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) ha riportato i risultati finanziari del primo trimestre 2025 con performance contrastanti. L'azienda ha raggiunto un combined ratio del 94,4%, trainato da una solida performance nei segmenti Home and Farm e Private Passenger Auto. I premi diretti scritti sono diminuiti a 67,7 milioni di dollari rispetto a 83,0 milioni, principalmente a causa di uscite strategiche dal Nevada e di una presenza ridotta nel mercato Auto Non-Standard di Chicago. Tuttavia, il segmento Home and Farm ha registrato una crescita del 7,1%. Il reddito netto da investimenti è aumentato del 3,0%, raggiungendo 2,8 milioni di dollari. L'utile base per azione è stato di 0,31 dollari, rispetto a 0,33 nel primo trimestre 2024. Il rapporto perdite e LAE è migliorato leggermente al 57,1%, mentre il rapporto spese è aumentato al 37,3%. La direzione ha sottolineato l'attenzione dell'azienda sulla redditività dell'assunzione del rischio e sulla crescita strategica nei mercati principali del North Dakota e South Dakota.
NI Holdings (NASDAQ: NODK) reportó sus resultados financieros del primer trimestre de 2025 con un desempeño mixto. La compañía alcanzó un índice combinado del 94,4%, impulsado por un sólido desempeño en los segmentos de Hogar y Granja y Auto de Pasajeros Privados. Las primas directas suscritas disminuyeron a 67,7 millones de dólares desde 83,0 millones, principalmente debido a salidas estratégicas de Nevada y una presencia reducida en el mercado de autos no estándar de Chicago. Sin embargo, el segmento de Hogar y Granja creció un 7,1%. Los ingresos netos por inversiones aumentaron un 3,0%, llegando a 2,8 millones de dólares. La utilidad básica por acción fue de 0,31 dólares, en comparación con 0,33 en el primer trimestre de 2024. La proporción de pérdidas y LAE mejoró ligeramente al 57,1%, mientras que la proporción de gastos aumentó al 37,3%. La dirección destacó el enfoque de la compañía en la rentabilidad de la suscripción y el crecimiento estratégico en los mercados clave de Dakota del Norte y Dakota del Sur.
NI Holdings (NASDAQ: NODK)는 2025년 1분기 재무 실적을 혼합된 성과로 보고했습니다. 회사는 홈 및 농장(Home and Farm)과 개인 승용차(Private Passenger Auto) 부문의 강력한 실적으로 결합 비율 94.4%를 달성했습니다. 직접 인수한 보험료는 전략적 네바다 시장 철수와 시카고 비표준 자동차 시장 축소로 인해 6770만 달러로 감소했습니다. 그러나 홈 및 농장 부문은 7.1% 성장했습니다. 순투자수익은 3.0% 증가하여 280만 달러를 기록했습니다. 기본 주당순이익은 0.31달러로, 2024년 1분기 0.33달러에 비해 소폭 감소했습니다. 손실 및 LAE 비율은 57.1%로 다소 개선되었으며, 비용 비율은 37.3%로 증가했습니다. 경영진은 회사가 핵심 시장인 노스다코타와 사우스다코타에서의 인수 수익성 및 전략적 성장을 중점적으로 추진하고 있음을 강조했습니다.
NI Holdings (NASDAQ : NODK) a publié ses résultats financiers du premier trimestre 2025 avec des performances mitigées. La société a atteint un ratio combiné de 94,4%, soutenu par de solides performances dans les segments Habitation et Ferme ainsi que Auto Particulier. Les primes directes émises ont diminué à 67,7 millions de dollars contre 83,0 millions, principalement en raison de sorties stratégiques du Nevada et d'une présence réduite sur le marché de l'auto non standard de Chicago. Cependant, le segment Habitation et Ferme a connu une croissance de 7,1%. Le revenu net des investissements a augmenté de 3,0% pour atteindre 2,8 millions de dollars. Le bénéfice de base par action s'est établi à 0,31 dollar, contre 0,33 au premier trimestre 2024. Le ratio pertes et LAE s'est légèrement amélioré à 57,1%, tandis que le ratio des charges a augmenté à 37,3%. La direction a souligné l'accent mis par l'entreprise sur la rentabilité de la souscription et la croissance stratégique sur les marchés clés du Dakota du Nord et du Dakota du Sud.
NI Holdings (NASDAQ: NODK) meldete gemischte Ergebnisse für das erste Quartal 2025. Das Unternehmen erzielte eine Combined Ratio von 94,4%, getragen von starken Leistungen in den Segmenten Home and Farm sowie Private Passenger Auto. Die direkt gezeichneten Prämien sanken auf 67,7 Millionen US-Dollar von 83,0 Millionen, hauptsächlich aufgrund strategischer Rückzüge aus Nevada und einer reduzierten Präsenz im Non-Standard-Auto-Markt in Chicago. Das Segment Home and Farm verzeichnete jedoch ein Wachstum von 7,1%. Die Nettoanlageerträge stiegen um 3,0% auf 2,8 Millionen US-Dollar. Der Basisgewinn je Aktie lag bei 0,31 US-Dollar im Vergleich zu 0,33 im ersten Quartal 2024. Die Verlust- und LAE-Quote verbesserte sich leicht auf 57,1%, während die Kostenquote auf 37,3% anstieg. Das Management hob den Fokus des Unternehmens auf Underwriting-Profitabilität und strategisches Wachstum in den Kernmärkten North Dakota und South Dakota hervor.
