Fidelity acquires a Life Insurance Company

Fidelity National Financial is set to Acquire FGL Holdings, a life insurance company based in the cayman islands. This deal is worth $2.7 Billion that would grow Fidelity’s product reach and help grow their market share. Fidelity has agreed to buy FGL’s common shares at $12.50 a share. This puts Fidelity’s valuation of FGL at $2.7 Billion. “We are excited to announce our plans to acquire F&G Holdings and look forward to welcoming F&G employees and policyholders to the FNF family,” said William P. Foley II, chairman of FNF on Insurance Business Insider.

Why Should We Pay Attention?

Fidelity has the financial backing to bring FGL to a much larger audience. Allowing from FGL to go national, rather than growing state by state. FGL could be a serious competitor in the market in the coming years. Fidelity is behind FGL’s products and seems to believe in Chris Blunt, F&G’s president, and CEO. “Through our minority ownership position on F&G, we have come to know the business well and have developed a great respect for Chris Blunt, F&G’s president, and CEO,” said FNF CEO Raymond Quirk. “We believe FNF’s size, scale, and financial strength will offer significant advantages to Chris and the management team as they continue to lead F&G. We see incredible potential in working with the management team to invest in and grow F&G’s business on a national level.” Quirk told Insurance Business insider.

What is FGL’s Position on this Acquisition?

FGL appears to be excited about the future of their company. They are proud of their accomplishments. “We are pleased with the agreement reached with FNF and are proud of all F&G has accomplished,” Blunt said. “The transaction presents all of our stakeholders with immediate value while offering F&G a strong platform for continued growth. Upon completion, FNF will provide the ability to fuel our channels for distribution while offering additional cross-selling opportunities.” Blunt stated on Insurance Business Insider. These companies together can give agents the tools they need to grow their business, while at the same time providing High-Quality service to their clients. Giving them the best possible products for their needs.

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