JACKSONVILLE, Fla.,
Nov. 10, 2011 /PRNewswire/ --
Fidelity National Financial, Inc. (NYSE: FNF), a leading provider
of title insurance, mortgage services and diversified services,
today announced the closing of the sale of its flood insurance
business to WRM America Holdings, LLC ("WRM America") for
$219.5 million.
Under the terms of the sale, WRM America acquired 100 percent of
the equity interests of Fidelity National Indemnity Insurance
Company and Fidelity National Insurance Services. The sale resulted
in approximately a $154 million
pre-tax gain for FNF and a net earnings impact of $0.45 per share. The transaction generated
approximately $86 million in net cash
for FNF, after payment of taxes on the gain, as well as a
$75 million seller note. The seller
note has an 8 percent annual interest coupon, interest payable
quarterly and principal payable in full as a balloon payment in
eighteen months.
About FNF
Fidelity National Financial, Inc. (NYSE: FNF), is a Fortune 500
provider of title insurance, mortgage services and diversified
services. FNF is the nation's largest title insurance company
through its title insurance underwriters - Fidelity National Title,
Chicago Title, Commonwealth Land Title and Alamo Title - that
collectively issue more title insurance policies than any other
title company in the United
States. In addition, among other operations, FNF owns
minority interests in Ceridian Corporation, a leading provider of
global human resources, payroll, benefits and payment solutions,
Remy International, Inc., a leading designer, manufacturer,
remanufacturer, marketer and distributor of aftermarket and
original equipment electrical components for automobiles, light
trucks, heavy-duty trucks and other vehicles and American Blue
Ribbon Holdings, LLC, an owner and operator of the Village Inn,
Bakers Square and Max & Erma's restaurants. More
information about FNF can be found at www.fnf.com.
Forward Looking Statements
This press release contains forward-looking statements that
involve a number of risks and uncertainties. Statements that are
not historical facts, including statements regarding our
expectations, hopes, intentions or strategies regarding the future
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 financial and
operating results 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: changes in general
economic, business and political conditions, including changes in
the financial markets; 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 distributions from our title insurance underwriters as a main
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.
SOURCE Fidelity National Financial, Inc.