NI Holdings, Inc. Reports Results for Fourth Quarter and Year Ended December 31, 2024
NI Holdings (NASDAQ: NODK) reported its Q4 and full-year 2024 results, with Q4 net income of $9.9 million and a 16.2% return on average equity. The Q4 combined ratio was 80.0%, while the full-year ratio increased to 100.7% from 97.0% in 2023.
Q4 direct written premiums decreased 7.9% to $73.1 million, though full-year premiums slightly increased by 0.3% to $342.3 million. Net investment income saw significant growth, rising 36.2% to $10.9 million due to higher fixed income reinvestment rates.
The company faced challenges in its Non-Standard Auto segment with unfavorable reserve development, while Private Passenger Auto and Home and Farm segments showed improved performance. Earnings per share were $0.47 for Q4 2024 (vs $0.92 in Q4 2023) and $0.31 for full-year 2024 (vs $0.93 in 2023).
Under new CEO Seth Daggett, the company plans to focus on improving its risk profile and developing a long-term strategic plan centered on its North Dakota foundation, including increased investments in technology and enhanced distribution management.
NI Holdings (NASDAQ: NODK) ha riportato i risultati del Q4 e dell'intero anno 2024, con un reddito netto nel Q4 di 9,9 milioni di dollari e un ritorno sul capitale medio del 16,2%. Il rapporto combinato del Q4 è stato dell'80,0%, mentre il rapporto per l'intero anno è aumentato al 100,7% rispetto al 97,0% del 2023.
I premi diretti scritti nel Q4 sono diminuiti del 7,9% a 73,1 milioni di dollari, mentre i premi per l'intero anno sono leggermente aumentati dello 0,3% a 342,3 milioni di dollari. Il reddito netto da investimenti ha visto una crescita significativa, aumentando del 36,2% a 10,9 milioni di dollari grazie a tassi di reinvestimento più elevati nei titoli a reddito fisso.
L'azienda ha affrontato sfide nel suo segmento Auto Non Standard a causa di uno sviluppo sfavorevole delle riserve, mentre i segmenti Auto Privata e Casa e Fattoria hanno mostrato un miglioramento delle performance. Gli utili per azione sono stati di 0,47 dollari per il Q4 2024 (rispetto a 0,92 dollari nel Q4 2023) e di 0,31 dollari per l'intero anno 2024 (rispetto a 0,93 dollari nel 2023).
Sotto la nuova direzione del CEO Seth Daggett, l'azienda prevede di concentrarsi sul miglioramento del proprio profilo di rischio e sulla creazione di un piano strategico a lungo termine incentrato sulla sua base nel Dakota del Nord, inclusi maggiori investimenti in tecnologia e una gestione della distribuzione potenziata.
NI Holdings (NASDAQ: NODK) reportó sus resultados del Q4 y del año completo 2024, con un ingreso neto en el Q4 de 9,9 millones de dólares y un retorno sobre el capital promedio del 16,2%. La relación combinada del Q4 fue del 80,0%, mientras que la relación del año completo aumentó al 100,7% desde el 97,0% en 2023.
Las primas directas escritas en el Q4 disminuyeron un 7,9% a 73,1 millones de dólares, aunque las primas del año completo aumentaron ligeramente un 0,3% a 342,3 millones de dólares. Los ingresos netos por inversiones vieron un crecimiento significativo, aumentando un 36,2% a 10,9 millones de dólares debido a tasas de reinversión de renta fija más altas.
La compañía enfrentó desafíos en su segmento de Auto No Estándar con un desarrollo desfavorable de reservas, mientras que los segmentos de Auto para Pasajeros Privados y Casa y Granja mostraron un mejor rendimiento. Las ganancias por acción fueron de 0,47 dólares para el Q4 2024 (frente a 0,92 dólares en el Q4 2023) y de 0,31 dólares para el año completo 2024 (frente a 0,93 dólares en 2023).
Bajo la nueva dirección del CEO Seth Daggett, la compañía planea centrarse en mejorar su perfil de riesgo y desarrollar un plan estratégico a largo plazo centrado en su base en Dakota del Norte, incluidos mayores inversiones en tecnología y una gestión de distribución mejorada.
