Best’s News & Research Service - April 14, 2022 02:52 PM (EDT)
AM Best Affirms Credit Ratings of Members of Nodak Insurance Group and NI Holdings, Inc.
- April 14, 2022 02:52 PM (EDT)
Oldwick //BestWire// - AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of members of Nodak Insurance Group (Nodak). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) of NI Holdings, Inc. (Fargo, ND) [NASDAQ: NODK], a publicly traded holding company. The outlook of these Credit Ratings (ratings) is stable. (See below for a full listing of companies and ratings.)
The ratings reflect Nodak’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.
Nodak’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), favorable net and gross underwriting leverage, consistent reserving trends, and access to capital markets as a part of a publicly traded organization (NI Holdings, Inc.). Each individual member of Nodak’s pool plays a role in the group’s business plan and contributes favorably to its risk-adjusted capitalization. The group’s strong operating performance is driven by five-year average profitability metrics, which outperform the composite, and is further supported by steady investment income. In 2021, Nodak continued to grow surplus and produce positive net income through the year, despite weather-related losses that drove its first underwriting loss in 10 years.
The ratings also reflect Nodak’s neutral business profile driven by its market position as a leader in personal lines, farm and crop insurance in North Dakota. The group continues to expand geographically and now operates in 17 states. Nodak’s ERM remains appropriate and in line with the group’s risk profile, with defined risk appetite and tolerances and extensive stress testing to mitigate weather-related losses.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with stable outlooks for the following members of the Nodak Insurance Group:
- American West Insurance Company
- Battle Creek Mutual Insurance Company
- Direct Auto Insurance Company
- Nodak Insurance Company
- Primero Insurance Company
- Westminster American Insurance Company
This press release relates to Credit Ratings that have been published on AM 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 AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.