AM Best Affirms Credit Ratings of Members of Nodak Insurance Group and NI Holdings, Inc.

OLDWICK, New Jersey–(COMMERCIAL WIRE)–I am better has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of the members of Nodak Insurance Group (Nodak). At the same time, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) for NI Holdings, Inc. (Fargo, ND) [NASDAQ: NODK], a publicly traded holding company. The outlook on these Credit Ratings (ratings) is stable. (See below for a full list of companies and qualifications.)

The ratings reflect the strength of Nodak’s balance sheet, which AM Best assesses as the strongest, as well as its strong operating performance, neutral business profile and adequate business 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 gross and net technical leverage, consistent reserve trends and access to the capital markets as part of a publicly traded company. organization (NI Holdings, Inc.). Each individual member of the Nodak 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 performance, and is supported by consistent investment income. In 2021, Nodak continued to increase its surplus and generate positive net income for the year, despite weather-related losses that generated its first technical loss in 10 years.

The ratings also reflect Nodak’s neutral business profile fueled by its market position as a leader in personal lines, agricultural 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 tolerances and appetite, and extensive stress testing to mitigate weather-related losses.

The FSR of A (Excellent) and the Long-Term ICR of “a+” (Excellent) have been affirmed, with a stable outlook 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

  • First Insurance Company

  • American Insurance Company of Westminster

This news release relates to credit ratings that have been posted on AM Best’s website. For full rating information related 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 on the use and limitations of credit rating opinions, see Best Credit Score Guide. For information on the proper use of Best’s Credit Ratings, Best’s Performance Reviews, Best’s Preliminary Credit Reviews, and AM Best’s press releases, see Guide to the proper use of Best ratings and evaluations.

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 operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information visit www.ambest.com.

Copyright © 2022 by AM Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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