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.
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →