Maiden buys GMAC Re
by David Masters
Story link: Maiden buys GMAC Re
GMAC, the financial arm of General Motors, has sold its reinsurance business, GMAC Re, to Bermuda-based Maiden Holdings Limited.
Terms of the sale were not disclosed.
The acquired business will be renamed Maiden Re, and will be based in Mount Laurel, New Jersey.
Around 120 GMAC employees will join the Maiden team.
For the past quarter century GMAC Re has provided reinsurance cover to small and regional reinsurance companies.
Products offered by GMAC Re include broker and direct treaty, accident and health, excess and surplus lines, facultative and specialty reinsurance.
The acquisition makes Maiden a specialty reinsurance company with over $1 billion in annual written premiums.
GMAC sold GMAC Re to boost its capital and add liquidity following a third quarter loss of $2.52 billion.
This is the fifth quarterly loss in a row for the company, despite sales last year of $4 billion.
Its lack of capital means the company is struggling to fund home and auto loans.