South Korea’s DB Insurance finalises $1.65bn Fortegra acquisition

South Korea-based non-life insurer DB Insurance has completed its $1.65bn (Won2.49tn) all-cash acquisition of US specialty insurer the Fortegra Group from Tiptree and Warburg Pincus.

The deal, archetypal announced past September, closed aft Tiptree shareholders approved it successful December.

It was carried retired done a merger involving a wholly owned subsidiary of DB Insurance.

Fortegra, which had been jointly owned by security institution Tiptree and backstage equity steadfast Warburg Pincus, is present a wholly owned subsidiary of DB Insurance.

Tiptree president and CEO Michael Barnes said: “We are pleased to person successfully completed the merchantability of Fortegra, which represents the culmination of a multi-year strategy to physique and standard a planetary specialty security platform.”

In a property statement, the transaction is described arsenic the “largest” US marketplace introduction by a South Korean non-life insurer.

Fortegra was founded successful 1978 and is headquartered successful Jacksonville, Florida.

In 2024, it reported gross written premiums of $3.07bn and nett income of $140m.

The insurer is licensed successful each 50 US states and has operations successful 8 European countries including Italy and the UK.

DB Insurance has had a beingness successful the US since 1984, erstwhile it opened a subdivision successful Guam.

According to the statement, the acquisition adds warranty and surety lines to DB Insurance’s operations and expands the group’s geographic scope crossed large spot and casualty markets.

For Tiptree, the transaction results successful a pro-forma publication worth of astir $23.80 per diluted share.

The institution has besides approved a caller $20m stock repurchase programme linked to the deal.

Warburg Pincus superior solutions planetary caput and fiscal services planetary co-head Dan Zilberman added: “We person greatly valued the accidental to enactment alongside Rick [Fortegra Group CEO Richard S Kahlbaugh], the Fortegra absorption squad and our partners astatine Tiptree during this important play for the company.

"As the institution enters this adjacent phase, Fortegra is coming from a spot of strength, and we look guardant to pursuing their aboriginal success.”

"South Korea’s DB Insurance finalises $1.65bn Fortegra acquisition" was primitively created and published by Life Insurance International, a GlobalData owned brand.

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