Fitch Rates LandAmerica's L-T Issuer & Sr Unsecured 'BBB'

Business Wire, Nov 29, 2004

CHICAGO -- Today, Fitch Ratings assigned a 'BBB' long-term issuer rating to LandAmerica Financial Group, Inc. (LFG). In addition, Fitch assigned a 'BBB' rating to LFG's existing issues of $115 million and $125 million senior unsecured notes due in 2033 and 2034, respectively. The Rating Outlook is Stable.

LFG is a holding company that is dependent primarily on its title operations (LandAmerica) to fund its cash flow needs, including debt service. Therefore, LFG's ratings are based on the insurer financial strength of LandAmerica, which Fitch rates 'A'.

LandAmerica's ratings reflect the company's strong brand name that supports the organization's competitive positioning, solid statutory earnings that in recent periods have resulted in strong capital generation, adequate reserves, and conservative operating leverage. The ratings also consider the company's high quality investment portfolio that has no below investment-grade exposure, below-average affiliated investments, and strong liquidity.

Offsetting these positives, Fitch believes that LandAmerica's balance sheet fundamentals and financial flexibility have modestly weakened in recent years due to the organization's acquisition strategy. Fitch believes this is a critical juncture for the organization that magnifies the company's need to successfully execute in both weakening market conditions and in optimizing the potential of its recent acquisitions.

LFG's current debt to capital at 29.5% is within Fitch's expectations for the rating category and fixed-charge coverage at 10 times (x) is expected to remain strong at greater than 8x-9x.

LFG, a publicly traded holding company, with GAAP assets and shareholder's equity of $3.1 billion and $1.1 billion, respectively, at Sept. 30, 2004, provides title insurance and real estate products in the U.S., Canada, and the Caribbean.

The following ratings have a Stable Rating Outlook:

LandAmerica Financial Group, Inc. (LFG)

-- Long-term issuer assigned 'BBB';

-- Senior unsecured debt assigned 'BBB';

-- $115 million 3.125% due Nov. 15, 2033;

-- $125 million 3.25% due Nov. 15, 2034.

Commonwealth Land Title Insurance Company

-- No action on the insurer financial strength 'A'.

Commonwealth Land Title Insurance Company of New Jersey

-- No action on the insurer financial strength 'A'.

Land Title Insurance Company of Pasadena

-- No action on the insurer financial strength 'A'.

Lawyers Title Insurance Corporation

-- No action on the insurer financial strength 'A'.

Title Insurance Company of America

-- No action on the insurer financial strength 'A'.

Transnation Title Insurance Company

-- No action on the insurer financial strength 'A'.

Transnation Title Insurance Co. of New York.

-- No action on the insurer financial strength 'A'.