ACE Group is buying the Mexican insurance business of Ally Financial, formerly known as GMAC, to help parent firm General Motors repay part of its federal government bailout.
ACE Group’s U.S. operations, ACE USA, are based in Philadelphia.
ACE will pay $865 million for the Ally unit, as the lending arm of GM divests foreign operations.
Ally’s Mexican operations, ABA Seguros, is the sixth-largest insurer in that country’s auto insurance market, according to ACE.
Detroit-based Ally received about $17.2 billion as part of GM’s government bailout, and is now 74% owned by the U.S. Treasury. According to reports, Ally has been reviewing bids for other parts of its business.
Ally has repaid $5.7 billion of the $17.2 billion. Selling the operations could allow the company to repay another $5 billion.
ACE announced recently that it was acquiring Fianzas Monterrey, the second-largest surety writer in Mexico.
ACE buys Mexico insurer, helping GM repay federal bailout funds via IFAwebnews.com .
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