DB Insurance Acquires U.S. Auto Insurer Fortegra for 2.3 Trillion Won

Largest Overseas M&A Deal Ever by a Korean Insurer

DB Insurance announced on September 26 that it has signed a contract to acquire 100% of the issued shares of the American auto insurance company The Fortegra Group for $1.65 billion (approximately 2.3 trillion won). This marks the largest-ever overseas acquisition by a Korean insurance company.

DB Insurance, which first entered the U.S. market in 1984 with its Guam branch, has been expanding its overseas operations with the goal of establishing a "second DB Insurance" in the United States. The Fortegra Group, founded in 1978, is a global insurance group headquartered in Jacksonville, Florida. It has built a portfolio centered on insurance-related services such as specialty insurance, credit and surety insurance, and guarantees. Leveraging its expertise in underwriting and risk management in the United States and Europe, the company has maintained a stable combined ratio of around 90% over a long period. It continues to build a stable portfolio in both insurance and insurance-related service businesses.

DB Insurance Headquarters. DB Insurance

As of last year, The Fortegra Group recorded gross written premiums (GWPPE) of $3.07 billion (approximately 4.4 trillion won) and a net profit of $140 million (about 200 billion won). The company currently operates across the United States, the United Kingdom, Italy, and six other European countries, and holds an AM Best credit rating of A-.

Through this acquisition, DB Insurance plans to establish a business platform for global growth by making a full-fledged entry into the world's largest non-life insurance markets in the United States and Europe. The company expects increased earnings stability through entry into the global surety insurance market and diversification of risks by country and insurance type.

To proactively address the challenges of a shrinking and aging domestic population, DB Insurance has been continuously expanding its overseas business, focusing on the three major regions of the United States, China, and Southeast Asia. Last year, the company acquired stakes in Vietnam National Aviation Insurance (VNI) and Saigon-Hanoi Insurance (BSH), bringing the total number of top 10 non-life insurers in Vietnam under its umbrella to three, thereby accelerating its push into the Southeast Asian market.

Park Kihyun, Head of Overseas Business at DB Insurance, stated, "This is the first-ever acquisition of a U.S. insurance company by a Korean insurer and marks a watershed moment for DB Insurance's leap into becoming a global insurance company. By combining Fortegra's expertise with DB Insurance's global network and capital strength, we will enhance customer value and market competitiveness, while simultaneously achieving our dual goals of increasing shareholder value and contributing to the national economy."

Richard Kahlbaugh, CEO of The Fortegra Group, commented, "This agreement with DB Insurance will open a new chapter in The Fortegra Group's journey. We look forward to working together with DB Insurance to achieve our shared goal of becoming a leading global insurance group."

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