Jacksonville, Fla. -- (December 27, 2011) -- 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."
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.
CONTACT: Daniel Kennedy Murphy, Senior Vice President and Treasurer, 904-854-8120, firstname.lastname@example.org