First American Announces Entry Into Property and Casualty Insurance Book Transfer Agreements

Rhea-AI Summary

First American Financial Corporation (NYSE: FAF) announced an exit from its property and casualty insurance business by entering into book transfer agreements with Safeco Insurance and Heritage Insurance Holdings. These agreements will allow property and casualty agents to transfer their policies efficiently. The decision follows a process initiated in October aimed at refocusing on core business operations. The transfer is expected to be completed by the end of Q3 2022. Dennis J. Gilmore, CEO, emphasized the reliability of the new carriers for agents and customers.

Positive

• Successful exit from the property and casualty insurance sector.
• Partnerships with established companies Safeco and Heritage provide value to agents and customers.

Negative

• Exit from property and casualty business could lead to reduced revenue streams for FAF.

First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, announced today that its property and casualty insurance subsidiaries have entered into book transfer agreements with Safeco Insurance (Safeco), a Liberty Mutual Company, and Heritage Insurance Holdings, Inc. (Heritage). The agreements provide qualifying First American property and casualty insurance agents and customers an opportunity to efficiently transfer their policies to Safeco or, in certain circumstances, Heritage.

The entry into these agreements is the result of the initiation of a process by the company, announced in October of last year, to exit its property and casualty business and to maintain focus on its core business.

“Safeco and Heritage are leaders in book transfer arrangements and have a strong commitment to serving independent agents,” said Dennis J. Gilmore, CEO, First American Financial Corporation. “These agreements allow us to exit our property and casualty operations, while providing a valuable option for many of our agents and customers to move forward with established and well-respected carriers.”

The company expects the transfer to be completed by the end of the third quarter of 2022.

Merger & Acquisition Services Inc. served as the sole financial advisor to First American Financial Corporation.

About First American

First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $6.2 billion in 2019, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2020, First American was named to the Fortune 100 Best Companies to Work For^® list for the fifth consecutive year. More information about the company can be found at www.firstam.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210119005889/en/

FAQ

What are the recent agreements made by FAF?

FAF entered into book transfer agreements with Safeco Insurance and Heritage Insurance to exit its property and casualty business.

Why is FAF exiting its property and casualty business?

The exit is part of FAF's strategy to refocus on its core business, initiated in October.

When will the transfer of policies be completed?

The transfer is expected to be completed by the end of Q3 2022.

What does FAF's partnership with Safeco and Heritage offer?

The partnerships allow qualifying agents and customers to transfer their policies efficiently to reputable carriers.

What impact might FAF's exit from property and casualty business have?

The exit could potentially reduce revenue streams from the property and casualty insurance sector.