Fidelity National Financial Announces Acquisition of Bankers Insurance Flood Insurance Business
|October 15, 2002|
IRVINE, Calif., /PRNewswire-FirstCall/ -- Fidelity National Financial, Inc. (NYSE: FNF - News) today announced that it has entered into a definitive agreement to acquire certain assets of Bankers Insurance Group ("Bankers"). The assets include the rights to issue new and renewal flood insurance policies underwritten by Bankers and its subsidiaries, Bankers Insurance Company, Bankers Security Insurance Company and First Community Insurance Company ("FCIC"). As part of the agreement, FNF will also acquire FCIC, a fifty-state licensed insurance carrier, to act as the underwriter for the policies.
The transaction involves more than 360,000 flood insurance policies originated through a nationwide network of 10,000 independent agents in conjunction with the National Flood Insurance Program. Under the program, the Federal Government makes flood insurance available to owners and renters of residential and commercial properties as financial protection against flood losses and maintains the risk associated with potential claims. Borrowers are required to purchase flood insurance to obtain financing associated with a residential or commercial structure located in a federally designated Special Flood Hazard Area. With annual gross premiums of approximately $175 million and ceded commission revenue of $56 million, the policies represent the nation's largest flood insurance program targeted to independent agents.
FNF will continue to outsource the flood policy administration and claim servicing operations to Bankers existing service provider, Insurance Management Solutions Group, Inc., to ensure the continuation of the same high quality policy and claims service for the independent agents.
"The acquisition of the Bankers flood policies contributes another facet to our strategy of becoming a fully diversified real estate services company," said FNF Chairman and Chief Executive Officer William P. Foley, II. "Flood insurance is complementary to our existing flood information business, is not solely dependent on the mortgage origination cycle and helps FNF provide a more complete suite of real estate related products and services for our customers. We look forward to building upon the strong relationships that Bankers has established with the independent agent network."
"FNF shares our philosophy of providing best in class customer service to our independent agents and customers," said David K. Meehan, Vice-Chairman of Bankers Insurance Group. "We are excited to work with FNF in continuing to grow the flood business and providing additional products and services through the independent agent network."
Source: Fidelity National Financial, Inc.