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

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NI Holdings (NASDAQ: NODK) reported Q3 2024 results with direct written premiums of $67.7 million, slightly down from $67.9 million in Q3 2023. Net earned premiums increased 9.0% to $83.3 million. The company's combined ratio deteriorated to 111.0% from 100.8%, impacted by increased non-catastrophe weather-related losses and CEO transition costs. Net investment income grew 32.5% to $2.8 million. The company reported a basic loss per share of ($0.13) compared to earnings of $0.03 in the same period last year. Home and Farm segment showed growth of 11.6%, while Non-Standard Auto declined by 35.8%.

NI Holdings (NASDAQ: NODK) ha riportato i risultati del terzo trimestre del 2024 con premi diretti scritti pari a 67,7 milioni di dollari, leggermente in calo rispetto ai 67,9 milioni di dollari del terzo trimestre del 2023. I premi netti guadagnati sono aumentati del 9,0% a 83,3 milioni di dollari. Il rapporto combinato dell'azienda è peggiorato, salendo al 111,0% rispetto al 100,8%, influenzato da un aumento delle perdite legate a eventi climatici non catastrofici e dai costi di transizione del CEO. Il reddito da investimenti è cresciuto del 32,5% a 2,8 milioni di dollari. L'azienda ha riportato una perdita di base per azione di ($0,13) rispetto a utili di $0,03 nello stesso periodo dell'anno scorso. Il segmento Home and Farm ha mostrato una crescita dell'11,6%, mentre il settore Non-Standard Auto è diminuito del 35,8%.

NI Holdings (NASDAQ: NODK) informó los resultados del tercer trimestre de 2024 con primas directas escritas de 67,7 millones de dólares, ligeramente por debajo de los 67,9 millones de dólares en el tercer trimestre de 2023. Las primas netas ganadas aumentaron un 9,0% hasta 83,3 millones de dólares. La relación combinada de la empresa se deterioró hasta el 111,0% desde el 100,8%, afectada por el aumento de las pérdidas relacionadas con el clima no catastrófico y los costos de transición del CEO. Los ingresos netos por inversiones crecieron un 32,5% hasta 2,8 millones de dólares. La empresa reportó una pérdida básica por acción de ($0,13) en comparación con ganancias de $0,03 en el mismo período del año pasado. El segmento de Hogar y Granja mostró un crecimiento del 11,6%, mientras que el automóvil no estándar disminuyó un 35,8%.

NI Holdings (NASDAQ: NODK)는 2024년 3분기 결과를 보고하며 직접 서면 보험료가 6,770만 달러로 2023년 3분기 6,790만 달러에서 약간 감소했다고 발표했습니다. 순수익 보험료는 9.0% 증가하여 8,330만 달러에 도달했습니다. 회사의 결합 비율은 100.8%에서 111.0%로 악화되었으며, 이는 비재해성 기후 관련 손실 증가와 CEO 전환 비용의 영향을 받았습니다. 순 투자 수익은 32.5% 증가하여 280만 달러에 이르렀습니다. 회사는 작년 같은 기간에 비해 주당 기본 손실이 ($0.13)로 나타나고, 수익이 $0.03에 달했음을 보고했습니다. 주택 및 농장 부문은 11.6% 성장했으며, 비표준 자동차 부문은 35.8% 감소했습니다.

NI Holdings (NASDAQ: NODK) a rapporté les résultats du troisième trimestre 2024 avec des primes directes souscrites de 67,7 millions de dollars, légèrement en baisse par rapport à 67,9 millions de dollars au troisième trimestre 2023. Les primes nettes gagnées ont augmenté de 9,0 % pour atteindre 83,3 millions de dollars. Le ratio combiné de l'entreprise s'est détérioré à 111,0 % par rapport à 100,8 %, en raison de l'augmentation des pertes liées aux événements climatiques non catastrophiques et des coûts de transition du PDG. Les revenus nets d'investissement ont augmenté de 32,5 % pour atteindre 2,8 millions de dollars. L'entreprise a enregistré une perte de base par action de ($0,13) par rapport à un bénéfice de $0,03 au cours de la même période de l'année dernière. Le segment Maison et Ferme a affiché une croissance de 11,6 %, tandis que le secteur Automobile Non Standard a diminué de 35,8 %.

NI Holdings (NASDAQ: NODK) berichtete über die Ergebnisse des dritten Quartals 2024 mit direkt geschriebenen Prämien von 67,7 Millionen USD, leicht zurückgegangen von 67,9 Millionen USD im dritten Quartal 2023. Die netto verdienten Prämien stiegen um 9,0% auf 83,3 Millionen USD. Die kombinierte Quote des Unternehmens verschlechterte sich auf 111,0%, verglichen mit 100,8%, beeinflusst von steigenden wetterbedingten Verlusten und Kosten für den CEO-Übergang. Das Nettoanlageergebnis wuchs um 32,5% auf 2,8 Millionen USD. Das Unternehmen berichtete von einem Basisverlust pro Aktie von ($0,13) im Vergleich zu einem Gewinn von $0,03 im gleichen Zeitraum des Vorjahres. Der Bereich Zuhause und Landwirtschaft zeigte ein Wachstum von 11,6%, während der Bereich Nichtstandard-Auto um 35,8% zurückging.

Positive
  • Net earned premiums increased 9.0% to $83.3 million
  • Net investment income grew 32.5% to $2.8 million
  • Home and Farm segment grew 11.6% driven by higher rates and new business
Negative
  • Combined ratio worsened to 111.0% from 100.8%
  • Reported net loss of $2.7 million vs. profit in Q3 2023
  • Non-Standard Auto segment declined 35.8%
  • Unfavorable prior year development in Non-Standard Auto segment
  • Higher weather-related losses in North Dakota

Insights

The Q3 results reveal significant operational challenges. The combined ratio deteriorated to 111.0% from 100.8%, indicating underwriting losses. Direct written premiums remained nearly flat at $67.7 million, with concerning declines in Non-Standard Auto (-35.8%). The company posted a net loss of $2.7 million or $0.13 per share.

