The property and casualty insurance subsidiaries of First American Financial have signed book transfer agreements with Safeco Insurance and Heritage Insurance.
The agreements allow qualifying insurance agents and customers of First American property and casualty business to efficiently transfer their policies to Safeco or, in certain circumstances, Heritage.
This move follows the company’s decision to pull the plug on its property and casualty business.
In October of last year, First American announced plans to exit property and casualty business in a bid to maintain focus on its core business.
First American Financial CEO Dennis Gilmore said: “Safeco and Heritage are leaders in book transfer arrangements and have a strong commitment to serving independent agents.
“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.”
First American expects the transfer to be completed by the end of the third quarter of next year.
The company was advised by Merger & Acquisition Services on the transaction.
First American offers title insurance, settlement services and risk solutions for real estate transactions.
The company 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, among others.
It offers its products and services directly and through its agents across the US and abroad.
In December, Dutch insurer Aegon announced plans to cut costs by divesting operations that are capital intensive and offer relatively low returns.