American parent confirms sale possibility

Provident Insurance parent company GMAC has confirmed it is reviewing its ownership of the firm, as revealed in this week’s issue of Insurance Times (see Provident loses Smith to Ink).

GMAC sold its insurance property and casualty business last month to pay off debts to the US Government. The financial services giant has received $12.5bn in state aid.

A GMAC spokesman told Insurance Times: “GMAC Insurance, including Provident Insurance, continues to participate in an examination of its business operations to better position GMAC and GMACI for continued success in key markets we serve. No decisions about the specific strategic direction of Provident Insurance have been finalized.”