MIC: Extended service contracts, reinsurance and commercial lines worldwide GMAC’s Insurance Group comprises two major divisions: the Motors Insurance Group (MIC) and the Personal Lines Group. MIC is a leading provider of insurance products to automobile dealers and their customers worldwide; a reinsurer of U.S. property and casualty companies; and, a provider of property and casualty insurance products in international markets.
For U.S. and Canadian dealers, MIC’s extended service contract business provides mechanical breakdown and maintenance coverages for new and used GM vehicles. The GM Protection Plan captures more than 60 percent of all extended service contracts sold on new GM vehicles. Through its subsidiary, Universal Warranty Corporation, MIC provides mechanical protection products and services to both GM and non-GM customers and channels.
MIC’s Total Insurance Products and Services program (TIPS) is designed to meet the numerous needs of dealers requiring products to cover their own risk exposures as well as the needs of their employees and customers. TIPS is a trusted provider leveraging other insurers and products underwritten by GMAC Insurance.
MIC’s commercial lines business offers wholesale vehicle insurance protecting both GMAC-financed and non-GMAC-financed vehicles on dealer lots. MIC leverages its scale, low-cost operations and extensive claims experience for a competitive advantage. MIC’s superior claims service also continues to be a differentiator as exemplified by its ability to assist dealers in reopening following the devastating 2005 hurricane season.
U.S. reinsurance is provided to regional property and casualty insurers through GMAC RE, MIC’s managing general underwriter. GMAC RE is a niche player whose reinsurance business comprises broker treaty, direct treaty, facultative and specialty reinsurance as well as accident and health reinsurance. Additionally, GMAC RE offers specialty property coverages on a direct basis through its new unit, Strategic Risk Specialists.
The MIC Group’s International business unit recorded record revenues of more than $600 million during 2005. International business includes: reinsurance, primarily for automotive risks; ABA Seguros, the fourth-largest auto insurance provider in Mexico; Car Care Plan, a leading U.K. provider of extended service contracts; and, the development of fee-based international insurance programs on behalf of GMAC.
We believe our expertise in insurance products for dealers and their customers will continue to generate substantial international growth opportunities.
