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Fortegra Financial Corporation (the “Company”) (NYSE: FRF) today announced that it has agreed to acquire eReinsure.com, Inc., an industry leader in web-based technologies for reinsurance process control, information management and compliance functions, for a cash purchase price of $37 million.
The acquisition of eReinsure will enable Fortegra to offer eReinsure’s unique reinsurance negotiation platform to insurers, reinsurers and brokers. eReinsure was founded 11 years ago and developed a web based platform to support placing reinsurance risks. Since then, eReinsure has grown to serve many of the largest reinsurance buyers, sellers and brokers worldwide. eReinsure has demonstrated the value of a web-based system for enhancing transaction control and efficient distribution in the reinsurance market. As a result of the growth of eReinsure, electronic placing of reinsurance has become well established with over 15,000 registered users in 80 countries.
"The acquisition of eReinsure represents another exciting addition to the suite of fee-based insurance service businesses in the Fortegra family,” said Richard S. Kahlbaugh, Chairman and CEO of Fortegra Financial. “With this acquisition our insurance industry clients will be able to leverage the eReinsure platform to enhance revenue, reduce costs and better manage their reinsurance activities. Additionally, we believe this acquisition will significantly enhance the operating margins in our wholesale brokerage segment and enable us to introduce exciting technologies to excess and surplus lines brokerage to enhance operating leverage. We look forward to closing the transaction and working with Igor Best-Devereux, Chairman of eReinsure, and the entire eReinsure team in continuing to bring innovative technological solutions to the insurance industry."
eReinsure is located in Salt Lake City, Utah and has additional offices in London and New York. The transaction is expected to close in the first quarter of 2011 and is subject to customary terms and conditions.
Fortegra Financial Corporation is an insurance services company that provides distribution and administration services and insurance-related products to insurance companies, insurance brokers and agents and other financial services companies in the United States. It sells services and products directly to businesses rather than directly to consumers. Fortegra’s brands include Life of the South, Consecta and Bliss & Glennon.