Security, United Title brands no more

Fidelity National Financial Inc. is bringing the operations of two Colorado-based title companies it acquired from bankrupt Mercury Cos. -- Security Title Guaranty Co. and United Title Co. -- under the umbrella of Fidelity National Title Insurance Co., extinguishing brands that once underwrote nearly one in three title insurance policies in the state.

Fidelity acquired Security and United Title in August 2008, after Mercury closed down 161 title and escrow offices operated by subsidiaries in California, Arizona and Texas, and lenders stopped doing business with Mercury's Colorado subsidiaries.

Mercury, which had an exclusive underwriting agreement with First American Corp., claimed a 30 percent market share of Colorado's title insurance business at the time (see story).

Signs that Mercury was in financial trouble first emerged in December 2007 when its California-based subsidiary, Alliance Title, closed its doors, leaving hundreds of workers to file claims for unpaid wages and commissions. Alliance Title filed for bankruptcy in June 2008, followed by Mercury and its other affiliates in October 2008.

The California Department of Industrial Relations in December announced a settlement under which 633 former employees of Mercury's other California subsidiaries, Financial Title Co., Lenders Choice Title Co. and Lenders First Choice Agency Inc., were to receive $4.29 million in back wages, expenses and commissions. The settlement did not resolve the wage claims of 594 Alliance Title employees.

Fidelity National Financial became the nation's largest title insurance underwriter in December 2008 when it acquired bankrupt LandAmerica Financial Group Inc.'s underwriting companies, Commonwealth Land Title Insurance Co., Lawyers Title Insurance Corp. and United Capital Title Insurance Co. ...CONTINUED

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