AM Best Comments on Credit Ratings of Maine Employers’ Mutual Insurance Company and Its Subsidiaries Following Announced Acquisition of Dakota Group

Business Wire

OLDWICK, N.J.--(BUSINESS WIRE)--
AM Best has commented that the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a” (Excellent) of Maine Employers’ Mutual Insurance Company (Portland, ME) and its wholly owned subsidiaries, MEMIC Indemnity Company and MEMIC Casualty Company (both domiciled in Manchester, NH), collectively referred to as the MEMIC Group, remain unchanged following the recent announcement of a transaction to acquire the Dakota Group, which includes Dakota Truck Underwriters (DTU), First Dakota Indemnity Company (FDI) (both domiciled in Sioux Falls, SD) and Risk Administration Services, Inc. (RAS). The transaction also includes purchase of RAS’ four affiliated insurance services companies. RAS serves as attorney-in-fact to DTU, a reciprocal insurer, which will remain owned by its subscribers and maintain a minority interest in FDI.

With the acquisition, the MEMIC Group would become the third-largest multistate specialty workers’ compensation insurance carrier in the United States, pairing its strong underwriting presence on the East Coast with the Dakota Group’s footprint in the Midwest. The Dakota Group offers pricing flexibility, strong underwriting and greater geographic diversification of premium that should support an improved combined ratio on a consolidated basis. The acquisition also includes non-risk-bearing entities that will diversify overall earnings by generating fee-based revenue.

The transaction will be financed primarily by cash and liquidated fixed income securities on the MEMIC Group’s balance sheet. Risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is expected to remain at a level that supports the consolidated group. The transaction is anticipated to close in January 2026, subject to regulatory approval.

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.