GMAC Opens Representative Insurance Office in China

MIC subsidiary granted office as step toward initiating insurance operations

DETROIT – GMAC’s Motors Insurance Corporation (MIC), a wholly owned subsidiary of GMAC Insurance Holdings, was given approval by the Chinese Insurance Regulatory Commission (CIRC) to establish its representative office in Shanghai, China. GMAC is the wholly owned financial services subsidiary of General Motors Corporation .

The CIRC also approved the appointment of Henry Dai as chief representative of MIC in Shanghai. The approval documents will be presented to GMAC Insurance by CIRC Beijing on Wednesday, May 17.

The establishment of a representative insurance office in China represents another commitment to China on behalf of GMAC. GMAC has an existing presence in China through its joint venture with Shanghai Automotive Industry Corporation (SAIC) to offer both retail and wholesale auto financing. SAIC has had a long-term relationship with General Motors through its significant joint venture undertaking in China in vehicle manufacturing.

"We are gratified to receive this opportunity from the Chinese government as we seek to develop our presence and capabilities in China,” said William Noll, president of GMAC Insurance. “ China 's financial services sector is developing very quickly. By working closely with our partners, GMAC Insurance aims to bring its expertise to China to support the sale of vehicles with high-quality insurance products."

The purpose of a representative office is to allow a company to officially conduct market research, undertake feasibility studies and build important relationships. Following a two year waiting period, MIC will be eligible to apply for an insurance company license.

Motors Insurance Corporation has in-depth knowledge of the automotive and insurance industries. In order to be considered for a representative office in China, MIC had to meet minimum requirements of 30 years of ongoing operations and maintaining at least $5 billion in assets.

About MIC

Motors Insurance Corporation and its affiliates underwrite a variety of products under the GMAC Insurance brand name. One of the world's largest providers of automotive vehicle service and maintenance contracts, MIC offers vehicle owners and lessees mechanical repair protection and extended roadside assistance beyond the manufacturer's warranty. MIC began business in 1925 and is headquartered in Southfield, Mich., U.S.A.

About GMAC

General Motors Acceptance Corporation and its subsidiaries, operating under the umbrella GMAC Financial Services, provide automotive financing, commercial finance, insurance and mortgage products, and real estate services, and have a presence in more than 40 nations. A wholly owned subsidiary of General Motors since 1919, GMAC has extended more than $1.4 trillion in credit to finance more than 162 million vehicles.