Just a day after the Flood Insurance Reform Act of 2011
Fidelity National Indemnity Insurance Co. (FNII), the flood insurance business of Fidelity National Financial Inc., will operate as a wholly owned subsidiary of WRM America. The FNII flood business is a provider of federal flood insurance through the National Flood Insurance Program ("NFIP"), capturing in excess of 17% of the total "Write Your Own" program market in 2010, WRM reports. The FNII flood business, which will continue to be led by Patty Templeton-Jones and G. Michael Sloane, offers NFIP and excess flood insurance through its national network of independent agents and brokers. Central operations of the FNII flood business will remain headquartered in St. Petersburg, Fla., and the group will retain its 220 employees.
Under the terms of the agreement, WRM America will acquire FNII and Fidelity National Insurance Services for $210 million, consisting of approximately $122.5 million in cash, $75 million in a seller note and approximately $12.5 million in an expected cash dividend. The transaction is expected to close in the fourth quarter of 2011, subject to regulatory approval and customary closing conditions.
"The addition of the largest provider of federal flood insurance through the NFIP to the WRM America family of companies is another step in our continued growth as a specialty lines insurance company, is representative of our dedication to current and future public-private partnerships, and considerably increases our fee-for-service offering," said William Fishlinger, CEO and Chairman of WRM America. "Their team shares our 'partnership beyond the policy' philosophy, which is a key element of our customer-focused approach to specialty lines insurance and the core of our business relationships."
