AM Best Affirms Ratings of Dakota Group
OLDWICK, N.J., September 26, 2025–(BUSINESS WIRE)–AM Best has announced that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) for Dakota Truck Underwriters (DTU) and First Dakota Indemnity Company (FDI), collectively known as the Dakota Group, remain intact. This follows the recent news of their impending acquisition by Maine Employers’ Mutual Insurance Company (MEMIC) based in Portland, ME. The acquisition encompasses Risk Administration Services, Inc. (RAS) along with its four related insurance service companies. RAS acts as attorney-in-fact for DTU, a reciprocal insurer that will continue to be owned by its subscribers while holding a minority interest in FDI.
Acquisition Impact
Through this acquisition, MEMIC Group will rank as the third-largest multistate specialty workers’ compensation insurance provider in the U.S. This merger aims to leverage MEMIC’s strong East Coast presence alongside Dakota Group’s established footprint in the Midwest. The Dakota Group’s capabilities in pricing flexibility, robust underwriting performance, and enhanced geographic premium diversity are expected to contribute positively to an improved combined ratio on a consolidated level.
Diversification of Earnings
The transaction also involves several non-risk-bearing entities, which will further diversify the overall earnings portfolio by generating revenue through fees. The deal is projected to finalize in January 2026, pending regulatory approval.
Related Credit Ratings Information
This press release pertains to Credit Ratings available on AM Best’s website. Detailed rating information and disclosures, including the office responsible for issuing each rating referenced, can be found on AM Best’s Recent Rating Activity web page. For further insights into the implications of Credit Rating opinions, refer to the Guide to Best’s Credit Ratings.
Proper Use of Ratings
For information on the appropriate application of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases, consult the Guide to Proper Use of Best’s Ratings & Assessments.
About AM Best
AM Best is a worldwide credit rating agency, news publisher, and data analytics provider that specializes in the insurance sector. Headquartered in the U.S., the company operates in over 100 countries, with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. Visit www.ambest.com for more information.
Copyright © 2025 by A.M. Best Rating Services, Inc. and its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250926383194/en/
