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AM Best upgrades Fortegra ratings after DB Insurance acquisition
AM Best lifted Fortegra’s property and casualty and life and health operating subsidiaries to A (Excellent) from A- (Excellent), and assigned a stable outlook for the life and health units.
AM Best has upgraded the credit ratings of Fortegra Group, Inc., citing rating enhancement tied to Fortegra’s acquisition by South Korea-based DB Insurance Co., Ltd. (DBI). The ratings actions include removing certain entities from “under review” with positive implications and raising Fortegra’s Financial Strength Rating (FSR) to A (Excellent) from A- (Excellent), along with Long-Term Issuer Credit Ratings moving to “a” (Excellent) from “a-” (Excellent).
For Fortegra’s property and casualty operating subsidiaries, AM Best’s upgrade applies to multiple entities, including Lyndon Southern Insurance Company, Insurance Company of the South, Response Indemnity Company of California, Blue Ridge Indemnity Company, Fortegra Specialty Insurance Company, and Fortegra Europe Insurance Company SE. AM Best also upgraded additional subsidiaries including Fortegra Belgium Insurance Company NV, Fortegra Insurance UK Ltd., and Fortegra Indemnity Insurance Company, LTD. after removing them from review.
AM Best also raised ratings for Fortegra’s life and health (L&H) operating subsidiaries, collectively known as the Life of the South Group. These units received an FSR upgrade to A (Excellent) from A- (Excellent) and Long-Term ICR upgrades to “a” (Excellent) from “a-” (Excellent), and AM Best assigned them a stable outlook.
According to AM Best, the changes reflect Fortegra’s strategic importance to DBI and expected financial and operational benefits from ownership by a larger, higher-rated parent. DBI holds an FSR of A+ (Superior) and a Long-Term ICR of “aa-” (Superior), and AM Best expects Fortegra to leverage DBI’s scale to expand its international footprint and strengthen product and geographic diversification.