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Fortegra Secures $150 Million in Capital to Support Growth

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Fortegra, a subsidiary of Tiptree Inc. (NASDAQ:TIPT), has successfully completed a $150 million issuance of 9.25% Fixed Rate Resetting Junior Subordinated Notes due 2064. The notes will be junior, subordinated, and unsecured obligations guaranteed by certain Fortegra subsidiaries. The capital raise aims to support profitable growth, enhance specialty insurance offerings, expand warranty and consumer products businesses, and diversify risk portfolio. The notes were offered under Rule 144A and Regulation S to eligible U.S. purchasers and non-U.S. persons.

Fortegra, una filiale di Tiptree Inc. (NASDAQ:TIPT), ha completato con successo un'emissione di 150 milioni di dollari di Obbligazioni Subordinate Junior a Tasso Fisso del 9,25% con scadenza nel 2064. Le obbligazioni saranno obbligazioni junior, subordinate e non garantite, garantite da alcune filiali di Fortegra. L'aumento di capitale ha l'obiettivo di sostenere una crescita redditizia, migliorare l'offerta di assicurazioni speciali, espandere le attività di garanzia e prodotti per consumatori e diversificare il portafoglio dei rischi. Le obbligazioni sono state offerte ai sensi della Regola 144A e del Regolamento S a compratori idonei statunitensi e a soggetti non statunitensi.

Fortegra, una subsidiaria de Tiptree Inc. (NASDAQ:TIPT), ha completado con éxito una emisión de 150 millones de dólares en Notas Subordinadas Junior de Tasa Fija del 9,25% con vencimiento en 2064. Las notas serán obligaciones junior, subordinadas y no garantizadas, garantizadas por ciertas subsidiarias de Fortegra. La recaudación de capital tiene como objetivo apoyar un crecimiento rentable, mejorar las ofertas de seguros especializados, expandir los negocios de garantías y productos para consumidores, y diversificar el portafolio de riesgos. Las notas se ofrecieron bajo la Regla 144A y el Reglamento S a compradores elegibles en EE. UU. y a personas no estadounidenses.

FortegraTiptree Inc. (NASDAQ:TIPT)의 자회사로, 2064년 만기 9.25% 고정 금리 리셋 주니어 채권 발행을 성공적으로 완료했습니다. 이 채권은 Fortegra의 일부 자회사가 보증하는 주니어, 후순위 및 무담보 의무입니다. 자본 조달은 수익성 있는 성장을 지원하고, 특수 보험 상품을 강화하며, 보증 및 소비자 제품 사업을 확장하고, 리스크 포트폴리오를 다각화하기 위한 목표를 가지고 있습니다. 이 채권은 144A 규칙과 Regulation S에 따라 적격 미국 구매자 및 비미국인에게 제공되었습니다.

Fortegra, une filiale de Tiptree Inc. (NASDAQ:TIPT), a réussi à réaliser une émission de 150 millions de dollars d'Obligations Subordonnées Junior à Taux Fixe à 9,25% arrivant à échéance en 2064. Les obligations seront des engagements juniors, subordonnés et non garantis, garantis par certaines filiales de Fortegra. La levée de fonds vise à soutenir une croissance rentable, à améliorer les offres d'assurance spécialisées, à étendre les activités de garantie et de produits destinés aux consommateurs, et à diversifier le portefeuille de risques. Les obligations ont été offertes dans le cadre de la Règle 144A et de la Réglementation S aux acheteurs éligibles aux États-Unis et aux personnes non américaines.

Fortegra, eine Tochtergesellschaft von Tiptree Inc. (NASDAQ:TIPT), hat erfolgreich eine Emission von 150 Millionen Dollar an 9,25% festverzinslichen nachrangigen Schuldverschreibungen mit Fälligkeit 2064 abgeschlossen. Die Schuldverschreibungen werden nachrangige, unverbriefte und ungesicherte Verbindlichkeiten sein, die von bestimmten Tochtergesellschaften von Fortegra garantiert werden. Die Kapitalbeschaffung zielt darauf ab, profitables Wachstum zu unterstützen, das Angebot an Spezialversicherungen zu verbessern, das Geschäft mit Garantien und Verbraucherprodukten auszubauen und das Risikoprofil zu diversifizieren. Die Schuldverschreibungen wurden gemäß Regel 144A und Regulation S an berechtigte US-Käufer und Nicht-US-Personen angeboten.

