Ally Financial Completes Sale of Mexican Insurance Business
DETROIT, May 2, 2013 /PRNewswire/ -- Ally Financial Inc. (Ally) today announced that it has completed the sale of its Mexican insurance business, ABA Seguros, to the ACE Group. Ally received approximately $865 million in proceeds, which was comprised of a $690 million cash payment at closing and a $175 million dividend that was paid in the fourth quarter of 2012.
"The completion of the ABA Seguros transaction marks another point of progress in our strategic plans," said Ally Chief Executive Officer Michael A. Carpenter. "We embarked on a process in mid-2012 to divest of all the international operations in order to further strengthen our capital position and best position Ally to return additional capital to the U.S. taxpayer."
Carpenter continued, "Ally has now received more than 80 percent of the expected proceeds from the international sales and continues to focus on further strengthening its leading U.S. auto finance and direct banking franchises."
Ally reached an agreement in October 2012 to sell ABA Seguros as part of its plans to divest of all the international operations. Ally has received approximately $7.6 billion in proceeds from the international transactions thus far. The remaining transactions for the operations in Brazil, France and China are expected to close in stages during 2013.
About Ally Financial Inc.
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $166.2 billion in assets as of March 31, 2013, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.
SOURCE Ally Financial