NI (NODK) - 2025 Q2 - Quarterly Results

Executive Summary & Financial Highlights NI Holdings, Inc. experienced a challenging Q2 2025, marked by declining premiums, an increased combined ratio, and a net loss Summary of Second Quarter 2025 Results – Continuing Operations NI Holdings, Inc. reported a challenging second quarter and year-to-date 2025, with significant declines in direct written premiums and net earned premiums, and an increase in the combined ratio, resulting in a net loss attributable to NI Holdings for both periods Summary of Second Quarter and Six Months Ended June 30, 2025 Results (Continuing Operations) | Metric | Three Months Ended June 30, 2025 (Thousands) | Three Months Ended June 30, 2024 (Thousands) | Change (3M) | Six Months Ended June 30, 2025 (Thousands) | Six Months Ended June 30, 2024 (Thousands) | Change (6M) | | :---------------------------------------- | :------------------------------------------- | :------------------------------------------- | :---------- | :------------------------------------------- | :------------------------------------------- | :---------- | | Direct written premiums | $109,519 | $118,472 | (7.6%) | $177,247 | $201,513 | (12.0%) | | Net earned premiums | $73,005 | $85,169 | (14.3%) | $140,502 | $155,053 | (9.4%) | | Loss and LAE ratio (%) | 91.2% | 81.4% | 9.8 pts | 74.8% | 70.6% | 4.2 pts | | Expense ratio (%) | 33.9% | 32.3% | 1.6 pts | 35.5% | 34.2% | 1.3 pts | | Combined ratio (%) | 125.1% | 113.7% | 11.4 pts | 110.3% | 104.8% | 5.5 pts | | Net loss attributable to NI Holdings | $(12,051) | $(19,622) | (38.6%) | $(5,591) | $(13,203) | (57.7%) | | Continuing operations | $(12,051) | $(7,478) | 61.2% | $(5,591) | $(543) | NM | | Basic loss per share (Dollars) | $(0.57) | $(0.94) | (39.4%) | $(0.27) | $(0.63) | (57.1%) | | Continuing operations (per share, Dollars)| $(0.57) | $(0.36) | 58.3% | $(0.27) | $(0.03) | NM | | Return on average equity (%) | (19.4%) | (12.8%) | (6.6) pts | (4.6%) | (0.5%) | (4.1) pts | Management Commentary Management acknowledged the negative impact of a significant catastrophe event in North Dakota, primarily affecting Home and Farm, which drove the higher combined ratio, partially offset by favorable weather and underwriting changes in South Dakota and Nebraska, alongside a strategic reduction in Non-Standard Auto premiums and positive investment returns - The second quarter was negatively impacted by a catastrophe event in North Dakota, primarily in Home and Farm, which exceeded the Company's $20 million reinsurance retention[5][6] - Direct written premiums decreased by 7.6% to $109.5 million, primarily due to a 56.4% reduction in Non-Standard Auto premiums as a result of a strategic decision to significantly decrease this line of business, partially offset by an 8.1% increase in Home and Farm premiums[6] - The combined ratio increased to 125.1% from 113.7%, driven by higher unfavorable development of liability loss claims in Non-Standard Auto, decreased net earned premiums in Non-Standard Auto, and the significant North Dakota catastrophe event[6] - Net investment income increased 40.8% to $2.7 million, benefiting from higher reinvestment rates in the fixed income portfolio and higher net realized gains[6] Company Overview NI Holdings, Inc. is a North Dakota-based insurance holding company formed in 2017, consolidating various insurance subsidiaries About the Company NI Holdings, Inc. is an insurance holding company based in North Dakota, formed in 2017 through the conversion of Nodak Mutual Insurance Company, consolidating the financial results of its wholly-owned subsidiaries - NI Holdings, Inc. is a North Dakota business corporation and an insurance holding company[8] - The company was formed on March 13, 2017, following the conversion of Nodak Mutual Insurance Company from a mutual to stock form[8] - Key subsidiaries include Nodak Insurance Company, American West Insurance Company, Primero Insurance Company, Battle Creek Insurance Company, Direct Auto Insurance Company, and Westminster Insurance Company (until sale)[8] Additional Information This section provides details on SEC filings, a safe harbor statement regarding forward-looking information, and investor relations contact details SEC Filings Information regarding the Company's Quarterly Report on Form 10-Q and other SEC filings is available on its website and the SEC's website - The Company's Quarterly Report on Form 10-Q and latest financial supplement can be found on www.niholdingsinc.com[7](index=7&type=chunk) - All Company filings with the SEC are also available at www.sec.gov[7](index=7&type=chunk) Safe Harbor Statement This section clarifies that certain statements in the news release are forward-looking and subject to various risks and uncertainties, including business and economic conditions, catastrophic weather events, and regulatory changes, which could cause actual results to differ materially, with the company disclaiming any obligation to update these statements - Statements anticipating future financial performance, business prospects, and operating strategies are forward-looking statements under the U.S. Private Securities Litigation Reform Act of 1995[9] - Actual results could vary materially due to factors such as maintaining profitable operations, adequacy of loss reserves, economic conditions, interest rates, competition, terrorism, reinsurance availability, adverse weather, legal/judicial developments, regulatory changes, and inflation[9] - The company disclaims any obligation to update forward-looking statements to reflect future events or circumstances[9] Investor Relations Contact Contact information for investor relations is provided for inquiries - Investor Relations Contact: Matt Maki, Executive Vice President, Treasurer and Chief Financial Officer[10] - Contact details: Phone: 701-212-5976, Email: IR@nodakins.com[10]