A.M. Best Revises Issuer Credit Rating Outlook to Positive for Nodak Mutual Group Members and Outlook for American …

OLDWICK, N.J.–(BUSINESS WIRE)–A.M. Best has revised a issuer credit rating (ICR) opinion to
certain from fast and endorsed a financial strength rating (FSR) of
A (Excellent) and a ICR of “a” for Nodak Mutual Group (Nodak)
members, Nodak Mutual Insurance Company (Nodak Mutual) (Fargo,
ND) and a reinsured affiliate, Battle Creek Mutual Insurance Company
(Battle Creek, NE). The opinion on Nodak’s FSR stays stable.

Concurrently, A.M. Best has revised a opinion to certain from stable
and endorsed a FSR of B++ (Good) and a ICR of “bbb+ of American
West Insurance Company
(American West) (Fargo, ND), a unconditionally owned
and alone rated subsidiary. Nodak’s certain opinion on a ICR is
contemplative of a group’s plain capitalization, certain operating
formula and marketplace form as one a heading writers of
property/casualty word in North Dakota. Surplus expansion in 4 of
a past 5 years is attributable to altogether certain underwriting
income complemented by a plain tide of net investment income. The
group’s long-term auspicious handling formula arise from management’s
regressive handling strategies and internal marketplace expertise.

Somewhat offsetting these certain rating factors is Nodak’s
thoroughness of business in North Dakota, that exposes it to the
intensity for revisit and serious weather-related events, as good as
legal and regulatory actions. In an bid to lessen concentration
of skill lines, in Dec 2014 Nodak purchased Primero Insurance
, a non-rated unconditionally owned auxiliary that writes
non-standard vehicle coverage essentially in Nevada. Nodak also
mitigates business thoroughness by ceded reinsurance treaties.

Future certain rating movement is probable with a delay of
clever capitalization and auspicious handling performance. Negative
rating movement could start as a outcome of an astonishing and material
decrease in risk-adjusted capitalization or a postulated decrease in
handling performance.

The certain outlooks for American West are contemplative of a company’s
continued plain capitalization and auspicious handling performance.
American West also advantages from a pithy and substantial support of
a Nodak organisation as it is entirely integrated in a group’s craving risk
government and is stable by a group’s endless reinsurance program.

Partially offsetting these certain rating factors are a company’s
geographic thoroughness of risk and singular product offerings. Business
is constructed in South Dakota, Minnesota, and North Dakota, that subjects
formula to revisit and serious weather-related events. In addition, crop
formula are in approach association with commodity pricing which
government has no control over.

Positive rating movement is fortuitous on a company’s continued
auspicious handling formula while progressing a plain risk-adjusted
capitalization. Negative rating movement might follow an astonishing and
element decrease in risk-adjusted capitalization, a sustained
decrease in handling performance, or changes in a relationship
with a primogenitor company.

This press recover relates to rating(s) that have been published on
A.M. Best’s website.
For all rating information relating to the
recover and impending disclosures, including sum of a office
obliged for arising any of a particular ratings referenced in
this release, greatfully see A.M. Best’s
Rating Activity
web page.

A.M. Best is a world’s oldest and many lawful insurance
rating and information source. For some-more information, revisit

Copyright © 2016 by A.M. Best Company, Inc. and/or its

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