Acquisitive Growth the Policy for Insurance

Aquiline Capital Partners-backed WRM America has acquired Fidelity National Indemnity Insurance, the flood insurance business of Fidelity National Financial (NYSE: FNF), for $219.5 million. The acquired business provides federal flood insurance through the National Flood Insurance Program. WRM America is a specialty lines property and casualty insurance and risk management holding company.

Since the beginning of 2007, PE investors have invested in 203 companies primarily involved in the Insurance industry, according to the PitchBook Platform. With 41 deals completed so far this year, 2011 is just two deals away from matching last year's final deal count and on track to continue a recovery from a five-year low in 2009 of just 25 deals. This recovery in deal flow has been largely supported by add-on acquisitions, which have accounted for 80% of the activity in 2011 to date, almost double its share in 2007.