Activist fund Align Partners presses DB Insurance on governance, shareholder returns

Align Partners Capital Management has ramped up pressure on DB Insurance over shareholder value concerns by sending a second open letter to the insurer’s board, the activist fund said Friday. In the letter, issued Thursday in response to DB Insurance’s first shareholder communication on March 5, Align Partners urged the company to take stronger measures to enhance shareholder value and presented additional views on corporate governance reforms and shareholder return policies. The activist investor called for several changes, including adopting a management strategy based on return on required capital, strengthening shareholder return policies, improving internal transactions with group IT affiliate DB Inc., shifting to a joint trademark ownership structure, overhauling the executive compensation system, and reinforcing board independence. Align also raised new concerns regarding DB Insurance’s acquisition of U.S. insurer Fortegra. In September last year, DB Insurance signed a $1.65 billion deal to acquire Fortegra, the largest overseas takeover by a Korean insurer to date. The fund