Radian Group Inc, which specialises in the provision of mortgage insurance for private homeowners, has agreed an all-cash acquisition valued at approximately £1.25bn of specialty insurer Inigo Ltd. Inigo underwrites through Lloyd’s Syndicate 1301 and in the first six months of this year reported a profit before tax of £85m and a net combined ratio of 86%.

Radian said the deal would diversify it from a monoline mortgage insurance provider to a multi-line speciality carrier.

Rick Thornberry, chief executive officer of Radian said: “The strength of our mortgage insurance business has allowed us to build sufficient capital sources to fund this acquisition without raising new equity.

“The Inigo business complements our own, with a shared commitment to leveraging data and analytics to drive results. Going forward, this acquisition strategically expands our addressable market and positions us to deliver an array of insurance products to leading enterprises.”

Richard Watson, chief executive officer of Inigo, added: “Our respective portfolios are very complementary to each other, with no overlaps or conflicts. As we build bigger and deeper relationships with our customers, we welcome the further diversification and the access to a bigger balance sheet.”