 |
(DB Insurance) |
South Korean insurance company
DB Insurance Co. is looking to acquire a U.S.-based auto insurance specialist for 2 trillion won ($1.48 billion), the largest overseas merger and acquisition (M&A) deal ever attempted by a Korean insurance company to date.
According to sources from the financial investment industry and Wall Street on Monday,
DB Insurance is currently in price negotiations with Fortegra after completing due diligence on the U.S. company. Both parties aim to finalize the deal by July or August 2025, with
DB Insurance seeking a full 100 percent stake in Fortegra, sources said.
They view
DB Insurance’s move as an effort to secure a new growth engine overseas as growth in the Korean insurance market stagnates due to an aging population and low birth rates.
Founded in 1978 and headquartered in Jacksonville, Florida, Fortegra specializes in niche insurance products and vehicle service contracts. Its assets totaled 7.29 trillion won (approximately $ 5.4 billion) as of the end of 2024, with total revenue reaching 2.66 trillion won (about $ 1.97 billion), or a 23 percent increase from the previous year.
The acquisition amount
DB Insurance plans to invest is roughly equivalent to a quarter of its capital and is about 10 percent higher than its annual net profit of 1.77 trillion won in 2024.
A
DB Insurance official said, “While it is true that we are pursuing the acquisition, nothing has been finalized as of yet.”