NI Holdings (NASDAQ: NODK)는 2024년 4분기 및 연간 실적을 발표했으며, 4분기 순이익은 990만 달러, 평균 자기자본 수익률은 16.2%를 기록했습니다. 4분기 결합 비율은 80.0%였고, 연간 비율은 2023년 97.0%에서 100.7%로 증가했습니다.
4분기 직접 인수 프리미엄은 7.9% 감소하여 7310만 달러에 달했지만, 연간 프리미엄은 0.3% 증가하여 3억 4230만 달러에 도달했습니다. 순 투자 수익은 고정 수익 재투자율 상승으로 인해 36.2% 증가하여 1090만 달러에 달했습니다.
회사는 비표준 자동차 부문에서 불리한 준비금 개발로 어려움을 겪었지만, 개인 승용차 및 주택 및 농장 부문은 성과가 개선되었습니다. 2024년 4분기 주당 순이익은 0.47달러(2023년 4분기 0.92달러 대비)였고, 연간 주당 순이익은 0.31달러(2023년 0.93달러 대비)였습니다.
새로운 CEO 세스 다게트(Seth Daggett) 하에 회사는 리스크 프로필을 개선하고 노스다코타 기반에 중점을 둔 장기 전략 계획을 개발하는 데 집중할 계획이며, 기술에 대한 투자 증가와 배급 관리 개선을 포함합니다.
NI Holdings (NASDAQ: NODK) a publié ses résultats du 4e trimestre et de l'année 2024, avec un revenu net de 9,9 millions de dollars au 4e trimestre et un retour sur capitaux propres moyen de 16,2%. Le ratio combiné du 4e trimestre était de 80,0%, tandis que le ratio pour l'année entière a augmenté à 100,7% contre 97,0% en 2023.
Les primes directes souscrites au 4e trimestre ont diminué de 7,9% pour atteindre 73,1 millions de dollars, bien que les primes pour l'année entière aient légèrement augmenté de 0,3% pour atteindre 342,3 millions de dollars. Les revenus nets d'investissement ont connu une croissance significative, augmentant de 36,2% pour atteindre 10,9 millions de dollars grâce à des taux de réinvestissement des revenus fixes plus élevés.
L'entreprise a rencontré des défis dans son segment Auto Non Standard en raison d'un développement défavorable des réserves, tandis que les segments Auto Passager Privé et Maison et Ferme ont montré une performance améliorée. Les bénéfices par action étaient de 0,47 dollar pour le 4e trimestre 2024 (contre 0,92 dollar au 4e trimestre 2023) et de 0,31 dollar pour l'année entière 2024 (contre 0,93 dollar en 2023).
Sous la direction du nouveau PDG Seth Daggett, l'entreprise prévoit de se concentrer sur l'amélioration de son profil de risque et de développer un plan stratégique à long terme centré sur sa base dans le Dakota du Nord, y compris des investissements accrus dans la technologie et une gestion de distribution améliorée.
NI Holdings (NASDAQ: NODK) hat die Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht, mit einem Nettogewinn von 9,9 Millionen Dollar im 4. Quartal und einer durchschnittlichen Eigenkapitalrendite von 16,2%. Die kombinierte Quote im 4. Quartal betrug 80,0%, während die Quote für das gesamte Jahr von 97,0% im Jahr 2023 auf 100,7% anstieg.
Die direkt geschriebenen Prämien im 4. Quartal sanken um 7,9% auf 73,1 Millionen Dollar, während die Prämien für das gesamte Jahr leicht um 0,3% auf 342,3 Millionen Dollar stiegen. Das Nettoanlageergebnis verzeichnete ein signifikantes Wachstum und stieg um 36,2% auf 10,9 Millionen Dollar aufgrund höherer Reinvestitionsraten im festverzinslichen Bereich.
Das Unternehmen hatte Herausforderungen im Segment der Nicht-Standard-Autos aufgrund ungünstiger Rückstellungsentwicklungen, während die Segmente Privat-Pkw sowie Wohn- und Landwirtschaft eine verbesserte Leistung zeigten. Der Gewinn pro Aktie betrug 0,47 Dollar für das 4. Quartal 2024 (im Vergleich zu 0,92 Dollar im 4. Quartal 2023) und 0,31 Dollar für das gesamte Jahr 2024 (im Vergleich zu 0,93 Dollar im Jahr 2023).
