OCTOBER 22, 2009 01:30 PM (EDT)
A.M. Best Revises the Under Review Implications Status for Several Members of GMAC Insurance Group
(908) 439-2200, ext. 5034
Jeffrey Mango, CPA
(908) 439-2200, ext. 5204
(908) 439-2200, ext. 5644
(908) 439-2200, ext. 5378
FOR IMMEDIATE RELEASE
OLDWICK, N.J. - OCTOBER 22, 2009 01:30 PM (EDT)
A.M. Best Co. has revised the under review implications status to positive from developing for the financial strength ratings (FSR) of B++ (Good) and issuer credit ratings (ICR) of "bbb" of several members of GMAC Insurance Group (GMACI) (Southfield, MI).
These rating actions are based on the announcement that a definitive agreement has been reached for the purchase of certain members (see company list below) of GMACI by the newly-formed American Capital Acquisition Corporation, which is partially-owned by AmTrust Financial Services, Inc. (New York, NY) [NASDAQ: AFSI].
The under review implications status for the listed members was revised based upon their stand-alone assessments, and following the close of the transaction, they will no longer be subsidiaries of GMAC Inc. (formerly GMAC LLC).
The ratings of the entities were downgraded and placed under review with developing implications in June 2009, as a result of their ownership by GMAC Inc. and A.M. Best's view that GMAC Inc.'s operating results, as well as A.M. Best's review of public information, were not consistent with a parent of "a-" rated insurance companies. (For further details, please see press release of June 11, 2009.)
The under review with positive implications status indicates the potential likelihood of these companies receiving a more favorable rating following the close of this transaction. The deal is expected to close in first quarter 2010, following regulatory approvals.
In addition, the under review with developing implications status for the remaining three members, Motors Insurance Corporation (lead member of GMACI), CIM Insurance Corporation and MIC Property and Casualty Insurance Corporation is unchanged at this time.
The under review implications status has been revised to positive from developing for the FSRs of B++ (Good) and ICRs of "bbb" of the following members of the GMAC Insurance Group:
-GMAC Insurance Company Online, Inc.
-Integon Casualty Insurance Company
-Integon General Insurance Corporation
-Integon Indemnity Corporation
-Integon National Insurance Company
-Integon Preferred Insurance Company
-MIC General Insurance Corporation
-National General Assurance Company
-National General Insurance Company
-New South Insurance Company
For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit Best's Ratings & Analysis.
The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at Best's Credit Rating Methodology.
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.