AM Best Places Credit Ratings of The Fortegra Group, Inc.’s Insurance Subsidiaries Under Review With Positive Implications

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has placed under review with positive implications the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) of the operating subsidiaries of The Fortegra Group, Inc. (Fortegra) (headquartered in Jacksonville, FL). Fortegra is a wholly owned subsidiary of its publicly traded parent company, Tiptree Inc. [NASDAQ: TIPT]. The property/casualty (P/C) operating subsidiaries of Fortegra include Lyndon Southern Insurance Company (Wilmington, DE); Insurance Company of the South (Athens, GA); Response Indemnity Company of California (Redondo Beach, CA); Blue Ridge Indemnity Company (Wilmington, DE); Fortegra Specialty Insurance Company (Scottsdale, AZ); and Fortegra Europe Insurance Company SE (Malta). These companies are collectively referred to as Fortegra P&C Group. Furthermore, AM Best has placed under review with positive implications the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Fortegra Belgium Insurance Company NV (Belgium).

In addition, AM Best has placed under review with positive implications the FSR of A- (Excellent) and the Long-Term ICRs of “a-” (Excellent) of Fortegra’s life/health operating subsidiaries, which include Life of the South Insurance Company (Athens, GA); Bankers Life Insurance Company of Louisiana (Marksville, LA); and Southern Financial Life Insurance Company (Scottsville, KY). These companies are collectively referred to as Life of the South Group.

Lastly, AM Best has placed under review with positive implications the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Fortegra Indemnity Insurance Company, LTD. (Turks and Caicos).

The under review with positive implications status reflects AM Best’s view that the announced acquisition of Fortegra by DB Insurance Co., Ltd., if completed as contemplated and subject to regulatory approvals and customary closing conditions, could enhance Fortegra’s financial flexibility, operating scale and execution capabilities. The action also considers Fortegra’s strategic importance to the prospective parent as a platform for international growth and expansion. The ratings will remain under review with positive implications pending the close of the transaction and AM Best’s evaluation of parental support, integration plans, and the expected impact on the organization’s balance sheet strength, operating performance, business profile and enterprise risk management. AM Best will continue discussions with management throughout this period.

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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.