GMAC RE Establishes a New Business Unit

Special Risk Solutions

DETROIT - GMAC Insurance Group announces the formation of a new operating unit, Special Risk Solutions (SRS). The new unit will specialize in excess and surplus lines property business, focusing specifically on large property schedules and/or complex risks that are difficult to place in the traditional markets. SRS will become a business unit of GMAC RE Corporation, a member of the GMAC Insurance Group.

With the cooperation and agreement of Fairfax Financial Holdings Limited, a financial services holding company, and Clarendon Insurance Group, a U.S. based property and casualty insurance company, the Fairfax Special Risks Operations Property team will become full-time employees of GMAC RE.

Steve Brett, formerly the chairman and CEO of Special Risk Operations at Fairfax, will become the leader of the new unit. SRS will be headquartered in Napa, Calif., with offices in Hazlet, N.J., and Richardson, Texas, and will commence operations on Jan. 1, 2006.

Fairfax will support the SRS team as a quota share reinsurer and will also assist in transitioning the operations to GMAC RE. Clarendon will also play a critical role in facilitating a smooth transition of qualifying business from Clarendon to Integon Specialty Corporation or MIC Property & Casualty Insurance Corp, both part of the GMAC Insurance Group.

GMAC RE, based in Mt. Laurel, NJ, is a subsidiary of GMAC Insurance Holdings Inc., a part of GMAC Financial Services. GMAC Financial Services provides automotive financing, commercial finance, insurance and mortgage products, and real estate services, and has a presence in 41 nations. GMAC has been a wholly owned subsidiary of General Motors Corporation since 1919.