Title insurance, mortgage and financial services provider Fidelity National Financial Inc. said it will sell an 85 percent interest in its personal lines business to WT Holdings Inc. of Memphis for approximately $119 million.
WT Holdings will acquire Fidelity National Insurance Co., Fidelity National Property and Casualty Insurance Co. and FNIS Insurance Services while FNF will retain a 15 percent minority ownership position in the personal lines business. FNIC, FNPAC and FNIS Insurance Services will continue offering the same products and services under the new ownership. They now offer insurance for homes, condominiums, dwellings and autos along with personal umbrellas.
Jacksonville, Fla.-based FNF said the personal lines business sale to WT Holdings is expected to result in a $15 million pre-tax loss.
The sale price is subject to typical closing adjustments based on surplus at closing. The closing of the transaction is expected during the late first quarter or early second quarter of 2012.
“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.”
FNF sold its flood insurance operations to WRM America Holdings LLC in July for $210 million.
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. In addition, FNF owns minority interests in companies involved in payroll services, aftermarket car electronic parts and restaurants.