First American to Buy Five Star Holdings
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First American Financial Corp. said Tuesday it is expanding its drive into insurance products by purchasing a small Irvine-based property and casualty company.
Santa Ana-based First American said it has reached a definitive agreement to buy Five Star Holdings Inc., which offers home, auto and commercial insurance. Terms were not disclosed.
First American said it will operate Five Star as a separate company, retaining all employees and managers. The title insurance company hopes to use its relationship with Five Star to sell homeowners insurance policies to its title customers.
Five Star wrote more than 26,500 policies in 1998 and had net earned premiums of $12 million, a spokeswoman said.
Last year, Five Star agreed to be acquired by Irvine-based Fidelity National Financial Inc. for nearly $24 million in stock, but Five Star officials called off the deal after Fidelity’s stock slumped more than 25%.
First American said it expects to complete the acquisition by the end of the year, subject to regulatory approval.
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