Tiptree shares are up 30% on Tuesday morning: here’s what happened

on Oct 12, 2021
  • Warburg Pincus invested $200 million in Tiptree's Fortegra Group LLC.
  • The growth investor secured a 24% ownership stake in the insurance firm.
  • Shares of Tiptree Inc jumped nearly 30% on the news this morning.

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Shares of Tiptree Inc (NASDAQ: TIPT) jumped nearly 30% on Tuesday morning as Warburg Pincus invested $200 million in its insurance subsidiary, The Fortegra Group LLC.

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The $456 million company now has a price to earnings ratio of 7.61.

Warburg Pincus secured a 24% ownership stake in the insurance firm

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The strategic investment secured a 24% ownership stake for Warburg Pincus in the insurance firm and is likely to close next year in the first quarter, the press release added. Commenting on the news, Dan Zilberman of Warburg Pincus said:

Fortegra’s talented management team has built a world-class speciality insurance platform delivering high-quality products and services to its customers worldwide. We are excited to partner with Rick Kahlbaugh and Tiptree’s experienced management team and are committed to Fortegra’s continued growth and long-term success.

Also on Tuesday, Bond Vet also announced the close of a $170 million investment from Warburg Pincus.

Warburg Pincus is known for its investments in the insurance sector

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The global growth investor is known for its focus on the insurance sector, with investments in Cox Insurance Holdings, Max Life, PetPlan, ICICI Lombard Insurance, McGill and partners, SBI General Insurance, and RenaissanceRe, to name a few.

Founded in the late 1970s, Fortegra is a Florida-based speciality insurer that remained consistently profitable amidst the pandemic. It underwrites more than $2.0 billion of gross written premiums and premium equivalents every year.

Fortegra’s strong growth trajectory evident from its H1 performance partially inspired Warburg Pincus to make a sizable investment in the insurance firm.

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