AM Best

A.M. Best Affirms Ratings of Fidelity National Financial Inc. and Its Subsidiaries



Neil Das Gupta

(908) 439-2200, ext. 5206

Gary Davis

(908) 439-2200, ext. 5665

Public Relations

Jim Peavy

(908) 439-2200, ext. 5644

Rachelle Morrow

(908) 439-2200, ext. 5378


OLDWICK, N.J. - JUNE 04, 2008 12:00 AM (EDT)
A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a" of Fidelity National Financial Group (Fidelity) and its eight title insurance members. Concurrently, A.M. Best has affirmed the FSR of A- (Excellent) and ICRs of "a-" of Fidelity National Group and its members. In addition, A.M. Best has affirmed the ICR of "bbb" of the parent holding company, Fidelity National Financial, Inc. (Jacksonville, FL) [NYSE: FNF]. The outlook for all ratings is stable. (See below for a detailed listing of the companies and ratings.)

The ratings reflect Fidelity's favorable capitalization, adequate operating results and strong market profile as one of the largest title insurance groups in the United States, along with moderate financial leverage at the holding company.

These positive rating factors are somewhat offset by Fidelity's challenge to sustain and manage operating performance through the current downswing in the real estate cycle, which has resulted in a significant decline in operating revenue along with higher claim activity. However, Fidelity's active management of its flexible cost structure is expected to help mitigate this effect. Also, though financial leverage remains moderate, the debt-to-capital ratio measure has increased somewhat over the past year primarily due to the financing of the acquisition by Fidelity of a minority ownership stake in Ceridian, a leading information services and payment processing company.

Fidelity's rating outlook is based on the title group's favorable capitalization, adequate operating earnings and leading market position.

The FSR of A (Excellent) and ICRs of "a" have been affirmed for Fidelity National Financial Group and its following members:

- Alamo Title Insurance

- Chicago Title Insurance Company of Oregon

- Chicago Title Insurance Company

- Fidelity National Title Insurance Company

- National Title Insurance of New York, Inc.

- Security Union Title Insurance Company

- Ticor Title Insurance Company of Florida

- Ticor Title Insurance Company

The ICR of "bbb" has been affirmed for Fidelity National Financial, Inc.

The FSR of A- (Excellent) and ICRs of "a-" have been affirmed for Fidelity National Group and its following property/casualty members:

- Fidelity National Insurance Company

- Fidelity National Indemnity Insurance Company

- Fidelity National Property and Casualty Insurance Company

For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers.

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