{"id":750982,"date":"2023-04-25T15:49:03","date_gmt":"2023-04-25T19:49:03","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-revises-issuer-credit-ratings-outlook-to-negative-for-members-of-nodak-insurance-group-and-ni-holdings-inc\/"},"modified":"2023-04-25T15:49:03","modified_gmt":"2023-04-25T19:49:03","slug":"am-best-revises-issuer-credit-ratings-outlook-to-negative-for-members-of-nodak-insurance-group-and-ni-holdings-inc","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-revises-issuer-credit-ratings-outlook-to-negative-for-members-of-nodak-insurance-group-and-ni-holdings-inc\/","title":{"rendered":"AM Best Revises Issuer Credit Ratings Outlook to Negative for Members of Nodak Insurance Group and NI Holdings, Inc."},"content":{"rendered":"

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AM Best Revises Issuer Credit Ratings Outlook to Negative for Members <\/b>of Nodak Insurance Group and NI Holdings, Inc.<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has revised the outlook to negative from stable for the Long-Term Issuer Credit Ratings (Long-Term ICR) and affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of \u201ca+\u201d (Excellent) for the members of Nodak Insurance Group (Nodak). The outlook of the FSR is stable. Concurrently, AM Best has revised the outlook to negative from stable and affirmed the Long-Term ICR of \u201cbbb+\u201d (Good) of NI Holdings, Inc. (Fargo, ND) [NASDAQ: NODK], a publicly traded holding company. (See below for a full listing of companies and Credit Ratings [ratings].)<\/p>\n

\nThe ratings reflect Nodak\u2019s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management.<\/p>\n

\nThe revised outlook of the Long-Term ICRs considers the deterioration in Nodak\u2019s operating results over the past two years, primarily resulting from an abnormal level of catastrophe losses in its core states of operation, along with an increased severity of loss due to inflation. In 2022, the group incurred multiple severe weather-related events, all of which were in the vicinity of its catastrophe retention, and in the year prior, results were dampened by significant conditions impacting the crop lines. Consequently, the group\u2019s combined ratio has been above breakeven for two consecutive years and reached a five-year high of 118.5% in 2022. Also in 2022, underwriting losses coupled with unrealized capital losses due to stock market volatility resulted in the group reporting a nearly 20% decline in policyholders\u2019 surplus.<\/p>\n

\nNodak\u2019s management is addressing the volatility through rate, inflation guard adjustments, aggressive re-underwriting of its book of business, non-renewing particular coverages and requiring higher deductibles. The group also continues to perform property inspections and will no longer be accepting certain property risks. AM Best expects that these actions will allow Nodak to improve upon its current level of performance and return back to historical norms. Although given the magnitude of the decline, in the absence of improvement, the ratings are likely to be downgraded.<\/p>\n

\nThe FSR of A (Excellent) and the Long-Term ICRs of \u201ca+\u201d (Excellent) have been affirmed, with the outlook of the Long-Term ICRs revised to negative from stable, while the outlook of the FSR is stable, for the following members of the Nodak Insurance Group:<\/p>\n