Fidelity National Financial, a US-based provider of title insurance and mortgage services, has agreed to sell an 85% interest in its personal lines business to WT Holdings for $119m.
As per the terms of the deal, WT Holdings will acquire Fidelity National Insurance Company (FNIC), Fidelity National Property and Casualty Insurance Company (FNPAC) and FNIS Insurance Services.
Under the new ownership, FNIC, FNPAC and FNIS Insurance Services will continue to offer the same quality products and services.
Fidelity National Financial said that the sale is expected to result in a $15m pre-tax loss and it will retain a 15% minority ownership position in the personal lines business.
The transaction, which is subject to regulatory approval and customary closing conditions, is expected to complete during the late first quarter or early second quarter of 2012.
Fidelity National Financial chairman William Foley said that the personal lines business carries higher earnings volatility than they are comfortable maintaining and they believe they can redeploy this capital into other uses that will generate higher returns.