Fortegra Financial, a Florida-based insurance services company, has agreed to acquire eReinsure.com, a provider of web-based technologies for reinsurance process control, information management and compliance functions, for $37m in cash.
Fortegra said that the acquisition of eReinsure will enable Fortegra to offer eReinsure’s reinsurance negotiation platform to insurers, reinsurers and brokers.
eReinsure is located in Salt Lake City, Utah and has additional offices in London and New York.
Fortegra Financial chairman and CEO Richard Kahlbaugh said that the acquisition of eReinsure represents another exciting addition to the suite of fee-based insurance service businesses in the Fortegra family.
"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," Kahlbaugh said.
The transaction is expected to close in the first quarter of 2011 and is subject to customary terms and conditions.