Exclusive: DB Insurance to acquire Fortegra in $1.65 billion deal, Warburg Pincus to exit stake

DB Insurance

25/09/2025 15:16

By James Thaler

Sept 25 - (The Insurer) - South Korea’s DB Insurance has agreed to acquire Fortegra in a deal valuing the U.S. specialty carrier at around $1.65 billion, people familiar with the matter told The Insurer.

The transaction is understood to not yet be signed, the sources said, but is expected to be announced imminently.

The sources said the transaction is expected to be announced on Friday morning in South Korea, or Thursday evening in the U.S., and will see private equity firm Warburg Pincus exit its 24% stake.

Warburg Pincus invested in 2022, when Fortegra was generating about $60 million in operating earnings. That figure more than doubled to more than $125 million last year, while premiums grew roughly 50% over same the period, sources said.

Fortegra has expanded significantly in recent years, scaling across warranty and specialty lines while investing in technology such as AI-enabled underwriting tools. The company’s strong execution and profitability helped draw strategic interest after a planned IPO in 2023 was withdrawn owing to volatile market conditions.

A formal sale process was launched in January with Barclays, KBW and BofA Securities engaged as advisers. DB stepped away from negotiations in early July before talks were revived later that month.

 In a subsequent securities filing, DB confirmed that it had completed due diligence and that discussions were ongoing.

DB ultimately emerged as the preferred buyer.

The transaction values Fortegra at about two times book value, people briefed on the matter added. The deal is expected to close in the first quarter of 2026.

Founded in 1978 and acquired by Tiptree in 2014, Jacksonville, Florida-based Fortegra offers specialty programs, consumer warranty and credit protection products.

For DB, the acquisition provides a U.S. platform for specialty growth with a focus on the MGA space and U.S. credit and surety lines, diversifying its operations beyond South Korea, where it is one of the country’s largest non-life insurers.

Warburg Pincus and Fortegra declined to comment. DB Insurance did not immediately respond to requests for comment.