Core Viewpoint - NI Holdings, Inc. reported mixed financial results for the year ended December 31, 2024, with a strong fourth quarter net income but challenges in certain segments leading to increased combined ratios and a decline in earnings per share [1][5][6]. Financial Performance - Direct written premiums for Q4 2024 were $73.1 million, down 7.9% from Q4 2023, while full-year direct written premiums increased slightly by 0.3% to $342.3 million [3][5]. - Net earned premiums for Q4 2024 were $71.8 million, a decrease of 3.0% compared to the prior year quarter, but full-year net earned premiums rose by 6.2% to $310.1 million [3][5]. - The loss and LAE (Loss Adjustment Expense) ratio for Q4 2024 was 45.8%, up 2.3 percentage points from the prior year quarter, and the full-year ratio was 66.9%, an increase of 3.1 percentage points [3][5]. - The combined ratio for Q4 2024 was 80.0%, up 1.3 percentage points year-over-year, while the full-year combined ratio was 100.7%, compared to 97.0% in 2023 [3][5]. - Net income attributable to NI Holdings for Q4 2024 was $9.8 million, a 48.6% increase from $6.6 million in Q4 2023, but the full-year net income showed a loss of $6.1 million compared to a loss of $5.5 million in 2023 [3][5][6]. Management Commentary - The newly appointed President and CEO expressed optimism about the company's future and emphasized the importance of collaboration with the board, employees, and agents to drive success [4][6]. - The company highlighted strong performance in the Private Passenger Auto and Home and Farm segments, aided by improved weather conditions and strategic underwriting actions [6][8]. Strategic Focus - NI Holdings plans to implement a comprehensive long-term strategic plan focusing on enhancing investments in people and technology, improving distribution management, and managing expenses to create lasting shareholder value [8]. - The company is taking aggressive actions to address challenges in the Non-Standard Auto segment, which has faced unfavorable reserve developments [6][7].

Financial Performance - Fourth quarter net income of $9.9 million, representing a 48.6% increase compared to the prior year quarter [5] - Direct written premiums for the fourth quarter were $73.1 million, down 7.9% year-over-year, while full-year direct written premiums increased by 0.3% to $342.3 million [5] - Net earned premiums for the fourth quarter decreased by 3.0% to $71.8 million, but increased by 6.2% for the full year to $310.1 million [5] - The combined ratio for the fourth quarter was 80.0%, up 1.3 percentage points from the prior year, while the full-year combined ratio was 100.7%, an increase of 3.7 percentage points [5] - Basic earnings per share for the fourth quarter were $0.47, a 46.9% increase from $0.32 in the prior year quarter [5] - The return on average equity for the fourth quarter was 16.2%, down from 32.3% in the prior year quarter [3] Investment and Strategic Focus - Net investment income rose by 36.2% to $10.9 million, driven by higher fixed income reinvestment rates [5] - The company plans to refocus on a long-term strategic plan emphasizing investments in people and technology, and enhanced distribution management [8] - The company aims to improve its risk profile to reduce earnings volatility and support consistent profitable growth [7] Operational Challenges - The company experienced unfavorable reserve development in its Non-Standard Auto business, prompting aggressive strategic actions to address these issues [6]

