HOUSTON--(BUSINESS WIRE)--Stewart Information Services Corporation (NYSE: STC) today announced the mutual termination of its merger agreement with Fidelity National Financial, Inc. (NYSE: FNF) after not obtaining the necessary approval by the U.S. Federal Trade Commission. In light of the FTC’s decision, the Stewart Board has clearly determined that leveraging the company’s strong brand, financial position, and valued employees to grow the organization as a standalone entity will create the greatest shareholder value. In connection with the termination of the merger agreement, Fidelity has agreed to pay a $50 million reverse termination fee to Stewart that was contemplated by the merger agreement.
Stewart has also announced changes to its executive leadership to maximize the ongoing execution of its strategy. Effective immediately, current director Frederick Eppinger will become Chief Executive Officer while Matthew Morris, who has served as Chief Executive Officer since 2011, will remain with the company and assume the role of President. John Killea, who has been President since 2017, will remain General Counsel and Chief Legal Officer, roles he has held since 2008 and 2012, respectively.
“While we were disappointed with the FTC’s decision regarding Stewart’s combination with Fidelity, we are well-positioned to execute on a standalone strategic plan built around growth and profitability,” said Thomas Apel, Stewart’s Chairman of the Board. “The actions we have taken today are designed to enhance our strength, focus our company on the opportunities before us and build a leadership team with the best mix of experience and expertise to drive value creation. To further support the new direction, we will be actively reviewing the Board’s makeup to ensure the appropriate mix of diversity as well as operational and growth-oriented experience.
“Fred’s proven track record of aggressively growing a company and increasing shareholder value while he was CEO at Hanover Insurance Group, coupled with his passion for Stewart’s success, makes him ideally suited to serve as CEO at this critical juncture. We also are pleased that Matthew Morris will remain with the company as President, working with Fred and our leadership team to accelerate our strategic plan.”
“I am confident in the strength of the Stewart brand and the people behind it, and look forward to working with our talented team to forge a legacy of a growth and performance-oriented culture that delivers exceptional value creation as a standalone company,” said Eppinger. “I believe the future is bright for Stewart. I see great potential in our ability to enhance performance while leveraging the core strengths of Stewart, its culture and people.”
Frederick Eppinger Biography
Eppinger, 60, has more than 35 years of experience in finance and strategic marketing in the insurance industry, and has been a Stewart director since 2016. He most recently served as President, CEO and director for The Hanover Insurance Group until his retirement in 2016. As CEO, he led Hanover’s unprecedented growth, more than doubling the company in size, from 2003 to 2016. Eppinger’s experience also includes serving as a partner for the global management consulting firm McKinsey & Company from 1985 to 2000. Eppinger currently serves as a director of Centene Corp and QBE Insurance Group Limited. He received a Bachelor of Arts from the College of the Holy Cross and a Masters of Business Administration from Dartmouth College’s Tuck School of Business.
About Stewart
Stewart Information Services Corporation (NYSE:STC) is a global real estate services company, offering products and services through our direct operations, network of Stewart Trusted Providers™ and family of companies. From residential and commercial title insurance and closing and settlement services to specialized offerings for the mortgage industry, we offer the comprehensive service, deep expertise and solutions our customers need for any real estate transaction. At Stewart, we believe in building strong relationships – and these partnerships are the cornerstone of every closing, every transaction and every deal. Stewart. Real partners. Real possibilities.™ More information is available at the Company's website at stewart.com, or you can subscribe to the Stewart blog at blog.stewart.com, or follow Stewart on Twitter® @stewarttitleco.
