WRM America Holdings, a specialty lines property and casualty insurance and risk management holding company backed by Aquiline Capital Partners, will buy the flood insurance business of publicly traded Fidelity National Financial Inc. The business will operate as a wholly-owned subsidiary of WRM America, the company said. Aquiline Capital focuses on financial services investments across industries such as property and casualty insurance, banking, securities, asset management, life insurance and financial technology.
WRM America Holdings, LLC (“WRM America”), a specialty lines property and casualty insurance and risk management holding company, announced today it has reached a definitive agreement to acquire the flood insurance business of Fidelity National Financial Inc. (NYSE: FNF). Fidelity National Financial’s flood and excess flood business — Fidelity National Indemnity Insurance Company (“FNII”) — 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 (“NFIP”), 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.”
“As a specialty lines P&C insurance company with a history of successfully managing public-private partnerships, WRM America is the ideal partner to support the growth of the FNII flood and excess flood business and strengthen our position in the flood insurance market,” commented G. Michael Sloane. “We are excited to be joining WRM America and to continue to provide the superior coverage and service that our agents and their clients have come to expect.”
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.
WRM America worked closely with its lead shareholder Aquiline Capital Partners to consummate the agreement.
About WRM America Holdings, LLC
WRM America Holdings, LLC is a specialty lines property and casualty insurance and risk management holding company offering comprehensive solutions for public and private sector entities. WRM America serves its clients’ unique needs through its operating companies: Wright Risk Management, which manages the New York Schools Insurance Reciprocal (A.M. Best “A” (Excellent)), the New York Municipal Insurance Reciprocal (A.M. Best “A-” (Excellent)), and the New York State Municipal Workers’ Compensation Alliance; RMI Consulting; and WRM America Indemnity Co. (A.M. Best “A-” (Excellent)). The company is headquartered in Uniondale, NY. For more information, please visit www.wrmamerica.com.
About Aquiline Capital Partners, LLC
Aquiline Capital Partners, a global financial services private equity firm lead by Jeff Greenberg, invests in financial services enterprises across industries such as property and casualty insurance, banking, securities, asset management, life insurance and financial technology. Aquiline seeks to add value to its portfolio companies through strategic, operational, and financial guidance.
About Fidelity National Indemnity Insurance Company
Fidelity National Indemnity Insurance Company is the nation’s largest provider of flood insurance with over 20 years of experience as a leading WYO company through the NFIP. FNII management participates in NFIP flood management committees as well as many flood industry-related organizations.