AM Best has downgraded the Long-Term Issuer Credit Ratings (Long-Term ICR) for members of Nodak Insurance Group to 'a' from 'a+' and for NI Holdings, Inc. to 'bbb' from 'bbb+'. Concurrently, the Financial Strength Rating (FSR) of A (Excellent) for Nodak Insurance Group members was affirmed with a stable outlook.
The downgrade reflects the volatility in Nodak’s operating results over the most recent five-year period. This volatility has been driven by weather-related losses, inflationary pressures on rising loss costs, and adverse trends in the non-standard auto lines, along with prior-year reserve development.
AM Best also noted challenges with the commercial habitational lines of business through the previously owned Westminster American Insurance Company, which contributed to the group's volatile results. The sale of Westminster American Insurance Company on June 30, 2024, was mentioned in the context of these past challenges.
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