GMAC Financial Services was experiencing higher levels of insurance claims, in part because of rising unemployment and consumer fraud, in a business line it recently sold.
This month, GMAC said it had completed the sale of its U.S. property and casualty auto insurance business to American Capital Acquisition Corp. The GMAC unit sold insurance for automobiles, commercial vehicles, motorcycles and recreational vehicles through independent insurance agents and on the Internet. Terms were not disclosed.
GMAC said it booked a total pretax loss of $250 million in 2009 for the U.S. operations, plus a property and casualty insurance business in the United Kingdom that the company is selling separately.
Meanwhile, GMAC kept the part of its insurance operations that sells extended service contracts and policies to cover dealer inventories.