NI (US:NODK) Globenewswireยท2025-11-07 21:15Core Viewpoint - NI Holdings, Inc. reported a decline in key financial metrics for the third quarter of 2025, primarily due to strategic changes in its Non-Standard Auto segment, which included ceasing operations in certain states to improve future underwriting performance and stability [1][4][6]. Financial Performance - Direct written premiums decreased to $58.5 million from $67.7 million, a decline of 13.7% year-over-year, largely due to an 80.0% drop in Non-Standard Auto premiums [3][6]. - Net earned premiums also fell by 13.6% to $71.9 million compared to $83.3 million in the previous year [3][6]. - The loss and LAE (Loss Adjustment Expense) ratio remained stable at 78.2%, while the expense ratio improved to 30.9% from 32.8% [3][6]. - The combined ratio improved to 109.1% from 111.0%, indicating a slight enhancement in overall operational efficiency [3][6]. - Net loss attributable to NI Holdings decreased significantly by 38.4% to $(1.7) million from $(2.7) million [3][6]. - Basic loss per share improved to $(0.08) from $(0.13), reflecting a 38.5% reduction in losses per share [3][6]. Strategic Decisions - The company made a strategic decision to stop writing Non-Standard Auto business in Illinois, Arizona, and South Dakota, which is expected to reduce future earned premiums but aims to enhance underwriting performance and stability [4][6]. - The Home and Farm premiums saw a 10.1% increase, attributed to new business growth in North Dakota, rate increases, and higher insured property values, although this was partially offset by lower retention and new business in Nebraska [6]. Management Commentary - The new CEO, Cindy Launer, expressed enthusiasm about rejoining the company and emphasized the commitment to delivering outstanding service and products while addressing the challenges faced in the Non-Standard Auto segment [4].