CEO says Fortegra will operate independently as part of DB Insurance

South Korea-based DB Insurance Co. Ltd. says it has been in the U.S. since 1984 through a Guam branch, but its $1.65 billion acquisition of The Fortegra Group Inc. will significantly expand its U.S. business.

DB announced the agreement to buy Jacksonville-based Fortegra on Sept. 26 and gave no details on how it will affect operations of the specialty insurance company.

However, Fortegra CEO Rick Kahlbaugh said in a note to employees that the deal will be positive for the company.

He said Fortegra will operate independently as part of DB's specialty insurance business.

"DB seeks to expand in the U.S. and enter the European specialty insurance markets, and Fortegra is a natural fit for their strategy and vision," Kahlbaugh said in the note that was included in a Securities and Exchange Commission filing.

"This acquisition also will represent a natural evolution of our story — one that strengthens our ability to continue living our vision of being the underwriter of choice for reliable and quality agents," he said.

Kahlbaugh also sought to reassure employees about the deal in the note.

"Your role and benefits remain unchanged during this transition, and we will continue to invest in your career development," he said.

"Once the transaction is closed, we will continue to focus on our core value drivers that matter most for long-term success."

Fortegra's parent company Tiptree Inc. said in its annual report Fortegra had 1,144 employees across 24 offices in nine countries as of Dec. 31.

It did not say how many of the employees were in the U.S. or in the Jacksonville headquarters.

Tiptree acquired Fortegra for $214 million in 2014 and the company has grown since then, including establishing a European subsidiary in 2018.

Then-publicly traded Fortegra reported revenue of $179 million in the first six months of 2014, before the deal was announced, and it rose to $994 million in the first six months of 2025.

Tiptree tried to take Fortegra public again twice, in 2021 and 2024, but called off the sale both times because it couldn't get the price it wanted.

Investment firm Warburg Pincus LLC acquired a 24% stake in Fortegra in 2021 after the first attempt at an initial public offering was withdrawn.

Tiptree remains majority owner and Fortegra is the largest business in the investment company's portfolio.

Tiptree said in an investor presentation it will be "patiently and actively pursuing new investment opportunities" after the Fortegra deal closes, which is expected in mid-2026.

DB says it was established as Korea's first automobile insurance company in 1962 and is now the second-largest nonlife insurer in South Korea.

DB reported 2024 revenue of 17.2 trillion South Korean wan, equivalent to $12.3 billion in U.S. dollars, according to financial analysis firm Morningstar.

The company's stock is traded on the Korea Stock Exchange.

Insurance rating agency AM Best rates DB as "superior" in financial strength, citing a strong operating performance and favorable business profile.

"DBI remains one of the leading non-life insurers in South Korea, with a market share of about 19% in terms of insurance service revenue in 2024," AM Best said in a July report.

"The company benefits from a strong brand in its domestic market and its diversified product offerings, which includes long-term, auto and general insurances," it said.

"While DBI has a limited presence outside its domestic market, it has been cautiously seeking inorganic growth in the foreign market," it said.

So the addition of Fortegra fits into its strategy.

McKesson spinning off medical-surgical business

McKesson Corp. is planning a spinoff of its medical-surgical solutions business, which apparently includes its Jacksonville operations.

The media relations department of Texas-based McKesson did not respond to email questions about its number of employees in Jacksonville and whether all of them would be part of the spinoff company.

The health care services company has had a Jacksonville unit since acquiring Jacksonville-based medical supply distributor PSS World Medical Inc. for $2.1 billion in 2013.

During a Sept. 23 investor day presentation, Chief Financial Officer Britt Vitalone said the spinoff will help simplify McKesson's corporate structure.

"The medical separation reflects our commitment to long-term and sustained value creation, and we believe that it positions both McKesson and the medical segment for future growth and success," Vitalone said, according to a company transcript of the presentation.

"We believe that the separation is going to create two well-positioned, well-capitalized healthcare leaders. For McKesson, McKesson will continue to persist as a diversified North American healthcare services leader, accelerating growth and capital allocation precision," he said.

The business will be anchored by positions in oncology, multispecialty and biopharma, he said.

"For Medical-Surgical, we believe that this separation will allow the business to emerge as a focused leader in alternate site medical supplies and distribution solutions, with scale, breadth of capabilities and strong brands, and free to pursue an independent strategy with its own capital structure," Vitalone said.

"We're confident that this separation will enable sharper focus, sharper strategic execution and operating focus, reduced complexity and enhanced execution overall, improved capital allocation discipline and accelerated performance and financial flexibility," he said.

The medical-surgical business produced revenue of $11.4 billion and operating profit of $773 million in the fiscal year ended March 31.

McKesson will start the spinoff process with an initial public offering of part of the business and spin off the rest later, Vitalone said, but he didn't give more details about how that will work.

Vitalone said the separation of that business "presents manageable complexity," since it operates separately to a large extent.

McKesson first announced the spinoff in May and the company is already working on the plan, which it doesn't expect to be completed until 2027, he said.