IGI Group, a wholly owned subsidiary of global insurance holding company AmTrust Financial Services, has purchased Car Care Plan (Holdings) (CCPH) from Ally Insurance Holdings, in a deal valued at nearly $70m.
Commenting on the acquisition, AmTrust Financial Services president and CEO Barry Zyskind said the acquisition will boost its customer relationships, strengthen management and global presence and enable to continue to increase profitability.
CCPH is expected to generate revenues for AmTrust Financial in excess of $140m, including fee income of more than $30m and pre-tax profits of over $14m, over the next year.
Based on the acquisition agreement, Ally also agreed to a three-year non-compete and non-solicit, subject to certain limited exceptions and will provide additional indemnity for liabilities of CCPH for pension plans, tax liabilities and other matters.
CCPH caters insurance and administrative services to auto manufacturers for extended warranty, guaranteed asset protection (GAP), wholesale floor plan insurance and other auto warranty and insurance products.
Headquartered in the UK, the company also has operations in other counties including Europe, China, North America and Brazil.
AmTrust Financial Services provides specialty property and casualty insurance products, including workers' compensation, commercial automobile and general liability;, through its insurance carriers.
