NI Holdings, Inc. Reports Results for Second Quarter Ended June 30, 2025

Core Viewpoint - NI Holdings, Inc. reported a decline in key financial metrics for the second quarter of 2025, primarily due to the impact of catastrophic events in North Dakota, despite some positive performance in other regions [4][5]. Financial Performance - Direct written premiums decreased to $109.5 million, down 7.6% from $118.5 million in the same quarter of 2024 [3]. - Net earned premiums fell by 14.3% to $73.0 million compared to $85.2 million in the second quarter of 2024 [3]. - The loss and loss adjustment expense (LAE) ratio increased to 91.2%, up from 81.4% in the prior year, indicating higher claims costs [3]. - The expense ratio rose to 33.9%, compared to 32.3% in the same quarter of 2024 [3]. - The combined ratio worsened to 125.1%, up from 113.7% in the previous year, reflecting increased claims and expenses [3]. - Net loss attributable to NI Holdings was $(12.1) million, a 38.6% improvement from $(19.6) million in the second quarter of 2024 [3]. - Basic loss per share improved to $(0.57) from $(0.94), a 39.4% reduction in losses per share [3]. Operational Insights - The company faced significant pre-tax catastrophe losses of $20.0 million for the quarter, which adversely affected loss ratios [5]. - The Non-Standard Auto segment saw a dramatic decline in direct written premiums by 56.4%, attributed to strategic decisions to reduce exposure in this area [5]. - Home and Farm premiums increased by 8.1%, driven by higher rates and insured values, along with new business growth in North Dakota [5]. - The investment portfolio yielded positive returns, with net investment income rising by 40.8% to $2.7 million, benefiting from higher reinvestment rates [5]. Management Commentary - The CEO acknowledged the challenges posed by recent storms in North Dakota and emphasized the company's commitment to supporting affected communities [4]. - The management highlighted the positive impact of underwriting changes and geographic diversification, particularly in South Dakota and Nebraska, which helped mitigate some losses [4].