Kroll Bond Rating Agency Assigns Ratings to Fortegra Financial Corporation and Its Insurance Subsidiaries

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has assigned insurance financial strength ratings (IFSRs) of A- with a stable outlook to the insurance subsidiaries of Fortegra Financial Corporation. Additionally, KBRA has assigned an issuer rating of BBB with a stable outlook to Fortegra. Fortegra is a leading provider of credit protection, warranty, and specialty underwriting products and services. The organization is headquartered in Jacksonville, Florida and part of the Tiptree Inc. family of companies (NASDAQ: TIPT).

The A- IFSRs have been assigned to the following property/casualty (P/C) and life insurance subsidiaries of Fortegra: Lyndon Southern Insurance Company (P/C); Insurance Company of the South (P/C); Response Indemnity Company of California (P/C); Life of the South Insurance Company; Southern Financial Life Insurance Company; and Bankers Life of Louisiana.

The ratings reflect Fortegra’s consistent underwriting profitability, supplemented by considerable fee income, which has resulted in favorable trends in capitalization. Additionally, Fortegra maintains a conservative investment portfolio and balanced mix of revenue and earnings sources. Partially balancing these strengths are Fortegra’s moderate premium leverage, extensive use of reinsurance and high reinsurance recoverables, high all-in financial leverage and elevated intangible assets. Although Fortegra’s investment yields have been depressed – consistent with industry trends – the combination of invested asset growth and improving yields through asset re-allocation have enhanced investment income and the firm’s earnings.

The ratings are based on KBRA’s Global Insurer & Insurance Holding Company Rating Methodology published on April 21, 2016.

A full report will soon be made available on www.kbra.com.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Fred DeLeon, 646-731-2352
Associate Director
fdeleon@kbra.com
or
Andrew Edelsberg, 646-731-2371
Senior Director
aedelsberg@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Follow us on Twitter!
@KrollBondRating

Contacts

Kroll Bond Rating Agency
Analytical Contacts:
Fred DeLeon, 646-731-2352
Associate Director
fdeleon@kbra.com
or
Andrew Edelsberg, 646-731-2371
Senior Director
aedelsberg@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Follow us on Twitter!
@KrollBondRating