WRM America to Acquire Fidelity National Financial’s Flood Insurance Business
July 13 2011 - 8:11AM
Business Wire
WRM America Holdings, LLC (“WRM America”), a specialty lines
property and casualty insurance and risk management holding
company, announced today it has reached a definitive agreement to
acquire the flood insurance business of Fidelity National Financial
Inc. (NYSE: FNF). Fidelity National Financial’s flood and excess
flood business – Fidelity National Indemnity Insurance Company
(“FNII”) – will operate as a wholly-owned subsidiary of WRM
America, and will continue to be led by Patty Templeton-Jones and
G. Michael Sloane, who will become members of the senior management
team at WRM America.
The FNII flood business is the nation’s largest provider of
federal flood insurance through the National Flood Insurance
Program (“NFIP”), capturing in excess of 17% of the total “Write
Your Own” program market in 2010. The FNII flood business offers
NFIP and excess flood insurance through its national network of
independent agents and brokers, and has consistently achieved an
industry-leading renewal rate through its customer-focused
approach.
“The addition of the largest provider of federal flood insurance
through the NFIP to the WRM America family of companies is another
step in our continued growth as a specialty lines insurance
company, is representative of our dedication to current and future
public-private partnerships, and considerably increases our
fee-for-service offering,” said William Fishlinger, CEO and
Chairman of WRM America. “Their team shares our ‘partnership beyond
the policy’ philosophy, which is a key element of our
customer-focused approach to specialty lines insurance and the core
of our business relationships.”
“As a specialty lines P&C insurance company with a history
of successfully managing public-private partnerships, WRM America
is the ideal partner to support the growth of the FNII flood and
excess flood business and strengthen our position in the flood
insurance market,” commented G. Michael Sloane. “We are excited to
be joining WRM America and to continue to provide the superior
coverage and service that our agents and their clients have come to
expect.”
Under the terms of the agreement, WRM America will acquire FNII
and Fidelity National Insurance Services for $210 million -
consisting of approximately $122.5 million in cash, $75 million in
a seller note and approximately $12.5 million in an expected cash
dividend. The transaction is expected to close in the fourth
quarter of 2011, subject to regulatory approval and customary
closing conditions. Central operations of the FNII flood business
will remain headquartered in St. Petersburg, Florida and the group
will retain its 220 dedicated employees.
WRM America worked closely with its lead shareholder Aquiline
Capital Partners to consummate the agreement.
About WRM America Holdings, LLC
WRM America Holdings, LLC is a specialty lines property and
casualty insurance and risk management holding company offering
comprehensive solutions for public and private sector entities. WRM
America serves its clients’ unique needs through its operating
companies: Wright Risk Management, which manages the New York
Schools Insurance Reciprocal (A.M. Best “A” (Excellent)), the New
York Municipal Insurance Reciprocal (A.M. Best “A-” (Excellent)),
and the New York State Municipal Workers' Compensation Alliance;
RMI Consulting; and WRM America Indemnity Co. (A.M. Best “A-”
(Excellent)). The company is headquartered in Uniondale, NY. For
more information, please visit www.wrmamerica.com.
About Aquiline Capital Partners, LLC
Aquiline Capital Partners, a global financial services private
equity firm lead by Jeff Greenberg, invests in financial services
enterprises across industries such as property and casualty
insurance, banking, securities, asset management, life insurance
and financial technology. Aquiline seeks to add value to its
portfolio companies through strategic, operational, and financial
guidance.
About Fidelity National Indemnity Insurance Company
Fidelity National Indemnity Insurance Company is the nation’s
largest provider of flood insurance with over 20 years of
experience as a leading WYO company through the NFIP. FNII
management participates in NFIP flood management committees as well
as many flood industry-related organizations. Agents may visit us
at www.fidelityonline.com.
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