Fidelity National Financial (FNF) recently announced its intent to invest approximately $250 million in F&G Annuities & Life (F&G). FNF held approximately 85% ownership in F&G as of September 30, 2023.
F&G will use net proceeds from the investment to support the growth of assets under management as it capitalizes on opportunities in the market. FNF views this as an attractive investment given F&G’s current momentum and performance, which has exceeded expectations, while still preserving the Company’s excess liquidity as a buffer in response to market headwinds and historical low volumes in the Title business. FNF held $949 million in cash and short-term liquid investments at the holding company as of September 30, 2023.
FNF’s Board of Directors formed a Special Committee comprised of independent members of the Board (the Special Committee) to begin evaluating and negotiating terms for the investment. And FNF’s Special Committee will retain an independent financial advisor, as well as legal counsel. The Special Committee, consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, will thoroughly evaluate the terms and conditions of the investment on an arm’s length basis.
The deal is expected to close in late 2023 or early 2024, subject to customary closing conditions. And the company does not intend to comment on or disclose further developments regarding the Special Committee’s work unless and until it deems further disclosure is appropriate or required.