Ni Hldgs Inc Stock Price, News & Analysis

NI Holdings, Inc. (NASDAQ: NODK) has agreed to sell its commercial insurance subsidiary, Westminster American Insurance Company, for $10.5 million in cash. The decision was made to realign resources with the company's strategic direction due to changes in the commercial habitational insurance market. The sale is expected to close in 2024, pending regulatory approval.

AM Best has revised the outlook for the Long-Term Issuer Credit Ratings of Nodak Insurance Group and NI Holdings, Inc. from stable to negative, while affirming their Financial Strength Ratings (FSR) of A (Excellent). The revision reflects a deterioration in operating results due to higher catastrophe losses and inflation-driven severity over the past two years, leading to an increased combined ratio of 118.5% in 2022 and a nearly 20% decline in policyholders' surplus. Management's strategies to mitigate volatility include rate adjustments, aggressive re-underwriting, and stricter risk acceptance. Despite these efforts, the potential for further downgrades remains if performance does not improve.

NI Holdings, Inc. (NASDAQ: NODK) reported its year-end results for 2022, highlighting significant growth in direct written premiums, which surged by 13.9% to $389.7 million. The company’s non-standard auto segment led this growth, increasing by 26.8%. Net earned premiums also rose by 9.6%. However, the combined ratio deteriorated to 119.9% from 104.3%, primarily due to soaring loss costs attributed to inflation and heightened catastrophe events, resulting in total pre-tax catastrophe losses of $68.5 million. The net income attributable to NI Holdings dropped 85.5%, indicating a challenging year amidst adverse market conditions.

NI Holdings, Inc. (NASDAQ: NODK) reported its third quarter results for 2022, revealing a 17.8% increase in direct written premiums, totaling $81.1 million, and a 9.0% rise in net earned premiums to $89.5 million. However, the combined ratio worsened to 114.4% from 110.8%, impacted by $19.6 million in catastrophe losses and $2.9 million in net investment losses. The company faced a loss per share of $0.47, compared to $0.22 the previous year. Despite these challenges, NI Holdings repurchased 62,175 shares at an average price of $15.11.

NI Holdings, Inc. (NASDAQ: NODK) reported a significant net loss of $45.9 million for the second quarter of 2022, a stark increase from a loss of $2.6 million in the same period last year. Direct written premiums rose by 15.5% to $144.96 million, driven primarily by growth in the Crop, Commercial, and Non-Standard Auto segments. The underwriting loss reached $50.3 million, due largely to $49.1 million in pre-tax catastrophe losses, significantly higher than the previous year's $10 million. Total shareholders' equity fell by 21.5% to $272.6 million, attributed to rising interest rates and market conditions.