Positive
Combined ratio remained strong at 94.4%, indicating profitable underwriting
Home and Farm segment grew 7.1% with increased new business in North Dakota
Net investment income increased 3.0% to $2.8 million
Strategic exit from underperforming markets to improve profitability
Strong retention and new business growth in core North Dakota market
Negative
Direct written premiums declined 18.4% to $67.7 million
Basic earnings per share decreased from $0.33 to $0.31
Expense ratio increased by 0.8 points to 37.3%
Return on average equity declined from 12.1% to 10.4%
Insights
Solid Q1 for NI Holdings with a 94.4% combined ratio despite 18.4% premium decline from strategic Non-Standard Auto exits.
NI Holdings delivered an underwriting profit in Q1 2025 with a 94.4% combined ratio, only slightly deteriorating from 93.9% in Q1 2024. This performance shows operational resilience despite strategic actions that significantly reduced premiums. The 18.4% drop in direct written premiums to $67.7 million was primarily driven by deliberate exits from unprofitable Non-Standard Auto business - specifically leaving Nevada entirely and reducing Chicago market exposure.
The company's core Home and Farm segment grew by 7.1%, showing strength in their traditional North Dakota market through higher new business volume and successful rate increases. This balanced approach demonstrates management's focus on profitable growth rather than pure volume.
The slight increase in the combined ratio came from a 0.8 point higher expense ratio (at 37.3%), while the loss ratio actually improved slightly to 57.1%. This pattern suggests the company maintained solid underwriting discipline while experiencing some fixed expense deleveraging from the premium reduction.
Net income from continuing operations showed a modest 0.6% improvement to $6.46 million, though EPS from continuing operations declined 6.1% to $0.31. This discrepancy likely stems from share count differences. The company's 10.4% return on equity remains solid for the insurance sector, though down from 12.1% a year ago.
The 3.0% increase in investment income to $2.8 million from higher average invested assets provides additional earnings stability as the company navigates its strategic realignment. Management's comments about favorable weather conditions and lower large loss frequency in Home and Farm explain the solid loss ratio performance.
NI Holdings' strategic focus on its most profitable core markets demonstrates a prudent long-term approach, sacrificing near-term premium growth for sustainable profitability - evident in continued underwriting gains despite the revenue decline.
FARGO, N.D., May 09, 2025 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended March 31, 2025.
Summary of First Quarter 2025 Results – Continuing Operations (All comparisons vs. continuing operations for the first quarter of 2024, unless noted otherwise)
Direct written premiums of $67.7 million compared to $83.0 million. This reduction was driven by Non-Standard Auto (-58.8%) due to strategic decisions to exit Nevada and significantly reduce written premium in the Chicago market to improve profitability, partially offset by Home and Farm (7.1%) driven by higher new business in North Dakota as well as rate and insured value increases.
Combined ratio of 94.4% driven by strong performance in Home and Farm and Private Passenger Auto.
Net investment income increased 3.0% to $2.8 million, driven by relatively consistent yields on a higher average invested asset base.
Basic earnings per share of $0.31 compared to basic earnings per share of $0.33.
Three Months Ended March 31,
Dollars in thousands, except per share data (unaudited)
2025
2024
Change
Direct written premiums
$67,728
$83,041
(18.4%)
Net earned premiums
$67,497
$69,884
(3.4%)
Loss and LAE ratio
57.1%
57.4%
(0.3 pts)
Expense ratio
37.3%
36.5%
0.8 pts
Combined ratio
94.4%
93.9%
0.5 pts
Net income attributable to NI Holdings
$6,460
$6,935
(6.8%)
Continuing operations
$6,460
$6,419
0.6%
Discontinued operations
-
($516)
NM
Return on average equity
10.4%
12.1%
(1.7 pts)
Basic earnings per share
$0.31
$0.31
-
Continuing operations
$0.31
$0.33
(6.1%)
NM = not meaningful
Management Commentary
“We are pleased to start off 2025 with another quarter of underwriting profitability, continuing the positive momentum which began to emerge in the fourth quarter of 2024,” said Seth Daggett, President and Chief Executive Officer. “We achieved solid growth across our core personal line segments, primarily in North Dakota due to increased new business and continued strong retention, while also benefiting from favorable weather conditions and lower large loss frequency in our Home and Farm segment. We implemented numerous expanded underwriting and distribution actions throughout North Dakota and South Dakota, tied directly to our strategy of further targeted organic growth in these markets.
While overall top-line direct written premiums decreased year-over-year, the reduction was driven by accelerated execution of aggressive strategic actions focused on returning our Non-Standard Auto segment to profitability.
Overall, our results point toward the strength of our underlying core business, including numerous competitive advantages we have in these markets. We’re confident that our renewed focus on this business 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 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 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
What were NODK's Q1 2025 earnings per share?
NI Holdings reported basic earnings per share of $0.31 in Q1 2025, compared to $0.33 in Q1 2024, representing a 6.1% decrease.
Why did NODK's direct written premiums decrease in Q1 2025?
Direct written premiums decreased 18.4% primarily due to strategic decisions to exit Nevada and reduce written premium in the Chicago market's Non-Standard Auto segment, partially offset by growth in Home and Farm business.
What was NODK's combined ratio in Q1 2025?
NODK reported a combined ratio of 94.4% in Q1 2025, slightly higher than the 93.9% in Q1 2024, driven by strong performance in Home and Farm and Private Passenger Auto segments.
How much did NODK's net investment income grow in Q1 2025?
Net investment income increased 3.0% to $2.8 million, driven by relatively consistent yields on a higher average invested asset base.
What strategic changes is NODK implementing in 2025?
NODK is implementing expanded underwriting and distribution actions in North Dakota and South Dakota, focusing on targeted organic growth while exiting underperforming markets like Nevada and reducing presence in Chicago.
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