DB Insurance to acquire Fortegra for $1.65 billion in cash

SEOUL/NEW YORK - DB Insurance Co., Ltd. announced it has signed an agreement to acquire U.S.-based specialty insurer The Fortegra Group, Inc. for approximately $1.65 billion in cash from Tiptree Inc. (NASDAQ:TIPT) and Warburg Pincus LLC. According to InvestingPro data, Tiptree’s stock has recently experienced significant volatility, with shares down about 14% in the past week.

The transaction, which will be funded with internal resources from DB Insurance, marks the largest U.S. market entry by a Korean non-life insurer. The acquisition is expected to close in mid-2026, subject to Tiptree stockholder approval and regulatory approvals. Tiptree currently maintains strong financial health, with InvestingPro analysis showing an overall rating of "GREAT" and an impressive 11-year track record of consistent dividend payments.

Founded in 1978 and headquartered in Jacksonville, Florida, Fortegra operates across all 50 U.S. states and eight European countries. For 2024, Fortegra reported gross written premiums of $3.07 billion and net income of $140 million. The company maintains an A- financial strength rating from A.M. Best. Parent company Tiptree has demonstrated solid performance with revenue growth of 6.1% over the last twelve months and a five-year compound annual growth rate of 22%. Get deeper insights into Tiptree’s financial performance with a comprehensive Pro Research Report, available exclusively on InvestingPro.

"This acquisition will mark the first-ever purchase of a U.S. insurer by a Korean non-life insurer and represents a turning point for DB Insurance in its journey to become a global insurer," said Ki-Hyun Park, Head of Global Business at DB Insurance.

The acquisition is expected to provide DB Insurance with a platform for global growth in major property and casualty markets, enable entry into the surety and warranty sectors, and enhance earnings stability through diversification.

Rick Kahlbaugh, CEO of Fortegra Group, stated: "This agreement with DB Insurance marks a significant new chapter in Fortegra’s journey. We look forward to partnering with DB Insurance to advance the shared goal of building a leading insurance group."

Barclays and BofA Securities are serving as financial advisors to Fortegra, while Goldman Sachs & Co. LLC is advising DB Insurance on the transaction, according to the press release statement.

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