Fidelity’s title insurance business was not named in the agreement. In October after a few years of poor performance for the title insurance industry, A.M. Best released a report—“Despite Economic Turbulence, Title Industry Outlook Remains Stable”—stating the title insurance industry managed to report an approximate 7-percent increase overall in surplus, driven mainly by the equity market recovery in 2010, and A.M. Best has maintained its stable rating outlook for the title sector with the view that the majority of ratings will not change over the near-to-medium term. In the report, the rating agency identified Fidelity National Financial Group’s rating of A-/Stable.
The sale price is subject to typical closing adjustments based on surplus at closing. FNF expects to close during the late first quarter or early second quarter of 2012 after regulatory approval and customary closing conditions. The personal lines business sale is expected to result in approximately a $15 million pre-tax loss for FNF.
"This sale of our personal lines business makes strategic sense for our company," said FNF Chairman William P. Foley II. "The personal lines business carries higher earnings volatility than we are comfortable maintaining and we believe we can redeploy this capital into other uses that will generate higher returns and greater value for our shareholders.
