New York-based AmTrust Financial Services has signed an agreement to acquire Car Care Plan Limited (CCPH), a wholly owned subsidiary of Ally Insurance, for approximately $70m.
The agreement was signed by an undisclosed wholly owned subsidiary of AmTrust, and the acquisition is expected to be funded using the company's existing working capital.
Thornbury-based CCPH currently possesses total assets in excess of $360m and is anticipated to generate revenue of over $140m, including fee income of more than $30m and pre-tax profits of over $14m for AmTrust.
AmTrust Financial Services president and CEO Barry Zyskind said, "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."
CCPH provides insurance and administrative services to major auto manufacturers for auto extended warranty, guaranteed asset protection (GAP), wholesale floor plan insurance, as well as other auto warranty and insurance products in the UK, Europe, China, North America and Brazil.
The company also underwrites many of its own products and third-party administrators products through its subsidiary, Motors Insurance Company Limited.