S&P Global Ratings has indicated that Radian’s recent $1.7 billion acquisition of Lloyd’s specialty insurer Inigo could enhance the diversification of its business and create growth opportunities that are currently constrained within its U.S. mortgage insurance operations. “The business of Inigo is uncorrelated to Radian’s commoditised monoline business model, which could improve our view of Radian’s business diversification and may offer growth opportunities that are currently limited in its current U.S. mortgage insurance operations,” the rating agency explained. However, S&P additionally noted that Inigo’s significant exposure to property and property catastrophe lines, along with Radian’s current mortgage insurance business, may increase the company’s overall risk profile. “We want to better understand how the combination of different risks will be integrated, managed, measured and monitored prospectively, given this will be a new business to Radian,” S&P suggested. The rating agency noted that this risk may be mitigated, in part, once there is better clarity into Radian’s risk management strategy after the acquisition.