Nature of Operations

Fortegra Financial Corporation (references in this Form 10-Q to "Fortegra Financial," "Fortegra," "we," "us," "the Company" or similar terms refer to Fortegra Financial Corporation and its subsidiaries), traded on the New York Stock Exchange under the symbol: FRF, is an insurance services company headquartered in Jacksonville, Florida. Fortegra offers a wide array of revenue enhancing products, including payment protection products, motor club memberships, service contracts, device and warranty services, and administration services, to our business partners, including insurance companies, retailers, dealers, insurance brokers and agents and financial services companies. In 2008, the Company changed its name from Life of the South Corporation to Fortegra Financial Corporation. The Company was incorporated in 1981 in the State of Georgia and re-incorporated in the State of Delaware in 2010. The Company generates most of its business through networks of small to mid-sized community and regional banks, small loan companies, independent wireless retailers and automobile dealerships. The Company's subsidiaries (100% direct or indirect ownership, unless otherwise noted below) at March 31, 2014, are as follows:


•	4Warranty Corporation ("4Warranty")


•	Auto Knight Motor Club, Inc. ("Auto Knight")


•	Continental Car Club, Inc. ("Continental")


•	CRC Reassurance Company, Ltd. ("CRC") *


•	Digital Leash, LLC, d/b/a ProtectCELL ("ProtectCELL"), 62.4% owned


•	Insurance Company of the South ("ICOTS") *


•	Life of the South Insurance Company ("LOTS") * and its subsidiary, Bankers Life of Louisiana ("Bankers Life") *


•	LOTS Intermediate Co. ("LOTS IM")


•	LOTS Reassurance Company ("LOTS RE") *


•	LOTSolutions, Inc.


•	Lyndon Southern Insurance Company ("Lyndon Southern") *


•	Pacific Benefits Group Northwest, LLC ("PBG")


•	Response Indemnity Company of California ("RICC") *


•	South Bay Acceptance Corporation ("South Bay")


•	South Bay Financial Services, LLC ("SBFS")


•	Southern Financial Life Insurance Company ("SFLAC"), 85.0% owned *


•	United Motor Club of America, Inc. ("United")

* = Insurance company subsidiary