Insurance Premiums - Private passenger auto insurance accounted for $97,209 million (28.4%) of direct premiums written by the company in 2024[45] - Non-standard auto insurance represented $87,467 million (25.6%) of direct premiums written by the company in 2024[46] - Home and farm insurance contributed $107,203 million (31.3%) of direct premiums written by the company in 2024[47] - Crop insurance accounted for $36,421 million (10.6%) of direct premiums written by the company in 2024[48] - Other coverages, including commercial and excess liability, made up $14,002 million (4.1%) of direct premiums written by the company in 2024[49] Crop Insurance - The company's multi-peril crop insurance premiums for North Dakota were $30,641 million, $39,073 million, and $45,465 million for the years ended December 31, 2024, 2023, and 2022, respectively[73] - The total North Dakota multi-peril crop premiums for the industry were $1,231,110 million, $1,491,650 million, and $1,537,758 million for the years ended December 31, 2024, 2023, and 2022, respectively[73] - The multi-peril crop insurance business is overseen by the federal government through the RMA, which establishes premium rates and loss adjustment procedures[80] Financial Strength and Regulation - All of the company's insurance subsidiaries are rated "A" Excellent by AM Best, reflecting a stable financial strength outlook[70] - The company has never triggered any regulatory capital levels under the NAIC Risk-Based Capital Requirements, with total adjusted capital exceeding the authorized control level[83] - The NAIC has established a set of 13 financial ratios known as the Insurance Regulatory Information System (IRIS) to monitor the financial condition of insurance companies[84] - None of the insurance company subsidiaries produced results outside the acceptable range for more than three of the IRIS tests during the years ended December 31, 2024 and 2023[84] - The company is subject to extensive state-level regulation, impacting various aspects of its operations including pricing and claims procedures[79] - The company is required to submit an enterprise risk report annually to its lead state insurance regulator, identifying activities that could materially affect its financial condition[85] - The company must obtain prior approval from state insurance regulatory authorities before paying extraordinary dividends to shareholders[98] Business Operations and Strategy - The company focuses on disciplined pricing and risk assessment to maintain underwriting profitability while attracting and retaining customers[61] - The company utilizes a cost-effective distribution system through exclusive and independent agents to market its insurance products[54] - The company plans to continue growing, which may require additional capital and skilled personnel[151] - Risks associated with growth include identifying profitable opportunities and managing capital requirements[151] - Business operations could be interrupted by various external factors, including weather-related incidents and pandemics[152] - Business continuity plans may not sufficiently address all risks from significant business interruptions[152] Employee Information - As of December 31, 2024, NI Holdings had 216 total employees, with a full-time employee count of 202[104] - Employee turnover averaged 29.0% in 2024, an increase from 22.7% in 2023 and 25.2% in 2022[104] Investment Risks - The investment portfolio is the largest component of the company's assets, exposing it to credit and cash flow risks[150] - Adverse changes in economic conditions could lead to material impairments in the investment portfolio, affecting financial condition and operating results[150] Regulatory Compliance - The company is no longer classified as an emerging growth company as of December 31, 2022, and must comply with new reporting requirements[96] - The company paid only minimal assessments pursuant to state insurance guaranty association laws for the years ended December 31, 2024, 2023, and 2022[88]

Company Leadership Changes - NI Holdings, Inc. announced the appointment of Seth C. Daggett as President and CEO, effective December 1, 2024, succeeding Cindy L. Launer, who served as Interim CEO [1][2] - Mr. Daggett has over two decades of industry experience, previously serving as the Company's CFO and Treasurer [1][3] - Cindy L. Launer will return to her role as an independent non-executive director on the Board effective December 1, 2024 [2] Management Background - Seth Daggett's prior experience includes serving as CFO and Treasurer of RAM Mutual Insurance Company and roles at Deloitte and Travelers Companies, Inc. [3] - Matt Maki, currently Vice President of Financial Planning and Analysis, will assume the role of Interim CFO effective December 1, 2024, while the Company searches for a permanent CFO [2][4] Company Overview - NI Holdings, Inc. is an insurance holding company based in North Dakota, serving as the stock holding company of Nodak Insurance Company [5] - The Company was formed following the conversion of Nodak Mutual Insurance Company from a mutual to stock form on March 13, 2017 [5] - NI Holdings' financial statements consolidate results from NI Holdings, Nodak Insurance Company, and its wholly-owned subsidiaries [5]

