North Carolina-based HG Holdings Inc agreed last week to acquire 100% of the equity of Florida-based National Consumer Title Insurance Company — owned by Southern Fidelity — and 100% of the interest in National Consumer Title Group LLC.
HG Holdings will pay Southern Fidelity $5.5 million, according to a statement put out by the company.
Steve Hale, HG Holdings CEO and chairman, said the deal marks HG’s first entry into the insurance business after dealing in real estate investment and management.
“We are excited about the prospects of entering the insurance industry via this title insurance platform,” Hale said in a company release. “Working with the owners and management of Southern Fidelity to complete this transaction was delightful, and we hope to find future ways to partner with them.”
Per Demotech, National Consumer Title had $1.6 million in direct written premiums in 2020. Of note, the company indirectly owns 50% of the membership interest in Omega National Title Agency, according to a release from HG Holdings.
Formerly known as Stanley Furniture Company, HG Holdings owns and operates 24 single-tenant properties leased for the occupancy by federal agencies — including the Federal Bureau of Investigation, the Drug Enforcement Administration, the Social Security Administration, and the Department of Transportation.
HG Holdings reported $27 million in first quarter 2021 assets, but lost $188,000 in income.
There have been plenty of first quarter acquisitions in the title industry. Wisconsin-based Knight Barry Title announced its acquisition of MLS Title in mid-April, followed by Community Title Network LLC acquiring Colony Title Group LTD at the end of the month.
Stewart Title also recently acquired Prima Title LLC, a Santa Fe, New Mexico-based company, and Blend announced in March its acquisition of Title365 from the Mr. Cooper Group for approximately $422 million. And TitleOne, a subsidiary of Realogy Title Group, announced in March the acquisition of Land Title of Nez Perce County in Lewiston, Idaho.