S&P Assigns Integon National Ins.; Affils. `Api' Rtg

29 September 2000

S&P Assigns Integon National Ins.; Affils. `Api' Rtg

    NEW YORK--Standard & Poor's--Sept. 29, 2000-- Standard & Poor's today assigned its single-'Api' financial strength rating to Integon National Insurance Co. and its affiliates (see list).
    The rating is based on reinsurance arrangements with Motors Insurance Corp. (financial strength rating single-'Api'), which assumes 100% of the companies' business. Motors Insurance Corp. is a wholly owned subsidiary of GMAC Insurance Holdings Inc., itself wholly owned by General Motors Acceptance Corp. (counterparty credit rating single-'A'), which in turn is a wholly owned subsidiary of General Motors Corp. .
    The quota share reinsurance agreement, effective Jan. 1, 1998, replaced an intercompany reinsurance pooling agreement between the company and its Integon affiliates.
    The Integon companies specialize in nonstandard automobile insurance in North Carolina, Florida, Virginia, New York, Georgia and 26 other states. Distribution is primarily through independent general agents. Integon National Insurance Co. commenced operations in 1919.


Affiliates of Integon National Insurance Co. (NAIC:29742):

Integon General Insurance Corp.  (NAIC:22780)
Integon Preferred Insurance Co.  (NAIC:31488)
Integon Specialty Insurance Co. (NAIC:37745)
Integon Indemnity Corp.  (NAIC:22772)
Integon Casualty Insurance Co.  (NAIC:27930)
New South Insurance Co.  (NAIC:12130)

'pi' ratings, denoted with a 'pi' subscript, are insurer financial strength ratings based on an analysis of an insurer's published financial information and additional information in the public domain. They do not reflect in-depth meetings with an insurer's management and are therefore based on less comprehensive information than ratings without a 'pi' subscript. 'pi' ratings are reviewed annually based on a new year's financial statements, but may be reviewed on an interim basis if a major event that may affect the insurer's financial security occurs. Ratings with a 'pi' subscript are not subject to potential CreditWatch listings.
Ratings with a 'pi' subscript generally are not modified with 'plus' or 'minus' designations. However, such designations may be assigned when the insurer's financial strength rating is constrained by sovereign risk or the credit quality of a parent company or affiliated group, Standard & Poor's said.---CreditWire.