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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 29, 2019 11:35 AM (EDT)
AM Best has placed under review with positive implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Westminster American Insurance Company (Westminster) (Owings Mills, MD).
These Credit Rating (rating) actions follow the announcement that NI Holdings, Inc. [NASDAQ: NODK] has entered into a definitive agreement to acquire Westminster. The acquisition transfers 100% stock ownership of Westminster to NI Holdings, Inc. The transaction is subject to customary closing conditions including board and regulatory approvals and is expected to close in the first quarter of 2020.
The under review with positive implications status reflects Westminster’s inclusion in a larger, more diverse publicly traded organization with access to capital markets. Further, as Westminster holds numerous state licenses, it will benefit from the Nodak Insurance Company’s financial flexibility to improve its geographic spread of risk. At the completion of the acquisition, the most likely outcome would be an upgrade of the ratings.
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 Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry.