NEW YORK--(BUSINESS WIRE)--
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).
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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
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Source: Kroll Bond Rating Agency