Fidelity National Hopes to Attract Buyers for Its Specialty Insurance Business |
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Written by U.S. Insurance News
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Monday, 05 May 2008 |
Fidelity National Financial, Inc. (FNF), has put a for sale sign out front.
The Florida-based insurer recently announced that its Board of Directors has authorized management to investigate “strategic alternatives” for its Specialty Insurance business. FNF has retained Bank of America Securities as its adviser in the process.
Management will evaluate FNF’s flood insurance processing and the “at-risk” personal lines businesses, including homeowners and automobile insurance, but not the home warranty company. Together, FNF’s flood insurance business and traditional personal lines insurance business generated $333 million of revenue last year and had GAAP equity of approximately $230 million as of December 31.
FNF Chairman William P. Foley II said the company’s flood and at-risk insurance businesses are an “attractive acquisition opportunity” for buyers.
“We are focused on evaluating our non-core assets and investments as potential vehicles for creating meaningful liquidity,” Foley said.
He added that the company’s intention is to use the liquidity it creates with these non-core business lines to maintain FNF’s $1.20 annual cash dividend and repurchase a “significant amount” of the company’s outstanding stock. |
