Fortegra Financial Announces Agreement to Acquire eReinsure, Inc.
03 März 2011 - 10:01PM
Business Wire
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.
About Fortegra
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.
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http://www.fortegra.com.
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