Key concerns include unfavorable prior year development in Non-Standard Auto, elevated non-catastrophe weather losses in Home and Farm and one-time CEO transition costs. The bright spot is net investment income, up 32.5% to $2.8 million due to higher fixed income yields. The sale of Westminster American signals a strategic refocus, but near-term profitability remains challenging given the 107.0% combined ratio for the first nine months.

The operational metrics show concerning trends in NODK's core business. The 8.6 point increase in Loss and LAE ratio to 78.2% reflects deteriorating underwriting quality. While Home and Farm segment showed growth of 11.6%, this was driven by rate increases rather than organic expansion. The sharp decline in Non-Standard Auto suggests potential market share losses and underwriting challenges.

The expense ratio increase to 32.8% indicates operational inefficiencies. With a market cap of $328 million, the negative ROE of -4.5% and worsening combined ratio trend require significant corrective actions to restore profitability.

FARGO, N.D., Nov. 07, 2024 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended September 30, 2024.

Summary of Third Quarter 2024 Results – Continuing Operations
(All comparisons vs. continuing operations for the third quarter of 2023, unless noted otherwise)

  • Direct written premiums of $67.7 million compared to $67.9 million. This slight reduction was driven by Non-Standard Auto (-35.8%) due to lower new business and retention, partially offset by Home and Farm (11.6%) driven by higher rate and insured values along with new business growth in North Dakota.
  • Net earned premiums of $83.3 million, up 9.0%.
  • Combined ratio of 111.0% versus 100.8%, driven by increased non-catastrophe weather-related losses in Home and Farm, partially offset by improved performance in Private Passenger Auto. The current period was also impacted by a one-time charge related to the CEO transition. Both periods were impacted by unfavorable prior year development in Non-Standard Auto.
  • Net investment income increased 32.5% to $2.8 million, driven by higher fixed income reinvestment rates.
  • Basic loss per share of ($0.13) compared to basic earnings per share of $0.03.
 Three Months Ended September 30, Nine Months Ended September 30,
Dollars in thousands, except per share data
(unaudited)
20242023Change 20242023Change
Direct written premiums$67,704$67,917(0.3%) $269,217$261,8652.8%
Net earned premiums$83,270$76,4189.0% $238,323$218,1249.3%
Loss and LAE ratio78.2%69.6%8.6 pts 73.3%70.8%2.5 pts
Expense ratio32.8%31.2%1.6 pts 33.7%32.5%1.2 pts
Combined ratio111.0%100.8%10.2 pts 107.0%103.3%3.7 pts
Net income (loss) attributable to NI Holdings$(2,705)$231NM $(15,908)$(12,101)31.5%
Continuing operations$(2,705)$738NM $(3,248)$379NM
Discontinued operations-$(507)NM $(1,512)$(12,480)NM
Loss on sale of discontinued operations--NM $(11,148)-NM
Return on average equity(4.5%)1.3%(5.8) pts (1.9%)0.2%(2.1) pts
Basic earnings (loss) per share$(0.13)$0.01NM $(0.76)$(0.57)33.3%
Continuing operations$(0.13)$0.03NM $(0.15)$0.02NM
NM = not meaningful
 

Management Commentary

“The third quarter was impacted by unfavorable prior year development in our Non-Standard Auto segment, elevated non-recurring costs related to our CEO transition, and higher weather-related losses in North Dakota,” said Cindy Launer, Interim Chief Executive Officer. “Despite these challenges, we remain confident in our underlying business and focused on executing our strategic underwriting initiatives. The second quarter sale of Westminster American has enabled us to refocus our efforts on our core business, which we believe will help us return to profitability over time.”

Securities and Exchange Commission (SEC) Filings
The Company’s Quarterly Report on Form 10-Q 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 55% of the outstanding shares of common stock of NI Holdings. Nodak Insurance Company then became a wholly-owned stock subsidiary of NI Holdings. NI Holdings’ financial statements are the consolidated financial results of NI Holdings; Nodak Insurance, including Nodak’s wholly-owned subsidiaries American West Insurance Company, Primero Insurance Company, and Battle Creek Insurance Company; Direct Auto Insurance Company; and Westminster Insurance Company until the date of sale.

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 on operating results, our ability to return to profitability, 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, 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 Securities and Exchange Commission. 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:
Seth Daggett
Executive Vice President, Treasurer and Chief Financial Officer
701-298-4348
IR@nodakins.com


FAQ

What was NI Holdings (NODK) earnings per share in Q3 2024?

NI Holdings reported a basic loss per share of ($0.13) in Q3 2024, compared to earnings per share of $0.03 in Q3 2023.

What was NODK's combined ratio in Q3 2024?

The combined ratio for Q3 2024 was 111.0%, an increase from 100.8% in Q3 2023.

How much were NI Holdings (NODK) direct written premiums in Q3 2024?

Direct written premiums were $67.7 million in Q3 2024, slightly down from $67.9 million in Q3 2023.

What was NODK's net investment income growth in Q3 2024?

Net investment income increased 32.5% to $2.8 million, driven by higher fixed income reinvestment rates.

NI Holdings, Inc.

NASDAQ:NODK

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344.83M
6.71M
67.43%
24.24%
0.17%
Insurance - Property & Casualty
Fire, Marine & Casualty Insurance
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United States of America
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