DB Insurance coverage has signed an settlement to buy The Fortegra Group from sellers Tiptree and Warburg Pincus for about $1.65bn in money.
The acquisition value will probably be paid from DB Insurance coverage’s personal money assets.
Fortegra, established in 1978 and primarily based within the US, is a specialty insurer with operations throughout the nation and in components of Europe.
For 2024, the group reported $3.07bn gross written premiums and web revenue of $140m.
It conducts enterprise in all 50 US states and in eight international locations in Europe, together with Italy and the UK.
Fortegra’s long-term mixed ratio is alleged to be about 90%.
DB Insurance coverage initially entered the US by a Guam department in 1984.
This acquisition will present the corporate a foothold in main property and casualty markets and develop its presence into guarantee and surety traces, whereas widening its geographic and product combine.
DB Insurance coverage World Enterprise head Ki-Hyun Park stated: “This acquisition will mark the first-ever buy of a US insurer by a Korean non-life insurer and represents a turning level for DB Insurance coverage in its journey to change into a worldwide insurer.
“By combining Fortegra’s experience with DB Insurance coverage’s international community and capital power, we goal to reinforce buyer worth and market competitiveness whereas concurrently attaining our twin aims of accelerating shareholder worth and contributing to the nationwide economic system.”
The transaction is conditional on Tiptree shareholder approval, regulatory clearances and different customary situations and is predicted to shut in mid-2026.
Fortegra Group CEO Rick Kahlbaugh stated: “This settlement with DB Insurance coverage marks a major new chapter in Fortegra’s journey. We look ahead to partnering with DB Insurance coverage to advance the shared objective of constructing a number one insurance coverage group.”
