OLDWICK, N.J.–(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), both based in Sioux Falls, SD and collectively known as the Dakota Group, remain stable. This follows the recent news of their acquisition by Maine Employers’ Mutual Insurance Company (MEMIC) in Portland, ME. The acquisition involves Risk Administration Services, Inc. (RAS) and its four affiliated insurance services companies, with RAS functioning as the attorney-in-fact for DTU, a reciprocal insurer that will continue to be owned by its subscribers and hold a minority interest in FDI.
Acquisition Details
The MEMIC Group’s acquisition will position it as the third-largest multistate specialty workers’ compensation insurance carrier in the U.S., combining its robust East Coast presence with the Dakota Group’s Midwest operations. This integration is expected to enhance pricing flexibility and underwriting performance, as well as offer greater diversification of premium, potentially leading to an improved combined ratio on a consolidated scale.
Diversification of Earnings
The transaction also incorporates non-risk-bearing entities, which will contribute to overall earnings by generating revenue through fees. The completion of this acquisition is anticipated in January 2026, pending regulatory approval.
Credit Ratings Information
This press release pertains to Credit Ratings that are accessible on AM Best’s website. For more comprehensive information on the release and relevant disclosures, including details about the office responsible for issuing the individual ratings mentioned, please consult the AM Best’s Recent Rating Activity web page. Additional context regarding the use and limitations of Credit Rating opinions can be found in the Guide to Best’s Credit Ratings.
Proper Usage of Ratings
For guidelines on the appropriate use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments, and AM Best press releases, please reference the Guide to Proper Use of Best’s Ratings & Assessments.
About AM Best
AM Best is a renowned global credit rating agency, news publisher, and data analytics provider focusing on the insurance sector. The company is headquartered in the U.S. and operates in over 100 countries, with regional offices located in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City. For more details, visit www.ambest.com.
Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
