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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 02, 2017 10:46 AM (EDT)
A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to B++ (Good) from B (Fair) and the Long-Term Issuer Credit Rating to “bbb” from “bb+” of Northwest Dentists Insurance Company (NORDIC) (Bothell, WA) and Dentists Benefits Insurance Company (DBIC) (Portland, OR). The outlook assigned to these Credit Ratings (ratings) is stable.
These rating actions follow the February 2017 acquisition of NORDIC and DBIC by The Dentists Insurance Company (TDIC), which is an indirect subsidiary of the California Dental Association. The ratings are based upon NORDIC’s and DBIC’s relatively strong balance sheets and expertise in providing medical professional liability, commercial multi-peril and other liability coverages to dentists, primarily in Washington and Oregon. The acquisition is expected to provide these companies with greater stability and focus in line with TDIC’s business plan and strategic direction. The acquisition also provides TDIC greater geographic diversification, and the integration of NORDIC and DBIC into TDIC’s operations eventually will produce greater synergy among the companies. Partially offsetting the positive rating factors are the companies’ limited business profiles and historically volatile earnings performance.
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 Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and A.M. Best Rating Action Press Releases.
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