SOURCE: Fortegra Financial Corporation

Fortegra Financial Corporation

December 03, 2013 08:30 ET

Fortegra Financial Corporation Reaches a Definitive Agreement to Sell Bliss & Glennon and eReinsure to AmWINS Group, Inc.

JACKSONVILLE, FL--(Marketwired - Dec 3, 2013) - 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 & Glennon and eReinsure. Together with the management of Bliss & 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. 

About Fortegra Financial

Fortegra Financial Corporation is a diversified insurance services company offering a wide array of revenue enhancement products, including service contracts, device and warranty services, and distribution and administration services, to insurance companies, insurance brokers and agents and other financial services companies, primarily in the United States. Fortegra Financial's brands include Fortegra™, Life of the South®, 4Warranty, ProtectCELL™, Continental Car Club™, Auto Knight Motor Club™, United Motor Club™, Consecta™, Pacific Benefits Group™, Bliss & Glennon™, eReinsure™, South Bay Acceptance Corporation and Universal Equipment Recovery Group. Additional information about Fortegra can be found at

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