Business Combinations (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Components of Consideration Paid

The following table presents the components of the consideration paid:


Consideration paid



($ in thousands, except share and per share amounts)
Consideration paid
Share consideration
Shares of Radian Group Inc. common stock issued to existing Inigo common stockholders		646,014
Radian Group Inc. closing stock price per share on Closing Date	$	32.90
Consideration of Radian Group Inc. issued common stock	$	21,254
Fair value of equity awards issued (1)		2,512
Cash consideration		1,647,354
Total consideration paid	$	1,671,120

(1)

The estimated fair value of the replacement equity awards was $14 million, of which $3 million is attributable to service periods prior to the acquisition and is included in the purchase consideration. The remaining fair value is attributable to future service and will be amortized over the remaining service period. See Note 17 for additional information.

Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed as of Closing Date

The following table summarizes the preliminary allocation of the purchase price to the estimated fair value of assets acquired and liabilities assumed as of the Closing Date.


Preliminary purchase price allocation



(In thousands)	February 2, 2026

Assets acquired
Investments	$	2,440,780
Cash		16,945
Restricted cash		62,973
Accrued investment income		16,522
Premiums and other receivables		562,311
Reinsurance recoverables		305,154
VOBA		204,999
Other acquired intangible assets		419,364
Other assets		222,453
Total assets acquired		4,251,501
Liabilities assumed
Reserve for losses and LAE		1,364,254
Unearned premiums		747,375
Net deferred tax liability		48,743
Other liabilities		425,292
Total liabilities assumed		2,585,664
Net assets acquired	$	1,665,837
Total consideration paid	$	1,671,120
Preliminary allocation to goodwill	$	5,283

Schedule of Identifiable Intangible Assets

The following table presents the identifiable intangible assets and VOBA recognized as of the acquisition date.


Other acquired intangible assets and VOBA

(In thousands)	February 2, 2026			Estimated Useful Life (in years)

Other acquired intangible assets
Lloyd’s syndicate capacity and related rights	$	214,650		Indefinite
Broker relationships - large brokers		114,824		12
Broker relationships - other brokers		46,068		9
Brand		31,159		5
Technology		12,663		5
Total other acquired intangible assets	$	419,364

VOBA, net
VOBA asset - unearned premiums	$	204,999		1 to 2
VOBA liability - reserves		(39,083	)	3 to 4
Total VOBA, net	$	165,916

Schedule of Goodwill Intangible Assets and VOBA

The following shows the components of goodwill, intangible assets and VOBA as of the period indicated.


Goodwill, intangible assets and VOBA

	As of March 31, 2026

(In thousands)	Gross Carrying Amount			Accumulated Amortization			Net Carrying Amount

Goodwill and other acquired intangible assets
Goodwill and indefinite-lived intangible assets
Goodwill	$	5,283		$	—		$	5,283
Lloyd’s syndicate capacity and related rights		214,650			—			214,650
Total goodwill and indefinite-lived intangible assets		219,933			—			219,933
Finite-lived intangible assets
Broker relationships - large brokers		114,824			(1,595	)		113,229
Broker relationships - other brokers		46,068			(853	)		45,215
Brand		31,159			(1,039	)		30,120
Technology		12,663			(422	)		12,241
Total finite-lived intangible assets		204,714			(3,909	)		200,805
Total goodwill and other acquired intangible assets	$	424,647		$	(3,909	)	$	420,738

VOBA, net
VOBA asset - unearned premiums (1)	$	204,999		$	(56,107	)	$	148,892
VOBA liability - reserves (2)		(39,083	)		2,611			(36,472	)
Total VOBA, net	$	165,916		$	(53,496	)	$	112,420

(1)

Included in deferred policy acquisition costs and VOBA on our condensed consolidated balance sheets.

(2)

Included in reserves for losses and LAE on our condensed consolidated balance sheets.

Schedule of Estimated Amortization of Finite Lived Other Intangible Assets and VOBA

As of March 31, 2026, the estimated amortization of finite-lived other intangible assets for each of the next five years and thereafter is as follows.


Estimated amortization for the next five years and thereafter


(In thousands)	Other Acquired Intangible Assets

2026 (remainder)	$	17,589
2027		23,452
2028		23,452
2029		23,452
2030		23,452
Thereafter		89,408
Total	$	200,805

Schedule of Financial Results of Inigo Included in Condensed Consolidated Financial Statements

The following selected unaudited information is a summary of the results of Inigo that have been included in the condensed consolidated financial statements for the quarter ended March 31, 2026, after giving effect to purchase accounting adjustments.


Financial results - Inigo




(In thousands)	From Closing Date to March 31, 2026


Total revenues	$	180,446
Net income (1)	$	5,716

(1)

Includes $23 million of pretax expenses related to purchase accounting adjustments and amortization of intangibles related to the Inigo acquisition.

Schedule of Pro forma statement of operations

The following selected unaudited pro forma financial information is a summary of the combined results of the Company and Inigo, assuming the transaction had been effected on January 1, 2025.


Supplemental Pro Forma Information


	Three Months Ended March 31,

(In thousands)	2026		2025


Total revenues	$	567,249	$	541,543
Net income		172,077		90,949