Fitch Affirms Fidelity National Financial's Ratings; Outlook Stable

Fitch Affirms Fidelity National Financial's Ratings; Outlook Stable

Fitch Ratings, a global leader in financial information services and credit ratings, has affirmed Jacksonville, Florida-based Fidelity National Financial Inc.'s BBB+ long-term issuer default rating and the A (strong) insurer financial strength ratings on its subsidiaries [1]. The rating agency noted Fidelity's strong business profile, profitability, capitalization, and the pending acquisition of Stewart Information Services Corp.

Fidelity National Financial is a leading provider of title insurance, specialized insurance, and transaction services to the real estate and mortgage industries. The company's strong business profile stems from its dominant market position, diverse range of services, and strategic acquisitions.

Fitch's decision to affirm Fidelity's ratings was based on the company's solid financial performance. In the first nine months of 2021, Fidelity reported net income of $1.2 billion, representing a 57% increase compared to the same period in 2020. The company's strong capitalization, with a total shareholders' equity of $12.1 billion, also contributed to the rating affirmation.

Furthermore, Fitch cited the pending acquisition of Stewart Information Services Corp. as a positive factor for Fidelity's future growth prospects. The acquisition, valued at $1.2 billion, is expected to expand Fidelity's service offerings, enhance its data analytics capabilities, and bolster its presence in the real estate and mortgage industries.

Fitch's rating affirmation is in line with other rating agencies' views of Fidelity National Financial. Moody's and A.M. Best have also affirmed their ratings on the company, citing similar reasons for their decisions [1].

References:

[1] S&P Global Market Intelligence. (2021, November 16). Fitch Affirms Fidelity National Financial's Ratings; Outlook Stable. https://www.spglobal.com/marketintelligence/en/news-insights/trending/gvimghoe_kloek1kdxm4ra2