LandAm's BK Filing, Deal May Make FNF No. 1 in Title

The bankruptcy filing by LandAmerica Financial Group on Wednesday paved the way for a deal that may make Fidelity National Financial Corp. the nation's largest provider of title insurance. Concurrent with its filing, LandAmerica agreed to sell its principal title insurance subsidiaries, Lawyers Title and Commonwealth Land Title, to Fidelity National Title Insurance Corp., subject to regulatory approval. The units being sold account for more than 90% of LandAmerica's title insurance business. Fidelity is paying $298 million for the businesses. According to data from the American Land Title Association, Fidelity's family of title insurance companies accounted for 27% of the title insurance market during the second quarter of this year, second only to First American's 29% market share. Combined, Fidelity National Title Insurance and the LandAmerica units it is buying had 43% of the market in the second quarter. Lloyd Osgood, senior vice president for brand resources at LandAmerica Financial Group, said the title operations being sold have more than $1.1 billion of cash and reserves to back claims. She anticipates that lender clients will continue to work with the executives they are familiar with when the units become part of Fidelity. "The larger benefit is that our principal title operations will become part of the largest, most financially sound title insurer in the industry," Ms. Osgood said in an e-mail response to questions. She noted that LandAmerica's other businesses, including the LoanCare subservicing unit and other lender services, will remain with LandAmerica during the bankruptcy reorganization. The transaction caps a bumpy courtship between Fidelity and LandAmerica. On Nov. 7, Fidelity announced that it had reached a "definitive merger agreement" to buy LandAmerica, but Fidelity canceled the all-stock deal on Nov. 21. Three business days later, Fidelity was back in the picture, picking up just the main title units from LandAmerica. In a news release, Fidelity National Financial chairman William Foley said that to the extent it is legally permissible, Fidelity executives plan to start meeting with managers, employees, agents and customers of Commonwealth and Lawyers Title "to ensure a smooth transition after closing."