A.M. Best Removes Ratings of GMAC Insurance Group and Its Members From Under Review; Assigns Negative Outlook

A.M. Best Co. has removed from under review with negative implications and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-”of GMAC Insurance Group (GMACI) and its sixteen members, which are led by Motors Insurance Corporation (Southfield, MI). The outlook assigned to the ratings is negative. (See below for a detailed listing of the companies and ratings.) 
 
The ratings, which were placed under review on February 27, 2008, reflected A.M. Best’s heightened concerns regarding the financial pressures experienced by GMACI’s ultimate parent, GMAC LLC (GMAC). On April 8, 2008, A.M. Best retained the under review status based on GMAC’s announced restructuring plan. (Please see press releases of February 27, 2008 and April 8, 2008 at www.ambest.com.) The plan contemplated a dividend by GMAC of 100% of the voting interest of GMACI Holdings LLC (GMACIH), the holding company for the insurance operations, to the current holders of GMAC’s common membership equity, which includes FIM Holdings LLC (controlled by Cerberus FIM Investors, LLC) and subsidiaries of General Motors Corporation. However, GMAC would continue to hold 100% of the economic interests in GMACIH.  
 
The rating affirmations are based on the completed restructuring of the voting interest of GMACIH and the implementation of new corporate governance structures. As a result, A.M. Best believes that the previous financial pressures exerted on GMACI from GMAC’s continuing corporate credit issues, have been alleviated.  
 
In addition, the rating affirmations are based on GMACI’s maintenance of excellent risk-adjusted capitalization; consistently solid operating results; a well-established market presence as one of the top 35 property/casualty insurers in the United States; and its leading position as a provider of vehicle service contracts.  
 
The FSR of A- (Excellent) and ICRs of “a-” have been affirmed for GMAC Insurance Group and its following property/casualty members: 
 
— Motors Insurance Corporation  
 
— CIM Insurance Corporation 
 
— GMAC Direct Insurance Company  
 
— GMAC Insurance Company Online, Inc.  
 
— Integon Casualty Insurance Company  
 
— Integon General Insurance Corporation  
 
— Integon Indemnity Corporation 
 
— Integon National Insurance Company  
 
— Integon Preferred Insurance Company  
 
— Integon Specialty Insurance Company  
 
— MEEMIC Insurance Company  
 
— MIC General Insurance Corporation 
 
— MIC Property and Casualty Insurance Corporation 
 
— National General Assurance Company 
 
— National General Insurance Company  
 
— New South Insurance Company 
 
The ICR of “bbb-” has been withdrawn from GMAC Insurance Holdings, Inc. BN-NJ-07-25-2008 1437 ET #