NI (US:NODK)2025-03-07 21:08Financial 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]