A.M. Best Co. has placed the financial strength rating (FSR) of ‘A-‘ (Excellent) and issuer credit ratings (ICR) of “a-” of GMAC Insurance Group (GMACI) and its sixteen members, led by Motors Insurance Corporation, under review with negative implications.
Best said it took the rating actions due to its “heightened concerns regarding the financial pressures being experienced by GMACI’s ultimate parent, GMAC LLC (GMAC), and the potential financial implications on GMACI.
“The existing challenges at GMAC are driven by the continuing risks associated with its mortgage lending subsidiary, Residential Capital, LLC (ResCap) (Minnesota), which continues to weaken GMAC’s corporate credit ratings, cost of capital and liquidity.”
Best said it would continue its discussions with GMACI’s management, and will “re-evaluate the company’s under review status.”
The FSR of A- (Excellent) and the ICRs of “a-” have been placed under review with negative implications for GMAC Insurance Group and its following 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
Source: A.M. Best – www.ambest.com/ratings
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