Radian Group said its mortgage insurance subsidiary, Radian Guaranty Inc., has reached principal terms on an excess of loss reinsurance agreement with a group of third-party reinsurers.
The company said the arrangement aligns with its broader use of risk distribution strategies to manage capital and reduce exposure.
The deal, which remains subject to final documentation, would provide about US$373 million in excess of loss protection on a segment of mortgage insurance policies written between 2016 and 2021. Radian expects the transaction to close in December with an effective date of Dec. 1, 2025.
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Radian’s move comes at a time when the excess-of-loss landscape is shifting for many insurers. Guy Carpenter recently reported that aggregate XOL capacity has contracted sharply, with availability down by more than 80% over the past five years.
Read more: Reinsurers face aggregate XoL gap amid rising demand and market shifts
As broad multi-year aggregate protections become harder to source, companies have increasingly relied on more targeted XOL structures to address specific segments of their portfolios.
At the same time, the broader reinsurance market has seen an influx of capacity in 2025. Aon noted that strong participation from traditional reinsurers, new market entrants and ILS capital contributed to favorable conditions for buyers during the midyear renewals.
Read more: Mid-2025 reinsurance market favors buyers amid strong capacity
With more capital available, cedents have had greater room to negotiate terms and structure programs that align with their capital management plans. Those dynamics have supported XoL transactions, which rely on stable pricing and multi-year commitments.
Radian said the transaction is consistent with its ongoing strategy to manage risk across its mortgage insurance portfolio. The company has used a mix of risk transfer tools in recent years to manage variability in performance and support regulatory capital requirements.
The changes in market capacity have also influenced how insurers structure their retention levels. Guy Carpenter’s analysis shows that carriers have adjusted to higher attachment points and tighter capacity at lower layers, in some cases taking on more risk before reinsurance responds.
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