Fidelity Reduces Sedgwick Stake
Fidelity National Financial Inc. here has sold 20% of its stake in Sedgwick Claims Management Services Inc. to UnitedHealth Group.
"This sale of a portion of our stake in Sedgwick CMS is consistent with our stated goal of creating liquidity from the sale of some of our assets," said FNF's chairman William P. Foley II. FNF is left with a 32% stake (down from 40%) in Sedgwick CMS. The other owners of Sedgwick CMS - Thomas H. Lee Partners, Evercore Partners and David A. North - sold UnitedHealth a pro-rata portion of their stakes, giving UnitedHealth a 20% ownership share.
Separately, A.M. Best Co., Oldwick, N.J., affirmed the financial strength and issuer credit ratings of FNF, citing favorable capitalization, adequate operating results and its strong market profile as one of the nation's largest title insurers.
But, Best added, those positives are "somewhat offset" by the current real estate downturn, which has led to a significant decline in operating revenue and higher claim activity for FNF. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/