Financial Data and Key Metrics Changes - Net written premium grew 4% to $335.4 million, although growth was impacted by unusual ceded reinsurance premium adjustments [7] - The first quarter combined ratio was 99.4%, a 0.5 point increase from Q1 2024, while the underlying loss ratio improved by 2.9 points to 56.5% [7][18] - Net investment income increased to $23.5 million, primarily due to a rise in fixed maturity income [10][21] - Reported book value per share improved to $32.13, with adjusted book value per share growing to $34.16 [11][24] Business Line Data and Key Metrics Changes - Core Commercial businesses saw net written premium growth of 6%, with renewal premium change remaining strong at 11.7% [14] - Rate changes for general liability exceeded 9%, while automobile and umbrella lines produced double-digit rate changes [14][15] - Specialty and surety businesses performed in line with expectations, contributing to overall growth [16] Market Data and Key Metrics Changes - Catastrophe losses contributed five points to the combined ratio, with $8.2 million attributed to California wildfires [10][19] - The company experienced a strong underwriting profit despite elevated industry catastrophe losses [20] Company Strategy and Development Direction - The company is in the final stages of developing a new policy administration system, which is expected to improve process efficiency and product management [12] - Focus remains on disciplined pricing, stable retention, and increased new business production across the portfolio [7][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage potential impacts from material and labor cost inflation through disciplined pricing and regular trend evaluations [26][27] - The company anticipates that the elevated underwriting expense ratio will normalize over time as new systems and personnel are fully integrated [30][33] Other Important Information - The company declared and paid a cash dividend of $0.16 per share to shareholders [24] - The investment portfolio is well-positioned against market uncertainties, with a focus on improving credit quality and diversification [21][22] Q&A Session Summary Question: Current pricing power and impact of material and labor cost inflation - Management is closely monitoring the situation and believes that current rates exceed net loss trends, allowing for a cushion in estimates [26][27] Question: Underwriting expense ratio and potential levers to reduce it - The elevated expense ratio is partly due to one-time costs associated with the new policy administration system, which is expected to decrease over time [29][30] Question: Expectations for expense ratio normalization as the company grows - Management indicated that fixed costs provide leverage with premium growth, and the expense ratio is expected to normalize as new agents reach historical production averages [33]

Core Viewpoint - NI Holdings, Inc. reported mixed financial results for the year ended December 31, 2024, with a strong fourth quarter net income but challenges in certain segments leading to increased combined ratios and a decline in earnings per share [1][5][6]. Financial Performance - Direct written premiums for Q4 2024 were $73.1 million, down 7.9% from Q4 2023, while full-year direct written premiums increased slightly by 0.3% to $342.3 million [3][5]. - Net earned premiums for Q4 2024 were $71.8 million, a decrease of 3.0% compared to the prior year quarter, but full-year net earned premiums rose by 6.2% to $310.1 million [3][5]. - The loss and LAE (Loss Adjustment Expense) ratio for Q4 2024 was 45.8%, up 2.3 percentage points from the prior year quarter, and the full-year ratio was 66.9%, an increase of 3.1 percentage points [3][5]. - The combined ratio for Q4 2024 was 80.0%, up 1.3 percentage points year-over-year, while the full-year combined ratio was 100.7%, compared to 97.0% in 2023 [3][5]. - Net income attributable to NI Holdings for Q4 2024 was $9.8 million, a 48.6% increase from $6.6 million in Q4 2023, but the full-year net income showed a loss of $6.1 million compared to a loss of $5.5 million in 2023 [3][5][6]. Management Commentary - The newly appointed President and CEO expressed optimism about the company's future and emphasized the importance of collaboration with the board, employees, and agents to drive success [4][6]. - The company highlighted strong performance in the Private Passenger Auto and Home and Farm segments, aided by improved weather conditions and strategic underwriting actions [6][8]. Strategic Focus - NI Holdings plans to implement a comprehensive long-term strategic plan focusing on enhancing investments in people and technology, improving distribution management, and managing expenses to create lasting shareholder value [8]. - The company is taking aggressive actions to address challenges in the Non-Standard Auto segment, which has faced unfavorable reserve developments [6][7].