Unter der neuen Leitung von CEO Seth Daggett plant das Unternehmen, sich auf die Verbesserung seines Risikoprofils zu konzentrieren und einen langfristigen strategischen Plan zu entwickeln, der auf seiner Basis in North Dakota basiert, einschließlich erhöhter Investitionen in Technologie und verbesserter Vertriebsmanagement.
- Strong Q4 net income of $9.9 million with 16.2% ROE
- Excellent Q4 combined ratio of 80.0%
- Net investment income up 36.2% to $10.9 million
- Improved performance in Private Passenger Auto and Home and Farm segments
- Full-year combined ratio deteriorated to 100.7% from 97.0%
- Q4 direct written premiums down 7.9% to $73.1 million
- Unfavorable reserve development in Non-Standard Auto segment
- EPS declined to $0.31 from $0.93 year-over-year
Insights
NI Holdings' Q4 2024 results present a mixed financial picture with concerning year-over-year trends despite a strong quarter. The Q4 net income of
The company's full-year EPS has fallen dramatically to
The deterioration in the combined ratio from
On the positive side, net investment income increased
The company's strategic pivot is noteworthy - selling Westminster American Insurance, addressing issues in the problematic Non-Standard Auto segment, and refocusing on its North Dakota foundation. However, these moves suggest management is in defensive mode, working to stabilize operations rather than driving growth.
The segment performance divergence in NI Holdings' results reveals fundamental operational challenges. While the Private Passenger Auto and Home and Farm segments showed excellent underwriting results in Q4, the persistent issues in Non-Standard Auto continue to drag down overall performance, necessitating reserve strengthening.
The Q4 combined ratio of
Premium growth has essentially stalled at just
Management's focus on reducing earnings volatility through improved risk profile is a standard but necessary insurance industry playbook move when facing underwriting challenges. The strategic shift to refocus on North Dakota operations appears to be a return-to-basics approach, concentrating on markets where the company has historical strength.
The increased investment in technology and distribution management suggests management recognizes the need to improve operational efficiency and agency relationships to restore growth. However, the expense management initiative indicates cost pressures that could further challenge near-term profitability as these investments roll out.
FARGO, N.D., March 07, 2025 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (“NI Holdings,” or the “Company,” NASDAQ: NODK) announced today results for the year ended December 31, 2024.
Summary of Year-End 2024 Results
(All comparisons vs. continuing operations for the year-end 2023, unless noted otherwise)
- Strong fourth quarter net income of
$9.9 million , with16.2% return on average equity. - Fourth quarter combined ratio of
80.0% , up 1.3 pts compared to the prior year quarter, reflecting excellent underwriting results in our Private Passenger Auto and Home and Farm segments, partially offset by unfavorable prior year reserve development and further current year reserve strengthening in Non-Standard Auto. - Combined ratio of
100.7% for full year 2024 versus97.0% for the prior year, driven by unfavorable prior year reserve development in Non-Standard Auto and higher loss severity and higher non-catastrophe weather-related losses in North Dakota and Nebraska Home and Farm, partially offset by lower levels of weather-related losses and a sustained moderation of severity in Private Passenger Auto. - Net investment income increased
36.2% to$10.9 million , driven by higher fixed income reinvestment rates. - Direct written premiums of
$73.1 million during the quarter, down7.9% compared to the prior year quarter and full year direct written premiums of$342.3 million , up0.3% compared to prior year. Decrease for the quarter was driven by Non-Standard Auto, while full-year growth was driven by increased premiums in the Private Passenger Auto and Home and Farm segments, partially offset by Crop and Non-Standard Auto. - Net earned premiums of
$71.8 million , down3.0% compared to prior year quarter and full year net earned premiums of$310.1 million , up6.2% compared to prior year. - Earnings per share of
$0.47 for the current year quarter compared to$0.92 for the prior year quarter, and earnings per share of$0.31 for the current year compared to$0.93 for the prior year.
