NI Holdings, Inc. Reports Results for Second Quarter Ended June 30, 2025
NI Holdings (NASDAQ: NODK) reported challenging second quarter 2025 results, with direct written premiums declining to $109.5 million, down 7.6% from Q2 2024. The company faced significant headwinds, including a combined ratio of 125.1% (versus 113.7% in Q2 2024) and catastrophic losses of $20.0 million from severe storms in North Dakota.
Key financial metrics showed deterioration, with a net loss of ($12.1 million) and basic loss per share of ($0.57). The decline in premiums was primarily due to a strategic reduction in Non-Standard Auto (-56.4%), partially offset by growth in Home and Farm (8.1%). Despite challenges, net investment income showed strength, increasing 40.8% to $2.7 million, driven by higher reinvestment rates in the fixed income portfolio.
[ "Net investment income increased 40.8% to $2.7 million due to higher reinvestment rates", "Home and Farm segment grew 8.1% with higher rates and new business growth in North Dakota", "Geographic diversification showing positive results in South Dakota and Nebraska markets" ]NI Holdings (NASDAQ: NODK) ha riportato un secondo trimestre 2025 difficile, con i premi diretti contabilizzati in calo a $109.5 million, in diminuzione del 7.6% rispetto al Q2 2024. L’azienda ha affrontato forti venti contrari, tra cui un combined ratio del 125.1% (contro il 113.7% del Q2 2024) e perdite catastrofiche per $20.0 million causate da violente tempeste nel North Dakota.
Le principali grandezze finanziarie si sono deteriorate: perdita netta di ($12.1 million) e perdita base per azione di ($0.57). Il calo dei premi è riconducibile in larga parte a una riduzione strategica dell’Auto Non-Standard (-56.4%), parzialmente bilanciata dalla crescita del segmento Casa e Agricoltura (8.1%). Nonostante le difficoltà, il reddito netto da investimenti ha mostrato solidità, aumentando del 40.8% a $2.7 million grazie a tassi di reinvestimento più elevati nel portafoglio a reddito fisso.
- Il reddito netto da investimenti è aumentato del 40.8% a $2.7 million grazie a tassi di reinvestimento più alti.
- Il segmento Home and Farm è cresciuto dell’8.1% per effetto di tariffe più elevate e nuova produzione in North Dakota.
- La diversificazione geografica evidenzia risultati positivi nei mercati del South Dakota e del Nebraska.
NI Holdings (NASDAQ: NODK) presentó unos resultados difíciles en el segundo trimestre de 2025, con primas directas escritas que cayeron a $109.5 million, un descenso del 7.6% respecto al T2 2024. La compañía afrontó vientos en contra significativos, incluyendo un combined ratio del 125.1% ( frente al 113.7% en T2 2024) y pérdidas catastróficas de $20.0 million por fuertes tormentas en Dakota del Norte.
Las métricas clave mostraron un deterioro, con una pérdida neta de ($12.1 million) y una pérdida básica por acción de ($0.57). La caída de primas se debió principalmente a una reducción estratégica del segmento Auto No Estándar (-56.4%), parcialmente compensada por el crecimiento de Hogar y Agricultura (8.1%). A pesar de los retos, el ingreso neto por inversiones mostró fortaleza, aumentando un 40.8% hasta $2.7 million impulsado por mayores tasas de reinversión en la cartera de renta fija.
- El ingreso neto por inversiones aumentó 40.8% hasta $2.7 million debido a mayores tasas de reinversión.
- El segmento Home and Farm creció 8.1% gracias a tarifas más altas y a nuevo negocio en Dakota del Norte.
- La diversificación geográfica muestra resultados positivos en los mercados de South Dakota y Nebraska.
NI Holdings (NASDAQ: NODK)는 2025년 2분기에 어려운 실적을 보고했습니다. 직접 인수보험료는 $109.5 million으로 전년 동기 대비 7.6% 감소했습니다. 회사는 125.1%의 결합비율(combined ratio)(2024년 2분기 113.7% 대비)과 노스다코타에서 발생한 강력한 폭풍으로 인한 $20.0 million 규모의 대규모 손실 등 중대한 역풍에 직면했습니다.
