A.M. Best Downgrades Rating of GMAC Insurance Group and Assigns

Issuer Credit Ratings; Revises Outlook to Negative 
OLDWICK, N.J.--(BUSINESS WIRE)--May 10, 2005
A.M. Best Co. has downgraded the financial strength
rating to A- (Excellent) from A (Excellent) of GMAC Insurance Group
(GMAC) (Michigan) and revised the outlook to negative from stable.
Concurrently, A.M. Best has assigned issuer credit ratings (ICR) of
"a-" to GMAC's property/casualty subsidiaries. The outlook for the
ICRs is negative. 
The rating action reflects the weakened financial condition of the
ultimate parent company, General Motors Corporation (GM), driven by
long-standing competitive pressures that are increasingly impinging on
its financial performance. The rating downgrade reflects the potential
burden on the insurance operating subsidiaries to support GM. Further,
a portion of GMAC's business, extended warranty and non-standard
automobile insurance remains exposed to downturns in economic
conditions. 
A.M. Best will continue to monitor GM's results and financial
condition. Additional deterioration at the parent level could result
in further rating action at the insurance group. 
Despite these negative factors, the A- (Excellent) rating of GMAC
reflects its excellent stand-alone capitalization, improved operating
leverage and consistently solid operating results. GMAC has a
well-established market presence as one of the top 35
property/casualty insurers in the United States and a leading position
as a provider of extended service contracts. These positive rating
attributes are derived from GMAC management's focused operating
strategy, extensive product knowledge, diversified product offerings
and multiple distribution channels. The group has consistently
generated capital through operating earnings, which is reflective of
disciplined underwriting, an efficient expense structure and a steady
stream of investment income. 
Through the affiliation with GM, the group benefits from the
extensive penetration of GM dealerships, as well as GMAC's brand name
recognition, widespread marketing network and direct sales support. In
addition, the ratings reflect the group's diversification outside
traditional GM-related businesses, particularly its well-established
presence in the non-standard automobile market through the GMAC
personal lines business. 
The financial strength rating has been downgraded to A-(Excellent) from A (Excellent), and issuer credit ratings of "a-" have
been assigned to the following property/casualty affiliates of the
GMAC Insurance Group: 
--  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 
--  MIC General Insurance Corporation 
--  MIC Property and Casualty Insurance Corporation 
--  National General Assurance Company 
--  National General Insurance Company 
--  New South Insurance Company 
For Best's Ratings, an overview of the rating process and rating
methodologies, please visit http://www.ambest.com/ratings. 
A.M. Best Co., established in 1899, is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit A.M. Best's Web site at http://www.ambest.com. 
CONTACT:
A.M. Best Co.
Public Relations 
Jim Peavy, 908-439-2200, ext. 5644
james.peavy@ambest.com
Rachelle Striegel, 908-439-2200, ext. 5378
rachelle.striegel@ambest.com 
or
Analysts
Michael Venezia, 908-439-2200, ext. 5034
michael.venezia@ambest.com
Stefan Holzberger, 908-439-2200, ext. 5699
stefan.holzberger@ambest.com
 
 
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