NEW YORK–(BUSINESS WIRE)–Tiptree Inc. (NASDAQ: TIPT) (“Tiptree” or the “Company”), today announced the closing of the previously announced $200 million strategic investment in its insurance subsidiary, The Fortegra Group, Inc. (“Fortegra”) of Warburg Pincus, a leading global growth investor.
The investment gives Warburg Pincus an approximate 24% stake in Fortegra on an as-converted basis. Up to $60 million of the proceeds will be used to support Fortegra’s growth opportunities, with the remainder used to pay down existing Tiptree debt and for general corporate purposes.
This transaction highlights the underlying intrinsic value of Fortegra for Tiptree shareholders, representing an important milestone for the Company. Fortegra is a fast-growing and consistently profitable specialty insurer, underwriting more than $2.3 billion in gross written premiums and premium equivalents annually. The company underwrites and administers a variety of specialty insurance products and warranty solutions in the United States and Europe.
Fortegra’s strong financial performance in 2021 and the first quarter of 2022 demonstrates the company’s growth trajectory and consistent underwriting results. With the support of Tiptree and Warburg Pincus, Fortegra is entering its next phase of growth focused on admitted specialty lines and E&S, while maintaining its historically strong underwriting principles.
Barclays acted as exclusive financial advisor and Ropes & Gray LLP and Sidley Austin LLP provided legal advice to Tiptree and Fortegra. BofA Securities acted as exclusive financial advisor and Willkie Farr & Gallagher LLP provided legal advice to Warburg Pincus.
Tiptree Inc. (NASDAQ: TIPT) allocates capital to select small and medium-sized businesses with a mission to create long-term value. Founded in 2007, we have significant investment experience in the insurance industry and a variety of other industries, including mortgage origination, specialty finance and shipping. With exclusive access and a flexible capital base, we seek to uncover compelling investment opportunities and help management teams unlock the full value potential of their businesses. For more information, 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 qualified and excess insurance products and warranty solutions in the United States and around the world. For over 40 years, Fortegra’s collaborative approach, experienced team and innovative products have fueled steady growth and increasing demand from national and international partners. The company holds an AM Best Financial Strength Rating of A- (Excellent). For more information about Fortegra, visit: https://www.fortegra.com.
About Warburg Pincus
Warburg Pincus is a leading global growth investor. The company has over $80 billion in assets under management. The company’s active portfolio of over 245 companies is highly diversified by stage, sector and geography. Warburg Pincus is an experienced partner to management teams looking to build sustainable businesses with lasting value. Founded in 1966, Warburg Pincus has raised 21 private equity funds and 2 real estate funds, which have invested over $100 billion in more than 1,000 companies in over 40 countries. The company 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, visit www.warburgpincus.com. Follow us on LinkedIn.
Special note regarding forward-looking statements
This press release contains “forward-looking statements” that involve risks, uncertainties and contingencies, many of which are beyond Tiptree’s control, which may cause actual results, performance or achievements to differ materially from the results, anticipated performance or achievement. All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate”, “believe”, “estimate”, “expect”, “intend”, ” may”, “could”, “plan”, “, “view”, “confident” or similar expressions are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, statements about plans , objectives, expectations and intentions of Tiptree. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, many of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or anticipated in the forward-looking statements. s statements. Our actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including, but not limited to, those described in the section titled “Risk Factors” in Tiptree’s Annual Report on Form 10- K, and as described in Tiptree’s other SEC filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The factors described herein are not necessarily all important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors could also affect our forward-looking statements. Therefore, our actual performance could be materially different 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 federal securities laws, we assume no obligation to update forward-looking statements.