AM Best Affirms Credit Ratings of The Fortegra Group, Inc.’s Insurance Subsidiaries
AM Best has affirmed the Financial Strength Rating (FSR) of A- (Excellent) and Long-Term Issuer Credit Ratings for the operating subsidiaries of The Fortegra Group, a wholly owned subsidiary of Tiptree Inc. [NASDAQ: TIPT].
The ratings cover multiple entities including the Fortegra P&C Group, Life of the South Group, and Fortegra Indemnity Insurance Company. The P&C Group's ratings reflect its very strong balance sheet, adequate operating performance, and strongest level risk-adjusted capitalization. The Life Group maintains strong balance sheet strength and steady profitability, while Fortegra Indemnity serves as a strategic captive reinsurer within the organization.
Key strengths include conservative investment portfolios, solid liquidity metrics, and robust reinsurance programs. Notable challenges involve significant dependence on third-party reinsurance and moderate loss reserve volatility.
AM Best ha confermato il Financial Strength Rating (FSR) di A- (Eccellente) e i rating di credito a lungo termine per le società operative di The Fortegra Group, una controllata interamente posseduta da Tiptree Inc. [NASDAQ: TIPT].
I rating riguardano diverse entità, tra cui il Fortegra P&C Group, il Life of the South Group e la Fortegra Indemnity Insurance Company. I rating del P&C Group riflettono un bilancio molto solido, una performance operativa adeguata e il massimo livello di capitalizzazione aggiustata per il rischio. Il Life Group mantiene una solida forza patrimoniale e una redditività costante, mentre Fortegra Indemnity svolge il ruolo di riassicuratore captive strategico all’interno dell’organizzazione.
I punti di forza principali includono portafogli di investimento conservativi, solidi indicatori di liquidità e programmi di riassicurazione robusti. Le sfide degne di nota riguardano una significativa dipendenza dalla riassicurazione di terzi e una volatilità moderata delle riserve per sinistri.
AM Best ha confirmado la Calificación de Fortaleza Financiera (FSR) de A- (Excelente) y las Calificaciones de Crédito a Largo Plazo para las filiales operativas de The Fortegra Group, una subsidiaria de propiedad total de Tiptree Inc. [NASDAQ: TIPT].
Las calificaciones abarcan varias entidades, incluyendo el Fortegra P&C Group, el Life of the South Group y la Fortegra Indemnity Insurance Company. Las calificaciones del P&C Group reflejan un balance muy sólido, un desempeño operativo adecuado y el nivel más alto de capitalización ajustada por riesgo. El Life Group mantiene una sólida fortaleza financiera y rentabilidad constante, mientras que Fortegra Indemnity actúa como un reasegurador cautivo estratégico dentro de la organización.
Las fortalezas clave incluyen carteras de inversión conservadoras, sólidos indicadores de liquidez y robustos programas de reaseguro. Los desafíos notables incluyen una dependencia significativa del reaseguro de terceros y una volatilidad moderada en las reservas de pérdidas.
AM Best는 The Fortegra Group의 운영 자회사들에 대해 재무 건전성 등급(FSR) A- (우수) 및 장기 발행자 신용 등급을 확정했습니다. The Fortegra Group은 Tiptree Inc. [NASDAQ: TIPT]의 100% 자회사입니다.
이 등급은 Fortegra P&C Group, Life of the South Group, 그리고 Fortegra Indemnity Insurance Company를 포함한 여러 법인을 대상으로 합니다. P&C Group의 등급은 매우 견고한 재무상태, 적절한 영업 실적, 그리고 최상위 수준의 위험 조정 자본금을 반영합니다. Life Group은 강력한 재무 건전성과 안정적인 수익성을 유지하고 있으며, Fortegra Indemnity는 조직 내 전략적 캡티브 재보험사 역할을 수행합니다.
주요 강점으로는 보수적인 투자 포트폴리오, 견고한 유동성 지표, 그리고 탄탄한 재보험 프로그램이 있습니다. 주목할 만한 과제로는 제3자 재보험에 대한 높은 의존도와 중간 수준의 손실 준비금 변동성이 포함됩니다.
AM Best a confirmé la notation de solidité financière (FSR) de A- (Excellent) ainsi que les notations de crédit à long terme pour les filiales opérationnelles de The Fortegra Group, une filiale en propriété exclusive de Tiptree Inc. [NASDAQ: TIPT].
