South Korea-based non-life insurer DB Insurance has completed its $1.65bn (Won2.49tn) all-cash purchase of US specialty insurer the Fortegra Group from Tiptree and Warburg Pincus.
The deal, first announced last September, closed after Tiptree shareholders approved it in December.
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It was carried out through a merger involving a wholly owned subsidiary of DB Insurance.
Fortegra, which had been jointly owned by insurance company Tiptree and private equity firm Warburg Pincus, is now a wholly owned subsidiary of DB Insurance.
Tiptree chairman and CEO Michael Barnes said: “We are pleased to have successfully completed the sale of Fortegra, which represents the culmination of a multi-year strategy to build and scale a global specialty insurance platform.”
In a press statement, the transaction is described as the “largest” US market entry by a South Korean non-life insurer.
Fortegra was founded in 1978 and is headquartered in Jacksonville, Florida.
In 2024, it reported gross written premiums of $3.07bn and net income of $140m.
The insurer is licensed in all 50 US states and has operations in eight European countries including Italy and the UK.
DB Insurance has had a presence in the US since 1984, when it opened a branch in Guam.
According to the statement, the acquisition adds warranty and surety lines to DB Insurance’s operations and expands the group’s geographic reach across major property and casualty markets.
For Tiptree, the transaction results in a pro-forma book value of around $23.80 per diluted share.
The company has also approved a new $20m share repurchase programme linked to the deal.
Warburg Pincus capital solutions global head and financial services global co-head Dan Zilberman added: “We have greatly valued the opportunity to work alongside Rick [Fortegra Group CEO Richard S Kahlbaugh], the Fortegra management team and our partners at Tiptree during this important period for the company.
“As the company enters this next phase, Fortegra is coming from a place of strength, and we look forward to following their future success.”
