NI Holdings, Inc. Reports Results for Third Quarter Ended September 30, 2024

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]