Fidelity closes in on LandAmerica deal - Regulators must still approve

From Inman News-

Fidelity closes in on LandAmerica deal-Antitrust regulators must still grant approval

Fidelity National Financial Inc. has the green light from Nebraska insurance regulators and a federal bankruptcy court in Virginia to buy LandAmerica Financial Group Inc.'s two largest underwriting subsidiaries, Lawyers Title Insurance Corp. and Commonwealth Land Title Insurance Co., for $282 million.

The transaction, when completed, would make Fidelity the nation's largest title insurance company.

Roadblocks:

The sale is opposed by the two smallest of the "big five" title insurers -- Stewart Title Guaranty Co. and Old Republic International Corp -- who argue that the resulting industry consolidation could restrict competition.

Lawyers representing LandAmerica's creditors had also asked the bankruptcy court to delay the sale for seven to 10 days, saying a better offer than Fidelity's could be in the works.

What will the impact be in New Jersey? Hard to say right now. We write for Fidelity National Title Insurance Company and Chicago Title Insurance Company. Arguments have been made over the years that there is no true competition between title insurance companies because rates are governed by the so-called "Rate Manual." With the elimination of LandAmerica's presence, one more competitor has been reduced at the top level although you can say the title operations are separate.

Will Fidelity save money by consolidating different aspects of its business, e.g., underwriting and claims by blending Commonwealth and Lawyers Title operations into Fidelity and Chicago Title?
Time will tell.

Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306.
Tel 201-656-9220. Fax 201-656-4506.
E-mail vti@vested.com - www.vested.com

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