. 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.
