A.M. Best Revises Outlook to Negative for GMAC Insurance Group

Business Wire, Jan 9, 2008

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of "a-"of GMAC Insurance Group (GMACI) (Michigan) and its members. The outlook has been revised to negative from stable. (See below for a detailed listing of the companies and ratings.)

The revised outlook reflects A.M. Best's concerns regarding the financial pressures being experienced by GMACI's ultimate parent, GMAC LLC (GMAC), and the potential financial and operational impacts on GMACI. The challenges at GMAC are driven by the continuing risks associated with its mortgage lending subsidiary, Residential Capital, LLC (ResCap) (Minnesota) in the volatile housing and mortgage sector, which has weakened GMAC's capitalization, liquidity and profitability. The negative outlook indicates that further material deterioration in GMAC's credit position may likely result in a downgrade of GMACI's FSR and ICRs.

Partially offsetting some of A.M. Best's concerns is GMACI's excellent stand-alone risk-adjusted capitalization, consistently solid operating results, 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 group has consistently generated capital through operating earnings, which is reflective of its disciplined underwriting, efficient expense structure and a steady stream of investment income.

The FSR of A- (Excellent) and the ICRs of "a-" have been affirmed for the following property/casualty members 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

* 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

For Best's Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.> 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.