Group 1 - The individual has extensive experience in large mining projects, financial control, and consulting across various sectors, including primary industry and food processing [1] - The individual has held financial controller positions in notable companies such as Utah International Inc, General Electric Inc, and BHP Billiton [1] - A unique skill identified is the assessment of long-term projects where costs are front-loaded and future revenues are uncertain [1] Group 2 - The individual emphasizes that calculating future value per share is more beneficial for determining potential exit value and rate of return than calculating present value per share [1]

Core Insights - NI Holdings, Inc. reported a decrease in direct written premiums by 18.4% year-over-year, totaling $67.7 million compared to $83.0 million in the first quarter of 2024 [3][7] - The company achieved a net income of $6.46 million, reflecting a 6.8% decline from $6.94 million in the same quarter last year [3][4] - The combined ratio increased slightly to 94.4%, up from 93.9% in the previous year, indicating a marginal rise in underwriting expenses relative to earned premiums [3][7] Financial Performance - Direct written premiums decreased to $67,728 thousand from $83,041 thousand, primarily due to a significant reduction in the Non-Standard Auto segment, which saw a decline of 58.8% [3][7] - Net earned premiums also fell by 3.4%, from $69,884 thousand to $67,497 thousand [3] - The loss and LAE (Loss Adjustment Expense) ratio improved slightly to 57.1% from 57.4%, while the expense ratio increased to 37.3% from 36.5% [3] Operational Highlights - The company reported solid growth in core personal line segments, particularly in North Dakota, attributed to increased new business and strong retention rates [4] - Favorable weather conditions and lower large loss frequency in the Home and Farm segment contributed positively to performance [4] - Management emphasized a renewed focus on strategic actions to return the Non-Standard Auto segment to profitability, which impacted overall premium figures [5][6] Shareholder Value - Return on average equity decreased to 10.4% from 12.1%, reflecting a decline in profitability metrics [3] - Basic earnings per share remained stable at $0.31, compared to $0.33 in the previous year, indicating a slight decrease in earnings from continuing operations [3][7] - The company aims to create lasting value for shareholders through sustained growth and profitability over time [6]

Financial Results Announcement - The company announced its financial results for the quarter ended March 31, 2025, on May 9, 2025[5] - A press release detailing the financial results was issued, which is attached as Exhibit 99.1[5] Company Information - The company is listed on the Nasdaq Capital Market under the trading symbol NODK[3] - The report indicates that the company is not an emerging growth company[4] Regulatory Information - The financial information provided is not deemed "filed" under the Securities Exchange Act of 1934[6] - The report includes a cover page interactive data file with embedded XBRL tags[7]

Financial Performance - Net income for Q1 2025 was $6,460, a decrease of 6.8% from $6,935 in Q1 2024[140] - Net premiums earned decreased by $2,387, or 3.4%, to $67,497 in Q1 2025 from $69,884 in Q1 2024[142] - The combined ratio for Q1 2025 was 94.4%, an increase of 0.5 percentage points from 93.9% in Q1 2024[161] - Underwriting gain decreased by $406 to $3,812 in Q1 2025 compared to $4,218 in Q1 2024[160] - The expense ratio increased to 37.3% in Q1 2025 from 36.5% in Q1 2024[158] - Net losses and loss adjustment expenses decreased by $1,619, or 4.0%, to $38,525 in Q1 2025 from $40,144 in Q1 2024[150] Investment Income - Net investment income increased by $83 to $2,838 in Q1 2025 from $2,755 in Q1 2024[163] - For the three months ended March 31, 2025, net investment gains totaled $869 million, a decrease from $1,456 million in the same period of 2024[165] - Net realized gains for the three months ended March 31, 2025, were $326 million, compared to net realized losses of $91 million for the same period in 2024[165] - The fixed income portion of the portfolio experienced net unrealized gains of $3,313 million for the three months ended March 31, 2025, compared to net unrealized losses of $1,531 million in the same period of 2024[167] Tax and Cash Flow - Pre-tax income for the three months ended March 31, 2025, was $7,749 million, down from $8,833 million in the same period of 2024[168] - The effective tax rate for the first quarter of 2025 was 16.6%, down from 21.5% in the first quarter of 2024[169] - Net cash provided by operating activities for the three months ended March 31, 2025, was $9,888 million, compared to $16,663 million in the prior year quarter[177] - The net increase in cash and cash equivalents for the three months ended March 31, 2025, was $6,272 million, down from $12,342 million in the same period of 2024[176] Liquidity and Dividends - The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2025 is approximately $8,273 million as of December 31, 2024[182] - The company expects to maintain a high degree of liquidity in its investment portfolio to meet claim settlements and operating expenses for the foreseeable future[174] Premiums - Private Passenger Auto premiums increased by $556, or 2.5%, while Non-Standard Auto premiums decreased by $6,736, or 27.0%[144][145] - Fee and other income decreased to $230 in Q1 2025 from $404 in Q1 2024, primarily due to strategic reductions in the Non-Standard Auto segment[162]

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]