Fidelity National Sells Nations Biggest Flood Insurance Business
JACKSONVILLE, Fla. – Fidelity National Financial, the biggest title insurer in the U.S., said it is selling its flood insurance business to WRM America Holdings of Uniondale, N.Y., for $210 million.
Fidelity will receive $122.5 million in cash and a $75 million note and receive a $12.5 million cash dividend from one of the subsidiaries prior to closing of the sale of its Fidelity National Indemnity Insurance Co. and Fidelity National Insurance Services subsidiaries. The flood businesses are the nation’s largest provider of federal flood insurance through the National Flood Insurance Program, providing more than of 17% of the total “Write Your Own” program market in 2010.
The deal is expected to close in the fourth quarter and result in a pre-tax gain of about $154 million for Fidelity.