AM Best Affirms Credit Ratings of Members of Nodak Insurance Group and NI Holdings, Inc.

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a” (Excellent) of the members of Nodak Insurance Group (Nodak). Concurrently, AM Best has affirmed the Long-Term ICR of “bbb” (Good) of NI Holdings, Inc. (NI Holdings) (Fargo, ND) [NASDAQ: NODK], a publicly traded holding company. The outlook of these Credit Ratings (ratings) is stable. (See below for a full listing of companies and ratings.)

The ratings reflect Nodak’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management (ERM).

Nodak’s balance sheet strength is supported by its strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), along with its conservative investment portfolio, solid liquidity measures, and financial flexibility provided through its access to capital markets as a part of a publicly traded organization (NI Holdings). NI Holdings maintains no debt on its balance sheet and is viewed as having a neutral impact on the risk-bearing entities.

While results have exhibited volatility in the past few years, operating performance remains adequate as reflected by Nodak’s loss and loss adjustment expense ratio, which outperforms the private passenger standard auto and homeowners composite average. Results in 2025 were impacted by weather-related loss activity, specifically a derecho incurred in June, which now amounts to Nodak’s largest catastrophe event in company history, and prior year loss reserve development in the non-standard automobile lines of business. Still, cumulatively the group’s core lines of business (i.e. private passenger standard automobile, homeowners and farmowners) have remained largely profitable over the past several years.

In response to the volatility, management has made several underwriting adjustments and initiated strategic non-renewals and policy cancellations in its non-core lines of business, namely the non-standard automobile lines, to foster prospective improvement. Despite its tightened risk appetite, Nodak continues to maintain a strong market position in its primary state of North Dakota with some diversification provided in neighboring states, which is reflected in its neutral business profile assessment. AM Best expects that with management’s focus on its historically profitable core lines of business, operating return metrics will benefit. Lastly, ERM is considered appropriate, reflective of Nodak’s developed and embedded risk management framework, which includes defined risk appetites and tolerances and correlating mitigation strategies that have been acted upon in recent years.

The FSR of A (Excellent) and the Long-Term ICRs of “a” (Excellent) have been affirmed, with stable outlooks for the following members of the Nodak Insurance Group:

• American West Insurance Company
• Battle Creek Insurance Company
• Direct Auto Insurance Company
• Nodak Insurance Company
• Primero Insurance Company

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 Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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