DB Insurance has moved closer to making the largest US market entry by a Korean non-life insurer, after shareholders of Tiptree, a US investment management firm, approved the planned merger of specialty insurer Fortegra and a wholly owned DB subsidiary.
The move, endorsed by 81% of shareholders, was announced by Tiptree in a 3 December press release.
The deal provides for the acquisition by the South Korean non-life insurer of 100% of the outstanding shares of the US-based specialty insurer for around $1.65bn. The transaction will proceed as an all-cash deal, through the merger of the DB unit with and into Fortegra, with Fortegra surviving as a wholly owned subsidiary of DB Insurance.
The merger is expected to be completed in mid-2026, subject to customary closing conditions, including the receipt of required regulatory approvals.
The acquisition is expected to provide DB Insurance with a platform for global growth in the world’s largest P&C markets, enable entry into the profitable surety and warranty sectors, and enhance earnings stability through broader geographic and business-line diversification.