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.
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