DETROIT, Oct. 18, 2012 /PRNewswire/ -- Ally Financial Inc. (Ally) today announced that it has reached an agreement to sell its Mexican insurance business, ABA Seguros, to the ACE Group, 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. The operation is based in Monterrey, Mexico and is a leading provider of auto and property and casualty insurance in Mexico.The ACE Group is one of the world's largest multiline property and casualty insurers. With operations in 53 countries, ACE provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index.