DB Insurance Co., Ltd. completed its US$1.65bn acquisition of specialty insurer The Fortegra Group, Inc. on Friday, marking the largest entry into the US market by a Korean non-life insurer.
DB Insurance bought 100% of Fortegra’s outstanding shares from Tiptree and Warburg Pincus, valuing the deal at approximately KRW2.31 trillion. The deal, first announced in September, closed via a reverse triangular merger, in which a newly created DB Insurance subsidiary merged into Fortegra.
The transaction was funded with DB Insurance’s own capital, representing approximately 24.6% of its equity capital and about 3.5% of its total assets. Fortegra now operates as a wholly owned subsidiary of the South Korean insurer, with DB securing full managerial control of the US-based company.
However, Fortegra will continue to operate independently, retaining its existing leadership team, distribution relationships and underwriting approach. The company operates across all 50 US states and eight European countries, offering property and casualty, life insurance and related service businesses.
Richard Kahlbaugh, Chairman and CEO of Fortegra, said the two companies intend to build a recognised leader in the global specialty insurance market. “The closing of this acquisition is a starting point. As part of DB Insurance, Fortegra is positioned to expand our business geographically, enhance our capabilities and deepen our market presence in the US, Europe, the United Kingdom and Asia,” he said.
