Fidelity National Financial, Inc. Announces Settlement with California Department of Insurance on Captive Reinsurance Inquiry
|July 22, 2005|
Jacksonville, Fla. -- Fidelity National Financial, Inc. (NYSE:FNF) reached a settlement with the California Department of Insurance on that department's inquiry into captive reinsurance practices in the title insurance industry.
Under the terms of the settlement, FNF will refund approximately $7.7 million to those consumers whose California property were subject to a captive reinsurance arrangement and will also pay a penalty of $5.6 million. As part of the settlement, FNF denied any wrongdoing.
The financial impact of the settlement has been accrued for in the first and second quarter financial results of FNF.
"We have worked closely with the California Department of Insurance to resolve this issue in an amicable manner," said Peter T. Sadowski, Executive Vice President and General Counsel. "We are happy that this matter is now behind us and we remain committed to vigorous internal compliance policies. We will work informally with the department on issues of mutual interest to minimize the possibility of future misunderstandings regarding acceptable market conduct."
Source: Fidelity National Financial, Inc.