핵심 재무지표도 악화되어 순손실 ($12.1 million)과 주당 기본 손실 ($0.57)을 기록했습니다. 보험료 감소는 주로 비표준 자동차(Non-Standard Auto) 사업의 전략적 축소(-56.4%)에 기인하며, 주택 및 농업(Home and Farm) 부문(8.1%)의 성장이 일부 상쇄했습니다. 어려움 속에서도 고정수익 포트폴리오의 재투자율 상승에 힘입어 순투자수익은 40.8% 증가한 $2.7 million으로 양호한 모습을 보였습니다.
- 재투자율 상승으로 순투자수익이 40.8% 증가하여 $2.7 million을 기록했습니다.
- Home and Farm 부문은 요율 인상 및 노스다코타 지역의 신규 사업으로 8.1% 성장했습니다.
- 지역 다변화는 사우스다코타(South Dakota)와 네브래스카(Nebraska) 시장에서 긍정적 결과를 보이고 있습니다.
NI Holdings (NASDAQ: NODK) a publié des résultats difficiles pour le deuxième trimestre 2025, avec des primes directes émises en baisse à $109.5 million, soit -7.6% par rapport au T2 2024. La société a fait face à des vents contraires importants, notamment un ratio combiné de 125.1% (contre 113.7% au T2 2024) et des pertes catastrophiques de $20.0 million dues à de violentes tempêtes dans le North Dakota.
Les indicateurs financiers clés se sont détériorés : perte nette de ($12.1 million) et perte de base par action de ($0.57). La baisse des primes s’explique principalement par une réduction stratégique de l’Auto Non-Standard (-56.4%), partiellement compensée par la croissance du segment Home and Farm (8.1%). Malgré ces difficultés, le revenu net d’investissement a montré de la solidité, augmentant de 40.8% à $2.7 million grâce à des taux de réinvestissement plus élevés dans le portefeuille à revenu fixe.
- Le revenu net d’investissement a augmenté de 40.8% à $2.7 million en raison de taux de réinvestissement plus élevés.
- Le segment Home and Farm a cru de 8.1% grâce à des tarifs plus élevés et à une nouvelle activité dans le North Dakota.
- La diversification géographique montre des résultats positifs sur les marchés du South Dakota et du Nebraska.
NI Holdings (NASDAQ: NODK) meldete schwierige Ergebnisse für das zweite Quartal 2025: Die direkten Bruttobeiträge sanken auf $109.5 million, ein Rückgang von 7.6% gegenüber Q2 2024. Das Unternehmen sah sich erheblichen Gegenwinden gegenüber, darunter eine Combined Ratio von 125.1% (vs. 113.7% im Q2 2024) und katastrophale Verluste in Höhe von $20.0 million durch schwere Stürme in North Dakota.
Wesentliche Kennzahlen verschlechterten sich: ein Nettoverlust von ($12.1 million) und ein einfacher Verlust je Aktie von ($0.57). Der Prämienrückgang war vor allem auf eine strategische Reduzierung des Non-Standard-Auto-Geschäfts (-56.4%) zurückzuführen, teilweise ausgeglichen durch Wachstum im Bereich Home and Farm (8.1%). Trotz der Herausforderungen zeigte das Nettoanlageergebnis Stärke und stieg um 40.8% auf $2.7 million, angetrieben durch höhere Reinvestitionsraten im Rentenportfolio.
- Das Nettoanlageergebnis stieg um 40.8% auf $2.7 million dank höherer Reinvestitionsraten.
- Der Home-and-Farm-Bereich wuchs um 8.1% durch höhere Tarife und Neugeschäft in North Dakota.
- Die geografische Diversifizierung liefert positive Ergebnisse in den Märkten South Dakota und Nebraska.
- None.
- Direct written premiums declined 7.6% to $109.5 million
- Combined ratio deteriorated to 125.1% from 113.7% year-over-year
- Catastrophic losses of $20.0 million from North Dakota storms exceeded reinsurance retention
- Net loss increased to ($12.1 million) from ($7.5 million) in continuing operations
- Unfavorable development of liability loss claims in Non-Standard Auto segment
Insights
NI Holdings reports concerning Q2 results with catastrophe losses, worsening combined ratio, and continued Non-Standard Auto challenges.
