Fidelity National Financial to buy FGL Holdings in $2.7bn deal
Fidelity National Financial (FNF), a provider of title insurance and transaction services to the real estate and mortgage industries, has signed a merger agreement to acquire Cayman Islands-based annuities and life insurance provider FGL Holdings for approximately $2.7 billion.
The transaction is expected to close in the second or third quarter of 2020, subject to customary closing conditions and approval by F&G shareholders.
Following the completion, F&G will operate as a subsidiary of FNF. F&G is expected to remain headquartered in Des Moines, Iowa, and will continue to be led by Chris Blunt and F&G's current management team.
"We are excited to announce our plans to acquire F&G Holdings and look forward to welcoming F&G employees and policyholders to the FNF family," said FNF chairman William P. Foley, II. "Following the termination of the merger agreement with Stewart Information Services, the board and management diligently reviewed FNF's capital allocation strategy and determined that expanding into the annuity market through the acquisition of F&G Holdings would offer compelling benefit to our shareholders."
CEO Raymond Quirk added: "Through our minority ownership position in F&G, we have come to know the business well and have developed great respect for Chris Blunt, F&G's president and CEO. We believe FNF's size, scale, and financial strength will offer significant advantages to Chris and the management team as they continue to lead F&G. We see incredible potential in working with the management team to invest in and grow F&G's business on a national level."
Chris Blunt, president and CEO of F&G Holdings, said: "We are pleased with the agreement reached with FNF and are proud of all F&G has accomplished. The transaction presents all of our stakeholders with immediate value while offering F&G a strong platform for continued growth. Upon completion, FNF will provide the ability to fuel our channels for distribution while offering additional cross selling opportunities."
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