AmTrust to Acquire Ally’s Car Care Plan
NEW YORK — AmTrust Financial Services Inc.'s wholly owned subsidiary has entered into an agreement to acquire Car Care Plan (Holdings) Limited (CCPH) from Ally Insurance Holdings Inc. (Ally) for approximately $70 million.
The company, which has total assets in excess of $360 million, expects to fund the purchase using existing working capital. Over the next year, CCPH is projected to generate revenue for the AmTrust in excess of $140 million, including fee income of more than $30 million and pre-tax profits of over $14 million.
Ally’s wholly owned subsidiary provides insurance and administrative services to major auto manufacturers for auto extended warranty, guaranteed asset protection (GAP), wholesale floor plan insurance and other auto warranty and insurance products. It underwrites many of its products as well as the products of third-party administrators through its subsidiary, Motors Insurance Company Limited, an FSA-authorized UK insurer.
"We are excited about the addition of CCPH's successful and geographically diverse extended warranty and insurance platform," said AmTrust’s President and CEO Barry Zyskind. "The combination of CCPH with our existing operations significantly expands our international warranty footprint and positions AmTrust to provide a unique international operation to service the growing needs of large auto manufacturers."
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