South Korea's second largest non-life insurer DB Insurance will acquire 100% of the outstanding shares of the US based specialty insurer The Fortegra Group for KRW2.3tn ($1.65bn).
The South Korean insurer will acquire the company in cash from Tiptree and Warburg Pincus and the transaction will be funded with internal resources from DB Insurance. The transaction will mark the largest U.S. market entry by a Korean non-life insurer.
DB Insurance first entered the US market in 1984 through its Guam branch and has since pursued a differentiated global business strategy with the goal of establishing “a second DB Insurance” abroad. The decision to acquire Fortegra, with 2024 annual premiums of KRW4.4tn, reflects a strategic step to secure scale and capabilities as a global insurance group.
Founded in 1978 and headquartered in Jacksonville, Florida, Fortegra has built a portfolio spanning specialty insurance, other insurance and services. The company operates across the US and Europe, supported by strong underwriting discipline and risk management, and has maintained a long-term combined ratio of approximately 90%.
For 2024, Fortegra reported gross written premiums of $3.07bn (KRW4.4tn) and net income of $140m. It operates in all 50 US states and eight European countries, including the UK and Italy, and holds an A- financial strength rating from A.M. Best.
The acquisition is expected to provide DB Insurance with a platform for global growth in the world’s largest P&C markets, enable entry into the profitable surety and warranty sectors, and enhance earnings stability through broader geographic and business-line diversification.
DB Insurance head of global business Ki-Hyun Park said, “By combining Fortegra’s expertise with DB Insurance’s global network and capital strength, we aim to enhance customer value and market competitiveness while simultaneously achieving our dual objectives of increasing shareholder value and contributing to the national economy.”
Fortegra group CEO Rick Kahlbaugh said, “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.”
DB Insurance was established as Korea’s first automobile insurance company in 1962 and today is the second largest non-life insurer in South Korea, servicing over 11m customers. DB Insurance offers a diversified portfolio including long-term medical, auto, and property and casualty insurance policies.
Fortegra, via its subsidiaries, has for over 45 years underwritten risk management solutions as a multinational specialty insurer whose insurance subsidiaries have an A.M. Best Financial Strength Rating of A- (Excellent) and an A.M. Best Financial Size Category of ‘X’,