ACE buys ABA Seguras from Ally Financial
ACE is buying ABA Seguras from Ally Financial.
ACE has been in sales negotiations with Ally Financial regarding the purchase of Mexico's ABA Seguras and has entered a definitive agreement.
This will see ACE pay around $865 million in cash for ABA Seguras, which is a property and casualty (P&C) insurer based in Monterrey.
ACE provides similar insurance products and operates in 53 different nations, making it one of the largest multiline providers of P&C cover in the world.
Although the deal is subject to the approval of regulators, it is forecast to be completed during the first six months of 2013.
Chairman and chief executive officer of ACE Evan Greenberg called ABA Seguras one the most "highly regarded" franchises in the sector, with a "terrific brand and an impressive and profitable track record".
"We expect the acquisition of ABA Seguros to be accretive to earnings in the first year," he revealed, stating that by the third year, it should have met or exceeded the firm's "long-term return on equity target".
Posted by Edel Quinn
Source: ACE press release, October 18th