First American buys
majority stake in Island Title
First American Title Insurance Co. has acquired a majority interest in Island Title Corp. of Hawaii, the companies said yesterday, in a transaction completed Sunday.
Neither company would disclose the purchase price.
Island Title, the second largest title and escrow company in the state after Title Guaranty Escrow and Title Services, will continue to operate under its existing name and management structure.
First American purchased a 20 percent interest in the company in 2000. The latest transaction brings its ownership stake in Island Title to 60 percent.
"Island Title more than doubled its pretax profit in 2003, and we anticipate that it will continue to thrive as a First American subsidiary," said Dennie L. Rowland, executive vice president for First American Title.
The deal adds seven offices and about 100 employees to First American's existing network of 7 offices statewide.
No jobs will be lost under the new agreement, First American's vice president for corporate communications, Jo Bandy, said.
Founded in 1982 by President and Chief Executive Lynne Kaneshiro, Island Title represents residential and commercial clients in a broad range of property-related transactions.
Kaneshiro said she was an employee of First American for 13 years before launching Island Title about 22 years ago.
The deal will bring benefits to Island Title staff and its clients, Kaneshiro said.
"It boils down to better service for our clients and better benefits for our people," she said.
"I have so much more to offer our staff. They (First American) bring a lot of benefits, like a 401(k). We can also purchase stocks at discount prices. Then there are other intangible things. We need to spend a lot of money investing in automation. They have everything that we need to give our clients better services."
First American Title Insurance is the largest subsidiary of Santa Ana, Calif.-based The First American Corporation. One of the largest title insurers in the nation, First American Title offers title services through nearly 1,200 offices in the United States and abroad.
