A.M. Best Assigns Initial Rating to Fidelity National Insurance Company

March 5, 2002

OLDWICK, N.J.--(BUSINESS WIRE)-- --A.M. Best Co. has assigned an initial financial strength rating of B++ (Very Good) to Fidelity National Insurance Company (Fidelity), Santa Barbara, California.

The rating reflects Fidelity's strong capitalization, management team, common branding and the strategic relationship with its parent, Fidelity National Financial, Inc. Fidelity National Financial, Inc., is one of the largest national providers of title insurance and real estate services. It maintains this status by using various market brands and related distribution networks. Management's initiatives to use the unique distribution networks and provide enhanced support for real estate transactions represents market synergies for favorable product pricing and distribution. Based on these initiatives and Fidelity's synergistic relationships, A.M. Best expects it to realize premium growth and effect revenue diversification for the parent.

Offsetting these factors will be the ongoing integration of the strategic initiatives between the affiliated title company operations and the property and casualty operations. Additionally, homeowners insurance will continue to have competitive pressures on product pricing, with management of known and developing underwriting exposures being the primary forces influencing underwriting results. Integration issues have been addressed by combining the strengths of the respective companies through strategic management and organizational structures. Competitive pressures, market volatility and product pricing issues are incorporated into management's initiatives to use innovative distribution capabilities--enhanced products and competitive pricing--to further diversify Fidelity's revenue and generate excellent underwriting results. Based on management's integrated plans, corporate structure, parental support and capitalization, A.M. Best views the rating outlook as stable.

Source: A.M. Best Co.

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