S&P Affirms Motors Insurance Corp. & Subsidiaries 'Api' Rating

  NEW YORK, Sept. 29 /PRNewswire/ -- Standard & Poor's today affirmed its 
single-'Api' financial strength rating on Motors Insurance Corp. (MIC) and its 
reinsured property and casualty subsidiaries (see list).  
The rating is based on the company's extremely strong capitalization and 
good operating performance, partially offset by volatility in its premium 
The company mainly writes private passenger and commercial automobile 
physical damage and auto extended warranty coverages, marketed through 
General Motors Acceptance Corp. (GMAC) and non-GMAC financed dealerships.  
The company has maintained intercompany reinsurance arrangements in which 
it assumes a substantial portion of the insurance programs produced by it 
property and casualty subsidiaries.  
The company redomesticated from New York State to Michigan, effective 
April 30, 1999.  It is licensed in all states, the District of Columbia, and 
Canada. It began business in 1939.  

    Major Rating Factors: 
      -- Capitalization was extremely strong at year-end 1999, as indicated by a 
       Standard & Poor's capital adequacy ratio of 286%.  The company's 
       surplus, which stood at $1.6 billion at year-end 1999, has grown at a 
       compound annual rate of 9.5% since 1992. 
      -- Operating performance has been good, with the time-weighted 
       return on revenue from 1996 to 1999 at 9.2%. 
      -- The company's 1999 unaffiliated common stock leverage is high 
       (77% of policyholder surplus).  At year-end 1999, the company was 
       exposed to interest-rate risk, with the ratio of collateralized 
       mortgage obligations and loan-backed bonds at 0.9 times surplus. 
      -- The company has a history of volatility in its premium revenues, 
       with year-to-year changes in net premiums written ranging from minus 
       13.5% to  plus 100.7% since 1994.  The increase in net premiums written 
       to $2.1 billion in 1998 from $1.05 billion in 1997 was primarily due to 
       the acquisition of the Integon group of companies, of which MIC assumed 
       100% of the net business. 

  The company (NAIC:22012) is a wholly owned subsidiary of GMAC Insurance 
Holdings Inc., which is wholly owned by General Motors Acceptance Corp. 
(counterparty credit rating single-'A'), a wholly owned subsidiary of 
General Motors Corp. (NYSE: GM).  Although the company is a downstream 
subsidiary of GM, the rating does not include additional credit for implied 
group support.  
The single-'Api' financial strength rating is affirmed for all MIC's 
reinsured subsidiaries:  

      CIM Insurance Corp.                      (NAIC:22004) 
    MIC Property & Casualty Insurance Corp.  (NAIC:38601) 
    MIC General Insurance Corp.              (NAIC:38660) 
    National General Insurance Co.           (NAIC:23728) 
    National General Assurance Co.           (NAIC:42447) 

  'pi' ratings, denoted with a 'pi' subscript, are insurer financial 
strength ratings based on an analysis of an insurer's published financial 
information and additional information in the public domain.  They do not 
reflect in-depth meetings with an insurer's management and are therefore based 
on less comprehensive information than ratings without a 'pi' subscript.  'pi' 
ratings are reviewed annually based on a new year's financial statements, but 
may be reviewed on an interim basis if a major event that may affect the 
insurer's financial security occurs.  Ratings with a 'pi' subscript are not 
subject to potential CreditWatch listings.  
Ratings with a 'pi' subscript generally are not modified with 'plus' or 
'minus' designations.  However, such designations may be assigned when the 
insurer's financial strength rating is constrained by sovereign risk or the 
credit quality of a parent company or affiliated group, Standard & Poor's 

SOURCE  Standard & Poor's Ratings Services  
-0-                             09/29/2000  
/CONTACT:  Polina Chernyak, New York, 212-438-7179, for Standard & Poor's 
Ratings Services/  
/Web site:  http://www.standardandpoors.com/ratings/  
CO:  Standard & Poor's Ratings Services; Motors Insurance Corp.; General  
 Motors Corp. 
ST:  New York 
SU:  RTG  
-0- Sep/29/2000 20:44 GMT 
EOS   (PRN)    Sep/29/2000    16:44       85 
-0- (PRN) Sep/29/2000 20:59 GMT
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