Fidelity National Financial Acquires Digital Insurance
Fidelity National Financial has acquired Digital Insurance Inc., according to an announcement by the companies. Terms of the acquisition have not yet been disclosed.
Fidelity, a title insurer and financial services firm who is based in Florida, will take over the health insurance distribution and benefits management firm, which is based in Atlanta.
Insurance Journal reports that Digital is responsible for 20,000 employer clients, 250 broker partnerships, and about $1 billion in annual premiums.
The company’s largest division is Digital Benefits Advisors, a health benefits brokerage agency. It takes the company’s technology platform and uses it to target small and medium businesses directly.
When speaking about the agreement, Fidelity announced that Digital will allow it to broaden its market position quickly in the employee benefits arena. LifeHealthPro notes that FNF Chief Executive Officer George P. Scanlon added:
“Digital Insurance serves a fragmented market with significant organic growth and consolidation potential and the company has a demonstrated record of success in efficiently distributing health benefit plans to the SMB marketplace. Digital has a unique business model and provides FNF with a growth opportunity in an industry undergoing major change.”
Fidelity stated that it will support Digital as it works to put in place mergers an acquisitions as well as when it outsources services to the industry. Digital will also remain a wholly owned subsidiary under the same name. Adam Bruckman, Digital Insurance’s president and CEO, added that Fidelity’s resources will help his company accelerate its plans for growth.
Digital Insurance was able to generate $50 million in revenue last year and is hopeful it will generate $70 million in the new year. The company was able to launch itself into the spotlight by acquiring health insurance brokerage firms and taking over the small group benefits businesses of other brokers. They also formed partnerships with other brokers.
Fidelity owns several title insurance underwriters as well as a major stake in American Blue Ribbon Holdings, Remy International, and Ceridian Corporation.