GMAC Insurance, the insurance business of GMAC Financial Services, has agreed to acquire Provident Insurance, the United Kingdom-based auto insurance division of Provident Financial PLC.
The acquisition will complement GMAC’s existing U.K. insurance operations and support European growth initiatives.
The purchase price is approximately £170 million ($340 million USD) in cash and is expected to close in the second quarter, pending regulatory approvals.
Ron Judd, senior vice president of GMAC Insurance’s international operations, said the addition of Provident Insurance would provide entry into the U.K. automotive insurance market with the potential to also expand throughout Europe.
Provident Insurance specializes in non-comprehensive coverage, second cars and female drivers. Provident Insurance distributes its products through a network of brokers and through its own growing internet based intermediary, www.yesinsurance.co.uk.
GMAC Insurance is the insurance arm of GMAC Financial Services with a focus on automotive insurance products such as physical damage and liability coverage, extended warranty, GAP insurance and wholesale floorplan insurance (automobile dealer inventory). The international operations of GMAC Insurance operate outside the U.S. and Canada, and include Car Care Plan (a U.K.-based extended warranty insurer), ABA Seguros (a Mexico-based motor insurer), GMAC Life Forsäkring (a Swedish-based credit life company) and an international reinsurance business based in Bermuda.
Source: GMAC Financial Services
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