Fidelity National Financial Inc. FNF acquired TitlePoint from Black Knight, Inc. through its wholly-owned subsidiary, F&G Annuities & Life, Inc. The transaction, valued at $225 million in cash, is expected to close by this year-end.
TitlePoint boasts a leadership position in the science of real estate property research technology and has been operating under Black Knight's Data & Analytics segment since 2014. Thus, the addition to FNF’s portfolio marks the acquirer’s focus in investment, expansion and integration of property data, images, and search technology and strengthen the compelling portfolio.
FNF has a leading market share in the title insurance industry and looks for strategic buyouts, which, in turn, should drive its operational results. This month, the title insurer acquired St. Louis Title, Security Title Insurance Agency and Accurate Disbursing of St. Louis, Missouri, and Benchmark Title of Southern Illinois. While the buyout consolidates the acquirer’s presence in the St. Louis metropolitan area, it also strengthens the title insurance portfolio.
FNF is focused on ensuring a balanced capital allocation strategy by making investments in title technology and other strategic initiatives to support innovation and organic growth for the business. FNF is likely to benefit from strong origination demand and continued rebound in commercial real estate activity.
Shares of Fidelity National have lost 25.2% year to date against the industry’s increase of 4.8%. However, higher direct premiums, agency premiums, strong origination demand and effective capital deployment will likely help FNF bounce back. FNF currently carries a Zacks Rank #4 (Sell).
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Given the insurance industry’s adequate capital level, players like Arthur J. Gallagher & Co. AJG, Brown & Brown, Inc. BRO and Marsh & McLennan Companies, Inc. MMC have been pursuing strategic mergers and acquisitions.
Arthur J. Gallagher acquired PIUS Limited, LLC, and its affiliate Newlight Capital, LLC, in November 2022. The additions will enhance the acquirer’s portfolio as PIUS Limited helps clients to insure certain intellectual property assets.
AJG’s merger and acquisition pipeline is quite strong, with about $400 million of annualized revenues, associated with around 50 term sheets either agreed upon or being prepared. A solid capital position supports AJG’s growth initiatives. The company, thus, remains focused on continuing its tuck-in mergers and acquisitions. Arthur J. Gallagher’s shares have gained 15.4% year to date.
Brown & Brown’s subsidiary, Brown & Brown Dealer Services, acquired all assets of Finance Builders Inc. The addition of Finance Builders will boost Brown & Brown’s presence in Connecticut and Massachusetts.
Brown & Brown’s impressive growth is driven by organic and inorganic means across all segments. The company intends to make consistent investments to drive organic growth and margins. BRO’s solid earnings have allowed it to expand capabilities, with the buyouts extending its geographic footprint. Brown & Brown’s shares have lost 17.5% year to date.
Marsh & McLennan’s subsidiary, Marsh McLennan Agency, acquired Bradley Insurance Agency. The acquisition will help the acquirer to expand insurance expertise in eastern Tennessee.
Acquisitions are part of the core growth strategies of the company. MMC has made numerous purchases within its different operating units, which have enabled it to enter geographical regions, expand within the existing ones, foray into new businesses, develop segments and specialize within its existing businesses. Marsh & McLennan’s shares have lost 2.3% year to date.
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