North Carolina-based HG Holdings said it has agreed to acquire 100% of the equity of Florida-based National Consumer Title Insurance Co. from Southern Fidelity for for $5.5 million.
The deal also includes 100% of the interest in National Consumer Title Group, which indirectly owns 50% of the membership interest in Omega National Title Agency.
The deal marks real estate investment and management firm HG’s initial entry into the insurance business. Steve Hale is HG Holdings’s chairman and chief executive officer. The company was formerly known as Stanley Furniture Co.
The seller, Southern Fidelity, was formed in 2005 and offers personal lines coverage in Florida, South Carolina Louisiana and Mississippi through independent agents. Last November, Southern Fidelity ceded a majority stake in ownership to Hudson Structure Capital Management, which sells reinsurance as HSCM Bermuda.
According to rating firm Demotech, National Consumer Title had $1.6 million in direct written premium in 2020, up from $1 million in 2019.
The deal must be approved by regulators including the Florida Office of Insurance Regulation.
Topics Mergers & Acquisitions Carriers
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