AM Best has stated 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), both based in Sioux Falls, SD and collectively known as the Dakota Group, will remain unchanged following the recent announcement regarding their acquisition by Maine Employers’ Mutual Insurance Company (MEMIC) based in Portland, ME. The deal includes the acquisition of Risk Administration Services, Inc. (RAS) along with its four affiliated insurance service companies. RAS acts as attorney-in-fact for DTU, a reciprocal insurer that will continue to be owned by its subscribers while retaining a minority stake in FDI.
As a result of this acquisition, the MEMIC Group is set to become the third-largest multistate specialty workers’ compensation insurance provider in the United States, combining its strong East Coast presence with the Dakota Group’s reach in the Midwest. The Dakota Group is known for its pricing flexibility, robust underwriting, and enhanced geographic diversification of premiums, which is expected to positively impact the consolidated combined ratio.
Additionally, the acquisition encompasses non-risk-bearing entities that will contribute to overall earnings through fee-based revenue streams. The deal is projected to be finalized in January 2026, pending regulatory approval.
This press release pertains to Credit Ratings that are available on AM Best’s website. For comprehensive rating information related to this announcement and pertinent disclosures, including details of the office responsible for each rating mentioned, please visit AM Best’s Recent Rating Activity webpage. For additional insights about the use and limitations of Credit Rating opinions, consult the Guide to Best’s Credit Ratings.
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