WRM America to Acquire Fidelity National Financial's Flood Insurance Business for $210M

WRM America Holdings announced today it has reached a definitive agreement to acquire the flood insurance business of Fidelity National Financial Inc. FNF. Fidelity National Financial's flood and excess flood business – Fidelity National Indemnity Insurance Company – will operate as a wholly-owned subsidiary of WRM America, and will continue to be led by Patty Templeton-Jones and G. Michael Sloane, who will become members of the senior management team at WRM America. The FNII flood business is the nation's largest provider of federal flood insurance through the National Flood Insurance Program , capturing in excess of 17% of the total “Write Your Own” program market in 2010. The FNII flood business offers NFIP and excess flood insurance through its national network of independent agents and brokers, and has consistently achieved an industry-leading renewal rate through its customer-focused approach. “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.” 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. Central operations of the FNII flood business will remain headquartered in St. Petersburg, Florida and the group will retain its 220 dedicated employees.