DB Insurance Co. is closing in on acquiring Florida-based specialty insurer Fortegra in a transaction valued at up to 2 trillion won ($1.5 billion), according to people familiar with the matter. The deal would represent the largest overseas acquisition by a Korean insurance company.
The South Korean non-life insurer has completed due diligence on Jacksonville-headquartered Fortegra and is negotiating final terms with owner Tiptree Inc., sources said. DB Insurance aims to finalize the agreement by August, seeking to purchase Fortegra’s entire equity stake.
The acquisition follows a competitive sales process that saw Japan’s Dai-ichi Life Holdings exit talks, leaving DB Insurance as the remaining serious bidder. Fortegra reported roughly $5.4 billion in assets and $1.97 billion in revenue for 2024, marking a 23% year-over-year increase.
The target specializes in niche automotive insurance products, including vehicle service contracts and gap coverage. For DB Insurance, the deal offers entry into the lucrative American specialty insurance market while diversifying beyond its domestic operations, which face headwinds from Korea’s aging population and declining birth rates.
The transaction would consume approximately one-quarter of DB Insurance’s capital and exceed its 2024 net profit of 1.77 trillion won ($1.3 billion). Tiptree, which owns about 79% of Fortegra alongside private equity firm Warburg Pincus, had previously planned a public offering for the specialty insurer before pivoting to a sale process.
