First American Up on Rivals’ Combination

Shares of Santa Ana-based title insurer First American Corp. closed up 18% on Friday on word that two of its rivals are combining.

Fidelity National financial Inc., a Florida-based title insurer and key rival of First American, said Friday it is paying $126 million for Virginia’s LandAmerica financial Group Inc.

Fidelity is the No. 2 title insurer after First American. LandAmerica is No. 3. The companies write policies protecting the buyers of homes and other real estate from claims contesting their ownership.

A combined Fidelity and LandAmerica would become the largest title insurer with 46% of the market, according to Keefe, Bruyette