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First American (FAF) Completes Buyout of Georgetown Title

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First American Financial Corporation (FAF - Free Report) recently acquired Georgetown Title. Post-acquisition, Georgetown Title will be part of the direct operations of First American Title Insurance Company, the largest subsidiary of First American.

Founded in 1893, Georgetown Title is the premier land-title company and is located in Georgetown and Round Rock. It is focused on offering invaluable title research and data, since its inception. It provides title insurance and settlement services to Williamson County and Central Texas.

The transaction is expected to fortify First American Title Insurance Company’s presence in Williamson County and better serve customers with added services and resources.

As far as Georgetown Title is concerned, its customers will be able to access the cutting-edge resources and leverage the technology of the largest title and settlement provider, First American Financial.

In line with its strategic initiatives, First American actively pursues acquisitions to boost and expand its core business. In October 2020, it inked a deal to acquire ServiceMac whose mortgage subservicing business is likely to enable First American to provide enhanced end-to-end mortgage, settlement, post-closing services and servicing-related products and solutions. Other notable acquisitions made by the title insurer include Docutech and the full acquisition of Title Security Agency in March 2020.

The title insurer also pursued small title agency buyouts in the regions that it identifies as growth markets. It also continues to make significant investments in technology across all its major businesses to enhance customer experience through digital solutions.

Therefore, this buyout is likely to bolster and expand the insurer’s title insurance business and settlement and escrow services, which in turn contribute to the top-line growth of the company.

Shares of this provider of title insurance, settlement services and risk solutions have gained 22.2% year to date, outperforming the industry’s increase of 16.5%. Moreover, the company’s policy of ramping up growth and capital position should continue to drive share price higher.

Zacks Investment ResearchImage Source: Zacks Investment Research

The company presently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Acquisitions in the Same Space

There have been a host of acquisitions in the insurance space of late, given its significant capital availability. In the second quarter of 2021, Brown & Brown, Inc. (BRO - Free Report) acquired substantially all Piper Jordan assets. Further, Marsh & McLennan Companies, Inc.’s (MMC - Free Report) unit Marsh & McLennan Agency LLC (MMA) recently purchased PayneWest Insurance, one of the largest independent agencies in the United States. Additionally, Alleghany Corporation’s (Y - Free Report) wholly-owned subsidiary Alleghany Capital Corporation took over Wilbert, Inc. (WPS).

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