Multinational insurance holding company AmTrust Financial Services Inc. said it will invest $42.5 million in a joint venture to purchase GMAC’s U.S. auto insurance business.
AmTrust is partnering with American Capital Acquisition Corp. an acquisition arm of investment broker American Capital Partners LLC. The acquisition is subject to approval by regulators and is expected to close in the first quarter of 2010.
Further terms were not disclosed.
GMAC, hammered by the financial crisis, is selling various lines to regain financial stability.
AmTrust Financial Services owns and operates 11 insurance companies eight in the United States and the remaining three overseas.
More information:
Read a comparison of GMAC and Progressive in our September Cover story, Crash and Spurn