Fidelity National Financial, Inc., a provider of products, services and solutions to the real estate and financial services industries, has entered into a definitive agreement to acquire the flood insurance business of Mutual of Omaha’s subsidiary, Omaha Property and Casualty Insurance Company (“OPAC”). The transaction is expected to close in the second quarter.
The transaction involves more than 220,000 flood policies originated through a nationwide network of 6,000 independent agents in conjunction with the National Flood Insurance Program.
Under the program, the Federal Government makes flood insurance available to owners and renters of residential and commercial properties as financial protection against flood losses and maintains the risk associated with potential claims. Borrowers are required to purchase flood insurance to obtain financing associated with a residential or commercial structure located in a federally designated Special Flood Hazard Area. OPAC had more than $125 million in annual gross flood insurance premiums and ceded commission revenue of more than $40 million in 2002.
With this acquisition, FNF will become the nation’s largest flood insurance company in the country, with annual gross premiums of more than $300 million and ceded commission revenue of approximately $100 million.
In addition, FNF also obtained the rights to offer renewal to OPAC’s personal lines policyholders.
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