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

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 the members of Nodak Insurance Group (Nodak). The outlook of the FSR is stable while the outlook of the Long-Term ICR is negative. 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 this Credit Rating (rating) is negative. (See below for a full listing of companies and ratings.)

The ratings reflect Nodak’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.

Nodak’s operating results in 2023, while still volatile, showed improvement from the prior year given more favorable loss ratios in its core lines of business (i.e., personal auto, homeowners and farmowners). Overall results were dampened by elevated losses stemming from Westminster American Insurance Company’s (WAIC) commercial habitational line of business and continued inflationary pressures on property lines, as well as adverse reserve development driven by prior-year auto liability claims. Still, the group reported net income and growth in policyholders’ surplus. Results have improved further through year-to-date 2024. The negative outlook on the Long-Term ICR reflects AM Best’s expectation that if the recent improvement does not continue, it could lead to a downward revision in the group’s operating performance building block assessment.

To foster continued improvement in the group’s results, Nodak has implemented sizable rate increases, refined its risk appetite and tightened its underwriting standards on major lines of business. Furthermore, NI Holdings, Inc., has recently announced that a definitive agreement has been signed to sell WAIC to a private party. The agreement has been approved by NI Holdings, Inc.’s board of directors and is pending regulatory approval and subject to customary closing conditions. Following successful execution of the agreement, WAIC will no longer be affiliated with Nodak and will be removed from the pool. This is expected to eliminate Nodak’s exposure in East Coast states and greatly reduce its exposure in the commercial habitational line of business, which in turn should favorably impact pooled results.

The FSR of A (Excellent) and the Long-Term ICRs of “a+” (Excellent) have been affirmed, with a stable outlook for the FSR and a negative outlook for the Long-Term ICRs, for the following members of the Nodak Insurance Group:

  • American West Insurance Company
  • Battle Creek Insurance Company
  • Direct Auto Insurance Company
  • Nodak Insurance Company
  • Primero 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. For more information, visit

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.


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