AM Best Assigns Issue Credit Rating to Maine Employers’ Mutual Insurance Company’s New Surplus Notes

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has assigned a Long-Term Issue Credit Rating of “bbb+” (Good) to the $70 million, 9% surplus notes, due December 2045, issued by Maine Employers’ Mutual Insurance Company (MEMIC) (Portland, ME). The outlook assigned to this Credit Rating (rating) is stable.

The surplus notes issuance is intended to strengthen the balance sheet and support MEMIC’s acquisition of the Dakota Group, which is expected to close in January 2026, pending regulatory approval. Following the surplus notes issuance, financial leverage at MEMIC will remain within AM Best’s guidelines. Interest coverage is expected to be adequate in the midterm.

The surplus notes are callable at par any time after 10 years from the issue date, in whole or in part, with 30 days prior notice and prior approval by the Maine Bureau of Insurance.

The Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of MEMIC and its subsidiaries remain unchanged.

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.