NI Holdings' Q2 2025 results reveal significant challenges with a combined ratio deteriorating to 125.1% from 113.7% year-over-year, indicating the company is paying out $1.25 in claims and expenses for every premium dollar collected. This concerning performance is driven by three primary factors:
First, a major catastrophe event in North Dakota exceeded the company's
Second, the company continues to experience unfavorable development in Non-Standard Auto liability claims, meaning they're discovering previous periods' claims are costing more than initially reserved. This pattern suggests potential ongoing underwriting or pricing deficiencies in this segment.
Third, direct written premiums decreased
The basic loss per share widened to
Management's comments acknowledge the challenges while highlighting geographic diversification benefits in South Dakota and Nebraska. However, the return on average equity at
FARGO, N.D., Aug. 08, 2025 (GLOBE NEWSWIRE) -- NI Holdings, Inc. (NASDAQ: NODK) announced today results for the quarter ended June 30, 2025.
Summary of Second Quarter 2025 Results – Continuing Operations
(All comparisons vs. continuing operations for the second quarter of 2024, unless noted otherwise)
- Direct written premiums of
$109.5 million compared to$118.5 million . This reduction was driven by Non-Standard Auto (-56.4% ) due to the continued impact of the strategic decision to significantly decrease our Non-Standard Auto premiums, partially offset by Home and Farm (8.1% ) driven by higher rate and insured values along with new business growth in North Dakota. - Combined ratio of
125.1% versus113.7% , primarily driven by higher unfavorable development of liability loss claims in Non-Standard Auto, decreased net earned premiums in Non-Standard Auto and a significant catastrophe event in North Dakota that exceeded the Company’s$20M reinsurance retention. - Total pre-tax catastrophe losses, net of reinsurance, of
$20.0 million for the quarter and year-to-date, which adversely impacted the second quarter and year-to-date loss and loss adjustment expense ratios by 30.2 and 15.7 percentage points, respectively. - Net investment income increased
40.8% to$2.7 million , primarily driven by higher reinvestment rates in our fixed income portfolio and higher net realized gains. - Basic loss per share of (
$0.57) compared to ($0.36) .
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| Dollars in thousands, except per share data (unaudited) | 2025 | 2024 | Change | 2025 | 2024 | Change | |
| Direct written premiums | ( | ( | |||||
| Net earned premiums | ( | ( | |||||
| Loss and LAE ratio | 9.8 pts | 4.2 pts | |||||
| Expense ratio | 1.6 pts | 1.3 pts | |||||
| Combined ratio | 11.4 pts | 5.5 pts | |||||
| Net loss attributable to NI Holdings | ( | ( | |||||
| Continuing operations | $(12,051) | $(7,478) | 61.2% | $(5,591) | $(543) | NM | |
| Discontinued operations | - | $(996) | NM | - | $(1,512) | NM | |
| Loss on sale of discontinued operations | - | $(11,148) | NM | - | $(11,148) | NM | |
| Return on average equity | ( | ( | (6.6) pts | ( | ( | (4.1) pts | |
| Basic loss per share | ( | ( | |||||
| Continuing operations | $(0.57) | $(0.36) | 58.3% | $(0.27) | $(0.03) | NM | |
| NM = not meaningful | |||||||
Management Commentary
“I want to begin by acknowledging the impact the recent historic storms have had on our North Dakota communities,” said Seth Daggett, President and Chief Executive Officer. “We are committed to continuing to provide support to help our insureds navigate these difficult times, and together, we will rebuild stronger and move forward. Turning to results, the second quarter was negatively impacted by the catastrophe event in North Dakota, primarily in Home and Farm, offset by favorable weather conditions in South Dakota and Nebraska. The favorable results in South Dakota and Nebraska demonstrate the impact of underwriting changes and geographic diversification we have undertaken in recent years, and we continue to be pleased with the results of those actions.
Our high-quality investment portfolio continued to provide positive returns, benefiting from the higher reinvestment rates in our fixed income portfolio. Although we faced a challenging quarter, including further unfavorable prior year reserve development in Non-Standard Auto, we remain confident in the strength of our core business and our ability to provide appropriate returns 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
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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