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Wednesday, July 13, 2011

Fidelity Nat'l sells largest U.S. flood insurer, (NYSE: FNF)

Title insurer Fidelity National Financial Inc (FNF.N) said on Wednesday it will sell its flood insurance business, the morning after the U.S. House of Representatives approved reforms to the government's flood insurance program. Under the National Flood Insurance Program, private insurers write policies and pass the premiums to the Federal Emergency Management Agency. The legislation passed on Tuesday extends the program to 2016, reduces subsidies to high-risk property owners and lets insurers raise premiums gradually to match risks. Fidelity National said it would sell Fidelity National Indemnity and Fidelity National Insurance Services -- together the largest private provider of flood insurance in the United States -- for $210 million in cash and notes to WRM America Holdings. The units write nearly one in five "write your own" policies, where homeowners go to private insurers for NFIP-backed flood cover. Privately held WRM America was founded in late 2008 as a specialty insurer for the education market. It is backed by Aquiline Capital, the private equity vehicle of insurance industry veteran and former Marsh & McLennan Chief Executive Jeffrey Greenberg.

Fidelity National Financial, Inc. (FNF) is a holding company. Shares of FNF traded higher by 1.35% or $0.21/share to $15.75. In the past year, the shares have traded as low as $12.74 and as high as $16.30. On average, 1484850 shares of FNF exchange hands on a given day and today's volume is recorded at 689323.