Fortegra Financial Corporation (NYSE: FRF), announced today that it has reached a definitive agreement to sell Bliss & Glennon, an excess and surplus lines wholesale insurance broker and managing general agency, and eReinsure, an online platform for managing the placement of facultative reinsurance to AmWINS Group, Inc. The acquisition is expected to close within 30 days, following standard regulatory approval.
Richard S. Kahlbaugh, Chairman, President and Chief Executive Officer of Fortegra commented, "It is with great pleasure that I announce today the sale of our two insurance brokerage businesses, Bliss and Glennon and eReinsure.
Together with the management of Bliss and Glennon and eReinsure, we were able to increase the value and market position of the businesses. While the decision to divest was difficult, we believe this divestiture to be in the best interest of our shareholders and all employees."
"Following the sale of our brokerage operations, we will be able to focus our full attention on our payment protection, warranty and service contract products. These products generate our highest margins and provide us a significant opportunity for future growth."
"We continue to have meaningful sales success in our credit insurance and other specialty insurance lines, including mobile device warranty and service contracts. We also fully expect our resources to be allocated to our auto products, including auto service contracts and roadside assistance."
"We intend to use the proceeds of the transaction to deleverage our balance sheet and provide more flexibility as the business grows."
Sandler O'Neill + Partners, L.P. is serving as exclusive financial advisor to Fortegra Financial Corporation and rendered a fairness opinion in connection with this transaction.
