RADIAN GROUP INC 8-K

What Happened Radian Group Inc. announced it entered into a $600 million intercompany note with its wholly owned subsidiary, Radian Guaranty Inc. (RGI). The note has a ten-year term and bears interest at 6.50% per annum. Radian said the proceeds will be used to fund part of the purchase price for its pending acquisition of Inigo Limited, which Radian expects to close in February 2026, subject to customary closing conditions. The Pennsylvania Insurance Department approved the intercompany note and imposed certain conditions.

Key Details

• $600 million intercompany note between Radian and Radian Guaranty Inc.; 10-year term; 6.50% annual interest.
• Proceeds will fund a portion of the purchase price for Inigo Limited; expected close: February 2026 (subject to conditions).
• Pennsylvania Insurance Department approval requires enhanced reporting and allows the Department to require prepayment if RGI needs liquidity to meet policyholder obligations.
• Regulatory conditions include prior Department approval for RGI dividends for three years (may be reduced or extended to up to five years in certain circumstances) and a minimum policyholders’ surplus requirement of $500 million.

Why It Matters This transaction increases related‑party debt on Radian’s balance sheet to help finance the Inigo acquisition and comes with regulatory limits on RGI’s capital flexibility. The Department’s conditions—dividend approval, reporting, surplus maintenance and potential prepayment—could restrict cash transfers from RGI to the parent and affect liquidity management until conditions are lifted or the note is repaid. Investors should note the expected February 2026 closing timing and review Radian’s risk disclosures for further detail on potential impacts and uncertainties.