Insurance rating service A.B. Best Co. revised the outlook forGMAC Insurance Group to negative on worries that losses suffered bythe auto manufacturer's parent could affect the insurer.

The Oldwick, N.J.-based rater reaffirmed the "A-minus"(excellent) financial strength rating for the insurer, but revisedthe outlook from stable to negative out of concern with risks inGMAC's Residential Capital LLC.

Residential Capital is a mortgage lender, and the volatility inthe housing market sector has weakened GMAC's capitalization,liquidity and profitability, Best said.

The negative outlook, Best said, "indicates further materialdeterioration in GMAC's credit position may likely result in adowngrade" of GMAC Insurance's financial strength rating.

Offsetting the concerns, Best continued, is the insurer's"excellent stand-alone risk adjusted capitalization" and its solidoperating results.

According to Highline Data, an affiliate of NationalUnderwriter, GMAC Insurance is ranked as the 19th largest autoinsurance carrier in the United States.