Best’s News & Research Service - July 20, 2023 02:53 PM (EDT)
AM Best Upgrades Credit Ratings for Dakota Group’s Members
- July 20, 2023 02:53 PM (EDT)
Oldwick //BestWire// - AM Best has upgraded the Financial Strength Rating to A (Excellent) from A- (Excellent) and the Long-Term Issuer Credit Ratings to “a” (Excellent) from “a-” (Excellent) of Dakota Truck Underwriters and First Dakota Indemnity Company. The outlook of these Credit Ratings (ratings) has been revised to stable from positive. These companies are collectively known as Dakota Group (Dakota) and are domiciled in Sioux Falls, SD.
The ratings reflect Dakota’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, limited business profile and appropriate enterprise risk management. The rating upgrades are driven by the group’s operational performance, which is reflective of strong underwriting results and consistent investment income that contributes to continuous surplus growth. In addition, the group outperforms its composite peers in combined ratios and operating ratios. Other factors driving the rating changes include material reduction in net leverage ratio through an increase in surplus and expenses that are lower than the peer composite.
Dakota Group writes workers’ compensation insurance with most of its geographic focus in the upper Midwest region of the United States.
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.