AM Best announced it has placed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of "a-" (Excellent) of The Fortegra Group, Inc.'s operating subsidiaries under review with positive implications. This action follows the announcement of DB Insurance Co., Ltd.'s acquisition of Fortegra.
The under review with positive implications status reflects the potential for rating enhancement due to the acquisition by DB Insurance, which holds a Financial Strength Rating of A+ (Superior) and a Long-Term Issuer Credit Rating of "aa-" (Superior). The acquisition is expected to provide Fortegra with a stronger capital base and enhanced financial flexibility.
This development suggests that Fortegra's financial strength and credit profile could improve once the transaction is finalized. The potential upgrade in ratings would be a positive outcome for Fortegra and, indirectly, for Tiptree until the divestiture is complete.
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