Ally Financial closes sale of unit to ACE Group

DETROIT (AP) -- Ally Financial Inc. said Thursday that it completed the $865 million sale of its Mexican insurance business to property and casualty insurer ACE Ltd.

Ally said it got $690 million in cash at closing and a $175 million dividend in the fourth quarter of last year. The deal was announced in October.

Switzerland-based ACE bought ABA Seguros, which is one of Mexico's largest property and casualty insurers and also sells auto, homeowners and small business coverage. ACE has said that it expected the deal to increase its profit in the first year.

ACE Chairman and CEO Evan Greenberg said the addition of ABA Seguros to its previous Mexican operations put the company in good position to take advantage of growth opportunities that it expects in the country.

Ally CEO Michael A. Carpenter said the sale marked another step in his company's goal of divesting international operations to focus on U.S. auto finance and direct banking.

Ally said it has received $7.6 billion from selling off international businesses and has deals for its operations in Brazil, France and China, which are expected to close later this year.

ACE shares rose 35 cents to close at $88.65.