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March 30, 2022updated 31 Mar 2022 8:30am

Realogy divests title insurance underwriter to Centerbridge Partners

US-based Realogy Holdings has closed the sale of title insurance underwriter, Title Resources Guaranty Company, to an affiliate of private investment management firm Centerbridge Partners.

As part of the transaction, Realogy received a cash of $210m as well as a 30% interest in the newly formed limited partnership joint venture (JV).

This JV indirectly owns the Title Insurance Underwriter.

Realogy, through a JV with Centerbridge Partners, will retain a 30% stake in Title Resources Guaranty. Centerbridge Partners will own the remaining 70% stake.

Realogy CEO and president Ryan Schneider said: “As we continue to reimagine and deliver a more integrated real estate transaction, today’s closing enables Realogy to be even more focused on our core business, including critical consumer-facing transaction services in franchise, brokerage, title settlement and escrow, and mortgage.

“We look forward to working with our joint venture partners to more fully unleash the underwriter’s growth potential as we continue to invest in our strategic priorities and move both Realogy and the industry to what’s next.”

Realogy said its portion of future minority interest earnings from its stake will be reported within its Realogy Title Group segment.

This segment includes the Realogy’s title, escrow, and settlement services business and mortgage origination JV.

Meanwhile, Title Resources Guaranty said it received approval from the Texas Department of Insurance to form and fund the title underwriting joint venture.

The JV indirectly owns the Title Insurance Underwriter.

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