Title insurer and real estate technology provider Fidelity National Financial says it will be the biggest home warranty company in California and expand its market share in Texas and other states by acquiring BPG Holdings LLC and merging it with Fidelity National Home Warranty.
BPG, a provider of home warranties and home inspections to homebuyers and sellers since 1987, has a presence in 14 states, including all of the top 25 housing markets. BPG Home Inspections claims to be the nation’s largest employee-based home inspection company in the country. The company’s general liability and errors and omissions (E&O) policy covers referring Realtors for claims arising from inspections.
“Our combined home warranty business provides a great opportunity to continue with our nationwide expansion efforts, and the home inspection services platform provides a substantial opportunity for further future growth” at Fidelity National Home Warranty, said CEO Billy Jensen in a statement.
Regulators, including the California Department of Insurance, must still sign off on the deal.
With about $100 million in annual premiums, Fidelity National Home Warranty says it’s among the nation’s top five home warranty providers based on contracts in force. In addition to providing home warranties in California, Arizona, Nevada, Texas, Colorado, Washington, Oregon and Idaho, Fidelity National Home Warranty operates Disclosure Source, which provides California natural hazard disclosures.
Home warranty companies depend on real estate brokers and agents for much of their business. The biggest player in the business, American Home Shield, touts home warranties as a marketing tool for listings. American Home Shield acquired rival HSA Home Warranty this year.
Because they provide services to homebuyers and sellers, title insurance companies are also in a position to generate business for home warranty companies. American Home Shield’s biggest competitor is First American Home Buyers Protection Corp., a subsidiary of title insurer First American Financial Corp.
Fidelity National Financial is the nation’s biggest title insurer, issuing policies through five underwriters: Fidelity National Title, Chicago Title, Commonwealth Land Title, Alamo Title and National Title of New York. Fidelity National Financial is also a majority owner of property data aggregator Black Knight Financial Services, a provider of software that powers many multiple listing services.