Ally Financial Agrees to Sell Mexican Insurance Business to ACE Group
Ally Financial (OTC: ALFI) today announced that it has reached an agreement to sell its Mexican insurance business, ABA Seguros, to the ACE Group (NYSE: ACE), one of the world's largest multiline property and casualty insurers. ABA Seguros is the fourth largest insurer in the Mexican auto insurance market, and the transaction has a purchase price of $865 million in cash.
"Earlier this year, we began a process to pursue strategic alternatives for our international operations, and we have been encouraged by the breadth and depth of interest in these operations," said Ally Chief Executive Officer Michael A. Carpenter. "ABA Seguros is a strong business, and this transaction represents a significant step in what will be a series of actions to find the best solutions for the international businesses and to maximize value for our shareholders."
Carpenter continued, "Taking these actions with respect to the international operations will enable Ally to further invest in and grow its leading U.S.-based automotive services and direct banking franchises and be best positioned to return additional capital to the U.S. taxpayer."
ABA Seguros is a subsidiary of Ally and was founded in 1956.