In 1992, Chicago Title and Trust Co. and Chicago Title Insurance Co. moved their
corporate headquarters to the new Chicago Title and Trust Center, located at 171 N. Clark St. in
Chicago. The 50-story post-modern edifice is located on a historic parcel of property, the site
of the city's first city hall and municipal courthouse and one of its predecessor companies.
In 1995, the company restructured its financial services businesses under a new name: Alleghany
Asset Management Inc. Alleghany Asset provides mutual fund and investment management and advisory
services and is composed of Montag & Caldwell, Inc. (Atlanta), The Chicago Trust Co. (also
established in 1995) and Chicago Deferred Exchange Corp. Alleghany Asset has total assets under
management in excess of $21.3 billion.
During 1997, CT&T celebrated its 150 year anniversary. Our company was honored by the city of
Chicago and the Illinois State Historical Society, as well as the state of Indiana and others.
In October of 1997, CTT introduced CastleLink, the company's single source mortgage service for
major national mortgage lenders.
On December 17, 1997 Alleghany Corp. announced its intention to establish the title insurance and
real estate-related services businesses conducted by CT&T as an independent, publicly traded
company through a spin-off to Alleghany stockholders.
On June 17th this spin off was complete and Chicago Title Corporation became independent,
publicly traded company with the ticker symbol "CTZ". For the full year 1998, we
achieved record financial performance, with all market sectors contributing to these results.
Being a public company we continued to grow through our many acquisitions. We announced 10
acquisitions in 1998 and early 1999. This included a number of companies that broaden our
presence with national originators and servicers. In 1998, we acquired Universal Mortgage
Services Inc., now known as Chicago Title Field Services, which provides property inspection,
preservation and maintenance services nationwide. Shortly thereafter, we entered the business
of providing foreclosure and reconveyance services with the acquisition of California-based
Consolidated Reconveyance Co.
The acquisition of Westfall & Company, a mortgage servicing company, further enhanced the
servicing sector of the residential mortgage business. We also acquired two of the largest and
most experienced escrow providers in California, Escondido Escrow and Ranch & Coast Escrow.
The former is also one of the leading timeshare escrow organizations in the nation.
Our title agency acquisitions were deliberately focused on growth markets with higher-than-average
housing turnover rates, including United Title of Nevada, which has operations throughout the state,
and Yuma Title and Trust Co., one of the leading title agencies in Yuma County, Arizona. In early
1999, we completed three other significant acquisitions when we purchased Phoenix-based Security
Title, the largest independent agency in Arizona, as well as Blue Ridge Title of Charlottesville,
Virginia and Island Title of Oak Harbor, Washington.
Another source of strategic growth is alliances. Again, only a national company with our scope and
resources is a candidate for the kind of activities that will let us penetrate markets in new ways.
At year-end 1998, we announced a new strategic alliance with Cendant Corporation. Chicago Title
will have a preferred relationship facilitating title insurance transactions for Cendant's COLDWELL
BANKER®, Century 21®, and ERA®, franchises and their clients. Also
in 1998, Chicago Title Credit Services signed a letter of intent with Trans Union to enter into an
affiliation arrangement through which Trans Union and its affiliates may use our merged credit
Chicago Title Corporation achieved a major milestone in 1999 when it signed a definitive agreement
on August 1 to be acquired by Fidelity National Financial, Inc., creating the pre-eminent company
in the title insurance industry. The historic merger was finalized in March 20, 2000.
The strategic rationale for this merger was one of superlatives. Fidelity and Chicago Title have
nationally recognized and respected brand names, a history of quality service, and excellent
financial performance. The combined organization is the largest in the industry in terms of
revenues, profits, market share, assets and claims-paying reserves.
Furthermore, the combined company is the largest title insurer and provider of real estate related
products and services in the world; distinguished by an unsurpassed distribution system comprised
of over 1,000 offices and 7,000 agents, leading market share in excess of 30%, geographic
diversity, complementary business mixes and the strongest financial position in the industry.
Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance,
specialty insurance, claims management services and information services. FNF is one
of the nation's largest title insurance companies through its title insurance
underwriters - Fidelity National Title, Chicago Title, Ticor Title, Security Union Title
and Alamo Title - that issue approximately 28 percent of all title insurance policies
in the United States. FNF also provides flood insurance, personal lines insurance and
home warranty insurance through its specialty insurance business. FNF also is a
leading provider of outsourced claims management services to large corporate and public
sector entities through its minority-owned subsidiary, Sedgwick CMS. FNF is also a
leading information services company in the human resource, retail and transportation
markets through another minority-owned subsidiary, Ceridian Corporation. More information
about FNF can be found at www.fnf.com.
And we look forward to the journey ahead.