From Reuters:

Title insurer LandAmerica Financial Group Inc (LFG.N: Quote, Profile, Research, Stock Buzz), which is selling itself to Fidelity National Financial Inc (FNF.N: Quote, Profile, Research, Stock Buzz), posted a huge third-quarter loss, hurt by a non-cash charge.

The third-biggest U.S. title insurer posted a net loss of $599.6 million, or $39.45 a share, for the quarter.

Glen Allen, Virginia-based LandAmerica said it took charges of $462.4 million related to write-down of goodwill, other intangible assets, certain investments and deferred tax assets.

The company said it reduced staffing levels by about 940 average full-time equivalents and closed about 60 offices in the third quarter.

Fidelity National, one of the largest U.S. title insurers, on Friday said it agreed to buy LandAmerica for about $126 million in stock as the title insurers seek to consolidate amid an industry slump triggered by a worsening housing crisis.

Title insurers, who protect home buyers and lenders against claims and legal fees should a dispute over ownership arise, have taken a hit as the housing crisis resulted in lower demand and prices for homes, cutting into their revenue.

A loss of almost $40 a share!

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