Private Equity Firm to Purchase Majority of Title Resources Guaranty
October 7, 2021
Private equity investment firm Centerbridge agreed to purchase controlling interest of Title Resources Guaranty Co. (TRG), Realogy’s insurance underwriter, for $210 million.
Realogy will maintain a 30% equity interest in Closing Parent Holdco, a newly formed limited partnership joint venture that will own the underwriter. The transaction is expected to close in first quarter of 2022, subject to required regulatory clearances and approvals and other closing conditions.
Kevin Mahony, managing director at Centerbridge Partners, said the investment firm is eager to support TRG CEO Scott McCall and help the underwriter continue to grow. TRG generated $300.6 million in title premiums resulting in 2.5% market share through the first half of 2021, according to ALTA’s latest market share report.
“We believe we can accelerate this growth even further by investing in new geographies, expanding title products and services, continuing the development of technology, and delivering value to all stakeholders, including agents and employees,” Mahony said.
Realogy will continue to own and operate its national title settlement and escrow services that helped agents and consumers close 214,000 transactions in 2020. Realogy’s title and escrow services operate across 43 states under 45 different brand names.
“Realogy continues to demonstrate momentum on our journey to reimagine an integrated real estate transaction,” said Ryan Schneider, Realogy’s chief executive officer and president. “While we really like our title insurance underwriter, this agreement enables us to be even more laser-focused on Realogy’s core businesses, including critical consumer-facing transaction services in franchise, brokerage, title settlement and escrow, and mortgage.”
“Future growth upside from the underwriter venture, combined with our ability to unlock capital to further invest in Realogy’s strategic priorities, can help us generate additional value for both the company and our shareholders,” Schneider continued.
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