- AM Best affirms A- (Excellent) ratings for Fortegra Group's subsidiaries, maintaining a stable outlook.
- Key strengths include conservative investment portfolios and robust reinsurance programs.
- Notable challenges consist of significant dependence on third-party reinsurance and moderate loss reserve volatility.
AM Best has confirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICRs) of “a-” (Excellent) for the operating subsidiaries of The Fortegra Group, Inc., a subsidiary of Tiptree Inc. (TIPT, Financial). This affirmation covers multiple entities within Fortegra, including the Fortegra P&C Group, Life of the South Group, and Fortegra Indemnity Insurance Company. The stable outlook reflects the groups' strong balance sheets and adequate operating performances.
The Fortegra P&C Group's ratings are bolstered by its very strong balance sheet, characterized by the strongest level of risk-adjusted capitalization, a conservative investment portfolio, and robust liquidity metrics. These favorable aspects are partially countered by the group's significant reliance on third-party reinsurance and moderate loss reserve volatility.
The Life of the South Group has maintained a strong balance sheet and steady profitability, which has supported growth in its absolute capital levels. Though the group carries no debt and maintains a conservative bond portfolio, its investment risk exposure has increased over the past few years.
Fortegra Indemnity Insurance Company operates as a strategic captive reinsurer within the organization, assuming most of the credit property exposure held by Fortegra P&C Group, thus playing a crucial role in controlling risk exposure.
Tiptree Inc. (TIPT, Financial), the parent company of Fortegra, benefits from the stable performance and conservative financial strategies of its subsidiaries, which contribute to a positive outlook for investors in terms of stable financial results.
