Fortegra’s Excess and Surplus Subsidiary assigned the Financial Strength Rating of A-
JACKSONVILLE, Fla.-- Fortegra Financial Corporation (“Fortegra”), a leading specialty insurer and subsidiary of Tiptree Inc. (NASDAQ: TIPT) (“Tiptree”), announced today AM Best assigned the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” to Fortegra Specialty Insurance Company (FSIC) (Arizona), the newly established excess and surplus lines (E&S) subsidiary of Fortegra. The outlook assigned to these Credit Ratings (ratings) is stable. The company will begin underwriting excess and surplus lines programs concurrent with this announcement.
“We are committed to the agent distribution model and accelerating our ability to respond to opportunities presented to us by our agents. Adding an E&S company to our portfolio furthers that goal,” said Richard Kahlbaugh, Fortegra’s Chief Executive Officer. “Through FSIC, Fortegra will continue to marry speed to market, thorough underwriting and a strong balance sheet to deliver new and innovative insurance programs through an agent-focused distribution model.”
AM Best Assigns Credit Ratings to Fortegra Specialty Insurance Company
OLDWICK, N.J.—November 5, 2020-- AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Fortegra Specialty Insurance Company (Fortegra Specialty) (Scottsdale, Arizona). Fortegra Specialty is ultimately owned by Tiptree Inc. [(NASDAQ: TIPT], the parent company of Fortegra Financial Corporation. The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Fortegra Specialty’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile, and appropriate enterprise risk management. Fortegra Specialty is being added as a member of the Fortegra P&C Group due to its strategic role in the consolidated organization, shared operations and management, and a pooling agreement with its affiliated companies.
Fortegra Specialty is a newly established, Arizona-domiciled insurance company that will offer surplus lines products not offered through its affiliated companies. The company was capitalized initially with a $55 million contribution from the parent company. AM Best notes that initial projections forecast high growth trends in the early years, benefiting from existing managing general agency relations with its affiliated companies. AM Best will continue to monitor the ability of the company to execute on its business strategy and maintain appropriate levels of capitalization.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
About Fortegra Financial Corporation
Fortegra Financial Corporation (a Tiptree Inc. company (NASDAQ: TIPT), is a leading provider of specialty insurance and warranty solutions, and is the second-largest credit insurer in the United States. Fortegra and its subsidiaries provide a comprehensive and diverse set of best-in-class insurance products and warranty solutions available across the United States and around the world. Fortegra leverages a team of experienced underwriters and proprietary artificial intelligence technology to enhance the underwriting process to deliver a broad array of solutions that provide superior coverage and value to its customers.
Since 1978, the Company’s collaborative approach and innovative products have fueled rapid growth and increasing demand from both domestic and international partners. Fortegra holds AM Best Financial Strength Rating of A- (Excellent) Financial Category VIII. For more information on Fortegra visit: https://www.fortegra.com/
Meredith Zaritheny, Prosek Partners