Tiptree has secured a $200 million strategic investment in its insurance subsidiary, The Fortegra Group (Fortegra) from Warburg Pincus.
The investment will give Warburg Pincus an approximate 24 per cent ownership in Fortegra on a fully diluted basis and is expected to close in the first quarter 2022. This transaction highlights the underlying intrinsic value of Fortegra to Tiptree shareholders, representing a significant milestone for the Company. Fortegra is a rapidly growing and consistently profitable specialty insurer, underwriting over $2.0 billion of gross written premiums and premium equivalents annually. The business underwrites and administers a variety of specialty insurance products and warranty solutions across the United States and Europe.
Fortegra’s strong financial performance in 2020 and the first half of 2021 demonstrates the growth trajectory and consistent underwriting results of the business. With the backing of Tiptree and Warburg Pincus, Fortegra enters its next phase of growth focused on the specialty admitted and E&S lines, while maintaining its historically strong underwriting principles.
Tiptree’s Executive Chairman Michael Barnes says: “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.
Read more/Source: Private Equity Wire
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