OLDWICK, N.J.--(BUSINESS WIRE)--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.
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