John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

The Bullish Case For Fortegra Financial

Fortegra Financial (NYSE: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.

Company overview

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.

Business...

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