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GMAC Insurance Makes Key Mexico Auto Insurance Acquisition

Southfield, MI - GMAC Insurance Holdings, Inc. today announced the completion of the acquisition of ABA Seguros, S.A. - one of Mexico's largest property/casualty and auto insurers - from Abaco Grupo Financiero, S.A. de C.V.

"The acquisition positions GMAC Insurance in the Mexican marketplace and represents a significant step in the company's international expansion strategy," said William B. Noll, president, GMAC Insurance Holdings, Inc., in making the announcement.

Primarily an auto insurer, ABA Seguros underwrote more than $200 million (U.S.) in premiums in 2001. The company is headquartered in Monterrey, with more than 700 employees in 35 offices throughout Mexico. "ABA Seguros has grown steadily and profitably since 1995, and has established a reputation in Mexico for innovative and high-quality service. The company has an Internet capability that is among the most advanced in the Mexican market," said Ronald Judd, GMAC Insurance vice president of international operations.

GMAC Insurance is a part of GMAC Financial Services, whose General Motors Acceptance Corporation has been a wholly owned subsidiary of General Motors Corporation since 1919. GMAC Insurance Holdings, Inc. reported $2.7 billion in revenue in 2001. At more than $1 billion in capital, the company is rated A Superior by A.M. Best, one of the leading insurance industry rating agencies. Through its 3,500 employees, the company provides insurance services throughout the world.

The acquisition further strengthens GM's commitment to Mexico, and reflects GMAC Insurance's efforts to expand its operation globally by building on its core competency - automotive related insurance services," Judd added.

Arturo Vargas, currently CEO at Aetna Argentina, will become chief executive officer of ABA Seguros, effective Feb. 1. He succeeds Reynelle Cornish who has decided to pursue other interests. For Vargas, it's a return to Monterrey where previously he was president of Cerry, S.A. de C.V.