Item 2.05 Costs Associated with Exit or Disposal Activities
On January 15, 2013, Fortegra Financial Corporation (the "Company") committed to a plan to consolidate the Company's fulfillment, claims administration and information technology functions for all its insurance related products (the "Plan"). Prior to the Plan, such functions resided in the Company's individual business units. The decision is part of the Company's efforts to streamline its operations, focus its resources and provide first in class service to its customers. When fully implemented, approximately 40 employee and contract positions will be eliminated.
The Company estimates the Plan pre-tax costs will range from approximately $1.3 million to $1.7 million, including approximately $1.1 million to $1.3 million of cash payments under existing employment agreements and severance arrangements and approximately $0.2 million to $0.4 million of other cash costs, such as legal, relocation and information technology. Management expects that substantially all the costs will be recorded in the first quarter of 2013 and paid during 2013.
The Company estimates that the Plan will result in annual pre-tax savings of approximately $4.0 million, a substantial majority of which is expected to commence in the first quarter of 2013.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers On January 14, 2013, the employment arrangement between the Company and Alex Halikias, Executive Vice President and President of Consecta terminated in accordance with Section 7.02 of the Executive Employment and Non-Competition Agreement, dated January 1, 2011 (the "Agreement"), between Mr. Halikias and the Company. The Agreement, which was filed with the Securities and Exchange Commission on May 15, 2012 as Exhibit 10.38 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2012, is incorporated herein by reference.

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