GMAC Insurance Personal Lines gets new owner, leadership

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GMAC Insurance Personal Lines has a new owner, who has installed a new leader of the vehicle insurance provider.

GMAC Insurance’s U.S. consumer property-casualty insurance business, which includes automobile, commercial vehicle, motorcycle and RV insurance offerings, are now part of American Capital Acquisition Corp. (ACAC), a newly formed corporation whose principal was a founder of AmTrust Financial Services.

GMAC Insurance, which operates in 47 states and Washington, D.C., has a network of 10,000 independent agents and brokers.

As part of the deal, GMAC Insurance Personal Lines, which began in 1925, retained the right to use the name “GMAC Insurance” in association with its remaining insurance operations “for some time,” according to the statement announcing the deal. GMAC Insurance will continue to be used in all operations while a brand marketing review is conducted, officials said.

Financial terms of the deal were not disclosed.

GMAC Insurance’s headquarters will remain in Winston-Salem, N.C., while its leadership will shift from interim CEO Mary Hennessey to Larry Pentis, who joins GMAC Insurance from The Commerce Group, where he ran all operations outside of Massachusetts. Pentis spent the majority of his career at the AAA Club, headquartered in San Francisco. At AAA, he was responsible for all aspects of its auto, home and life insurance operations, with net written premium of $2.2 billion.

“Larry is a seasoned and successful insurance professional with over twenty-seven years of experience,” said Michael Karfunkel, chairman of ACAC, in a statement. “Larry has a collaborative leadership style emphasizing open and honest communication.”

During a five-year period, Pentis expanded the AAA insurance business from three states to 16 states, with net written premium growth of $600 million.

The new ownership does not affect any policies, services, sales or claims.

Officials said the GMAC Insurance Dealer Products & Services group and other international personal lines insurance operations were not included in the transaction. Those operations remain a part of GMAC Financial Services.

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