| Three Months Ended December 31, | Year Ended December 31, | ||||||
| Dollars in thousands, except per share data (unaudited) | 2024 | 2023 | Change | 2024 | 2023 | Change | |
| Direct written premiums | ( | ||||||
| Net earned premiums | ( | ||||||
| Loss and LAE ratio | 2.3 pts | 3.1 pts | |||||
| Expense ratio | (1.0) pts | 0.6 pts | |||||
| Combined ratio | 1.3 pts | 3.7 pts | |||||
| Net income (loss) attributable to NI Holdings | |||||||
| Continuing operations | $9,848 | $19,202 | (48.7%) | $6,600 | $19,581 | (66.3%) | |
| Discontinued operations | – | $(12,577) | NM | $(1,512) | $(25,057) | (94.0%) | |
| Loss on sale of discontinued operations | – | – | NM | $(11,148) | – | NM | |
| Return on average equity | (16.1) pts | (5.1) pts | |||||
| Basic earnings (loss) per share | |||||||
| Continuing operations | $0.47 | $0.92 | (48.9%) | $0.31 | $0.93 | (66.7%) | |
| NM = not meaningful | |||||||
Management Commentary
“I would like to reiterate the honor and privilege it is to have the opportunity to lead this organization,” said Seth Daggett, newly named President and Chief Executive Officer. “I am excited to continue to build off its excellent foundation and partner with our talented board, employees, and agents to further advance the Company toward a successful future.
Turning to results, we were pleased with our performance during the fourth quarter, particularly our Private Passenger Auto and Home and Farm segments, which benefited from improved weather and the aggressive rate and underwriting actions we’ve taken over the past two years. Our high-quality investment portfolio once again produced strong returns, resulting in a meaningful
These actions, as well as the sale of Westminster American Insurance in the second quarter, support our immediate priority of improving our risk profile to target reduced earnings volatility, while ultimately supporting our ability to generate consistent profitable growth going forward.
Looking ahead, we will refocus our efforts on development of a comprehensive long-term strategic plan centered around our strong and longstanding foundation in North Dakota, including increased investments in people and technology, enhanced distribution management efforts, and a renewed focus on expense management initiatives. We’re confident this plan will support our primary objective of creating lasting value for our shareholders through sustained growth and profitability over time.”
Securities and Exchange Commission (SEC) Filings
The Company’s Annual Report on Form 10-K and latest financial supplement can be found on the Company’s website at www.niholdingsinc.com. The Company’s filings with the SEC can also be found at www.sec.gov.
About the Company
NI Holdings, Inc. is an insurance holding company. The Company is a North Dakota business corporation that is the stock holding company of Nodak Insurance Company and became such in connection with the conversion of Nodak Mutual Insurance Company from a mutual to stock form of organization and the creation of a mutual holding company. The conversion was consummated on March 13, 2017. Immediately following the conversion, all of the outstanding shares of common stock of Nodak Insurance Company were issued to Nodak Mutual Group, Inc., which then contributed the shares to NI Holdings in exchange for
Safe Harbor Statement
Some of the statements included in this news release, particularly those anticipating future financial performance, including investment performance and yields, business prospects, growth and operating strategies, the impact of underwriting changes and other strategic actions on operating results, our plans to increase investments in people and technology, enhance distribution management efforts, and focus on expense management initiatives, our ability to generate consistent profitable growth and create lasting value for our shareholders, and similar matters, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Actual results could vary materially. Factors that could cause actual results to vary materially include: our ability to maintain profitable operations, the adequacy of the loss and loss adjustment expense reserves, business and economic conditions, the changes in the international trade policies and the potential impact of such changes, interest rates, competition from various insurance and other financial businesses, terrorism, the availability and cost of reinsurance, adverse and catastrophic weather events, including the impacts of climate change, legal and judicial developments, changes in regulatory requirements, our ability to integrate and manage successfully the insurance companies we may acquire from time to time, the impact of inflation on our operating results, and other risks we describe in the periodic reports we file with the SEC. You should not place undue reliance on any such forward-looking statements. We disclaim any obligation to update such statements or to announce publicly the results of any revisions that we may make to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
For a detailed discussion of the risk factors that could affect our actual results, please refer to the risk factors identified in our SEC reports, including, but not limited to our Annual Report on Form 10-K, as filed with the SEC.
Investor Relations Contact:
Matt Maki
Executive Vice President, Treasurer and Chief Financial Officer
701-212-5976
IR@nodakins.com
FAQ
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