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A.M. Best Co. has affirmed the financial strength rating of B++ (Good) and issuer credit ratings of “bbb” of Motors Insurance Corporation and its reinsured subsidiaries, MIC Property and Casualty Insurance Corporation and CIM Insurance Corporation, collectively referred to as Ally Insurance Group (Ally Insurance). The outlook for all ratings is stable. All companies are domiciled in Southfield, MI. The rating affirmations for Ally Insurance reflect its strong risk-adjusted capitalization, historically solid operating results and well-established market presence as a specialized underwriter of motor vehicle extended service contracts. Ally Insurance also offers commercial insurance products to dealers that primarily insure dealers’ wholesale vehicle inventory. Although earnings in 2012 were adversely affected by severe weather, including losses from Superstorm Sandy, A.M. Best expects results will recover in 2013. Despite Ally Insurance’s long-term success over the years, these positive rating factors are attenuated by the constrained credit profile of its ultimate parent, Ally Financial Inc., due to issues at its troubled mortgage subsidiary, Residential Capital LLC (ResCap). Given its large legacy mortgage business, Ally Financial Inc. remains exposed to potential losses and litigation related to subprime and alternative mortgages issued prior to 2009. In 2012, Ally Financial Inc. implemented measures designed to resolve issues relating to ResCap. ResCap and certain of its subsidiaries filed for prearranged voluntary Chapter 11 bankruptcy in May 2012, and the case continues to move forward. Ally Financial Inc. is a leading automotive financial services company led by a direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Potential upward movement on the ratings over the near term is unlikely due to financial constraints at Ally Financial Inc. and the uncertainties surrounding the possible resolution of ResCap. In the medium term, possible upward rating movement could result from the separation of ResCap and the gradual reduction in U.S. Government ownership at Ally Financial Inc., resulting in a reduction in dividend requirements at Ally Insurance. Possible downward or negative movement in the ratings could result from a reduction in profitability due to a decline in U.S. auto sales, a corresponding decline in vehicle service contract revenues and/or increased dividend requirements at Ally Financial Inc.