US-based Fortegra, the insurance subsidiary of Tiptree, has received $200m in investment from Warburg Pincus.
Warburg Pincus will gain approximately 24% ownership in Fortegra on a fully diluted basis.
Fortegra is a specialty insurer that underwrites over $2bn in gross written premium and premium equivalents annually.
The insurer and its subsidiaries underwrite a wide range of admitted and surplus insurance products and warranty solutions across the US and Europe.
Fortegra CEO Rick Kahlbaugh said: “This transaction represents the collaboration of industry experience, capital and investment acumen that will be the catalyst to accelerate Fortegra’s growth as a global specialty insurer.
“Joining forces with Warburg Pincus is yet another chapter in the Fortegra story and together Fortegra, Tiptree and Warburg Pincus will accelerate the exceptional growth and profitability of Fortegra.”
With the latest investment and backing from Triptree, Fortegra will be able to focus more on the specialty admitted and E&S lines.
Warburg Pincus managing director and head of special situations Dan Zilberman said: “Fortegra’s talented management team has built a world-class specialty insurance platform delivering high-quality products and services to its customers worldwide. We are excited to partner with Rick Kahlbaugh and Tiptree’s experienced management team and are committed to Fortegra’s continued growth and long-term success.”
Warburg Pincus has invested in companies including Cox Insurance, Foundation Risk Partners, Aeolus Re, Arch Capital, Max Life, McGill and Partners, ICICI Lombard Insurance, RenaissanceRe, SBI General Insurance, PetPlan and Watford Holdings.
Tiptree executive chairman Michael Barnes said: “This investment accomplishes many of our strategic goals including raising capital to accelerate Fortegra’s growth and recapitalising both companies balance sheets through the repayment of indebtedness.”