(Reuters) -U.S. investment manager Tiptree said on Thursday that South Korea’s DB Insurance would acquire its specialty insurance unit, The Fortegra Group, for about $1.65 billion in cash.
The sale would also mark an exit for Warburg Pincus, which holds a 24% stake in the U.S. specialty carrier. The private equity firm invested in 2022, when Fortegra was generating about $60 million in operating earnings.
Nasdaq-listed Tiptree’s stock slid on Thursday afternoon after The Insurer first reported the deal, noting that the transaction valued Fortegra at about twice its book value.
Jacksonville, Florida-based Fortegra was founded in 1978 and acquired by Tiptree in 2014. It offers specialty programs, consumer warranty and credit protection products.
For DB Insurance, the acquisition provides a U.S. platform for specialty growth, broadening its reach beyond South Korea, where it ranks among the largest non-life insurers.
The deal is expected to close in the first quarter of 2026.
The sale to DB comes more than a year after Fortegra withdrew its plans for an initial public offering in the United States.
(Reporting by Anusha Shah and Mrinmay Dey in Bengaluru; Editing by Janane Venkatraman)
