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NEW YORK - Institutional Shareholder Services (ISS), a leading independent proxy advisory firm, has recommended that Tiptree Inc. (NASDAQ:TIPT) stockholders vote in favor of the proposed merger between The Fortegra Group, Inc. and DB Insurance Co., Ltd., according to a press release statement from Tiptree. Tiptree, currently trading at $18.62 with a market capitalization of approximately $704 million, has seen its share price decline nearly 14% over the past six months.
The all-cash transaction would result in DB Insurance acquiring all outstanding stock of Fortegra, a Tiptree subsidiary. Stockholders are scheduled to vote on the proposal at a special meeting on December 3. According to InvestingPro data, Tiptree is currently trading at a P/E ratio of 16.28, which is considered low relative to its near-term earnings growth potential, and appears slightly undervalued based on Fair Value analysis.
In its recommendation, ISS noted that Tiptree conducted a competitive sales process and explored alternative transaction structures, including an IPO and an outright sale of the company, before proceeding with the current deal.
Michael G. Barnes, Executive Chairman of Tiptree, stated that the company’s board unanimously recommends stockholders vote for the merger proposal.
Tiptree filed a definitive proxy statement with the Securities and Exchange Commission on October 31, 2025, providing stockholders with detailed information about the proposed transaction.
Tiptree Inc., established in 2007, allocates capital to small and middle market companies across various sectors including insurance, asset management, specialty finance, real estate, and shipping.
The company has not disclosed the financial terms of the transaction in this announcement. According to ISS, Tiptree has delivered strong total shareholder returns over the past five years, outperforming peers and the broader market. This assessment aligns with InvestingPro data showing strong five-year returns despite recent price volatility. For investors seeking deeper insights, Tiptree is among the 1,400+ US equities covered by comprehensive Pro Research Reports that transform complex Wall Street data into actionable intelligence.
In other recent news, Tiptree Inc. announced its plans to sell The Fortegra Group and its mortgage business in transactions valued at approximately $1.7 billion. The sale of Fortegra, specifically, is priced at $1.65 billion, with Tiptree expecting to receive about $1.12 billion in gross proceeds. This divestiture is pending regulatory approvals and is anticipated to close in mid-2026. Meanwhile, DB Insurance Co., Ltd. has agreed to acquire Fortegra for the same amount, $1.65 billion, marking a significant move into the U.S. market by the Korean non-life insurer. The completion of this acquisition is contingent on Tiptree stockholder approval and regulatory clearances.
Veradace Partners, holding a 5% stake in Tiptree, has expressed opposition to the proposed sale. The firm has urged shareholders to reject the transaction, labeling it as undervalued and criticizing the deal’s structure as tax-inefficient. Veradace argues that the current terms benefit Tiptree management rather than shareholders. They have called on Tiptree’s board to reconsider the transaction terms to ensure direct returns to shareholders.
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