ALDUICK, NJ, December 8, 2023—(BUSINESS WIRE)–AM Best affirmed the Financial Stability Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Fortegra Group, Inc.’s operating subsidiaries. (Fortegra) (headquartered in Jacksonville, Florida). Fortegra is a wholly owned subsidiary of its publicly traded parent company Tiptree Inc. [NASDAQ: TIPT]. Fortegra’s property/casualty (P/C) operating subsidiaries include: Lyndon Southern Insurance Company (Wilmington, DE); Insurance Company of the South (Athens, GA); Response Indemnity Company of California (Redondo Beach, CA); Blue Ridge Indemnity Company (Wilmington, DE); Fortegra Specialty Insurance Company (Fortegra Specialty) (Scottsdale, Arizona); and Fortegra Europe Insurance Company Limited (FEI) (Malta). These companies are collectively called the Fortegra P&C Group (the P/C Group).
In addition, AM Best affirmed an FSR of A- (Excellent) and a Long-Term ICR of “a-” (Excellent) on Fortegra’s life/health subsidiaries, which include: Life of the South Insurance Company (Athens, GA) ; Bankers Life Insurance Company of Louisiana (Marksville, LA); and Southern Financial Life Insurance Company (Scottsville, KY). These companies are collectively called Life of the South Group (the life group). The outlook for these credit ratings (ratings) is stable.
Simultaneously, AM Best affirmed the FSR of A- (Excellent) and Long-Term ICR of “a-” (Excellent) of Fortegra Indemnity Insurance Company, LTD. (Fortegra Indemnity) (Turks and Caicos). The outlook for these ratings is stable.
Fortegra P&C Group’s ratings reflect the strength of its balance sheet, which AM Best rates as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The assessment of Fortegra P/C Group’s balance sheet strength is based on its highest level of risk-adjusted capitalization as measured by Best’s Capital Adequacy Ratio (BCAR), its prudent investment portfolio, solid liquidity measures that are bolstered by positive underwriting and operating cash flows and a comprehensive reinsurance program. Partially offsetting these positive rating factors is the company’s significant reliance on third-party reinsurance to provide capacity, which is demonstrated by high ceding leverage, which is somewhat mitigated by the use of collateral, as well as modest reserve volatility lost. The P/C group’s capital and surplus shows strong, long-term growth through retained earnings, partially offset by modest dividends to the parent holding company.
Life of the South Group’s ratings reflect the strength of its balance sheet, which AM Best rates as strong, as well as its adequate operating performance, neutral business profile and appropriate ERM. The ratings also reflect the life group’s strategic role within the consolidated organization as a provider of life, casualty and health credit products.
Life of the South Group maintains the highest level of risk-adjusted capitalization as measured by BCAR. Growth in the absolute levels of the life group’s capital has been supported by steady returns. The life group itself has no debt and although it has a conservative bond portfolio and liquid investment profile, it has taken on more investment risk in recent years. AM Best notes that the company maintains high levels of reinsurance leverage as the life insurance group cedes more than half of its gross premiums. Most of its divested business is held by US-based and offshore subsidiaries. In addition, the life group maintains a number of reinsurance arrangements with producer-owned reinsurance companies that primarily serve as profit and risk sharing vehicles with the life group’s distribution partners.
Fortegra Indemnity’s ratings reflect the strength of its balance sheet, which AM Best assesses as appropriate, as well as its adequate operating performance, limited business profile and appropriate ERM. These ratings also reflect Fortegra Indemnity’s strategic role within the consolidated entity as a captive reinsurer underwriting substantially all of the credit property exposure held by Fortegra P/C Group, net of external reinsurance and more recently related to a quota contract share with the foreign affiliate.
This press release refers to the credit ratings that are published on the AM Best website. For all rating information relating to the release and related disclosures, including details of the agency responsible for issuing each of the individual ratings mentioned in this release, please see AM Best’s web page for recent rating activities. For further information on the use and limitations of credit score opinions, please see Best’s Guide to Credit Scores. For information on the proper use of Best Credit Ratings, Best Performance Ratings, Best Preliminary Credit Ratings, and AM Best Press Releases, please see the Guide to the Proper Use of Best Ratings and Ratings.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Check out the source version on businesswire.com: https://www.businesswire.com/news/home/20231208698561/en/
Contacts
Gordon McLean
Senior Financial Analyst
+1 908 882 2109
[email protected]
Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]
Edin Imsirovich
Director
+1 908 882 1903
[email protected]
Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
[email protected]
