Fidelity National's DBA Pens Deal with Benefits Resource
Digital Benefit Advisors (DBA), the leading division of Digital Insurance -- a major employee benefits-only agency and subsidiary of Fidelity National Financial (FNF) -- has collaborated with a niche benefits consulting firm of Southern California, Benefits Resource. As per terms of the alliance, Benefits Resource now operates under the DBA brand name while retaining its office in Southern California, which will also serve as DBA’s primary hub office in the region.
The deal requires the employees of Benefits Resource to join DBA. Fidelity National’s main motive behind merging Benefits Resource with itself is to utilize its veteran workforce and expertise in the benefits consulting space so as to enhance its operations and increase its client base..
Based in Florida, Fidelity National provides title insurance, technology and transaction services to the real estate and mortgage industries all across the U.S. On the other hand, Benefits Resource is adept in enhancing value of businesses, cost management and enhancing employees’ perception of the benefits available. Fidelity National intends to utilize these strengths of Benefits Resource to enhance its presence in the West Coast.
Benefits Resource has maintained a good reputation in providing holistic healthcare benefits solutions to organizations through innovative plan designs, negotiation strategies, risk management solutions and human resource and benefits technology options in the Southern Californian region. Digital Benefit’s operating strength,, private insurance exchange platform and knowledge will expectedly enhance the firm’s capabilities and consolidate its operations in the health benefits market.
Fidelity National’s DBA has been following a strategy of roping in experienced local market advisors and combining its resources to strengthen operations and enhance the overall client experience. The aforementioned deal is in line with this. We are optimistic about the prospects of the deal as it should help Fidelity National expand its resources and tap opportunities in the West Coast, the primary market for the company now.
Currently, Fidelity National has a Zacks Rank #3 (Hold). However, better-ranked stocks in the insurance space that look attractive at current levels include AmTrust Financial Services, Inc. (AFSI), Federated National Holding Company (FNHC) and Mercury General Corp. (MCY). All three stocks sport a Zacks Rank #1 (Strong Buy).
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