Core Insights - NI Holdings, Inc. reported a slight decrease in direct written premiums for Q3 2024, totaling $67.7 million, down 0.3% from $67.9 million in Q3 2023, primarily due to a significant decline in Non-Standard Auto premiums by 35.8% [2][3] - Net earned premiums increased by 9.0% to $83.3 million compared to $76.4 million in the same quarter last year [2][3] - The combined ratio rose to 111.0% from 100.8%, attributed to higher non-catastrophe weather-related losses in Home and Farm segments, despite improved performance in Private Passenger Auto [2][3] - Net investment income saw a substantial increase of 32.5%, reaching $2.8 million, driven by higher fixed income reinvestment rates [2][3] - The company reported a basic loss per share of $0.13, a decline from earnings per share of $0.03 in the previous year [2][3] Financial Performance - Direct written premiums for the nine months ended September 30, 2024, were $269.2 million, reflecting a 2.8% increase from $261.9 million in the same period of 2023 [3] - Net earned premiums for the nine months increased by 9.3% to $238.3 million compared to $218.1 million in the prior year [3] - The loss and LAE (Loss Adjustment Expense) ratio increased to 78.2% from 69.6%, while the expense ratio rose to 32.8% from 31.2% [3] - The net income attributable to NI Holdings was a loss of $2.7 million, compared to a profit of $231,000 in Q3 2023 [3] - The return on average equity decreased to (4.5%) from 1.3% year-over-year [3] Management Commentary - The Interim CEO highlighted challenges in the Non-Standard Auto segment, elevated costs related to CEO transition, and increased weather-related losses in North Dakota [4] - The company remains focused on strategic underwriting initiatives and believes that the recent sale of Westminster American will help refocus efforts on core business operations [4] Company Overview - NI Holdings, Inc. is an insurance holding company based in North Dakota, primarily operating through its subsidiary Nodak Insurance Company [6] - The company transitioned from a mutual to a stock form of organization in March 2017, with Nodak Insurance becoming a wholly-owned subsidiary [6]

Premiums and Income - Direct written premiums for Q3 2024 were $67.7 million, a slight decrease of 0.3% compared to $67.9 million in Q3 2023, primarily due to a 35.8% decline in Non-Standard Auto[1][2] - Net earned premiums increased by 9.0% to $83.3 million, up from $76.4 million in the same quarter last year[1][2] - Net investment income surged by 32.5% to $2.8 million, driven by higher fixed income reinvestment rates[1][2] Financial Performance - The combined ratio rose to 111.0%, an increase of 10.2 percentage points from 100.8% in Q3 2023, attributed to higher non-catastrophe weather-related losses[1][2] - The company reported a basic loss per share of ($0.13), compared to earnings per share of $0.03 in Q3 2023[1][2] - Net income attributable to NI Holdings was $(2.7 million) for Q3 2024, a significant decline from a profit of $231,000 in Q3 2023[1][2] - The loss and LAE ratio increased to 78.2%, up 8.6 percentage points from 69.6% in the prior year[2] - The expense ratio rose to 32.8%, an increase of 1.6 percentage points compared to 31.2% in Q3 2023[2] Strategic Focus - Management indicated that the sale of Westminster American has allowed the company to refocus on its core business, aiming for a return to profitability over time[3] - The company is facing challenges from unfavorable prior year developments in the Non-Standard Auto segment and elevated costs related to CEO transition[3]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 i FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37973 NI HOLDINGS, INC. (Exact name of registrant as specified in its charter) NORTH DAKOTA 81-2683619 (State or other jurisdiction of ( ...

American Family Insurance is selling their non-standard auto insurance business to Sentry Insurance. I expect more insurance deals, especially deals like this with mutual buyers. My next bet for a deal target is Chris runs the investing group Sifting the World , in which he shares his best ideas, deep research, extensive resources and real time updates as investments play out. The group contains an experienced community that shares specialized knowledge when members have local knowledge of opportunities und ...

FARGO, N.D., Aug. 08, 2024 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended June 30, 2024. Summary of Second Quarter 2024 Results – Continuing Operations (All comparisons vs. continuing operations for the second quarter of 2023, unless noted otherwise) Direct written premiums of $118.5 million compared to $121.6 million. This 2.6% reduction was driven by Crop as a result of lower commodity prices impacting multi-peril crop insurance premiums, partially offse ...

Core Points - NI Holdings, Inc. has completed the sale of its wholly-owned commercial insurance subsidiary, Westminster American Insurance Company, for a total consideration of $10.5 million in cash, subject to post-closing adjustments [1] Company Overview - NI Holdings, Inc. is an insurance holding company based in North Dakota, formed as a stock holding company of Nodak Insurance Company following the conversion of Nodak Mutual Insurance Company from mutual to stock form on March 13, 2017 [2] - The financial statements of NI Holdings reflect the consolidated results of NI Holdings, Nodak Insurance, and its wholly-owned subsidiaries, including American West Insurance Company, Primero Insurance Company, Battle Creek Insurance Company, and Direct Auto Insurance Company [2]