FIRST CHICAGO NBD OF FERS CAR INSURANCE
CHICAGO - Giant auto insurer Hartford Financial Services Group has teamed with First Chicago NBD Corp. to offer auto insurance to the bank's customers in Michigan, Illinois and Indiana. First Chicago NBD said its goal is to generate $200 million in pretax profit from insurance products in 2000, compared with $54 million last year. That total includes arrangements with other insurance companies besides Hartford, and other insurance products besides auto, such as homeowners' insurance, said First Chicago NBD spokesman Tom Kelly.
GE CAPITAL BUYS INSURER
VALLEY FORGE, Pa. - General Electric Capital Services Corp. is entering the auto insurance business by purchasing Colonial Penn Property and Casualty Group of Valley Forge. The Associated Press reported that GE Capital paid $950 million for the insurer. Six years ago, New York-based Leucadia National Corp. paid $150 million for Colonial. Colonial reported earnings of $73 million on revenue of $596 million last year. It becomes a unit of GE Capital's Consumer Savings and Insurance Group.
GMAC ACQUIRES INTEGON
DETROIT - General Motors Acceptance Corp. bought a 'nonstandard' automobile insurance company, which specializes in customers who do not qualify for standard rates because of bad driving records or other factors. A subsidiary of GMAC paid about $550 million to merge with Integon of Winston-Salem, N.C. The deal is subject to approval by stockholders and regulators. Integon common stock is traded on the New York Stock Exchange. Integon markets products through about 13,000 independent agencies in 30 states. In 1996, Integon reported $800 million in net premiums written.
FORD CREDIT ADDS SERVICES
DETROIT - Ford Motor Credit Co. customers in the United States are now able to access their accounts on the Internet. Customers can check items like the amount and date of their last payment, along with payoff information. Ford Credit, a subsidiary of Ford Motor Co., also soon will offer consumer credit preapproval on the Internet. Customers will apply for credit online.