Fidelity National Financial, Inc. Announces the Closing of the Acquisition of Commonwealth Land Title Insurance Company, Lawyers
December 22 2008 - 5:18PM
PR Newswire (US)
JACKSONVILLE, Fla., Dec. 22 /PRNewswire-FirstCall/ -- Fidelity
National Financial, Inc. (NYSE:FNF) today announced the closing of
the acquisition of LandAmerica Financial Group, Inc.'s two
principal title insurance underwriters, Commonwealth Land Title
Insurance Company ("Commonwealth") and Lawyers Title Insurance
Corporation ("Lawyers"), as well as United Capital Title Insurance
Company ("United"). The total purchase price for Commonwealth and
Lawyers was approximately $235 million. Chicago Title Insurance
Company ("Chicago Title") and Fidelity National Title Insurance
Company ("Fidelity National Title") paid a total of approximately
$135 million in cash to LFG. Additionally, FNF paid LFG a total
consideration of approximately $100 million consisting of a $50
million subordinated note due in 2013, with an interest rate of
2.36 percent, and approximately $50 million in FNF common stock.
"The acquisition of these established title insurance franchises is
an historic opportunity for FNF," said Chairman William P. Foley,
II. "This combination creates the largest title insurer in the
United States, with pro forma 2007 market share of approximately
46% and dominant positions in both the residential and commercial
markets. We will have an unrivaled balance sheet, including an
investment portfolio of approximately $5.5 billion and reserve for
claim losses that will exceed $2.3 billion. We are thrilled to
welcome these underwriters and their employees, agents and
customers into the FNF title insurance family and are confident
that Commonwealth, Lawyers and United will provide significant
contributions to our ongoing goal of continually creating value for
our shareholders." Fidelity National Financial, Inc. (NYSE:FNF), is
a leading provider of title insurance, specialty insurance, claims
management services and information services. FNF is one of the
nation's largest title insurance companies through its title
insurance underwriters - Fidelity National Title, Chicago Title,
Ticor Title, Security Union Title and Alamo Title - that issue
approximately 27 percent of all title insurance policies in the
United States. FNF also provides flood insurance, personal lines
insurance and home warranty insurance through its specialty
insurance business. FNF also is a leading provider of outsourced
claims management services to large corporate and public sector
entities through its minority-owned subsidiary, Sedgwick CMS. FNF
is also a leading information services company in the human
resource, retail and transportation markets through another
minority-owned subsidiary, Ceridian Corporation. More information
about FNF can be found at http://www.fnf.com/. This press release
contains forward-looking statements that involve a number of risks
and uncertainties. Statements that are not historical facts,
including statements about our beliefs and expectations, are
forward-looking statements. Forward-looking statements are based on
management's beliefs, as well as assumptions made by, and
information currently available to, management. Because such
statements are based on expectations as to future economic
performance and are not statements of fact, actual results may
differ materially from those projected. We undertake no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. The risks and
uncertainties which forward-looking statements are subject to
include, but are not limited to: the possibility that the revenues,
cost savings, growth prospects and any other synergies expected
from the proposed transaction may not be fully realized or may take
longer to realize than expected; changes in general economic,
business and political conditions, including changes in the
financial markets; continued weakness or adverse changes in the
level of real estate activity, which may be caused by, among other
things, high or increasing interest rates, a limited supply of
mortgage funding or a weak U. S. economy; our potential inability
to find suitable acquisition candidates, acquisitions in lines of
business that will not necessarily be limited to our traditional
areas of focus, or difficulties in integrating acquisitions; our
dependence on operating subsidiaries as a source of cash flow;
significant competition that our operating subsidiaries face;
compliance with extensive government regulation of our operating
subsidiaries; and other risks detailed in the "Statement Regarding
Forward-Looking Information," "Risk Factors" and other sections of
the Company's Form 10-K and other filings with the Securities and
Exchange Commission. DATASOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President and
Treasurer, +1-904-854-8120, Web site: http://www.fnf.com/
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