NI (US:NODK)2025-11-07 21:07Financial Performance - Consolidated net loss from continuing operations for Q3 2025 was $1,666, a decrease of 38.5% compared to a net loss of $2,705 in Q3 2024[139] - Total revenues for Q3 2025 were $76,568, down from $88,984 in Q3 2024, representing a decrease of 13.9%[140] - Underwriting loss for Q3 2025 was $6,521, compared to a loss of $9,170 in Q3 2024, indicating an improvement[138] - The company recorded a net loss of $1,666 for Q3 2025, an improvement from a net loss of $2,705 in Q3 2024[169] - The effective tax rate for Q3 2025 was 10.3%, down from 21.7% in Q3 2024[167] Premiums and Segments - Net premiums earned for Q3 2025 decreased by $11,365, or 13.6%, to $71,905 compared to $83,270 in Q3 2024[141] - Private Passenger Auto segment saw a 2.6% increase in net premiums earned for Q3 2025, totaling $23,206[143] - Non-Standard Auto segment experienced a significant decline, with net premiums earned decreasing by $12,142, or 52.8%, in Q3 2025[144] - Home and Farm segment reported a slight increase in net premiums earned of $163, or 0.7%, for Q3 2025[145] Losses and Expenses - Net losses and loss adjustment expenses for Q3 2025 decreased by $8,903, or 13.7%, to $56,197 compared to $65,100 in Q3 2024[148] - The total underwriting loss decreased by $2,649 for the three-month period ended September 30, 2025, but increased by $4,425 for the nine-month period compared to the same periods in 2024[157] - The overall combined ratio decreased by 1.9 percentage points in Q3 2025 compared to Q3 2024, but increased by 3.0 percentage points year-to-date[158] - The expense ratio decreased by 1.9 percentage points in Q3 2025 to 30.9% compared to 32.8% in Q3 2024[155] Investment Income - Net investment income for Q3 2025 increased to $3,040 from $2,811 in Q3 2024, a rise of 8.1%[140] - Net investment income increased by $229 for Q3 2025 compared to Q3 2024, and by $935 year-to-date, driven by a higher interest rate environment[160] - Net realized gains for the three and nine months ended September 30, 2025, were $811 and $1,244, respectively, compared to $45 and a loss of $37 for the same periods in 2024[162] Cash Flow and Liquidity - For the nine months ended September 30, 2025, net cash used by operating activities totaled $28,511, compared to net cash provided of $16,780 in the same period of 2024, primarily due to lower premium collections[175] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $3,621, down from $5,327 in 2024, driven by cash inflows from net sales of equity and fixed income securities[176] - Net cash used by financing activities totaled $1,387 for the nine months ended September 30, 2025, compared to $3,613 in the prior year, primarily due to cash outflows for share repurchases[177] - The company expects to maintain a high degree of liquidity in its investment portfolio to meet claim settlements and operating expenses[173] Dividends and Credit - The amount available for payment of dividends from Nodak Insurance to NI Holdings during 2025 without prior approval is approximately $8,273 as of December 31, 2024[179] - No dividends were declared or paid by Nodak Insurance or Direct Auto during the nine months ended September 30, 2025, or the year ended December 31, 2024[179][180] - The line of credit with Wells Fargo Bank, N.A. is $3,000 with a floating interest rate of 2.50% above the daily simple secured overnight financing rate, expiring on December 13, 2025[174] Market Risk - The assessment of market risk as of September 30, 2025, indicates no material changes from the previous year’s disclosures[184]