JACKSONVILLE, Fla.,
Dec. 27, 2011 /PRNewswire/
-- Fidelity National Financial, Inc. (NYSE: FNF), a leading
provider of title insurance, mortgage services and diversified
services, today announced the signing of a definitive agreement
under which it will sell an 85 percent interest in its personal
lines business to WT Holdings, Inc. ("WT Holdings") for
approximately $119 million.
Under the terms of the definitive agreement, WT Holdings will
acquire Fidelity National Insurance Company ("FNIC"), Fidelity
National Property and Casualty Insurance Company ("FNPAC") and FNIS
Insurance Services and FNF will retain a 15% minority ownership
position in the personal lines business. FNIC, FNPAC and FNIS
Insurance Services will continue offering the same quality
products and services under the new ownership.
The sale price is subject to typical closing adjustments based
on surplus at closing. The closing of the transaction is
subject to regulatory approval and customary closing conditions and
is expected during the late first quarter or early second quarter
of 2012. The personal lines business sale is expected to
result in approximately a $15 million
pre-tax loss for FNF.
"This sale of our personal lines business makes strategic sense
for our company," said Chairman William P.
Foley, II. "The personal lines business carries higher
earnings volatility than we are comfortable maintaining and we
believe we can redeploy this capital into other uses that will
generate higher returns and greater value for our
shareholders."
About FNF
Fidelity National Financial, Inc. (NYSE: FNF), is a leading
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.