Bankers Sells First Community, Flood Renewal Rights

Officials of St. Petersburg, Fla.-based Bankers Insurance Group announced the sale of selected assets to Fidelity National Financial and Fidelity National Insurance Services has been finalized.

In the sale, Fidelity acquired First Community Insurance Company, a Bankers property and casualty subsidiary licensed in all 50 states. The sale also includes the right to issue new and renewal business on Bankers’ 360,000-plus federal flood insurance policies originated through a network of 8,000 independent agents. Bankers will realize an immediate infusion of capital from the transaction.

Bankers vice chairman David K. Meehan described the sale as “somewhat bittersweet.” He added, “As one of the first entrants into the federal government’s National Flood Insurance Program, we spent 20 exciting years building our flood business, ultimately becoming the nation’s largest provider of flood insurance written through independent agents. Now, however, the capital from this transaction will provide the foundation for some significant new initiatives: enhanced development of our subsidiaries, expansion of our commercial and personal lines, and creation of new niche products for our agents.”

Mark Davey, president and CEO of Fidelity National Insurance Services, called acquisition of the Bankers flood business “a natural fit with our existing products and services.” He said, “We expect to build productive and mutually beneficial relationships with the thousands of independent agents who have been writing Flood with Bankers. Acquiring First Community will give us a proven P&C carrier with which to grow that policy base.”

Meehan said that individual policies will be reassigned to Fidelity at renewal, with the complete transition expected to take approximately 12 months. During that time, Bankers will work closely with Fidelity to ensure a smooth changeover. In addition, 15 members of Bankers’ experienced flood staff will be joining Fidelity in sales and management positions, which Meehan said “will help ensure Fidelity’s success while providing a seamless transition for our agents.”

Bankers’ service provider, Insurance Management Solutions Group, will continue to service all the policies and associated claims.

Topics Mergers & Acquisitions Agencies Flood