NODAK INSURANCE GROUP (NODAK) Credit and Financial Strength Ratings Affirmed as Excellent by AM BEST
AM Best affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of the Nodak Insurance Group (Nodak). The outlook of the FSR is stable. The ratings reflect Nodak’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. Nodak’s operating results in 2023 showed improvement from the prior year given the more favorable loss ratios in its core lines of business (i.e., personal auto, homeowners and farm owners). To foster continued improvement in the group’s results, Nodak has implemented sizable rate increases, refined its risk appetite and tightened its underwriting standards on major lines of business. Furthermore, NI Holdings, Inc. recently announced that a definitive agreement has been signed to sell Westminster American Insurance Company (WAIC) to a private party. The agreement has been approved by NI Holdings, Inc.’s board of directors and is pending regulatory approval and subject to customary closing conditions. Following successful execution of the agreement, WAIC will no longer be affiliated with Nodak and will be removed from the pool. This is expected to eliminate Nodak’s exposure in East Coast states and greatly reduce its exposure in the commercial habitational line of business, which in turn should favorably impact pooled results. The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed for the following members of the Nodak Insurance Group: · American West Insurance Company · Battle Creek Insurance Company · Direct Auto Insurance Company · Nodak Insurance Company · Primero Insurance Company Back to NEWS |
