AM Best Places Credit Ratings of Westminster American Insurance Company Under Review With Negative Implications
2024年5月11日 - 6:12AM
ビジネスワイヤ(英語)
AM Best has placed under review with negative
implications the Financial Strength Rating of A (Excellent) and the
Long-Term Issuer Credit Rating of “a+” (Excellent) of Westminster
American Insurance Company (WAIC) (headquartered in Owings Mills,
MD).
These Credit Ratings (ratings) have been placed under review
with negative implications following the recent announcement made
by NI Holdings, Inc. [NASDAQ: NODK], its ultimate parent, that a
definitive agreement has been signed to sell WAIC to a private
party. The transaction has been approved by the board of directors
and is currently pending regulatory approvals and subject to
customary closing conditions. Once the agreement closes, WAIC will
no longer maintain an affiliation with Nodak Insurance Group
(Nodak) and will be removed from the pool, with its participation
percentage re-allocated among the remaining pool members.
NI Holdings, Inc. purchased WAIC through a 100% stock purchase
agreement in 2020, and subsequently, the company was added as a
member to the Nodak pool to diversify its book of business from a
product and geographic standpoint. However, NI Holdings, Inc. has
agreed to sell WAIC as management felt the company’s core lines of
business (i.e., commercial habitational risks) and regional areas
of operations no longer aligned with Nodak’s overall risk appetite.
In recent years, and particularly in 2023, WAIC’s results in its
core lines of business were a drag on the Nodak group’s overall
results. WAIC’s ratings will remain under review with negative
implications pending successful execution of the transaction and
until AM Best can properly assess the company’s rating
fundamentals, financially and operationally, on a standalone basis
without integration in the Nodak pool. WAIC’s ratings likely will
be negatively affected when removed from under review.
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.
Copyright © 2024 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240510023993/en/
Lauren Magro Financial Analyst +1 908 882 2082
lauren.magro@ambest.com
Christopher Sharkey Associate Director, Public
Relations +1 908 882 2310
christopher.sharkey@ambest.com
Joseph Burtone Director +1 908 882 1678
joseph.burtone@ambest.com
Al Slavin Senior Public Relations Specialist +1
908 882 2318 al.slavin@ambest.com