Ni Hldgs Inc Stock Price, News & Analysis

AM Best has downgraded the Long-Term Issuer Credit Ratings (ICR) of Nodak Insurance Group to "a" from "a+" while maintaining its Financial Strength Rating (FSR) of A (Excellent). The company's parent, NI Holdings (NODK), also saw its ICR downgraded to "bbb" from "bbb+". The downgrades reflect volatility in operating results over the past five years due to weather-related losses, inflationary pressures, and challenges in non-standard auto lines. The group reported its highest combined ratio of 118.5% in 2022, with four consecutive years above break-even. Management is addressing these issues through rate increases, underwriting revisions, and strategic non-renewals, focusing on core business in the Midwest region.

NI Holdings (NASDAQ: NODK) reported its Q1 2025 financial results with mixed performance. The company achieved a combined ratio of 94.4% driven by strong performance in Home and Farm and Private Passenger Auto segments. Direct written premiums decreased to $67.7 million from $83.0 million, primarily due to strategic exits from Nevada and reduced presence in Chicago's Non-Standard Auto market. However, Home and Farm segment saw 7.1% growth. Net investment income increased 3.0% to $2.8 million. The company reported basic earnings per share of $0.31, compared to $0.33 in Q1 2024. The loss and LAE ratio improved slightly to 57.1%, while the expense ratio increased to 37.3%. Management highlighted the company's focus on underwriting profitability and strategic growth in core North Dakota and South Dakota markets.

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) announced the appointment of Seth C. Daggett as President and CEO, effective December 1, 2024. Daggett, who previously served as the company's CFO and Treasurer, brings over two decades of industry experience. He succeeds Cindy L. Launer, who served as Interim CEO and will return to her role as an independent non-executive director. Following Daggett's promotion, Matt Maki, Vice President of Financial Planning and Analysis, will become Interim CFO while the company searches for a permanent replacement.

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, Inc. (NASDAQ: NODK) announced a significant leadership change on August 15, 2024. Michael J. Alexander has stepped down from his roles as President, CEO, and board member, effective August 13, 2024. The Board has appointed Cindy L. Launer as Interim CEO to ensure a smooth transition.

Launer, an independent non-executive director since November 2019, brings 18 years of insurance industry experience. She previously served as COO of AIG's Commercial Insurance Business before retiring in 2018. The Board has initiated the process of finding a permanent CEO, with no definitive timeline set.

Eric K. Aasmundstad, Chairman of the Board, expressed gratitude for Alexander's 19 years of service and confidence in Launer's ability to lead the company through this transition. Launer committed to ensuring a seamless transition for all stakeholders and continuing to achieve business priorities.

NI Holdings, Inc. (NASDAQ: NODK) reported results for Q2 2024 ended June 30. Key highlights include:

- Direct written premiums decreased 2.6% to $118.5 million
- Net earned premiums increased 8.0% to $85.2 million
- Combined ratio worsened to 113.7% from 107.1%
- Net investment income up 31.2% to $2.5 million
- Basic loss per share of ($0.36) compared to ($0.12) in Q2 2023

The company closed on the sale of Westminster American Insurance Company, resulting in a one-time loss of $7.8 million. Management cited volatile weather impacting the Home and Farm segment and is focusing on aggressive rate and underwriting actions to improve profitability across all business lines.

AM Best has downgraded Westminster American Insurance Company's (WAIC) Financial Strength Rating from A to A-, and its Long-Term Issuer Credit Rating from “a+” to “a-”. These ratings remain under review with negative implications. The downgrade is primarily due to WAIC's removal from the Nodak Insurance Group pool, following its sale back to original owners by NI Holdings, Inc. (NODK) effective June 30, 2024. WAIC's business profile was lowered to due to concentrated commercial property risks and variability in operating results over the past five years. Despite a strong balance sheet and appropriate ERM, further downgrades are possible if WAIC's future performance isn't consistent with current ratings.

NI Holdings (NASDAQ: NODK) announced the completion of the sale of Westminster American Insurance Company for $10.5 million in cash. The sale, subject to certain post-closing adjustments, follows a Purchase Agreement dated May 7, 2024. This move aligns with NI Holdings' strategic decisions to streamline its operations. NI Holdings, a North Dakota-based insurance holding company, includes subsidiaries such as Nodak Insurance, American West Insurance, Primero Insurance, and Battle Creek Insurance. The financial performance of NI Holdings is consolidated across these entities.