Holding company Tiptree has confirmed the closing of a previously announced $200 million strategic investment in its insurance subsidiary, The Fortegra Group, Inc., from Warburg Pincus, a global growth investor.
First announced in October last year, the investment gives Warburg Pincus an approximately 24% ownership in Fortegra on an as-converted basis.
Up to $60 million of the proceeds will be used to support Fortegra’s growth opportunities with the remainder used to repay Tiptree’s existing indebtedness and for general corporate purposes.
Fortegra has proven to be a consistently profitable specialty insurer with significant growth potential, underwriting over $2.3 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 2021 and the first quarter of 2022 demonstrates the growth trajectory and consistent underwriting results of the business,” Tiptree stated.
“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.”
Barclays acted as exclusive financial advisor during this transaction and Ropes & Gray LLP and Sidley Austin LLP provided legal counsel to Tiptree and Fortegra. BofA Securities acted as exclusive financial advisor and Willkie Farr & Gallagher LLP provided legal counsel to Warburg Pincus.
