Fidelity National Wraps Up LandAmerica Buy
- Dec 24, 2008
Fidelity National Financial Inc. has closed on the previously-announced acquisition of LandAmerica Financial Group’s two title insurance underwriters, Commonwealth Land Title Insurance Co.and Lawyers Title Insurance Corp.. The total price tag of the deal was some $235 million. Fidelity also bought out United Capital Title Insurance Co. Fidelity National Financial already consists of several title insurance underwriters, including Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title. Together these companies issue more than a quarter of all title insurance policies in the nation. The purchase just closed will make Fidelity National Financial the largest title insurer in the United States. The plan is to keep the current franchisees–with underwriters, employees, agents and customers–all under the new umbrella. Chicago Title Insurance Co., together with Fidelity National Title Insurance Co., paid about $135 million in cash to LandAmerica Financial Group. Additionally, Fidelity National Financial added about $100 million consisting of a $50 million subordinated note , not due until 2013, that comes with an interest rate of 2.36 percent, plus some $50 million in Fidelity National Financial common stock. After this deal goes through, the Fidelity National Financial Inc portfolio will be valued at $5.5 billion plus reserves for claim losses that will exceed $2.3 billion..