NEW YORK – (BUSINESS WIRE) – Tiptree Inc. (NASDAQ: TIPT) (“Tiptree” or the “Company”), The Fortegra Group, Inc., today announced the closing of the $ 200 million strategic investment in its insurance subsidiary. (“Fortegra”) from Warburg Pincus, a leading global growth investor.
The investment gives Warburg Pincus an approximately 24% ownership in Fortegra on an as-converted basis. Tiptree’s existing indebtedness and for general corporate purposes.
This transaction highlights the 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 $ 2.3 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 shows the growth trajectory and consistent underwriting results of the business. With the backlash 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 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.
Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and middle market companies with the mission of building long-term value. Established in 2007, we have a significant track record investing in the insurance sector and across a variety of other industries, including mortgage origination, specialty finance and shipping. With proprietary access and flexible capital base, we are looking to unlock the potential value of their businesses. For more information, please visit tiptreeinc.com and follow us on LinkedIn.
The Fortegra Group, LLC is a global specialty insurer. Fortegra and its subsidiaries underwrite and administer a comprehensive and diverse set of approved and surplus insurance products and warranty solutions across the United States and around the world. For over 40 years, Fortegra’s collaborative approach, experienced team, and innovative products have been growing consistently and increasing demand from both domestic and international partners. The Company holds the AM Best Financial Strength Rating of A- (Excellent). For more information on Fortegra, visit: https://www.fortegra.com.
About Warburg Pincus
Warburg Pincus is a leading global growth investor. The firm has more than $ 80 billion in assets under management. The firm’s active portfolio of more than 245 companies is highly diversified by stage, sector, and geography. Warburg Pincus is an experienced partner in managing teams looking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised more than $ 100 billion in over 1,000 companies in more than 40 countries. The firm is headquartered in New York with offices in Amsterdam, Beijing, Berlin, Hong Kong, Houston, London, Luxembourg, Mumbai, Mauritius, San Francisco, São Paulo, Shanghai, and Singapore. For more information please visit www.warburgpincus.com. Follow us on LinkedIn.
Special Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” which involve risks, uncertainties and contingencies, many of which are beyond Tiptree’s control, which may cause actual results, performance, or achievements materially from anticipated results, performance, or achievements. All statements contained herein are clearly not forward-looking, and the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “might,” “plan, “” Project, “” should, “” target, “” will, “” view, “” confident, “or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about Tiptree’s plans, objectives, expectations and intentions. The forward-looking statements are not guarantees of future performance, and are not subject to any other factors, -looking statements. Our actual results could differ materially from those described in the section entitled “Risk Factors” in Tiptree’s Annual Report on Form 10-K, and as described in the Tiptree’s other filings with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only to the date of this release. The factors described therein are not necessarily important. Other unknown or unpredictable factors could also affect our forward-looking statements. Currently, our actual performance could differ materially from the results described or anticipated by our forward-looking statements. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Except as required by the federal securities laws, we undertake no obligation to update any forward-looking statements.