of legal actions and proceedings, including reviews, audits, inquiries, information-gathering requests and investigations by various regulatory entities, as well as litigation and other disputes arising in the ordinary course of our business. See Note 13 of Notes to Unaudited Condensed Consolidated Financial Statements for additional information regarding legal actions and proceedings.