OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of NI Holdings, Inc. [NASDAQ: NODK] remain unchanged following its recent announcement that it has agreed to purchase Westminster American Insurance Company (Westminster). The ratings of Nodak Insurance Company (Fargo, ND) (Nodak) and its wholly owned subsidiary, Battle Creek Mutual Insurance Company (Battle Creek, NE), and American West Insurance Company (Fargo, ND), a wholly owned, separately rated subsidiary of Nodak, also remain unchanged. These companies are ultimately owned by NI Holdings, Inc. and referred to collectively as Nodak Insurance Group.
The acquisition will involve a 100% stock ownership transfer 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.
Westminster writes solely commercial lines business focusing on business owner’s coverage for apartments, condominiums, cooperatives, rental dwellings and retail risks. The company also writes commercial
package policies and commercial umbrella coverage. Nearly 95% of Westminster’s direct premium written is generated from Maryland, New Jersey, Pennsylvania, District of Columbia and Virginia; however, the company is licensed in 18 states.
The acquisition of Westminster will provide the Nodak Insurance Group with a more diverse mix of products and increase its footprint in the commercial lines segment. In addition, it improves the group’s geographic concentration of risk.
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. Visit www.ambest.com for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
