Fortegra, the specialty insurance subsidiary of holding company Tiptree, has publicly filed a Registration Statement on Form S-1with the Securities and Exchange Commission (SEC) for an initial public offering (IPO).
Earlier this month, alongside the announcement of its third quarter results, Tiptree highlighted its plans to take Fortegra public.
The size of the proposed offering and price range for the proposed offering have not yet been determined.
The company expects the Fortegra IPO to be a primary offering with the proceeds used to execute its growth strategy and for working capital and general corporate purposes.
Tiptree expects to maintain majority ownership of Fortegra and “believes a Fortegra IPO will create a platform to serve the future capital needs of the business.”
According to the announcement, Fortegra intends to list securities on the New York Stock Exchange under the symbol “TFG”.
“The Registration Statement related to these securities has been filed with the SEC but has not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. The IPO is expected to take place after the SEC completes its review process, subject to market and other conditions,” the firm noted.
Goldman Sachs & Co. LLC, J.P. Morgan and Jefferies are acting as joint lead bookrunning managers for the proposed offering. Barclays is acting as joint bookrunning manager for the proposed offering.
For this year’s third quarter Fortegra saw an income before taxes of $35.7 million, up $20.4 million. Revenues grew to $406.8 million driven by premium growth in specialty E&S and admitted lines, and services businesses in the US and Europe, Tiptree reported.
Fortegra’s gross written premiums and premium equivalents increased to $834.5 million, driven by specialty insurance lines and services businesses in the US and Europe; and unearned premiums and deferred revenues grew to $2.3 billion.
The combined ratio for Fortegra in Q3 was 90.2%, compared to 91.3% in Q3’22, driven by consistent underwriting performance and the scalability of Fortegra’s operating platform.
