Fortegra Chairman and CEO, Rick Kahlbaugh, discusses the company's acquisition by DB Insurance, growth in the excess and surplus lines market, and the trends defining global specialty insurance.
Watch the full video here from InsureTV, and learn more about the key points below.
Both companies win through the acquisition
DB Insurance's acquisition of Fortegra marked the largest purchase of a US insurer by a Korean non-life carrier. For Fortegra, DB represents a permanent capital resource and a partner with alignment of interests, specifically the aspiration of becoming a top 20 global specialty insurer. As for DB Insurance, Fortegra serves as an entry platform into the US and Europe, which contain growing specialty markets. Fortegra's partners and customers can count on the continuation of business in a manner in which they are familiar, with no significant changes expected.
Upcoming opportunities in the E&S market
The excess and surplus market has seen significant growth through the past few years. Rick noted that Fortegra currently has a relatively small share of the market — on track for roughly $4 billion this year — and that risks are morphing at an unprecedented rate. The specialty market, as a whole, stands ready to benefit from the ongoing need for insurance among complex risks with a high velocity of change.
Insight into industry trends
Risks in certain categories, such as commercial property, continue to require specialized knowledge and underwriting expertise. There's a lot of opportunity on the horizon for new technology and cyber coverage continues to evolve.
What's next for Fortegra?
Rick shared that in the future, Fortegra expects to see continued growth in the the US, particularly in the E&S market, and meaningful growth in the Europe. There has been increased growth for Fortegra in both the UK and Europe, with the company recently establishing an underwriting desk at Lloyd's, adding staff in Belgium and Prague, and seeing a lot of potential to help growing economies manage their risk.
