DB Insurance Co., Ltd., the second largest non-life insurer in South Korea, is set to acquire 100% of the outstanding shares of The Fortegra Group, Inc., a US-based specialty insurer, for approximately $1.65 billion (approximately KRW 2.3 trillion) in cash, from Tiptree and Warburg Pincus.
The takeover is expected to provide DB Insurance with a platform for global growth in the world’s largest property and casualty (P&C) markets.
Expected to close in mid-2026, the agreement is subject to receipt of Tiptree stockholder approval, required regulatory approvals and other customary closing conditions.
The transaction will be funded in cash with internal resources from DB Insurance, and marks the largest US market entry by a Korean non-life insurer.
Through this deal, the Korean insurer enters into the surety and warranty sectors, while enhancing its earnings stability through broader geographic and business-line diversification.
DB Insurance first entered the US market in 1984 through its Guam branch and has since pursued a differentiated global business strategy, intending to establish “a second DB Insurance” abroad.
Florida-headquartered Fortegra was founded in 1978 with a portfolio that spans across specialty insurance, other insurance and services. The firm operates across all US states and eight European countries, maintaining a long-term combined ratio of approximately 90% and an A- financial strength rating from A.M. Best.
For 2024, Fortegra reported gross written premiums of $3.07 billion (KRW 4.4 trillion) and net income of $140 million (KRW 200 billion).
Additionally, this acquisition provides Fortegra with a strong capital base to support its growth, as it joins an insurance group with strong financial ratings from AM Best of A+ (Superior) and S&P of A+ (Stable).
Ki-Hyun Park, Head of Global Business, DB Insurance, commented, “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.”
Rick Kahlbaugh, Chief Executive Officer, Fortegra Group, added, “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.”
Michael Barnes, Executive Chairman, Tiptree, said, “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.”
Dan Zilberman, Global Head of Capital Solutions and Global Co-Head of Financial Services, Warburg Pincus, concluded, “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.”
Barclays and BofA Securities acted as financial advisors to Fortegra, while, Goldman Sachs & Co. LLC were the financial advisor. Ropes & Gray LLP and Sidley Austin LLP were Fortegra’s legal advisors.
Tatsuhiko Hoshina was the global strategy advisor to DB Insurance, while, Latham & Watkins LLP wsd the legal advisor.
