Entitle Direct Group, Inc. (the "Company"), the parent company of the country's leading direct-to-consumer title insurance underwriter, EnTitle Insurance Company, announced today the closing of an investment by an affiliate of PartnerRe Ltd., a leading global reinsurer. PartnerRe invested $19 million in the Company, while existing shareholders invested an additional $2 million. Proceeds from the investment will be used to increase the surplus of EnTitle Insurance Company and drive the growth of the Company's direct-to-consumer title insurance distribution channel, ENTITLE DIRECT (www.ENTITLEDIRECT.com).
The Company was created with a two-fold mission: lower home closing costs and introduce transparency into the closing process. Although EnTitle Insurance Company was established nearly 35 years ago, ENTITLE DIRECT was launched in 2008 and broke through the traditional agent model for title insurance. The industry-standard title insurance model fosters "reverse competition" by encouraging the seller (the title insurance company) to market their product to an intermediary, distributor or provider (the title insurance agent). ENTITLE DIRECT brings transparency to the title insurance industry and provides an alternative solution for lenders and consumers at significantly lower cost.
By building a highly efficient centralized operating platform, and by eliminating title agent commissions (as much as 80% of the title insurance premium), ENTITLE DIRECT offers consumers savings of up to 35% on title insurance premiums compared to the competition. Additionally, ENTITLE DIRECT provides real estate and mortgage professionals with the competitive advantage of lower closing costs. Timothy Dwyer, CEO of Entitle Direct Group and Founder of ENTITLE DIRECT says, "ENTITLE DIRECT shifted the paradigm of the 130-year-old title insurance industry and has already saved consumers millions of dollars on title insurance. We deliver an exceptional closing experience and provide lenders with another instrument with which to compete for business." EnTitle Insurance Company is currently licensed in forty jurisdictions throughout the country.
As a leading global reinsurance group with total capital of $7.5 billion as of June 30, 2012, PartnerRe is investing in the title insurance industry for the first time. PartnerRe will provide the Company with guidance and oversight as it grows in a market dominated by four major underwriters. According to the American Land Title Association, these four underwriters currently control nearly 90% of the total market.
Dwyer continues: "This investment from PartnerRe validates the Company's mission and fortifies our capital base, enabling us to grow our consumer-centric model, which will result in more consumers lowering their title insurance costs and enhancing their closing experiences."
ENTITLE DIRECT has been experiencing rapid growth in 2012 and is on pace to grow order volume by approximately 75% over 2011, which also represents a six-fold increase since 2009. Dwyer adds: "One of the keys to ENTITLE DIRECT's success is that the Company not only provides consumers with significant savings on title insurance, but also educates and empowers them to control their closings. We innovated to deliver a better, more affordable experience for homeowners and homebuyers."
Sandler O'Neill + Partners, L.P. acted as Entitle Direct Group's sole placement agent in this transaction. For more information about ENTITLE DIRECT or to request a title insurance quote, visit www.ENTITLEDIRECT.com.
About ENTITLE DIRECT:
Entitle Direct Group, Inc. is the parent company of EnTitle Insurance Company, the country's first direct-to-consumer title insurance company offering savings of up to 35% on title insurance. ENTITLE DIRECT (www.ENTITLEDIRECT.com) is the direct-to-consumer distribution channel of EnTitle Insurance Company. EnTitle Insurance Company was founded in 1978 and is approved to issue title insurance by the Department of Insurance in every state where its policies are offered.
About PartnerRe:
PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multiline and other lines, mortality, longevity and health, and alternative risk products. For the year ended December 31, 2011, total revenues were $5.4 billion. At June 30, 2012, total assets were $23.1 billion, total capital was $7.5 billion and total shareholders' equity was $6.7 billion.