GMAC divests fortune & casualty business

US fiscal services giant, GMAC Inc, is proposing to sell its property and missing in action insurance business to American Capital Acquisition.

The transaction is pending regulatory concurrence and other customary closing conditions.

The group says its dealer-cognate insurance business (which includes extended service contracts and insurance for auto agent inventories) is not affected by the move.

The sale follows a tactical review of GMAC’s insurance offerings and includes its passenger car, commercial fleet and recreational vehicle business.

GMAC provides financing for customers of departed parent company, General Motors, and Chrysler Group.

The company has so far received $13.5 billion in US government bailout funds and reported a $3.9 billion twinkling-quarter loss, relating to rising loan defaults.

According to reports, Remodelled York-based insurer, AmTrust Financial Services, will be investing $42.5 million in American Pre-Eminent Acquisition in connection with the GMAC acquisition.