OLDWICK, N.J.--(BUSINESS WIRE)--A.M. Best has removed from under review with positive implications and upgraded the Financial Strength Rating to B++ (Good) from B (Fair) and the Long-Term Issuer Credit Rating to “bbb” from “bb+” of Northwest Dentists Insurance Company (NORDIC) (Bothell, WA) and Dentists Benefits Insurance Company (DBIC) (Portland, OR). The outlook assigned to these Credit Ratings (ratings) is stable.
These rating actions follow the February 2017 acquisition of NORDIC and DBIC by The Dentists Insurance Company (TDIC), which is an indirect subsidiary of the California Dental Association. The ratings are based upon NORDIC’s and DBIC’s relatively strong balance sheets and expertise in providing medical professional liability, commercial multi-peril and other liability coverages to dentists, primarily in Washington and Oregon. The acquisition is expected to provide these companies with greater stability and focus in line with TDIC’s business plan and strategic direction. The acquisition also provides TDIC greater geographic diversification, and the integration of NORDIC and DBIC into TDIC’s operations eventually will produce greater synergy among the companies. Partially offsetting the positive rating factors are the companies’ limited business profiles and historically volatile earnings performance.
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