GMAC Insurance Operations

MIC Group / Personal Lines Group
GMAC Insurance is divided into two major divisions: The MIC Group and the Personal Lines Group. MIC encompasses a number of businesses, including automotive extended-service and maintenance contracts sold through GM dealers in the U.S. and Canada, and similar products for the non-GM market. GMAC Insurance's International Operations fall under MIC and provide extended-service contracts, auto insurance and other coverages through numerous distribution channels. GMAC RE, also under MIC, offers dealer inventory insurance and property/casualty reinsurance programs. The Personal Lines Group offers vehicle and home insurance through a number of distribution channels, including independent agents, affinity groups and the Internet.

2004 GMAC Insurance Highlights:

• GMAC Insurance reported its best year yet in 2004, generating income of $329 million – up from $179 million in 2003.
  
• It was a record year for the MIC Group, driven by great results across all of its business units: GM Protection Plan, Specialty Markets & Products (SM&P), GMAC RE and International Operations.
  
• GM Protection Plan sales penetration on new GM vehicles increased to 17 percent in 2004, up from an already solid 15.5 percent in 2003. MIC has nearly 4 million active extended-service contracts in the U.S.
  
• MIC's TIPS (Total Insurance Products and Services) program, a single source of dealer-focused insurance products and services, increased revenue by 50 percent year over year in 2004.
  
• In 2004, the GMAC Insurance International Programs team generated a 30 percent increase in fee income for GMAC International Operations compared to 2003.
  
• MIC's well-established Car Care Plan subsidiary in the United Kingdom and its newer Mexican operation, ABA Seguros, achieved strong growth in 2004.
  
• SM&P's Universal Warranty Corporation (UWC) subsidiary, a third-party administrator of vehicle service contracts, grew 65 percent in 2004 with positive bottom-line results.
  
• In Canada, SM&P's SmartCoverage Insurance Agency exceeded profitability expectations.
  
• The Commercial Lines Group at GMAC RE employed an innovative loss control technique when it paid dealerships covered by its inventory insurance programs to transport more than 10,000 vehicles to safe locations during 2004's four major U.S. hurricanes.
  
• Performance was strong at the Personal Lines Group, where sales of insurance to GM customers increased eightfold between 2002 and 2004.
  
• The Personal Lines Group's program dedicated to GM-related business, Family First, exceeded the 2004 business goal of 18,500 policies to end the year with 22,000 new policies.
  
• Roughly 3,400 claims were processed at the Personal Lines Group related to hurricanes in 2004, with specialized catastrophe response teams handling most claims within two weeks.