A.M. Best Comments on Credit Ratings of Nodak Insurance Group Members Following Acquisition Announcement
OLDWICK, N.J.--(BUSINESS WIRE)--Jun 5, 2018--A.M. Best has commented that the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of the members of the Nodak Insurance Group: Nodak Insurance Company and Battle Creek Mutual Insurance Company (Battle Creek, NE), as well as the FSR of A- (Excellent) and the Long-Term ICR of “a-” of American West Insurance Company, a separately rated entity, remain unchanged following the announcement that the group’s parent has entered into a definitive agreement to acquire Direct Auto Insurance Company (Direct Auto) (Chicago, IL). Concurrently, the Long-Term ICR of “bbb+” of NI Holdings, Inc. [NASDAQ: NODK] also remains unchanged. All companies are domiciled in Fargo, ND, unless otherwise specified. A.M. Best expects the transaction to close by year-end 2018, subject to customary regulatory approvals.
NI Holdings, Inc. recently signed a definitive agreement to purchase 100% of the stock of Direct Auto from private shareholders. A.M. Best expects the pending transaction to provide risk diversification, growth through geographic expansion, and broader product offerings to agents and policyholders. Once the merger is completed, Direct Auto is expected to remain an autonomous operation, retaining its brand name and marketing affiliations. Given the comparative size of Direct Auto relative to Nodak’s surplus and premium, the Credit Ratings (ratings) remain unchanged. Over the long term, A.M. Best will continue to monitor the progress of the proposed merger and evaluate any developments relative to Nodak Insurance Group’s and NI Holdings, Inc.’s ratings.
This press release relates to Credit Ratings that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s web page. For additional information regarding the use and limitations of Credit Rating opinions, please view . For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view .
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KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY NORTH DAKOTA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE INSURANCE
SOURCE: A.M. Best
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PUB: 06/05/2018 11:17 AM/DISC: 06/05/2018 11:17 AM