DB Insurance's buying of Fortegra seen as catalyst for long-term growth: analysts
DB Insurance's acquisition of Fortegra Group, a U.S. insurer, is expected to serve as a long-term growth catalyst, given the limited expansion potential of the domestic market and the recent intensification of competition, analysts said Monday. "DB Insurance plans to operate Fortegra as an independent subsidiary even after the acquisition is completed, but it is expected to secure a stable profit base in the U.S. market," said Hong Ye-ran, an analyst at Korea Investment & Securities. "Given the high penetration of the domestic insurance market, expanding overseas is a rational choice." On Friday, DB Insurance announced that it has signed an agreement to acquire 100 percent of the issued shares of Fortegra Group for $1.65 billion. This marks the largest-ever deal by a Korean insurer and the first time a Korean insurer has acquired a U.S. insurer. The acquisition is expected to be completed in the first half of next year. Established in 1978, Fortegra Group specializes in niche insurance as well as credit and surety insurance. Last year, it recorded approximately 4.4 trillion won ($3.1 bil
