Fortegra Financial (FRF) trades at an attractive valuation due to the current negative regulatory environment despite a low risk, diversified business model, recurring revenue stream, strong cash flow and significant insider ownership.
FRF is a diversified insurance services company that provides distribution and administration services on a wholesale basis to insurance and financial services companies as well as insurance brokers and agents.
The three operating segments include:
Payment Protection. Provides credit insurance, debt protection, warranty and service contracts as well as motor club solutions to consumer finance companies, banks/credit unions, retailers, small loan companies, warranty administrators, auto dealers and vacation ownership developers. Competitors include The Warranty Group, Assurant, Asurion, eSecuritel and Global Warranty Group.