DB Insurance, led by CEO Jong-Pyo Jeong, in collaboration with Tiptree and Warburg Pincus, recently announced a definitive agreement for DB Insurance to acquire 100% of the outstanding shares of The Fortegra Group. Fortegra, a specialty insurer based in the United States, will be acquired for approximately $1.65 billion, equivalent to roughly KRW 2.3 trillion. This substantial transaction will be financed entirely through DB Insurance’s internal cash reserves. This monumental deal represents the largest entry into the U.S. market by a Korean non-life insurer to date, signifying a significant strategic move in the global insurance landscape.
DB Insurance’s journey into the U.S. market began in 1984 with the establishment of its branch in Guam. Since then, the company has consistently pursued a distinctive global business strategy, aiming to establish a robust international presence and effectively create a “second DB Insurance” abroad. The decision to acquire Fortegra, an organization that reported annual premiums of KRW 4.4 trillion in 2024, is a deliberate and strategic step designed to expand DB Insurance’s scale and capabilities as a prominent global insurance group. This acquisition is poised to solidify its position in the international market.
Fortegra, founded in 1978 and headquartered in Jacksonville, Florida, has successfully cultivated a diverse portfolio that encompasses specialty insurance, various other insurance products, and related services. The company boasts extensive operations across both the United States and Europe, underpinned by a rigorous approach to underwriting discipline and comprehensive risk management practices. This commitment to sound financial management is reflected in its impressive long-term combined ratio, which has consistently hovered around 90%.
In 2024, Fortegra reported a remarkable financial performance, with gross written premiums reaching $3.07 billion, equivalent to KRW 4.4 trillion. And the company recorded a net income of $140 million (KRW 200 billion). Its operational footprint is expansive, covering all 50 U.S. states and eight European countries, including key markets such as the U.K. and Italy. Fortegra’s financial stability is further underscored by its A- financial strength rating from A.M. Best.
This strategic acquisition is expected to provide DB Insurance with a robust platform for driving global growth, particularly in the world’s largest property and casualty (P&C) markets. It will also facilitate DB Insurance’s entry into the highly profitable surety and warranty sectors, diversifying its business offerings. Moreover, the transaction is expected to enhance DB Insurance’s earnings stability through a broader geographic presence and diversification across various business lines.
For Fortegra, this agreement is equally beneficial. It will gain access to a robust capital base, which is crucial for supporting its continued profitable growth trajectory. By joining an insurance group with strong financial ratings, specifically AM Best A+ (Superior) and S&P A+ (Stable), Fortegra is well-positioned to strengthen its market standing and pursue further expansion opportunities.
Advisors: Barclays and BofA Securities are serving as financial advisors to Fortegra. Goldman Sachs is serving as a financial advisor and Tatsuhiko Hoshina as a global strategy advisor to DB Insurance. Ropes & Gray and Sidley Austin are serving as legal advisors to Fortegra. Latham & Watkins is serving as legal advisor to DB Insurance.
KEY QUOTES:
“This acquisition will mark the first-ever purchase of a U.S. insurer by a Korean non-life insurer and represents a turning point for DB Insurance in its journey to become a global insurer. 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.”
Ki-Hyun Park, Head of Global Business at DB Insurance
“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.”
Rick Kahlbaugh, CEO of Fortegra Group
“For more than a decade we have had the pleasure of working closely with Rick and his team to nurture Fortegra’s growth and deliver a track record of consistent performance. As Fortegra embarks on its next chapter, we remain proud of what we’ve built together and confident in the company’s continued success.”
Michael Barnes, Tiptree’s Executive Chairman
“Fortegra successfully accelerated its growth and cemented its position as a leading global specialty insurer during our partnership with the company. We, along with our friends at Tiptree, are proud to have supported Rick and the Fortegra team through this exciting period, and are highly confident that DB Insurance is the right partner for Fortegra in this next chapter of its growth.”
Dan Zilberman, Global Head of Capital Solutions and Global Co-Head of Financial Services at Warburg Pincus