Positive
  • Secured $150 million in new capital through notes issuance
  • Strategic financing to support business expansion and growth initiatives
  • Strengthening capital position for enhanced insurance offerings
Negative
  • High interest rate of 9.25% on the notes
  • Long-term debt obligation extending to 2064
  • Subordinated nature of the notes increases risk for note holders

Insights

The $150 million junior subordinated notes issuance represents a significant strategic move for Fortegra and its parent company Tiptree. The 9.25% fixed rate and 40-year maturity structure provides long-term capital flexibility while maintaining an attractive cost of capital in the current rate environment. The subordinated nature of the debt helps preserve senior debt capacity and optimize the capital structure.

The capital raise strengthens Fortegra's financial position to pursue growth opportunities in specialty insurance and warranty products across US and European markets. This increased capitalization should support higher premium writings and risk retention capabilities, potentially driving revenue growth and improved underwriting margins. The focus on both geographic and product diversification could help reduce earnings volatility.

This capital injection positions Fortegra to capitalize on hardening insurance market conditions, particularly in specialty lines where pricing power remains strong. The timing is strategic as many insurers are pulling back capacity, creating opportunities for well-capitalized players to gain market share. The focus on warranty and consumer products diversifies revenue streams beyond traditional insurance lines.

The emphasis on risk management capabilities suggests a disciplined approach to growth, important for maintaining underwriting profitability. The ability to offer tailored solutions with enhanced capacity should strengthen relationships with key distribution partners and drive premium growth while maintaining underwriting discipline.

Junior subordinated notes issuance comes in anticipation of growing Fortegra's operations

JACKSONVILLE, Fla., Nov. 8, 2024 /PRNewswire/ -- The Fortegra Group, Inc. ("Fortegra"), a multinational specialty insurer and subsidiary of Tiptree Inc. (NASDAQ:TIPT), today announced the successful completion of $150 million of 9.25% Fixed Rate Resetting Junior Subordinated Notes due 2064 (the "Notes"). The Notes, to be issued under an indenture, will be junior, subordinated and unsecured obligations of Fortegra, and will be guaranteed on a junior subordinated basis by certain subsidiaries of Fortegra.

"This strategic financing enables Fortegra to drive profitable growth and optimally manage risk for our partners and policyholders across the US and Europe," said Ed Peña, Chief Financial Officer. "By strengthening our capital position, we can further enhance our specialty insurance offerings, expand our warranty and consumer products businesses, and diversify our risk portfolio."

This investment will allow Fortegra to:

  • Deepen partner relationships through tailored insurance solutions;
  • Enhance risk management capabilities to protect partners' and policyholders' interests; and
  • Boost profitability through targeted growth initiatives.

"This transaction demonstrates our commitment to delivering long-term value to our partners, policyholders and shareholders," added Peña. "We're well-positioned to capitalize on market opportunities while maintaining a strong focus on risk management, business growth, and operational excellence."

The Notes were offered pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") to eligible purchasers in the United States and to non-U.S. persons outside of the United States pursuant to Regulation S under the Securities Act. The Notes and the guarantees thereof have not been, and will not be, registered under the Securities Act or any state securities laws and may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This press release is neither an offer to sell nor solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Fortegra
For more than 45 years, Fortegra, via its subsidiaries, has underwritten risk management solutions that help people and businesses succeed in the face of uncertainty. As a multinational specialty insurer whose insurance subsidiaries have an A.M. Best Financial Strength Rating of A- (Excellent) and an A.M. Best Financial Size Category of 'X', we offer a diverse set of admitted and excess and surplus lines insurance products and warranty solutions. For more information: www.fortegra.com 

Contact:
media@fortegra.com

Cision View original content:https://www.prnewswire.com/news-releases/fortegra-secures-150-million-in-capital-to-support-growth-302299426.html

SOURCE Fortegra

FAQ

What is the interest rate and maturity of Fortegra's new notes offering (TIPT)?

Fortegra's new notes offering has a 9.25% Fixed Rate and matures in 2064.

How much capital did Fortegra (TIPT) raise in their November 2023 notes offering?

Fortegra raised $150 million through their junior subordinated notes offering.

What will Fortegra use the $150 million capital raise for (TIPT)?

The capital will be used to drive profitable growth, enhance specialty insurance offerings, expand warranty and consumer products businesses, and diversify their risk portfolio.

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