Business Combinations (Tables)

6 Months Ended

Jun. 30, 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 Closing 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	$	213,781		Indefinite
Broker relationships - large brokers		115,424		12
Broker relationships - other brokers		46,336		9
Brand		31,160		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 date indicated.


Goodwill, intangible assets and VOBA

	As of June 30, 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		213,781			—			213,781
Total goodwill and indefinite-lived intangible assets		219,064			—			219,064
Finite-lived intangible assets
Broker relationships - large brokers		115,424			(4,008	)		111,416
Broker relationships - other brokers		46,336			(2,145	)		44,191
Brand		31,160			(2,597	)		28,563
Technology		12,663			(1,055	)		11,608
Total finite-lived intangible assets		205,583			(9,805	)		195,778
Total goodwill and other acquired intangible assets	$	424,647		$	(9,805	)	$	414,842

VOBA, net
VOBA asset - unearned premiums (1)	$	204,999		$	(123,920	)	$	81,079
VOBA liability - reserves (2)		(39,083	)		6,323			(32,760	)
Total VOBA, net	$	165,916		$	(117,597	)	$	48,319

(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 June 30, 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)	$	11,766
2027		23,532
2028		23,532
2029		23,532
2030		23,532
Thereafter		89,884
Total	$	195,778

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 three months ended and for the Closing Date to, June 30, 2026, after giving effect to purchase accounting adjustments.


Financial results - Inigo

(In thousands)	Three Months Ended June 30, 2026			From Closing Date to June 30, 2026
Total revenues	$	287,076		$	467,522
Net income (1)		(17,115	)		(11,399	)

(1)

Includes $33 million and $60 million of expenses related to purchase accounting adjustments and amortization of intangibles related to the Inigo acquisition for the three months ended and from the Closing Date to June 30, 2026, respectively.

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 June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Total revenues	$	574,959	$	560,726	$	1,142,208	$	1,102,269
Net income		140,317		192,294		312,394		283,243