DB Insurance Acquires U.S.'s Fortegra for $1.6 Billion to Expand Global Footprint

South Korea's DB Insurance has agreed to acquire Fortegra, a U.S.-based specialty and warranty insurance group, in a $1.6 billion transaction, marking DB's largest expansion into the American insurance market and its biggest international acquisition to date. Fortegra, valued at about 0.83 times revenue, operates through admitted and non-admitted carriers and has a notable presence in program business and auto-adjacent protection lines.

The acquisition aligns with DB Insurance's strategy to expand globally amid slowing domestic premium growth, following previous investments in Vietnam's insurance sector earlier in 2024. Founded in 1962 as Korea’s first public auto insurer, DB Insurance has positioned itself as a global finance group since a rebranding in 2017, with ambitions to grow beyond its domestic market.

Fortegra's established operations in the United States and Europe, including specialty lines in Malta, Belgium, and the UK, complement DB's international growth plans and provide exposure to resilient, fee-based revenue sectors within insurance. Previously, Fortegra has grown through acquisitions and private equity investments, including a significant minority stake from Warburg Pincus, and an aborted IPO in 2021. This deal enhances DB Insurance's program distribution capabilities and strengthens its footprint in warranty and automotive protection insurance, sectors poised to sustain stable market demand and offer diversified revenue streams.