GMAC Completes Sale of Consumer Property and Casualty Insurance Business
GMAC Financial Services has completed the sale of its U.S. consumer property and casualty insurance business, GMAC Insurance Personal Lines, to American Capital Acquisition Corporation (ACAC). The sale includes GMAC's U.S automobile, commercial vehicle, motorcycle and recreational vehicle insurance offerings.
DETROIT – GMAC Financial Services has completed the sale of its U.S. consumer property and casualty insurance business, GMAC Insurance Personal Lines, to American Capital Acquisition Corporation (ACAC). The sale includes GMAC's U.S automobile, commercial vehicle, motorcycle and recreational vehicle insurance offerings.
GMAC said the transaction is part of its effort to refocus resources on strategic operations and restore financial performance. The GMAC Insurance Dealer Products and Services, a dealer-related insurance business offering extended service contracts and insurance for auto dealer inventories, was not included in the transaction. Officials said the dealer division remains a strategic component of GMAC’s automotive services platform.
American Capital said it will maintain GMAC Insurance's headquarters in Winston-Salem, N.C., and, effective immediately, the company will transition leadership from interim CEO Mary Hennessey to Larry Pentis, who previously ran all operations outside of Massachusetts for the Commerce Group.
Executives say financial support from new ownership will allow GMAC Insurance Personal Lines to offer a wide range of new options, benefits, features and services across a variety of automotive, commercial vehicle, RV, motorcycle and other insurance products.
As part of the deal, GMAC Insurance Personal Lines has retained the right to use the name "GMAC Insurance.” Additionally, GMAC Insurance will continue to be used in all operations while a strategic review of all brand marketing is conducted. However, ACAC executives emphasized the transition will not impact existing procedures such as customer service, sales and claims operations.
Executives also said that all existing policies and coverage will remain in full force, and that the company will maintain all formal agency and affinity group partnerships.
GMAC Insurance Personal Lines has been in operation since 1925. The company has more than 10,000 independent agents and brokers, and operates in 47 states and the District of Columbia.
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