Les notations couvrent plusieurs entités, notamment le Fortegra P&C Group, le Life of the South Group et la Fortegra Indemnity Insurance Company. Les notations du groupe P&C reflètent un bilan très solide, une performance opérationnelle adéquate et le plus haut niveau de capitalisation ajustée au risque. Le groupe Life maintient une forte solidité financière et une rentabilité stable, tandis que Fortegra Indemnity agit comme un réassureur captif stratégique au sein de l’organisation.
Les points forts clés incluent des portefeuilles d’investissement prudents, des indicateurs de liquidité solides et des programmes de réassurance robustes. Les défis notables concernent une dépendance significative à la réassurance tierce et une volatilité modérée des provisions pour sinistres.
AM Best hat die Finanzstärke-Bewertung (FSR) von A- (Ausgezeichnet) sowie die langfristigen Emittenten-Kreditratings für die operativen Tochtergesellschaften von The Fortegra Group, einer hundertprozentigen Tochtergesellschaft von Tiptree Inc. [NASDAQ: TIPT], bestätigt.
Die Ratings umfassen mehrere Einheiten, darunter die Fortegra P&C Group, die Life of the South Group und die Fortegra Indemnity Insurance Company. Die Ratings der P&C Group spiegeln eine sehr starke Bilanz, angemessene operative Leistungen und die höchste Stufe der risikoadjustierten Kapitalausstattung wider. Die Life Group weist eine starke Bilanzkraft und stabile Profitabilität auf, während Fortegra Indemnity als strategischer Captive-Rückversicherer innerhalb der Organisation fungiert.
Zu den wichtigsten Stärken zählen konservative Anlageportfolios, solide Liquiditätskennzahlen und robuste Rückversicherungsprogramme. Zu den bemerkenswerten Herausforderungen gehören eine erhebliche Abhängigkeit von Drittanbieter-Rückversicherungen und eine moderate Volatilität der Schadenrückstellungen.
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In addition, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Fortegra’s life/health operating subsidiaries, which include Life of the South Insurance Company (
Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of Fortegra Indemnity Insurance Company, LTD. (Fortegra Indemnity) (Turks and Caicos). The outlook of these ratings is stable.
The ratings of Fortegra P&C Group reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The balance sheet strength of Fortegra P/C Group is supported by its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), a conservative investment portfolio, solid liquidity metrics bolstered by positive underwriting and operating cash flows, and its robust reinsurance program. These favorable factors are partially offset by the group’s significant dependence on third-party reinsurance for capacity—evident in its elevated ceded underwriting leverage, which is somewhat mitigated through the use of collateral—as well as moderate loss reserve volatility. The group’s capital and surplus have demonstrated strong, sustained growth over time, primarily through retained earnings and contributed capital, offset by modest dividends paid to the parent holding company.
The ratings of Life of the South Group reflect its balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, neutral business profile and appropriate ERM.
The Life of the South Group has sustained the strongest level of risk-adjusted capitalization, as measured by BCAR. The group’s steady profitability has supported growth in its absolute capital levels. While the life group carries no debt and maintains a conservative bond portfolio along with a highly liquid investment profile, it has increased its investment risk exposure in recent years. AM Best notes that the company exhibits elevated reinsurance leverage, ceding over half of its gross premiums. Most of the ceded business is placed with both
The ratings of Fortegra Indemnity reflect its balance sheet strength, which AM Best assesses as adequate, as well as its adequate operating performance, limited business profile and appropriate ERM. These ratings also reflect Fortegra Indemnity’s strategic role within the consolidated organization as a captive reinsurer that assumes almost all the credit property exposure held by Fortegra P/C Group, net of external reinsurance, and more recently, related to a quota share treaty with its foreign affiliate.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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Gordon McLean
Senior Financial Analyst
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gordon.mclean@ambest.com
Edin Imsirovic
Director
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Christopher Sharkey
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Al Slavin
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Source: AM Best
FAQ
What is the current AM Best rating for Fortegra Group's insurance subsidiaries?
How does the Fortegra P&C Group's balance sheet strength impact TIPT investors?
What are the main risks identified in AM Best's rating assessment of Fortegra's subsidiaries?
How has the Life of the South Group's capital position performed over time?
What role does Fortegra Indemnity play within TIPT's insurance operations?
