Fortress closes $5.3 million equity offering
Calgary, AB (Oct. 19, 2022) – Fortress Insurance Company is pleased to announce it has closed a $5.3 million equity financing, which was increased from a target range of $3 – $5 million due to greater demand from its distribution partners and concurrently executed a significant new partnership agreement.
Fortress has entered into a strategic partnership with U.S.-based Indemnity National Insurance Company (“INIC”). The partnership includes an equity investment of approximately $1.7 million in Fortress by INIC, and a plan to provide Fortress with the resources and expertise to offer specialty surety products in Canadian commercial insurance markets through a comprehensive underwriting and re-insurance agreement. The partnership agreement has received all governance and regulatory approvals and is now operational.
Fortress closed its $5.3 million equity issuance which includes the INIC investment, with the balance coming from a small group of value-added distribution and business partners who will contribute to the continuing growth and development of Fortress. The subscription price of $1.72 for each share in Fortress represents an approximate 215% premium to Fortress’ June 30 “book value”.
“The partnership with INIC will propel Fortress into the specialty surety market in the mining, energy, and natural resource sectors with a financially strong, expert partner,” said Fortress CEO Shafeen Mawani provided the following commentary. “The $5.3 million aggregate investment from INIC and other value-added partners will provide Fortress with capital, capacity, and growth opportunities for years to come.”
About Fortress Insurance Company
Fortress is a fast- growing property and casualty insurer licenced and operating in Canada’s western provinces and Ontario. In addition to being a niche capacity provider in the commercial and residential property insurance market, Fortress is focused on the development and provision of specialty insurance products. For more information, visit fortressinsurance.ca.
About Indemnity National Insurance Company
AM Best A- (“Excellent”) rated, U.S. Treasury listed and licensed across a majority of the United States, INIC’s team of professionals focuses on supporting some of the country’s most critical industries, with a focus on mining, energy and other specialty areas. Its customers range from large publicly traded Fortune 500 companies to private entrepreneurs, and INIC is committed to providing individualized excellence to every one of them. For more information, visit indemnitynational.com.
Source: Fortress Insurance CompanyTags: partnership, United States (USA)