A.M. Best Comments on GMAC Insurance's Restructuring Plan

Business Wire, April 8, 2008

OLDWICK, N.J. -- A.M. Best Co. has commented that 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), remain under review with negative implications.

The ratings were initially placed under review on February 27, 2008 reflective of A.M. Best's heightened concerns regarding the financial pressures experienced by GMACI's ultimate parent, GMAC LLC (GMAC). (Please see press release of February 27, 2008.)

The continuation of the under review status is based on GMAC's recently announced restructuring plan. The plan contemplates 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. The dividend will be pro rata in accordance with the current common equity ownership percentages held by these entities. GMAC will continue to hold 100% of the economic interests in GMACIH.

As a result of the restructuring of the voting interest of GMACIH and the resulting new governance structure, A.M. Best believes that the previous financial pressures exerted on GMACI from GMAC's continuing corporate credit issues will be alleviated. Consequently, any further deterioration in GMAC's corporate credit ratings, cost of capital and liquidity will not adversely impact the financial strength of GMACI, as the voting control of the insurance entities will no longer reside with GMAC.

The ratings will remain under review pending the close of the transaction, which is subject to corporate governance and regulatory approval. Upon the close of the transaction, GMACI's ratings will likely be affirmed with a negative outlook. Furthermore, maintenance of the ratings will be contingent upon the group maintaining a solid risk-adjusted capital position relative to its current ratings, as well as continuing to sustain favorable operating performance.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.