AM Best Comments on Credit Ratings of Dakota Truck Underwriters and First Dakota Indemnity Company Following Announced Acquisition by Maine Employers’ Mutual Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Dakota Truck Underwriters (DTU) and First Dakota Indemnity Company (FDI) (both domiciled in Sioux Falls, SD), collectively referred to as the Dakota Group, remain unchanged following the recent announcement of a transaction to be acquired by Maine Employers’ Mutual Insurance Company (MEMIC) (Portland, ME). The transaction includes the purchase of Risk Administration Services, Inc. (RAS) and RAS’ four affiliated insurance services companies. RAS serves as attorney-in-fact to DTU, a reciprocal insurer that will remain owned by its subscribers and maintain a minority interest in FDI.

With the acquisition, the MEMIC Group would become the third-largest multistate specialty workers’ compensation insurance carrier in the United States, pairing its strong presence on the East Coast with the Dakota Group’s footprint in the Midwest. The Dakota Group offers pricing flexibility, strong underwriting performance and greater geographic diversification of premium that should support an improved combined ratio on a consolidated basis. The acquisition also includes non-risk-bearing entities that will diversify overall earnings by generating fee-based revenue. The transaction is anticipated to close in January 2026, subject to regulatory approval.

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